Daily Ticker
  • Romney and Obama Having Lunch Today: Is Fiscal Cliff Fix on the Menu?

    No sour grapes or crow will be served at today's White House lunch when President Obama meets with Mitt Romney for the first time since the election. The president and his former opponent are likely to discuss a topic they both care deeply about: the U.S. economy, including the massive spending cuts and tax hikes that come due Jan. 1 if no compromise is found to avoid the looming fiscal cliff.

    "It's not inconceivable that [the president] could say to the Governor today, 'I need your help. I need you to bring the members of your party that you can over to some sort of compromise,'" says Rob Cox, U.S. Editor of Reuters Breakingviews.

    Related: Update: Stocks Slide as Political "Arms Race" Threatens Cliff Deal

    Whether Romney will agree to help (and if he still has influence in the Republican party) is not clear. Since the election some leading Republicans including NJ Governor Chris Christie and former House Speaker Newt Gingrich have criticized Romney for comments he made crediting the

    Read More »from Romney and Obama Having Lunch Today: Is Fiscal Cliff Fix on the Menu?
  • Three news stories on Wednesday appeared that reported essentially the same thing:

    Board members at Groupn (GRPN) were discussing firing the company's CEO Andrew Mason.

    These news stories did not cite each other. Rather, they cited "sources" close to the situation. (Kara Swisher at All Things D broke the story.* Then Bloomberg and the Wall Street Journal followed).

    Often, when separate news stories contain essentially the same information and don't cite each other, it means that a person or company wants the information out there.

    In the case of the Groupon, it was not immediately obvious who stood to gain from the Andrew Mason information.

    It didn't help Andrew Mason, certainly.

    And it didn't help the company, whose leadership was suddenly thrown into limbo.

    And it didn't help the board as a whole, which looked like it was stabbing its CEO in the back.

    It seemed unlikely that high-quality publications like All Things D, Bloomberg, and the Wall Street Journal would run with secondhand

    Read More »from Groupon CEO Andrew Mason Has “Tough Fight” to Keep His Job
  • Is Puerto Rico the Greece of the Caribbean?

    European nations struggling to repay loans and requesting bailouts have become fairly common in the past few years, but now it appears that this trend might be crossing the Atlantic. Global markets and U.S. officials are becoming increasingly concerned that Puerto Rico will have to default on its debt.

    Puerto Rico is currently crawling out of a five-year recession. The unemployment rate is in the mid-teens, government pensions are only 6% funded and GDP growth is moving at a snail's pace.

    "There are aspects of Puerto Rico that are quite similar to [Greece]," says Robert Donahue, managing director at Municipal Market Advisors. He explains that the similarities include "high government employment, the [unregulated] tax system, the pension system, and the weak economy."

    So is Puerto Rico the Greece of the Caribbean?

    "We hope not," Donahue tells The Daily Ticker. Still, he's warning potential investors that Puerto Rico is a systemic risk.

    Pensions for government workers could run dry as

    Read More »from Is Puerto Rico the Greece of the Caribbean?
  • Republican presidential candidate Mitt Romney vowed he'd do this as president. Senator Chuck Schumer (D-NY) has been a public advocate of it. But the White House says it would not label the nation's largest trading partner — China — a currency manipulator.

    In its semi-annual report to Congress on international economic and exchange rate policies, the Treasury Department says China has taken steps to appreciate its currency, the renminbi, and "Chinese authorities have substantially reduced the level of official intervention in exchange markets since the third quarter of 2011." According to the report, China's move to a flexible exchange rate regime has caused the renminbi to appreciate 12.6% against the U.S. dollar since June 2010 (adjusting for inflation) but the currency "remains significantly undervalued, and further appreciation of the RMB against the dollar and other major currencies is warranted."

    As The Daily Ticker's Aaron Task and Henry Blodget discuss in the attached clip,

    Read More »from U.S. Refuses to Label China a ‘Currency Manipulator’ but All Countries Manipulate Their Currencies
  • Mitt Romney may have lost the election, but his idea to cap deductions has won some support in Washington D.C., including from President Obama.

    "I think that there are loopholes that can be closed, and we should look at how we can make the process of deductions, the filing process easier, simpler," the president said on Nov. 14 at his first post-election press conference.

    The nonpartisan Tax Policy Center (TPC) estimates that capping tax deductions at $50,000 would raise $749 billion over 10 years, which is serious money even for the federal government. Given Republican opposition to raising tax rates, capping deductions may be key to any deal to resolve the fiscal cliff.

    Related: Stocks Slide as Political "Arms Race" Threatens Fiscal Cliff Deal

    But the devil is in the details and the housing market particularly could be at risk if any cap applies to mortgage interest deductions. American households took $83 billion in mortgage interest deductions in 2010, The NYT reports, citing the

    Read More »from Capping Mortgage Interest Deduction Could Have “Chilling Effect” on Housing: Sharga

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The Daily Ticker covers the most important business stories of the day -- the economy, investing, corporate leadership and politics. The Daily Ticker picks up where Tech Ticker left off and is hosted by Aaron Task, Henry Blodget and Daniel Gross. Often serious, sometimes irreverent and always interesting, The Daily Ticker gives viewers a unique take on the business world's most crucial stories.

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