Posts by Deirdre Hughes

  • Obama's trade deal won't help the economy much: former White House economist

    Deirdre Hughes at Yahoo Finance 20 days ago

    President Obama this week is going to the West Coast to pitch a controversial free trade pact with 12 nations including Japan, Australia and Vietnam. With the Trans Pacific Partnership, the President finds himself aligned with Republicans and divided against many members of his own party who vehemently oppose the trade deal, based on concerns that it will end up costing American jobs, rather than providing a lift to the middle class by boosting U.S. exports, as President Obama asserts.

    In his radio address last week, the President explained why he believes the new trade deals are not just important for the U.S. economy, but for U.S. values as well. “They’re vital to middle class economics – the idea that this country does best when everyone gets their fair shot, everyone does their fair share, and everyone plays by the same set of rules.”

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  • Eric Cantor: Attend your gay friend’s wedding

    Deirdre Hughes at Yahoo Finance 26 days ago

    Republican contenders for the White House are being put to the test this week on what will certainly be one of the most talked-about issues in the 2016 campaign: gay marriage.

    A new Reuters poll finds a majority of Republicans (56%) would show up for a gay friend’s wedding if invited. That compares to 80 percent of Democrats and 70 percent of independents. Overall, 68 percent of Americans said they would attend. 19 percent would not and 13 percent were unsure.

    A separate poll conducted by AP-Gfk finds the country pretty evenly divided on the latest case before the Supreme Court with 50% saying the high court should rule that same-sex marriage should be legal and 48% saying it should not.

    The Republican candidates and prospective candidates vary in their response to the question: Would you attend your gay friend’s wedding.

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  • White House to Yahoo Finance: ‘We’ve done our part’ on corporate tax reform

    Deirdre Hughes at Yahoo Finance 27 days ago

    There is a pair of issues on which both Republicans and Democrats agree in theory: corporate tax reform and infrastructure investment. But despite that tacit agreement, it seems unlikely that there will be any meaningful movement on either one in the near future. Why? Because no one actually believes corporate America will go for the proposed reforms, and that means America’s crumbling infrastructure likely will have to wait for another source of funding.

    The United States has the highest corporate tax among the OECD countries at 35%. (Ireland is the lowest at 12.5%.) President Obama has proposed a one-time lower rate for any U.S. multinational that agrees to repatriate profits currently held overseas and therefore not subject to U.S. corporate income tax.

    The President’s proposal would invest those repatriated funds in rebuilding infrastructure. In general terms, Republicans are largely supportive of infrastructure investment, but likely would find some disagreement on the finer points of how to fund it.

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  • Budget showdown looms; Pres. Obama draws ‘two clear, red lines’

    Deirdre Hughes at Yahoo Finance 27 days ago

    Remember the government shutdown? Seems like yesterday, right? Well, before you go wandering wistfully down memory lane, longing for the days of Senate Majority Leader Harry Reid and House Speaker John Boehner holding court, another government shutdown could be in the offing unless Congress manages to do something that has come to feel like an impossibility: compromise.

    This week will be the first test of just what kind of chance there is for any kind of meaningful compromise along the lines of the Murray-Ryan deal that saved the day last time around. The House of Representatives is expected to take up the budget resolution on Thursday. That resolution appears to have the support of the Republican majorities in both chambers. The President doesn’t have the option to veto the resolution if it does pass, but that doesn’t mean the debate is over. On the contrary, the real battles will begin once legislation is proposed that would actually implement budgets and budget cuts.

    President Obama has vowed not to accept any budget that requires automatic cuts like the sequestration cuts that took effect in 2013.

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  • 'All bets are off' for the market until these 3 sectors rally: Strategist

    Deirdre Hughes at Yahoo Finance 7 mths ago

    Stocks tanked Wedneday morning, with the Dow (^DJI) opening down 350 points. The Nasdaq (^IXIC) and S&P 500 (^GSPC) also plunged out of the gate. The selling was spurred by renewed concerns about Europe and reports of another case of Ebola in the United States.

    Yahoo Finance Editor-in-Chief Aaron Task spoke with David Nelson, Chief Strategist at Belpointe Asset Management about what it’s going to take to reverse the downtrend.

    Nelson says that in order to have confidence that we’ve seen the bottom in the market, he needs to see a shift in leadership.

    So which sectors will revive the bull market?

    “We need to see tech, financials and industrials lead the way out of this," he says. "Until that happens, then really, all bets are off.”

    Early indications Wendesday suggest others are following a simliar script.

  • Rep. Tim Ryan on Ebola: U.S. cut funding for CDC, NIH

    Deirdre Hughes at Yahoo Finance 7 mths ago

    A second healthcare worker in Texas has tested positive for Ebola, officials said Wednesday. The head of the Centers for Disease Control late yesterday admitted the CDC "could have sent a more robust hospital infection control team and been more hands on with the hospital from day one about how this should be managed.”

    Yahoo Finance’s Bianna Golodryga spoke with Congressman Tim Ryan, Democrat of Ohio and a member of the powerful House Appropriations and Budget Committees, about the Ebola outbreak and the U.S. response. Congressman Ryan says the United States has been "disinvesting" in critical areas, including healthcare and emergency preparedness for the last decade.

    “We’ve been disinvesting in the NIH in the last ten years and the CDC for the last ten years. CDC’s been cut by $500 million in the last few years. NIH has been cut by $400 million in the last few years. And CDC’s money for preparedness is down $1 billion from 2003. So, now all of a sudden we have an issue. You know? We’ve had bridges collapse; we’re sicker than we used to be.”

    For Congressman Ryan, that balance could be example for the federal government to follow.

  • Peter Thiel on why Apple is a ‘good monopoly’

    Deirdre Hughes at Yahoo Finance 8 mths ago

    Entrepreneur and author of the new book, “Zero to One: Notes on Startups, or how to Build the Future”, Peter Thiel, makes a strong case against the popular concept of free market capitalism, but he also wouldn’t invest in China due in part to the Communist party’s control and the opaque business environment.

    So what does he favor? Monopolies. But only “good monopolies.”

    In his book, Thiel explains what he defines as “zero to 1” this way:

                                  “Doing what we already know takes us from 1 to n, adding

                                   more of something familiar. But every time we create something

    Good Monopolies

    Don’t invest in China

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  • Fed and TWTR Overvaluation, Evidence of Looming Market Crash: Stockman

    Deirdre Hughes at Yahoo Finance 8 mths ago

    The Federal Reserve Wednesday reassured investors that it will hold interest rates near zero for a “considerable time” after it ends the bond-buying program known as quantitative easing in October. In response, the Dow Jones Industrial Average (^DJI) closed at a new record high.

    Former Director of the Office of Management and Budget and author of the book, The Great Deformation, David Stockman, has significant concerns about that very policy.

    “I’m worried… that we’ve got the greatest bubble created by a central bank in human history,” he told Yahoo Finance.

     

    Behind the madness

    In an interview with Yahoo Finance, Stockman blamed Fed policy for creating that madness.

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  • Janet Yellen’s dilemma: No way out

    Deirdre Hughes at Yahoo Finance 8 mths ago

    The world will be watching the latest announcement from the Federal Reserve a little more closely this time around. The added interest is due in part to the internal struggle going on behind the scenes at the Fed between doves like Chair Janet Yellen and her more hawkish colleagues, including Philadelphia Fed president Charles Plosser, who dissented at the last meeting.

    If noted economist James Galbraith, professor at The University of Texas at Austin, is correct, there is good reason for the heightened interest and drama surrounding Wednesday’s announcement and press conference. In Professor Galbraith’s view, the Fed may have painted itself into a corner.

    “The Fed has a dilemma. It, of course, would like to come off of its present policy stance, but people are accustomed to it and if interest rates go up, you get an inverted yield curve with bad consequences.”

    Galbraith points to the global market reaction to comments from Yellen’s predecessor at the Fed, Ben Bernanke, when he signaled in June 2013 that the Fed would begin to wind down its asset-purchase program eventually.

  • Warning: War with ISIS will spook financial markets

    Deirdre Hughes at Yahoo Finance 8 mths ago

    The drumbeat for a U.S.-led war with ISIS is growing louder, and the coalition of countries vowing to destroy the group is growing in number after British aid worker David Haines was beheaded, the latest in a series of brutal murders. Haines’ beheading follows the murders of two American journalists, James Foley and Steven Sotloff.

    British Prime Minister David Cameron said his country will do whatever is necessary to combat the Islamic State.

    "We have to confront this menace. Step by step, we must drive back, dismantle and ultimately destroy ISIL and what it stands for," said Mr. Cameron. "As this strategy intensifies, we are ready to take whatever steps are necessary to deal with this threat and keep our country safe."

    U.S. officials also took to the Sunday talk shows over the weekend to make the case for military action against ISIS.

    Secretary of State John Kerry went on CBS’ Face the Nation and emphasized the coalition of countries prepared to strike Iraq and Syria.

    Market reaction to escalation

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