Consumer credit rises at slower pace
WASHINGTON -- American consumers increased their borrowing at a slower pace in June, as the category that includes auto and student loans posted the smallest gain in a year.
The Federal Reserve said Monday that overall consumer credit expanded by $12.4 billion in June, down from May's $18.3 billion increase and less than economists had been expecting.
The credit report is closely watched for clues about the direction of consumer spending, which accounts for about 70 percent of economic activity.
Non-revolving credit, which includes auto and student loans, rose $8.3 billion, down from an $11.4 billion jump in May and the smallest amount since a $7 billion increase in June 2016. The category that includes credit cards climbed $4.1 billion, down from May's $6.9 billion gain.
The June increase brought consumer credit to a fresh record of $3.86 trillion. The Fed's monthly credit report does not include mortgages or other debt secured by real estate, including home-equity loans.
-- The Associated Press
IBM will appeal $78M Indiana ruling
INDIANAPOLIS -- IBM said Monday it will appeal a ruling ordering it to pay Indiana $78 million in damages stemming from the company's failed effort to automate much of the state's welfare services.
New York-based IBM Corp. said in an email Monday that it worked "diligently and invested significant resources" toward improving Indiana's system for processing welfare applications.
Indiana and IBM sued each other in 2010 after then-Gov. Mitch Daniels canceled the company's 10-year, $1.3 billion contract after numerous complaints.
An attorney for the state, Peter Rusthoven, said the judge's ruling "vindicates" the state's actions.
The Indiana Supreme Court ruled last year that IBM breached its contract and directed the trial court to calculate the damages.
-- The Associated Press
Nations say tax laws hurt EU tech firms
PARIS -- France is working with Germany and other partners to change laws that have allowed U.S. tech giants Google, Apple, Facebook and Amazon to minimize taxes and grab market share in Europe at the expense of the continent's own companies.
France will propose the "simpler rules" for a "real taxation" of tech firms at a meeting of European Union officials due mid-September in Tallinn, Estonia, French Finance Minister Bruno Le Maire said in an interview in his Paris office on Friday, complaining that Europe-wide initiatives are proving too slow.
"Europe must learn to defend its economic interest much more firmly -- China does it, the U.S. does it," Le Maire said. "You cannot take the benefit of doing business in France or in Europe without paying the taxes that other companies -- French or European companies -- are paying."
The push reflects mounting frustration among some governments, regulators and voters at the way international firms sidestep taxes by shifting profits and costs to wherever they are taxed most advantageously -- exploiting laws or special deals granted by friendly states.
Germany and France discussed tax issues at a joint Cabinet meeting last month, and Germany can be expected to discuss specific proposals after its national election on Sept. 24, Denis Kolberg, a finance ministry spokesman, told reporters in Berlin on Monday.
-- Bloomberg News
Trump division seeks casino trademark
SHANGHAI -- A Trump Organization company has applied for four new trademarks in the Asian gambling hub of Macau, including one for casinos, public records show.
The new applications highlight the ethical complexity of maintaining the family branding empire while Donald Trump serves as president, and are likely to stoke speculation about the organization's future business intentions in Macau, where casino licenses held by other companies come up for renewal beginning in 2020.
The applications for the Trump brand were made in June by a Delaware-registered company called DTTM Operations LLC. They cover gambling and casino services, as well as real estate, construction and restaurant and hotel services. The applications were first reported by the South China Morning Post.
The new applications are identical to four marks applied for in 2006, and granted, but lapsed earlier this year. It was not clear from public records why, though under Macau law trademarks can be forfeited for non-use. There are currently no Trump-branded businesses in Macau.
-- The Associated Press
Business on 08/08/2017