Big tech accused of avoiding $2.8bn in tax to poorest countries

Reform of international corporate taxation could transform health and education, says report

Big US technology companies are exploiting loopholes in global tax rules to avoid paying as much as $2.8bn (£2.1bn) tax a year in developing countries, according to research by the anti-poverty charity ActionAid International.

Facebook, Google and Microsoft have been accused of failing to pay a fair amount of taxes in poor countries where governments are struggling to provide even basic healthcare or education to their citizens.

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EU seeks Amazon protections pledge from Bolsonaro in push to ratify trade deal

Brazilian president’s stance on deforestation remains stumbling block for South America agreement

Brussels is in talks with Brazil’s far-right nationalist president, Jair Bolsonaro, over commitments on the future of the Amazon as it seeks to persuade Emmanuel Macron and other EU leaders and parliaments to ratify the trade deal the bloc has negotiated with South America.

The ratification of the draft trade agreement between the EU and the “Mercosur” or Southern Common Market free-trade zone – which spans Brazil, Uruguay, Paraguay and Argentina – has been in doubt almost since it was announced last June.

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IMF estimates global Covid cost at $28tn in lost output

World economic outlook says 2020 impact is less than thought but there will be deep scars

The International Monetary Fund has scaled back its estimate of the hit to the global economy from Covid-19 this year but warned that the final bill for the pandemic would total $28tn (£21.5tn) in lost output.

Gita Gopinath, the IMF’s economic counsellor, described coronavirus as the worst crisis since the Great Depression, and said the pandemic would leave deep and enduring scars caused by job losses, weaker investment and children being deprived of education.

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Creditors must wake up fast to threat of emerging market debt crisis

Zambia could become the first country to default on its debts amid the fallout from Covid-19, but it won’t be the last

Zambia is running out of money to pay its debts. It has asked bondholders for breathing space so that it can put a restructuring plan in place. The copper-rich African state is at risk of being the first country to default on its debts since the start of the coronavirus pandemic.

Not the last though. Zambia is the canary in the coalmine, a harbinger of a full-blown crisis that has been lurking in the background from the moment the seriousness of Covid-19 became apparent.

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World Bank announces $12bn plan for poor countries to buy Covid vaccines

Initiative aims to ensure low-income countries are not frozen out by rich nations

The World Bank has announced plans for a $12bn (£9.3bn) initiative that will allow poor countries to purchase Covid-19 vaccines to treat up to 2 billion people as soon as effective drugs become available.

In an attempt to ensure that low-income countries are not frozen out by wealthy nations, the organisation is asking its key rich-nation shareholders to back a scheme that will disburse cash over the next 12 to 18 months.

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Trump attacks WTO after it says US tariffs on China broke global trade rules

President says he has to ‘do something’ about the body after it rules that duties on $200bn worth of Chinese goods breached regulations

The United States has described the World Trade Organization as “completely inadequate” after it criticised the Trump administration’s tariffs on China.

The WTO said on Tuesday that the US breached global trading rules by imposing levies on more than $200bn of Chinese goods in the opening salvo of president Donald Trump’s trade war with Beijing two years ago.

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World Bank calls for greater debt relief for poorer countries in wake of Covid-19

President David Maplass says inequality has worsened as depression looms over poorer nations

The head of the World Bank has called for a more ambitious debt relief plan for poor countries after warning that the Covid-19 recession is turning into a depression in the most challenged parts of the globe.

In an interview with the Guardian, David Malpass raised the prospect of the first systematic write-off of debts since the 2005 Gleneagles agreement as he said fresh Bank figures due out next month would show an extra 100 million people had been pushed into poverty by the crisis.

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Debt in developing countries has doubled in less than a decade

Jubilee Debt Campaign reveals sharp rise in number of countries in distress since 2018

Developing nation debt has more than doubled in the past decade and left more than 50 countries facing a repayment crisis, according to a campaign group.

Data from the Jubilee Debt Campaign shows that even without taking full account of the impact of the coronavirus pandemic, there has been a sharp jump in the number of poor countries in debt distress since 2018.

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China retail sales fall fuels concern for global recovery from Covid-19

Retail sales dropped 1.1% in July while industrial production remains subdued

Fears over the strength of China’s economic recovery from the coronavirus pandemic have been raised after retail sales slumped in July and industrial production remained subdued.

Fuelling concerns for the world economy, retail sales in China dropped in July by 1.1% compared with the same month a year ago, missing predictions for a small increase in consumer spending.

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Stock markets boom as hopes rise for US economic stimulus and Covid-19 vaccine

S&P edges towards all-time record with oil prices and hospitality stocks rising as investor optimism rebounds

US stock markets moved closer to record highs on Tuesday after investors bet on a fresh round of government spending to lift the economy and counter the effects of the Covid-19 pandemic.

The S&P 500, seen as the broadest measure of US investor sentiment, raced to a 10-point gain by mid afternoon to leave it just 16 points short of the all-time high reached in February.

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UK to plunge into deepest slump on record with worst GDP drop of G7

Official measure to be declared this week as coronavirus lockdown shrinks GDP by 21% in second quarter

Britain’s economy will be officially declared in recession this week for the first time since the 2008 financial crisis, as the coronavirus outbreak plunges the country into the deepest slump on record.

Figures from the Office for National Statistics on Wednesday are expected to show that gross domestic product (GDP), the broadest measure of economic prosperity, fell in the three months to June by 21%.

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Shell reports $18bn loss as global oil and gas prices collapse

Energy giant hit by massive change in fortunes as Covid-19 crisis forces writedown in asset values

Royal Dutch Shell has reported a deep financial loss after a record writedown on the value of its oil and gas assets due to the collapse in global market prices triggered by coronavirus.

The Anglo-Dutch oil giant revealed a net loss of $18.3bn (£14.1bn) for the second quarter 2020, down sharply from a net profit of $3bn over the same period last year and $2.7bn in the first three months of 2020.

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Super-rich call for higher taxes on wealthy to pay for Covid-19 recovery

Exclusive: Group of 83 wealthy individuals demands ‘immediate, substantial and permanent’ higher taxes ‘on people like us’

A group of 83 of the world’s richest people have called on governments to permanently increase taxes on them and other members of the wealthy elite to help pay for the economic recovery from the Covid-19 crisis.

The super-rich members, including Ben and Jerry’s ice cream co-founder Jerry Greenfield and Disney heir Abigail Disney, called on “our governments to raise taxes on people like us. Immediately. Substantially. Permanently”.

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Covid-19 has revealed a pre-existing pandemic of poverty that benefits the rich

The World Bank’s flawed and misunderstood poverty benchmark has led to a deceptively positive picture and dangerous complacency

  • Philip Alston is the outgoing UN special rapporteur on extreme poverty and human rights

Poverty is suddenly all over the front page. As coronavirus ravages the globe, its wholly disproportionate impact on poor people and marginalised communities is inescapable. Hundreds of millions of people are being pushed into poverty and unemployment, with woeful support in most places, alongside a huge expansion in hunger, homelessness, and dangerous work.

How could the poverty narrative have turned on a dime? Until just a few months ago, many were celebrating the imminent end of poverty; now it’s everywhere. The explanation is simple. Over the past decade, world leaders, philanthropists and pundits have embraced a deceptively optimistic narrative about the world’s progress against poverty. It has been lauded as one of the “greatest human achievements”, a feat seen “never before in human history” and an “unprecedented” accomplishment. But the success story was always highly misleading.

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‘We squandered a decade’: world losing fight against poverty, says UN academic

Goal to eradicate poverty by 2030 ‘completely off track’, says outgoing special rapporteur, with Covid-19 likely to impoverish millions more

International institutions are losing the fight against global poverty despite “self congratulatory” messages to the contrary, according to the UN’s outgoing special rapporteur on extreme poverty and human rights.

In his final report in the post, the Australian academic Philip Alston warns that states and global organisations are “completely off track” to meet the goal of eradicating extreme poverty by 2030, with more people instead likely to become highly impoverished by new shocks, including coronavirus and existing challenges like the climate crisis.

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Anger at huge shareholder payout as US chain Kohl’s cancels $150m in orders

Retailer paid $109m in dividends just weeks after cancelling clothing orders, leaving suppliers in Bangladesh facing financial crisis

Kohl’s, one of the US’s largest clothing retailers, cancelled millions of dollars worth of existing orders from Bangladeshi and Korean garment factories just weeks before paying out $109m (£85m) in dividends to shareholders, the Guardian can reveal.

The company cancelled orders of clothing worth approximately $100m from Korea and $50m from Bangaldeshi factories after the Covid-19 pandemic struck, and refused petitions from suppliers asking for the option to renegotiate payments. 

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Angela Merkel has become the spend, spend, spend chancellor | Larry Elliot

With its €130bn stimulus package, Germany is showing others how to do the recovery

And in one bound she was transformed. For Angela Merkel, the days of being lampooned as the archetypal Swabian housewife keeping tight control over the purse strings are over. Now, courtesy of a €130bn (£116bn) stimulus package, she is the spend, spend, spend chancellor.

Make no mistake, much of the past criticism of Germany’s frugal approach to government spending and budget deficits was justified. Saving some money for a rainy day is one thing but running surpluses worth 8% of national output was unnecessary and harmful to the global economy.

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Dawn of Asian century puts pressure on EU to choose sides, says top diplomat

EU foreign affairs chief says end of US-led global system may have arrived and Europe needs robust strategy for China

The Asian century may have arrived marking the end of a US-led global system, the EU’s foreign affairs chief has said amid a growing discussion in Europe on how to weave a path between China and the US.

“Analysts have long talked about the end of an American-led system and the arrival of an Asian century. This is now happening in front of our eyes,” Josep Borrell told a group of German diplomats on Monday, adding that the coronavirus pandemic could be seen as a turning point and that the “pressure to choose sides is growing”.

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Australian trade minister says ‘risk’ of trade with China may drive businesses to other markets

Australia reserves the right to take China to the WTO amid growing trade dispute, Simon Birmingham says

Simon Birmingham has warned China’s “unpredictable” trade interventions may force Australian producers to sell to other markets and diversification is to be encouraged given the “risk” of trade with China.

The trade minister told ABC’s Insiders on Sunday that Australia reserves its right to take China to the World Trade Organisation, and revealed he is still yet to hear back from his Chinese counterpart about the growing trade dispute. He said his call “ought to be returned”.

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UK government begins transatlantic trade talks with Washington

Increasing links with US will aid recovery after coronavirus crisis, says Liz Truss

Liz Truss has claimed bolstering transatlantic trade could help the economy bounce back from the Covid-19 crisis, as negotiations with Washington over a free trade deal begin by video link.

Despite the government’s negotiating objectives for the deal pointing to a modest economic gain of 0.16% of GDP over 15 years, the international trade secretary said she was keen to “make it even easier to do business with our friends across the pond”.

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