Category: Business

The EU will soon unveil a plan for taxing major internet companies like Amazon and Facebook by imposing a levy of two to six percent on revenues in every country where they operate, French finance minister Bruno Le Maire said Sunday. "The range will be from two to six percent; but closer to two than to six," Le Maire told the Journal du Dimanche newspaper. The European Commission has said it will present by end March an overhaul of its tax rules, which currently allow US digital economy giants to report their income from across the bloc in any member state. That leads them to pick low-tax nations like Ireland, the Netherlands or Luxembourg, depriving other nations of their share of the revenue even though they may account for more…

President Donald Trump threatened on Saturday to impose a tax on European cars if the European Union chooses to retaliate against his plans to place tariffs on imported steel and aluminum. In a tweet Saturday morning, Trump said the U.S. had an "$800 Billion Dollar Yearly" trade imbalance because of "very stupid" trade deals and policies. He warned that if the EU increased "tariffs and barriers" against American-made products, "we will simply add a Tax on their Cars." Presently, the U.S. imposes a 2.5 percent tariff on European-built cars and Europe imposes a 10 percent tariff on U.S.-built cars. Earlier this week, Trump announced that he plans sometime in the coming week to impose tariffs of 25 percent on steel and 10 percent on aluminum imports. He said the tariffs…

The tiny Marshall Islands is creating its own digital currency in order to raise some hard cash to pay bills and boost the economy. The Pacific island nation said it became the first country in the world to recognize a cryptocurrency as its legal tender when it passed a law this week to create the digital “Sovereign,” or SOV. In the nation of 60,000, the cryptocurrency will have equal status with the U.S. dollar as a form of payment. Venezuela last month became the first country to launch its own cryptocurrency when it launched the virtual Petro, backed by crude oil reserves. The Marshall Islands said the SOV will be different because it will be recognized in law as legal tender, effectively backed by the government. ​Israeli partners The Marshall…

In agitating for a trade war, President Donald Trump may have forgotten William Tecumseh Sherman’s adage that “war is hell.” The Civil War general’s observation can be apt for trade wars, which may create conditions for a shooting war. A look at Trump’s spoiling-for-a-fight tweet Friday: TRUMP: “When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!” THE FACTS: History suggests that trade wars are not easy. The president’s argument, in essence, is that high tariffs will force other countries to relent quickly on what he sees as unfair trading…

China has warned about the “huge impact” on global trading, if U.S. President Donald Trump proceeds with his plans to impose 25 percent tariffs on imported steel and 10 percent on imported aluminum products. Wang Hejun, head of China’s commerce ministry’s trade remedy and investigation bureau, said in a statement late Friday the tariffs would “seriously damage multilateral trade mechanisms represented by the World Trade Organization and will surely have huge impact on normal international trade order.” The Chinese official added, “If the final measures of the United States hurt Chinese interests, China will work with other affected countries in taking measures to safeguard its own rights and interests.” Allies weigh in Meanwhile earlier Friday, Canadian Prime Minister Justin Trudeau said Trump’s tariff plans were “absolutely unacceptable.” Trudeau said Friday…

U.S. President Donald Trump’s threat to impose steep tariffs on steel and aluminum imports sparked concerns of a trade war Friday, with emerging markets trading lower and some world leaders threatening to take retaliatory measures. Japan’s Nikkei share average fell to a more than two-week low Friday. The Nikkei ended 2.5 percent lower at 21,181.64 points, its lowest closing since Feb. 14. “Automakers will have to bear the cost, and they may also have to raise prices while auto sales are already sluggish,” said Takuya Takahashi, a strategist at Daiwa Securities. “This isn’t looking good to the auto sector.” ​China, EU, Canada react China on Friday expressed “grave concern” about the apparent U.S. trade policy but had no immediate response to Trump’s announcement that he will increase duties on steel…

Australia’s corporate watchdog is taking mining giant Rio Tinto and two former executives to court over the global miner’s “misleading and deceptive conduct” in reporting the coal reserves of a Mozambique mine purchased for $4 billion. The Australian Securities and Investments Commission (ASIC) launched the court action Friday against Rio Tinto, former Chief Executive Tom Albanese and former Chief Financial Officer Guy Elliott. “ASIC alleges that RTL (Rio Tinto Ltd) engaged in misleading or deceptive conduct by publishing statements in the 2011 annual report, signed by Mr. Albanese and Mr. Elliott, misrepresenting the reserves and resources of RTCM (Rio Tinto Coal Mozambique),” the watchdog said in a statement. Rio Tinto bought the mine in 2011 for $4 billion and wrote off $3.5 billion in loses several years later when it…

When refugees arrive in a new country, they bring little to no material possessions. But many bring something more valuable: their talent and skills.  Twenty refugee women and asylum-seekers from different parts of the world recently came together at a pop-up store in Phoenix, Arizona, to display their homemade products and tell their compelling stories.   The details and the countries may be different, but their stories are strikingly similar.  Personal stories Nada Alrubaye was an art teacher who fled Iraq. "I had two boys. One, my young boy, was killed in Baghdad," she said. "I decided to go to Turkey with another son because I wanted to protect him." They arrived in Arizona four years ago.   Rodain Abo Zeed came from Syria. "I escaped from Syria seven years…

When refugees arrive in a new country, they bring little to no material possessions. But many bring something more valuable: their talent and skills.  Twenty refugee women and asylum-seekers from different parts of the world recently came together at a pop-up store in Phoenix, Arizona, to display their homemade products and tell their compelling stories.   The details and the countries may be different, but their stories are strikingly similar.  From Iraq Nada Alrubaye was an art teacher who fled Iraq. "I had two boys. One, my young boy, was killed in Baghdad," she said. "I decided to go to Turkey with another son because I wanted to protect him." They arrived in Arizona four years ago.   "I escaped from Syria seven years ago when the war started," said…

U.S. stocks sank in another dizzying day of trading Thursday after U.S. President Donald Trump promised stiff tariffs on imported steel and aluminum, worrying investors about possible retaliation by other countries. The Dow Jones industrial average fell 420.22 points, or 1.68 percent, to 24,608.98, the S&P 500 lost 36.16 points, or 1.33 percent, to 2,677.67 and the Nasdaq Composite dropped 92.45 points, or 1.27 percent, to 7,180.56. Trump said his administration would impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum. The news took Wall Street by surprise and caused concerns in the markets for companies that rely on aluminum and steel. Shares of Boeing fell 3.5 percent, General Motors dipped 4 percent and Ford dropped by 3 percent. Large technology companies also suffered, including Apple and Google-parent…

President Donald Trump announced Thursday the United States will impose steep tariffs on steel and aluminum imports. Trump said tariffs of 25 percent on steel and 10 percent on aluminum imports will be in effect for a long period of time. He said the measure will be signed "sometime next week." In a Twitter post earlier Thursday, Trump said that "Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world." At the Thursday meeting, Trump said the NAFTA trade pact and the World Trade Organization have been disasters for the United States. He asserted "the rise of China economically was directly equal to the date of the opening of the World Trade Organization."  Trump told…

A company’s value is often tied to the message it portrays to customers. But what happens when other companies try to take advantage of your brand? Take the Philadelphia Eagles, for instance. The American football team wants to exclusively own the phrase: "Philly Special.” That was the trick play that helped them win the Super Bowl, and the Philly Special is, by far, the most talked-about play of the Super Bowl. Watch the play here: It is a gutsy move. In football-speak, it is a direct-snap reverse pass to quarterback Nick Foles, who usually throws the ball. But the coach gives the OK, and Foles tells his teammates the plan in the huddle. The team lines up, Foles runs up the field. Tight end Trey Burton throws the football, and…

Two major U.S. retailers changed their gun sales policies Wednesday in the fallout over a Florida high school massacre. Walmart, the country's biggest retailer, announced it is raising the age restriction for buying guns and ammunition to 21. “We take seriously our obligation to be a responsible seller,” it said in a statement.  Walmart is also dropping toys and other items that resemble assault-style weapons from its website. The retail giant stopped selling assault-style guns in 2015 and does not sell handguns except for its stores in Alaska. Earlier Wednesday, Dick’s Sporting Goods announced it would no longer sell assault-style rifles or any gun to anyone younger than 21. The chain went one step further and urged Congress to ban assault-style weapons and raise the minimum age. The alleged Parkland…

Growth in China’s manufacturing sector in February cooled to the weakest in more than 11/2 years, raising concerns of a sharper-than-expected slowdown in the world’s second biggest economy this year as regulators tighten the screws on financial risks. The weakness was driven by disruption to business activity by the Lunar New Year holidays and curbs to factory output from tougher pollution rules, but there are worries of a bigger loss in momentum. “Although a recovery looks possible in the short-run as the anti-pollution campaign winds down, the risk is still that the economy fares worse this year than is generally expected,” said Julian Evans-Pritchard, senior China Economist at Capital Economics. Index raises concern The official Purchasing Managers’ Index (PMI) released Wednesday fell to 50.3 in February, from 51.3 in January.…

The U.S. Commerce Department on Tuesday recommended raising import duties on Chinese-made aluminum foil it said is being sold at unfairly low prices due to improper subsidies to producers.   The ruling was praised by the Aluminum Association, a trade group that pressed the case and said cheap imports were threatening thousands of jobs.   Beijing faces complaints from the United States, European Union and other trading partners that a flood of Chinese aluminum, steel and other exports are being sold at unfairly low prices, threatening jobs abroad.   The Commerce Department said it concluded Chinese exporters were selling aluminum foil at 49 to 106 percent below fair value and were receiving unfair subsidies of 17 to 81 percent of the goods' value.   Importers will have to post cash…

U.S. President Donald Trump has reached an agreement with the Boeing Co to provide two Air Force One planes for $3.9 billion, the White House said on Tuesday. "President Trump has reached an informal deal with Boeing on a fixed-price contract for the new Air Force One Program," Deputy Press Secretary Hogan Gidley told Reuters. He said the contract will save taxpayers more than $1.4 billion, but those savings could not be independently confirmed. Trump has said Boeing's costs to build replacements for Air Force One aircraft - one of the most visible symbols of the U.S. presidency - were too high and urged the federal government in a tweet to "Cancel order!" The Boeing 747-8s are designed to be an airborne White House able to fly in worst-case security…

Federal Reserve Chairman Jerome Powell, pledging to “strike a balance” between the risk of an overheating economy and the need to keep growth on track, told U.S. lawmakers on Tuesday that the central bank would stick with gradual interest rate increases despite the added stimulus of tax cuts and government spending. Fed policymakers anticipate three rate increases this year, and Powell gave no indication in prepared remarks to the House Financial Services Committee that the pace needs to quicken even as the “tailwinds” of government stimulus and a stronger world economy propel the U.S. recovery. “The [Federal Open Market Committee] will continue to strike a balance between avoiding an overheating economy and bringing ... price inflation to 2 percent on a sustained basis,” Powell said in prepared remarks for his…

Just as "Black Panther" is setting records at the box office, a new study finds that diverse audiences are driving most of the biggest blockbusters and many of the most-watched hits on television. UCLA's Bunche Center released its fifth annual study on diversity in the entertainment industry Tuesday, unveiling an analysis of the top 200 theatrical film releases of 2016 and 1,251 broadcast, cable and digital platform TV shows from the 2015-2016 season. Among its results: minorities accounted for the majority of ticket buyers for five of the top 10 films at the global box office, and half of ticket buyers for two more of the top 10. "There has been some progress, undeniably. Things are not what they were five years ago," said Darnell Hunt, director of the center,…

The governor of Sao Paulo and likely centrist presidential candidate Geraldo Alckmin said on Monday that he would privatize Brazil's state-run oil company Petroleo Brasileiro SA if he wins the elections in October. Alckmin, who has single digit support in opinion polls, said during a television interview with Band TV that he favored private ownership of Petrobras, as Brazil's biggest company is known, as long as the sale was conducted within a strict regulatory framework. Once a taboo issue in Brazilian politics because of national sovereignty concerns, the privatization of Petrobras is set to become a campaign issue this year as Brazil struggles to bring an unsustainable budget deficit under control. Brazil's left fiercely rejects the sale of Petrobras, but the leftist leader leading early opinion polls, former President Luiz…

The Trump Organization said Monday it has made good on the president's promise to donate profits from foreign government spending at its hotels to the U.S. Treasury, but neither the company nor the government disclosed the amount or how it was calculated.   Watchdog groups seized on the lack of detail as another example of the secrecy surrounding President Donald Trump's pledges to separate his administration from his business empire.   "There is no independent oversight or accountability. We're being asked to take their word for it," said Noah Bookbinder, executive director of Citizens for Responsibility and Ethics in Washington. "Most importantly, even if they had given every dime they made from foreign governments to the Treasury, the taking of those payments would still be a problem under the Constitution."…

Greece entered a last round of reform talks with creditors Monday, just five months before the country's massive rescue program ends — and with the government and central bank publicly disagreeing on how to finance the nation after the bailout.   Government officials said the talks with representatives of Greece's European partners and the International Monetary Fund in Athens would cover privatizations and energy.   But the negotiations were upstaged by a continued spat between Greece's central bank governor, Yannis Stournaras, and the government over financing policies after the bailout runs out in August. The country will then have to raise money from international investors in bond markets — at a much higher rate than bailout creditors charge.   Stournaras repeated his argument that the government should consider setting up…

President Emmanuel Macron on Saturday faced heckles and whistles from French farmers angry with reforms to their sector, as he arrived for France's annual agricultural fair. For over 12 hours, Macron listened and responded to critics' rebukes and questions — only to return home to the Elysee Palace with an adopted hen. "I saw people 500 meters away, whistling at me," Macron said, referring to a group of cereal growers protesting against a planned European Union free-trade pact with a South American bloc, and against the clampdown on weedkiller glyphosate. "I broke with the plan and with the rules and headed straight to them, and they stopped whistling," he told reporters. "No one will be left without a solution," he said. Macron was seeking to appease farmers who believe they have no alternative…

Investor Warren Buffett says Wall Street’s lust for deals has prompted CEOs to act like oversexed teenagers and overpay for acquisitions, so it has been hard to find deals for Berkshire Hathaway. In his annual letter to shareholders Saturday, Buffett mixed investment advice with details of how Berkshire’s many businesses performed. Buffett blamed his recent acquisition drought on ambitious CEOs who have been encouraged to take on debt to finance pricey deals. “If Wall Street analysts or board members urge that brand of CEO to consider possible acquisitions, it’s a bit like telling your ripening teenager to be sure to have a normal sex life,” Buffett said. Berkshire is also facing more competition for acquisitions from private equity firms and other companies such as privately held Koch Industries. Sticking with…

Australia appears to be failing in its efforts to crack down on bribery, according to the latest survey conducted by Transparency International, a non-governmental organization based in Germany. The group said developed countries - including Australia - appeared to be lagging in their efforts to combat corruption in the public sector.  It pointed to an inadequate regulation of foreign political donations in Australia, conflicts of interest in planning approvals, revolving doors and improper industry lobbying in large-scale mining projects.   While Australia's ranking is unchanged - it remains ranked 13th out of 180 countries - its corruption score has slipped eight points since the index started in its current form in 2012. Concern about Australia's ranking comes as debate continues about the need for a nationwide anti-corruption body similar to…

Three more companies say they have ended marketing programs with the National Rifle Association (NRA), as gun control advocates stepped up pressure on firms to cut ties to the gun industry following last week’s school shooting in Florida. Activists have posted petitions online, identifying businesses that offer discounts to NRA members, in a push to pressure the companies to cut ties to the gun rights organization. Corporations that ended their discount programs with NRA members on Friday included insurance company MetLife, car rental company Hertz, and Symantec Corp., the software company that makes Norton Antivirus technology. The move comes after several other companies cut their ties to the NRA earlier this week, including car rental company Enterprise, First National Bank of Omaha, Wyndham Hotels and Best Western hotels. The NRA…

The heaviest, the largest, the most impactful —  those were the superlatives the Trump administration used to describe its latest sanctions against North Korea. But were the Treasury Department designations of more than 50 companies and ships accused of illicit trading with the pariah nation really the toughest action yet by the U.S. and the wider world? Probably not. Here's a look at how President Donald Trump and a top lieutenant described Friday's sanctions to punish the North for its development of nuclear weapons and ballistic missiles — and how they stack up against past economic restrictions that have been piled on Kim Jong Un's government in response to its illegal weapons tests. Treasury Secretary Steven Mnuchin: "The Treasury Department is announcing the largest set of sanctions ever imposed in…

Federal Reserve policymakers fretted on Friday that they could face the next U.S. recession with virtually the same arsenal of policies used in the last downturn and, with interest rates still relatively low, those will not pack the same punch. In the midst of an unprecedented leadership transition, Fed officials are publicly debating whether to scrap their approach to inflation targeting, how much of its bond portfolio to retain, and how much longer they can raise interest rates in the face of an unexpectedly large boost from tax cuts and government spending. After years of near-zero rates and $3.5 trillion in bond purchases all meant to stimulate the economy in the wake of the 2007-09 recession, the Fed has gradually tightened policy since late 2015. Its key rate is now in the range of 1.25 to 1.5 percent, and while the Fed plans to…

European Union leaders staked out opening positions Friday for a battle over EU budgets that many conceded they are unlikely to resolve before Britain leaves next year, blowing a hole in Brussels' finances. At a summit to launch discussion on the size and shape of a seven-year budget package to run from 2021, ex-communist states urged wealthier neighbors to plug a nearly 10 percent annual revenue gap being left by Britain, while the Dutch led a group of small, rich countries refusing to chip in any more to the EU. Germany and France, the biggest economies and the bloc's driving duo as Britain prepares to leave in March 2019, renewed offers to increase their own contributions, though both set out conditions for that, including new priorities and less waste. Underlining…