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Trump slashes India’s trade benefits, demands ‘reasonable access’ to markets

May 31, 2019 by Leave a Comment

“I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets,” Trump said in a statement on Friday, announcing that India will be excluded from the Generalized System of Preferences (GSP) program on June 5.

Under GSP, India has been annually importing to the US some $5.6 billion worth of products duty-free. The program, designed for developing nations, especially facilitated the exports of textiles, leather, engineering goods, gems and jewelry.

Also on rt.com ‘No knee-jerk reaction’: India says impact of US withdrawal of trade benefits will be limited

The US-Indian tensions escalated last year when Washington slapped the country with 25 percent tariffs on steel and 10 percent levies on aluminum, all while seeking import trade concessions from New Delhi.

While India threatened tariff hikes on 29 American products, Prime Minister Narendra Modi’s government decided to postpone the retaliatory measures pending negotiations. The American officials are seeking to reduce the US’ $21-billion deficit with India, after Trump as usual accused the country of ‘unfair’ trade practices and refusal to buy more American products.

Also on rt.com ‘They have to keep us happy’: Trump brandishes his ‘powerful’ tariff stick at India

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Article source: https://www.rt.com/business/460789-trump-cuts-india-preferential-trade/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Filed Under: Global Business

China’s retaliatory tariffs on $60bn of US products kick in

May 31, 2019 by Leave a Comment

Over 5,000 US products coming into China will now face a 25 percent import tax instead of the usual 10 percent. Higher tariffs will target a range of food products, including cooking oils, frozen vegetables, wine and beer, in addition to industrial minerals and chemicals, textiles and clothing. Consumer items ranging from home appliances to condoms will also be subjected to increased import duties, as will jewelry, metal products, and machinery parts.

Also on rt.com Tit-for-tat: Beijing to draft ‘blacklist’ of foreign companies harming interests of Chinese firms

China’s actions, which were announced last month, came in response to the US tariff hike on $200 billion in Chinese imports after bilateral talks seeking to avert a full-blown trade war failed.

To force Beijing into compliance with his demands, President Donald Trump and his administration are now threatening China with another tax increase on the remaining $325bn worth of goods. China, meanwhile, is considering a ban on rare earth mineral deliveries to the US, materials which are crucial in military industry and manufacturing a number of high-tech consumer goods like hybrid cars and mobile phones.

Also on rt.com What are rare earth metals why they are China’s ‘nuclear option’ in trade war with US

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Article source: https://www.rt.com/business/460788-china-us-sanctions-effect/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Filed Under: Global Business

Lawsuit Could Cool a Fast-Growing Way of Giving to Charities

May 31, 2019 by Leave a Comment

Still, the tax deduction is always greater if the donation goes to a public charity, like a university, hospital or, yes, a donor-advised fund, Ms. Snow said.

In the case of the Fairbairns, the $100 million donation included shares of Energous, which makes wireless charging technology. The shares had appreciated substantially on the regulatory approval of the company’s transmitter.

By using a donor-advised fund, the Fairbairns would not have to pay taxes on the capital gains in those shares. They would also receive a higher tax deduction for both the stock and cash portion, and ultimately be able to give more to charities as the stock price rose.

Or that was the plan.

The Fairbairns’ complaint alleges that Justin Kunz, a relationship manager in Fidelity’s family office group, which serves its wealthiest clients, made certain promises over how the donation would be handled. One of those promises, the suit says, was to sell the stock over time and not let any sale exceed 10 percent of the daily trading volume. A quick sale would decrease the value of the shares and whittle down the $100 million.

Vincent Loporchio, a spokesman for Fidelity Charitable, declined to make Mr. Kunz or anyone from Fidelity Charitable available for an interview. But in emails, he disputed the Fairbairns’ claims. He said that it was Fidelity Charitable’s policy to sell any securities as soon as they were received and that the Fairbairns had known this.

“Their claim that they were told something different is entirely false, and not supported by any evidence,” Mr. Loporchio said in an email.

The Fairbairns’ lawyers would not comment on the case, but they contested Fidelity’s response in their legal filings. They argued that Mr. Kunz and another executive at Fidelity Charitable who handled complex assets had told the Fairbairns that the stock would be sold gradually to maintain the price.

Article source: https://www.nytimes.com/2019/05/31/your-money/donor-advised-funds-charitable-giving-lawsuit.html?emc=rss&partner=rss

Filed Under: Your Money

Harry Potter E-Books Offer Hogwarts Lessons for All

May 31, 2019 by Leave a Comment

They will be perfect for the train or “whatever Muggle transport you prefer,” J.K. Rowling’s Pottermore website predicts, announcing the coming publication of four new Harry Potter e-books.

The books, described as “bitesize reads,” will each be based on subjects studied at the Hogwarts School of Witchcraft and Wizardry, attended by Harry and his friends (and enemies). The series, titled “Harry Potter: A Journey Through …” and illustrated by the London-based artist Rohan Daniel Eason, is, according to the website, inspired by and adapted from “Harry Potter — A History of Magic,” the companion book to the 2017 British Museum exhibition of the same name. Like that book, the e-books will feature manuscript pages, notes and sketches alongside the text.

[More about the Harry Potter exhibition, as it appeared in New York.]

The “Journey Through” books follow a number of short e-books already published under the title “Pottermore Presents” which collate and add to Ms. Rowling’s writings and stories from the website, devoured by the huge fan base that has made the Harry Potter series one of the most lucrative publishing franchise in history, spawning two film series, a theme park, an app and a stage production now in three countries.

The first two books in the new series, to be published in English, French, Italian and German on June 27, and selling for $2.58 each, are “Harry Potter: A Journey Through Charms and Defence Against the Dark Arts,” and “Harry Potter: A Journey Through Potions and Herbology.” The next pair, “A Journey Through Divination and Astronomy” and “A Journey Through Care of Magical Creatures,” are to arrive “soon after.”

Article source: https://www.nytimes.com/2019/05/31/arts/design/harry-potter-e-books-journey-through.html?emc=rss&partner=rss

Filed Under: Media Business

Passengers May Pay a Lot More. Drivers Won’t Accept Much Less.

May 31, 2019 by Leave a Comment

Still, a major survey of drivers done last year by the analysis firm Ridester showed average raw earnings for UberX drivers of about $15 per hour, before projected deductions of about $8 per hour.

The bad news for the drivers, then, is that average pay will be low. Also, even if they convinced ride-share companies to raise the share of revenue the drivers keep and to increase benefits, the earnings boost would likely be ephemeral. Thousands of new drivers would enter the more lucrative market, bringing average earnings back down to the market rate.

The good news for drivers, though, is that it won’t be easy for ride-share companies to cut wages much lower. Many drivers will simply stop driving if wages fall.

One of the most important studies of driver behavior (conducted by professors from Yale and U.C.L.A. and, again, one Uber employee), confirms the sensitivity of drivers to earnings changes. On average, they increase their hours by 20 percent in response to a 10 percent increase in wages. That is about four times larger than the response by passengers to changes in the price of a ride.

Economics says that the likelihood that a person will bear the burden of an increase in profit margins is inversely proportional to their price sensitivity. In other words, because drivers are four times more price sensitive than riders, a reasonable guess is that 80 percent of the price burden will fall on passengers, 20 percent on drivers. Uber and Lyft are still building their networks and market share, which complicates matters, and may delay price increases.

Nonetheless, I think that as a passenger, you should take your Uber and Lyft rides now, while they’re still relatively cheap. And, if you’re an investor counting on wage cuts and robots to carry Uber and Lyft to profit nirvana, you may want to buy a certain bridge first.

Article source: https://www.nytimes.com/2019/05/31/business/passengers-drivers-pay-uber-lyft.html?emc=rss&partner=rss

Filed Under: Economy News

Home Buyers See Signs of Relief This Spring

May 31, 2019 by Leave a Comment

“For first-time buyers, there’s inventory they can afford,” Mr. Murphy said. “But many listings can get 20 offers or more.” Typically, he said, buyers who are able to pay cash win the contest.

Similarly, in Kansas City, Mo., sellers still generally have the upper hand, said Bobbi Howe, an agent with Keller Williams Kansas City North. Buyers may need to be flexible and accommodate the seller’s needs, she said, such as offering an extended closing date or extra time to move out of the house.

Entry-level shoppers who are financing their purchase should obtain prequalification from a lender, Ms. Hale said, and should be prepared mentally for a longer search that will probably involve some rejected offers. “It requires a lot of persistence,” she said.

Here are some questions and answers about home buying:

How much of a down payment is required to buy a home these days?

The old rule of 10 to 20 percent down is no longer ironclad. Both Freddie Mac and Fannie Mae, the quasi-governmental mortgage finance companies that back most home loans in the United States, have been offering programs requiring just 3 percent down for several years. In the first three months of this year, 80 percent of first-time home buyers used some form of mortgage with a low down payment, according to a report from Genworth Mortgage Insurance.

A larger down payment still offers advantages, though — such as avoiding the need for private mortgage insurance, which will increase monthly payments.

Can I use a gift from a family member as a down payment?

Yes. Nearly a quarter of borrowers use funds from friends or family to help finance a home loan, according to Freddie Mac. You should, however, document that the money is truly a gift rather than a loan; lenders provide a formal gift letter that the donor can sign.

“Generally, lenders frown on a loan for a down payment,” said David Zuckerman, a certified financial planner and a spokesman for the CFP Board, which sets professional standards for planners.

What are current mortgage rates?

The average rate on a 30-year, fixed-rate mortgage fell to 3.99 percent, the first time it has fallen below 4 percent since January 2018, according to Freddie Mac’s weekly survey released on Thursday. A year ago, the average rate was 4.56 percent. The lower rates should give a boost to the housing market, the company’s chief economist said.

Article source: https://www.nytimes.com/2019/05/31/your-money/home-buyers-see-signs-of-relief-this-spring.html?emc=rss&partner=rss

Filed Under: Your Money

Planting the Seeds of a Story With Farmers in the Midwest

May 31, 2019 by Leave a Comment

“It makes me feel really good to hear Trump say farmers are important to this country,” he said. “That’s what makes me want to stick with the president.”

And while he hopes the trade fight is settled soon, he doesn’t think trade is the “silver bullet” that is going to solve farmers’ problems.

When heavy morning rains canceled the next day’s planting, I toured Countryside Cooperative’s grain elevator and storage bins, which Shane and farmers in the surrounding counties use. There, Mike Christenson, the agronomy supervisor, was dealing with the headache of getting dried fertilizer delivered since flooding had halted barge traffic in their region along the Mississippi. I drove across the river to Winona, Minn., to see the quieted grain terminals for myself.

Shane and I met up later at the Bragger home. Joe Bragger had just returned from listening to the vice president speak at what he labeled “a whistle stop” at an equipment manufacturer.

Like Shane, he was ready to support President Trump until the trade war ended, yet still believed the trade issue was only one front on which farmers were battling. “From the dairy side, it’s a distraction,” Joe said. Overproduction and drooping commodity prices, he said, are the real problems.

When Noel, his wife, announced dinner was ready, I turned off my recorder, put down my notepad and sat down with the Bragger clan and Shane on the porch looking out over a part of his farm. There were lots of stories, laughs and ice cream. A perfect evening.

The next day, I drove to the airport, dropped off my rental car and headed toward the terminal. There are only two flights that depart from Eau Claire each day, so I wasn’t all that surprised when I ran into a familiar face. It was Tuco, the dog who had sat across the aisle from me on the trip from Chicago a few days earlier. We were both headed home.

Follow the @ReaderCenter on Twitter for more coverage highlighting your perspectives and experiences and for insight into how we work.

Article source: https://www.nytimes.com/2019/05/31/reader-center/planting-corn-interviewing-soybean-farmers.html?emc=rss&partner=rss

Filed Under: Economy News

Trade war could trigger ‘global financial crisis,’ says ex-China central bank chief

May 31, 2019 by Leave a Comment

Talking at a press event in Beijing on Friday, he said that, “The consequence of the China-US trade war not only will be reflected in both countries, but will also extend to relevant regions, extend to the whole world.”

“If the China-US trade war continues to grow larger, it may cause the global economy to decline, and may cause a global financial crisis,” he said as cited by CNBC.

Also on rt.com China’s nuclear option of dumping US bonds would cause absolute chaos in global markets – expert

Dai, who was PBOC governor from 1995 to 2002, said he expects the China Shanghai Composite stock market index to rise steadily above the 3,000 level, helped by China’s coming market reforms. The index which hit above the key psychological level of 3,000 earlier this year was trading at 2,898 on Friday.

Dai also attributed the recent weakness in the Chinese yuan to the market’s reaction to trade tensions. He noted that Beijing would not devalue the renminbi in response. According to him, fundamentals, such as economic growth and foreign exchange reserves, support a stable yuan.

READ MORE: China fighting ‘PEOPLE’S WAR’ against US – state media on tariff hikes

Former Chinese vice commerce minister Wei Jianguo, who was moderating the Friday press event, said that initiating a trade war with China might be the biggest strategic mistake made by the United States since World War II, or even its founding.

“It can be said, that the US this time has at the wrong time, fought a wrong war, and chosen a wrong opponent,” Wei said, adding that trade tensions could last 30 years or more.

Also on rt.com What are rare earth metals why they are China’s ‘nuclear option’ in trade war with US

“I’m confident that time, reason and truth are on our side,” he said. “Our Chinese people will most certainly win, peace will most certainly win.”

China and the US are deadlocked over an almost year-long trade war which worsened when earlier this month the Trump administration accused Beijing of reneging on commitments to make structural changes to its economic practices.

Washington slapped additional tariffs of up to 25 percent on $200 billion worth of Chinese goods which prompted Beijing to hit back with additional levies on the majority of US imports on a $60 billion target list. China’s retaliatory tariffs are set to take effect on June 1.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/460747-trade-war-global-crisis/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Filed Under: Global Business

A Financial Checklist for Your Newly Minted High School Graduate

May 31, 2019 by Leave a Comment

Your children can stay on your health insurance plan until the age of 26, thanks to the Affordable Care Act. If you plan on having them pitch in for deductibles, it’s probably time to sit down and explain how your family coverage works. At the very least, they need to know what a co-pay is.

According to the scores of parents who responded to my query on Grown and Flown, a website and Facebook group for parents of teenagers and young adults, filling a prescription for the first time is filled with interesting obstacles, especially on refills for regular but essential medicines. So introduce your child to the various insurance cards and account numbers he or she needs, and do a walk-through with your local druggist or whatever mail-order pharmacy your insurance company forces you to use.

Most employers that issue formal paychecks will require your teenager to fill out the Internal Revenue Service’s W-4 form. So review it to explain what it is and what kind of taxes, if any, your teenager might pay.

Do you get confused when you have to fill out your own every so often? There’s no shame in that, and the I.R.S. has a calculator that can help. And if it looks like too much money, or too little, is showing up in the first check after the withholding of taxes that you specified, you can revise the form.

If compound interest isn’t officially the eighth wonder of the world, then it ought to be. The sooner teenagers start saving, the more they could benefit from its magic as it unfolds over a half-century or more.

Show your teenager a chart of the vastly higher returns possible for those who begin earlier, like the one I tweet out from time to time. Then, set your child up in a Roth I.R.A., where money can grow tax-free for decades and isn’t subject to taxes once it’s withdrawn in retirement.

Article source: https://www.nytimes.com/2019/05/31/your-money/teenager-financial-preparation.html?emc=rss&partner=rss

Filed Under: Your Money

Tit-for-tat: Beijing to draft ‘blacklist’ of foreign companies harming interests of Chinese firms

May 31, 2019 by Leave a Comment

The ministry is planning to disclose details of the proposed list in the near future, according to spokesman Gao Feng, as quoted on state-run China National Radio.

Also on rt.com Till Trump do they part: Top tech firms cut ties with Huawei following US trade blacklisting

The measure has been proposed amid the recent scandal that has erupted around the US blacklisting of Chinese telecoms major Huawei, along with other Chinese corporations, on the direct order of US President Donald Trump.

That decree bars American businesses from supplying Huawei with spare parts or technology solutions. The measure was introduced after the White House accused Chinese companies of espionage against the US on behalf of Beijing.

Also on rt.com The art of trade war: Chinese firm bans workers from buying American goods stateside travel

Following the order, the US Department of Commerce announced the blacklisting of Huawei and 70 of its affiliates. This has forced American companies to seek special permission from the Bureau of Industry and Security (BIS) to trade with the Chinese firm.

The radical measure has caused both American and foreign tech firms to suspend their business transactions with Huawei to comply with Trump’s order. US internet giant Google became the first and broke a product-sharing agreement with Huawei.

Also on rt.com Fall of empire? German businesses find China a more trustworthy partner than US or Britain

Later, several chipmakers, including Intel, Qualcomm, Xilinx and Broadcom followed suit. US-based Microsoft, British chip designer ARM and telecoms group Vodafone, as well as Japan’s Panasonic, have all cut ties with Huawei.

The blacklisting of Huawei is seen as part of the ongoing trade dispute between China and the US. President Trump has accused Beijing of unfair trading practices and of intellectual property theft, having imposed first tariffs on goods imported from China. Beijing has denied the accusations and has responded with counter-tariffs on American products.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/460742-china-blacklist-firms-harm-business/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Filed Under: Global Business
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