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Good morning. President Donald Trump is zooming in on his next priority: Overhauling the tax code, so that corporate tax rates come down and middle-class taxpayers get a break, write Gerard Baker, Peter Nicholas and Michael C. Bender.
In a WSJ interview, Mr. Trump on Tuesday covered a range of topics, including potential tariffs on steel imports, the next chairman of the U.S. Federal Reserve and a post-Brexit trade deal with the U.K. Mr. Trump also said Apple Inc. had committed to build three new manufacturing plants in the U.S.
THE DAY AHEAD
Fed’s July policy meeting. Federal Reserve officials are likely to hold monetary policy steady at the conclusion of their two-day meeting Wednesday. Any changes in their policy statement will be scrutinized for clues about the path for interest rates and when they might start shrinking the Fed’s balance sheet.
Labor Dept. to review overtime rule. The U.S. Labor Department will begin the process of reconsidering rules around when workers are eligible for overtime pay with a request for public comment expected on Wednesday.
Volkswagen holds supervisory board meeting. Germany’s Volkswagen AG is holding a special supervisory board meeting following allegations that the company colluded for decades with competitors Daimler AG and BMW AG, Bloomberg reports. Daimler said Wednesday net profit rose slightly in the three months ended June 30.
Meanwhile, a former Volkswagen compliance executive agreed to plead guilty in the U.S. to criminal charges stemming from his alleged role in the auto maker’s yearslong diesel emissions cheating scheme. The U.K. on Wednesday pledged to ban the sale of new gasoline and diesel cars by 2040.
Toshiba board to weigh offers for chip unit. Toshiba Corp.’s board will meet on Wednesday to review offers for its chip unit from Western Digital Corp. and Taiwan’s Foxconn Technology Co., Reuters reports. The company is scrambling to sell the unit to cover losses from its bankrupt U.S. nuclear business Westinghouse Electric Co.
Boeing Co., Coca-Cola Co., Facebook Inc., Ford Motor Co., Nasdaq Inc., Paypal Holdings Inc. and State Street Corp. will report earnings today.
CFO JOURNAL EXCLUSIVE
Ryanair willing to pay to keep cash in banks. Negative interest rates won’t force Ryanair Holdings PLC to take money out of the bank, finance chief Neil Sorahan told Nina Trentmann.
Shareholders vote to allow virtual meetings at U.K. companies. At least a dozen companies in the U.K. have amended their bylaws this year to allow for AGMs to be held electronically. The move has been controversial in the U.S., Mara Lemos Stein writes for Risk and Compliance Journal.
Citigroup sets high targets. Citigroup Inc. led bank stocks higher Tuesday after telling investors it is aiming for $60 billion or more in capital returns to shareholders through 2020 and that it wants to earn $20 billion annually.
McDonald’s profits top expectations. McDonald’s Corp.’s second-quarter earnings rose 28% to $1.4 billion as a new line of burgers and its $1 dollar drink promotion helped reverse a sales slump in the company’s U.S. business.
GM earnings plunge. General Motors Co.’s second quarter profit slumped 42% due to costs linked to its pullback from Europe and other overseas markets, as the largest U.S. auto maker doubles down on continued strength in its home market.
AT&T profit up. AT&T Inc. kept losing phone and TV subscribers in its core U.S. market but enjoyed a more profitable second quarter, thanks to customers with bundled services.
Viacom mulls Scripps Network acquisition. Viacom Inc. is considering an acquisition of Scripps Networks Interactive Inc., operator of HGTV and Food Network, according to people familiar with the situation.
Time explores sale of U.K. magazine division. Time Inc. has hired an investment bank to explore a possible sale of its U.K. division and is in early-stage discussions with potential buyers.
Blue Apron co-founder to step aside. One of the founders of newly public Blue Apron Holdings Inc. is stepping down from executive leadership after the company’s rocky first month on the market.
Petronas ends Canadian LNG project. Petroliam Nasional Bhd. said it was ending its plan to build a natural-gas export terminal on Canada’s west coast, citing prolonged low natural-gas prices.
Peugeot reports higher income. Peugeot SA Wednesday said profit rose 4.1% in the first half as the French car maker continued to cut costs and hold the line on prices as it offset a drop in vehicle sales in its principal markets. Meanwhile, BMW said it will build its fully electric Mini in the U.K., starting 2019, the Financial Times reports.
Novo Banco launches debt swap. Novo Banco SA has launched a plan to raise €500 million from a bond exchange—a condition of its takeover by U.S. private-equity firm Lone Star Funds.
U.S. to issue more sanctions against Chinese entities. The U.S. soon will issue new sanctions against Chinese entities violating United Nations sanctions against North Korea, a State Department official said Tuesday. The U.S. House on Tuesday passed new sanctions that would punish Russia. It also voted to overturn a regulation that could make it easier for consumers to sue banks in groups.
SEC says it will police digital coin offerings. The U.S. Securities and Exchange Commission on Tuesday moved to restrain a hot new fundraising method involving sales of digital coins, saying rules meant for everyday stock sales may apply to these offerings, too.
Ford faces lawsuit over handling of faulty transmissions. An Australian regulator is suing Ford regarding a transmission that caused jerking while accelerating.
China’s HNA fails to secure CFIUS approval. HNA Group Co.’s planned investment in a U.S. in-flight entertainment provider has been scrapped after it failed to secure Washington’s approval, the Financial Times reports.
Celgene settles cancer drug lawsuit. Drugmaker Celgene Corp. agreed to pay $280 million to the U.S. and many state governments to settle a former sales manager’s lawsuit.
U.S. audit regulator sanctions accounting firm. The U.S. government’s audit regulator has barred the Hong Kong affiliate of accounting firm Crowe Horwath LLP from auditing U.S.-traded companies after the firm refused to cooperate with the regulator’s investigation of its work for a Chinese company.
HK rejects Morgan Stanley-backed IPO. Hong Kong’s stock exchange denied a listing application from Morgan Stanley-backed commercial insurance broker AMTD Strategic Capital Group.
U.S. consumer confidence climbs. The U.S. consumer confidence index rose to 121.1 in July, the second-highest reading since 2000.
U.K. posts lackluster growth. U.K. economic growth remained subdued in the second quarter of the year — a worrying sign for Britain’s economy just as the country enters complex exit negotiations with the European Union.
The Morning Ledger from CFO Journal cues up the most important news in corporate finance every weekday morning. Send tips, suggestions and complaints to the editor: email@example.com.