Miscellaneous Quotes from week to 27th January

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US President Trump on Business Insider

Tax cuts looming

“We’re going to be cutting taxes massively for both the middle class and for companies, and that’s massively…We’re trying to get it down to anywhere from 15 to 20% and its now 35%, but it’s probably more 38% than it is 35%…There will be advantages to companies that do indeed make their products here.”

 

Steven Mnuchin, U.S. Treasury Secretary nominee on Bloomberg

A strong dollar is not necessarily good

“The strength of the dollar has historically been tied to the strength of the U.S. economy and the faith that investors have in doing business in America. From time to time, an excessively strong dollar may have negative short-term implications on the economy….A stronger dollar increases U.S. dollar purchasing power. To the extent the dollar gains strength relative to other currencies, assets priced in those other currencies would become cheaper on a dollar basis.”

 

Li Keqiang, Premier of the People’s Republic of China on Bloomberg  BusinessWeek.

Pro openness

“we remain convinced that economic openness serves everyone better, at home and abroad. The world is a community of shared destiny. It’s far preferable for countries to trade goods and services and bond through investment partnerships than to trade barbs and build barriers. Should differences arise, it behooves us all to discuss them with respect and a keen sense of equality.”

China is restructuring

“Structural reforms are showing results. In 2016, China shed more than 65 million and 290 million tons of inefficient steel and coal-mining capacity, respectively. We plan to raise those numbers to 140 million and 800 million tons within the next three to five years to restore healthier fundamentals to those industries.”

China is offering an anchor

“In a world with a plethora of uncertainties, China offers an anchor of stability and growth with its consistent message of support for reform, openness, and free trade. The times may be difficult. But that’s all the more reason not to lose sight of these principles, which have stood China—and the world—in good stead.”

 

Kathryn Mikells – Diageo CFO on Q4 results

The positive impact of the Pound

“With the weakening of the pound, exchange has been favorable in the first half, benefiting net sales about £850 million and operating profit by about £300 million. Using the rates outlined here for the full-year, exchange is forecast to benefit net sales by £1.4 billion and operating profit by roughly £460 million. There are still a few variables around exchange in fiscal ‘17 which could affect this forecast, including any further movement on the pound and the euro and continued volatility in emerging markets.”