⚡️Labor plans tax cuts overhaul

Good morning. Here's what happened overnight and what you need to know today.

1.

Taxing politics: The Albanese government will retain the 37% tax bracket under an overhaul of the stage 3 tax cuts, exposing the prime minister to attacks that he has broken an election promise. Citing government sources, Capital Brief reported that the 37% rate currently applied to every dollar earned between $120,000 and $180,000, which the Morrison government had legislated to be axed, will be kept but raised to a higher threshold. The changes are likely to be officially revealed in full right ahead of Albanese speaking the Press Club on Thursday. (Capital Brief)

2.

Hits and misses: Major US companies posted mixed results as earnings season hit its stride. 3M shares tumbled on a weak outlook for annual earnings, while Verizon and United Airlines jumped on the back of strong annual forecasts. Johnson & Johnson shares fell despite the company reporting quarterly results slightly above expectations, as it announced it had tentatively agreed to pay around USD700 million to settle a lawsuit brought by over 40 US states over the marketing of its talcum-based baby powder. (Reuters)(Wall Street Journal)

3.

Rescue mission: China stocks rallied on Tuesday following a report from Bloomberg that Chinese policymakers are considering a 2 trillion yuan ($430 billion) stock market rescue package, as authorities scramble to stem a selloff that pushed the benchmark CSI 300 Index to a five-year low this week. Despite the gains and prospect of a stabilisation fund, some investors remain sceptical over Beijing’s long-term policy roadmap. (Bloomberg)

4.

GOP primaries: Polls have opened in New Hampshire’s Republican presidential primary, as former president Donald Trump and rival Nikki Haley go head-to-head in what could deliver a watershed moment for the 2024 race. Trump is ahead in the polls but Haley scored a small victory overnight, winning the support of all six registered voters in the Dixville Notch township who cast their ballots early. (Axios)

5.

Net-zero expenses: A draft European Commission document seen by the Financial Times reveals that the EU must invest €1.5 trillion per year between 2031 and 2050 in order to meet its net zero goal. The investment would be required to cut greenhouse gas emissions 90% by 2040 and meet its target of economy-wide climate neutrality by 2050. (Financial Times)

6.

Israel-Hamas war: The Israeli Defence Force suffered its worst single-day death toll since war broke out with Hamas in early October last year, with 24 soldiers killed during fighting on Monday, and 21 of those in a single incident. IDF soldiers had laid mines in two buildings which are thought to have been set off by a rocket-propelled grenade fired at a nearby tank. Almost 25,500 Palestinians have been killed in Gaza since the war began, according to health authorities in the Hamas-ruled territory. (Financial Times)

7.

ETF disappointment: The price of Bitcoin dropped 5%, slipping under USD39,000 to reach its lowest level in two months. The fall means the cryptocurrency has reversed almost all gains it had made as markets feverishly awaited SEC approval for spot exchange-traded funds which was granted earlier this month. (CoinDesk)

8.

Ready to rumble: Netflix has bought the exclusive rights to ‘Raw’ and other programs from World Wrestling Entertainment (WWE) for USD5 billion. The payment will be made over the course of the 10-year deal, reports Bloomberg, and marks Netflix’s first move into live events. Shares in WWE owner TKO Group Holdings jumped 21% on the news. TKO also announced that Dwayne “The Rock” Johnson will be appointed to its board. (Bloomberg)