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Business News

US stock futures rally amid Joe Biden tax reform

The stock market fell on Wednesday as investors awaited Apple’s earnings and news on Biden’s tax hike.

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Early Thursday, Dow Jones futures, S&P 500 futures, and Nasdaq futures all rose, with prominent earning movers including Apple portfolio, Facebook (FB), ServiceNow (NOW), and Qualcomm (QCOM). In a primetime speech to Congress, President Joe Biden advertised his tax hike reforms and latest budget plans.

The stock market fell on Wednesday as investors awaited Apple’s earnings and news on Biden’s tax hike. Investors have digested the recent Fed meeting announcement and remarks from Fed Chairman Jerome Powell, as well as overnight results from Microsoft portfolio, Alphabet parent Alphabet (GOOGL), and a slew of other companies. Google’s stock rose to a record level, while Microsoft’s stock fell slightly.

READ: US President, Joe Biden gains access to Trump-Putin 4-year call record

President Joe Biden outlined a $1.8 trillion social-support package in his first speech to Congress. The bundle of tax credits and domestic priorities, which include child care, paid maternity leave, and tuition-free community college, will be partially financed by higher taxes on the rich. President Biden is unconcerned about the financial market’s reaction. Biden plans to remind Congress in extracts from his speech that “Wall Street didn’t create this country; middle America did.”

READ: Biden tax opportunity for Nigeria

Biden advocates for the highest income tax rate from 37% to 39.6 %. To help pay for his third major stimulus package, he suggested almost doubling the top capital gains tax rate from 20% to 39.6%. The top rate, after the ObamaCare surcharge, will be 43.4 %. The federal-and-state cap gains rate will exceed 50% in several states, including California and New York. Only those with more than $1 million a year will be subject to the higher capital gains tax limit.

READ: A Joe Biden presidency and its impact on Nigeria’s oil

Another question is whether the huge fiscal stimulus, combined with an all-out Federal Reserve, would trigger inflation, despite the fact that the US economy is still recovering from a pandemic. This, along with the tax hikes proposed by Biden, could be a one-two punch for the stock market.

The dollar remained at low levels after the Federal Reserve said that it is not willing to reduce policy support. The Fed stated that asset sales will continue and that inflationary pressures are likely to be “transitory.”

Ubah,Jeremiah ifeanyi is a PhD candidate of Economics in Covenant university. He has held positions as the financial manager in Opera and is also a research ambassador in M&S research Hub. Ifeanyi is currently the financial market analyst for Nairametrics. Follow Ifeanyi on Twitter @ubahjc

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    Spotlight Stories

    Tip Jar, Twitter’s new giveaway feature that lets users send money to you

    Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

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    US Elections: Twitter, Facebook suspend several news accounts

    Twitter has introduced a new feature called Tip Jar that allows you send money to your favourite tweeters.

    According to the blog post, “Tip Jar is an easy way to support the incredible voices that make up the conversation on Twitter. This is a first step in our work to create new ways for people to receive and show support on Twitter – with money.”

    The new feature utilizes different payment platforms like PayPal, Venmo, Patreon, CashApp, and others.

    Users can link their Twitter accounts with Tip Jar to any of these payment providers. Twitter takes no cut.

    READ: Facebook is creating an audio chat product similar to Clubhouse

    You’ll know an account’s Tip Jar is enabled if you see a Tip Jar icon next to the Follow button on their profile page. Tap the icon, and you’ll see a list of payment services or platforms that the account has enabled. Select whichever payment service or platform you prefer and you’ll be taken off Twitter to the selected app where you can show your support in the amount you choose.

    Twitter has released series of features this year as part of its efforts to grow Twitter’s user base to 315 million daily active users by the end of 2023.

    The company also launched Twitter crop where images don’t get crop again on Twitter for Android or iOS. Standard aspect ratio images (16:9 and 4:3) will now display in full without any cropping and images will look just like they did when you shot them.

    Hotflex

    READ: Does YouTube stand a chance against TikTok?

    Lauren Alexander, a Twitter spokesperson said, “Today’s launch is a direct result of the feedback people shared with us last year that the way our algorithm cropped images wasn’t equitable, The new way of presenting images decreases the platform’s reliance on automatic, machine learning-based image cropping.”

    Twitter has tested several features and more will be rolled out soon.

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    Business

    Customs Apapa Command generates revenue of N65.4 billion in April

    This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

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    Border closure: Amid N5bn daily revenue, Customs officials lament allowance slash  

    The Nigerian Customs Service (NCS) Apapa Area Command has announced a revenue of N65,463,398,355.85 for the month of April—an increase of N25,585,561,139.92 compared to the same period last year.

    This was disclosed by Comptroller Ibrahim Yusuf, Area Controller of Apapa command, in a press briefing on Thursday.

    What Ibrahim Yusuf is saying

    “This indicates a 64% increase in collection and an unprecedented record that has never been achieved in the history of Apapa Area Command.

    In line with the provision of extant laws, trade guidelines, and enforcement of government fiscal policy measures, the command was able to further strengthen its anti-smuggling operations against economic saboteurs through credible intelligence-driven operations.

    READ: Customs revenue rises by N200 billion to hit N1.5 trillion in 2020

    This led to the seizure of 4×40 feet containers laden with unregistered pharmaceuticals (674 cartons of tramadol tablets in 225mg and 120mg, and 805 cartons of codeine syrup in 100ml) at APMT and SIFAX 3 bonded terminal respectively.

    Other items seized in the period under review include: two containers of unprocessed wood and one container of scrap copper wire,” he said.

    He added that the progress the Apapa Command made in the month of April was possible due to the resilience of the officers, citing that the Command had taken steps to ensure efficient revenue collection by creating an enabling environment for legitimate businesses to thrive.

    What you should know

    Recall Nairametrics reported that the Nigeria Customs Service (NCS) Apapa Command stated earlier that it generated a revenue of N159.58 billion in the first quarter of 2021.

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