Monday, Aug. 09, 1999
Your Money
By Julie Rawe
EURO TRASH New to the U.S. market, high-yielding euro junk bonds are posting big returns while "safe" investments such as 10-year T bills are faltering. Why the appeal? Europe is deregulating its markets, stirring growth, competition and M&A activity similar to the U.S. in the '80s. The weakened euro is also expected to rebound against the dollar, but currency trading and high-yield bonds are risky. Don't bet the farm.
FOOD FIGHT Roquefort cheese, truffles, chocolate bars, foie gras--the U.S. slapped 100% tariffs on these and other gourmet imports after Europe failed to lift its 10-year ban on American beef treated with growth hormones. The $116.8 million hit list, approved by the World Trade Organization, follows recent U.S. sanctions on items from coffee makers to cashmere over the E.U.'s discriminatory banana-import rules.
TAX POLICE The IRS is conducting fewer audits these days, a result of budget constraints, reduced staffing and a shift in manpower to its customer-service department. Agents will conduct face-to-face exams on an estimated 0.38% of all individual income-tax returns this year, down from 0.51% in 1998 and 0.65% in 1997. While audits are down across the board, those with high incomes or who file business schedules remain the most frequently targeted groups.
--By Julie Rawe