UK Chancellor of the Exchequer Rachel Reeves has ditched the plan of increasing national insurance contributions for partners at law and accountancy firms in the upcoming Budget, reported Financial Times, citing people familiar with the fiscal planning discussions. The move to introduce higher national insurance contributions from limited liability partnerships had been anticipated to generate £2bn, but the plan has reportedly been abandoned following Treasury analysis. Treasury modelling indicated that ...

Market Outlook - The market is still considered a buy, with earnings coming in better than expectations and a projected 13% year-over-year EPS growth for 2026 [1][5]. Investment Focus - There is a recommendation to focus on midcaps and small caps, especially as government reopens consumer plays, rather than solely on large-cap tech stocks [2][3]. - The earnings growth potential of companies outside the concentrated mega-cap tech space is highlighted, suggesting a diversification strategy [4][5]. Economic Conditions - The current economic environment is described as bending but not breaking, with expectations of higher earnings growth participation from sectors outside of tech over the next 12 months [5][6]. - The potential for seasonal earnings growth is noted, particularly as the year-end approaches and considering the midterm election year [6]. Government Shutdown - There is optimism regarding the resolution of the government shutdown, with indications of increasing friction and economic loss prompting discussions for a resolution [7].

As Canada looks to reform its economy to be less tied to the US, tax policy is back in the spotlight. Will the Nov. 4 budget offer relief? Read more in our Bay Street Edition newsletter. https://t.co/U61ZZoFP8b ...

Corporate Developments and Analyst Insights - JPMorgan has reduced its price target for Netflix (NFLX) to $1,275, maintaining a neutral rating while balancing long-term optimism with cautious near-term outlook following stock rallies [2][10] - Jefferies has raised its price target for Intuitive Surgical (ISRG) to $560 from $550, following previous adjustments and citing tariff impacts on gross margins [3] - Piper Sandler has also increased its target for Intuitive Surgical to $595 from $575, driven by strong second-quarter performance and raised full-year procedure guidance [3] - Advent International is reportedly exploring a $2 billion sale of its Parfums De Marly business [4] Geopolitical and Policy Landscape - Efforts are ongoing to restore external power to Ukraine's Zaporizhzhia Nuclear Power Plant, with both Russian and Ukrainian forces cooperating to establish ceasefire zones for repairs, highlighting persistent safety risks [5][10] - Japan is set to unveil a new economic package focusing on counter-inflationary measures, growth investment, and national security, including potential tax cuts and expanded subsidies [6][10] - The U.S. pharmaceutical industry faces significant policy threats as a price probe raises the possibility of new drug tariffs, which could lead to higher domestic prices and potential drug shortages [7][10] - The UK Treasury is expected to address tax loopholes for online giants as part of broader efforts to tackle fiscal challenges [8] - Sweden's Prime Minister and Ukraine's President are scheduled for a joint visit, focusing on military aid and reconstruction as part of a bilateral security cooperation agreement [9] Market Performance and Trends - Global equity markets are showing signs of recovery, with Nasdaq futures gaining 0.11% and S&P 500 futures rising 0.18%, indicating a cautious recovery in equity markets [11][10] - The USD/JPY pair has stabilized at 151.835, influenced by the Bank of Japan's monetary policy and Japan's economic outlook [11][10] - Thailand's financial markets are experiencing inflows into bonds and stock funds, attributed to a weakening U.S. dollar and attractive valuations in Thai equities [12]

Market Overview - Current market valuations appear stretched, prompting caution among investors despite record highs in the S&P and NASDAQ [1][2] - The market is described as "a little bubbly" but not at the extreme levels seen during the dot-com era, indicating a more stable environment [2] Economic Fundamentals - Strong fundamentals are noted, particularly in sectors like artificial intelligence and capital expenditures, which are expected to drive future stock performance [3] - The largest companies with robust balance sheets are leading market activity, contrasting with smaller businesses that are slower to respond [5] Interest Rate Outlook - The Federal Reserve has recently cut rates by 25 basis points, with expectations for two more cuts this year, reflecting a more aggressive stance compared to peers [7] - Projections suggest continued rate cuts into 2026, with a potential move towards a lower neutral rate [9] Employment and Economic Growth - Recent employment data indicates a slowdown, with only 17,000 jobs created last month, the weakest since the post-recession recovery began in 2020 [10] - The economy is normalizing towards sub-2% growth, which may provide the Fed with the opportunity to continue lowering rates [12]

Government Shutdowns & Political Blame - Policy disagreements should not be used as leverage to halt government functions or troop payments [1] - Shutting down the government over tax provisions disrupts essential services [2] - Republicans are often blamed for government shutdowns, especially with control of the White House, Senate, and House [5][6][7] - Public perception is that Republicans, when in charge, are unable to effectively run the government [7] Political Strategy & Leverage - The idea of using government shutdown fights to extract concessions for the American people was discussed [3] - Past government shutdowns have benefited political figures like Bill Clinton, who was re-elected after one [5] Public Perception & Impact - The public may not pay close attention to government shutdowns [4] - Middle America's perception is affected when the government shuts down under Republican control [6]

Group 1 - The article emphasizes that merchants are obligated to issue invoices to consumers regardless of any discounts or promotional offers they provide [3][10] - It highlights that invoices must accurately reflect the actual sales situation and cannot contain discrepancies between the invoice details and the actual transaction [3][10] - The article references specific laws, such as the "Tax Collection and Administration Law of the People's Republic of China," which mandates the issuance of invoices during business transactions [3][10] Group 2 - The article discusses new services introduced by the Shanxi Taxation Bureau to enhance taxpayer convenience, allowing access to tax information without needing to join the WeChat enterprise account [13][10] - It outlines the criteria for tax incentives for various types of enterprises, including limited liability companies and partnerships, under recent announcements from the Ministry of Finance and the State Taxation Administration [17][19] - The article explains the calculation of sales proportions for taxpayers applying for VAT refunds, detailing the requirements for different industries, including manufacturing and real estate [19][20]

Group 1 - Public sector net borrowing reached £83.8 billion during the first five months of the financial year, with an increase of £18 billion in August alone [4][38][71] - Government spending has surged by £36.8 billion compared to the same period last year, driven by rising public service costs and debt interest payments [2][70] - Interest payable on central government debt rose by £10.6 billion to £49.9 billion since April, largely due to inflation-linked bonds [1][70] Group 2 - The Chancellor is expected to raise taxes by at least £20 billion in the upcoming Budget on November 26, following a £40 billion tax increase last year [2][60] - The Office for Budget Responsibility (OBR) indicated that the shortfall in tax receipts could be attributed to consumers switching to cheaper food options amid rising inflation [5][38] - Cash VAT receipts were £3 billion below forecast in the first five months of the financial year, with August receipts at £12.8 billion, which was £3.2 billion below expectations [5][38] Group 3 - The pound fell 0.6% against the dollar to $1.347 as markets reacted to higher-than-expected borrowing costs [8][9] - The FTSE 100 index declined by 0.1% to 9,216.67, while the FTSE 250 fell by 0.6% to 21,595.44, reflecting investor concerns over public finances [10][11] - The yield on 30-year UK gilts rose to 5.53%, indicating increased borrowing costs for the government [44][59] Group 4 - The number of company insolvencies in England and Wales rose by 6% in August compared to the previous year, highlighting the financial strain on smaller businesses [45][46] - Public sector employment has reached a record high of 6.2 million, with over two million NHS staff, despite a hiring slowdown in the private sector [48][49] - The Chancellor faces a challenging fiscal environment, with the need to raise £28 billion to address the deteriorating public finances [50][62]

State and Local Tax (SALT) Deduction Overview - Prior to 2017, the state and local tax deduction was unlimited, allowing families to reduce their federal taxable income by the full amount of state and local taxes paid [1] - In 2017, Congress capped the SALT deduction at $10,000, impacting areas with high real estate values [2] - The new tax and spending bill addresses this issue with an increased deduction for state and local taxes [2] Impact and Criticism - States like Florida and Texas may also benefit from the increased SALT deduction [3] - Critics argue against federal subsidization of high state and local taxes in states like New York [3]

Property taxes are on the rise in many parts of the United States. They're up 23% nationwide from 2019 to 2023. It's a huge issue in areas with high real estate values, particularly those near major cities.This was not just the big bad blue states like New York and California and New Jersey states like Florida. States like Texas will realize this applies to them, too. Congress's new tax and spending bill tackles this problem head on an increased deduction for state and local taxes.The tax break is expected ...