1. US stocks at record highs but tax threat looms

US stocks are in record territory and locally we’ve hit 12 month highs but a tax threat for share players looms. Last week, US stocks spiked to new highs as big fund managers ignored threats of higher interest rates, excessive stocks prices for tech companies and the problems of new strains of the Coronavirus in the US, Europe and South America. But surprisingly, President Biden’s proposal to raise the company tax rate from 21% to 28% and his push to gain support for a global minimum tax rate represents a new threat to very positive stock markets. And while this is mainly a US problem, as many doubt world governments would accept a global minimum company tax rate, if Wall Street gets spooked, our market will get the jitters and sell off too.

2. Covid-affected businesses can’t pay more in wages

2.2 million workers in Coronavirus-affected businesses again face another year of no pay rises. The Australian newspaper says “low-paid workers in COVID-stressed industries could be hit by a second year of delayed minimum wage increases as the Fair Work Commission examines whether to again stagger pay rises for 2.2 million workers across the next financial year.” Employers in virus-crushed businesses are asking the commission to either impose a 12-month minimum wage freeze or delay pay increases in industries adversely impacted by the virus for up to seven months. Why seven months? That’s the time when the high level of vaccinations should create more travel and hospitality demand as well as more normal business conditions. In contrast, unions want a 3.5% minimum pay rise for all low paid workers.

3. ASIC: here’s how to fight short sellers

The corporate watch dog, the Australian Securities and Investment Commission (ASIC), will soon give advice on how companies fight short sellers who try to smash their share prices. ASIC is expected to tell listed company directors that they should respond to short selling attacks in detail, and not merely dismiss them as false, or as attempts at market manipulation. Earlier this year, a US-based hedge fund put out a damning report on a local company, Tyro, which saw its share price smashed after the media released the report to the stock market on a Friday. However, after the CEO of Tyro outlined 10 mistakes in the report the next Tuesday, Tyro’s share price gradually rebounded, but many panicking shareholders sold out of Tyro at a loss. And because the short seller was overseas based, it couldn’t be taken to court. ASIC should get media outlets to allow companies to respond to negative reports at the same time as the bad news is released to the market. However, ASIC can’t boss around newspapers.

4. Duck takes out best bird at Sydney Royal Easter Show

Ferdinand the Indian runner duck was named grand champion bird of the show at the 2021 Sydney Royal Easter Show last week, marking the first time a duck has taken out the award since the show began 199 years ago. "He was one of those ducks who never dropped his guard. I looked at him half a dozen times, and he stood there like a soldier," judge Garry Phillips told The Sydney Morning Herald.

5. Big rises for indexes last week

Following gains for the major indexes in the US on Friday, all three closed higher for the week. The Dow rose by 1.95% during the week to 33,800.60, the S&P 500 climbed 2.71% to 4,128.80 and the Nasdaq surged 3.12% to 13,900.19. Despite a small dip for the ASX 200 on Friday, the index was up 2.44% for the week.