- Deutsche Bank: additional tax should be taken from homeworkers
- Critical Chinese decree from Trump
- JPMorgan’ stock recommendation
Deutsche Bank: Additional Tax Should be Taken From Homeworkers
Germany’s largest bank, Deutsche bank has a proposal regarding tax regulations during economy that has been shattered by the pandemic. Luke Templeman, the banks economist, recommends taking additional 5% tax on homeworkers per day of work to help to rebuild from Covid-19. He mentioned that, remote workers should be taxed due to the additional financial benefit they have for not attending the office.
According to the report of Financial News, the economist stated that: ‘’ The tax in question should be applied to support employees who are suddenly out of their jobs or who are not able to work remotely and receive lower wages.’’
Economists argued that this practice would not make the average employee poorer, and this was argued on the grounds that less money would be spent on transportation, food and work clothes.
As another alternative, it was suggested that these taxes can be paid by the employer who does not allocate a permanent desk or workplace to his employee.
In the report published by the economic research unit of the German lender, it was calculated that from such a tax, $ 49 billion in the USA, 20 billion Euros in Germany and 7 billion in England can be collected annually. It is stated that this money can be spent on state aid to low-wage workers who cannot do their jobs from home.
“It will be a part of the new normal after the pandemic”
Jim Reid, global head of core credit strategy and thematic research at Deutsche Bank, said, “Working from home will be part of the ‘new normal’ after the pandemic. Our calculations show that with the sums to be obtained, those who cannot work remotely, therefore rather, take on the ‘old economy’ and health risks. It shows low-income workers that monetary income subsidies can be financed. “
Critical Chinese Decree from Trump
In the statement made by the White House, it was stated that US President Donald Trump signed a decree regarding the Chinese companies that support the Chinese military. In this decree, it was prohibited for Americans to invest in such companies.
Pointing out that China is increasingly exploiting US capital to provide resources for developing its army and intelligence, Trump stressed that this situation directly threatens the United States.
Trump stated that China has developed the country’s military industry by forcing civilian companies to support the military and intelligence activities, and that these companies are increasing capital by selling securities to U.S. investors.
US President Trump said, “In this way, China is using US investors to finance the development and modernization of its army.” found the assessment.
It was noted that 31 companies determined by the Ministry of Defense, are now on the investment ban list, in the decree signed by Trump.
Under the decree, US companies and individuals were prevented from owning shares in Chinese companies that support the Chinese military, either directly or through funds.
It is stated that the decision, which will take effect on January 11, 2021, may affect China’s large aviation, construction, technology and telecommunications companies.
JPMorgan’ Stock Recommendation
Following the effective results announced from the vaccination studies, JPMorgan strategists decided to increase the position of global stocks in the model portfolio from 8% to 10% while reducing the position of government bonds.
According to the company’s strategists, the vaccine announcements the world got this week are “groundbreaking” for the markets and these news are sending a strong buy signal to the markets.
Strategists of JPMorgan said about this recommendation, “We think the stock rally and bond sales will continue. We maintain our pro-risk position in our model portfolio with our expectation of loosening important market risks, moderate investor positioning, strong growth recovery and high-grade policy support in the upcoming period.”
There was rapid rally in the markets after the latest research on the Covid-19 vaccine developed by the US Pfizer and German Biontech companies showed that 90 percent protection against the disease was provided.
However, cautious statements came from three major central bank governors against the expectation of a rapid recovery in economies with the coronavirus vaccine.
European Central Bank President Christine Lagarde, Bank of England President Andrew Bailey, and Fed President Jerome Powell stated that: ‘’They do not expect the Covid-19 vaccine developments to quickly reverse the negative impact of the pandemic.’’