With a 35% holding in e-cigarette maker Juul, Altria is betting it can turn its older consumers into fans of vaping. Altria's expertise in dealing with the FDA is a major asset that Juul lacks, and its access to a cohort of longtime tobacco using customers is exactly what the start-up needs to avoid more scrutiny from regulators worried about kids vaping. Jennifer Maloney reports on the business tie-up in The Wall Street Journal: The tobacco giant has agreed to provide Juul with a range of services expected to include help to smooth over the e-cigarette maker’s rocky relationship with the … [Read more...]

At a speech honoring the 40th anniversary of Deng Xiaoping's economic reforms in China, President Xi Jinping was given the opportunity to build on that legacy by announcing new steps forward for China. He failed to deliver, as reported here by Gabriel Wildau of the Financial Times: “To promote reform and development in China — a large country with a more than 5,000-year history of civilisation and more than 1.3bn people — there is no textbook that can be regarded as a golden rule, and there is no great master who can dictate to the Chinese people,” Mr Xi told party leaders at the Great Hall … [Read more...]

Take a look back at this post from April 25, 2018 for a view into the power of the Right to Work.  A recent study by the Jefferson City-based Missouri Economic Research and Information Center (MERIC) estimates the average annual cost of living in 2017 for all 50 states. The National Institute for Labor Relations Research used MERIC’s data to calculate the average annual cost of living in Right to Work States and forced-unionism states. As of last year, 28 states are Right to Work—protecting employees from federal labor law provisions authorizing forced union dues and fees. Here are the … [Read more...]

You have clear evidence in the table below that allowing workers to choose whether or not to join a union really does matter. Take a look at the 10-year trend of workers in their peak earning years leaving New England—a region with forced unionism. Workers simply don't want to be forced to pay dues to fund efforts by the unions which they don't support. Whether that be political speech or contract negotiations that could put the corporations employing the union members in jeopardy. The National Right to Work Committee explains the correlation between forced unionism and population … [Read more...]

The heavy hand of government wants to regulate common stock repurchases. Sen. Elizabeth Warren is calling for an outright ban. Her colleague from New York wants to give the SEC the authority to reject buybacks that hurt workers. An additional ban or burdensome regulation on common stock buybacks is of course misguided. Almost as misguided as the 1993 limit on the deductibility of executive compensation that helped spawn the surge in common stock buybacks in the first place. The problem with buybacks is not that they deprive companies of capital as some in the political class contend. The … [Read more...]

For years companies have been asking for the SEC to fix broken ETF rules, and now the commission may finally be approaching a solution. Rachel Evans reports at Bloomberg: On June 28, the SEC will discuss whether to propose regulations that would allow asset managers to sell certain types of exchange-traded funds without first gaining its approval, according to the commission’s agenda. Under current rules, wannabe ETF issuers must get SEC permission -- a process known as exemptive relief -- before selling funds under the Investment Company Act of 1940. It’s wonky stuff, but the … [Read more...]

Yesterday I wrote to you about a risky change classifying municipal bonds as "high quality liquid assets." That change, though simple, could lead to increased spending by states and cities. This is obviously a danger given many states' indebted status, take for example the state of Illinois. A spiral of debt and taxes is driving residents out of the state, which in turn is worsening the state's revenue problem. Ben Bradley reports for WGN9 news from Chicago: 33,703. That’s how many residents left Illinois last year. People leave the state for a variety of reasons from weather to career … [Read more...]

Despite passing a major reform to the Obama-era Dodd-Frank financial regulation, Congress has unfortunately added a few unnecessary, and even risky, clauses to the bill. The one that worries me most classifies investment-grade muni bonds as "high quality liquid assets." Some, repeat some, muni bonds are high quality assets. Many are not, even some of those that hold investment-grade ratings. What's worse is that few muni bonds are very liquid. They typically aren't large enough to create the kind of investor pool necessary for high levels of liquidity. The editorial board at The Wall … [Read more...]

Employees join unions for two reasons; The first is that in many states they are forced to if they want certain jobs. The second is that they believe in some cases that union membership will benefit them financially. Perhaps it used to be the case that a union membership was a guarantee of a dependable pension and good benefits. Today though, joining a union for the big promises of a better retirement might be participating in a bout of collective hysteria. I'm not against unions, but I am against union leaders who lie to members about the reality of what union membership means. The … [Read more...]

A new law requiring communities to report their underfunded retirement plans is revealing some bad news in Michigan. The report shows that nearly a quarter of the state's local government units have underfunded their pensions or retirement health care plans, or both. CBS Detroit reports on the bad news: The list includes metro Detroit hubs like Southfield, Berkley, Flint, Centerline, Eastpointe, Mount Clemens, New Baltimore, Romeo, St. Clair Shores, Warren, Hazel Park, Grosse Ile, Hamtramck, Highland Park, Lincoln Park, Grosse Pointe Farms and Grosse Park Woods. The report is meant … [Read more...]