Tech Review | Tech and Tax Reform: The New Paradigm in 2018

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Tech Review (TR 2017-12-23)--Domain Mondo's weekly review of tech news with commentary, analysis and opinion: Features • 1) Tech and Tax Reform: The New Paradigm in 2018, 2) Novogratz Nixes Crypto Hedge Fund Plans, 3) Investing: The Week, Investing Notes, 4) ICYMI Tech News.

1) Tech and Tax Reform: The New Paradigm in 2018
Silicon Valley tech companies, employees, entrepreneurs, and investors, will realize tax cuts and other benefits beginning in 2018, under the new tax reform just passed by Congress, contrary to weeks of politicized misinformation published by much of mainstream media. A multitude of beneficial impacts from the tax bill will soon be reality:
"The U.S. tax overhaul is a boon to Silicon Valley technology companies like Apple Inc (NASDAQ: AAPL) and Alphabet Inc (NASDAQ: GOOGL), which will enjoy big tax cuts and the chance to bring back billions of dollars from overseas at a reduced rate. And contrary to the dire warnings of California officials, a large swath of Bay Area workers and their families stand to get a tax break as well, even with new limits on state and local tax deductions ...  many in Silicon Valley stand to benefit. Startup employees, freelancers and venture capital investors are among those who will get new tax benefits or keep those they already have, tax experts said."--Reuters.com Dec 21, 2017 (emphasis added).
Treasury's Sayegh Says Tax Bill a Big Win For U.S.

Bloomberg.com video above published Dec 22, 2017: U.S. Treasury Assistant Secretary for Public Affairs Tony Sayegh discusses the recently passed tax bill, concerns about the deficit and the Trump Administration's agenda for 2018. He speaks with Bloomberg's Kevin Cirilli on "Bloomberg Markets." President Trump signed the bill on Friday, Dec 22, 2017, watch the unfiltered video here.

The Information Technology Industry Council (ITI) said in a letter to members of Congress that the bill will benefit the technology industry. Washington-based ITI lobbies on behalf of major technology firms like Google, Amazon, Oracle and IBM.--Major tech trade association backs GOP tax bill | TheHill.com.
  • Tax Reform Passed, Now What? “When the smartest guys say we’re ninth inning, we’re 7th inning, maybe 8th ... Late in the cycle, clever boys drown in dumb money ... And I can’t wait for this tax reform. I’m a trained economist you know, I know this stuff cold. It’s going to be like pouring gasoline on a fire,” he explained. “Trump promised us 5% GDP growth. Katie bar the door!”-- ZeroHedge.com
  • Credit Suisse Chief US Equity Strategist, Jonathan Golub, has estimated that corporate tax cuts in the U.S. could boost average earnings of companies in the S&P by about 8-10%--ZeroHedge.com
  • "It will help sustain a very strong year of earnings growth for U.S. and for global equities,” said Timothy Graf, State Street Bank & Trust head of macro strategy EMEA., speaking on Bloomberg TV. “It will keep sentiment robust”--Global Stocks Rise To Record Highs As Tax Reform Is "Priced In" All Over The World | ZeroHedge.com.
The Tech Stocks to Keep an Eye on in 2018

Bloomberg.com video above published Dec 15, 2017: Techonomy CEO David Kirkpatrick and Bloomberg's Cory Johnson discuss the outlook for tech stocks in 2018 with Bloomberg's Emily Chang on "Bloomberg Technology."

2) Novogratz Nixes Crypto Hedge Fund Plans

Bloomberg.com video published Dec 22, 2017: Michael Novogratz, the former Goldman Sachs Group Inc. and Fortress Investment Group LLC macro trader, is putting aside his plan for a cryptocurrency hedge fund and predicts that Bitcoin will plunge to $8,000. Bloomberg's Erik Schatzker reports on "Bloomberg Markets."

See also:

3) Investing
graphic: "INVESTING"  ©2017 DomainMondo.com
The Week: investors "cashing out their losers" before the close of the year next week, dropped markets slightly on Friday, but for the week, the Dow, S&P 500 and NASDAQ all posted their fifth straight weekly gain"Large-cap US index on track to deliver returns, including dividends, every month of the year."--S&P 500 set to break record with ‘perfect’ calendar year | FT.com.

2018 Forecasts are being rewritten after passage of the tax reform bill: Jonathan Golub of Credit Suisse Group AG now predicts that the S&P 500 index (Friday: 2,683.34) will end next year at 3,000, up from his previous target of 2,875.

Investing Notes
  • MacroView: In the U.S, the economy grew at its fastest pace in three years during the third quarter this year, while the economy of the eurozone is on pace for its largest expansion in a decade. In October, the International Monetary Fund raised its outlook for global economic growth to a rate of 3.7 percent in 2018, helping to push emerging market stocks up to six-year highs. Economic optimism soaring, boosting Trump's Approval Rating: CNBC.com survey.
  • President Donald Trump's chief economist Gary Cohn is staying in the Trump administration, contrary to media reports, after successfully steering a tax reform package through Congress. "It's a once in a lifetime opportunity," Cohn said during an Axios.com event in Washington.

4) ICYMI Tech News:
graphic: "ICYMI Tech News" ©2017 DomainMondo.com
  • A Reuters/Ipsos poll of 2,644 adults, released December 20, 2017, shows 60 percent of online shoppers in the U.S. planned to do most of their holiday buying on Amazon.com, up from 50 percent for the same period in 2015, while the number of shoppers who said they expected to do most of their holiday shopping at Walmart.com, Target.com and Macys.com declined by about 1 percent.
  • Xiaomi's 2017 profit to exceed $1B based on company's $17B-$18B revenue estimate; $2B profit expected in 2018, makes $100B IPO value “reasonable”--reuters.com
  • Snap Inc. $SNAP To End 2017 With No Profit In Sight: "Unless SNAP focuses on cutting costs, it will not see positive profit for years to come. Furthermore, Snap's R&D investments, like Spectacles, may not ever yield positive results or revenue"--SeekingAlpha.com.
  • Ultimate Snub: Google brings Chrome to the Windows Store as just a download link--TheVerge.com--but Microsoft quickly removed it--here's the "must have."
  • BuzzFeed CEO Jonah Peretti criticizes Google and Facebook in newsroom memo, says media is in crisis--"The media is in crisis. Google and Facebook are taking the vast majority of ad revenue, and paying content creators far too little for the value they deliver to users."--buzzfeed.com
  • How far ahead is Google Maps over Apple Maps? Google has a 6+ year lead over Apple, with Google Maps' data of buildings and “Areas of Interest” from its aerial, satellite, and Street View imagery--justinobeirne.com.
From the Reuters feed:

-- John Poole, Editor, Domain Mondo  

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