G20 leaders endorse global corporate minimum tax at Rome summit
G20 world leaders have endorsed a global minimum tax on corporations as part of an agreement on new international tax rules.
The move by the leaders of the world’s biggest economies is a step toward building more fairness amid the surging revenues of some multinational businesses.
US treasury secretary Janet L Yellen hailed it as benefiting American businesses and workers.
Back in July, G20 finance ministers agreed on a 15% minimum tax – so its formal endorsement at the summit on Saturday in Rome of the world’s economic powerhouses had been expected.
(L-R) Boris Johnson, Emmanuel Macron, Angela Merkel and Joe Biden at the G20 summit
In a statement, Ms Yellen predicted that the deal on new international tax rules, with a minimum global tax, “will end the damaging race to the bottom on corporate taxation”.
Despite the dealing falling short of US President Joe Biden‘s original call for a 21% minimum tax, he welcomed the decision.
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“Here at the G20, leaders representing 80% of the world’s GDP – allies and competitors alike – made clear their support for a strong global minimum tax,” the president said in a tweet.
“This is more than just a tax deal – it’s diplomacy reshaping our global economy and delivering for our people.”
Italian Prime Minister Mario Draghi (left) said vaccine inequality was ‘morally unacceptable’
White House officials have claimed the new tax rate would create at least $60bn (£43.8bn) in new revenue a year in the US, which could partially pay for a nearly $3tn (£2.1tn) social services and infrastructure package that Mr Biden is seeking.
On the subject of fairness across the globe, including access to COVID-19 vaccines, the summit also heard pleas to boost the percentage of people in poor countries having access to jabs.
Italian Prime Minister Mario Draghi, an economist and former chief of the European Central Bank, called to speed up vaccines reaching poorer countries as he opened the conference.
Boris Johnson and French President Emmanuel Macron were among the leaders at the summit
He highlighted that only 3% of people in the world’s poorest countries are vaccinated, while 70% in rich countries have had at least one shot.
“These differences are morally unacceptable and undermine the global recovery,” said Mr Draghi.
Meanwhile, French President Emmanuel Macron pledged to use the summit to urge fellow European Union leaders to be more generous in donating vaccines to low-income countries.
Italy hopes the G20 will secure crucial commitments from countries representing 80% of the global economy ahead of the UN climate conference, COP26, that begins in Glasgow on Sunday.
The majority of the summit leaders in Rome will travel to Glasgow as soon as the G20 ends on Sunday afternoon.
Business
‘Knock-back for London’ as AstraZeneca sells shares directly on rival New York Stock Exchange
One of the UK’s most valuable listed companies is to sell its shares directly on the rival New York Stock Exchange, in a move described as a “knock back for London”.
While AstraZeneca will maintain its headquarters in the UK and its primary stock listing on the London Stock Exchange, the news can be seen as a move away from London.
“Although there has been no suggestion that AstraZeneca is imminently going to up sticks and move its primary listing from London, there may be some nervousness this morning around the risk that the UK market might lose one of its largest constituents,” said Russ Mould, the investment director of investment platform AJ Bell.
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AstraZeneca exit is a frightening prospect for the City and the government
The news “does at least hint at the possibility of a more dramatic shift at some point in the future”, Mr Mould said.
There may also be relief that AstraZeneca is not moving from the London Stock Exchange altogether.
“I think there is probably relief that it’s not pursuing a primary listing in New York, but the decision is hardly a ringing endorsement of London,” said Neil Wilson, the UK investor strategist at investment platform Saxo Markets.
“It reflects the fundamental, structural issues in the UK for the largest globally-oriented stocks – the depth and liquidity of its capital markets is falling short of what’s on offer across the pond.”
“It’s also a bit of a knock-back for London”, Mr Wilson said.
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The Cambridge-based pharmaceutical company said the decision to sell shares directly on the New York Stock Exchange – rather than the previous less straightforward system of using American depository receipts – has been made to allow it “to reach a broader mix of global investors” and “make it even more attractive for all our shareholders”.
“The US has the world’s largest and most liquid public markets by capitalisation, and the largest pool of innovative biopharma companies and investors,” the company said in an announcement to investors.
AstraZeneca’s share price was up 0.7% on the news.
Jaguar Land Rover (JLR) has announced it will partially resume manufacturing “in the coming days” after nearly a month in the wake of a cyber attack.
The luxury car-making plants have paused production since 31 August. The cyber attack halted car-making across the supply chain, with staff off work as a result.
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More than 33,000 people work directly for JLR in the UK, many of whom are on assembly lines in the West Midlands, with the largest facility located in Solihull, and a plant in Halewood on Merseyside.
Roughly 200,000 more are employed by several hundred companies in the supply chain, who rely on JLR orders as their biggest client.
“As the controlled, phased restart of our operations continues, we are taking further steps towards our recovery and the return to manufacture of our world-class vehicles,” a company spokesperson said.
The shutdown was said to last until at least 1 October.
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Are we in a cyber attack ‘epidemic’?
“Today we are informing colleagues, retailers and suppliers that some sections of our manufacturing operations will resume in the coming days,” the company added, days on from the partial restart of its IT systems, which allowed supplier payments to recommence.
“We know there is much more to do, but the foundational work of our recovery is firmly underway, and we will continue to provide updates as we progress.”
Over the weekend, the government said it would underwrite a £1.5bn five-year loan guarantee to JLR.
The promise came as the head of the influential Business and Trade Committee of MPs wrote to Chancellor Rachel Reeves, warning small firms reliant on JLR, “may have at best a week of cashflow left to support themselves” with “urgent” action needed to support businesses.
JLR was just the latest business to be the subject of a cyberattack.
Harrods, the Co-Op, and Marks and Spencer, are among the companies that’ve struggled in the past year with such attacks.
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