Axios Markets: Progressives want supersized spending

1 big thing: House progressives want Biden to supersize spending | Friday, March 26, 2021

Open in app View in browser   Presented By J.P. Morgan Wealth Management   Axios Markets By Dion Rabouin ·Mar 26, 2021 Good morning! Was this email forwarded to you? Sign up here. (Today's Smart Brevity count: 978 words, 3.7 minutes.) Situational Awareness: Axios is discussing going public through a SPAC as part of a merger with The Athletic, according to unnamed sources. (WSJ) I have no other information for you.     1 big thing: House progressives want Biden to supersize spending Illustration: Aïda Amer/Axios   Axios' Jonathan Swan writes: Progressive Democrats in the House are privately discussing how they can push President Biden for a second spending package substantially bigger than the $3 trillion over a decade floated in various news outlets this week. Why it matters: These members are attuned to the climate group Sunrise Movement's argument that "the crises we face demand at least $1 trillion per year over the next decade," two sources familiar with the conversation told Axios. Sunrise's extremely ambitious proposal — at least $10 trillion — could quickly emerge as a benchmark for House progressives to rally around. "Progressives feel like this package will define Biden's presidency," one source said, "and that $3 trillion over 10 years feels low, and it may not meet the scope of what we need to do — in particular on climate." The strategy was discussed during a phone call Tuesday among members of the Congressional Progressive Caucus. Several raised concerns about the size of Biden's next spending package, which the president plans to unveil Wednesday in Pittsburgh. They regard the reported scope of the proposal — which some moderates such as Sen. Joe Manchin (D-W.Va.) already consider at the far reaches of acceptability — as too small to meet the moment, the source said. "He should be bold with his opening offer." Between the lines: Biden's next spending bill will involve a longer, messier and more complicated fight between the ideological factions of the Democratic Party. In the $1.9 trillion COVID-19 relief package that just passed, there was agreement among Democrats from the beginning it was going to be entirely deficit-financed. But the next package will likely be more of a running battle. Biden has said he wants to hike corporate and high-income earners' taxes to pay for much of the new spending — which sets up a fight between progressives and moderates. And the ambitions for the proposal keep expanding — everything from meat and potatoes infrastructure (roads, bridges, ports), to broadband and climate initiatives. There are also proposals for substantial investment in social welfare, including expansion of the child tax credit, universal pre-kindergarten, free community college and other measures. Bottom line: "The parameters of the battle will not be locked in at the beginning," said the source familiar with the House progressives' internal discussions. Progressives will view Biden's announcement next week as an opening framing, "and then Congress is going to have a lot more agency in this fight because it's going to be longer. Congress won't have to act by a certain date."     2. Catch up quick WeWork has agreed to go public through a SPAC that will value the company at $9 billion. (Axios) The container ship Ever Given remains stuck in the Suez Canal, blocking passage for some 237 other cargo ships at the latest count, with estimates of oil and consumer goods unable to move through the canal at a value of nearly $10 billion. Dutch firm Boskalis has said dislodging process could take weeks. (Bloomberg) Fixed income strategists expect U.S. Treasury yields to continue rising to at least 1.9%, according to a poll of 70 analysts. (Reuters) News Corp announced Thursday that it has agreed to acquire Investor's Business Daily for $275 million. (Axios)     3. Exclusive: First-ever NFT from 2014 is on sale for $7 million-plus Illustration: Eniola Odetunde/Axios   Axios Capital author Felix Salmon writes: The first-ever NFT was minted by artist Kevin McCoy in 2014 — you can see his presentation with technologist Anil Dash here. Why it matters: While NFTs are regularly talked about as "digital art," few if any of them have much in the way of serious art world credentials. McCoy is an exception. With his wife, Jennifer, he has established himself over many years as a first-rate digital artist. One of their works is on display now at the Metropolitan Museum of Art. "The NFT phenomenon is deeply a part of the art world," says McCoy. "It emerged from the long history of artists engaging with creative technology." The first NFT, "Quantum," which can be found here, has the kind of historical importance that is sometimes ascribed to CryptoPunks; it's therefore of interest to crypto investors and other NFT-collecting technologists. The McCoys' work has historically been collected by art collectors, however — the kind of people who deal in genteel transactions with a gallery, rather than entering into public bidding wars. "Quantum" is for sale, and if rare CryptoPunks can give any indication as to its value, it could fetch $7 million or more. What's not clear is exactly how it will be sold. Says Tamas Banovich, McCoy's gallerist at Postmasters Gallery in New York: "We are trying to figure out which world is appropriate."     A message from J.P. Morgan Wealth Management Level up your investing strategy     Tap into 200 years of expertise and make smarter investing decisions when you partner with J.P. Morgan Wealth Management. Here's how: When you trade commission-free on the Chase Mobile app, you get access to timely investment research and insights, and a support team of real people. Learn more.     4. New York poised to legalize recreational marijuana Axios' Laurin-Whitney Gottbrath writes: New York state lawmakers and Gov. Andrew Cuomo (D) struck a deal Thursday to legalize recreational marijuana, the New York Times reported. Why it matters: If approved, the legislation could pave "the way for a potential $4.2 billion industry" and would reinvest millions of dollars in tax revenue from marijuana sales into minority communities each year, according to the Times. "The deal was crafted with an intense focus on making amends in communities impacted by the decades-long war on drugs," including Black and Hispanic communities, the Times noted. Thursday's agreement comes after several failed attempts to reach a deal in the state. Details: Recreational marijuana use would be legal for people 21 and older, per the Times, which obtained details of the deal. People could cultivate up to six marijuana plants at home for personal use. The legislation would also allow for the delivery of cannabis and permit some clubs or "consumption sites" where marijuana could be consumed, according to the Times. Cuomo's office did not immediately respond to Axios' request for comment. What's next: New York's Senate and Assembly could take up the legislation as early as next week, per the Times. The terms of the deal are still being reviewed. Yes, but: "If approved, the first sales of legal marijuana are likely more than a year away," the Times' Luis Ferré-Sadurní noted. "Officials must first face the daunting task of writing the complex rules that will control a highly regulated market, from the regulation of wholesalers and dispensaries, to the allocation of cultivating and retail licenses, to the creation of new taxes and a five-member control board that would oversee the industry." The big picture: If the legislation is approved, New York would become the 15th state to legalize recreational marijuana use.     A message from J.P. Morgan Wealth Management A partner to help you grow your wealth     At J.P. Morgan Wealth Management, local advisors work with global experts to create smarter investing strategies for you. Why it's important: For over 200 years, J.P. Morgan has guided investors through every kind of market. And when it comes to your most important goals, experience matters. Learn more.     Axios thanks our partners for supporting our newsletters. Sponsorship has no influence on editorial content. Axios, 3100 Clarendon B‌lvd, Suite 1300, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. Change your preferences or unsubscribe here.   Was this email forwarded to you? Sign up now to get Axios in your inbox.   Follow Axios on social media: