Good morning from the financial times. Today is Friday, June 11th and this is your ft news, briefing.
G7 have a plan to send more vaccine for a countries will talk about higher inflation and the market non-reaction and our economics editor, Chris child. Will look at some of the challenges to reaching a deal on tax. A global company, Mark, Filipino, and here's the news.
Start your day.
Leaders of the G7 group of advanced economies are meeting in. Picturesque Cornwall, England today will kick off a three-day Summit with a pledge to provide a billion covid vaccine doses to poor countries. The move is aimed at countering criticism that wealthy Western countries. But most of the covid-19 vaccines for themselves, they also want to take on China and Russia have been selling their job to developing nations are the form of vaccine diplomacy
No earlier this week, G7 ministers, reached a deal on tax and global companies. They agreed to tax the company's on, where they do business, not where they're based ministers. Also agreed to set a global corporate minimum tax, at least 15%. Now that's aimed at stopping companies from shifting profits, through low tax places, like Ireland, in the Cayman Islands, I spoke to the ft's economics editor. Chris trials and he told me which countries will benefit by the loss of very big domestic multinationals with a US companies, which do a huge mess of shifting, their profits around the world to tax Havens on the island or places like that. And the global minimum age to buy the ministration is designed to make that much more difficult. Impeller one where is tax paid even there because the USA
Big consuming Market. It's probably going to come out roughly even but other countries hope to gain more because part of the day, does that give up that Digital Services taxes as a price for the day? They need to be able to show that they get more money from this than I do from additional taxes off to be crucial to countries like the UK from Italy. And this is why it is this very delicate, Global compromise with the countries of trying to pull together to stop getting into the tax Ward on haridwar, which is the alternative. Is that comment got an agreement given the delicate nature of this balance. Are we expecting that there might be certain countries that are going to stand in the way of this deal? When it's put to The Wider g20cb hold out on the second part Island. Might be able to stand in the way because it will require some blue European legislation which requires you to never say. So
Eastern European countries of Hungary and Bulgaria have very low corporate tax rates and they are wanting to ensure that there's some sort of cop out for companies that I should be genuine business. I think they really mean things like car companies where there's a factory and you can see that it's a genuine thing rather than some intellectual property that's being pushing one jurisdiction, just for low tire. Again, probably you can do it then that that would that would have called out his like feet. Everyone's of all the little bit about China cuz they haven't said for that. Position is so if you support this before from a global deal being done and they're all countries that need two people with offset me but it seems to be as one of their Republican lawmakers who were sounding some concern.
International agreement and former set, they need some sort of congressional support. This is why the sequencing of a digital Services taxes is causing sent me a little argument. Would like other countries to get rid of these texts. Immediately other countries say, while he know, we can't give you that part of the deal until you, make sure you put it through Congress that we know. You going to stand up to your side of the bargain, we heard from the company. So, you know, if you have two big tech companies, spoken out interest in me since a little bit, at least, was originally about getting the tech company. To pay more tax where they do business, the tech companies are coming out from said, this is great. This is just exactly what we want. I'm with so thankful to the G7 that they've done a deal, I think there's a few things that lie behind that one is that they said they want some 70 and it's of the wild. West of, every country in imposing new taxes, on them is a very uncomfortable one to be operating in. So they prefer a global deal with the devil deal.
We end up the largest multinational might well mean they pay less, and have less tax reallocated that under the digital taxes and I think where they will pay a lot more taxes under the US proposal. For the US Global minimum feel that they can get round by bus going to happen to seven dwarfs. Have I say, this is better than nothing and I prefer a Deal or No Deal.
In financial markets, the biggest worry for investors has been inflation in the US. In particular, the prospect of rising prices and what the US Federal Reserve might do has caused a lot of trouble yesterday data for the month of May. Once again showed a sharp rise in prices up 5% over last year the highest increase in yearly 13 years on the guess that whatever that's our Market editor Katie Martin she reminded me that the key barometer is the bond market in response basically was telling you is that the kind of Big Sky Is Over the big kind of worried that it's going to be the sort of inflation that sticks around for a really long time and really eat since the portfolios. It's probably not this time around so it's quite a strain.
Apple has been incredibly worried about this. Oh yeah, so far, it's okay. So markets are not so worried about him flation at least for now Kitty will help you on the line. I want to ask you about something else yesterday or report came out of Basel Switzerland the center for global banking regulation the report said that banks that hold or provide services in cryptocurrency should have the strictest Capital requirements. What's your take on this?
So this is a bit of a kind of you knows it. The old God strikes back kind of moment for the establishment against Crips. Owe me now what the the Basel committee on banking supervision ization that I would argue with loss of crypto by spend a lot of time thinking about thoughts, they have come out and see you say, the code for the the strictest possible regulation. Affect later, the destructive Capital requirements on cryptocurrency as on any. So this is kind of as tough as they can be at what remains quite an early stage of the regular tri-community dealing with crypto as some of the risks that the Basel committee pointed out today. Like I said, you know, you feel if your getting involved in crypto as a bank than your Titan Go on Market risk, credit risk risk of fraud risk of hacking risk of being involved in money, laundering and risk of Terror.
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Things that banking Regulators, think that Banks really need to take seriously when it comes Krypto is quite long and they also have been saying that stablecoins which are a type of cryptocurrency that supposed to be back towards the wall by signal currency. $5. They must be fully backs at all times. So this feels like a bit of a moment, that's our Market editor.
Before we go, one of the most famous British department stores could change. Hands. Apparently an unnamed buyer. Offered about 4 billion pounds for selfridges currently owned by the Weston family. Them any department stores have had a hard time in recent Years. First thanks to the rise of online shopping and more recently with the pandemic. But people in the industry, say upmarket Brands and especially trophy names like selfridges are still attractive asset. You can read more on all of these stories at ft.com. This is been your daily ft news, briefing. Make sure you check back on Monday for the latest business news.
B ft news. Briefing is produced by Fiona. Simon and Mark Filipino. Our editors just meant. We had help this week from Hannah Ghibli, Gavin, Kalman and Michael bringing a theme song is my metaphor music.