“The more often a stupidity is repeated, the more it gets the appearance of wisdom,” — Doug Kass

1. Nvidia’s $40 Billion Deal for Arm Faces U.K. National-Security Probe — U.K. Digital Secretary Oliver Dowden on Monday invoked a little-used power to order the country’s antitrust agency to investigate the merger’s national-security implications and deliver a report by July 30. The secretary can eventually clear the deal, with or without conditions, or nix it. The U.K. probe is the latest example of how governments around the world are increasingly tightening control over semiconductor technology, after the past year demonstrated how access to advanced microprocessors can make or break some of their biggest companies.
2. Biden Wants to Cut Greenhouse Gas Emissions in Half by 2030 — Biden will call for reducing emissions to 50% of their level in 2005 as part of global efforts to fight climate change. Emissions fell by 21% from 2005 levels during the pandemic, but are ticking higher again this year as the economy recovers. Biden invited 40 world leaders to the White House event, including Russian President Vladimir Putin. The invitees include 17 countries responsible for 80% of global greenhouse gas emissions. More than 300 companies, including Apple, Walmart and Johnson & Johnson, sent Biden a letter last week saying they were in favor of cutting emissions by at least 50%, while others worry Biden’s policies will harm the economy.
3. Intel CEO Sees Prolonged Chip-Supply Constraints — Pat Gelsinger, Intel CEO, said the supply constraints that have affected some sectors of the global economy for months will continue until more capacity comes online to meet chip demand for everything from automobiles to electronics. Mr. Gelsinger this month laid out an ambitious strategy for Intel to become a major contract chip maker in addition to making semiconductors to satisfy its in-house requirements. The plan includes a $20 billion spending commitment to build two new semiconductor plants in Arizona.
4. J&J Covid-19 Vaccine Pause Over Blood-Clot Fear Is Under Review — J&J vaccine injections were put on hold last week after reports of rare blood-clot conditions in a small number of recipients, including at least three fatalities. Many public-health authorities, however, contend that the benefits of the vaccine outweigh the risks. Anthony Fauci, President Biden’s chief medical adviser, has predicted the U.S. pause would end as soon as Friday, perhaps with new restrictions or warnings. A recommendation to lift the pause—and agreement by the FDA and CDC—could put the vaccine back in circulation as early as this weekend, because millions of doses have already been distributed to vaccine sites.
5. Biden Eyeing Tax Rate as High as 43.4% in Next Economic Package — For those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means that federal tax rates for wealthy investors could be as high as 43.4%. The new marginal 39.6% rate would be an increase from the current base rate of 20%, the people said on the condition of anonymity because the plan is not yet public. A 3.8% tax on investment income that funds Obamacare would be kept in place, pushing the tax rate on returns on financial assets higher than rates on some wage and salary income, they said. Other measures that the administration has discussed in recent weeks include enhancing the estate tax for the wealthy. Biden has warned that those earning over $400,000 can expect to pay more in taxes. The White House has already rolled out plans for corporate tax hikes, which go to fund the $2.25 trillion infrastructure-focused “American Jobs Plan.”

The week ahead — Economic data from Econoday.com: