MNI US Open: Stocks Defy Global Tax Talk

EXECUTIVE SUMMARY:

• E.U. FAILS TO FIND UNITED RESPONSE TO ASTRAZENECA VACCINE RISK
• E.C.B. WILL DECIDE ON 3Q PEPP PURCHASES AT END 2Q: HOLZMANN
• U.S. OFFER ON GLOBAL TAX DEAL WOULD TIE LEVIES TO REVENUE
• EUROPEAN COMMISSION SEES MOMENTUM FOR SUMMER DEAL ON FAIR GLOBAL TAX
• GERMAN MACHINERY ORDERS SURGE IN FEB, BUT FACTORY ORDERS SLIGHTLY MISS EXPECTATIONS

Fig. 1: Fresh Highs For S&P Futures

BBG, MNI

E.U./COVID VACCINES (BBG): The European Union failed to form a united response to links between AstraZeneca Plc's Covid-19 vaccine and a rare type of blood clotting, missing an opportunity to inject momentum into the bloc's sluggish inoculation program. At a meeting that ran until late Wednesday, EU health ministers promised to continue discussions on vaccination planning and process. In a statement afterward, the EU said ministers had shared "different interpretations" of a safety report on the AstraZeneca shot by the bloc's drugs regulator, indicating what may be deep divisions on the way forward.

E.U./COVID VACCINES (MT): Spain, Italy and Estonia joined the list of countries imposing age restrictions on AstraZeneca's COVID-19 jab amid reports of blood clotting after getting vaccinated. The three European nations will limit the COVID-19 shot to people over 60 years old, while some countries have stopped administering the vaccine pending further investigation by health authorities.

U.K./COVID VACCINES (BBC): The UK has more than enough supply of the Pfizer and Moderna jabs to vaccinate all adults under 30, the health secretary has said. The UK drugs regulator says people aged 18 to 29 should be offered a different vaccine due to evidence linking AstraZeneca jabs to blood clots. Matt Hancock said the UK is on track to vaccinate all adults by 31 July. He said the AstraZeneca jab remained safe and urged those who had received one dose to take up their second.

E.C.B. (BBG): European Central Bank Governing Council member Robert Holzmann tells CNBC in an interview that the decision on PEPP bond purchases in the third quarter will be decided upon at the end of the second. No need to deviate from capital key in PEPP is good news. ECB intervention on bond yields was successful, favorable financing conditions could be maintained.

E.C.B. (BBG): "If indeed there would be a delay in the disbursement of the Next Generation EU recovery fund that would be absolutely a piece of bad news because I do believe that fiscal policy is really at the forefront of the crisis fighting policy response" the ECB's Governing Council member from the Netherlands Klaas Knot tells CNBC in an interview." At the same time, the bulk of the fiscal response is of course national in nature and however important I do believe the recovery fund is, it's not a cyclical instrument, it's a structural instrument"

E.C.B. (BBG): European Central Bank Governing Council member Olli Rehn says the effect of U.S. fiscal stimulus on euro-area is about 0.3-0.5 percentage points of GDP, according to CNBC interview. Will maintain favorable financing conditions, that means ready to recalibrate purchases as neededWould be rather be cautious in regard to ending crisis support, must ensure there's genuine recovery

U.S./GLOBAL TAX (BBG): The U.S. is proposing that countries should be able to tax more corporate profits based on revenues within their borders in a bid to reach a global taxation deal, according to two people familiar with the offer.The U.S. sent a proposal to the nearly 140 countries participating the Organization for Economic Cooperation and Development's talks on digital taxation and global minimum levies, an offer that could help move previously stalled negotiations to consensus.

E.U./GLOBAL TAX (BBG): "The fair taxation of the digital economy is a top priority for the EU, and we remain committed to ensuring that all businesses, including digital ones, pay their fair share of tax where it is rightfully due," EU Commission spokesperson says in emailed remarks. "In that context, we welcome the strong support from all G20 Finance Ministers on 26/02/2021 for an agreement on both OECD pillars by July 2021."

GLOBAL TAX (MNI EXCLUSIVE): Wide divergences between countries on the issue of a minimum corporate tax as proposed by U.S. Treasury Secretary Janet Yellen as well as on a Digital Services Tax make an agreement by the G20's summer deadline unlikely, despite the initial welcome the initiative has received, European officials told MNI. For full article contact sales@marketnews.com

GERMANY: German machinery and plant producers saw a double-digit increase in new orders in February for the first time since October 2018, up 12% over the same period a year ago, the VDMA noted Thursday, with the organisation's chief economist, Ralph Wiechers, pointing to strong demand not just in Asian countries, but other regions outside of Europe as well.

GLOBAL AUTOS (BBG): A year after German luxury-car makers' bleakest period in decades, business has never been better.BMW AG on Thursday joined rival Mercedes-Benz in reporting record first-quarter vehicle deliveries, driven largely by explosive demand in China. Both are also getting big boosts from newly introduced plug-in hybrid and fully electric vehicles.Sales of BMW, Mini and Rolls-Royce vehicles surged more than a third to 636,606 in the quarter, the Munich-based manufacturer said in a statement. Deliveries in China almost doubled, and with the iX SUV and i4 coupe rolling out over the course of the year, the company is on track to hand over more than 100,000 fully electric vehicles to customers in 2021.Mercedes brand sales jumped 22% to 581,270, with Daimler AG's main division posting a 60% jump in China deliveries.

UBS (BBG): "If inflation continues to rise, central banks could be forced to raise interest rates sooner than expected," UBS Chairman Axel Weber says in speech at annual shareholder meeting.

CHINA: China will continue to stand with other developing country members at the WTO no matter how the external environment changes, said Gao Feng, spokesman of the Ministry of Commerce at a briefing on Thursday, when asked to respond to recent comments from Liz Truss, the UK trade secretary, who said China no longer warranted its status as a developing nation at the WTO.

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