Companies are becoming scarce bullish fundamentals that still benefit from a dedicated and vocal shareholder base have long been known as “cult stocks”. In the midst of a social media-fueled frenzy for blowing up a stock like AMC Entertainment, it can be nearly impossible to know what is genuine, organic enthusiasm for a business, and what is bought and paid for by newly enriched day traders. Some of these investor groups are starting to look more and more like, well, real cults. –David E. Rovella
Bloomberg is tracking the progress of coronavirus vaccines while mapping the pandemic globally and across America.
Here are the best stories of today
The US Federal Reserve shows little concern for inflation even though its preferred measure, the basic price index for personal consumption expenditure, has risen 3.1% over the past year, far exceeding the target at more long term of 2% from the central bank. Bill Dudley writes in Bloomberg Notice that while the current price spike is likely to pass, the long-term threat remains Very real.
India, the current focal point of the coronavirus pandemic, added 134,154 new cases in a single day. Although stratospheric, it is nonetheless close to the lowest number of daily infections the hard-hit country has seen since April 8, according to government data. India’s reported death toll climbed from 2,887 to 337,989, although the actual number may be more than ten times that. Meanwhile, the U.S. government has announced it will send 25 million doses of the vaccine to countries in Asia, Africa and Latin America, the first time President Joe Biden’s administration has shared injections. that she could have used at home. The beneficiaries include India, the Palestinian territories and Kosovo. While much of the world still scrambles to obtain vaccines, the global number of doses administered has now exceeded 2 billion. Here is the last on the pandemic.
The White House launched Republicans the idea of a minimum 15% U.S. corporate tax (along with enhanced IRS enforcement efforts) as a means of finance a bipartite infrastructure package. The proposal sets aside the Biden administration’s proposal to increase the overall corporate income rate to 28% from 21%.
Thursday also, Biden signed a long-awaited executive order amending a ban on U.S. investment in Chinese companies, naming 59 companies with ties to the Chinese military or the surveillance industry.
Biden’s withdrawal from corporate tax was not enough to prop up US stocks, which fell on Thursday as Wall Street feared good jobs news would prompt the Fed to stop weighing. A report showed that U.S. corporate payrolls grew the most in nearly a year, while additional figures on the economic health of the the service sector reached the highest level on record. Here is your markets roll up.
Beijing’s crackdown on local tech giants could come to an end, according to a portfolio manager at Fidelity International. While billionaire Jack Ma’s investigations into Alibaba and Ant Group have lasted three to four months, a second round of investigations into companies like Tencent and Meituan could unfold more quickly, indicating the cycle might be ending.
The rise in early retirement triggered by the pandemic increasing inequalities among American baby boomers.
What you will need to know tomorrow
It took a few decades, but faster-than-sound commercial flight is almost from the start. United Airlines is entering the potential supersonic travel market with the first firm order of Overture aircraft from Boom Technology, betting business travelers will pay top dollar for faster travel across oceans. The airline will buy 15 supersonic jets.
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