GOP Balks at Taxes to Pay For Jobs Plan The prospects for Obama’s jobs plan grew dimmer as he unveiled the fine print of how it would be paid for—primarily through tax increases that Republicans said would destroy jobs, not create them.
Tax break cuts linked to Obama jobs plan President proposes to limit mortgage deduction. Jack Lew, White House budget director, said the president was proposing to cover the cost of the short-term stimulus for the ailing US economy with $467bn in additional revenues over the next 10 years. Most of the savings – worth about $400bn – would come from limits to the ability of American households earning more than $250,000 per year to deduct items such as mortgage interest and charitable donations from their taxes.
Obama Moots Limits on Tax Breaks for Muni Bonds President Barack Obama proposed curbing the amount of interest from municipal bonds that top earners can exclude from their taxable income, a step that may diminish demand for state and local-government securities.
Congressional Job Approval at 15% These results are based on interviews conducted in a Sept. 8-11 Gallup poll, as President Barack Obama urged Congress to pass his newly announced major jobs plan legislation.
Italian Bond Auction Disappoints Italy paid sharply higher yields than at previous auctions to sell five- to nine-year government bonds, and garnered disappointing demand, selling below the maximum targeted amount.
Italy in Talks With China on Bonds Italy’s Finance Ministry has held talks with China’s sovereign-wealth fund and other Chinese officials in a bid to persuade Beijing to buy large amounts of Italian bonds, a person familiar with the matter said, as Rome searches for ways to meet its financing needs and pull the peninsula out of the euro-zone debt crisis.
Italian Industrial Output Slumps Italian industrial output fell much more than expected in July due to the sharpest contraction of consumer-goods production in more than two years. Industrial output in the euro zone’s third-largest economy fell 0.7% from June on a seasonally adjusted basis. Istat also revised down its June data, saying industrial output actually fell 0.8% that month from May, worse than the disappointing 0.6% drop reported on a preliminary basis last month. As a result, Italy’s industrial production is back at its lowest level since January.
Greece’s Efforts Fail to Calm Investors flooded into the safe arms of German bonds, and European banks dialed back lending to their riskier peers, in a clear sign that fears of a destabilizing collapse in Greece persist despite fresh efforts to shore up its finances.
OPEC Hints at Output Cuts OPEC hinted that some of its members could reduce production as a slowing economy is expected to dent oil demand and Libya resumes exports more rapidly than expected. Libyan oil production should resume within days and could reach one million barrels a day, around two-thirds of pre-war levels, within six months, it said.
India Factory Output Growth Slows In yet another sign that India’s economy is cooling, the government said the country’s industrial output growth slowed more than expected in July to 3.3% from a year earlier.
The Dark Side of Brazil’s Rise Brazil’s boom has downsides. The abundance of cash from overseas investors has helped fund riskier bank loans and fueled a potential real-estate bubble.
BofA to Cut $5 Billion Bank of America will cut $5 billion in annual costs by the end of 2013 and slash 30,000 jobs out of its consumer-oriented businesses, part of an important trimming program.
Nomura to Cut About 5% of Jobs in Europe Fewer than 400 positions will be eliminated globally, with the majority in Europe, one of the people said.
U.K. Inflation Rises The consumer-price index rose 4.5% in the 12 months through August, up from 4.4% in July. In monthly terms, overall consumer prices rose 0.6%. So-called “core inflation”, which strips out volatile food and energy prices, remained steady at 3.1 per cent in August.
China’s Lessons From Mexico and Japan Is China the next Japan, or the next Mexico? Its real-estate bubble and bad loans at banks make it similar to Japan, but its failure to focus on education invites comparisons with Mexico and is a more serious threat.