China's services sector expanding again

<p>Kia ora,</p><p>Welcome to Monday's Economy Watch where we follow the economic events and trends that affect New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news China's services sector is stirring again despite some bumps in the road.</p><p>But first, the OECD has <a href="https://www.oecd.org/tax/beps/statement-on-a-two-pillar-solution-to-address-the-tax-challenges-arising-from-the-digitalisation-of-the-economy-october-2021.pdf" target="_blank"><strong>achieved</strong></a> its big reform of how and where multinational companies will be taxed; their BEPS reform. It is an agreement between 136 countries, and brings a reluctant US on board. The deal included a 15% minimum rate for corporations and the main parameters of how much profits of multinationals would be taxed in more countries: 25% of profits over a 10% margin. The bottom line is it should see countries collect around US$ 150 bln in new revenues annually. That will be massive for many countries, and will be felt in the largest corporate boardrooms. In the US, anti-tax Republicans are already lining up to try and neuter it.</p><p>And the UN-FAO released its <a href="http://www.fao.org/worldfoodsituation/foodpricesindex/en/" target="_blank"><strong>September food price data</strong></a> showing another rise in overall prices globally. In nominal terms prices are approaching their highest ever levels achieved first in September 2011. In real terms, they are the highest since 1974 when droughts, an oil crisis and raging inflation all conspired to hit food at the same time.</p><p>China is still getting its share of adverse weather. 1.75 mln people have been affected by days of flooding and landslides in the normally arid northern Chinese province of Shanxi and these will have a national impact. 120,000 people have been evacuated and more than 17,000 buildings had collapsed. This in turn has affected important national supplies of coal and other minerals. About 60 coal mines, 372 non-c