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Livesquawk - US Briefing - Monday 26.04
US Briefing - Monday 26.04
Headlines
  • Biden’s 1970s-Era Taxes On Rich Collide With GOP, SALT Rebels
  • White House: Capital Gains Tax Rise Will Hit Only Richest 0.3%
  • WSJ: Centrist US Senators Signal Progress On Infrastructure Talks
  • EU: Would Be Open To Vaccine Certificate Travel Talks With UK
  • EU’s Dombrovskis: Sees Welcome Opening On US Digital Deal
  • German Apr. IFO Business Climate, Expectations Miss Estimates
  • RTRS: German Gvt Raises 2021 Growth View To 3.5% From 3%
  • Germany Faces Lockdown Till June; Curbs Fail To Lower Cases
  • NYT: EU Set To Let Vaccinated US Tourists Visit This Summer
  • FDA, CDC Lift Pause On Johnson & Johnson Covid-19 Vaccine
  • Italy Set To Issue New 3 Year & 30 Year Dollar Benchmark Bonds
  • Kremlin: Data, Location Of Putin-Biden Summit Not Yet Decided
  • Ukraine Pres: Already At Finish Line To Agree Donbass Ceasefire
  • China’s Economy Continues Booming After Record First Quarter
  • Westpac: Australia House Prices To Cool From Red-Hot Levels
  • Oil Buckles Under Pressure From India’s Covid-19 Resurgence
  • Libya's NOC Lifts Force Majeure On Marsa El Hariga Oil Port
  • Total Suspends Mozambique LNG Indefinitely On Security Threat
  • Copper Jumps To 2011 Highs As Demand Bets Reignite Rally
  • French FinMin: Auto Industry Aid Set To Be Extended In 2022
  • Kuehne & Nagel Q1 Earnings Soar On E-Commerce Demand
  • China Widens Internet Crackdown Via Meituan Monopoly Probe
  • Sanofi Agrees to Help Make Doses of Moderna’s Covid Vaccine
Commentary
Fed to Taper Bond Buying in Fourth Quarter, Economists Say

The Federal Reserve is expected to begin trimming its $120 billion in monthly asset purchases before the end of the year as the U.S. economy recovers strongly from Covid-19, according to economists surveyed by Bloomberg. That’s a bit earlier than forecast in the March survey but leaves Fed asset purchases untouched for several more months, with the first interest-rate increase still not expected until 2023. In contrast, the Bank of Canada said last week it would scale back its purchases of government debt and accelerate the timetable for a possible rate increase, though the European Central Bank meeting on April 22 left its crisis-fighting tools unchanged. (Bloomberg – Continue Reading)

Biden’s 1970s-Era Taxes On Rich Collide With GOP, SALT Rebels

President Joe Biden is poised to unveil a plan that would raise taxes on the income, investments and estates of the wealthiest Americans to levels not seen in more than four decades, a move that will trigger intense debate in Congress about whether and how to address income inequality. Biden’s “American Families Plan,” itself featuring the biggest expansion of federal support for lower-income and middle-class Americans in decades, will be offset by a series of tax increases on the wealthy, administration officials say. The president will unveil his program in a Wednesday night speech to Congress. To pay for a bill that could top $1 trillion, Americans earning over $400,000 will face higher marginal income tax rates. Those taking in $1 million or more will get hit with a levy of up to 43.4% on their capital gains. The last time rates got close to that, Jimmy Carter was president.

(Bloomberg – Continue Reading)

German Business Confidence Edges Higher But Falls Short Of Forecasts

Business managers expressed further enthusiasm about Europe’s biggest economy Monday, but they were less optimistic about the future after Germany instituted even harsher lockdown measures over the weekend, according to the April survey from Germany’s Ifo thinktank. The Ifo business climate index rose to 96.9 in April to beat last month’s mark of 96.6, but the headline number fell short of the 97.8 reading analysts were expecting. The expectations component fell unexpectedly to 99.5, to undershoot both the 101.2 market estimate and the upwardly revised 100.3 result from March. The overall April rise came on the back of improvement in the index’s current conditions component, which increased to 94.1, a mark just below the forecast but one higher that the upwardly revised 93.1 reading last month. The tenaciousness of the coronavirus in Germany and problems in the supply chain soured the mood, Ifo said. “Both the third wave of infections and bottlenecks in intermediate products are impeding Germany’s economic recovery.”  (LiveSquawk - Continue Reading)

Why UK Economy Looks Well Placed For Post-Pandemic Recovery

For the first time in what seems like forever, we can look back to 2020 and feel better. A year ago, we were in the dark about the future direction of the economy: forecasts were being downgraded on a daily basis; our understanding of coronavirus was nascent; and lockdown stretched ahead of us. Fast forward and the vaccination programme continues at pace, lockdown restrictions are easing and the economy has proven to be more resilient than we ever expected. Add in the additional support announced in the Budget, and the outlook is much better than we could ever have imagined 12 months ago. Without in any way wishing to play down the awful impact of the pandemic on individuals and society overall, the EY ITEM Club Spring Forecast 2021 strongly suggests that at the level of the overall economy, we will emerge with much less damage than we feared. EY ITEM Club expects the UK economy to grow by 6.8% in 2020, a significant upgrade from its forecast of 5% expansion in its January forecast. (EY – Continue Reading)

EU May Allow Vaccinated US Tourists This Summer

The European Union plans to open its doors this summer to U.S. tourists who’ve been fully vaccinated against Covid-19, the New York Times reported, citing the head of the bloc’s executive body. The change, which would come under certain conditions, would end the bloc’s more than one year ban of nonessential travel from most countries to limit the spread of the coronavirus. The latest move came after the “huge progress” of U.S. vaccinations and as talks advanced on both sides on the proof of immunity for visitors, allowing the governing body of the bloc to recommend a change in policy, according to the newspaper. “The Americans, as far as I can see, use European Medicines Agency-approved vaccines,” Ursula von der Leyen, president of the European Commission, was cited by the paper as saying. (Bloomberg – Continue Reading)

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