Posts by Bernice Napach
- Bernice Napach at Yahoo Finance8 hrs ago
Move over immigration reform, minimum wage rate hike and climate change. Corporate tax avoidance is the latest hot issue on Capitol Hill which also has no prayer for compromise and legislation.
This morning Senator Dick Durbin (D-Ill) introduced a bill to curb the latest craze to limit corporate taxes: inversion. By using corporate inversion, a U.S. company will merge with a company based overseas where tax rates are lower. The foreign company is then considered the owner of U.S. operations, so the company is taxed at the lower rate. Nothing else changes in terms of corporate operations.
Senator Durbin calls inversion a "monetary calculation ... a decision to desert America while still expecting the same benefits as truly American companies."
- Bernice Napach at Yahoo Finance1 day ago
A leading mutual fund manager sees an opportunity in transportation stocks right now.
Craig Hodges is president of HodgesCapital Management, and a portfolio manager of the Hodges Small Cap fund (HDPSX), which has outperformed all but one other general U.S. domestic stock fund over the past five years.
His funds have profited investing in airlines and other transportation stocks. Among his fund's top 10 holdings are American Airlines (AAL) and Spirit Airlines (SAVE), which releases earnings before Tuesday's open.
- Bernice Napach at Yahoo Finance6 days ago
Russian government policies helped create many of the country's billionaires and now they are the reason many of those billionaires are losing billions of dollars of wealth.
These oligarchs got rich when the Russian government awarded them control of newly-privatized, state-owned enterprises. But sanctions imposed by the U.S. and European Union to protest Russia's incursion into Ukraine have erased some of that wealth.
As of Monday, the 19 richest Russians lost $14.5 billion so far this year, while the 64 richest Americans gained $56.5 billion, according to Bloomberg Billionaires, which tracks the net worth of the world's richest people.
"These sanctions are really hitting these guys," says Rob LaFranco, an editor at Bloomberg Billionaires. "They're losing a lot of money every day and it's continuing to go down."
- Bernice Napach at Yahoo Finance11 days ago
Since China joined the World Trade Organization in 2001, the U.S. alone has lost close to 3 million jobs, according to the AFL-CIO and Economic Policy Institute. That's because American manufacturers can't compete with cheaper Chinese imports, and there are a lot more of them after China joined the WTO. So many U.S. companies laid off workers and closed factories.
John Bassett III, a third-generation furniture factory owner in Virginia, refused to do that. He decided instead to take on the Chinese.
"He's absolutely relentless, “says Beth Macy, author of F actory Man: How One Furniture Maker Battled Offshoring, Stayed Local -- and Helped Save an American Town .
Bassett traveled from the foothills of the Blue Ridge Mountains to northern China to visit a factory that made knockoffs of the furniture his factory made. Bassett pretended to be interested in doing business with the Chinese manufacturer, who was willing to supply Bassett with furniture provided he closed his own factory.
- Bernice Napach at Yahoo Finance12 days ago
Investors typically want to buy low and sell high to maximize profits. But, according to New York Times economics correspondent Neil Irwin, that's difficult to do now in what he calls the "everything boom" economy.
"Around the world, nearly every asset class is expensive by historical standards," writes Irwin in a recent New York Times column. "Stocks and bonds; emerging markets and advanced economies; urban office towers and Iowa farmland ... [all] trading at prices that are high by historical standards relative to fundamentals." The result, according to Irwin is "relatively low returns for investors."
Irwin tells Yahoo Finance in the video above that two basic trends are driving up asset prices and driving down investment returns. He says one factor is the very accommodative policies of the world's central banks. "They have been printing money like it's nobody's business for more than 5 years.”
- Bernice Napach at Yahoo Finance14 days ago
Back-to-school season is like Christmas for Staples (SPLS)so it's no surprise that the office supply retailer is officially starting its back-to-school season today, July 15.
Those sales are a big contributor to Staples earnings from now through mid-September, says Demos Parneros, president of Staples' North American stores and online business. He rang the opening bell at the Nasdaq, where Staples stock trades, to publicize its offerings of backpacks, headphones binders and it discount programs.
Its discount programs include:
These offerings respond in part to the findings of a recent Staples survey asking parents about back-to-school shopping. It found that 41% of parents are very likely to buy items if there's a guaranteed low price. It also found that everyday low prices and weekly discount deals are especially attractive when you consider that parents of teens, for example, spend an average of $133 for back-to-school supplies.
- Bernice Napach at Yahoo Finance15 days ago
Reid Hoffman, the founder and chairman of LinkedIn(LNKD), the professional networking site, is a big proponent of trust--between managers and employees and between his company and its customers. So naturally he's not a fan of the government's NSA surveillance program.
He tells Yahoo Finance's Jeff Macke in the video above that LinkedIn pushes back when the government accesses a member's files without disclosing that access publicly. Hoffman says the company tells the government of its obligation to be "absolutely transparent" with customers about "how the data is being used." And it requests that the government allow it to "disclose as much about these requests as we can."
LinkedIn is in a better position than other tech companies when it comes to government surveillance because, says Hoffman, "most of the information people put on LinkedIn is stuff they actually want to be public... They want to be able to be found for a consulting opportunity, a job or expertise."
- Bernice Napach at Yahoo Finance18 days ago
In America the tracking location function in mobile phones is either considered a convenience or an invasion of privacy. In China, it's a "national security concern." That's what China's Central Television called the location function in Apple's (AAPL) iPhone iOS 7 operating system.
CCTV cited a research report concluding that those with access to iOS 7 could learn Chinese state secrets.
Apple had not yet responded to these comments.
China has already banned Microsoft's(MSFT) latest Windows 8 operating system from government computers.
- Bernice Napach at Yahoo Finance18 days ago
The U.S. economy has recovered the 8.7 million jobs lost during the Great Recession and its unemployment rate is now the lowest it's been in almost six years. But David Cay Johnston, a Pulitzer prize-winning reporter, author and visiting lecturer at Syracuse University's law school and business school, says the economy would be a lot stronger if not for the Bush tax cuts.
Americans have lost $6.6 trillion from 2001, when the tax cuts first took effect, through 2012, according to Johnston. That's more than one-third of the country's annual GDP.
"When you look at the long-term income in this country and adjust for inflation and population growth, we're not getting better off," says Johnston. He calculated those losses by comparing average incomes in U.S. tax returns from 2000 tax returns to every year through 2012, and published his findings in a recent column on Al Jazeera America.
- Bernice Napach at Yahoo Finance19 days ago
It seems as if every day another U.S. company is announcing plans to merge with a foreign company in order to save millions of dollars in taxes. That's not really the case, of course, but a growing number of companies are doing it, even if they don’t always admit the reason.
Just this week Salix Pharmaceuticals (SLXP)of North Carolina announced it was acquiring the Irish arm of Italian drug company Cosmo Technologies and U.S. drugmaker AbbVie(ABBV)raised its bid to buy Shire (SHPG), another Irish drugmaker, which had previously rejected its offer.
These follow previous announcements of mergers between medical device maker Medtronic and Covidien, also based in Ireland, and between fruit company Chiquita Brands (CQB)and Irish food distributor Fyffes (FFY.L). Walgreen(WAG) is considering a similar move.