Backlash on the global corporate tax pact
A possible backlash against the global corporate tax pact: Global tax negotiators are struggling to get holdout states on board to sign up to the global corporate tax pact agreed by G7 nations earlier this month, the Financial Times reports. China, India, eastern European nations and developing countries have all objected to the proposal while tax havens including Ireland, Switzerland and Barbados are likely to refuse to put pen to paper.
A refresher: The plan would introduce a minimum global corporate tax rate of 15% that would make large corporations pay tax in every country they operate in.
Next steps: G20 finance ministers will discuss the proposal at a summit in Venice next month, after which it will be clearer how many of the world’s largest economies are willing to sign up. “If we can’t get an agreement at the G20 then the chances are that we’ll have to start over for another 20 years of talks on this issue,” one European negotiator said.
But there is cause for optimism, according to another negotiator who tells the salmon-colored paper that “we are not far from an [agreement].”
In other global financial news worth knowing about:
- China’s answer to Uber just priced its NYSE IPO: Didi Global has priced its planned IPO in New York at USD 13-14 per share, which would give the ride-hailing giant a market cap of USD 67.2 bn after shares begin trading on Wednesday. (Reuters)
- Hedgies get burned on reflation trade: Investors on Wall Street who bet against US treasuries in anticipation of rising inflation and a hawkish Fed are rethinking their positions as fears about tightening abate and bonds begin to rally. (Financial Times)
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EGX30 |
10,123 |
-1.5 (YTD: -6.7%) |
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USD (CBE) |
Buy 15.62 |
Sell 15.72 |
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USD at CIB |
Buy 15.62 |
Sell 15.72 |
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Interest rates CBE |
8.25% deposit |
9.25% lending |
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Tadawul |
10,996 |
+0.4% (YTD: +26.6%) |
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ADX |
6,763 |
+0.2% (YTD: +34.1%) |
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DFM |
2,827 |
-0.4% (YTD: +13.5%) |
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S&P 500 |
4,291 |
-% (YTD: +14.3%) |
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FTSE 100 |
7,087 |
+0.2% (YTD: +9.7%) |
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Brent crude |
USD 75.13 |
+0.6% |
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Natural gas (Nymex) |
USD 3.63 |
+1.0% |
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Gold |
USD 1,736.60 |
-1.0% |
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BTC |
USD 36,251 |
+4.5% (as of midnight) |
THE CLOSING BELL-
The EGX30 fell 1.5% at today’s close on turnover of EGP 1.23 bn (1.4% below the 90-day average). Foreign investors were net sellers. The index is down 6.7% YTD.
In the green: MM Group (+2.4%) and Orascom Development Egypt (+1.1%).
In the red: GB Auto (-3.3%), Export Development Bank Egypt (-3.1%) and AMOC (-2.8%).
Asian markets are up in early trading this morning, following US stocks which yesterday rose to new record highs. Futures suggest a mixed open in Europe but early gains for US shares when they open later today.