| The U.S. is putting the finishing touches to a bill that confronts the rise of China. The cost of shipping goods around the world just hit a record high. One airline is considering giving free flights to people who have had Covid shots. Here's what you need to know to start your day. The U.S. Senate moved toward passage of an expansive bill to bolster U.S. economic competitiveness and confront China's rise, debating some last amendments before a final vote. Senate Majority Leader Chuck Schumer's goal was to pass the legislation before senators leave Washington for a scheduled week-long break. The bill, which has bipartisan support in the Senate but faces significant hurdles in the House, would plow more than $100 billion into U.S. research and development and provide $52 billion to foster domestic semiconductor manufacturing. It also includes a wide array of measures directly targeting China — on human rights and its influence in the U.S. — underscoring the bipartisan angst over the rise of the strategic rival. Asian stocks look set to rise after solid data and President Joe Biden's federal spending plans spurred a rally in U.S. cyclical shares. Treasury yields climbed. Futures pointed higher in Japan and Australia and were steady in Hong Kong. U.S. equity contracts climbed after industrial and financial shares helped the S&P 500 to a small gain. Small-caps outperformed and the tech-heavy Nasdaq 100 slipped. Meanwhile, Biden is reportedly set to unveil a budget that would take federal spending to $6 trillion in the coming fiscal year. The 10-year U.S. Treasury yield advanced past 1.6%, a gauge of the dollar was steady and the yen held a decline amid month-end rebalancing. The cost to move goods in a shipping container to Europe from Asia shot above $10,000 for the first time on record, underscoring the pain inflicted on exporters and importers struggling with stretched supply chains. The Drewry World Container Index showed the rate for a 40-foot container from Shanghai to Rotterdam rose to $10,174, up 3.1% from a week ago and a 485% jump from a year ago. The composite index of eight major routes rose 2% to $6,257 from a week earlier and was 293% higher than a year ago. Container rates are surging because demand is outstripping the availability of the 20- and 40-foot steel boxes that carry the lion's share of global trade. After much fanfare before their launch, Hong Kong's virtual banks are making limited inroads against their bricks-and-mortar rivals in the financial hub. The two leading digital banks so far, Mox Bank, backed by Standard Chartered, and ZA Bank, bankrolled by China's ZhongAn Online P&C Insurance, predict they will start breaking even by 2024 at the earliest. The new lenders have refrained from undercutting their traditional rivals on price. ZA now offers a rate of 1% for the first HK$200,000 ($25,770) and 0.01% thereafter. The incumbent banks, which include HSBC and Hang Seng Bank, were quick to rise to the challenge, upgrading their digital channels and re-thinking some of their minimum deposits and fees, according to ZA's CEO Rockson Hsu. Yes, you read that right. Qantas is considering giving free flight vouchers or air miles to people who've had Covid-19 shots, joining a growing list of businesses offering vaccination incentives to kick-start global travel. While details haven't been finalized, fully inoculated Qantas frequent fliers might also be offered free loyalty status credits, Qantas said in a statement. As reluctance in many countries to get vaccinations threatens a recovery from the pandemic, companies with the most to gain from a global reopening are pitching in. United Airlines is offering vaccinated frequent fliers the chance to win free flights for a year. Even dating sites including Tinder are rolling out incentives such as profile boosts for users who've been jabbed. What We've Been ReadingThis is what's caught our eye over the past 24 hours: And finally, here's what Tracy's interested in todayIt's often said that the strictness of U.S. anti-money laundering and sanctions laws give America huge power. Since the dollar remains the dominant method of payment, these laws give the U.S. an incredibly robust tool to target foreign governments, companies and any other entities perceived as being bad actors. In Hong Kong's national security law — the sweeping legislation introduced last year following pro-democracy protests in the city — China may have found something similar. On Thursday, we got the clearest sign yet about the potential reach of the new law from reports that Hong Kong authorities sent letters threatening media tycoon Jimmy Lai's bankers at HSBC and Citigroup with up to seven years in jail if they deal with any of his frozen accounts in the city. As with money-laundering, the onus is now on financial institutions and other companies to ensure they and their customers are in compliance with the national security law, or risk facing stiff penalties. You can follow Tracy Alloway on Twitter at @tracyalloway. | 
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