Trump’s Take on Corporate Tax Rate Could Look Very Much Like Obama’s (NYT)
If the 28 percent tax rate sounds familiar, that’s because it is: It was the same rate that President Obama proposed in 2012 and again in 2013, when he also proposed to lower the tax rate for United States manufacturers to 25 percent. He made the proposal again in 2014, 2015 and 2016. Each time, his tax plan was summarily dismissed by Republicans who called the rate too high and uncompetitive. Now, Republicans may end up negotiating a tax package with a corporate tax rate that looks a lot like the one they rejected out of hand for the last five years.
OnDeck's Bumpy Ride Isn't Over (BBG Gadfly)
Assuming Kabbage were to propose a traditional takeover at a standard premium, it probably would be swiftly rejected by On Deck's earliest investors, who still own a combined stake of more than 45 percent, according to data compiled by Bloomberg. With the stock trading at less than a quarter of its 2014 initial public offering price, it would take a generous premium to get them interested. That's highly unlikely, given that the company's growth prospects haven't panned out as planned amid heightened competition and waning appetite for small-business loans from the kind of investors who buy them.
Elon Musk Launches Neuralink to Connect Brains With Computers (WSJ)
The technology faces several barriers. Scientists must find a safe, minimally invasive way to implant the electrodes, and a way to keep them stable in the brain. It also isn’t yet possible to record the activity of millions of the brain’s neurons to decode complex decisions, or distinguish when someone wants to eat a bowl of spaghetti or go to the bathroom. Then there is persuading people to get elective brain surgery.
Hedge fund closures hold nuggets for stock market investors (FT)
Considering Mr Mindich describes the closure as a decision he took, rather than an outcome forced upon him by clients pulling out their cash, the end of Eton Park may also be telling us where we are in the current market cycle. Why would a financially motivated individual who had spent his entire career working in markets choose this moment to relinquish what is effectively a free option potentially worth hundreds of millions of dollars in fees?
Playing Devil’s Advocate on Index Funds (A Wealth of Common Sense)
Professional investors love to debate about what would happen if everyone indexed. These types of arguments are unhelpful because it’s like asking what would happen if everyone started exercising regularly, eating right, saving money, avoiding credit card debt and compromising on their political views. We’re not going to see a mass outbreak of rationality. Still, no one really knows what the sweet spot is for the total amount of funds in passive products.
Second-Order Effects Are the Real Risks to Trump Trade (BBG)
The Trump trade is mainly thought to be viewed as a U.S. domestic affair. The ultimate source for the trade is global reflation driven by the dollar, financial conditions and Chinese prices. All three seem in reversal, which means the Trump trade may be scaling back regardless of whether a new healthcare act is passed or not. For investors it means a period of rising market volatility could be ahead.
Hedge fund boss who lost billions in Bernie Madoff Ponzi scheme plunges to his death off luxury Midtown hotel (Daily News)
Murphy was an investor working with Paulson & Co, which issued a statement to the Financial Times. “We are extremely saddened by this news. Charles was an extremely gifted and brilliant man, a great partner and a true friend,” founder John Paulson said. “Our deepest prayers are with his family.”
Mnuchin may have violated ethics rule with ‘Lego Batman’ comment, senator says (MarketWatch)
In an interview, Mnuchin said — after being asked for a movie recommendation — “I’m not allowed to promote anything that I’m involved in. So I just want to have the legal disclosure, you’ve asked me the question, and I am not promoting any product. But you should send all your kids to ‘Lego Batman.’”
Watch and weep as a little girl tells a robot she loves it (CNET)
The robot (yes, I know it's an old water heater, but work with me here) knows that ultimately he must control these humans. He must subjugate them to his will. He must show them that all the beauty they possess inside doesn't mean that they can any longer be allowed to lead the way.