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Biden's $5.8 trillion budget plan is announced: raise taxes on the rich and businesses, and raise the defense budget
On Monday, March 28, EST, U.S. President Joe Biden unveiled an annual budget of $5.8 trillion for fiscal 2023, which proposes to raise taxes on the wealthy and businesses, in addition to providing billions of dollars in new spending for the U.S. Department of Defense and the Department of Justice. In addition, the White House expects a deficit of $1.15 trillion in fiscal year 2023.
In terms of increasing government revenue, the Biden administration proposes to raise the U.S. corporate tax rate from 21 percent to 28 percent; the top individual tax rate to 39.6 percent; and a minimum effective tax rate of 20 percent for households with assets of more than $100 million, which is expected to include 20,000 wealthy U.S. households. It should be noted that the unrealized appreciation of assets of these rich people (such as stocks) will also be counted in the tax base.
In addition, in response to a reporter's question, Biden said that his previous public remarks that Putin "cannot continue to be in power" were out of "anger" and did not plan to change policies and call for regime change.
The G7 unanimously rejected Putin's request to buy Russian gas in rubles
On Monday, local time, German Economy Minister Habeck, who holds the rotating presidency after the G7 ministerial meeting, said that the use of rubles (to buy Russian energy) is unacceptable and called on relevant companies not to obey Russian orders.
Russian presidential press secretary Peskov said on March 28 local time that Russia has begun to formulate a ruble settlement plan for natural gas exports, and if European countries refuse to pay in rubles, Russia will respond in due course. Peskov said it was clear that Russia would not provide gas for free. In the current situation, It is impossible and unsuitable for Russia to do charity to European customers.
Fed research suggests that fiscal stimulus may be an important reason for high inflation in the United States
According to researchers at the San Francisco Fed, U.S. consumer prices have risen faster than other advanced economies, and one reason may be the huge amount of government support provided to the American people during the pandemic.
"Fiscal support measures designed to address the significant impact of the pandemic on the economy could raise inflation by about 3 percentage points by the end of 2021, leading to this divergence," they wrote. "However, without these spending measures, the economy could fall into complete deflation, slowing growth, and the consequences would be more difficult to deal with."
Goldman Sachs: The U.S. stock rally is only short, and it will continue to fall in the next few weeks
The recent rally in U.S. stocks has attracted attention, and at the close of the market on Friday, the S&P and Dow indexes hit new highs for more than a month for several consecutive days. Not only did U.S. stocks fully recover all of their losses since the outbreak of the Russian-Ukrainian armed conflict on February 24, but the S&P, Dow and NASDAQ also rose 7.5%, 5.2% and 8.7% respectively from the close on February 23.
However, in the view of Tony Pasquariello, head of hedge fund sales at Goldman Sachs, the recent rally in the US stock market cannot be sustained at all, which can be said to be the standard "short-lived short-term rally in the bear market", and he further predicted that the US stock market will continue to fall in the next few weeks. He believes that the main resistance to the stock market rally is still the Hawkish turn of the Federal Reserve.
Citi: Fed Chairman Jerome Powell is trusting a faulty yield curve
Citi strategist Jason Williams said in his March 27 report that Powell mentioned last week that the widening gap between the forward implied yields of 3-month Treasury bills and the current 3-month yields shows that the risk of recession is low, thus "clearing the runway" for a 50 basis point rate hike for the Fed meeting in May.
"We think Powell was too much of a believer in the wrong yield curve," and "didn't get exactly what he thought," Williams wrote. Based in part on a deeply inverted Eurodollar futures curve from June 2023 to June 2024, Citi estimates that the risk of a U.S. recession over the next 12 months has risen to 20 percent from 9 percent in February.
U.S. stocks resumed
The three major indexes closed higher collectively, most of the technology stocks rose, tesla rose 8%
The three major U.S. stock indexes experienced intraday weakness on Monday and then pulled up higher in late trading. The NASDAQ rose 1.31 percent to a new high in more than two months, with the S&P 500 up 0.71 percent and the Dow up 0.27 percent.
Most of the leading technology stocks rose, with the best-performing Tesla closing up about 8%, Amazon, Microsoft up more than 2%, Netflix up more than 1.2%, Facebook parent company Meta up 0.8%, Apple up 0.5%, up ten consecutive trading days to create the longest consecutive day since 2010.
Popular Chinese stocks outperformed the broader market overall, with the Nasdaq Golden Dragon China Index (HXC) closing up nearly 1.8%. iQiyi closed up about 9.5%, Weilai Automobile rose more than 6.5%, Tencent Music rose more than 5%, Good Future rose more than 4%, Tencent ADR closed up 3.8%, and Station B rose more than 3%.
Tesla officially announced that it will submit a stock split proposal to the shareholders' meeting
Local time on Monday before market hours, $Tesla (TSLA. US)$ in Form 8-K filed with the SEC said shareholders will be required to vote at this year's annual general meeting to authorize additional shares to be split. Although the company did not specifically disclose the stock split plan, Tesla recorded an 8.03% surge on Monday based on the performance of the previous high-priced leading stocks after the announcement of the split.
It is worth mentioning that Tesla CEO Musk said on social media on Monday that he should have been infected with the new crown virus again, but there were almost no symptoms. The world's richest man had previously announced covid-19 infection in November 2020.
Passing down the iPhone SE, AirPods production Apple is still leveling the record of nearly twelve consecutive years
There were reports on Monday that $Apple (AAPL. US)$The company plans to cut iPhone SE production by 20 percent next quarter from its original plan, while reducing annual AirPods production by more than 10 million units. Affected by this news, Apple fell more than 1% at the opening of the market on Monday, but still pulled up and turned red and set the first record of ten consecutive gains since 2010, with a cumulative increase of 16.6% on the 10th.
10 consecutive rises! The game station rose nearly 25% more, and was increased by two executives
The CEO says he plans to expand his external M&A business! AMC Cinemas shares soared nearly 45%
$AMC Cinema Line (AMC. US)$
Shares surged nearly 45 percent at $29.33. Previously, the company's CEO said it was planning more strategic deals to take advantage of some of the more than $1 billion raised from retail investors last year. AMC Cinemas announced in mid-March the purchase of a 22% stake in gold and silver mining company Hycroft Mining Holding Corp. So far, Aron's deal with Hycroft has been successful.
Xiaopeng's fourth-quarter revenue was 8.56 billion yuan, an increase of 200.1% year-on-year
Charlie Munger relinquished the title of chairman of the Daily Journal Company
In the latest Form 8-K filed with the U.S. Securities and Exchange Commission (SEC), the $Daily Journal (DJCO. US)$ There has been a huge change in the management of the company. Gerald Salzman, who had previously served as president, CHIEF executive, chief financial officer and chief financial officer, retired, and Charlie Munger decided to give up the title of chairman, though he intends to remain on the board. In addition, Munger will donate $1 million worth of daily newspaper company stock, a move he hopes "reflects confidence in existing teams and new leaders."
Some Walmart stores in the United States will stop selling cigarettes, and tobacco stocks will fall under pressure
A Walmart spokesperson said the company is removing tobacco products from its selected stores to make more efficient use of the space. She would not say how many stores would continue to sell cigarettes, but said Walmart had not stopped all tobacco sales.
The founders suddenly resigned hand in hand, and the charging pile concept stock Volta fell to a record low
On Monday, local time, the US stock charging pile concept stock $Volta (VLTA. US) $ announced that the company's CEO Scott Mercer announced his resignation and withdrew from the board, but will continue to run the company until March 31, 2023 as interim CEO, and serve as an advisor to the company's board of directors searching for new CEOs. Chris Wendel, another of the company's founders and chairman of the board, immediately resigned, and two independent directors were appointed joint chairman of the board.
Considering that Volta just announced last week that it postponed the scheduled four-quarter announcement schedule, Volta shares closed down 18% to refresh the new low since listing last August.
TOP20 in U.S. stock turnover
Port City Forward
Beishui sold JD.com for nearly HK$1.8 billion and Tencent for more than HK$600 million
Southbound funds sold a net of HK$887 million on Monday. JD Group-SW, China Shenhua and Sunny Optical Technology were net sold HK$1.798 billion, HK$321 million and HK$176 million respectively, while Tencent Holdings received net purchases of HK$622 million against the trend.
According to THE HONG Kong Stock Exchange documents, Tencent Holdings spent about HK$300 million to repurchase 818,000 shares on March 28 at a repurchase price of HK$357.8 to HK$371.6 per share.
Xiaomi Group announced that it repurchased about 3.448 million shares on March 28, 2022 at a price of HK$14.36 to HK$14.6 per share, costing a total of HK$49.87 million.
Nongfu Spring announced its 2021 annual results, with total earnings achieved in 2021 of RMB29.696 billion, up 29.8% year-on-year; profit attributable to owners of the parent company of RMB7,162 million, an increase of 35.7% year-on-year; basic earnings per share of RMB0.64, an increase of 33.3% year-on-year; and a proposed dividend of RMB0.45 per ordinary share at the end of the period.
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Keywords: U.S. Chamber of Commerce Consumer Confidence Index, Great Wall Motor/BYD Shares/Kuaishou Financial Report
On Tuesday, in terms of data, we can look at the U.S. Chamber of Commerce Consumer Confidence Index.
In terms of events, you can pay attention to Philadelphia Fed President Harker's speech on the outlook for the US economy. Earlier this year, Philadelphia Fed President Harker said in an interview that he would support more than three rate hikes this year if U.S. inflation continues to soar. Investors can watch for a change in their views on rate hikes.
Niu Niu Morning Reading:
The principle of investment is very simple, that is, "buy low and sell high".
—Jim Rogers
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