Taxing choices

Today's news headlines: 

‘Boris Johnson set for showdown with MPs after backing “Covid passports”’. Over the weekend, the UK government confirmed the country would continue easing restrictions as planned on the 12th April. Focus has understandably shifted towards how large sporting events, nightclubs and festivals can all return safely, with vaccine passports looking to be the solution. Such solutions do have the potential to be highly divisive, as already 41 Conservative MPs have stood up in opposition to the proposal, in addition to a member of Labour MPs. (Financial Times)

‘Janet Yellen calls for global minimum corporate tax’. After the successful implementation of the $1.9tn stimulus package, there are now rumblings of corporate tax rises surrounding the Biden administration. US Treasury Secretary Janet Yellen has voiced her support for a global minimum corporate tax rate to try and even the playing field for companies across the globe. Republicans have made clear that American businesses could lose their competitive edge if such a minimum was introduced. With a proposed corporate tax rate increase to 28% from 21% in Biden’s plan, there is potential that the low taxation of the last few years could be coming to an end. (Financial Times)

Today's events, rates, and data 

  • US markets rallied yesterday as service sector growth accelerated. The S&P 500 rose 1.4% while the Nasdaq lifted 1.7%. Cable has continued its steady climb, currently trading around the $1.39 level while EUR/USD has experienced modest gains, trading around $1.18. The US 10-year Treasury yield also remains high at 1.72%.

Today's events

China Caixin Services PMI: 54.3 vs 51.5 last month
Australia Interest Rate: 0.10% vs 0.10% last month
Spanish Unemployment Change: -59.1K vs 44.4K last month
Italian Monthly Unemployment Rate: 9:00am
Eurozone Unemployment Rate: 10:00am

Interbank rates

GBP/USD: 1.3906
GBP/EUR: 1.1774
EUR/USD: 1.1812
USD/CAD: 1.2528

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