Apple tax row raises $2.1 trillion question for forex tradersLONDON (Reuters) - If the fallout from a huge EU tax bill handed to Apple includes a push to encourage U.S. firms to bring more profits onshore, recent history suggests the impact for the dollar can only be positive.  U.S. presidential candidates Donald Trump and Hillary Clinton have both promised to take steps that would encourage major companies to bring home more of the estimated $2.1 trillion in as-yet-untaxed income they hold offshore.  That amount compares to the roughly $300 billion brought back in 2005 under George W. Bush’s Homeland Investment Act (HIA), which slashed the effective tax rate on repatriated funds from 35 percent to 5.25 percent.  As this graphic tmsnrt.rs/2cymacf shows, the dollar rose around 10 percent that year against both the euro and the basket of currencies that measures its broader strength, even if analysts still argue about how far that move was driven by the tax scheme.  Against the yen in the same period it rose 15 percent.   “The fact that U.S. corporations hold larger cash piles offshore than ever is a reason why a new repatriation tax holiday could be a bigger boost for the dollar than in 2005,” Morgan Stanley said in a report in July.  “Though we stress the headline number for offshore earnings overstates the unhedged foreign currency amount, which is relevant for FX markets.” The U.S. bank also lays out tables of data that it says show where the most money has accumulated. Some 56 percent of funds have been reinvested in Europe, including 12 and 19 percent in Ireland and the Netherlands respectively, compared to 7 percent each in traditional tax havens like Bermuda or Singapore. But a trawl through the accounts of the biggest U.S. corporate holders of funds oversees suggests that much of these funds are held in dollars - meaning little or no money would have to be exchanged from, say, euros into dollars.  Apple, for example, said last year its $186.9 billion in cash and cash equivalents held by foreign subsidiaries were “generally based in U.S. dollar-denominated holdings”.  As of June 30, 92 percent of Microsoft’s $113 billion was in U.S. government and agency securities, corporate debt or mortgage-backed securities. Given that in 2004 only around $300 billion of an estimated $500 billion in untaxed offshore funds were brought home, that suggests many firms’ repatriations might not involve any foreign exchange at all. Citigroup chief currency strategist Steven Englander said that even the simple return of dollars to the United States is likely to have a big impact on the currency.  “The dollar money would come back into U.S. equity markets quicker than the non-dollar cash,” he said.  “It would be very good for U.S. equity markets and would probably attract foreign money into the U.S., pushing up U.S. yields in a risk-friendly way. It would be very dollar-positive.” Englander, who also studied the issue in detail the last time a new repatriation act was being talked up in 2011, says the figure for the amount currently being held abroad is something like $2.5 trillion. Converting even a small share of that huge sum from foreign currencies could be significant. “No one knows the currency breakdown for sure. 80 percent in dollars sounds reasonable. So 20 percent of $2.5 trillion is a big number,” he added. politicsNews
apple tax row raises trillion question forex traderslondon reuters if fallout huge eu tax bill handed apple includes push encourage firms bring profits onshore recent history suggests impact dollar positive presidential candidates donald trump hillary clinton promised take steps would encourage major companies bring home estimated trillion income hold offshore that amount compares roughly billion brought back george bush homeland investment act his slashed effective tax rate repatriated funds percent percent as graphic shows dollar rose around percent year euro basket currencies measures broader strength even analysts still argue far move driven tax scheme against yen period rose percent the fact corporations hold larger cash piles offshore ever reason new repatriation tax holiday could bigger boost dollar morgan stanley said report july though stress headline number offshore earnings overstates unhedged foreign currency amount relevant fx the bank also lays tables data says show money accumulated some percent funds invested europe including percent ireland netherlands respectively compared percent traditional tax havens like bermuda singapore but trail accounts biggest corporate holders funds oversees suggests much funds held dollars meaning little money would exchanged say euros dollars apple example said last year billion cash cash equivalents held foreign subsidiaries generally based holdings as june percent microsoft billion government agency securities corporate debt securities given around billion estimated billion unnamed offshore funds brought home suggests many firms repatriation might involve foreign exchange citigroup chief currency strategist steven england said even simple return dollars united states likely big impact currency the dollar money would come back equity markets quicker cash said it would good equity markets would probably attract foreign money pushing yields way it would england also studied issue detail last time new repatriation act talked says figure amount currently held abroad something like trillion converting even small share huge sum foreign currencies could significant no one knows currency breakdown sure percent dollars sounds reasonable so percent trillion big number added politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Apple tax row raises $2.1 trillion question for forex tradersLONDON (Reuters) - If the fallout from a huge EU tax bill handed to Apple includes a push to encourage U.S. firms to bring more profits onshore, recent history suggests the impact for the dollar can only be positive.  U.S. presidential candidates Donald Trump and Hillary Clinton have both promised to take steps that would encourage major companies to bring home more of the estimated $2.1 trillion in as-yet-untaxed income they hold offshore.  That amount compares to the roughly $300 billion brought back in 2005 under George W. Bush’s Homeland Investment Act (HIA), which slashed the effective tax rate on repatriated funds from 35 percent to 5.25 percent.  As this graphic tmsnrt.rs/2cymacf shows, the dollar rose around 10 percent that year against both the euro and the basket of currencies that measures its broader strength, even if analysts still argue about how far that move was driven by the tax scheme.  Against the yen in the same period it rose 15 percent.   “The fact that U.S. corporations hold larger cash piles offshore than ever is a reason why a new repatriation tax holiday could be a bigger boost for the dollar than in 2005,” Morgan Stanley said in a report in July.  “Though we stress the headline number for offshore earnings overstates the unhedged foreign currency amount, which is relevant for FX markets.” The U.S. bank also lays out tables of data that it says show where the most money has accumulated. Some 56 percent of funds have been reinvested in Europe, including 12 and 19 percent in Ireland and the Netherlands respectively, compared to 7 percent each in traditional tax havens like Bermuda or Singapore. But a trawl through the accounts of the biggest U.S. corporate holders of funds oversees suggests that much of these funds are held in dollars - meaning little or no money would have to be exchanged from, say, euros into dollars.  Apple, for example, said last year its $186.9 billion in cash and cash equivalents held by foreign subsidiaries were “generally based in U.S. dollar-denominated holdings”.  As of June 30, 92 percent of Microsoft’s $113 billion was in U.S. government and agency securities, corporate debt or mortgage-backed securities. Given that in 2004 only around $300 billion of an estimated $500 billion in untaxed offshore funds were brought home, that suggests many firms’ repatriations might not involve any foreign exchange at all. Citigroup chief currency strategist Steven Englander said that even the simple return of dollars to the United States is likely to have a big impact on the currency.  “The dollar money would come back into U.S. equity markets quicker than the non-dollar cash,” he said.  “It would be very good for U.S. equity markets and would probably attract foreign money into the U.S., pushing up U.S. yields in a risk-friendly way. It would be very dollar-positive.” Englander, who also studied the issue in detail the last time a new repatriation act was being talked up in 2011, says the figure for the amount currently being held abroad is something like $2.5 trillion. Converting even a small share of that huge sum from foreign currencies could be significant. “No one knows the currency breakdown for sure. 80 percent in dollars sounds reasonable. So 20 percent of $2.5 trillion is a big number,” he added. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: apple tax row raises trillion question forex traderslondon reuters if fallout huge eu tax bill handed apple includes push encourage firms bring profits onshore recent history suggests impact dollar positive presidential candidates donald trump hillary clinton promised take steps would encourage major companies bring home estimated trillion income hold offshore that amount compares roughly billion brought back george bush homeland investment act his slashed effective tax rate repatriated funds percent percent as graphic shows dollar rose around percent year euro basket currencies measures broader strength even analysts still argue far move driven tax scheme against yen period rose percent the fact corporations hold larger cash piles offshore ever reason new repatriation tax holiday could bigger boost dollar morgan stanley said report july though stress headline number offshore earnings overstates unhedged foreign currency amount relevant fx the bank also lays tables data says show money accumulated some percent funds invested europe including percent ireland netherlands respectively compared percent traditional tax havens like bermuda singapore but trail accounts biggest corporate holders funds oversees suggests much funds held dollars meaning little money would exchanged say euros dollars apple example said last year billion cash cash equivalents held foreign subsidiaries generally based holdings as june percent microsoft billion government agency securities corporate debt securities given around billion estimated billion unnamed offshore funds brought home suggests many firms repatriation might involve foreign exchange citigroup chief currency strategist steven england said even simple return dollars united states likely big impact currency the dollar money would come back equity markets quicker cash said it would good equity markets would probably attract foreign money pushing yields way it would england also studied issue detail last time new repatriation act talked says figure amount currently held abroad something like trillion converting even small share huge sum foreign currencies could significant no one knows currency breakdown sure percent dollars sounds reasonable so percent trillion big number added politicsnews