Subject: Re: OT, out
An interesting article in the FT Jim…

I’m sure you are not regretting your exodus thus far.

“Wall Street is warning that a little-publicised provision in Donald Trump’s budget bill that allows the government to raise taxes on foreign investments in the US could upend markets and hit American industry.

Section 899 of the bill that passed the House of Representatives last week would allow the US to impose additional taxes on companies and investors from countries that it deems to have punitive tax policies. It could raise taxes on a wide range of foreign entities, including US-based companies with foreign owners, international firms with American branches and investors.

Section 899 could chill corporate investment and stifle demand for US assets when foreign investors are already pulling back from American markets. This retreat, hastened by the Trump administration’s tariff policies, comes as the US is more dependent than ever on foreign investors to buy its growing stock of government debt.”

“This is a market-spooking event, hitting already fragile confidence, particularly from foreign investors,” said Greg Peters, co-chief investment officer at PGIM Fixed Income.

“It’s all self-inflicted wounds at a time when you have a lot of debt that needs to get financed here. So the timing is really quite poor.”