Greece's Fiscal Horror Show Is Now a Distant Memory
In Sintra this week, Federal Reserve Chair Jerome Powell chuckled when Francine Lacqua of Bloomberg Television cited his previous remarks calling for US fiscal sustainability, and then asked him, 'how's it going?'
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New York Post
an hour ago
- New York Post
Bettors sound alarm over $1.1B tax hike in Trump's Big Beautiful Bill: ‘This will kill professional gambling'
Gamblers sounded the alarm over a new provision in President Donald Trump's recently passed spending bill that imposes a $1.1 billion tax increase by limiting the deductibility of gambling losses. The change, buried in the Senate GOP's version of the sweeping 'Big Beautiful Bill,' will cut their net winnings and potentially charge income tax when they break even or lose money, according to Bloomberg. Under current law, gamblers are allowed to deduct 100% of their losses, up to the amount of their gambling winnings. But the final version of the legislation — set to be signed by Trump during a White House ceremony Friday — modifies that rule. Advertisement 4 A provision tucked into President Trump's Big Beautiful Bill will raise taxes on winnings earned from gambling. AP Beginning in 2026, only 90% of losses will be deductible, meaning some gamblers could owe taxes even when they break even or incur a net loss. 'I've spoken to many clients and they're very concerned,' Zachary Zimbile, an accountant with experience in gambling regulations, told Bloomberg. 'If you add a 10% penalty, it's going to eat into a lot of their profit.' Advertisement Examples included in the legislation show the potential consequences. Under the current system, a gambler who wins $100,000 and loses $100,000 would report zero taxable income. Under the new rule, that same gambler would owe taxes on $10,000. Similarly, someone who wins $500,000 and loses $500,000 — breaking even — would owe taxes of $50,000. Even in cases where losses exceed winnings, taxes would still be owed. Advertisement A gambler who wins $200,000 and loses $210,000 would owe taxes on $11,000, because the deduction for losses would be capped at $180,000. 4 The GOP-led House of Representatives approved a final version of the spending bill on Thursday. AFP via Getty Images The change sparked significant pushback from gamblers, particularly professionals who regularly handle large volumes of both wins and losses. Phil Galfond, a professional poker player who has racked up nearly $3 million in live tournament winnings, wrote on X: 'You would make $200,000 during the year, [but] you would pay tax as if you made $700,000.' Advertisement Rufus Peabody, a professional sports bettor, highlighted the impact of the new tax provision on social media, explaining that it 'hits the losers too.' 'Someone can lose money gambling, and still owe taxes on it,' Peabody wrote on X. Doug Polk, who has won more than $10 million in live poker tournaments, wrote that the gambling provision 'will kill professional gambling. This will negatively impact THOUSANDS.' 4 President Trump is expected to sign the bill into law on Friday. Getty Images 'If you care about poker now is the time to get this out to every single corner of the internet,' Polk wrote on his X account. 'This has been snuck into the bill and if it passes tens of thousands of people will instantly lose their careers.' While professional gamblers are likely to feel the brunt of the new rule due to the scale of their activity, amateurs with high-volume play could also be affected in years when they have significant wins and losses. The US gambling industry has seen substantial growth in recent years, boosted by the expansion of online platforms and the popularity of regulated betting services. Companies such as FanDuel and DraftKings have helped drive the surge. Advertisement According to the American Gaming Association, commercial gaming revenue in the US reached nearly $72 billion in 2024, marking the fourth consecutive record-breaking year. 4 The new legislation will limit deductions for gambling losses to 90% of winnings, starting in the 2026 tax year. Studio Romantic – 'We commend congressional leaders on the passage of the One Big Beautiful Bill Act,' the American Gaming Association said in a statement provided to The Post. 'Our industry's ability to sustain quality jobs and deliver economic benefits is significantly enhanced by the tax policies of OBBBA that support consumers, encourage business innovation and investment, and strengthen US competitiveness.' Advertisement The AGA said that 'we look forward to President Trump's expected signing and will work closely with Congress in the coming months to address the changes to wagering deduction losses and further modernize the tax code.' The Post has sought comment from the White House and DraftKings. A spokesperson for FanDuel declined to comment.
Yahoo
2 hours ago
- Yahoo
Analysis-Tariffs, geopolitics drag on European IPOs, even as funds flow in
By Charlie Conchie and Emma-Victoria Farr LONDON/FRANKFURT (Reuters) -Tariffs and Middle East turmoil are spooking European companies and the investors weighing their initial public offerings even as volatility subsides and money flows back into equity markets, advisers told Reuters. President Donald Trump's announcement of sweeping tariffs targeting imports from nearly all U.S. trading partners in April and his subsequent U-turn pause on the levies sent shockwaves through the global economy. But markets, including those in Europe, have since bounced back. The VIX, Wall Street's "fear gauge", has fallen around 67% from a peak touched following Trump's tariff announcement. And fund inflows into European stocks reached their second-highest level this century earlier this year. Still, investors remain wary of new listings. Topping their list of concerns, according to seven IPO advisers interviewed by Reuters, are the potential impact of conflicts like the Israel-Iran war and uncertainty regarding newly listed companies' aftermarket performance. "There's still a bit of nervousness in the network and a hangover from issues around tariffs and the war in the Middle East," said Scott McCubbin, head of EY's UK and Ireland IPO practice. Some companies, meanwhile, are unwilling to accept lower valuations than they had hoped for, the advisers said. SHELVED LISTINGS German medical technology firm Brainlab postponed its IPO this week, citing "geopolitical uncertainties". Pharmaceutical company Stada delayed its debut in March, citing market volatility, while another German firm, car parts seller Autodoc did the same last month without giving a reason. Glencore-backed metals investor Cobalt Holdings, which was planning London's biggest IPO of 2025, meanwhile failed to secure enough investor interest, a person familiar with the matter told Reuters previously. Cobalt Holdings declined to comment. The recent run of shelved listings is making things harder for firms attempting to reopen the IPO market, one person close to the Brainlab IPO process said. Investors could not agree a price for the offering with Brainlab, the person and a second source said. Existing shareholders were dissatisfied with the makeup of the order book, said one of the sources, both of whom spoke on condition of anonymity because the process was private. A spokesperson for Brainlab said interest from investors was "very strong" but the conditions were not optimal for an IPO. While more funds have flowed into European equities this year from investors seeking to reduce their exposure to U.S. assets, that money is going into the stocks of large companies rather than IPOs, said one equity capital markets banker. Some of the reticence stems from cases like German perfume retailer Douglas, which saw its shares drop more than 12% on its listing debut. It subsequently cut its guidance this year. The number of companies that went public across the EMEA region in the first six months of this year fell to 44 from 59 in the same period last year, according to Dealogic data. The amount raised also fell sharply, to around $5.5 billion from $14.1 billion. In such a challenging environment, Naveen Mittel, head of equity capital markets syndicate for EMEA at Citi, said companies planning an IPO have little margin for error. "You need to be clean in terms of setup and structure, evaluation of price, and there needs to be no question marks around it," he said. A POST-SUMMER IPO REBOUND? There have been some success stories this year. Hacksaw, a developer and distributor of online betting games, successfully listed on Nasdaq Stockholm in June. "It's hard to draw any firm conclusions from a few deals when others like Hacksaw, are still getting away," said Michael Jacobs, a partner at law firm Herbert Smith Freehills. "But it does feel like the IPO window needs a summer break to reset." Advisers are hoping an array of bigger deals may help open the market in the second half. That could include a return of Stada, and possible listings of prosthetic manufacturer Ottobock, Deutsche Boerse's research and technology unit ISS Stoxx, and classifieds business Swiss Marketplace Group. Stada is evaluating all options for the further ownership of the company including a possible IPO, it said. Swiss Marketplace Group said it had recently taken initial steps to achieve a "high level of IPO readiness", but its shareholders had not yet made a decision on the possible timing of a float. And Ottobock said it is continually reviewing options including an IPO, but no decision has been made. Deutsche Boerse said it was considering an IPO of ISS Stoxx, but could also buy out private equity investor General Atlantic from the company. No decision had yet been made, it added. Despite the bleak year-to-date numbers, the big picture for European IPOs - positive funds inflows and a calming of market volatility - looks good, one equity capital markets banker said. "The candidates in the pipeline all have next to no tariff impact, so we are optimistic that after the summer the IPO gates will open," the banker said. Sign in to access your portfolio
Bloomberg
2 hours ago
- Bloomberg
Paul: Indian Wealthy Class is Growing Travel Market
The luxury travel category is booming, with hotels, airlines and the industry chasing so-called aspirational holidaymakers, who're prepared to splurge on vacations. Demand is being driven by increasing wealth in emerging markets, especially in India. Priya Paul, chairperson of Apeejay Surrendra Park Hotels, which operates a chain of luxury boutique hotels in India, is hoping to capitalise on this trend, saying that she plans to 'double' the number of properties offered by the company over the next five years. Paul spoke to Bloomberg's Francine Lacqua. (Source: Bloomberg)
