This year's flagship smartphones from Samsung—the Galaxy S20, S20+, S20 Ultra—are packed. But can you tell them apart? WSJ’s Joanna Stern explains how they differ in size, cameras, price and network connectivity.
This year's flagship smartphones from Samsung—the Galaxy S20, S20+, S20 Ultra—are packed. But can you tell them apart? WSJ’s Joanna Stern explains how they differ in size, cameras, price and network connectivity.
How does it work when a government wants to borrow money, and when does it have to pay it back?
(Bloomberg) -- Futures rose Friday as investors digested a proposal for higher taxes to pay for President Joe Biden’s fiscal stimulus.Contracts on both the S&P 500 Index and Nasdaq 100 posted modest gains, signaling the U.S. gauges may be poised to rebound from sharp declines on a Bloomberg News report Biden plans to nearly double the capital gains rate on the wealthy. Intel Corp., the biggest chipmaker, fell 2.6% in premarket trading following a slump in gross profit margin. The dollar dipped and Treasury yields steadied.Investors are weighing the implications of higher taxes against the potential spillover benefits of spending on infrastructure. While loose central bank policy is helping support stocks near record highs, these levels look precarious given worsening news about the spread of Covid-19 in parts of the world.Read: Fat Valuations and Tech Stocks Seen as at Risk in Biden Tax Plan“We don’t think it derails the equity market recovery,” said Nupur Gupta, portfolio manager at Eastspring Investments, said of the tax proposal on Bloomberg TV. “Equity sentiment does appear to be stretched, which is why any negative news that you get can lead to a consolidation in markets in the short term.”European stocks fell, on course for their first weekly decline in eight weeks. Carnival Plc shares dropped as much as 4.4% in London after Morgan Stanley flagged caution on cruise lines. Swedish telecom Telia Co. also declined despite first-quarter results in line with forecasts.Meanwhile, oil prices headed for a weekly drop of about 2.5% as energy demand wavers with the virus rampant in key markets outside the U.S.Elsewhere, Bitcoin slid below $50,000, headed for its seventh loss in eight days. Investors already face a capital-gains tax if they hold the cryptocurrency for more than a year.The U.S. releases new home sales data later on Friday.These are some of the main moves in markets:StocksFutures on the S&P 500 Index climbed 0.1% as of 8:26 a.m. New York time.The Stoxx Europe 600 Index declined 0.7%.The MSCI Asia Pacific Index increased 0.5%.The MSCI Emerging Market Index gained 0.7%.CurrenciesThe Bloomberg Dollar Spot Index sank 0.4%.The euro jumped 0.4% to $1.2068.The British pound increased 0.3% to $1.3879.The onshore yuan was little changed at 6.491 per dollar.The Japanese yen strengthened 0.3% to 107.61 per dollar.BondsThe yield on 10-year Treasuries fell less than one basis point to 1.53%.The yield on two-year Treasuries gained less than one basis point to 0.15%.Germany’s 10-year yield sank two basis points to -0.28%.Japan’s 10-year yield dipped less than one basis point to 0.071%.Britain’s 10-year yield fell two basis points to 0.72%.CommoditiesWest Texas Intermediate crude was little changed at $61.46 a barrel.Brent crude dipped 0.1% to $65.31 a barrel.Gold strengthened 0.6% to $1,793.80 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Credit Suisse Group AG is raising $2 billion from investors and cutting the hedge fund unit at the center of the Archegos Capital Management losses as Chief Executive Officer Thomas Gottstein seeks to recover from one of the most turbulent periods in the bank’s recent history.Credit Suisse, which has exited about 97% of its exposure to Archegos, expects a related 600 million-franc ($654 million) loss in the second quarter, taking the total hit from the collapse to about $5.5 billion. In response, it’s cutting about a third of its exposure in the prime business catering to hedge fund clients, while strengthening capital with the sale of notes converting into shares.Gottstein is battling to rescue his short tenure as chief executive officer after Credit Suisse was hit harder than any other competitor by the collapse of Archegos, the family office of U.S. investor Bill Hwang. The timing of the blowup could hardly have been worse, coming just weeks after Credit Suisse found itself at the center of the Greensill Capital scandal, when it was forced to suspend investment funds. While seeking to placate investors hurt by the losses, he also now faces the fresh challenge of navigating enforcement proceedings announced by Swiss regulator Finma on Thursday.The double whammy wiped out a year of profit and left Gottstein fighting to demonstrate to incoming Chairman Antonio Horta-Osorio that he’s of the right mettle to carry the bank through the volatility which has left investors nursing losses and questioning its strategy and controls. Having taken on the position more than a year ago, the CEO had stumbled over other hits before Greensill shattered what was supposed to be a new era of calm.The two scandals have left the CEO standing while many once powerful members of his management board had to leave. Gone are investment banking head Brian Chin and Chief Risk Officer Lara Warner, along with a raft of other senior executives including equities head Paul Galietto and the co-heads of the prime brokerage business. Asset management head Eric Varvel is also being replaced in that role by ex-UBS Group AG veteran Ulrich Koerner.The bank has also suspended its share buyback and cut the dividend.Credit Suisse fell as much as 6.9% in Zurich trading and was 6.1% lower as of 11:19 a.m. local time, taking this year’s losses to about 23%.The bank plans to reduce risk at the investment bank, including cutting about $35 billion of leverage exposure at the prime brokerage unit -- which services its hedge fund clients, Gottstein said in an interview with Bloomberg Television. That’s about a third of its total exposure.“Although capital has been mainly addressed, we still see questions remaining in terms of strategy and risk management,” JPMorgan Chase & Co. analysts wrote in a note to investors. “Capital has been clearly the main focus.”The bank said the convertibles notes were sold to core shareholders, institutional investors and high net worth individuals and will help bring the bank’s CET1 ratio -- a key metric for capital -- nearer its target 13%. That number had dropped to 12.2% at the end of the first quarter.In addition to the enforcement proceedings, Credit Suisse said that the Swiss regulator has told it to hold more capital to guard against losses by taking a more conservative view of its risk. The bank increased its assets weighted according to risk for both Archegos and Greensill. While the capital raise came after Finma raised the bank’s capital requirements, Gottstein said the decision was the bank’s own.“This was not as a reaction to any request by Finma or any other regulator,” Gottstein said on a call with analysts. “It was our proactive view that, together with the board, we decided to issue these two mandatories and that will really help us also against any possible market weakness over the coming months.”The Greensill debacle is also far from over. Credit Suisse has so far returned about half the $10 billion in investor money held by the funds at the time of their suspension. While the bank marketed the funds as among the safest investments it offered, investors are left facing the prospect of steep losses as the assets are liquidated. Credit Suisse is leaning toward letting clients take the hit of expected losses in the funds, a person familiar with the discussions said earlier this month.“We have good visibility for a large portion of the remaining positions,” Gottstein said. “There are three more distinct positions which we will work through in the next months and quarters. We are not planning to do any form of step-in. We are very clearly focused on getting the cash back to our investors.”The impact for Credit Suisse from both Archegos and Greensill could add up to $8.7 billion, according to JPMorgan analysts Kian Abouhossein and Amit Ranjan.First Quarter Highlights:International wealth management pretax profit 523m francs vs 442m estimateCET1 ratio 12.2% vs 12.1% estimateProvisions for credit losses 4.4b francsNet revenue 7.6b francsSwiss Universal Bank pretax profit 665m francs vs 548m estimateAPAC pretax profit 524m francs vs 304m estimate(Adds Gottstein comment on capital raise in 12th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- AMP Ltd. is splitting off its private markets business after Australia’s oldest wealth management firm ended talks about a possible sale to Ares Management Corp.The months-long discussions with Los Angeles-based Ares have now concluded, AMP said in a statement Friday. Instead, the demerged entity of AMP Capital’s infrastructure and real estate units will be listed on the Australian stock exchange. As part of the separation, Boe Pahari, who was demoted last year from his position atop the investment management unit after a sexual harassment scandal, will leave the business.The decision provides some clarity for investors after a tumultuous period for the firm left its shares trading near an all-time low. AMP Ltd., to be run by Alexis George from the third quarter of 2021, will retain a stake of up to 20% in the spun-off firm, that will continue to be led by David Atkin amid an international search for a new chief executive officer.“It’s a real chance to really start fresh,” Jessica Amir, a market analyst at Bell Direct, said by phone. “The funds management industry is completely different to financial advice. Two separate businesses, two separate futures, so it’s a real fork in the road and a real opportunity for change.”AMP shares all but erased an early 8% gain in Sydney trading Friday to close less than 1% higher. The stock has tumbled 27% this year.Ares earlier this year scrapped a A$6.4 billion ($4.9 billion) takeover offer for the entire company as the wealth unit continued to struggle and instead had offered to pay A$1.35 billion for a 60% stake in the private markets business.The spin off is expected to be completed in the first half of 2022. Having concluded the review of AMP’s portfolio, the board will start a share buy-back of up to A$200 million.“We have had substantial and constructive discussions with Ares regarding a sale, however, we have not been able to reach an agreement that would deliver appropriate value for our shareholders,” AMP Chair Debra Hazelton said in the statement. “The board has therefore concluded a demerger provides investors with the strongest value outcome, creating two more focused entities, with the agility to pursue new growth opportunities in their respective markets.”Simple StructureThe private markets unit will put in place a new management equity plan in an attempt to attract and retain a high quality investment team, according to the statement. The demerger will simplify its structure and allow it to establish a new brand, the statement said.To be sure, there’s “a great deal of uncertainty” around AMP Capital given clients continue to pull cash, while the wealth management unit is facing profitably issues, UBS Group AG analysts led by Andrew Adams wrote in a note to clients. Shareholders will also have to pay the separation costs, pay down debt and likely another major cost cutting program, he wrote.“Further capital management, which was a big part of the positive AMP thesis, now looks unlikely,” according to the note. The spin-off is “a less than ideal outcome.”(Updates with closing shares in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
NEED TO KNOW Avid readers of this column may have had a sense of déjà vu on Thursday. Last month, a Need to Know column explored what would pay for President Joe Biden’s infrastructure spending — and quoted a former Biden aide, Evercore ISI analyst Sarah Bianchi, who said it would “probably include nearly doubling capital-gains taxes on those with income over $1 million.
The IRS is sending out "plus-up" payments — see if you can expect one.
"While the shock may be sustained in stock markets, the nature of cryptocurrency will see straight through this dip," Landsberg-Sadie told CoinDesk on Friday.
Stocks were only moderately lower until a report that President Joe Biden was considering raising capital-gains taxes. The three major U.S. stock indexes ended materially lower.
Fears of higher taxes spook stock market, Intel CEO says global chip shortage could last two more years, and other news to start your day.
The stock market pulled back from all-time highs this week, as investors paused to consider just what’s been goosing stocks – and what the future may hold. A flood of stimulus cash, unleashed by the Biden Administration’s big spending bills, is set to push GDP growth to 9% for 3Q21, but next year looks like it will slip back as the spending runs its course. Economists are predicting 5.5% GDP growth next year. This bodes poorly for cyclical stocks, which tend to reflect macro volatility. As Morgan Stanley’s chief US equity strategist Mike Wilson said, “Peak rate of change on economic data and earnings revisions... are all contributing to the deterioration in lower-quality, smaller-capitalization, and the more cyclical parts of the market.” Dividend stocks, however, are more stable than the cyclicals, and while their average returns are lower, they offer the advantage of a steady return regardless of economic conditions. B. Riley analyst Matthew Howlett has been looking into the real estate trust segment, a group of stocks long-known for dividends that are both high and reliable. Howlett pointed out two stocks, in particular, that are showing dividend yields in excess of 7% and deserve a 'buy' rating. Ladder Capital Corporation (LADR) We’ll take a step into the real estate investment trust (REIT) niche, with Ladder Capital, a specialist in commercial mortgages. Ladder has operations in 48 states, and 475 cities. The average loan size is $19 million, and the company has securitized or sold a cumulative total of $16.7 billion commercial loans. Operations are backed by company’s $5.9 billion in assets. Ladder Capital has seen a series of headwinds in the past year. The corona pandemic, of course, was the major crisis – but for a commercial mortgage lender, the problem was broader. Loan customers were taking their own hits, and finding themselves unable to meet payments. As a result, Ladder saw its quarterly results in 2020 show deep declines, and greater volatility, when compared to 2019. On the positive side, Ladder finished the year 2020 with $1.25 billion in cash and cash equivalents. The final quarter of 2020 saw top line revenues of $77.9 million, compared to $135.4 million in the prior year’s Q4. Distributable earnings, however, came in at $4.9 million – and the company declared a dividend of 20 cents per common share, which was paid out on April 15. This marked the fifth quarter in a row with the dividend at this level. The current payment annualizes to 80 cents per share, and gives a yield of 7%. Despite the challenging economic environment, LADR shares are up an impressive 79% over the past 12 months. B. Riley's Matt Howlett expects the momentum to continue, and sees Ladder with a firm foundation to move forward. “[The] company’s loan originator has been a top CMBS loan contributor since the 2008-2009 financial crisis and is well positioned to contribute to LADR’s earnings growth as the conduit market rebounds post-pandemic,” Howlett noted. Howlett especially likes the company’s cash position, noting that it “should allow the company to accelerate growth of its core investment portfolio." The analyst sees "upside potential to the dividend (forecasted to increase to $1.05 in 2022) as originations ramp steadily and legacy higher cost debt (Koch/legacy CLO) pays down.” Backing these comments with a Buy rating, Howlett sets a $14 price target to suggest room for 21% growth in the next 12 months. (To watch Howlett’s track record, click here) Overall, Ladder gets a Moderate Buy rating from Wall Street’s analysts, based on 6 recent reviews that include 5 Buys – but also a single Sell. LADR shares are currently priced at $11.58, with an average target of $12.58 pointing toward 9% upside potential this year. The real attraction for investors here is the strong dividend yield. (See LADR stock analysis on TipRanks) Cherry Hill Mortgage (CHMI) The second stock we’re looking at, Cherry Hill, is another REIT, this one with a focus on the residential markets. Cherry Hill’s portfolio includes mortgage servicing rights, mortgage backed securities, and other mortgage assets in the residential market. After a steep earnings drop in the first quarter last year, to a loss of $2.80 per share, Cherry Hill has seen sequential growth in the past three quarters. The fourth quarter of 2020 saw EPS return to positive values, with a print of 37 cents per share. Like most REITs, Cherry Hill pays out a reliable dividend. The company has been maintaining the payments since the fourth quarter of 2014, adjusting it when needed to keep it in line with income. For the most recent quarter, the dividend was declared at 27 cents per common share, or $1.08 annually. At this rate, the dividend yields an impressive 11.5%. CHMI's strong defensive characteristics and attractive dividend yield drew it to the attention of B. Riley’s Howlett. “[We] believe the portfolio is better insulated against basis risk and would perform better in a rising rate environment… We believe that CHMI's strong liquidity profile… puts it in strong position to deploy capital accretively during 1H21," Howlett opined. The analyst continued, "We expect: 1) slower prepayment speeds and 2) declining servicing costs in 2H21 to be key drivers of higher core ROEs going forward. Our 12.5% ROE forecast for 2022 should allow the company to increase its quarterly dividend to $0.30 based on our model.” In line with his upbeat outlook, Howlett rates Cherry Hill a Buy. His $11.50 price target implies that the stock has room to gain 21% in the next 12 months. CHMI has slipped under most analysts’ radar; the stock’s Moderate Buy consensus is based on just two recent ratings; Buy and Hold. With shares trading at $9.43, the $10.75 average price target suggests room for a 14% upside. (See CHMI stock analysis on TipRanks) To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
(Bloomberg) -- Reliance Industries Ltd., controlled by Asia’s richest person Mukesh Ambani, bought Stoke Park Ltd. for $79 million, adding an iconic locale that’s been the setting for two James Bond films to its portfolio of tourism properties.A wholly owned unit of Reliance Industries will buy Stoke Park, which owns and manages a hotel, sports and leisure facilities in Buckinghamshire, for 57 million pounds ($79 million), according to an exchange filing late Thursday. The acquisition will add to Reliance’s consumer and hospitality assets, the filing said.The property’s rolling golf course has been famous since James Bond played a game with Auric Goldfinger there in the 1964 blockbuster. Since then, the estate with the Georgian-era mansion set in the midst of 300 acres of parkland has also been a backdrop in productions like “Bridget Jones’s Diary” and Netflix Inc.’s British Royal Family drama “The Crown”.In real life, its 49 luxury bedrooms and suites, 27-hole championshop golf course, 13 tennis courts and 14 acres of private gardens attracts wealthy tourists from across the world.The latest marquee acquisition for Indian billionaire Ambani’s retail-to-refining conglomerate marks its pivot toward consumer offerings and yet another high-profile British brand purchase. Reliance bought struggling U.K.-based toy store chain Hamleys in 2019 and is seeking to revive it.Flush with $27 billion in fresh capital after selling stakes in Reliance’s retail and digital units last year, Ambani is helming a transformation as he seeks to build consumer services into a equal-sized pillar for Reliance Industries, paring dependence on profits from its traditional oil refining business. Acquiring marquee global brands underscores that strategy.Private GardensAlthough the Stoke Park estate has a recorded history of over 900 years, it was used as a private residence until 1908, according to its official website.Ambani has a net worth of $71.5 billion, making him the 13th richest person in the world, according to the Bloomberg Billionaires Index.The group “will look to enhance the sports and leisure facilities at this heritage site,” Reliance said in the filing. Ambani’s conglomerate has equity holding in EIH Ltd., which runs the chain of five star Oberoi Hotels.Reliance has announced acquisitions worth $3.3 billion in the past four years, with 80% of it in the media, technology and telecom sectors, according to an April 23 report by Morgan Stanley. Last year, Reliance bought out IMG Worldwide LLC’s 50% stake in their India sports management joint venture, signaling commitment to its sports and entertainment businesses.The U.K. is emerging as a real estate hotspot for wealthy Indians. Adar Poonawalla, chief executive officer of the Serum Institute of India Ltd. -- the largest vaccine manufacturer in the world -- agreed to rent a property in Mayfair for about 50,000 pounds ($69,300) a week, a record for the exclusive London neighborhood, Bloomberg reported last month.(Updates with comments from Morgan Stanley in the 10th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Investors are concerned about a more stringent tax regime under President Joe Biden. Increased corporate and capital-gains tax rates could be on the way. Government spending hasn’t been light in the past year, with trillions of dollars of fiscal stimulus and potentially $2 trillion more for infrastructure spending.
(Bloomberg) -- Panasonic Corp. has agreed to take over U.S. artificial intelligence software developer Blue Yonder for $7.1 billion in one of the biggest acquisitions for the Japanese firm.Panasonic, which already has a 20% stake in Blue Yonder, will buy the rest of the AI firm’s shares from New Mountain Capital and funds managed by Blackstone Group Inc. for $5.6 billion, according to a statement on Friday, confirming an earlier Bloomberg News report. Including repayment of outstanding debt, Panasonic’s total investment will amount to $7.1 billion.The announcement came less than a year after Panasonic acquired the minority stake in Blue Yonder for $800 million, giving the AI firm an enterprise value of $5.5 billion. Panasonic’s latest buyout offer will value the Scottsdale, Arizona-based company at $8.5 billion.The Japanese firm will fund the transaction with cash as well as a bridge loan. The deal is expected to close by the end of this year.Shares in Panasonic on Friday plunged and touched their lowest level since Jan. 18 in Tokyo after the Bloomberg News report. The stock fell 3.5% at the close.”It’s a good direction for Panasonic, to target the U.S. market,” said Bloomberg Intelligence analyst Masahiro Wakasugi. But the valuation “is not cheap and we will have to wait to see how they fare after the merger to evaluate it.”Blue Yonder, founded in 1985 and formerly known as JDA Software Inc., makes supply-chain management software and uses artificial intelligence to predict product demand. Its revenue was more than $1 billion last year, according to the statement. It counts Best Buy Co., Coca-Cola Co. and Walmart Inc. among its over 3,000 customers globally.Panasonic’s buyout offer will see Blue Yonder scrapping its listing plans. The AI firm this month confidentially filed for a U.S. initial public offering.(Updates with analyst’s comment in the sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Credit Suisse raises $2bn to shore up its finances as regulators widen a probe into the Swiss bank.
As the class of 2021 plans to graduate next month, many college seniors are worried about landing a job amid the pandemic and an uncertain labor market.
What seems apparent from stock-market performance is backed up flows data—investors are getting out of India in response to the spike in Covid-19 cases there.
For such a long time, I would scan my portfolio for something to get rid of -- this is something I do regularly in good times and in bad. I never like to hang on to stocks that don't perform for very long.
(Bloomberg) -- President Joe Biden will propose almost doubling the capital gains tax rate for wealthy individuals to 39.6% to help pay for a raft of social spending that addresses long-standing inequality, according to people familiar with the proposal.For those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means that federal tax rates for wealthy investors could be as high as 43.4%. The new marginal 39.6% rate would be an increase from the current base rate of 20%, the people said on the condition of anonymity because the plan is not yet public.A 3.8% tax on investment income that funds Obamacare would be kept in place, pushing the tax rate on returns on financial assets higher than rates on some wage and salary income, they said.QuickTake: How Capital Gains Are Taxed and What Biden Might DoStocks slid the most in more than a month on the news, with the S&P 500 Index down 0.9% at the close. Ten-year Treasury yields fell to 1.54% from an intraday high of 1.59% before Bloomberg’s report.The proposal could reverse a long-standing provision of the tax code that taxes returns on investment lower than on labor. Biden campaigned on equalizing the capital gains and income tax rates for wealthy individuals, saying it’s unfair that many of them pay lower rates than middle-class workers.White House Press Secretary Jen Psaki, asked about the capital-gains plan at a press briefing Thursday, said, “we’re still finalizing what the pay-fors look like.” Biden is expected to release the proposal next week as part of the tax increases to fund social spending in the forthcoming “American Families Plan.”Other measures that the administration has discussed in recent weeks include enhancing the estate tax for the wealthy. Biden has warned that those earning over $400,000 can expect to pay more in taxes. The White House has already rolled out plans for corporate tax hikes, which go to fund the $2.25 trillion infrastructure-focused “American Jobs Plan.”Republicans have insisted on retaining the 2017 tax cuts implemented by former President Donald Trump, and argued that the current capital-gains framework encourages saving and promotes future economic growth.“It’s going to cut down on investment and cause unemployment,” Chuck Grassley of Iowa, a top Republican on the Senate Finance Committee and former chair of that panel, said of the Biden capital-gains plan. He lauded the result of the 2017 tax cuts, and said, “If it ain’t broke, don’t fix it.”GOP lawmakers on Thursday called for repurposing previously appropriated, unused pandemic-relief funds to help pay for their counteroffer infrastructure plan. The group underlined opposition to tax hikes, other than a potential revamp of the levies that go toward highway funding in a way that would cover electric vehicles.Earlier: GOP Counters Biden With $568 Billion Infrastructure PlanBiden will detail the American Families Plan in a joint address to Congress on April 28. It is set to include a wave of new spending on children and education, including a temporary extension of an expanded child tax credit that would give parents up to $300 a month for young children or $250 for those six and older.Biden’s proposal to equalize the tax rates for wage and capital gains income for high earners would greatly curb the favorable tax treatment on so-called carried interest, which is the cut of profits on investments taken by private equity and hedge fund managers.The plan would effectively end carried interest benefits for fund managers making more than $1 million, because they wouldn’t be able to pay lower capital gains rates on their earnings. Those earning less than $1 million may be able to still claim the tax break, unless Biden repeals the tax provision entirely.The capital gains increase would raise $370 billion over a decade, according to an estimate from the Urban-Brookings Tax Policy Center based on Biden’s campaign platform.For $1 million earners in high-tax states, rates on capital gains could be above 50%. For New Yorkers, the combined state and federal capital gains rate could be as high as 52.22%. For Californians, it could be 56.7%.Democrats have said current capital gains rates largely help top earners who get their income through investments rather than in the form of wages, resulting in lower tax rates for wealthy people than those they employ.Capital gains taxes are paid when an asset is sold, and are applied to the amount of appreciation on the asset from when it was bought to when it is sold.Congressional Democrats have separately proposed a series of changes to capital-gains taxation, including imposing the levies annually instead of when they are sold.“There ought to be equal treatment for wages and wealth,” Senate Finance Committee Chairman Ron Wyden, an Oregon Democrat who’s the chamber’s top tax-writer, told reporters in a phone briefing Thursday. “On the Finance Committee we will be ready to raise whatever sums the Senate Democratic caucus thinks are necessary.”(Updates with market close in fourth paragraph, carried interest background in 12th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The direction and the price action will ultimately be determined by whether investors will continue to be willing to chase the market higher.
The numbers: Existing-home sales declined for the second straight month, reflecting the challenges buyers continue to face in the competitive real-estate market. Existing home-sales fell 3.7% to a seasonally-adjusted, annual rate of 6.01 million in March, the National Association of Realtors reported. “The sales for March would have been measurably higher, had there been more inventory,” Lawrence Yun, chief economist for the National Association of Realtors, said in the report.