1. Trump proposes tax hike on high earners
President Donald Trump has announced plans to increase the top income tax rate from 37% to 39.6% for individuals earning over $2.5 million annually. This move, reversing parts of his 2017 tax reforms, aims to fund broader tax relief for working- and middle-class households while protecting Medicaid. Additionally, Trump seeks to eliminate the preferential tax treatment for hedge fund and private equity profits by ending “carried interest”. Discussions on extending the 2017 tax cuts are set to begin in key House committees soon.
Read more
2. EU accelerates capital markets union initiative
European Commission President Ursula von der Leyen has announced a significant push to establish a capital markets union (CMU) before the summer of 2025. This initiative aims to create a deep and liquid capital market across the EU, facilitating access to funding for key priorities such as defence, and the digital and green transitions. Efforts to create a CMU have been ongoing for over a decade but have faced slow progress due to differing national interests and financial regulations among member states.
Read more
3. Milken conference highlights climate finance strategies
At the Milken Global Conference in Los Angeles, business and finance leaders discussed climate change strategies amid increasing global regulations and an indifferent US policy environment. Companies are focusing on interim strategies to navigate the evolving landscape, shifting from simply reducing emissions to addressing physical climate risks like water scarcity and supply chain vulnerabilities. Investment in climate initiatives is tempered by political and economic uncertainty, prompting cautious financial strategies. Innovations such as carbon markets, blended finance, and private credit are emerging as crucial tools to fund the transition to a low-carbon economy.
Read more
4. Market rally amid improved trade relations
Stock markets rallied, driven by improved trade relations with the UK and anticipations of US-China talks, lifting the S&P 500 and Dow by 0.6% and the Nasdaq by 1.1%. Paramount Global experienced streaming growth but saw overall revenue decline due to last year’s Super Bowl boost. Warner Bros. Discovery posted a smaller quarterly loss despite weaker linear TV sales. The Bank of England cut interest rates following the US Federal Reserve’s decision to hold rates steady. Toyota reported weaker earnings and forecast a profit decline due to projected tariffs and rising material costs.
Read more
5. German financial regulator warns of high uncertainty
Mark Branson, president of Germany’s financial regulatory authority BaFin, stated that while German financial institutions remain strong, the level of uncertainty in the financial sector remains very high. He emphasised that despite successfully managing recent market volatility, there is still a risk that issues originating from the non-banking sector could affect the banking industry. Branson’s remarks underscore the importance of continued vigilance and caution within the financial system amidst ongoing economic uncertainties.
Read more
Recent Comments