By Alan Murray and Tom Huddleston Jr.
August 28, 2017

Good morning.

Some weekend reading worth catching up on:

First, a fascinating piece on page one of Sunday’s The New York Times about how the Chinese have been assiduously wooing Greece with investment and aid since the financial crisis (and how Greece has been returning the favor by advocating Chinese interests in the E.U.). China is hoping to make the Greek port of Piraeus the “dragon head” of its vast “One Belt, One Road” initiative—which pretty much encompasses the entire world, minus the U.S. “Seen from Beijing,” German Chancellor Angela Merkel says, “Europe is an Asian peninsula.” The story is a stark illustration of why the “anti-globalization” policies advocated by some in Trump’s orbit are so dangerous—coming just as China’s global ambitions are reaching new heights.

Second, a smart piece in the Wall Street Journal on the battle over corporate tax reform. Companies generally favor the plan’s push for a lower corporate tax rate, and a system that allows them to bring home overseas profits without paying full U.S. taxes on top of foreign taxes. By making it easier for companies to bring home overseas profits, the plan could provide funds for U.S. investment. But by removing the penalty companies potentially pay on overseas profits, it also could encourage companies to move more operations overseas. To address that problem, Republican tax writers are considering a “minimum tax” on worldwide earnings. But that’s causing a backlash from the likes of Eli Lilly, United Technologies, UPS and others. The story shows just how difficult it is going to be to get big business united behind a tax plan. And if big business isn’t united, the plan’s already uphill climb becomes significantly steeper.

Finally, Uber’s board voted to name Expedia CEO Dara Khosrowshahi as the company’s next chief executive. Former GE CEO Jeff Immelt pulled his name out of the running for the top job at Uber on Sunday, via Twitter.

More news below.


Alan Murray


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