Thu, 19 Jan 2017 23:44:44 -0600The Trump administration may institute a repatriation holiday, which would reduce the U.S. corporate tax rate from 35 to 10 percent for a temporary stretch. U.S. corporations have profits parked overseas to avoid the current rate. Harvard professor Fritz Foley looks at whether bringing them over here would help the economy. Afterwards, we'll talk with Univision's Leon Krauze about how immigrants are preparing for Trump's presidency.
Wed, 11 Jan 2017 06:46:08 -0600As Treasury Secretary Jack Lew prepares to leave the office he’s held for nearly four years, he spoke with David Brancaccio about his economic legacy. Lew shared his thoughts about the Great Recession of ’07-‘08, and the steps he and his colleagues took to institute regulations on the financial industry – a framework he hopes will stay in place as a safeguard against future economic crises. As the nation prepares for the transfer of power between President Obama and President-Elect Trump, Lew addressed the concerns of Americans across the country who have felt dislocated by the economy, and what he believes should be done to support the working class moving forward.This interview has been edited for length and clarity. David Brancaccio: After financial markets nearly froze up in 2008 and 2009, triggering the Great Recession, new rules were put into place to keep Wall Street from ever again taking the sort of risks that would require a government bailout. With the new administration in the wings the pendulum could swing back. A top agenda item for the new team is deregulating Wall Street. Is there room now for some deregulation of financial services and financial markets?Jack Lew: I think you have to start by remembering how far we've come. In 2007, 2008 our financial system was in terrible shape. We were surprised by a financial crisis that led to the worst recession since the Great Depression and it led to the most expansive overhaul of our financial regulatory system since the Great Depression. Today we have financial institutions that have deeper capital and I think they're the best capitalized financial institutions in the world. We have transparency where we used to have opacity so that complicated financial products will in the future not be some mysterious box of potential exploding problems. If a financial institution hit a speed bump in ’07, ’08, the uncertainty of what was inside those institutions was an accelerant to the financial crisis. We have procedures in place to resolve failing institutions so the taxpayers should never again have to step in and become the equity holders of financial institutions. So I think before one asks what could change we have to remember how far we've come, and with a bit of humility recognize that until tested in a financial crisis, we don't know whether what we've done is as effective as we think it is. The fact there hasn't been a financial crisis is not a reason to unwind what we've done. We built the system to withstand a shock that hasn't come, and happily has not come on my watch but will come because there are cycles, and shocks come.I think that if you look at the questions that people raise often about where reform might be debated one issue is small banks. And I think there's very broad openness to thinking about treating the smallest banks differently from large ones.Brancaccio: Some of them feel that the added regulation is onerous.Lew: We have a lot of flexibility, and that flexibility has been used to not have a one size fits all approach. But the problem is when people advocate for small bank special rules, they sometimes jump exponentially to a size of institution that meets no definition of small. So for example, under the Dodd-Frank law, there is a threshold of $50 billion for the size of an institution that you pay a certain level of scrutiny to. If there were a debate about raising that from 50 to 100, I think reasonable people would probably find a way to agree that there are small institutions that should get some special consideration. But the last major proposal put forth to reform Dodd-Frank didn't go from 50 to 100. It went from 50 to 500, and at $500 billion you're talking about some of the largest financial institutions in the country, so reform has to be incremental and sensible. It can't be painted with such a broad brush that we undo some of the basic protections we have.I actually am pretty confident that, because it would take 60 votes in the United States Senate to do major changes to our financial rules[...]
Wed, 18 Jan 2017 23:15:15 -0600Rick Perry is heading to Capitol Hill this morning for his Senate hearing on the role of energy secretary. We'll look at the issues that might come up during his session and then explain what the Energy Department actually does. Afterwards, we'll break down how Trump's tax plan will affect the country's different income brackets.
Tue, 17 Jan 2017 23:04:42 -0600It's another week of confirmation hearings for Trump's cabinet picks. We'll share the highlights from Betsy Devos's contentious hearing, and look at what we can expect from Tom Price's. Next, Marketplace's Scott Tong will discuss what the relationship between the U.S. and China might look like after Trump takes office. Do we have a future trade war on our hands?
Mon, 16 Jan 2017 23:00:00 -0600As U.K. Prime Minister Theresa May gears up to give a speech on Brexit, we'll look at what some of her objectives might be. There's been speculation over whether the U.K. will try to keep some benefits of EU membership, but now it appears that the prime minister wants a hard break. Next, we'll look at U.S. Mint's plans to release a $100 gold coin with the symbol of liberty depicted as an African-American woman.
Sun, 15 Jan 2017 23:22:42 -0600Eyewear maker Luxottica — known for its Ray-Ban shades — is merging with lens maker Essilor to create a company worth $50 billion. We'll explore the future of the eyewear market and explain why a deal between these two types of companies is so unusual. Next, we'll talk about Amazon's job growth plans, and then look at how Los Angeles plans to allocate $1.2 billion of funds dedicated to the homeless.
Fri, 13 Jan 2017 05:49:38 -0600The Justice Department announced that it would phase out the use of private prisons. But the Georgia town of McRae-Helena has staked its future on these facilities. We've visited the region to see how residents feel about their presence. And in Trump-related news, we'll look at some of the cabinet picks who have yet to be scheduled for confirmation hearings, and discuss what the future might look like for big banks during his tenure.
Thu, 12 Jan 2017 05:22:09 -0600Trump says he'll turn over control of his businesses to his two sons, but he won't divest completely. We'll look at whether ethics watchdogs who think he should be held more accountable can do anything. As for those who are still a part of the current administration, outgoing Treasury Secretary Jack Lew joined us to chat about his legacy and where he sees our economy heading.
Wed, 11 Jan 2017 05:45:55 -0600President-elect Trump's nominee for secretary of state, Rex Tillerson, begins his Senate confirmation hearing later today. What could he bring to the table as leader? We'll look at his Boy Scout past and find out how experts would grade his ExxonMobil tenure. Next, we'll discuss Volkswagen's announcement that it's close to a settlement with the U.S. Department of Justice over rigged cars, and then chat with a former Wall Street analyst about a project of his that aims to help the elderly live independently.
Tue, 10 Jan 2017 05:20:06 -0600Obama is set to make his last speech as U.S. president tonight, with plans to reflect on the past eight years. In the meantime, we'll reflect on his economic record. Next, we'll explore how the possibility of chillier U.S.-Cuba relations in the Trump administration could affect international access to Cuban drugs. And finally, we'll take a look at what the FIFA World Cup's expansion from 32 to 48 national teams means for revenue.
Mon, 09 Jan 2017 05:00:00 -0600As the Detroit auto show kicks off today, we'll explore what the future relationship between carmakers and President-elect Trump might look like. Then, we'll take a look at why McDonald's sold its China business for $2 billion, and discuss Seattle's decision to use bond funding to pay for affordable housing.
Fri, 06 Jan 2017 05:00:00 -0600The effects that a critical tweet from Trump can have on a company; hopes for a U.S. manufacturing rebound in 2017; and the possibility of an investment in Sheffield, England from China.
Thu, 05 Jan 2017 05:00:00 -0600Trump's pick for chair of the Securities and Exchange Commission: Wall Street lawyer Jay Clayton, who's represented the companies he could soon regulate. Next, we'll talk with the Eurasia Group about the top political risks for 2017, and then explore the intersection of tech and infrastructure.
Wed, 04 Jan 2017 05:00:00 -0600Ford has cancelled a plan for a new $1.6 billion factory in Mexico, saying it will now invest some of that money into 700 new jobs in Michigan. But that's not the whole story. Next, we'll talk about a push from Puerto Rico's new governor for statehood, and look at how steel workers in southwest Illinois are coping with layoffs.
Tue, 03 Jan 2017 05:00:00 -0600Trump is expected to pick Robert Lighthizer as U.S. Trade Representative. We'll explore his background and look at what the rep actually does. Next, we'll talk about the future of Fannie Mae and Freddie Mac, along with the different ways baby boomers and millennials perceive healthy food.
Mon, 02 Jan 2017 05:00:00 -0600New York's long-awaited subway line is now officially open. But faster commutes may mean rising rents. How much extra could renters end up paying? Also in transportation news: Kathryn Marinello takes the wheel at Hertz tomorrow. We'll talk about what the management shift indicates about changes happening in the car-rental industry. Plus, a look at one hospital network's app that helps physicians prescribe other apps.
Fri, 30 Dec 2016 05:00:00 -0600The Obama administration has issued sanctions on Russia in response to allegations that the country hacked the U.S. and influenced the presidential election. How will the incoming Trump administration decide to deal with Russia? And in other Trump-related matters, a look at what his presidency means for U.S. strategy in space.
Thu, 29 Dec 2016 05:57:14 -0600A potential settlement between Japanese airbag maker Takata and the Justice Department over faulty airbags; new potential standards on organic food production from the Obama administration; and the role of emerging markets in the global economy.
Wed, 28 Dec 2016 05:45:35 -0600To commit insider trading, you have to be on the inside — or hack your way into it. The U.S. has charged three Chinese traders for reportedly doing the latter. We'll look at the case, and also explore bitcoin's happy year and talk about China's financially not-so-happy one.
Tue, 27 Dec 2016 05:04:35 -0600The financial issues plaguing Italy's Monte Dei Paschi, the world's oldest surviving bank; a new rule requiring federal contractors to offer their employees paid sick leave; and the Fire Department of New York's push for greater gender diversity.
Mon, 26 Dec 2016 05:34:10 -0600Seventy-five years after Japan's attack on Pearl Harbor, Shinzo Abe will become the first Japanese leader to formally visit the site. While the move is an important symbolic gesture, it also marks Abe's effort to solidify Japan as an important trade partner with the U.S. We'll also look at the building boom in North Texas, where students in one college's construction management program are basically guaranteed a job after graduation. And finally: an analysis of how much fraudulent returns end up costing retailers.
Fri, 23 Dec 2016 05:39:57 -0600A $12 billion fine for two European banks that reportedly foisted doomed debt onto others near the time of the great financial crisis; rising fees for filing certain immigration documents; and a conversation with a Stanford scholar about the importance of rest.
Thu, 22 Dec 2016 04:49:46 -0600The president-elect has chosen billionaire activist investor Carl Icahn to give advice on overhauling federal regulations, and tapped economist Peter Navarro as head of the new "National Trade Council." We'll dive into what they could bring to Trump's White House. Plus: A conversation with the scholar Chuck Collins — a man who gave away all of his wealth when he was 26 — about income inequality and how he thinks society should tackle the issue.
Wed, 21 Dec 2016 05:18:37 -0600Though the U.S. housing market has improved in recent years, experts say there are too few homes for sale. And that means prices are rising — maybe a little too quickly. Next, we'll look at the troubles hounding Italy's Monte dei Paschi, the world's oldest bank, and interview physician Larry Brilliant about getting rid of smallpox.
Tue, 20 Dec 2016 05:21:43 -0600On today's show, we'll talk about Uber's self-driving experiments in San Francisco — without a permit; retail's move away from "on-call" scheduling; and the push for charter schools from Betsy DeVos, Trump's nominee for Education Secretary.
Mon, 19 Dec 2016 05:07:21 -0600On today's show, we'll talk about Ireland's decision to appeal the EU's order that Apple pay the country $14 billion in back taxes; the disparity in retirement savings between top-earning CEOs and many Americans; and Italy's struggles to conserve its architectural heritage.
Fri, 16 Dec 2016 05:00:00 -0600On today's show, we'll talk about the relationship between the cost of borrowing for a home and interest rate hikes; how the Russian stock exchange is doing post-election; and Disney's development of the "Star Wars" franchise.
Thu, 15 Dec 2016 05:21:47 -0600On today's show, we'll talk about Yahoo's announcement about another hack that affected about 1 billion users; Janet Yellen's evaluation of the economy following the Fed's interest rate hike; and one Marketplace contributor's take on why the country should implement a carbon tax.
Wed, 14 Dec 2016 05:03:02 -0600On today's show, we'll talk about how an interest rate hike would affect emerging markets; check in to see how Trump is doing on his promise to "drain the swamp"; and look at Zara's efforts to become environmentally conscious.
Tue, 13 Dec 2016 05:21:20 -0600On today's show, we'll talk with Bill Gates about his $1 billion fund for clean energy, whether alternative energy can garner support from both political parties, and the future of energy innovation. Plus: We look at the latest updates on how Trump will handle his businesses once he's in office.