Finance

Alicia Garcia-Herrero: What US Tax Reform Means for China

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How will the new U.S. tax system affect the world’s second largest economy? Maurits Elen The Diplomat Since the 1980s, the American corporate income tax rate has remained unchanged, all while OECD countries consistently started to reduce their own. With lower rates soon to be signed into law, a key economic policy objective of Trump is taking shape: to make the United States more competitive. The tax overhaul is unlikely to significantly affect the Chinese economy, nor will it pressure China ... Read More »

A Bitcoin.com co-founder has sold all of his bitcoin, and the reason he cites is serious

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A bitcoin believer no longer believes it to be the future Is the cryptocurrency’s dream run nearing an end? By : Kukil Bora International Business Times Emil Oldenburg, one of the co-founders and CTO of Bitcoin.com, is no longer convinced by the future of bitcoin. Despite the fact that the cryptocurrency’s astronomical price surge this year helped his site grow its profile, Oldenburg now tends to believe that bitcoin investment is currently the riskiest venture one can make. “There’s an extremely ... Read More »

Intangible assets are changing investment

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Forecasting profits is not as helpful as it used to be WHEN you work as an equity analyst at an investment bank, your task is clear. The Economist It is to comb all the statements made by corporate executives, to scour the industry trends and arrive at an accurate forecast of the company’s profits. Achieve this and your clients will be happy and your bonus cheque will have many digits. But is all this effort worthwhile? Not as much as ... Read More »

Georgia Still on the World Bank’s Mind

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As the World Bank racks up 25 years in Georgia, Mercy Tembon, the bank’s regional director for the South Caucasus, Europe and Central Asia tells Andrew Wrobel that her organisation is as committed to the country’s future as ever. Andrew Wrobel Emerging-Europe Let’s start with the anniversary. What has the World Bank been doing here for the last quarter of a century? Yes, Georgia, along with the other countries in the region, joined the bank in 1992. Those were very ... Read More »

Japan exports, imports surge on strong demand in China, U.S.

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Japan’s exports rose 16 percent in November from a year earlier driven by robust overseas demand for cars and manufacturing equipment that is helping to sustain the longest economic expansion in more than 15 years. THE ASSOCIATED PRESS The Asahi Shimbun Customs data released Monday showed the trade surplus for the world’s third-largest economy slipping 23 percent from the year before to 113.4 billion yen ($1 billion), however, as imports jumped 17 percent thanks to a surge in purchases of ... Read More »

Insight: The Scots investors in the Bitcoin boom

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Some Scots investors in the cryptocurrency can barely believe their luck, writes Dani Garavelli Around 18 months ago, Norman, a pensioner from Inverness, was contacted about an investment opportunity: bitcoin. Dani Garavelli The Scotsman A financial dabbler, he had once been defrauded out of quite a large sum of money, so he was reticent about getting involved. But eventually he was persuaded to take the risk. He bought just over six bitcoins at just under £500 each, through a London-based ... Read More »

Scotland set to lag behind UK with growth below 1% until 2022

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A gloomy outlook for Scotland’s economy over the next five years has been unveiled by the new Scottish Fiscal Commission SCOTT MACNAB The Scotsman Growth will lag behind the rest of the UK at less than 1 per cent between now and 2022, according to the body which was set up by the Scottish Government to provide economic forecasting. Its first report was published yesterday to coincide with the Scottish budget. “Scottish economic growth has been slower over the last ... Read More »

3 myths about the poor that Republicans are using to support slashing US safety net

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Republicans continue to use long-debunked myths about the poor as they defend lower taxes for the rich and deep cuts to the social safety net to pay for them. Michele Gilman In so doing, they are essentially expressing scorn for working class and low-income Americans. The Conversation Sen. Chuck Grassley, for example, recently justified reducing the number of wealthy families exposed to the estate tax as a way to recognize “the people that are investing, as opposed to those that are just spending every darn penny they have, ... Read More »

World trade is going through a seismic shift — and nobody knows how it will end up

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NAFTA, Brexit, countries around the world are redefining their trade relations, bringing uncertainty the global economy does not need Special to Financial Post Gordon Isfeld OTTAWA — In the gaps between NAFTA negotiations and U.S.-Canada interest-rate ponderings, Brexit remains a painfully present problem that could fill any economic void with even greater global uncertainty. At the same time, the slow slog of talks on the make-up of a new free-trade pact between North America’s three economies seems to have lost some of its direction ... Read More »

West Face files claim against mortgage lender Home Capital

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West Face claim says ‘investors who purchased common shares of Home Capital to close out a short position were excluded from compensation under settlement terms’ of a class action suit Barbara Shecter Financial Post Alternative asset manager West Face Capital Inc. has formally filed a lawsuit against Home Capital Group Inc. and three former executives, seeking $70 million in damages over claims the mortgage lender’s public disclosure was “inaccurate, incomplete and misleading.” In a 17-page statement of claim filed in ... Read More »

Bank Indonesia declares bitcoin payment illegal

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Cryptocurrency’s volatility poses ‘huge risk’ to economy, central bank says Erwida Maulia Nikkei Asia Review JAKARTA — Indonesia’s central bank on Thursday said it had issued a new regulation prohibiting the use of cryptocurrencies — including bitcoin — in the country, as their rising popularity has raised concerns over unwanted impacts on the economy. Bank Indonesia had for some time said that the use of cryptocurrencies ran contrary to Indonesia’s law mandating the use of rupiah in domestic transactions. The ... Read More »

Brexit Creates a Game of Risk for European Banks

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A hard Brexit represents a potential shock to the international financial system and has both direct and indirect consequences for the United Kingdom’s economy Scott B. MacDonald The National Interest While the government of Theresa May seeks to restart negotiations with the European Union on December 5, time is marching on. This is important as risk managers are looking at their watches and are increasingly concerned about London’s inability to come forward with a credible Brexit bill in the eyes of Europeans. The result could be ... Read More »

Is China’s Economic Power a Paper Tiger?

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The People’s Republic of China has surely seen faster GDP growth than the United States for most of the past forty years Derek M. Scissors  The National Interest It’s the value of that growth that’s questionable. The people complaining about U.S. decline in the face of China’s rise under President Obama have been replaced by new people complaining about the same thing under President Trump. The debate over policy in the two administrations plainly matters, but it should not obscure basic facts. The ... Read More »

Blackmail — the business plan for cheaper wages

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Underpaying migrant workers has become a business practice for unscrupulous employers David Chau ABC For some employers, it is an easy way to boost the bottom line with a low risk of getting caught — hence there is little incentive to comply with industrial laws. It has even been described as a “business model” by worker advocates. “There are employers out there structuring the cost of doing business through stealing wages,” said Ged Kearney, president of the Australian Council of ... Read More »

Public jittery as Turkish lira slides rapidly over political, economic issues

A change office staff shows Turkish lira on his hand on December 2, 2016 in Istanbul.
Turks have over the past three months nervously watched the steady decline in value of the Turkish lira against the dollar, seeing it haemorrhage more than 10 percent in the past month alone. / AFP PHOTO / OZAN KOSE

The lira was trading at around 3.95 to the US dollar on Tuesday In May 2013, it traded at approximately 1.92 to the US dollar Middle East Eye ISTANBUL, Turkey – The spectre of economic hardship – if not outright crisis – is looming large yet again as the Turkish lira continues its rapid slide against the US dollar and euro, with some people already displaying signs of panic by talking of withdrawing their savings from banks as politicians revert to ... Read More »

How to future-proof the West’s economies

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Top economic thinkers from the U.S. and Europe say we need to start by fixing our politics Sure, growth could be more robust. MAURA REYNOLDS Politico Sure, some workers are getting left behind. Sure, corporate debt is high and markets look frothy. But those problems aren’t the biggest threat facing the economies of the United States and Europe. What is? The answer from a group of top economic thinkers convened by POLITICO isn’t something in the economy. It’s politics. At a ... Read More »