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The G7 tax deal struck by the world’s leading advanced economies this weekend is the first substantial evidence of relaunched international cooperation since President Joe Biden brought the United States back to the negotiating table. Yet there is still a long way to go before it can be implemented.
“This is a starting point,” said French Finance Minister Bruno Le Maire, promising that “in the coming months, we will fight for this minimum corporate tax rate to be as high as possible”.
The deal aims to close loopholes multinationals have exploited to lower their tax bills, by ensuring they pay more in the countries where they operate.
G7 ministers supported a global minimum rate of at least 15% and agreed that countries should have the right to tax a certain proportion of the profits of the largest and most profitable multinationals where they are generated.
Go further: The FT’s view calls the weekend’s deal between G7 finance ministers a revolutionary opportunity to reverse the process of large multinationals channeling their profits to low-tax jurisdictions – and ensuring that companies visibly make a fair contribution to post-pandemic recovery. For this to be successful, they write, the world’s largest economies will need to enroll more broadly. But it is in their own interest to do so.
United States will donate 750,000 Covid-19 vaccines to Taiwan, signaling support for the country after Taipei accused Beijing of interfering in its efforts to get beatings.
India getting ready to relax containment rules as coronavirus cases drop to two-month low (Reuters)
Antoine Fauci, The White House’s chief medical adviser has become a lightning rod in a politicized debate over the origins of Covid-19. He faces calls for resignation from the American right. “It worries me what he’s saying about this country,” he told reporter Kiran Stacey.
The Covid-19 pandemic ended in Norway, according to one of the doctors at the head of the response. It has the lowest infection rate since last summer, but caution is advised as long as local outbreaks remain
Great Britain plans to offer Covid vaccines to adolescents later this year
In the news
Merkel’s party soars in German state vote, defeating far right German Christian Democrats won a decisive election victory in eastern Saxony-Anhalt on Sunday in a huge boost for their leader Armin Laschet and her candidacy to succeed Angela Merkel as chancellor in September.
Markets on hold as Peruvians vote in close election Financial markets were in suspense as Peruvians voted on Sunday in one of the most polarized elections in the country’s history, with private polls showing candidates neck and neck. The election pits Pedro Castillo, a rural primary school teacher turned far-left populist, against Keiko Fujimori, the widely hated daughter of the authoritarian former president of Peru Alberto Fujimori.
Dubai Reit must fight ahead of vote on Islamic bond restructuring A group of international lenders are fighting for greater transparency and governance changes in a major Dubai real estate investment trust ahead of a crucial vote on its restructuring plans on Monday, marking a rare case of investor activism in the Gulf .
Kremlin could further restrict food exports to protect it from high prices Russia has warned it is ready to expand its export restrictions on key food items after recent price hikes prompted the Kremlin to cap the domestic cost of staples such as sugar and flour, a said the country’s Minister of Economy.
Volkswagen nears â¬ 10m settlement from ex-chief Martin Winterkorn Volkswagen will recommend that its shareholders agree to a settlement of around 10 million euros from former boss Martin Winterkorn, according to people familiar with the matter. Winterkorn was the head of the group before the diesel emissions scandal in 2015, in which 11 million vehicles were found to have software that tricked emissions tests.
Japan plans to launch vaccine passport this summer Japan intends to emit Covid-19 vaccination certificates this summer to vaccinated residents traveling abroad, hoping to boost business travel and other economic activities. (Nikkei)
Democratic senator says he will vote against Biden’s voting rights bill Conservative Democratic Senator Joe Manchin, who holds a decisive vote in the US Senate, on Sunday promised to block a bill revising US electoral law, presenting a major setback to Joe Biden’s efforts to reform voting rights.
The coming days
China Trade and Foreign Exchange Data Figures for May will be released on Monday. At the end of last month, the Chinese central bank asked financial institutions to keep more foreign currency in reserve after the yuan reached a record high three-year high against the dollar. (Reuters)
Johnson and Biden reunited out of geopolitical necessity Joe Biden’s first overseas trip as US President this week for the G7 summit will include three days at a boutique hotel in Cornwall with Boris Johnson, the UK Prime Minister he described as memorable way in 2019 as “a physical and emotional clone” of Donald Trump.
Thailand launches vaccine deployment Thailand will launch its Covid-19 vaccination program today, focusing primarily on the Oxford / AstraZeneca vaccine produced by Siam Bioscience, a company owned by King Maha Vajiralongkorn that has never produced a vaccine before. Infections are on the rise in the country, with 2,000 to 4,000 new cases reported per day – the highest since the start of the pandemic.
Apple’s WWDC Launch Apple is hosting its annual Global Developer Conference, which will be fully digital for the second year in a row. (Chez Barron)
What else do we read
A new capital in the Egyptian desert: Egyptian President Abdel Fattah al-Sisi announced that the inauguration of a “new administrative capital” covering a strip of desert equal to the size of Singapore, would represent the “birth of a new state”. With private developments alongside military projects, the goal is to have 6.5 million people living in the city. Critics see it as a vain project, writes Andrew England, and say the expanding role of the military in the state and economy is crowding out the private sector and driving foreign investors away.
Interview: Gaming Pioneer Shakes SoftBank Board of Directors Masayoshi Son turned to a friend of four decades, Keiko Erikawa, to become the new female board member of the Japanese tech group. Erikawa is known for a different management style than the billionaire’s high-risk approach to tech, writes Kana Inagaki: The $ 7.5 billion video game company she co-founded with her husband has never laid off an employee or made a loss in 43 years.
Politicians should set new ground rules for digital markets Tech companies have too much economic power over workers and consumers, writes Rana Foroohar. We need to rebalance the market system itself, so that actors on both sides of a given transaction have equal access to information, a shared understanding of what is bought and sold, and a common set of rules.
Do you speak wine? In recent decades, as interest in wine has grown, the descriptions – the so-called tasting notes – have become more and more extravagant. Professional tasters type in words like “dried strawberries, iodine, oyster shell, damp earth, fresh mushrooms, flowers, ripe black peaches and nectarines.” But the change in the language we use to talk about wine is coming, writes Jancis Robinson.
Back to work woes Pollsters consistently find that only a minority of employees who can work remotely want to return to the office full time. This means an almighty showdown is looming between bosses who want everyone back to headquarters and their workers, writes Pilita Clark. She implores, âDon’t make me go back to hard pants five days a week. “
Caricature of the day
Japan to extend Covid-19 state of emergency as Olympics loom