The Week Ahead: Taxing Matters
It nearly over bar the shouting. The US Upper House has passed a bill that could see big businesses benefit from a sweeping overhaul of the tax code in thirty years. The Senate has passed the tax plans by 51 votes to 49. All that remains now is for the President to put his signature on the piece of paper.
Staying in the US, there are some non-farm payroll numbers for the Fed to chew over before it has to make an interest-rate decision the following week. Another 200,000 jobs are expected to be created, which would be lower than in October.
The November unemployment rate is expected to be unchanged at 4.1%, which would be the lowest since 2000.
China will report Purchasing Managers’ Indices, which are expected to show that services continued to expand in November. It will also report the latest inflation numbers, which are expected to show that consumer prices rose at around 1.9%.
Japan will announce the final estimate for economic growth in the third quarter. It should confirm that the economy expanded at an annualised rate of 1.4% between August and September. This was slower than the 2.6% in the second quarter, which would suggest that r the central bank will need to continue with monetary support.
The Reserve Bank of India has an interest-rate decision to make on Wednesday. It looks as though the central bank could keep the cost of borrowing steady at 6%.
And finally, Singapore will report its Purchasing Managers’ Index for November. In October the PMI came in at 52.6, which would imply expansion. The November PMI is expected to come in at 49.7, which could imply slight contraction.