Trump makes deal with Softbank; 50$ billion and 50k jobs into the US

[Seraphim]

http://www.zerohedge.com/news/2016-12-06/trump-tweets-japans-softbank-will-invest-50-billion-us-create-50000-new-jobs

[presence]

Another sweetheart deal for the billionaire class I'm sure... meanwhile another small business closes its doors because it still has to play by the rules.

[CPUd]

Report: Sprint to cut $1B by moving towers to government-owned land, backhaul to microwave
by Colin Gibbs | Jan 15, 2016 1:18pm


Sprint (NYSE:S) is moving forward with plans of a "radical overhaul of its cellular network," according to Re/code, in a move that could save as much as $1 billion.

The carrier will relocate its towers from space leased from Crown Castle and American Tower to government-owned land where rent is cheaper, Re/code reported. The move could begin as early as June.

Additionally, Sprint is looking to trim backhaul expenses by moving away from fiber-optic cables owned by AT&T and Verizon, for which it pays roughly $1 billion a year. Instead, the company plans to use microwave technology to link its cell towers to telecom networks.

While microwave technology isn't widely used by U.S. carriers, Ericsson predicts that it will become the dominant backhaul by 2020, handling backhaul for 65 percent of cell sites. Microwave not only delivers improved capacity, according to Ericsson, but can be more viable financially than fiber in certain areas. Ericsson currently manages Sprint's network in a $5 billion deal the companies inked in 2009.

The moves are part of a broader effort by Sprint to slash costs by $2 billion to $2.5 billion. Sprint hasn't posted a profit since 2006, and CFO Tarek Robbiati has been working to cut expenses in an effort to reverse the company's financial slide.

Indeed, Sprint in December said it would take a $150 million charge for severance and other costs related to a round of layoffs expected to continue through this month.

"Every function is under scrutiny, whether it's finance or whether it's HR or whether it's legal," Robbiati said at an investor event late last year. "We have way too many overheads in the corporate office, in sales and marketing -- in marketing itself, we are not very good at targeting marketing expenditure that is giving us the biggest bang for the buck."
http://www.fiercewireless.com/wireless/report-sprint-to-cut-1b-by-moving-towers-to-government-owned-land-backhaul-to-microwave

[eleganz]

This was already news a while ago regarding Softbank's push for a $100B investment fund, they were probably already eyeing US anyway but Trump's goal of 15% (will end up a little more) corporate tax probably helped push them over the edge.

[UWDude]

Another sweetheart deal for the billionaire class I'm sure... meanwhile another small business closes its doors because it still has to play by the rules.

Do you even know what softbank is?

http://archive.is/RNtDC

Do you know why this Washington Post article is fake news?

[Weston White]

Do you even know what softbank is?

A bank that refuses to handle bullion backed currencies? :cool:

[KEEF]

So that works out to 1,000,000 per job?

[phill4paul]

Another sweetheart deal for the billionaire class I'm sure... meanwhile another small business closes its doors because it still has to play by the rules.

50k working individuals support a hella lot of small businesses. Carpenters, plumbers, electricians, restaurant owners, etc. etc.

[dean.engelhardt]

I question is; is this happening because of free market forces or is the federal government pick winners and losers? I'm happy if foreign investors want to invest in the US on a level playing field, but if Trump get this deal by creating barriers of entries against American entrepreneurs, his is doing this country a great disservice.

[gaazn]

It is very clear that Trump is positioning China as an enemy. That Japanese company investing in the USA instead of in China means more money into US and less into China, so it's a big economic swing. China's not going to have any allies.

[presence]

Do you know why this Washington Post article is fake news?

If the news was "fake", whatever the fuck that means, stock prices would not soar upon word of the latest entitlements gleaned by the billionaire class from dignitaries.



Taipei (AFP) - Taiwan's tech giant Foxconn confirmed Wednesday it is in talks over a new US investment, while SoftBank shares soared after President-elect Donald Trump unveiled a $50 billion deal with the two firms.

https://www.yahoo.com/news/softbank-shares-soar-trump-boasts-50-bn-deal-045249239--finance.html

[presence]

I question is; is this happening because of free market forces or is the federal government pick winners and losers? I'm happy if foreign investors want to invest in the US on a level playing field, but if Trump get this deal by creating barriers of entries against American entrepreneurs, his is doing this country a great disservice.

The barriers to free market are already entrenched for the rest of us.
Trump makes these deals by exempting his rich friends from the regulations small business has to play by.
Then he can call it "special tax breaks" and "special regulatory relief"
so the political right cheers on the tokenism which, relatively and invariably, drives mom and pop into the red.
Free markets for the politically connected power hitters. Fascism and communism for their competition.
#MAGA

[presence]

50k working individuals support a hella lot of small businesses. Carpenters, plumbers, electricians, restaurant owners, etc. etc.

It is sad to see you so quickly deceived.

[asurfaholic]

It is sad to see you so quickly deceived.

Well it's true. I don't think that acknowledging that simple fact implies that anyone thinks it's ok if the government picks winners and losers. Obviously we'd all prefer if banking giants weren't so influential and the environment allowing for small local banks to thrive.

[presence]

"Softbank" has 1/10 of a TRILLION dollars in debt on its balance sheets.



"This is Masa of SoftBank from Japan and he's just agreed to invest $50 billion in the United States and 50,000 jobs," Trump told reporters.

[]

SoftBank declined to comment on details, but the funds will likely go towards acquisitions

[]

including start-ups

[]

There have been growing concerns about its balance sheet with SoftBank carrying more than $100 billion in debt.

https://www.yahoo.com/news/softbank-shares-soar-trump-boasts-50-bn-deal-045249239--finance.html

So foreign company with $100,000,000,000.00 in debt is going to "spend" an extra $50,000,000,000.00 acquiring 50,000 jobs worth of US owned small businesses because of special entitlements (and/or relief from regulation the small businesses themselves would have had to follow) promised by an elected official.

and this is a "net positive"

5429

[bunklocoempire]

Swamp Tower is really shaping up.

[Seraphim]

The barriers to free market are already entrenched for the rest of us.
Trump makes these deals by exempting his rich friends from the regulations small business has to play by.
Then he can call it "special tax breaks" and "special regulatory relief"
so the political right cheers on the tokenism which, relatively and invariably, drives mom and pop into the red.
Free markets for the politically connected power hitters. Fascism and communism for their competition.
#MAGA

Look, he has not gotten into office yet. He has pledged to remove barriers, regulations and taxes for everyone in America. EVERYONE.

We are still in wait and see mode to see how it all plays out, but Trump is uniformly hated by the MSM (except Fox). There's a reason for that. He has pledged to end the current state of affairs and level the playing field.

[phill4paul]

It is sad to see you so quickly deceived.

Ya, it would really suck to have investment companies set up shop in America. We have the best welfare. Why would we want to put people back to work?

[fcreature]

"Softbank" has 1/10 of a TRILLION dollars in debt on its balance sheets.



https://www.yahoo.com/news/softbank-shares-soar-trump-boasts-50-bn-deal-045249239--finance.html

So foreign company with $100,000,000,000.00 in debt is going to "spend" an extra $50,000,000,000.00 acquiring 50,000 jobs worth of US owned small businesses because of special entitlements (and/or relief from regulation the small businesses themselves would have had to follow) promised by an elected official.

and this is a "net positive"

5429

10 pages of back and forth argument in the Carrier thread has already shown that these fools have no understanding or grasp of basic economics. I'm not sure why you are bothering.

[presence]

EVERYONE.




5431

[Seraphim]

"Softbank" has 1/10 of a TRILLION dollars in debt on its balance sheets.



https://www.yahoo.com/news/softbank-shares-soar-trump-boasts-50-bn-deal-045249239--finance.html

So foreign company with $100,000,000,000.00 in debt is going to "spend" an extra $50,000,000,000.00 acquiring 50,000 jobs worth of US owned small businesses because of special entitlements (and/or relief from regulation the small businesses themselves would have had to follow) promised by an elected official.

and this is a "net positive"

5429

Softbank also has 1.8$ Trillion (USD) in AUM.

The 100B debt figure means nothing without context.

Softbank has 18x their debt in assets under management. I'm not saying they are in a good (or bad) fiscal position. But they don't have 100B in debt without assets on the other side.

[Seraphim]

5431

I'm not American. I'm not getting played either way.

Curious how you left out the part of my post that stated "We are still in wait and see mode to see how it all plays out".

All I've done is pointed out what Trump has stated he wants to do (across the board massive tax reductions for everyone and less regulation so small and meduium businesses can start up and compete with the multi national behemoths currently privileged through law).

Again: wait and see.

[Zippyjuan]

Solyndra?

[presence]

Solyndra?

drumroll while we wait for the right to tell us how in their infinite technocratic wisdom those entitlements were worse than these entitlements

[phill4paul]

drumroll while we wait for the right to tell us how in their infinite technocratic wisdom those entitlements were worse than these entitlements

What "entitlements?" How much is the U.S. going to loan this bank?

[presence]

5433



What "entitlements?" How much is the U.S. going to loan this bank?

well whatever it was (the details were not publicly disclosed) caused their softbank to rise 6% above the general market same day

probably one of those 4D chess moves which will really end up helping small business

[UWDude]

Ya, it would really suck to have investment companies set up shop in America. We have the best welfare. Why would we want to put people back to work?

Investment company, eh? IS that what softbank is?


If the news was "fake", whatever the $#@! that means, stock prices would not soar upon word of the latest entitlements gleaned by the billionaire class from dignitaries.

Billionaire class. Why do you say that?


What "entitlements?" How much is the U.S. going to loan this bank?

This is funny.


well whatever it was (the details were not publicly disclosed) caused their softbank to rise 6% above the general market same day

probably one of those 4D chess moves which will really end up helping small business

Hey expert on the economy, the softbank deal, et al....


Softbank isn't a bank, dork. That's what you get for reading fake news, like the washington Post. (http://archive.is/RNtDC)

It is a telecommunications company.

But please, tell us more about softbank, this deal, and how horrible it is for capitalism. You seem to know so much about it.

LOLOLOLOLOL!

(that funny tirade about the $100B in debt was good too!)

BTW, I remember when everybody here was saying quantitative easing was going to make gold, silver and inflation skyrocket. I even bought up a bunch of silver, and was saying it too!

Guess what!?

WRONG! DIDN'T HAPPEN.

So I trust all your economic expertise a little bit less now, shall we say?

[phill4paul]

Investment company, eh? IS that what softbank is?



Billionaire class. Why do you say that?



This is funny.


Hey expert on the economy, the softbank deal, et al....


Softbank isn't a bank, dork. That's what you get for reading fake news, like the washington Post. (http://archive.is/RNtDC)

It is a telecommunications company.

But please, tell us more about softbank, this deal, and how horrible it is for capitalism. You seem to know so much about it.

LOLOLOLOLOL!

(that funny tirade about the $100B in debt was good too!)

BTW, I remember when everybody here was saying quantitative easing was going to make gold, silver and inflation skyrocket. I even bought up a bunch of silver, and was saying it too!

Guess what!?

WRONG! DIDN'T HAPPEN.

So I trust all your economic expertise a little bit less now, shall we say?

Some of those quotes weren't mine. Please reformat your post.

As to the ones that were mine. What do you call a company that is investing $50 billion and creating 50k jobs? What exactly do you find "funny?"

[UWDude]

What do you call a company that is investing $50 billion and creating 50k jobs? What exactly do you find "funny?"

Softbank, a telecommunications company, investing in telecommunications infrastructure and technologies and R&D.

[phill4paul]

Softbank, a telecommunications company, investing in telecommunications infrastructure and technologies and R&D.

And that is "funny," why?

[UWDude]

And that is "funny," why?

Because people were talking about how much they knew about this, and how it was "for the elite" and a "rip off" and blah blah blah, and were calling it a bank. That is funny when people act like experts on a subject when they don't even know what the damn company is. That is hilarious!

[phill4paul]

Because people were talking about how much they knew about this, and how it was "for the elite" and a "rip off" and blah blah blah, and were calling it a bank. That is funny when people act like experts on a subject when they don't even know what the damn company is. That is hilarious!

Ah, gotcha. I should have used quotation marks. The same as when I was referring to an "investment company." Mea culpa.

I think it is great. Hope more choose to "bank" on America by "investing."

[Jamesiv1]

The question is; is this happening because of free market forces or is the federal government pick winners and losers? I'm happy if foreign investors want to invest in the US on a level playing field, but if Trump get this deal by creating barriers of entries against American entrepreneurs, his is doing this country a great disservice.
I don't keep up with the mongo trade deals the US makes with other countries, but I believe the Trumpmeister when he says other countries have been kicking our ass for years - and China is probably top of the list. Sounds to me like Trump is maneuvering to say, "Yo China. The party's over."

[eleganz]

Another sweetheart deal for the billionaire class I'm sure... meanwhile another small business closes its doors because it still has to play by the rules.

Any reasonable business owner would accept a tax break. You think just because you weren't offered a tax break that you're morally above those who are?

[presence]

Any reasonable business owner would accept a tax break. You think just because you weren't offered a tax break that you're morally above those who are?

The superior man compares what should be to what is, rather than what was to what is when passing judgment.

What was: we all were treated equally; the playing field was even albeit taxed/regulated.
What should be: we all should be treated equally; but we should not be taxed/regulated.
What is: we are not treated equally; the playing field is distorted and most of us are still taxed/regulated;
while one privileged peer profits through state violence upon the rest of us.

If there is law to be respected it should at its onset be impartial and general.

Crony Capitalists expect special tax breaks and entitlements which inflate their market position above their peers.
Crony Capitalists desire to have everyone around them regulated and taxed while they operate freely.
Crony Capitalists seek a society where acts of violence are taken on their behalf, by the state, to stomp out competition.

Any reasonable honest business owner expects free markets undistorted by politics.

While I am first to stand with any man who rebels and refuses to pay taxes and submit to regulation in an act of revolution,
I cannot stand with the man who selfishly and violently seeks to legitimize and legalize a state where everyone else pays tax and is regulated while he is personally unencumbered.

[nikcers]

I don't keep up with the mongo trade deals the US makes with other countries, but I believe the Trumpmeister when he says other countries have been kicking our ass for years - and China is probably top of the list. Sounds to me like Trump is maneuvering to say, "Yo China. The party's over."

You can't be a pimp and a prostitute too.