Laura, Deutsche Bank, 2017 discussed on BTV Simulcast
Pretty Gupta and Sonali Bostic. Are standing by pretty. Let's start with you one of the markets reacting to today, it's all about that tech out performance today You really saw that in a reaction to that 10 year yield. Even look at the chart behind me right from the top. U. S. And P 500, the green ones that NASDAQ out performance once again that really caught my eye. It's not just big Tak lifting the major averages. Emily, You're also singing in the semi Conductors Index once again a very broad bid for tech. Today, I do wanna flip up the boards and look at the NASDAQ 100 because, of course, we know that's an index has had a little bit of pain. But look at this on a 30 year time frame, And I'm bringing this to you because I want you to go look at it in comparison to the 1999 tech bubble. You're seeing further along that charge every good luck coming out last week and saying that this ratio the NASDAQ 100 relative to the S and P 500 is the ratio you want to watch. And this is, of course, a chart of just the former, But if you were to look at them on a comparison basis, you can see those same bubble levels being tested right now, so extremely important from a macro point of view. Also important from a macro point of view is just how electric vehicles are really reacting. Of course, that was the story of the fourth quarter of 2020. But now just look at the outperforms that you're seeing compared to the likes of Tesla, which was, of course, the original electric vehicle named entered the S and P 500. You can really see the out performance in the drive E t F that holds all of those electric vehicle makers. Relative to Tesla, which is just up 0.3% in the last few months. Shonali over to you. Pretty of course, you know, we saw those retail traders happy into Bitcoin over the weekend and Bitcoin really coming down today. Trading a little over $5600. You know, Deutsche Bank is now saying that retail traders individuals ages 25 to 34 maybe spending about 50% of their stimulus checks on retail trades. Do you do sell sea rises in Bitcoin miners and brokerages that includes riot Blockchain Marathon Digital Boyett Voyager Digital Galaxy Digital That's Mike Nova gratis firm. But you also have the reddit and mean stock Still riding up word today, send out growers of America expressed costs all of those still up on the day. We do expect more retail checks to hit. Later this week, So keep an eye on those retail trade. Emily All right, Shonali. Thanks so much. And of course, we are beating the drum towards the coin based direct listing, which were expecting in a couple of weeks. Meantime, now that the stimulus has passed, President Biden is turning his attention to tax reform as he's planning the first major tax hike since 1993 joining us now Bloomberg's Laura Davis and Laura tell us what we know. About Biden's plan. Bike plan there. It was really kind of a twofold process that they're looking at first. They want to roll back the trump tax cut very short lives back in 2017. The corporate rate came down and looking at pushing the corporate tax rate back up to around 28%. Came for upper income taxpayers. Those earning about $400,000 more kick that tax rate back up to about 40% there as well. After those have been reversed. There's more ambitious plans that they're looking at looking at things like capital gains rates so low your taxes on investment, increasing those significantly, particularly for people who make a million dollars or more looking at small business taxation, looking at the estate tax is that there's a lot of plans in the works. Nothing is set yet, but they're they're trying to figure out you know how this fits into his broader infrastructure plan and how much they need to pay for with these tax increases. This as we're heading into taxis and crunch time, Laura what's a sort of time line for something like this to actually come together and get you know both parties on side? Well, this will be definitely slower moving that we saw with the stimulus bill that just passed. This is going to take Ah, lot of time for Congress to get sorted out. You know if they're calling it an infrastructure bill, But there really were looking at infrastructure, energy policy, education policy. Health policy s. Oh, they're Democrats kind of sorting out what will be in this broader Bill Pelosi's and Humor has kind of instructed lawmakers to work with Republicans working the other side of the aisle. It's unclear yet if this will be a bipartisan bill, or this will be similar to the stimulus legislation that Democrats will ultimately decide to go it alone. So they're kind of in that initial stages right now. I expect that will see more details come out later in the spring, you know, maybe around may over the summer that the negotiations will intensify and White House and leaders in Congress are looking to pass something early fall around September time. Well, I wonder if there's something about the optics of this, you know, with the administration want the U. S and most Americans to be through the pandemic crisis. You know when they're when they're hiking taxes, at least when it comes to vaccinations and more people getting back to work. And this is kind of one of the things that still kind of being figured out. They, the White House and congressional leaders have said they won't make the taxes retroactive. They won't go back to the start of 2021, for example. But they could kick in and soon a 2022. So they're very closely watching where the economy is where consumer sentiment is, you know with taxes, you could always phase them in, so maybe only have like a slight increase in year one. Over a several year period. All of those things are still to be decided. But that's one thing that the more cautious members of the administration are a little bit concerned about of doing too much too soon on the tax run. All right. Bloomberg's Lord Davison on the tax beat for us. Thanks So much for that update. We're gonna talking a lot more about the stimulus plan, as well as President Biden's proposed tax plan with special guest throughout the week. Join us. All week. Long as we mark the one year anniversary of the U. S Shut down, we will be joined by Uber CEO Dark cause Rajshahi, the CEO of Expedia, Peter Kern, Melinda Gates, co chair of the Bill Melinda Gates Foundation and CEO Pellet on John Foley just some of my guests on Bloomberg Technology this week. You don't wanna miss it. And speaking of one year since the pandemic. Next, I'll be speaking with Seattle's mayor Jenny Durkin, her insight on the critical decisions made early in the pandemic, how they paid off. Of course, you'll remember it.