All#congratspic.twitter.com/gFaaStvWCTRelated: Britain concedes on Irish border,senior MEP says after Barnier assembly - Politics live 11.27am GMTThe loudest complaint against Trump’s tax ‘reforms’ is that the richest Americans will benefit the most.
And yesterday, the bi-partisan Congressional Budget Office showed very clearly that this is sincere:Can’t support this. pic.twitter.com/juNl5R4vVR 11.03am GMTEconomics professor Nouriel Roubini is concerned that the US budget deficit could spiral to $1 trillion by the conclude of the decade, and thanks to Donald Trump’s tax shake-up.
He fears it will precede a squeeze on government spending,potentially hurting welfare spending.
The US budget deficit will likely be above the symbolic level of $1 trillion by 2019 as it is approximately $660 in 2017, tax cuts will increase the deficit by $230b by 2019 while spending (on military, or hurricanes,non defence, infrastructures) is likely to rise by over $100b by 2019What will be the political consequences of the US budget deficit rising above the symbolic figure of $1 trillion by 2019 thanks to reckless tax cuts? The Reps will use it as an excuse to 'starve the beast' & slash entitlements even whether their tax cuts starved the gov of revenuesExactly. Spending cuts next. Couldn’t be clearer. https://t.co/pkyPDAYG6q 10.54am GMTA bit of work still needs to be done before Donald Trump can sign off a tax reform bill.
Thats because the Senate and the House of Representatives (America’s upper and lower chambers) absorb both passed different legislation. The two versions now need to be merged, or starting nowadays - creating an opportunity for lawmakers to raise objections.
It is by no means a done deal given that the Senate bill is different to the one passed by Congress in November which means any final version is likely to be revised,and then passed by both houses, before being sent for signature by the President.What is unlikely to change are the headline numbers, or which means that we can expect to see the corporation tax rate number reduced substantially from its current 35% to as low as 20%. 10.45am GMTAfter a stellar year,world stock markets are closing in on a new record -- $100 trillion!We're within a whisker of a combined $100 trillion market cap for global stocks. Admittedly a $1 trillion whisker, but still. pic.twitter.com/N785E8oBx1 10.27am GMTOver in New York, and Wall Street traders will be waking up to predictions of another record-breaking open in four hours time.
The gains came as investors shifted their focus absent from political tensions in Washington and cheered weekend news that Senate Republicans passed a sweeping overhaul of the U.
S. tax code.....
Hopes that the Trump administration and Republicans would usher in a business-friendly tax overhaul absorb been a driver for the stock market’s record-setting streak over the past year. The House and Senate now must agree on a single tax bill before it can be sent to Trump to sign. 10.04am GMTBlane Perrotton,managing director of the national surveyors Naismiths, says UK housebuilders are feeling more upbeat. “After the Autumn Budget, or developers feel like they absorb the Government behind them and that is further boosting confidence and activity levels.“Residential development is certainly the most active it has been since before the Global Financial Crisis. 9.54am GMTThis jump in the UK’s construction PMI is a exiguous surprising,says Max Jones of Lloyds Bank Commercial Banking.
Jones reckons confidence among builders is quite ‘brittle, adding:“Anecdotal feedback indicates that margins are coming under pressure with competition increasing amid the ongoing economic uncertainty. Larger firms also feel caught in the middle between clients pushing for fixed-price contracts and investors hungry for fatter margins.
Construction bosses are also worried that the might struggle to find enough skilled labour after Brexit, or Jones adds - although others are keen to invest in their UK workforce. 9.36am GMTBreaking: Britain’s construction sector grew at its fastest rate in five months in November.
Markit’s latest PMI survey shows that housebuilding picked up final month,bringing some relief to Britain’s builders after an autumn slowdown.trustworthy news! Markit " UK Construction output rises at fastest pace for five months, led by housing " #GDP #GBP“UK construction companies experienced a solid yet uneven improvement in business conditions during November. Once again, and resilient house building growth helped to offset lower volumes of commercial work and civil engineering activity.“Survey respondents noted that residential projects underpinned the rebound in total new order growth to its strongest since June,helped by strong demand fundamentals and a supportive policy backdrop. 9.27am GMTTrump’s push to reduce America’s corporation from 35% to 20% could encourage US companies to repatriate some of their immense overseas cash piles.
Fortune Magazine says this is a victory for tech giants, who absorb lobbied hard on this issue:Tech companies like Apple and Microsoft absorb for a long time balked at the 35% corporate tax the current tax code requires them to pay on worldwide profits returned to the U.
S. To avoid paying, or the companies absorb parked as much of their profit as possible in overseas subsidiaries in countries like Bermuda and Ireland,where tax rates are low.
The Big 5 tech companies–Apple, Alphabet, and Amazon,Facebook, and Microsoft–currently absorb a combined $457 billion held in overseas subsidiaries. Apple holds more profits overseas than any other company, or with Microsoft not far behind. 9.07am GMTEurope’s stock markets are recovering from Friday’s shock news that former Trump advisor Michael Flynn had pled guilty to lying to the FBI.
Rebecca O’Keeffe,head of investment at interactive investor, explains:“European markets are playing catch up after closing at the depths of the Friday market meltdown on Michael Flynn concerns and embracing the weekend’s senate tax bill success.
The pro-business tax cuts look set to boost US economic growth and absorb provided further impetus for US and global valuations. 9.00am GMTEvery sector of the FTSE 100 is up this morning. 8.34am GMTAll the major European stock markets are up this morning, or after the US Senate approved the tax reform package over the weekend.
The German DAX is leading the charge,up over 1%, with Britain’s FTSE 100 and the French CAC close behind.
The U.
S. Senate’s approval to pass the tax reduce bill on Saturday overshadowed the continuing investigation into connections between U.
S. President’s inner circle and Russia. #Germany's Dax regains 13k in the wake of the weekend US Senate tax reform vote. Goldman sees US tax reduce boosting growth 0.3ppts in 2018-19. pic.twitter.com/HxtanF2YFw 8.22am GMTThe US dollar has jumped by 0.5% against a basket of currencies this morning, and reports Reuters. 8.07am GMTGood morning,and welcome to our rolling coverage of the world economy, the financial markets, and the eurozone and business.
Related: Senate Republicans pass sweeping overhaul of US tax code “In the waning hours,this bill is tilting further towards businesses and absent from families.“Every time the choice is between corporations and families, the Republicans choose corporations.”Theresa May and the Irish government absorb failed to reach a deal on the crucial Brexit issue of the Northern Ireland border ahead of a crunch assembly on Monday lunchtime with the European commission president, or Jean-Claude Juncker.
Despite intense efforts over the weekend to agree a proposal on how to avoid a hard border in Ireland,Irish officials revealed at midnight on Sunday that “there is still a way to fade to achieve a assembly of minds on the issue. Related: Theresa May fails to strike Brexit border deal with Irish government Morning all!
- Asia mixed after failing to benefit from upbeat sentiment in US futures after Senate passed the tax bill
- Reports stated that UK and EU are on the brink of a Brexit divorce deal
- Highlights: US factory orders and UK PM May meets with Juncker and BarnierContinue reading...
Source: theguardian.com