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    Stocks making the biggest moves premarket: Marriott, Coty, BioNTech, Tyson Foods & more

    Check out the companies making headlines before the bell:Marriott (MAR) – Marriott earned an adjusted 10 cents per share for the first quarter, beating the 3 cent consensus estimate, with the hotel operator’s revenue very slightly below forecasts. Marriott said it was seeing a rebound in demand as more people receive Covid-19 vaccinations. Shares fell 1.2% in premarket trading.Coty (COTY) – Coty reported a breakeven fiscal third quarter, matching analysts’ estimates, with revenue in line with estimates as well. Sales were 3.3% below year-ago levels as European lockdowns muted demand for Coty’s cosmetics. Energizer Holdings (ENR) – Energizer shares rose 1.7% in premarket action, after the company reported adjusted quarterly earnings of 77 cents per share compared with the 60 cent consensus estimate.  Revenue also beat projections, and the maker of batteries and other household products raised its full-year forecast.US Foods (USFD) – The food distributor’s stock was up 1% in the premarket, after it beat estimates by 7 cents with adjusted quarterly earnings of 12 cents per share. Revenue also topped estimates despite pandemic-related pressure on sales volume. The bottom line was helped by lower expenses.BioNTech (BNTX) – The drug maker beat estimates on both the top and bottom lines for the first quarter, helping its stock surge by 8.7% in premarket action. BioNTech also said there’s no current evidence that points to the need to adapt its Covid-19 vaccine to emerging variants of the virus, although it is prepared to do so if necessary.Tyson Foods (TSN) – The beef and poultry producer earned an adjusted $1.34 per share for its fiscal second quarter, beating the $1.12 consensus estimate, with revenue also above forecasts. Tyson said it expects its chicken segment to continue to experience some pressure due to a challenging labor environment and severe winter weather. Viatris (VTRS) – Viatris shares added 2.6% premarket trading despite slightly lower-than-expected profit. Sales beat estimates and the healthcare company declared its first quarterly dividend of 11 cents per share.  Viatris was created last year by a merger of Pfizer’s Upjohn unit and generic drug maker Mylan.Freeport McMoran (FCX), Hecla Mining (HL), Southern Copper (SCCO) – These and other copper mining companies are getting a boost as copper prices hit record highs on tight supply and expectations of high demand. Freeport-McMoran rose 3.3% in the premarket, while Hecla jumped 3.6% and Southern Copper jumped 3.4%.Simon Property (SPG) – The mall operator and Authentic Brands are buying apparel retailer Eddie Bauer from private equity firm Golden Gate Capital for an undisclosed amount. Eddie Bauer will join several other well-known brand names owned by the two companies, including Aeropostale, Forever 21 and Brooks Brothers.AstraZeneca (AZN) — AstraZeneca may skip applying to the FDA for emergency use authorization for its Covid-19 vaccine, according to people familiar with the matter who spoke to the Wall Street Journal. It would instead focus on the more lengthy full-approval process.Box Inc. (BOX) – Activist investor Starboard Value is putting up a minority directors slate for the board of software company Box, according to a Bloomberg report. Starboard owns an 8% stake in Box, but does not feel that performance has improved sufficiently since it invested in 2019.Live Nation Entertainment (LYV) – Live Nation was upgraded to “buy” from “hold” at Jefferies, which said a 13% pullback has provided an attractive entry point for the concert and live event promoter. Jefferies calls Live Nation a “pure-play recovery” and long-term growth story, and the company’s shares added 1.3% in premarket trading. Intel (INTC) – UK competition regulators have begun a formal inquiry into the proposed acquisition of Intel’s flash memory and solid state hard drive businesses by South Korea’s SK Hynix. Intel agreed to sell the units to Hynix in October for about $9 billion. Regulators want to determine if the transaction would lead to a substantial lessening of competition. More

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    BioNTech to produce vaccines in Singapore, its new regional headquarters

    In this article22UA-DEVials of the Pfizer-BioNTech Covid-19 vaccine at the Sun City Anthem Community Center vaccination site in Henderson, Nevada, U.S., on Thursday, Feb. 11, 2021.Roger Kisby | Bloomberg | Getty ImagesSINGAPORE — BioNTech announced Monday it will set up its Southeast Asia headquarters in Singapore, and will build a manufacturing facility in the city-state to produce its messenger RNA vaccines and other medicines to treat infectious diseases and cancer.The new site would be able to produce hundreds of million doses of mRNA-based vaccines each year, depending on the specific vaccine. The facility could be operational as early as 2023, the German biotechnology company said. It would allow the firm to scale up production for Southeast Asia to address future pandemic threats.BioNTech co-developed a vaccine for Covid-19 with U.S. drugmaker Pfizer using mRNA technology which makes use of genetic material to provoke an immune response against the virus.BioNTech’s expansion is supported by the Singapore Economic Development Board — a government agency under the trade ministry. The venture is expected to create up to 80 additional jobs in the country.”Having multiple nodes in our production network is an important strategic step in building out our global footprint and capabilities,” Ugur Sahin, CEO and co-founder of BioNTech, said in a statement.”With this planned mRNA production facility, we will increase our overall network capacity and expand our ability to manufacture and deliver our mRNA vaccines and therapies to people around the world.”Last year, the Mainz, Germany-based company set up its U.S. headquarters in Cambridge, Massachusetts.The United States has distributed 170 million doses of the Pfizer-BioNTech vaccine under emergency authorization from the Food and Drug Administration. The companies have started the process of seeking full approval for their shot for use in people 16 and older in the U.S.Two shots are required, 21 days apart, and the vaccine is 95% effective at preventing laboratory-confirmed Covid-19 illness in people without evidence of previous infection, the Centers for Disease Control and Prevention said.Since vaccination against Covid-19 began, countries have scrambled to secure access to enough shots to inoculate their population. Last month, the World Health Organization said wealthy countries have received the vast majority of Covid-19 shots, while poor nations have obtained less than 1%. More

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    Singapore's foreign minister says Covid won't go away completely, warns against complacency

    SINGAPORE — Covid-19 is “permanent” and subsequent waves of infections will be a normal occurrence in the coming years, Singapore’s Foreign Minister Vivian Balakrishnan told CNBC.”Covid-19 is endemic in humanity, which means it’s not ever going to go away completely,” Balakrishnan told CNBC’s “Squawk Box Asia” on Monday.”And the reason it’s not going to go away completely is because it’s been widespread throughout the world, it’s sufficient critical mass, the rate of mutations and new variants will keep going, and the level of human immunity will also wax and wane,” he said.The minister, who was a medical doctor before entering politics, also warned that now may be a “more dangerous period” for vaccinated people who may be complacent as well as those who are unvaccinated and lack protection against Covid.Balakrishnan said vaccination is critical, and that people who have received Covid shots develop fewer symptoms and experience less severe disease, even when they’re infected. But vaccination alone is not the panacea to an “exponential explosion” in Covid cases.That means measures such as social distancing and border restrictions may have to “come and go” in response to waves of Covid infections over the next two years, said the minister.Singapore over the weekend tightened social restrictions after an increase in cases found in the community. Cumulatively, the country has confirmed more than 61,300 cases as of Sunday and 31 deaths, health ministry data showed.Balakrishnan said around 20% of Singapore’s population has been vaccinated, but the government doesn’t have a defined threshold for when “herd immunity” would be reached. He explained that as new Covid variants emerge, the level of protection needed in a community so that the disease no longer transmits rapidly will change.It is likely that the immunity from vaccination may also wane with time. So the point is, you can’t expect to say you’ve reached the magic figure and you’re suddenly immune and it’s mask off and no restrictions.Vivian BalakrishnanSingapore’s Foreign Minister”As new variants keep evolving and as these new variants in fact appear to be more infectious than the original strain, the level of herd immunity mathematically will change,” said Balakrishnan.”It is likely that the immunity from vaccination may also wane with time. So the point is, you can’t expect to say you’ve reached the magic figure and you’re suddenly immune and it’s mask off and no restrictions,” he added.Singapore-Hong Kong travel bubbleSingapore is a Southeast Asian city-state with no domestic air travel market. The country has reached an agreement with Hong Kong — a city that similarly has no domestic air market — to form a travel bubble that allows travelers to skip quarantine.When CNBC asked whether the scheme is on track to begin on May 26, Balakrishnan said: “As of now the plan is yes, but we have to watch how the situation evolves over the next few days.”The launch of the air travel bubble — initially slated for November 2020 — has been postponed multiple times after a spike in coronavirus cases in Hong Kong.The two cities said last month that the scheme will start with one flight a day into each city, with up to 200 travelers on each flight. More

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    Alibaba's Ant Group will let more users test China's digital yuan

    A logo of Ant Group is pictured at the headquarters of the company, an affiliate of Alibaba, in Hangzhou, Zhejiang province, China October 29, 2020.Aly Song | ReutersBEIJING — Ant Group, an affiliate of Alibaba, is becoming one of the first major privately run businesses to work with China’s digital currency trials.MYbank — an online-only bank in which Ant has a 30% stake — is allowing some users to link their accounts with China’s digital yuan app, state-backed China Securities Journal said Monday.The new feature is accessible to some users through Ant’s Alipay app, another report from the journal said. Alipay is one of the two primary mobile pay apps in China, where using smartphones for daily payment transactions is the norm.In the last year, the People’s Bank of China (PBOC) has distributed several million dollars’ worth of a digital yuan through an app that is connected with the six major, state-owned banks. These tests have allowed selected users to buy products from participating brick-and-mortar stores and JD.com’s e-commerce app.Ant did not confirm the exact nature of its participation in the digital currency project, but said that along with MYbank, the group would be involved with trials and research around the digital yuan — also called e-CNY — according to a statement.”As one of the participants in the trial of the e-CNY, Ant Group’s associate MYbank will steadily advance the trial pursuant to the overall arrangement of the People’s Bank of China,” the company said. “Ant Group, together with MYbank, will also continue to support the research, development and trial of PBOC’s e-CNY.”MYbank said it had more than 35 million small business and individual clients as of the end of last year, marking growth of 68% from the year before.It was not immediately clear to what extent MYbank users could transact in the digital yuan.The news comes as Chinese authorities seek to encourage spending through shopping festivals this month in Shanghai and other cities, where state media said some merchants are accepting the digital yuan.Reuters reported in late February that MYbank and WeBank, an internet bank backed by Tencent, were joining the central bank’s digital currency pilot.Chinese media noted on Monday that WeBank accounts were not yet activated for use with the digital yuan app. A representative for WeBank did not immediately respond to a request for comment.Ant’s increased involvement with the digital yuan comes despite increased scrutiny from Chinese regulators. Authorities abruptly suspended Ant’s massive IPO in November and last month, regulators said Ant would restructure as a financial holding company.Unlike internationally popular cryptocurrencies like bitcoin, China’s digital currency is controlled by a single authority — the central bank. More

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    The time to negotiate an annual month of remote work may be now

    In addition to on-site yoga classes and ergonomic desks, companies may have a new wellness initiative up their sleeves — granting workers an annual period of remote work.  Remote work has proved popular with many workers, with 54% of employees saying they want to keep working from home after the pandemic ends, according to a survey by the Pew Research Center.But that’s not likely to happen. Many more companies are expected to transition to hybrid work arrangements this year for the best of both working worlds — flexibility with the focus of an office environment, less loneliness yet less of a commute. Yet, a hybrid schedule of say, three days in the office and two days out will not allow for one of the greatest perks of the work-from-home scheme: the extended “workcation.”Workcations — and their lesser-known cousin, the wellness sabbatical —  blur the lines between work and vacation. They’re work, for sure, but with a better view. Research shows they can be a therapeutic change of pace that supplement, rather than replace, regular vacation time.  Will annual remote work become the norm?”A block of time is an interesting concept,” said Lynne Cazaly, a workplace specialist and author of “Agile-ish: How to Create a Culture of Agility.”She said the idea could be attractive during certain seasons (summers, yes, but also snowy winters), school holidays and other “tricky times of the year.”If you’re not offering these kinds of evolving benefits, there’s a competitive disadvantage.Lynne Cazalyworkplace specialist and speakerShort durations of remote work would also let employers compete with companies that are instituting indefinite flexible work arrangements, said Cazaly.”Many leading indicator companies — like Spotify, Twitter, Square, Unilever, Atlassian — have said their employees can forever work from home,” she told CNBC. “Companies … know there is a growing war for talent … if you’re not offering these kinds of evolving benefits, there’s a competitive disadvantage there.”Just look at Google. In an email to employees last week, CEO Sundar Pichai announced workers could now take four “work-from-anywhere weeks” (up from two) to give “everyone more flexibility around summer and holiday travel.”Fewer pandemic-style problemsThe problems many employees felt working from home for the past year — such as isolation and lack of social interaction with colleagues — aren’t as likely with short-term stints away from the office.In fact, workers who use the time to travel can improve their mental well-being, rather than harm it, said Susie Ellis, CEO of the Global Wellness Institute.”Academics have actually studied the impact of sabbaticals on well-being, whether the traditional one-year academic variety or a-month-or-more work sabbatical,” she said. “The research indicates [they] decrease people’s stress, boost overall wellbeing and help people work more creatively.”Google announced last week 60% of its workforce will work around three days a week in the office, 20% in new office locations, and 20% from home.David Paul Morris | Bloomberg | Bloomberg | Getty ImagesEmployers’ concerns may be equally as manageable. According to a survey by PricewaterhouseCoopers, 68% of executives said workers should be in the office at least three days a week to maintain company culture, once the pandemic subsides. For employees working that schedule, one month of remote work is akin to asking for 12 additional off-site days a year.Furthermore, the move to hybrid schedules means the old way of working (with everyone in the office) and pandemic-style working (with everyone online) may both become a thing of the past, said Cazaly, adding that a mix of “people here, there and anywhere is where it’s at” now.Will it work for your industry?While some industries cannot easily work from home — retail, construction, entertainment and health care, to name a few — Pew’s research showed a majority of workers in these industries can:information and technology: 84%banking, finance, accounting, real estate or insurance: 84%education: 59%professional, scientific and technical services: 59%Yet among those sectors, another obstacle awaits — buy-in from company leadership. From Facebook to Google, the tech industry is embracing the flexible work trend, while the titans of banking have started to publicly reject it.JPMorgan Chase chairman and CEO Jamie Dimon indicated last week he is no fan of the work-from-home trend, while Goldman Sachs CEO David Solomon called it “an aberration that we’re going to correct as quickly as possible.”Jaya Dass, managing director of recruitment agency Randstad in Singapore and Malaysia, cautions employees to do a “reality check” before requesting remote work opportunities.  “Being able to work collaboratively and determine work outcomes in a remote setting is not as easy as it sounds,” she said. “If your performance does not meet your manager’s expectations this past year, they may be waiting for you to return to the office to assess if remote work is the variable factor that is impacting your work.”At the same time, Dass noted it wouldn’t be wise for businesses to unnecessarily decline employees’ annual remote work requests, or else “you may risk losing their trust and loyalty to the company.”Tips for getting an annual period of remote work1.     Don’t waitWhen is the right time to ask for annual remote work? “Now, now, now,” said Cazaly, adding that some companies may revert to pre-Covid work practices as time passes. 2.     Do your researchReview your employee handbook or speak with someone in human resources to determine if your company already has a remote work policy, said Amanda Augustine, a career coach at the resume writing service TopResume.”If no such policy exists, don’t let this deter you,” she said. “Instead, search online for news of other organizations — ideally competitors, companies that share similar traits or that your CEO admires — that have stated they plan to allow at least some of their employees to continue telecommuting after the pandemic.”3.     Be strategicConsider your manager’s personality when deciding how to start the conversation.”If your boss prefers people who are direct, schedule a meeting with a clear objective: ‘I’d like to schedule some time with you to discuss extending my period of remote work,'” Augustine said.Use video chat to ask for an annual period of remote work to gauge your employer’s body language, advises career coach Amanda Augustine.Alistair Berg | DigitalVision | Getty ImagesIf your manager is less direct, broach the subject during your next one-on-one meeting. Either way, make sure the conversation takes place over video, not via phone, said Augustine.”This will allow you to observe your manager’s body language and help you gauge whether your proposal is being well-received,” she said.4.     Arm yourself with dataUse research to explain how remote work can be a win-win for you and your employer.”Studies have shown that companies that offer work-flexibility options can avoid employee burnout, increase retention rates, decrease absenteeism, improve productivity and improve overall employee morale,” said Augustine.Cazaly agrees: “Companies know that happier employees are more engaged, productive and stay longer.”5.     Show you’re a hard workerEven though remote work has shown productivity gains in the past year, companies may push back against short-term remote requests if they are concerned staff won’t work efficiently away from the office, said Cazaly. To combat this, demonstrate you have a great work ethic and are committed to your role, she said.Augustine calls this sharing “your professional wins.” Remind your boss of the goals you’ve met or exceeded since you started working from home, she said.6.     Prepare for objectionsPrior to making your case, eliminate possible objections from your employer. Boost your Wi-Fi, purchase a new router, fix lighting for video calls and purchase noise-canceling headphones, Augustine advised.Then assure your managers that while you’re away, you’ll be accessible and will never compromise on quality work, said Randstad’s Dass.If companies aren’t budging, try another optionIf employers balk at a one-month request, ask to combine two weeks of remote work with two weeks of vacation time.Kristen Graff, a Singapore-based sales and marketing director, negotiated with her employer to spend a month in Hawaii this summer with time evenly split between vacation and remote work.  “I know I’m probably the exception, but I didn’t want four weeks of vacation,” said Graff, adding that one of the things she most wanted was a “change in environment … from a productivity and inspiration point of view.”Graff said she would be interested in an annual period of remote work, but she feels the idea is “really dependent on the person.””It takes a lot of self-motivation,” she said. “You have to work, otherwise you’ll ruin it for everybody.”   More

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    How should multinationals be taxed?

    FOR YEARS governments have grumbled, simmered and raged as multinational companies have shifted profits out of tax collectors’ grasp and into low-tax havens. The OECD, a club of mostly rich countries, estimated in 2015 that avoidance robs public coffers of $100bn-240bn, or 4-10% of global corporation-tax revenues a year. Now the fiscal fallout of covid-19 is adding urgency to governments’ efforts to claw some money back—most notably in America, where President Joe Biden plans to raise taxes on corporate profits, including foreign income.Mr Biden’s proposals will grind their way through Congress. Finance ministers from the G7 group of countries are likely to discuss global tax reform when they meet in London on June 4th-5th. And later in the summer 139 countries will discuss changing the system for taxing multinational companies. The confluence of a political shift in America and a global push to raise more tax revenue to pay for the pandemic means a degree of optimism is in the air. The proposals under discussion may initially raise only a modest amount of revenues, but they still represent a big break with the past.The foundations of the global corporate-tax system were laid a century ago. It recognises that overlapping taxes on the same slice of profits can curb trade and growth. As a result, taxing rights are allocated first to wherever profits are produced (the “source”) and then to wherever the parent company is headquartered (or “resident”). A multinational headquartered in America but with an affiliate in Ireland, for example, typically pays taxes in both places. Where the company makes its sales is irrelevant. Payments between an individual firm’s various legal affiliates are recorded using the “arm’s-length” principle, supposedly on terms equivalent to those found on the open market.These principles, now baked into thousands of bilateral tax treaties, have had two unintended consequences. First, they have encouraged governments to compete for investment and revenue by offering tantalisingly low tax rates (see chart 1). In 1985 the global average statutory corporation-tax rate was 49%; in 2018 it was 24%. Ireland boasts a statutory rate of just 12.5%; Bermuda, 0%. Second, tax competition has encouraged companies to shuffle their reported profits to low-tax places. In 2016 around $1trn of global profits were booked in so-called “investment hubs”. These include the Cayman Islands, Ireland and Singapore, which apply an average effective tax rate of 5% on the profits of non-resident companies.There is a huge mismatch between where tax is paid and where real activity takes place. Analysis by the OECD suggests that multinationals report 25% of their profits in investment hubs, although only 11% of their tangible assets and less than 5% of their workers are based there. Parents can allocate paper profits to affiliates in tax havens by having them hold intellectual property that is then licensed to other affiliates in high-tax places. The problem seems to have worsened over time, perhaps because more firms make money from intangible services, from software to streaming videos. The share of American multinationals’ foreign profits booked in tax havens has risen from 30% two decades ago to 60% in 2019. Most investors and bosses view firms’ tax bills as a black box that only a few lawyers and tax experts truly understand.One way of capturing the scale of manipulation is to examine what would happen if there were a single common tax rate. A recent study by Thomas Torslov of Kraka, a Danish think-tank, and Ludvig Wier and Gabriel Zucman of the University of California, Berkeley, tried to quantify this. A staggering $670bn in paper profits, which are unconnected to things like factories, would have moved in 2016—almost 40% of multinationals’ foreign earnings. Big Western countries are losers from the current system: profits in America and France, for instance, are depressed by around a fifth (see chart 2). Meanwhile, despite their rock-bottom effective rates, havens collect more revenue, as a share of GDP (see chart 3). Hong Kong collects a third of its corporate-tax receipts by attracting profits from high-tax countries; Ireland, over half.The rise of Silicon Valley has added fuel to the fire. Some governments gripe at giant firms serving customers without any physical presence in their country and while paying no tax. The problems posed by the tech firms are not in fact new: pharmaceutical companies have long held mobile and hard-to-value intellectual property; exporters do not incur tax liabilities where they sell. Still, digital services have become a target. More than 40 governments, from France to India, are either levying or planning to levy digital-services taxes on the revenue of firms such as Amazon, Google and Facebook.You say you want a revolutionThe building sense of anarchy over how to tax Silicon Valley, the global desire to raise more tax revenues and a more conciliatory White House all mean the scene is set for a global deal. The OECD’s forthcoming summit is not the first time it has tried to orchestrate reforms—it helped pass changes to the transfer-pricing regime in 2015. But this time two more ambitious proposals are under discussion.The first would reallocate taxing rights so that a slice of profits could be levied according to, say, the location of a company’s sales. That right could be incurred even if the company had no physical presence in the country. Mr Biden’s negotiators have proposed a reallocation that would apply to the 100 biggest and most profitable companies worldwide; in return, the Biden administration wants all the digital-services taxes to be dropped. The second element would apply a minimum rate of corporation tax, putting a floor on the race to the bottom. The Biden administration is gunning for a global minimum tax rate on foreign earnings of 21%, applied to profits within each jurisdiction separately.Could these ideas form the basis for an eventual deal? The proposal for profit reallocation has been broadly welcomed by other big rich economies. Yet there is still plenty of scope for disagreement on the details. Assessing the location of sales made by one business to another, if it then goes on to make sales in a different country, is tricky. Some governments also still want to turn the screws on Amazon, Apple, Facebook, Google and the like: the European Union seems to be preparing to go ahead with a digital levy regardless of the outcome at the OECD. That in turn could cause some American lawmakers to eschew global co-operation. Meanwhile many tax havens may resist higher minimum tax rates that eliminate the advantage for companies from booking profits there.As a result any deal will involve compromises. The amount of profit that is reallocated in order to resemble economic reality more closely could be capped. For example, the OECD‘s blueprint does take the radical step of considering companies as a whole, rather than separated into affiliates. Still, most profits would remain taxed as they are. The right to tax, say, 20% of profits above a routine rate of 10% of revenues would be reallocated according to a formula that could be based on sales. Meanwhile America’s preferred minimum rate of 21% is unlikely to be agreed on more widely, as countries sniff about tax sovereignty. A rate of 10-15% is much more realistic.How much difference would changes of this magnitude make? The reallocation plan, as it stands, aims to raise a puny $5bn-12bn in annual revenues. The OECD reckons that a minimum rate of 12.5% would raise $23bn-42bn directly through the higher rate, and another $19bn-28bn by reducing profit-shifting. These figures are not particularly impressive, although they might let governments crank up domestic tax rates without worrying as much about the danger of capital flight.Still an agreement on new principles could leave the door open to bolder changes later. Carlos Protto, one of Argentina’s representatives in the OECD talks, says that focusing only on the biggest multinationals helps build consensus now, but also notes that many countries expect the scope of any reforms to be broadened eventually.What if countries cannot agree? America will forge ahead with reforms to its domestic taxes, including provisions that could unilaterally increase the tax load of American subsidiaries of foreign companies that pay skimpy tax bills globally. Meanwhile digital-services taxes could spread like wildfire—potentially incurring American tariffs in retaliation. On May 10th the United States Trade Representative held a fourth day of hearings on retaliating against foreign digital-services taxes. Overhaul or not, tax bills will rise. More

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    Gasoline futures jump as much of vital pipeline remains shutdown following cyberattack

    Signage is displayed on a fence at the Colonial Pipeline Co. Pelham junction and tank farm in Pelham, Alabama, U.S., on Monday, Sept. 19, 2016.Luke Sharrett | Bloomberg | Getty ImagesFuel prices jumped in trading on Sunday night, as much of one of the largest pipelines in the U.S. remains closed following a cybersecurity attack.Gasoline futures jumped 2% to $2.168 per gallon, while heating oil futures rose 1.2% to $2.03. West Texas Intermediate crude futures, the U.S. oil benchmark, advanced 56 cents to $65.46 per barrel. International benchmark Brent crude traded at $68.95 per barrel, for a gain of 65 cents. Natural gas futures were at $2.96 per million British thermal units, while Colonial Pipeline said Sunday evening that some of its smaller lateral lines between terminals and delivery points are once again online, but that its mainlines are still shut down.”We are in the process of restoring service to other laterals and will bring our full system back online only when we believe it is safe to do so, and in full compliance with the approval of all federal regulations,” the company said in a statement.How quickly service is restored to the pipeline remains the crucial factor to watch. While tank farms typically have a few days of stored fuel supply, a prolonged outage could lead to a spike in fuel prices.Colonial Pipeline, which operates the largest pipeline carrying fuel from the Gulf Coast to the Northeast, “halted all pipeline operations” on Friday night as a proactive measure following a ransomware cyberattack.The pipeline is a crucial part of U.S. petroleum infrastructure, transporting around 2.5 million barrels per day of gasoline, diesel fuel, heating oil and jet fuel. The pipeline encompasses more than 5,500 miles and carries nearly half of the East Coast’s fuel supply. The system also provides fuel for airports, including in Atlanta and Baltimore.”Without this, there’s no transportation in the region, so it’s critical the pipeline return to service as soon as possible,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “The impacts will ramp up potentially exponentially after around day 5 or so,” he added.President Joe Biden was briefed on the pipeline closure Saturday morning, and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency is coordinating with Colonial Pipeline.U.S. Commerce Secretary Gina Raimondo said Sunday that it’s an “all hands on deck effort right now.””We’re working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren’t disruptions to supply,” she told CBS’ “Face the Nation.”The pipeline outage comes as Americans are beginning to travel again as restrictions are lifted and the Covid vaccination rollout accelerates. On Friday the TSA screened more than 1.7 million passengers, the highest in more than a year.”The Colonial outage comes at a critical juncture for the recovering U.S. economy: the start of the summer driving season,” noted ClearView Energy Partners. “A sustained disruption that leads to a significant pump price spike could increase prospects of domestic policy interventions,” the firm added.The national average for a gallon of gas stood at $2.962 on Sunday, up 60% from a year ago, according to AAA.Become a smarter investor with CNBC Pro. Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. Sign up to start a free trial today- CNBC’s Emma Newburger contributed reporting. More

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    Stock futures hold steady as investors eye pipeline cyberattack

    Michael Nagle | Bloomberg | Getty ImagesFutures contracts held steady at the start of the overnight session Sunday evening, suggesting that the major U.S. equity indexes could trade at or near records when regular trading opens in New York.Dow futures gained 35 points, while those linked to the S&P 500 rose 0.1%. Nasdaq 100 futures added 0.2%.The moves in extended trading came after last week’s trading ended on an upbeat note with both the Dow Jones Industrial Average and the S&P 500 hitting fresh all-time highs on Friday.Last week, the Dow rallied 2.7% and the S&P 500 gained 1.2%. Despite a 0.9% rally on the week’s final session, the Nasdaq Composite shed 1.5% over the same period.The late-week optimism came despite a far-weaker-than-expected April jobs report, which showed that U.S. employers added 266,000 net payrolls last month. Economists polled by Dow Jones had expected 1 million additions.Mike Wilson, chief U.S. equity strategist at Morgan Stanley, noted that traders appear to have already priced a robust economic reopening thanks to declining Covid-19 cases. Any news that could threaten that narrative could quickly impact where portfolio managers allocate cash”We’re watching expectations vs reality with the market now well priced for reopening. On a cumulative basis, retail sales are above where they would have been on pre-COVID trends – suggesting some expectations risk around the pent up demand narrative,” Wilson wrote over the weekend.”The labor market has less slack than is typical at this point in the cycle,” he added. “We recommend moving up the quality curve and adding more defensive balance as the market shifts toward mid-cycle leadership.”A ransomware attack forced the closure of the largest U.S. fuel pipeline over the weekend. Colonial Pipeline, which operates a 5,500-mile system, said it was forced to halt the transport of fuel from the Gulf Coast to the New York metro area on Friday as it “took certain systems offline to contain the threat.”The ultimate impact of the attack on fuel prices remains unclear, and analysts say the length of the shutdown will have the greatest impact. Become a smarter investor with CNBC Pro. Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. Sign up to start a free trial today More