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Trump’s top economist provided a dishonest look at who benefits from corporate tax cuts

“As Frank Lysy noted, the corporate tax cuts of the late 1980s did not result in increased real wages” reports washingtonpost.com. The authors include no corporate tax detail, no recognition of the impact of the tax proposal on asset prices, and no treatment of the budget consequences of tax cuts.Unfortunately it provides little support for claims that corporate rate cuts will raise revenue, help the middle class or spur rapid wage growth.One central aspect of this paper was the recognition that the corporate tax rate is, contrary to Mulligan and…

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The Finger-Pointing at the Finance Firm TIAA

“The former TIAA employees spoke on condition of anonymity for fear of retribution” writes Gretchen Morgenson for nytimes.com. The plan offered only high-cost TIAA investment products, the lawsuit said.Deckbar, now head of institutional investment and endowment products and services at TIAA, declined to comment through the TIAA spokesman.Eager to stanch the outflows, TIAA set up a registered investment advisory firm in 2004 that began offering private asset management services.The company’s website ends in a .org rather than a .com and TIAA repeatedly refers to its “nonprofit heritage.” Most of TIAA…

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Airbus seeks to cut repayments to government from controversial ‘launch investment’ for new jets 

“Thousands of Bombardier staff in Belfast work on parts for the C Series and their jobs were brought into question by the tariffs” writes Ben Marlow for telegraph.co.uk. Mr Williams, the most senior Briton in the company, has previously admitted the A380 project “will never be profitable”, though Airbus is understood to be breaking even on the airliner when development costs are excluded.Business Secretary Greg Clark met with Bombardier and Airbus executives in Montreal on Friday to nail down details about the deal, in a move aimed at safeguarding jobs…

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Here’s the kind of spending that leads to bigger paychecks and a roaring economy

“Only one thing is going to help workers earn bigger paychecks, help them do their jobs better and get the economy roaring like a lion again” writes Jeffry Bartash for marketwatch.com. The good news is, business investment has sped up this year to the fastest pace since 2011-2012.Third-quarter GDP is also likely to show fairly strong business investment, with the exception of housing.Business investment “came roaring back this year in anticipation of pro-growth policies,” noted Sal Guatieri, senior economist at BMO Capital Markets.A measure used by economists to track investment,…

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China says will guide private capital into higher growth areas

“BEIJING (Reuters) – China will introduce measures aimed at guiding private investment into areas that have a higher growth potential, a senior official with the state planning agency said on Saturday” reports businessinsider.com. China also would take steps to lower the investment threshold for private investors, said Zhang Yong, the vice-head of the National Development and Reform Commission (NDRC), during a briefing on the sidelines of China’s Communist Party Congress.The manufacturing industry as well as the property market, which have been driving private investment, are now quite weak, Zhang said….

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Fair lands 2 major investments, including backing from BMW, Penske

“The company said it is closing a BMW i Ventures-led strategic funding round that also includes investments from Penske Automotive Group, among other strategic investors” writes Auto Remarketing Staff for autoremarketing.com. Fair, an app that provides used-car leasing to consumers on a flexible basis, announced two major investments on Friday.Additionally, Fair has secured a total of nearly $1 billion in offers for dedicated capital coming from two entities: a group of institutional investment banks typically backing auto debt portfolios and a Sherpa Capital-led entity.Bauer’s background also includes time as BMW Group’s…

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Markets News 

Chinese property boom is propping up President Xi Jinping’s hopes for the economy

“Dire prophecies of a Chinese housing bubble have been a staple of economic punditry for at least a decade” writes Wang Zhao for cnbc.com. In 2010, billionaire short-seller James Chanos called China’s property market “Dubai times 1,000″.Despite their differences, both sides in the debate mostly agree that an outright crash of the housing market is unlikely.”At this point everyone realises they don’t really intend to crack down on the housing market.”. For China’s domestic economy, the world’s largest at purchasing-power parity, property investment directly contributed 10 per cent to GDP…

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SoftBank’s big checks are stalling tech IPOs

“Increasingly, the big checks are coming from SoftBank, which in May closed a $93 billion investment fund” writes Alessandro Di Ciommo for cnbc.com. IPOs have fallen especially precipitously since 2014 – the year public market investors, including mutual funds, ramped up investment in private tech companies.Big cash infusions for startups from an ever-expanding group of financiers, led by SoftBank and Middle East sovereign wealth funds, have extinguished hopes that the technology IPO market would bounce back this year.Secondary transactions allow employees and investors to get some cash by selling to…

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SoftBank Seen Climbing 36% as Son Clarifies Tech Vision

“Son has stepped up his deal-making since unveiling plans for a $100 billion investment fund, with backing from Saudi Arabia, Apple Inc. and others” writes unknown author for bloomberg.com. Chris Lane thinks investors haven’t quite gotten their heads around what Masayoshi Son is trying to do at SoftBank Group Corp.Investors still see SoftBank as primarily a telecommunications company, he says, even though its core business is investing in technology. Source: bloomberg.com Share This:

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