Fed loses bank disclosure appeal

first_imgMonday 23 August 2010 8:40 pm whatsapp Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof Tags: NULL KCS-content Fed loses bank disclosure appeal center_img Show Comments ▼ Share The Federal Reserve will have to appeal to the Supreme Court if it wants to avoid having to disclose details of its emergency lending programmes to banks bailed out with taxpayer money during the financial crisis. The US Court of Appeals denied the Fed’s motion on Friday to rehear the case in which Bloomberg, the parent of Bloomberg News, and News Corp’s Fox News Network sought information on the US central bank’s emergency lending programmes that began in late 2007. whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldBetterBe20 Stunning Female AthletesBetterBeautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorBrake For ItThe Most Worthless Cars Ever MadeBrake For ItTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite Heraldlast_img read more

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Fall in orders at Laing O’Rourke

first_imgTuesday 24 August 2010 7:24 pm Construction firm Laing O’Rourke said it has axed thousands of staff in the wake of a 15 per cent drop in turnover to £4.3bn last financial year, with the UK and the Middle East hardest hit. The number of lay-offs is unclear, but the company spent £16.2m on redundancy costs. The privately owned company’s order book has fallen from a record £10bn in 2009 to £8.2bn in March 2010. Show Comments ▼ Share KCS-content whatsappcenter_img More From Our Partners Mark Eaton, former NBA All-Star, dead at 64nypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.com by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailBetterBe20 Stunning Female AthletesBetterBeautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastElite HeraldKate Middleton Dropped An Unexpected Baby BombshellElite HeraldTrading BlvdThis Picture of Prince Harry & Father at The Same Age Will Shock YouTrading BlvdTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farm Fall in orders at Laing O’Rourke whatsapp Tags: NULLlast_img read more

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August sees investors start to turn bullish

first_img Show Comments ▼ August sees investors start to turn bullish KCS-content whatsapp whatsapp Share by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeNoteabley25 Funny Notes Written By StrangersNoteableyTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesLuxury SUVs | Search AdsThese Cars Are So Loaded It’s Hard to Believe They’re So CheapLuxury SUVs | Search AdsBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comAll Things Auto | Search AdsBuick’s New Lineup Is Truly StunningAll Things Auto | Search AdsSenior Living | Search AdsNew Senior Apartments Coming to Scottsdale (Take A Look at The Prices)Senior Living | Search Ads A GROWING belief among British investment managers that fears of a renewed economic slump are overblown has halted a five-month decline in allocations to stocks, according to a Reuters poll.The survey of 11 British fund managers polled on asset allocations in August shows the average exposure to equities jumped more than three percentage points from a month earlier.The average allocation to equities climbed to 49.8 per cent in August, compared with 46.4 per cent in July. Allocations to bonds fell to 24.2 per cent from 25.5 per cent. Tuesday 31 August 2010 9:02 pm Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof The effect is exaggerated by the participation in August of a large equities-heavy fund manager who did not answer the poll in July but the trend remains the same if results are compared on a like-for-like basis.The move to shares follows five months in which managers pared allocations to stocks, mostly in favour of bonds.“Concerns about a double-dip recession are certainly overblown. Too few investors look at economic history. In reality such events are really rather rare,” said Andrew Milligan, head of global strategy at Standard Life investments. Tags: NULLlast_img read more

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Post workers to own 10pc of Royal Mail

first_imgWednesday 22 September 2010 8:23 pm KCS-content whatsapp Share Post workers to own 10pc of Royal Mail AT least 10 per cent of Royal Mail will be owned by employees when the postal service is eventually privatised, Vince Cable announced yesterday.Speaking at the Liberal Democrat conference in Liverpool, the business secretary said Royal Mail’s 155,000 workers would benefit from the “largest employee shares scheme of any privatisation for 25 years”.He added: “The Liberal Democrats were the first and only party to call for an employee stake and we are now implementing it in government.”The government has not yet decided whether it will give away the shares or sell them at a hefty discount, although it will try to find a way of making employees hold on to their stock rather than immediately offloading it.Cable is hoping the plan will avert a wave of strike action when the private owner begins trying to modernise archaic postal service.“If Royal Mail is going to modernise, it will need to bring its workers along with it,” an aide to Cable said, adding the Communication Workers Union (CWU) had already downed tools twice over attempts to drag the postal service into the 21st Century. Cable is keen to draw lessons from the success of companies with significant employee share ownership like John Lewis, which has shed staff in the recession with very little unrest. However, the CWU hit out at Cable’s plans, arguing it was “deeply patronising” to people who had spent their entire lives working at Royal Mail. “The British public currently owns 100 per cent of Royal Mail and now 90 per cent is to be sold off to the banks and financial institutions that have created the current financial crisis,” said Bill Hayes, CWU general secretary.The government is hoping to privatise the Royal Mail next year, after it has passed legislation in the autumn, either by finding a trade buyer or through an IPO. It will keep a small stake in the interim, but has no plans to be a long-term shareholder. center_img whatsapp Show Comments ▼ by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.com More From Our Partners Florida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgPuffer fish snaps a selfie with lucky divernypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comKiller drone ‘hunted down a human target’ without being told tonypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.com‘The Love Boat’ captain Gavin MacLeod dies at 90nypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.com Tags: NULLlast_img read more

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Burke to head up NBC Universal

first_img Share COMCAST chief operating officer Steve Burke will take the reins at NBC Universal when his firm completes its acquisition of the entertainment company.He will succeed Jeff Zucker as chief executive of the firm when Comcast finalises the purchase of a 51 per cent stake in NBC Universal from General Electric. Comcast chief executive Brian Roberts said: “Steve Burke is an experienced, talented and visionary leader with over 25 years in the media and entertainment industry.”Burke will have his work cut out to change the fortunes of the network. whatsapp whatsapp Burke to head up NBC Universal KCS-content More From Our Partners Police Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgMark Eaton, former NBA All-Star, dead at 64nypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.com Tags: NULL Show Comments ▼ Sunday 26 September 2010 10:32 pmlast_img read more

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Sanofi

first_img KCS-content whatsapp Show Comments ▼ whatsapp Share by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’Definitionthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.comcenter_img Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap Sanofi is feeling a little green around the gills. As the hopes of preventing cheaper generic versions of its Lovenox blood thinning drug appear to fade, it needs something else in the medicine cabinet – and it needs it fast. The problem it faces is that shrewd Genzyme investors know this. Sanofi claims it has shareholders onside with its $69 a share offer – already a 38 per cent premium to its pre-bid price – but with Genzyme management confident the firm is worth at least $75 a share it will face a struggle to convert the apparent goodwill into a decision to sell up. Any offer in the mid-70s per share could lead to double digit earnings accretion for Sanofi and there has been speculation it has held talks with its bank about raising extra capital for a higher bid. Conversely, any more than $75 a share would stretch the French firm too far.The acquisition could give Sanofi the lease of life it requires, allowing it to break into new high-margin rare disease drugs. However, it is not without risk – Genzyme has been struck with troubles of its own, including contamination issues at its main plant, and there is no guarantee the purchase will bear fruit immediately.With Sanofi’s offer not due to expire until 10 December, both sides will now dig themselves in for a war of attrition. The question is who will blink first. Monday 4 October 2010 9:13 pm Sanofi Tags: NULLlast_img read more

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US White & Case continues to expand its presence in the City

first_img whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island FarmDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’Definition More From Our Partners Florida woman allegedly crashes children’s birthday party, rapes teennypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgWhy people are finding dryer sheets in their mailboxesnypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comMark Eaton, former NBA All-Star, dead at 64nypost.com‘The Love Boat’ captain Gavin MacLeod dies at 90nypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.com US White & Case continues to expand its presence in the City Tags: NULL whatsapp Sharecenter_img Tuesday 12 October 2010 9:03 pm KCS-content Show Comments ▼ WALL STREET law firm White & Case has promoted 35 lawyers into its partnership, with seven in London reaching the top.The promotions, which take effect from the start of next year, will see the firm welcome seven London counsel and associates into its partnership.White & Case, which is based in New York, said the promotions represent continued investment in its City office. The firm has already hired four new partners this year and transferred one partner from New York to London. A further 16 lawyers in Europe, the Middle East and Africa have been promoted. “Our new partners are all outstanding lawyers, with diverse experience and expertise,” said White & Case chairman Hugh Verrier. last_img read more

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Mitsubishi to buy RBS assets for £3.8bn

first_img John Dunne Mitsubishi UFJ Financial Group said it would acquire project finance loans and assets from the Royal Bank of Scotland for £3.8bn.Sources told Reuters earlier this month MUFG was in talks to buy the project finance book. whatsapp Share Mitsubishi to buy RBS assets for £3.8bn Show Comments ▼ Monday 15 November 2010 3:03 am whatsapp More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.com Tags: NULLlast_img read more

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ROYAL WEDDING BELLS AT LAST

first_img whatsapp ROYAL WEDDING BELLS AT LAST More From Our Partners Killer drone ‘hunted down a human target’ without being told tonypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.com Show Comments ▼ by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was Famous, Now She Works In {State}MoneyPailBlood Pressure Solution4 Worst Blood Pressure MedsBlood Pressure SolutionSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesWolf & ShepherdNFL Star Rob Gronkowski’s Favorite ShoesWolf & ShepherdBlood Pressure For LifeWhy Doctors May No Longer Prescribe Blood Pressure MedsBlood Pressure For LifeMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesOne-N-Done | 7-Minute Workout7 Minutes a Day To a Flat Stomach By Using This 1 Easy ExerciseOne-N-Done | 7-Minute WorkoutElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Herald Sharecenter_img KCS-content A ROYAL wedding between prince William and his fiance Kate Middleton could come as early as spring next year, after the pair announced yesterday that they are to tie the knot. Prince William proposed whilst on a holiday in Kenya last month, and used the engagement ring his father gave to his mother, Princess Diana, in 1981. Tags: NULL Tuesday 16 November 2010 9:33 pm whatsapplast_img read more

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US is about to shoot itself in the foot

first_img whatsapp whatsapp KCS-content Monday 6 December 2010 9:26 pm Tags: NULL Share by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was The Dream Girl In The 90s, This Is Her NowMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayBetterBe20 Stunning Female AthletesBetterBeMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite Heraldmoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.com IT is not just Britain and Europe that are shooting themselves in the foot with stupid, job and wealth-destroying policies. The same is true of America, where investors, entrepreneurs and business leaders face the threat of a wave of new taxes. This ought to matter to everybody who works in London, because the health of our economy is linked so closely to that of the US. Despite signs that a deal between Democrats and Republicans may be on the cards, tax cuts passed a few years ago may still be about to be reversed. The uncertainty is debilitating investors and firms, and for good reason. The top rate of federal income tax would go up from 35 per cent to 39.6 per cent on New Years’ Day; this wouldn’t raise much but would hit the decision-makers who will determine whether or not the US bounces back next year. There would also be tax hikes lower down the income scale. The plan is also for a one third increase (from 15 per cent to 20 per cent) in the top capital gains tax rate; the top federal estate tax rate would jump from 0 per cent to 55 per cent; and the top dividend tax would jump from 15 per cent to 39.6 per cent, an increase of 164 per cent (the tax is slated to rise again to 43.4 per cent by 2013). All of this would be a disaster for investors and entrepreneurs (and hence job-creation): higher capital gains taxes would slash post-tax returns, cutting expected gains from the stock market, the creation of new firms and other investments. This would reduce the demand for equities and discourage the creation of new companies. An increase in the tax on dividends would also depress the value of US equities: shares are valued as the discounted net present value of future cash flows, namely dividends and share buy-backs, both of which will be cut post-tax. Thus expect the stock market to take a hit. America faces a crippling budget deficit and an exploding national debt; unless it acts, it too will end up facing a sovereign debt catastrophe. Yet even if all the tax cuts were extended, revenues would gradually recover over the next couple of years to exceed their historical average of 18 per cent of GDP. But federal expenditure is predicted to jump from its historical average of 20 per cent of GDP to 26 per cent by the end of this decade. The government is suffering from a temporary revenue problem – but a long-term, structural over-spending problem caused primarily by middle-class entitlements. It should tackle the latter, not the former. The Heritage Foundation has used the IHS Global Insight model to work out what would happen if taxes were hiked next month. GDP would grow at a much slower rate; the US economy would be $145bn smaller than it would otherwise be by 2018. Around 693,000 fewer jobs would be created. To this should be added the fact that the extreme uncertainty facing US investors and firms right now is preventing a real recovery. It is not just the possibility of huge tax hikes. As Donald J Boudreaux of George Mason University points out, the hyper-frantic Fed, fears about the dollar and anxiety over what Obamacare and Dodd-Frank will actually mean are all contributing to the malaise. Unless America finds the courage to tackle its out of control entitlements culture and increasingly bloated and wasteful government, it too will condemn itself to a future of ever higher taxes, weaker growth and generalised decline. Investors have been [email protected] Show Comments ▼ US is about to shoot itself in the foot last_img read more

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