President Trump is eager to claim credit for Apple’s moves, but it’s a bit more complicated.

THE TICKER

President Trump took a bold announcement by Apple on Wednesday and made an even bolder claim about it. 

The electronics giant touted a massive new investment in the U.S. economy, pledging to contribute $350 billion to it over the next five years, with $30 billion of that sum coming in the form of capital spending, including for a new campus. And the tech company said it will create 20,000 new jobs in the United States. The president seized on the news as validation of the Republican tax package:

The issue: It’s not clear how much the new tax regime contributed to Apple’s decision, if at all. 

In a 1,093-word statement detailing the move, the company noted it is handing the Treasury a $38 billion one-time payment. That meets a requirement under the new law that corporations pay previously deferred taxes on their foreign profits. The law set up that provision as a sort of compromise: Companies are being forced to fork over a portion of those overseas stashes to Uncle Sam, but they are being charged a deeply discounted rate (15.5 percent for cash and 8 percent for less liquid assets.) Apple says it is counting the $38 billion it’s paying toward the $350 billion total it advertised Wednesday.

The law gives companies the flexibility to spread what they owe under the levy over five years. But the payment is mandatory — and not, as Trump suggested in his tweet, itself a vote of confidence in the brightening business climate at home.

Beyond that, the company doesn’t chalk up anything else in its announcement to the tax law. The Wall Street Journal’s Tripp Mickle does a careful job parsing the company’s statement: 

The company previously said it planned $16 billion in capital expenditures world-wide in the fiscal year that ends this September, up from $14.9 billion the previous year. However, Apple doesn’t break out its spending in the U.S., making it difficult to gauge how much of the $30 billion over five years it announced Wednesday is new.

Toni Sacconaghi, an analyst with Sanford C. Bernstein & Co., said Apple’s plans are in line with Trump administration goals, but that it isn’t clear how much of the commitments are new. And he said the company could deliver on those commitments with existing cash flow — without needing to tap cash holdings.

“It’s a nice number and puts a foot forward in line with where the administration wants to go with adding jobs and building in the U.S.,” he said. But he added, “It’s not clear these investments were impacted in any way by tax reform.”

Separately, Bloomberg News’s Mark Gurman reported Wednesday, the company is awarding most of its employees worldwide a $2,500 bonus in stock grants in the months ahead. For that, beneficiaries can thank the tax cuts. 

But the announcement of Apple’s multibillion-dollar investments carried significantly more weight for Trump and other Republicans eager to find signs the tax package is supplying a big boost of momentum to broader economic growth. Another entrant in the parade of companies handing out bonuses may be nice. What the GOP would prefer, however, is evidence that corporate giants are plowing their windfalls into the kind of spending that will trickle down to workers. 

“Certainly higher wages and bonuses are good news,” Tax Foundation senior analyst Scott Greenberg says. “But if the tax bill is going to have a large economic effect, it’s likely going to take some time to show up, because will take some time for companies to respond to the incentives offered by the new tax provisions.” And, he cautioned, “it’s difficult to separate causality from companies looking for gestures of public goodwill.”

Apple isn’t likely to fact-check Trump’s claims.

The announcement appeared designed to win the company some good-citizen points, with Apple CEO Tim Cook declaring in a statement that his company “could only have happened in America, and we are proud to build on our long history of support for the US economy.”

Recall that the tech titan came in for special abuse from Trump during the 2016 campaign. The candidate promised to make Apple “start building their damn computers and things in this country instead of in other countries,” at one point urged a boycott of Apple products, and said he would “come down so hard” on Cook that “his head would be spinning all of the way back to Silicon Valley.”

But Apple isn’t the only corporate giant that has been coy about pledging to use its tax gains for investments and wage hikes rather than, say, stock buybacks and dividend payments.

A CNBC survey of the 100 biggest companies by market cap found only nine with “specific plans to use some of the money saved from the corporate tax cuts to boost worker pay or invest in facilities or charitable causes.”

In other news, the sun rose today. Can we say for sure it would have but for the corporate tax cut?

MARKET MOVERS

— DOW 26,000. CNBC’s Fred Imbert: “Stocks traded higher on Wednesday following the release of stronger-than-expected quarterly results from some of the biggest U.S. companies. The Dow Jones industrial average rose 322.79 points, closing above 26,000 for the first time. The index first broke above the milestone mark on Tuesday. The S&P 500 gained 0.9 percent to finish at 2,802.56, with staples and tech rising more than 1 percent. The index also posted a record close.Tech stocks got a boost from Apple, which erased losses after announcing plans to repatriate billions in overseas cash. The stock closed 1.7 percent higher. The Nasdaq composite rose 1 percent to finish at 7,298.28, a record.”

It broke the record in record time. CNN Money’s Matt Egan: “The latest rush to buy stocks left the average up almost 8,000 points since… Trump’s 2016 election.The rally on Wednesday gave the Dow its best percentage gain since November. And it showed that the upward trend remains intact despite a big reversal the day before… But the velocity of the rally is raising eyebrows. It took just seven trading days for the Dow to climb from 25,000 to 26,000. While that is just a 4% advance, it’s part of a broader surge that has carried the Dow 42% during the Trump era. And the market rise has come with virtually no breaks.”

U.S. Industrial Production Rose 0.9% in December

U.S. industrial production rose sharply in December, boosted by gains in utilities output as cold weather swept across the nation and increased demand for heating.

WSJ

MONEY ON THE HILL

Shutdown showdown. The Post’s Mike DeBonis, Ed O’Keefe, and Erica Werner: “Bitter divisions in both parties threatened Wednesday to derail Congress’s effort to keep the federal government fully operating past the end of the week. The shutdown threat emerged on two fronts: Republican defense hawks in the House said a short-term spending plan the party introduced late Tuesday did not devote enough money to the military. Meanwhile, Democrats, whose support would be critical for passage in the Senate, began lining up in opposition amid pressure from immigration activists to use the budget talks as leverage to legalize many young immigrants known as ‘dreamers.’ By Wednesday evening, the short-term bill was on the cusp of failure…

House Republicans unveiled a bill Tuesday that would extend funding for four weeks, allowing time for further negotiations toward deals on long-term spending and immigration. To entice Democrats, GOP leaders attached a six-year extension of the popular Children’s Health Insurance Program, as well as the delay of two unpopular health-care taxes. But few, if any, Democrats have been swayed by the overture.”

Tax bill fails to crack majority. Politico’s Toby Eckert: “Support for the Republican tax plan has ticked up slightly since [Trump] signed it into law, but it still hasn’t drawn the backing of a majority of voters, according to a new POLITICO/Morning Consult poll.

The GOP’s top selling point for the plan recently — a spate of employee bonuses and wage increases — was a wash in the poll. The tracking poll, conducted Jan. 11-16, found that a 45 percent plurality of voters backed the plan based on what they knew about it, up from 42 percent in a similar poll before the legislation was enacted on Dec. 22. Opposition in the new poll came in at 34 percent, down from 39 percent. Twenty percent of respondents were undecided, up from 18 percent. After respondents were told about the major provisions of the bill, support rose to 47 percent, opposition remained at 34 percent.”

ICI reverses itself on fund rules. Politico’s Zachary Warmbrodt: “A prominent investment industry group is lobbying to keep in place major money market mutual fund regulations that it resisted only a few years ago. The issue will come to a head this week as the House Financial Services Committee votes on bipartisan legislation that would roll back regulations intended to prevent the kind of investor runs on money market funds that exacerbated the 2008 financial crisis. The Investment Company Institute, which represents money managers, did not support many of the safeguards the SEC enacted in 2014 but told senior lawmakers in a letter Friday that it now opposes the House bill that would defang the rules.”

GOP Senator to Block Two Trump Nominees Over Trade Concerns

A GOP senator with concerns about President Trump’s trade policy said Wednesday he would block two of the president’s nominees, saying the Trump administration hasn’t been responsive to his concerns on the issue.

WSJ

TRUMP TRACKER

Trump threatens NAFTA. Reuters’s Jeff Mason and David Lawder: “Trump on Wednesday said that terminating the North American Free Trade Agreement would result in the ‘best deal’ to revamp the 24-year-old trade pact with Canada and Mexico in favor of U.S. interests. Lawmakers as well as agricultural and industrial groups have warned Trump not to quit NAFTA, but he said that may be the outcome.

‘We’re renegotiating NAFTA now. We’ll see what happens. I may terminate NAFTA,’ Trump said in an interview with Reuters. ‘A lot of people are going to be unhappy if I terminate NAFTA. A lot of people don’t realize how good it would be to terminate NAFTA because the way you’re going to make the best deal is to terminate NAFTA. But people would like to see me not do that,’ he said. Trump’s comments come less than a week before trade negotiators from the United States, Canada and Mexico meet in Montreal for the sixth of seven scheduled rounds of negotiations to update NAFTA.”

Considers big “fine” against China. More from Reuters: “Trump and his economic adviser Gary Cohn said China had forced U.S. companies to transfer their intellectual property to China as a cost of doing business there. The United States has started a trade investigation into the issue, and Cohn said the United States Trade Representative would be making recommendations about it soon. ‘We have a very big intellectual property potential fine going, which is going to come out soon,’ Trump said in the interview. While Trump did not specify what he meant by a ‘fine’ against China, the 1974 trade law that authorized an investigation into China’s alleged theft of U.S. intellectual property allows him to impose retaliatory tariffs on Chinese goods or other trade sanctions until China changes its policies.”

Fed overhaul hits snags. The Post’s Heather Long: “In less than three weeks, the Federal Reserve, which is widely credited with playing a major role in leading the United States out of the Great Recession, will be under new leadership. Current Fed chair Janet L. Yellen is leaving, and Jerome Powell is President Trump’s nominee to take her place. But Trump’s efforts to remake the Federal Reserve will soon face key tests. The first hurdle will be the Senate. All of Trump’s appointees to the Fed require Senate approval, which has been slow in coming. Trump nominated Powell on Nov. 2, but the Senate didn’t act on his appointment before the end of the year, forcing the president to renominate Powell in 2018… Trump has made his priorities clear for a Powell-led Fed: He wants the stock market to keep soaring and the economy to grow faster. To make that happen, Trump would like interest rates to stay low and fewer restrictions on Wall Street banks. But Powell has been clear to stress the Fed’s independence — from Congress and the White House — in public appearances since his nomination.”

Powell says he’ll hold Deutsche Banke accountable. Bloomberg’s Jesse Hamilton: “Donald Trump’s pick to run the Federal Reserve, responding to a key lawmaker’s concerns over the president’s ties to Deutsche Bank AG, said the agency will hold the German lender to the same standards as the rest of the industry. Fed Governor Jerome Powell answered a letter from Senate Banking Committee member Chris Van Hollen ahead of the panel’s vote on his nomination to become chairman, telling the Maryland Democrat that he’s committed to supervising banks “in an independent manner.” Powell’s nomination was advanced by the committee on Wednesday, with Van Hollen voting in favor.”

Replacing Dudley. Reuters’s Jonathan Spicer: “Unions and groups advocating for retirees, teachers, housing, and workers’ benefits are among those visiting the ornate conference rooms of the Federal Reserve Bank of New York to lobby for a less conventional candidate to serve as its next president. New York Fed directors leading the search for a successor to chief William Dudley, seen as the second most influential policymaker at the U.S. central bank, invited the guests to last week’s meeting to seek their advice. According to attendees and others familiar with the search, the directors are close to a “long list” of candidates and appear set to begin formal interviews within weeks. Until then, directors Sara Horowitz and Glenn Hutchins are taking steps intended to head off any criticisms of opacity and lack of diversity that, in recent years, have stung presidential searches at other district Fed banks. The afternoon meeting with 11 advocacy groups last week marked what one attendee called an unprecedented gesture of public outreach.”

RUSSIA WATCH: 

Bannon agrees to Mueller interview. The Post’s Roz Helderman and Karoun Demirjian: “Former top White House adviser and Trump campaign strategist Stephen K. Bannon has agreed to an interview for special counsel Robert S. Mueller III’s Russia investigation likely to take place later this month, but his lawyer is pushing back against House investigators’ demands for an audience Thursday afternoon, arguing there is ‘no conceivable way’ Bannon will be ready for an interview on the panel’s terms. House Intelligence Committee members K. Michael Conaway (R-Tex.), who is leading the Russia investigation, and Adam B. Schiff (D-Calif.), the panel’s ranking member, sent a letter Wednesday to Bannon’s lawyer, William Burck, insisting that Bannon return to Capitol Hill on Thursday at 2 p.m. to comply with a subpoena they issued Tuesday after Bannon refused to answer questions, citing orders from the White House.”

Probe could collide with midterms. Politico’s Darren Sameulsohn: “Robert Mueller’s Russia probe isn’t ending any time soon, and that’s bad news for President Donald Trump and congressional Republicans already bracing for a possible 2018 Democratic midterm wave. While many Republicans insist the Trump-Russia saga is overblown, they worry headlines about federal indictments, high profile trials—and a potential blockbuster meeting between Mueller and Trump himself—could obscure their positive message ahead of November elections and threaten their House and Senate majorities. In an ominous development for Republicans, a federal judge overseeing the upcoming trial of former Trump campaign manager Paul Manafort and his deputy Rick Gates rejected Mueller’s request to begin in May and instead outlined a scheduled start as soon as September or October — peak election season.”

Wonkblog

Eric Trump’s 401(k) is up by 35 percent, but half of American families don’t even have one

“I didn’t think retirement was possible, and now it is,” he told Hannity.

Christopher Ingraham

POCKET CHANGE

Goldman’s losing money. NYT’s Emily Flitter: “Goldman Sachs used to seem invincible. In the fourth quarter, it lost money. The Wall Street firm on Wednesday reported its first quarterly loss since 2011. It was the result of a one-time $4.4 billion charge stemming from the new tax law. But even ignoring that unusual event, Goldman’s weak core results showed how far the firm has fallen. The bank’s per-share earnings and revenue were both higher compared with a year earlier without the tax charge. But the results announced on Wednesday also revealed a decline in Goldman’s trading might, which has been drained by a potent combination of placid markets and quiet clients. Revenue in its business of buying and selling bonds, commodities and currencies — historically an engine of Goldman’s results — sank to $1 billion in the fourth quarter, half of what it was during the same period in 2016. For the year, net revenue in that business fell 30 percent. The drop sent Goldman’s shares down 3 percent on Wednesday.”

CRYPTO BITS: 

Treasury sees a threat. Bloomberg’s Saleha Mohsin: “The U.S. Treasury views virtual currencies such as Bitcoin as an “evolving threat” and is examining dealers to make sure they aren’t being used to finance illegal activities, the undersecretary for terrorism and financial intelligence said. Treasury is working with the Internal Revenue Service examiners to review 100 registered digital currency providers as well as others that have not registered, Sigal Mandelker said in prepared testimony to the Senate Banking Committee on Wednesday. The department is also working with the Justice Department to pursue money laundering cases.”

Bitcoin falls below $10,000. CNN Money’s Nathaniel Meyersohn: “Bitcoin keeps tumbling. The price of the volatile digital currency briefly dipped below $10,000 around 7 a.m. ET on Wednesday, its lowest level since late November, according to data from CoinDesk.com. Bitcoin has dropped nearly 30% this week and has lost almost half of its $19,343 peak value on December 16. Bitcoin approached its record as it launched on futures exchanges in the United States. But it has since fallen sharply. Other popular cryptocurrencies ethereum and ripple also have posted double-digit losses. One virtual currency exchange, Bitconnect, dived 93% late Monday. It’s unclear why bitcoin has had a rough week. Cryptocurrency is a murky market with frequent swings.”

Ripple founder loses $44 billion. CNBC’s Evelyn Cheng: “The digital currency plunge has wiped billions from the paper fortune of a cryptocurrency billionaire in just a few weeks. Ripple’s XRP coin has fallen 74 percent from an all-time high of $3.84 hit on Jan. 4, erasing $44 billion from the holdings of Chris Larsen, co-founder and executive chairman of Ripple. With XRP trading near $1 Wednesday, Larsen now holds the equivalent of just $15.8 billion, according to CNBC calculations using figures from Forbes. Citing sources at Ripple, Forbes said earlier this month that Larsen has 5.19 billion of XRP and a 17 percent stake in the start-up. Ripple holds 61.3 billion of the 100 billion XRP coins in existence. At XRP’s peak on Jan. 4, Larsen was worth $59.9 billion. That made him one of the five richest people in the U.S. and wealthier than Google’s founders, based on Forbes’ rich list.”

Stock market endangered? CNBC’s Stephanie Landsman: “A sustained sell-off in the cryptocurrency market will hit the stock market where it hurts, one major Wall Street firm warns. It’s a scenario investors are underestimating, according to Wells Fargo Securities’ Christopher Harvey. ‘We see a lot of froth in that market. If and when it comes out, it will spill over to equities,’ the firm’s head of equity strategy said Tuesday… ‘I don’t think people are really ready for that.'”

Goldman’s No. 2 Allegedly Swindled Out of $1.2 Million of Wine by Assistant

A former personal assistant to Goldman Sachs Group Inc. Co-President David Solomon faces federal charges that he stole more than $1.2 million of rare wine from his boss.

Bloomberg

BlackRock Lets Its Hair Down by Offering Unlimited Time Off

BlackRock Inc., taking a page from Silicon Valley where ping-pong tables and on-site gyms are common perks, is offering unlimited time off.

Bloomberg

THE REGULATORS

Fannie, Freddie regulator: Take them private. Bloomberg’s Joe Light: “Fannie Mae and Freddie Mac’s regulator is throwing its voice into the debate about what to do with the two companies at the center of the U.S. mortgage system. In a proposal obtained by Bloomberg News, Federal Housing Finance Agency Director Mel Watt wrote that he and agency staff believe the mortgage market should be supported by shareholder-owned utilities with regulated rates of return and an explicit government guarantee of mortgage bonds. Watt sent the document, titled ‘Federal Housing Finance Agency Perspectives on Housing Finance Reform’ along with a letter dated Tuesday to Senate Banking Chairman Michael Crapo, an Idaho Republican, and Senator Sherrod Brown of Ohio, the panel’s top Democrat. By sharing the perspectives now, ‘we seek to provide our views independently and transparently to those who have requested them while continuing to provide technical assistance to the committee and its members on other proposals that may be introduced,’ Watt wrote.”

Mulvaney moves to overhaul CFPB. LA Times’s Jim Puzzanghera: “On Wednesday, Mulvaney announced he was launching a review of the entire operation of the consumer watchdog agency created in the wake of the 2008 financial crisis. The bureau has provided Americans with billions of dollars in refunds and debt relief, often at banks’ expense. Republicans and many financial firms have complained that it has been too aggressive… The bureau said it would formally request public input about whether it is ‘fulfilling its proper and appropriate functions to best protect consumers.’ It will seek comment on its enforcement of consumer protection laws, drafting of regulations, oversight of financial firms, monitoring of the marketplace and public education. The first function to be examined: how the bureau demands information from financial firms during investigations.”

Asks financial firms for complaints. The Hill’s Sylvan Lane: The CFPB “is asking the firms its regulates to submit complaints about the agency’s core actions. The CFPB announced Wednesday that the agency will ask ‘for evidence to ensure the bureau is fulfilling its proper and appropriate functions to best protect consumers.’ The request is the latest step forward in acting Director Mick Mulvaney’s effort to draw back the bureau’s aggressive regulatory and enforcement actions. Mulvaney said in a Wednesday statement that it’s ‘natural for the Bureau to critically examine its policies and practices to ensure they align with the Bureau’s statutory mandate.'”

Cordray blasts. More from The Hill: “The former director of the… CFPB blasted his successor in a series of tweets Wednesday for attempting to unwind the agency’s rule on payday lending. Richard Cordray, the bureau’s first director, panned the CFPB’s plans as ‘truly shameful action by the interim pseudo-leaders’ of the bureau.” … ‘Let’s see the case be made, with full debate, on whether the zealots and toadies can justify repealing a rule to protect consumers against extortionate payday loans,’ Cordray continued.”

Hoenig criticizes banking bill. Reuters’s Pete Schroeder: “A top official at a leading U.S. bank regulator is airing concerns about a Senate bill that would ease banking rules, saying parts of it could “significantly weaken” critical protections. Thomas Hoenig, the vice chair of the Federal Deposit Insurance Corporation, warned lawmakers that efforts to ease new rules around leverage and proprietary trading could encourage banks to take on excessive amounts of risk, and put the stability of the financial system at risk. Hoenig said he was broadly supportive of the bill primarily aimed at easing rules for smaller banks, crafted by Republicans and moderate Democrats on the Senate Banking Committee, but has concerns about a pair of key sections. In particular, Hoenig warned Congress’s attempts to relax burdens around the Volcker Rule and the supplementary leverage ratio would do more harm than good.”

SCOTUS considers overtime rule. Washington Examiner’s Sean Higgins: “Looking under the hood and figuring out what is wrong is a popular cliche, but on Wednesday, the Supreme Court examined whether the workers who actually do that should be guaranteed overtime pay. The justices heard oral arguments in Encino Motorcars v. Navarro, a case involving whether the Fair Labor Standards Act’s overtime rules extend to “service advisers” at auto dealerships. It is the second time it has heard the case. Service advisers are the dealership employees who tell customers what repairs or other work their cars need. Congress exempted them from the overtime regulation in 1966, but in 2011, the Obama administration changed the rule and said service advisers should be able to claim overtime pay.”

New late trading method gets SEC ok. Bloomberg’s Annie Massa: “Cboe Global Markets Inc. got regulators’ permission to challenge its chief rivals in U.S. equities, the New York Stock Exchange and Nasdaq Stock Market, during their crucial end-of-day auctions. The U.S. Securities and Exchange Commission will let the company begin Cboe Market Close, which the company says is a lower-cost way to carry out certain closing trades that may otherwise be completed at markets owned by NYSE Group and Nasdaq Inc. NYSE and Nasdaq had argued against approval, saying Cboe’s offering could tarnish the critical role played by auctions that set closing levels for thousands of U.S. stocks. NYSE and Nasdaq both stand to lose volume from any mechanism threatening their closing auctions. Cboe countered that their concerns were overblown, since some brokers already provide a similar function for customers. The SEC came down in favor of Cboe, according to a filing Wednesday.”

CHART TOPPER

From Axios’s Chris Canipe and Steve LeVine: “Manufacturing jobs are up sharply from the recession:”

DAYBOOK

Today

  • The American Enterprise Institute holds an event on “New thinking about poverty and economic mobility.”
  • The Cato Institute Policy Perspectives 2018 hosts a discussion on “A Fiscal Rule to Tame Federal Debt?”

Coming Up

  • The SEC-NYU Dialogue on Securities Markets – Shareholder Engagement will be held in New York on Friday. 

THE FUNNIES

From The Post’s Tom Toles: 

BULL SESSION

Sen. Lindsey Graham tells lawmakers: “Stop the s-show and grow up:” 

Here’s an ongoing list of White House staff, Cabinet members, and federal appointees who quit or were fired under Trump:

Here’s how tech companies are using algorithms to prevent extremist content:

Stephen Colbert talks about how “Fire and Fury” author Michael Wolff got access to the White House: 

Apple to Pay $38 Billion in Taxes on Offshore Cash: DealBook Briefing:

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Good Wednesday. Here’s what we’re watching:

• Apple will pay $38 billion in repatriation tax.

• Could antitrust law fell the tech giants?

•Bank of America reported $2.4 billion in fourth-quarter profit, as well as a $2.9 billion charge tied to the new tax law.

• Goldman Sachs reported a $1.9 billion loss, and a $4.4 billion tax charge.

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Apple will pay $38 billion in repatriation tax.

The tech giant said it will pay $38 billion in taxes to repatriate its overseas cash because of the new law.

As of late September, Apple held about $252 billion in cash offshore.

Under the new tax law, foreign earnings sitting offshore would be considered to be automatically repatriated and taxed at reduced rates.

The iPhone maker also said it expects to invest over $30 billion in capital expenditures in the United States over the next five years.

Could antitrust law fell the tech giants?

That’s the provocative question posed by Greg Ip of the WSJ. And it reflects governments’ growing wariness toward the tech industry.

Google, Amazon and Facebook aren’t like the Standard Oil or AT&T of old, gouging consumers on price. (Indeed, many of their services are free.) But if the question is “Are consumers better off?” then could there be an opening for regulatory action?

More from Mr. Ip:

If market dominance means fewer competitors and less innovation, consumers will be worse off than if those companies had been restrained. “The impact on innovation can be the most important competitive effect” in an antitrust case, says Fiona Scott Morton, a Yale University economist who served in the Justice Department’s Antitrust Division under Barack Obama.

Where tech has support: In its efforts to keep net neutrality regulations, with a lawsuit against the F.C.C. by 22 state attorneys general and a bill by Senate Democrats to undo the repeal using the Congressional Review Act.

Goldman posts first quarterly loss in six years.

Goldman once seemed invincible. Its trading business was a profit machine.

This morning it posted a quarterly loss in part because of the poor performance in its trading unit.

The numbers:

• $1.9 billion. Goldman’s fourth-quarter loss.

• $4.4 billion. The charge Goldman took related to the new tax law, which wiped out nearly half of Goldman’s earnings for the year, according to the WSJ.

• $5.68. The Wall Street firm’s profit per share excluding the tax-related charge, beating the consensus estimate of $4.90 from Wall Street analysts.

•$7.8 billion. Goldman’s revenue for the quarter, down 4 percent. Goldman is the only big bank to report a decline in revenue so far.

• $2.37 billion. Goldman’s trading revenue for the fourth quarter, down 34 percent from a year ago. That was the steepest decline of any of banks reporting so far. Citigroup, JPMorgan and Bank of America have reported declines in trading revenue of 19 percent, 17 percent and 9 percent.

• $1 billion. Goldman’s revenue from buying and selling bonds, commodities and currencies, half of what it generated a year ago. To put that in perspective: Goldman’s fixed-income division at its peak churned out nearly a billion dollars every two weeks.

In unrelated Goldman news…

Federal prosecutors in Manhattan unsealed an indictment charging Nicolas De-Meyer, 40, with stealing $1.2 million worth of rare wine from a former employer. The former employer in question was Mr. Solomon, who employed Mr. De-Meyer as a personal assistant, according to two sources familiar with the matter.

According to the indictment, the wine was stolen from around October 2014 to around October 2016, when Mr. De-Meyer had been asked to transport it from his former employer’s Manhattan apartment to his wine cellar in East Hampton, N.Y.

Mr. De-Meyer was arrested in Los Angeles on Tuesday, according to a spokesman for the Los Angeles federal prosecutor’s office. He could not immediately be reached for comment.

“The theft was discovered in the fall of 2016 and reported to law enforcement at that time,” a Goldman spokesman said.

Excluding tax hit, BofA posts biggest profit in more than a decade.

Bank of America reported $2.4 billion in fourth-quarter profit, after taking a $2.9 billion charge tied to the new tax law.

The numbers:

• $5.3 billion, or 47 cents a share. BofA’s profit in the fourth quarter excluding the tax-related charge. Analysts had expected the bank to report earnings of 44 cents per share.

• $21.1 billion. BofA’s earnings for 2017, excluding the tax-related charge. That matches its biggest annual profit since 2006.

•$20.4 billion. The bank’s revenue for the fourth quarter, up from $19.99 billion a year ago.

•$2.66 billion. BofA’s fourth-quarter trading revenue, down about 9 percent from a year ago.

• $11.46 billion. The bank’s net-interest income, up 11 percent.

CreditTimothy A. Clary/Agence France-Presse — Getty Images

The new tax code and banks: short-term pain, long-term gain

Let’s recount the hits that U.S. banks took from the tax overhaul:

• Citigroup: $22 billion

• JPMorgan Chase: $2.4 billion

• Goldman Sachs: $4.4 billion

We’ll ignore Wells Fargo for now (it gained). The bigger point is that, thanks to lower corporate rates and preferential treatment for pass-through entities, financial institutions are some of the new code’s biggest winners.

More from Jim Tankersley of the NYT:

“The good news is that tax reform has produced both current and future benefits for our shareholders,” PNC’s president and chief executive, Bill Demchak, told analysts on Friday. He said the bank’s preference would be to divert the tax savings “toward dividend” — which is to say, to return a higher dividend to shareholders.

CreditRichard Drew/Associated Press

G.E.’s problems have investors thinking ‘breakup’

The conglomerate itself isn’t planning on going that far just yet.

Here’s John Flannery, its chief, on a conference call yesterday:

“We are looking aggressively at the best structure or structures for our portfolio to maximize the potential of our businesses. Our results, over the past several years, including 2017 and the insurance charge, only further my belief that we need to continue to move with purpose to reshape G.E.”

The context

Mr. Flannery didn’t say anything out of line with his past remarks. It’s just that he said it as G.E. announced an unrelated $6.2 billion charge connected to its legacy insurance portfolio.

Other conglomerates, from Honeywell to United Technologies to Tyco, have explored restructuring to varying degrees, as Wall Street analysts question the viability of the model.

G.E. and its advisers are still thinking about how to reshape the 125-year-old group, whose complexity may mask yet more problems. The company promises an update in spring, and is unlikely to announce something that only fiddles around the edges. But don’t expect plans for it to become three or four fully separate companies.

Critics demand more boldness

• Lex writes, “Once a paragon of management acumen, it is now a rolling train wreck of unexpected and expensive blunders.” (FT)

• Brook Sutherland writes, “The reasons for keeping G.E. together — shared resources and technology — look increasingly tenuous.” (Gadfly)

• Justin Lahart and Spencer Jakab write, “The problem is that G.E.’s parts might be worth a lot less than even the company’s sharply diminished value today.” (Heard on the Street)

CreditT.J. Kirkpatrick for The New York Times

Government shutdown forecast: cloudy

The deadline: 12:01 a.m. Eastern on Saturday

The issues

• Immigration, of course: President Trump still insists on funding for a border wall and Democrats are fuming over his comments on African countries.

• Republicans are weighing whether to use funding for the Children’s Health Insurance Program as a carrot — or stick — for Democrats to join a stopgap funding measure.

The state of play

Red-state Democrats are uneasy about allowing a shutdown in an election year. Some Republicans are irked by a stream of temporary funding resolutions, rather than a full agreement that would permit more military spending.

House Speaker Paul Ryan’s proposal for a continuing resolution — which includes delays to several health care taxes in addition to CHIP funding — has support among many, but not all, Republicans. It has little among House Democrats.

The politics flyaround

• Steve Bannon has been subpoenaed by both Robert Mueller and the House Intelligence Committee. (NYT)

• The C.F.P.B. will reconsider rules on high-interest payday loans, in a potential win for the industry. (WSJ)

• N.Y. Governor Andrew Cuomo unveiled a state budget meant to counter the tax-code changes that hurt high-tax states: “Washington hit a button and launched an economic missile and it says ‘New York’ on it, and it’s headed our way.” (NYT)

• Support for the new tax code has grown, according to a SurveyMonkey poll. (NYT)

• G.M.’s chief, Mary Barra, urged Mr. Trump to be cautious about withdrawing from Nafta. (NYT)

• How Michael Wolff got into the White House. (Bloomberg)

CreditPhoto illustration by Delcan & Company

Forget the Bitcoin frenzy

The biggest thing about virtual currencies isn’t how much their prices rise (or fall). It’s the technology that makes them work, argues Steven Johnson in the NYT Magazine.

More from Mr. Johnson:

What Nakamoto ushered into the world was a way of agreeing on the contents of a database without anyone being “in charge” of the database, and a way of compensating people for helping make that database more valuable, without those people being on an official payroll or owning shares in a corporate entity.

We’ll count him as a skeptic: Dick Kovacevich, the former Wells Fargo C.E.O., told CNBC that he thinks Bitcoin is “a pyramid scheme” that “makes no sense.”

Beware cryptoheists: North Korea looks to be using the same malware found in the Sony Pictures hack and the Wannacry assault against digital currency investors.

Virtual currency quote of the day, from Bloomberg:

“I have a Zen philosophy that you just go with the flow,” said George Tasick, a part-time cryptocurrency trader in Hong Kong whose day job is making fireworks. “I’m not really changing my behavior in any way.”

The issues in selling the Weinstein Company

Issue one: Some potential buyers may want to pick up the troubled studio through the bankruptcy process, to cleanse it of legal liabilities.

Issue two: Advocates for women who have brought allegations against Harvey Weinstein worry that could deny them justice.

More from Jonathan Randles and Peg Brickley of the WSJ:

A Chapter 11 filing would halt lawsuits brought by women against the studio, forcing them to line up with low-ranking creditors to await their fate. Once the money from a sale comes in, bankruptcy law dictates who gets paid first — the banks that kept Weinstein Co. in business — and who gets paid last — women claiming that Weinstein Co. was part of Mr. Weinstein’s pattern of alleged sexual misconduct.

But it’s complicated. A bankruptcy filing could provide legal structures for Mr. Weinstein’s accusers, like a judge’s supervision of sales and settlements.

A suitor from the past: Among the bidders is the previous studio founded by the Weinstein brothers, Miramax, according to Bloomberg.

What about RICO? DealBook’s White Collar Watch takes a look at using the racketeering law against Mr. Weinstein and his company:

RICO lawsuits are tempting. They allow a plaintiff to sue a variety of defendants by claiming that they acted together and seek an award of triple damages, a bonanza in some business disputes that can run into millions of dollars. But these cases should also come with a bright red warning sign: Tread lightly or see your case thrown out of court before it even gets started.

CreditTony Cenicola/The New York Times

The M. & A. flyaround

• Nestlé finally struck a deal to sell its U.S. confectionary business, with Ferrero paying $2.8 billion. Gadfly asks if Hershey should jump on the deal bandwagon. (NYT, Gadfly)

• Qualcomm had a busy deal day yesterday. It made its case against Broadcom’s $105 billion hostile bid, as its own $38.5 billion offer for NXP Semiconductor was rejected by the money manager Ramius. (Qualcomm, Ramius)

• Silver Lake put up a hefty $1.7 billion equity check as part of its $3.5 billion bid for Blackhawk Network. (NYT)

• Celgene is in talks to buy Juno Therapeutics, maker of a cancer treatment, according to unidentified people. (WSJ)

The Speed Read

• Bill Miller, the value investor who beat the S. & P. 500 15 years running (and whose faith in banks was mocked in the movie “The Big Short”), has donated $75 million to the philosophy department of Johns Hopkins University. (NYT)

• YouTube said it had altered the threshold at which videos could accept advertisements and pledged more oversight of top-tier videos. It’s said similar things before. (NYT)

• Amazon has advertised for an expert in health privacy regulations, suggesting it plans to work with outside partners that manage personal health information. (CNBC)

• A federal judge indicated he would approve a $290 million settlement by Pershing Square Capital Management and Valeant Pharmaceuticals with Allergan shareholders who accused them of profiting improperly from a failed takeover bid. (WSJ)

• Informa, which owns the shipping journal Lloyd’s List, is in talks to buy the exhibitions and events company UBM, creating a company worth more than 9 billion pounds, or about $12.4 billion. (FT)

• The National Retail Federation’s annual trade show is starting to look more like CES. (NYT)

• Joseph A. Rice, who fought a hostile takeover of the Irving Bank Corporation as its chairman and chief executive in the 1980s, died on Jan. 8 at 93. (NYT)

• Greenlight Capital’s David Einhorn is betting on Twitter, saying revenue should grow after user-experience improvements. (Bloomberg)

• Melrose Industries, which specializes in turning around manufacturers, has made a hostile public bid worth about $10 billion for GKN, a British maker of aerospace and automotive parts that could face trading issues as Brexit looms. (Bloomberg)

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You can find live updates throughout the day at nytimes.com/dealbook.

We’d love your feedback. Please email thoughts and suggestions to [email protected].

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Dow jones Johnson tops 26,000 for brand spanking new as stock exchange boom continues

US share index increases 1,000 points in 12 days – but sceptics warn rise might be last hurrah before an accident

Trader Gregory Rowe wears a Dow 26,000 hat as he works on the stock exchange floor. Trader Gregory Rowe wears a Dow jones 26,000 hat because he utilizes a stock market floor. Photograph: Richard Came/APThe Dow jones Johnson Industrial Average has capped the 26,000 mark the very first time, a brand new landmark within the Wall Street stock exchange boom which has collected pace since 2012.

The key index people shares has risen 1,000 points in only 12 days – and 6 stock exchange buying and selling sessions, considering that Wall Street was closed for Martin Luther King Junior Day on Monday – fuelled by the increase within the global economy and the possibilities of bumper company earnings because of Jesse Trump’s corporate tax cuts.

The Dow jones added almost 280 points at the begining of buying and selling in New You are able to, hitting a higher of 26,081 before falling back underneath the 26,000 mark towards lunchtime. The greatest gains were for pharmaceutical company Merck & Co, health insurer U . s . Health insurance and digger manufacturer Caterpillar.

The Dow jones required 19 buying and selling sessions to increase from 24,000 to 25,000 on 4 The month of january and it is up greater than 40% since Trump’s election in November 2016. Sceptics have dubbed the most recent phase from the bull market a “melt-up”, around shares ongoing to increase despite searching overpriced by traditional yardsticks, and warn maybe it’s a last hurrah before a downward correction or crash.

longest-ever periods of expansion, only surpassed through the booms that required devote the 1960s and also the 1990s prior to the dotcom crash. The United States has been growing with no correction since June 2009, following a recession that adopted the economic crisis.

Inflation and rates of interest have continued to be low all over the world, assisting to fuel the stock exchange boom, because the greatest countries’ central banks pump billions to their economies through quantitative easing.

dow jones johnson graphic

Within the United kingdom, the FTSE 100 came by about 13 suggests 7,755.93, as European shares dipped slightly after strong gains in recent days.

However, Bitcoin slid around 18% on Tuesday to some four-week low, departing it simply above $11,000 among fresh fears of the regulatory attack.

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Bitcoin cost latest: Cryptocurrencies including Ethereum plunge after Columbia regulation bulletins

Cryptocurrencies over the market are in the center of an enormous crash.

All cryptocurrencies are falling among a significant selloff. They have fallen greater than 10 percent within the morning, and also the cost of bitcoin has dropped below $12,000.

Just days ago, bitcoin was marching towards $20,000. But simply today it’s fallen greater than 10 per cent – taking it lower almost 40 percent during the last month, but nonetheless getting risen greater than 1,300 percent within the year.

Bitcoin is the top performing of the several cryptocurrencies within the morning.

Ripple, the 3rd largest cryptocurrency, had dropped up to 25 percent among major volatility. Ethereum fell by greater than 15 percent.

The cost of cryptocurrencies has a tendency to fluctuate extremely, and more rapidly than various other traditional assets and currencies. However the plunge on Tuesday morning is extreme even just in that market.

The drop came among growing suggestions in Columbia that officials might turn to impose new rules around the currency. Finance minister Kim Dong-yeon suggested the country might ban buying and selling within the currencies entirely, pending a government review.

The federal government has stated the plans are a suggestion which more talks are essential. But another government minister stated that buying and selling might be banned a week ago, triggering another instant sell-off, and also the plans have previously brought 200,000 individuals to petition the federal government asking to help keep bitcoin buying and selling legal.

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80% of bitcoin which will ever exist have previously joined circulation

About 80 percent from the final amount of bitcoin around have apparently recently been found.

There’s a finite way to obtain bitcoin – 21 million altogether – and a minimum of 16.8 million of individuals had already joined circulation by 13 The month of january, based on Bitcoin News.

Which means roughly 4.two million bitcoin are not yet been found.

That’s a comparatively low number, so that as that figure decreases, competition for bitcoin could grow also it turn into tougher to get hold of the cryptocurrency. 

That may, consequently, result in its value shooting up even more of computer already has.

In addition to this, greater than 3 million bitcoin are viewed to happen to be lost forever, with this number prone to grow in the future.

Bitcoin doesn’t have central bank and isn’t associated with or controlled by condition. The availability from the cryptocurrency is decentralised and may simply be elevated with a process referred to as mining. 

For every bitcoin transaction, a pc of a bitcoin miner must solve an intricate mathematical problem – something that needs immeasureable processing power. The miner then receives a part of a bitcoin in exchange.

The reward for mining bitcoin is decreasing and continuously decrease with time.

Miners presently receive 12.5 bitcoin for each block they mine, but that’s likely to fall to 6.25 bitcoin in about 2 years.

Curiosity about digital currencies has skyrocketed over recent several weeks, because of bitcoin’s rapid increase in value. 

As lengthy because it doesn’t crash spectacularly – that is something which numerous finance experts believe will take place in the near future – interest in bitcoin could keep growing.

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The bitcoin bubble is really a joke, and you are the punchline

around $2 billion a couple of days ago.

It is simply a small sector of the items may be the greatest bubble ever.

That, a minimum of, is exactly what bitcoin and all sorts of its assorted imitators seem like at this time. Indeed, previously year, bitcoin went from being worth just a little under $15 billion to a bit more than $225 billion. And that is even though still it works so poorly like a payments system that individuals will not even accept bitcoin in an upcoming bitcoin conference.

That price change almost appears reasonable, though, when compared with Tron. This is the cryptocurrency that’s worth over $7 billion though it does not really exist. It is simply a white-colored paper full of a lot of buzzwords. Plus there is Dentacoin, the $1 billion “blockchain concept created for the worldwide Dental Industry.” (It is a digital currency you should use in the dental professional.) Why anybody want money you are able to only spend in one location rather of dollars the different options are everywhere looks like it’s a question with that they — as well as their investors — did not concern themselves.

What in the specific Pets.com sock puppet is happening? Well, it is the same factor that occurs when a new invention offers to change our way of life: We go nuts. It’s not only that people have no idea exactly what the invention can perform. It’s that people have no idea what it can’t. That gives us the license to dream, perchance to take a position. So be it the telegraph or even the railroad or even the Internet, these types of technological breakthroughs more often than not result in a temporary separation from your rational selves.

Every great bubble has individuals who think it is a movement, others a company, and also the rest a racket. Within this, bitcoin isn’t any different.

The very first group would be the true believers. They are the techno-libertarians who think it is just dependent on time until bitcoin replaces the dollar because of how its very limited supply implies that it has a tendency to gain, instead of lose, value with time. (Let alone this does mean that no-one ever really wants to stand.)

The 2nd would be the more realistic believers. They are the bankers and lawyers as well as other middlemen who worry that bitcoin might eventually cut them out due to the way it instantly results in a criminal record of the master of what — and that’s why they have to learn how to utilize it first.

And also the third would be the cynics who wish to take advantage of the present craze by pretending their companies are actually bitcoin ones, and putting in a bid in the stocks of the which do participate in such fancy. That, in the end, is when such non-leading edge companies as Kodak and also the Lengthy Island Iced Tea Company both were able to triple in value within days. It is simply musical chairs for grown-ups: everybody is aware of this is nonsense, but everybody thinks they may be the 2nd-to-last person to market.

It is a fun game before the music stops — but it’ll. It always does.

It almost enables you to have a pity party for dogecoin, but at least it had been in around the joke. What’s everyone else’s excuse?

‘Going to become a nightmare’: Some bitcoin investors have been in for rocky tax season

Jim Makos/Flickr)

Sean McAuliffe doesn’t have much background in investing, apart from a few retirement accounts. But within the Christmas, because the cost of bitcoin blew past $8,000 in a several weeks-lengthy rally, the 54-year-old construction manager made the decision to go for it. Like many Americans, he’d read enough about bitcoin on the web to feel confident purchasing a stake within the digital currency and several similar ventures.

McAuliffe’s investment compensated off quickly: Inside a month, the cost of bitcoin had greater than bending to over $19,000. Encouraged, McAuliffe bought more. Now, he figures he executes a minumum of one trade a day and, in writing, makes about $7,000.

“I’ve had some dramatic wins and a few dramatic losses,” he stated within an interview.

But McAuliffe can also be searching ahead to what is a large headache: Doing his taxes as he sells. Although McAuliffe does not plan to exchange his virtual currency back to dollars in the near future, other investors have. And lots of tax professionals have observed an uptick in questions this season.

“It’s likely to be a nightmare for those concerned about doing the best factor,” stated Andrew Schaefer, a federally licensed tax expert in Florida who represents taxpayers prior to the Irs. On the line this season might be many billions in profit and possibly more, Schaefer stated, knowing by the surge of interest in bitcoin. A substantial slice of that may be susceptible to federal and condition taxes according to the number of people offered their assets.

“2016 saw some questions show up,” stated Lisa Greene-Lewis, a lead cpa at TurboTax. “As individuals are doing their taxes [this season], we might see more because more and more people happen to be buying and selling and selling.”

The newest IRS guidance on the matter is from 2014, if this stated taxpayers should treat their virtual currency like property. Under that rule, taxpayers must declare any profit, also referred to as capital gains, or losses they take once they sell bitcoin in a different cost than once they got it. Exactly the same policy pertains to purchases of real-world goods. For instance, suppose you attempted to purchase coffee with bitcoin. That will technically count like a purchase of the bitcoin. You might owe capital gains tax when the bitcoin you compensated in the check out had elevated in value from the moment you initially acquired it. The Government declined to comment with this story, referring to that 2014 guidance.

As the IRS ruling removed up some questions, it elevated others, for example who’d result in tracking each investor’s purchase and purchase prices, and just what methodology would be employed to calculate gains. Another question is how to treat the development of new virtual currencies that emerge as offshoots or “forks” of original copies.

“How do you take into account taxes if you have a fork — could it be [like] a regular split?” requested Jerry Brito, executive director from the Gold coin Center, a think tank for virtual currency issues.

With stock, brokerage firms for example Vanguard and Charles Schwab typically help investors track their gains and losses having a year-finish tax document, Form 1099. But companies for example Gemini that handle virtual currencies, which weren’t around for very lengthy, face more ambiguous reporting obligations, departing it mostly as much as individual investors to crunch the figures themselves. That demands a center for figures as well as an exacting degree of attention. Things get even thornier for U.S. employees who work with bitcoin-related companies and could receive the digital currency as an ingredient of their salary that cash is taxed as regular earnings, not investment earnings.

“I definitely have experienced people use Stand out spreadsheets to exhibit the things they spent to purchase the gold coin, any costs to transform dollars to some kind of cryptocurrency or [whether] they make use of a charge card to purchase them,” stated Zak Yaffe, a clinical student in the College of Washington who bought a mixture of bitcoin and also the digital currencies litecoin and ethereum in September.

Although not everybody helps make the effort, or perhaps is even aware she or he may owe money towards the government, tax experts say. According towards the IRS, from 2013 to 2015 only 800 to 900 people annually declared their bitcoin earnings.

The company has indicated it could go after investors who neglect to report individuals gains. Inside a recent court fight, the government forced Coinbase, among the largest U.S.-based exchanges where consumers can purchase bitcoin for dollars, to supply citizen info on greater than 14,000 customers. The Government didn’t pick out any customer for suspicion within the suit but did express it believed gains from virtual currency “are underreported.”

Coinbase stated inside a blog publish in the time that the ruling would be a partial victory because of its side for the reason that it denied the IRS from being able to access a level broader group of data covering 480,000 customers. In an FAQ page on its website, Coinbase stated it will distribute Form 1099 to investors on its platform who’ve made greater than $20,000 in gains “related to a minimum of 200 transactions inside a twelve months.” The FAQ urges investors to “keep your personal records for the best results increase the report accordingly.”

That covers high-volume traders and large-time players but offers little guidance to average investors, stated McAuliffe, who invested about $3,000 in virtual currencies this past year. “Coinbase sent out — I’ll refer to it as a boilerplate on taxes,” he stated, which contained a hyperlink towards the FAQ. “Did they give out a tax report like you’d get from TD Ameritrade? No. Only, like, a flag of ‘pay your taxes!’ and assistance with statutes to find information about. … It’s all regulated kind of ‘Wild West’ kind of stuff.”

Coinbase declined demands to have an interview. Other exchanges, for example Gemini and Bitstamp, didn’t react to demands to have an interview.

Missing further specifics, many investors have switched to social networking for solutions. Several accountants who moonlight as moderators from the popular Reddit forum referred to as /r/tax say they’ve observed a clear, crisp rise in the amount of bitcoin-related demands for advice.

“I know I have seen an uptick on /r/tax, /r/bitcoin, /r/CryptoCurrency and /r/personalfinance about taxes and bitcoins, in addition to my very own private practice,” stated one moderator, who passes the handle /u/DasHuhn. “In 2016 I’d roughly 5 questions requested about bitcoin, as well as in 2017 I’d most likely 30 approximately.”

The recent questions on Reddit range in sophistication. Some posters appear at first sight just starting to consider buying bitcoin and wish to weigh the benefits and drawbacks. Others make substantial gains from purchasing the currency and therefore are trying to puzzle out the things they owe in taxes. And others need to know whether they can discount the things they invest in buying bitcoin like a business expense. (The solution: This will depend.)

Much more questions are expected as companies for example Coinbase begin delivering out 1099s.

Reddit users are usually the main thing on technology, the moderators stated, to see this type of dramatic rise in bitcoin discussions around the social platform isn’t that surprising. However, many retail investors who don’t frequent the website are actually visiting grips using the tax effects of the bets.

There’s “going to become a big wake-up call within the next couple of months,” Schaefer stated. “There’s mother-and-pop investors asking about this now. I’ve described how cryptocurrency activly works to my grandma and grandpa.”

Tesco and M&S tumble on retail ‘Super Thursday’ as festive sales suffer

  • Tesco and Marks & Spencer slump to the foot of the FTSE 100 on retail ‘Super Thursday’ as festive sales miss City expectations host of shops including John Lewis, Boohoo, Card Factory and Game Digital report mixed bag of results
  • M&S shares slip 3.3pc after suffering declines both in its clothing and food departments as inflation-squeezed consumers tightened their belts
  • Tesco’s sales growth misses analyst estimates its share cost tumbles 3pc
  • Bond market jitters suppress stocks but miners lift the FTSE 100 into positive territory

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9:47AM

Tesco extends slide on FTSE 100 despite record Christmas results

M&S and Tesco’s slide around the FTSE 100 is quickening and housebuilding shares will also be coming pressurized after FTSE 100 company Barratt Developments grew to become the most recent within the sector to report slowing sales.

Sales at Tesco may have hit an archive high at Christmas but is missing the City’s high expectations a blot on Tesco leader Dave Lewis’ impressive copybook?

Accendo Markets analyst Henry Croft contended that his technique is “yielding results” however that weak general merchandise sales pulled lower strength in the food division.

The figures reveal that Tesco continues to be crucially holding its ground against fierce competition from the kind of Aldi and Lidl, however, commented Martin Lane, managing editor of cash.co.united kingdom.

A 4.4pc share price slump for Tesco feels pretty harsh on the rear of record results.

9:27AM

John Lewis warns of ‘volatile’ economy despite record Black Friday sales

John Lewis stated Black Friday was its greatest day’s sales ever 

A record Black Friday helped John Lewis publish strong development in the increase to Christmas however the worker-owned store cautioned intense competition along with a “volatile” economy would weigh on its full-year results.

Sales at John Lewis Partnership, including Waitrose, rose 2.5pc close to £2bn within the six days to December 30, boosted by 3.6pc growth at its mall chain.

Black Friday was the greatest day’s sales in John Lewis’s history, with revenues that week up 7.2pc year-on-year. Electricals rose 5pc over the period, and garments improved by an identical amount, but homeware dipped .3pc.

Read Jack Torrance’s full report here

9:10AM

Supermarket premium ranges snatch sales from M&S

Are Debenhams and Marks and Spencer’s sales woe only a reflection of squeezed consumers looking for cheaper deals?

John Lewis’ Black Friday-boosted sales figures today shows that there is a way to success for greater finish stores.

Hargreaves Lansdown analyst Laith Khalaf argues the sales slump at M&S is principally because of “wider economic trends” which the strong performance of supermarkets’ premium ranges shows that shoppers are spending money at the kind of Morrisons and Sainsbury’s instead of at M&S.

8:53AM

M&S sales fall as shoppers on ‘tighter budgets’ look elsewhere

M&S saw a like-for-like loss of both its food and residential businesses 

Marks & Spencer’s revenues fell within the several weeks prior to Christmas as consumers with “tighter budgets” shopped elsewhere.

Sales at United kingdom stores open several year dived 1.4pc within the 13 days to December 30, with what leader Steve Rowe referred to as a “mixed quarter”. Shares within the store were lower 2.93pc at the begining of trade at 314.30p.

High street shops stalwart’s lengthy-suffering clothing and residential division endured a couple.8pc like-for-like decline, so it attributed to October’s abnormally the sunshine.

Read Ashley Lance armstrong and Jack Torrance’s full report here

8:46AM

Boohoo lifts sales guidance as revenue doubles

Retail’s rising star Boohoo has upped its sales guidance

Online fast fashion store Boohoo has upped its sales guidance for the next year revenues bending. 

The organization, that also owns the PrettyLittleThing and Nasty Woman brands, stated it now expects revenue development of 90pc within the financial year post sales increased 100pc to £228m within the four several weeks to December. 

Mahmud Kamani and Carol Kane, joint executives, stated: “The Black Friday period was our most effective ever so we traded well through the period. Boohoo has ongoing to do well, delivering strong revenue growth on more and more challenging comparatives this past year.”  

Report by Jack Torrance

8:38AM

Agenda: Tesco and M&S tumble on retail ‘Super Thursday’ as festive sales suffer

Tesco’s sales missed City estimates

The UK’s greatest supermarket Tesco and street stalwart Marks & Spencer have tumbled to the foot of the FTSE 100 on retail ‘Super Thursday’ after their festive sales missed City estimates.

While John Lewis and fast fashion e-tailer Boohoo beat expectations, M&S joins mall Debenhams and baby store Mothercare among the list of retailers seeing their sales shrink as consumer tighten their belts while Tesco’s sales growth arrived below analyst expectations.

Elsewhere, investor jitters around the bond market are keeping stocks around the back feet again today. 

The sharp increase in bond yields was sparked through the Bank of Japan trimming its government bond purchases, igniting concerns the top central banks will taper their quantitative easing programmes faster compared to financial markets are expecting. The sudden rise was exacerbated yesterday by reports that China – among the largest buyers people Treasuries – are recommending slowing US 10-year Treasury purchases.

After stocks dipped in Asia and also the US overnight, the FTSE 100 is again the only blue-nick index increasing in Europe but government bond yields are starting to withdraw.  

Buying and selling statement: Boohoo.com, Fenner, Barratt Developments, Hays, M&S, moss Bros, Premier Oil, Spire, Tesco, Jupiter Fund Management, Rathbones, Ultra Electronics

AGM: Fenner, Debenhams, Domino’s Pizza Group

Financial aspects: BoE credit conditions survey, PPI (US), Industrial production (EU), ECB meeting minutes (EU)