December, 2017

• 16 December

  The true tax gap: How about $12 trillion!

  

  When historians examine President Trump’s tax programme, they will surely be struck by a large and momentous contradiction. Although the nation faces endless budget deficits — and although the president purports to speak about the future — his tax programme does little or nothing to curb long-term deficits and, arguably, might make them worse. It is said that the tax ...

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• 16 December

  Reliance Jio may be worth same as Sprint if Ambani doesn’t rush it

  

  Mukesh Ambani, India’s richest man, can consistently squeeze more than $10 a barrel in refining margins out of crude. Expect no less from him when it comes to monetizing Reliance Industries Ltd.’s investment in Reliance Jio Infocomm Ltd., the fourth-generation mobile network that’s taken the nation’s digital landscape by storm. What kind of an equity market valuation should Ambani put ...

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• 16 December

  Basel III is too kind to Europe’s banks

  

  After years of talks, central banks and financial regulators have finally agreed on the Basel III rules for bank capital. That’s a good thing, mostly. The deal improves the regulatory framework and will give banks greater clarity about what’s required. It’s also a timely reminder that international policy cooperation can work. There’s a catch, however: The new rules have been ...

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• 16 December

  How the UK can avoid the worst possible Brexit

  At a European Union summit this week, the bloc’s leaders are expected to formally declare that the Brexit talks can move forward. Not a moment too soon. Britain and the EU have spent 18 months since the UK’s decision to quit avoiding the main issues — namely, their future trading relationship and a plan for getting from here to there. ...

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• 16 December

  Nurture counts as much as nature in success

  

  The question of nature versus nurture is an important one, but also an incredibly delicate one. How much of the disparities we see in society are fuelled by a lack of good education, social influences and role models, and how much are due to natural ability? Given that people in advanced countries spend multiple decades of their life in school, ...

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• 16 December

  Bitcoin finds a Seoul mate to help it get high in Korea

  

  If you can’t beat them, regulate them. That sounds like a pretty good mantra for governments the world over trying to wrap their heads around this tamagotchi of finance better known as bitcoin. South Korea is the latest to propose cryptocurrency measures after a surge in trading started to ring alarm bells. The fact that its citizens were paying close ...

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• 16 December

  2017 was bad for Facebook; it will get worse

  

  Facebook is projected to boost sales by 46 percent and double net income, but make no mistake: It had a terrible year. Despite its financial performance, the social media giant is facing a reckoning in 2018 as regulators close in on several fronts. The main issue cuts to the core of the company itself: Rather than ‘building global community,’ as ...

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• 16 December

  Russia surprises with big rate cut, but says it’s not a trend

  

  Bloomberg The Bank of Russia surprised the market with a cut in its key rate that was double what economists expected, but warned that it’s not shifting into higher gear on easing. A deal between the Organization of Petroleum Exporting Countries and its allies to maintain oil production cuts until the end of 2018 was a key factor lifting the ...

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• 16 December

  Spain kicks off race to reclaim position on ECB executive board

  

  Bloomberg Spain kicked off the race to lock down the European Central Bank vice presidency after Prime Minister Mariano Rajoy confirmed the nation will bid for the post. The Spanish premier said the country is well-placed to present “a female or male” candidate for the role set to become vacant after the current No. 2, Portugal’s Vitor Constancio, retires in ...

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• 16 December

  Bank of Spain cuts GDP forecasts for next two years on Catalonia

  

  Bloomberg The Bank of Spain cut its estimate for economic growth for 2018 and 2019 because of the impact of political uncertainty related to Catalonia’s drive for independence. Growth is set to slow to 2.4 percent next year from a previous estimate of 2.5 percent in September before the secession crisis erupted. The economy will grow 2.1 percent in 2019 ...

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