Episode 79: The Double-Whammy Of Rising Interest Rates & Higher Taxes
The double-whammy of rising interest rates and higher taxes is making JPMorgan strategists less bullish on the stock market. The proposed 28% corporate tax rate could eat away between $8 and $9 of the market’s earnings per share number, according to JPMorgan, while the capital gains tax hike could force some investors to sell their holdings before the new rate takes effect.
US President Joe Biden has told a major summit that we are in a "decisive decade" for tackling climate change. The US has pledged to cut carbon emissions by 50-52% below 2005 levels by the year 2030. This new target, which was unveiled at a virtual summit of 40 global leaders, essentially doubles the group’s previous target. But the leaders of India and China, two of the world's biggest emitters, made no new commitments.
Away we go: Away cofounder Jen Rubio is stepping into the CEO role at the luggage brand, following a rocky year of a halt to global travel and the departure, return, and departure again of her controversial cofounder. In an interview with Fortune, Rubio talks about why now is the right time for Away to be "founder-led" as travel picks back up. Fortune
Path forward: This week's big market debut belonged to UiPath, the company whose software automates repetitive tasks. One of the business's biggest investors is Laela Sturdy, the general partner who led an investment by CapitalG, Alphabet's late-stage growth fund. Her stake is now worth $2 billion. Business Insider
Markets Closed
Dow 30 34,043.49 +227.59 (+0.67%)
S&P 500 4,180.17 +45.19 (+1.09%)
Nasdaq 14,016.81 +198.39 (+1.44%)
IPO
Endeavor Group Holdings Inc the owner of talent agency WME, Endeavor Content, and sports league UFC, plans to raise around $511 million in its initial public offering, valuing the company at about $10 billion. The entertainment company filed an amended prospectus with the Securities and Exchange Commission on Tuesday laying out its plans to sell 21.3 million shares at $23 to $24 a share. Endeavor will also raise some $1.7 billion in a private sale and use about $437 million to purchase the remaining 49% of the UFC that it doesn’t currently own.
LATAM
Credijusto, a Mexican credit platform, announced the acquisition of Visor, an SaaS data and risk analysis platform. The acquisition is part of Credijusto’s expansion in the market, following a $100M funding round early in 2020. Founded in 2015, Visor has evaluated over 15,000 companies and more than 40 fintechs through its platform. The startup also performs checks on marketplaces and corporations to assess their capacity to pay the companies they work with.