Key Points
Summary
Recent amendments to President Trump's "big, beautiful bill" have drawn both praise and criticism. The business community has cheered changes that made corporate tax credits permanent and removed a proposed "revenge tax" on multinational firms, viewing them as catalysts for economic growth. However, these alterations significantly raised the bill's cost by over $1 trillion, with permanent tax credits alone escalating from $519 billion in the House version to over $1 trillion in the Senate's, according to the Committee for a Responsible Federal Budget. The removal of the revenge tax added a $600 billion increase over a decade, while other tweaks, like reduced cuts to social programs, contributed an additional $300 billion. Increased borrowing is projected to incur $713 billion in interest costs. President Trump, with his deep business background, took a keen interest in these provisions, which are touted by Republicans and business leaders as providing certainty and fostering innovation. Treasury Secretary Scott Bessent predicted a surge in factory announcements post-passage. Despite the optimism, Democrats criticize the bill's fiscal irresponsibility, with House Minority Leader Hakeem Jeffries condemning corporate giveaways. Passed by a narrow 218-214 House vote, the legislation heads to Trump's desk, but its high cost ensures it remains a contentious issue for future political debates.
Key Points
Summary
Japan has agreed to a $550 billion fund with the US, but only 1% to 2% will be direct investment, with the rest primarily in loans and loan guarantees, as explained by chief negotiator Ryosei Akazawa. This structure, backed by Japanese institutions like JBIC and NEXI, aims to minimize Japan's financial exposure, with potential losses estimated at just tens of billions of yen. Profits from investments will be split 90-10 in favor of the US, a compromise from Japan's initial 50-50 proposal. Additionally, Japan expects to save ¥10 trillion ($68 billion) through lower tariffs, with rates anticipated to drop to 15% on cars and other goods. Akazawa emphasized that the fund isn’t a direct cash transfer to the US and will generate revenue through interest on loans and fees on guarantees. The initiative will also support international firms, such as a Taiwanese semiconductor company in the US. While Japan pushes for swift tariff reductions via executive order, details on implementation and timelines remain unclear, with no joint document signed yet. The deal, seen as a model by the Trump administration, aligns with a similar US-EU agreement involving $600 billion in investments and 15% tariffs. Japan aims to finalize the fund’s rollout during Trump’s term, balancing economic benefits with strategic concessions.
Key Points
Summary
Thai and Cambodian leaders, Phumtham Wechayachai and Hun Manet, are set to meet in Kuala Lumpur on Monday to address the deadliest border conflict between the two nations in over a decade, facilitated by Malaysian Prime Minister Anwar Ibrahim, chair of ASEAN. The talks, prompted by US President Donald Trump’s tariff threats to withhold trade deals unless a ceasefire is reached, follow violent clashes since July 24 that have killed over 30 people and displaced 150,000 civilians. Both the US and China have sent envoys to support peace efforts, with Trump claiming credit for pushing the dialogue forward. Thailand remains skeptical of Cambodia’s commitment, prioritizing sovereignty and civilian safety, while Cambodia appears more open to an unconditional ceasefire. The conflict, rooted in historical border disputes over early 20th-century treaties, has seen heavy artillery and airstrikes, with both sides accusing each other of targeting civilians. Thailand demands a bilateral resolution and troop withdrawal, while economic pressures from potential US tariffs loom large, especially for trade-reliant Thailand. The talks aim to de-escalate tensions and restore peace, though deep-seated mistrust and territorial disagreements pose significant challenges.
Key Points
Summary
Over the past decade, cryptocurrencies like XRP and Bitcoin have outpaced traditional stock markets, with market values soaring from $5 billion to $3.83 trillion by July 24. XRP, developed by Ripple, and Bitcoin have seen remarkable gains of 773% and 426% over the last three years, fueled by President Trump’s election win and pro-crypto policies, alongside the advent of spot crypto ETFs. However, the article warns of potential downturns, predicting declines of 50% or more within two years due to tangible and sentiment-driven challenges. For XRP, limited adoption by financial institutions and competition from systems like SWIFT pose risks, while its $186 billion valuation seems inflated given its role in RippleNet. Bitcoin, despite its accessibility through ETFs and corporate treasury strategies, faces issues with real-world utility, as seen in El Salvador’s failed adoption, and potential supply changes. Additionally, the hype from struggling companies buying Bitcoin may create an unsustainable bubble. Both cryptocurrencies, while currently thriving, are vulnerable to significant corrections as historical crypto winters suggest.
