No sooner had US President Joe Biden’s $1.9-trillion stimulus package passed than attention turned to his big spending bill for infrastructure — and the tax rises that are likely to pay for it. For equity markets, the tax increases proposed by Democrats to fund the $2-trillion package could get quite costly quickly. Goldman Sachs has calculated that Biden’s tax plan would knock 9% off EPS for companies in the S&P 500 next year.
Out on their ear
Credit Suisse’s chief risk and compliance officer and the head of its investment bank are leaving the bank, which this week announced $4.7bn of losses from the blow-up of Archegos Capital. The Archegos loss will push the bank to a first-quarter loss of about Sf900m ($960m).
As a result, Credit Suisse suspended its Sf1.5bn share buyback programme and cut its dividend by two-thirds to Sf0.10 per share. The group also announced investigations by external parties into the events leading up to the Archegos debacle.
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