Obama Corporate Tax Proposal Draws GOP Fire
February 23rd, 2012
in econ_news
Econintersect: The Obama administration has announced a five point corporate tax reform plan that would reduce the top rate from 35% to 28%, 
with lower top rates for certain businesses. The White House claims the proposal would move the U.S. closer to a competitive corporate tax posture compared to the rest of the world. Critics have said that closer is not good enough, but that the top rate should be dropped to 25% which is the average for countries in the OECD (Organization for Economic Co-operation and Development). Some have called for the rates to be cut far below 25%. If the U.S. does not take action the country will be the developed country with the highest corporate income tax rate in the world as Japan has dropped its top rate to 30% effective in April.
ETF Probe Expands
February 23rd, 2012
in econ_news
Econintersect: The CES (Securities and Exchange Commission) is expanding its examination of possible manipulation of ETFs (electronically 
traded funds). Last year the SEC started an investigation of leveraged ETFs that allow investors to take positions that are nominally 2x or 3x a reference index, both positively (long) and negatively (short). The question at that time was whether the frequent trading of these vehicles was contributing to excessive market volatility. At the time a number of knowledgeable investment people were of the opinion that the likelihood that there was much effect when the leveraged products accounted for only 2-3% of all the money invested in all ETFs. (See Tom Lydon review, ETF Trends.) Click on cartoon for larger image.
Mumbai Market Surges, Led by Tata Motors
February 21st, 2012
in econ_news
Econintersect: Not many people have been noticing but the Mumbai (Bombay) BSE Sensex has exploded to the upside in 2012, advancing more 
than 19% since the New Year began and over 21% from the market low on 20 December 2011. The advance has been led by Tata Motors (NYSE:TTM) gain of more than 60% so far in 2012 and more than 80% since late November.
Bloomberg reports that the luxury car market is what is boosting sales and profits for the company that is most famous for the tiny low cost sub sub-compact, the Nano. Jaguar and Land Rover have been racking up big gains in China, Russia and emerging markets in general.
