Author Topic: Blue wave in November portends badly for retailers: Wells Fargo analysis  (Read 53 times)

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Offline Ptarmigan

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Blue wave in November portends badly for retailers: Wells Fargo analysis
https://www.washingtonexaminer.com/news/blue-wave-in-november-portends-badly-for-retailers-wells-fargo-analysis

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A Democratic sweep could spell trouble for retailers, according to Wells Fargo.

A new report from the bank identifies two campaign promises by Joe Biden that would be especially troubling to retailers: his vow to increase the corporate income tax from 21% to 28% and raise the federal minimum wage to $15, up from its current $7.25 an hour.

If these two initiatives were to become law, retailers, on average, could see a “headwind” in earnings per share between 9% and 11%.

Biden’s vow to increase taxes would be the worst of them.

A blue wave could be bad for retailers.

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“September retail sales reflect the support of government measures and elevated savings that is being spent now that consumers are shopping again," he said.

Additional relief from Washington would put money in consumer’s pockets, but advancing such a plan is unlikely before the election, according to White House national economic council director Larry Kudlow.

“You only got … 18 days [until the election] … So, even if you made a deal, it would be almost impossible to execute,” he said on Friday.
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