President Donald Trump signed on Friday the most comprehensive reform of the US tax system in more than three decades.The effects of the tax reform for each of the US economic sectors has been widely detailed by experts in the last months. Specifically BBVA Research have analysed Trump’s tax overhaul from the housing market’s angle.
David M. Lampton via Caixin | The U.S.–China relationship is fraught with problems and will be for the foreseeable future. The U.S. is no longer positioned to compel cooperation from China. Any policy changes from Beijing must be negotiated, and within this negotiation Washington must seek a balance of power and interests.
Mapfre said last Friday that it will restructure its business in the US “to optimise its profitable growth structure and concentrate the operations there in a smaller number of states.”
Why do Americans think Trump’s tax plan will benefit them if even Treasury secretary, Steven Mnuchin, referred to the projected economic growth of up to 6%, as “optimistic”?
Donald Trump’s tax plan, which is now being debated in the Senate, states very seriously that its effect will be to multiply investment and jobs. That’s up for discussion, given that the US has probably reached its maximum potential, namely in terms of GDP without inflation and the jobless rate is at 4%.
In the last few months, we have witnessed a worrying downward revision to US savings rates, in addition to the clear declining trend in savings. If US households don’t dedicate part of the resources freed up by the government’s planned tax reform to savings, we will be facing some very bad news.
US commercial banks are trading at a discount of over 25% with respect to the market as a whole (S&P 500) in terms of PER 2018e. Fundamentals are solid and the Fed’s monetary policy heralds a good performance from their profit and loss accounts in 2018 and 2019.
The spectacular results of the four major US technology firms drove the Nasdaq index to a new record high as it closed the week at 6.701, a rise of 35% since the highs of the technology bubble at the start of the century which was a psychological level many thought would never be recovered.
While the EU statistics office Eurostat said on Tuesday GDP in the eurozone rose 0.6% quarter-on-quarter in the three months to September and 2.5% year-on-year, the EC revised yesterday its growth forecast for the region to 2.2%, markedly higher for this and next year. Therefore, this Commission’s expectation in 2017 is well justified, based on published data from Eurostat.
Nick Malkoutzis via Macropolis | Alexis Tsipras’s recent visit to the USA was something of a curate’s egg, ranging between high diplomacy and acute embarrassment. It would be wrong, though, to dismiss its implications.