Trade War Explodes Across World at Pace Not Seen in Decades [WSJ]
Even before Trump retook the White House, many countries were increasing trade barriers, often against China, as they tried to beat back a flood of electric cars, steel and other manufactured goods pressuring their homegrown industries.
Now those efforts are proliferating as countries brace for a new wave of goods redirected across the globe by the U.S.’s rising tariff shield…. [Economists] warn of lasting damage, both economically and diplomatically, as tariffs and other hurdles to trade increase. Among the risks: slower growth, higher inflation and a collapse in global cooperation that further fractures longstanding alliances.
Businesses Sound Alarm Over GOP’s Corporate-Tax Idea [WSJ]
Ending deductions for state corporate income taxes would yield $223 billion over a decade and ending property-tax deductions would nearly double that…. “Retaining a 21% corporate rate is by far the No. 1 issue of our members, and we see this as a threat to that,” said Catherine Schultz, vice president for tax and fiscal policy at the Business Roundtable, which represents large-company chief executives.
Wall Street’s Embrace of Turkey Unraveled in Just 30 Minutes [Bloomberg]
When Wall Street banks and hedge funds gathered in Istanbul last Wednesday with a top Turkish economist, they were prepared to hear about the country’s improved stability. Then they glanced at their phones.
The Turkish lira was plunging against the US dollar, fueled by that morning’s detention of Istanbul mayor Ekrem Imamoglu — the biggest rival of President Recep Tayyip Erdogan…. Within about half an hour, investors around the world had dumped huge volumes of lira, slashing its value by 10% to a record low.
The Dumbest Investment in the World Was Better Than Owning Safe Treasurys [WSJ]
The bonds [investors] were given in the default, plus the fat coupons on the original century bond, are now worth more than the original investment. Not just that: They are worth far more than if the dollars had been invested in “safe” U.S. Treasurys…. The money made on what was widely regarded as the dumbest of dumb places should remind us of three important lessons: When risks are obvious, they are often well-rewarded; even when risks are hard to see, they are still there; radical political change is hard to predict.
World Economic Forum Shakes Up Senior Leadership [WSJ via MSN]
Founder Klaus Schwab’s children are parting ways with the organization their father has long run and top Forum executives, including managing directors Jeremy Jurgens and Saadia Zahidi, have been in discussions about leaving the Forum or changing their roles…./A Wall Street Journal article last year revealed allegations by employees of sexual harassment and racial discrimination at the Forum…. Schwab stepped aside last year as the Forum’s executive chairman after five decades at the helm….
Berkshire Hathaway employee wins $1 million in Warren Buffett’s March Madness bracket challenge [CNBC]
For the first time in nearly 10 years, a Berkshire Hathaway employee claimed Warren Buffett’s $1 million grand prize for his company’s NCAA bracket contest…. An anonymous employee from aviation training company FlightSafety International, a subsidiary of Buffett’s Berkshire, won the annual internal bracket contest after correctly calling 31 of the 32 games in the first round of the men’s basketball tournament…. The 94-year-old Oracle of Omaha was finally able to give out the big prize after relaxing the rules multiple times since the competition’s inception in 2016.
