11 January 2019
Question: What are nine (9) states with no income taxes?
ECB warned to keep options open in winding up stimulus – Pg. 3
– France’s top central banker has warned the ECB to take “gradual and pragmatic” approach to ditching its crisis-era stimulus, as the world’s monetary policy makers react to fears of a global economic slowdown
– The bank has kept interest rates at record lows since 2016 but last month stopped expanding its 2.6tn (euro) bond purchase programme, in a step towards normalizing its policies after the financial crisis
– Central banks face a delicate balancing act as they continue to withdraw their support at a time when fears of a global economic slowdown are mounting
Australia housing fall raises recession fear – Pg. 4
– National house prices fell 1.3% in December, the largest monthly fall since 1983, which resulted in an annual decline of 6.1% last year. Prices in Sydney, the country’s biggest property market, are down 11.1% from their peak…
– …could torpedo Australia’s run of 27 years without a recession – a modern record
– The fall in prices markets the end of a five-year expansion that saw prices in Sydney rise by 70% and household debt surge above 120% of GDP – one of the highest levels in the developed world
– Economists warn Australia is vulnerable to a housing downturn as heavily indebted mortgage holders are likely to cut spending when they see the value of their most valuable asset fall and housing construction activity – a key contributor to growth over recent years – slow in the face of weaker returns
How to finance the rising burden of public spending – Pg. 9
– According to the IMF’s latest Fiscal Monitor, the UK’s public sector net worth is minus 125% of GDP, second-worst (after Portugal) of the 31 countries analyzed
– French public sector net worth was minus 42%, Germany’s minus 20% and that of the US minus 17%
BlackRock to cut 500 jobs in sign of testing market – Pg. 15
– The world’s biggest investment group, with about $6.4tn under management, remains comfortably profitable – with a margin of more than 40% – but the asset management industry is under increasing pressure on fees at a time of weakening investor sentiment
– The average share price of listed US investment management groups fell almost 26% last year, with BlackRock dropping 24%
– The cuts amount to about 3% of BlackRock’s 14,900 staff
– The group plans to plough the savings into priority areas such as factor investing, exchange traded funds and illiquid alternative strategies in private debt and equity
Answer: (1) Alaska; (2) Florida; (3) Nevada; (4) New Hampshire; (5) South Dakota; (6) Tennessee; (7) Texas; (8) Washington; (9) Wyoming