American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
Trump does have some powerful tools that would not require approval from U.S. Congress.Politicsread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
As demand for lab monkeys continues to rise, U.S. scientists are reporting delays in research projects because they can't obtain enough animals, according to the National...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
Morgan Stanley's rich clients may have gotten surprised by their tax bills this year.
The bank's wealth management business was hit by an unexpectedly high outflow of deposits in the second quarter, which covers the April tax filing season, according to Chief Financial Officer Jonathan Pruzan.
Morgan Stanley had "greater-than-expected deposit outflows due in part to tax payments," Pruzan told analysts during a Thursday call. "We saw about $10 billion of outflows in the bank deposit program, some from larger tax payments."
Rich clients liquidate some investments every year to cover their tax bill, so presumably this was higher than what Morgan Stanley has seen in previous years. The likely culprit: Under the Trump administration's 2017 tax reform, the deduction for state income, sales and property taxes was capped at $10,000. That has widely been perceived as causing higher taxes for people living in New York, New Jersey and California, states that happen to have high property taxes and a disproportionate share of wealthy Americans.
"Some of these individuals have homes with $50,000 or $100,000 in tax bills for one home, and they have multiple homes, so they owed much more in taxes," said John Straus, managing partner at investment adviser Private Wealth Partners in Connecticut, another high-tax state. "People were most definitely surprised at the impact of the new tax bill."
High-net worth clients are typically worth $15 million to $25 million, said Straus, a veteran of the wealth management industry who has run businesses at Morgan Stanley, J.P. Morgan and UBS.
The mention of taxes came up during Morgan Stanley's second-quarter earnings call, when analysts probed executives on the impact of looming interest rate cuts on the business.
While the New York-based bank saw U.S. deposits shrink by $3.3 billion in the quarter to $175.8 billion, overall it was a strong showing for the firm's wealth management business: It posted record results that helped the company beat analysts' estimates for profit.