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Life-threatening Covid complications appear to be getting worse in India. The United States proposes a comprehensive corporation tax of 15%. Israel and Hamas agree to a ceasefire. Here’s what you need to know to start your day.
The United States proposed that countries agree to a 15% minimum corporate tax in the world in international negotiations to end competition to attract business through cheap rates. The offer, which came during discussions this week, brings the US position closer to the 12.5% rate that was discussed at the OECD. Low-tax countries like Ireland were skeptical of the 21% rate proposed by the United States, and British officials are also concerned that the rate will be too high in the long run. Here’s an explanation of the global tax proposal, which columnist David Fickling says would be just as shock to the international economic order like Trump’s trade war with China.
A look at Asian equities is expected to rise on Friday after tech companies led a Wall Street rebound on economic optimism and allayed concerns about a reduction in the US stimulus. Futures were in the green in Japan, Australia and Hong Kong. Yields on the Treasury and the dollar have fallen. Gold has been roughly the highest price for over four months. Oil prices fell to their lowest in nearly a month as traders assessed the likelihood of a new nuclear deal with Iran.
Cryptocurrency Markets are stabilizing after a $ 500 billion Bitcoin erasure quelled a series of speculative excesses that had been building for months. Signals through virtual currency Complex leveraged issuance positions are eliminated as bottom buyers emerge – contributing to a return to $ 40,000 for the world’s largest token. Tesla CEO Elon Musk tweeted Thursday that audits of renewable energies used by big Bitcoin miners could help allay concerns about the cryptocurrency’s environmental impact. The crash was actually a big win for cryptocurrencies, says columnist Jim Bianco.
Rare, Life-threatening complications from Covid-19 appear to be worsening in India, including an invasive fungal infection – mucormycosis – and dangerous inflammatory syndrome in children. In Singapore, the Shangri-La Dialogue event scheduled for June 4 and 5, which attracts senior military officials and diplomats, was canceled following an increase in the number of cases. Taiwan says the US vaccine aid would help support its critical semiconductor industry. Protection against vaccines is expected to decrease, but no one knows when. Meanwhile UK cases of the Indian variant have more than doubled in a week and EU plans for vaccination certificates boost hopes of a rebound in summer tourism.
Morgan Stanley CEO James Gorman has positioned two lieutenants – Ted Pick, the architect of Morgan Stanley’s business renaissance, and Andy Saperstein, who made the company a wealth management powerhouse – as his most likely successors. The change came just after JPMorgan pushed two women, Marianne Lake and Jennifer Piepszak, to the front of the pack to succeed Jamie Dimon. For years, banks have come under pressure from investors and Congress to diversify their leadership. But while the most important jobs remain predominantly held by white men, and at Morgan Stanley, it appears to be not about to change.
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And finally, here’s what interests Cormac today
Despite recent swings in tech stocks and volatility risky assets like cryptocurrencies, the global stock market has been remarkably unfazed for over six months now. The MSCI AC World Index has not seen a 5% pullback since November, the longest streak of calm since 2017, according to data compiled by Bloomberg. Yet earlier periods of a similar magnitude with no minor setbacks – at least in a study of US stocks – led to poor returns in the following month, Jason Goepfert, founder of Sundial Capital Research, wrote in a note. recent. And market participants increasingly feel that a modest correction could be expected.
Last week, Morgan Stanley became the latest investment firm to sound the alarm on the impact of a potentially overheated global economy as concerns grow over rising inflation. UniCredit strategists had previously suggested that risk-free trading would become more likely, while T. Rowe Price peers said stocks are vulnerable to potential pullbacks amid spiking global economic growth. The odds lengthen on the calm streak that lasts all summer.
Cormac Mullen is a reporter and editor for Bloomberg News.