Historic deal to tax multinational companies properly

<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 there is an historic deal to tax multinational companies properly.</p><p>But first we should note that today is a public holiday in New Zealand.</p><p>The G7 has <a href="https://www.g7uk.org/g7-finance-ministers-agree-historic-global-tax-agreement/" target="_blank"><strong>agreed</strong></a> to implement a global minimum rate that ensures multinationals pay tax of at least 15% in each country they operate, as <a href="https://www.cnbc.com/2021/05/20/us-proposes-global-minimum-corporate-tax-rate-of-15percent-with-an-eye-on-something-even-higher.html" target="_blank"><strong>proposed</strong></a> by Janet Yellen and the Biden Administration. Now pressure on countries like Ireland and other tax havens will grow intense to respect the deal. In addition, the G7 is rushing to set rules for digital currency issues, partly to counter China's lead in this area.</p><p>Meanwhile, China is <a href="https://www.aljazeera.com/economy/2021/5/26/bbchinas-latest-crackdown-on-crypto-caused-by-surge-in-coal-mini" target="_blank"><strong>moving</strong></a> to clean up and clear out bitcoin miners.</p><p>In addition, the Chinese central bank governor is <a href="http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/4262316/index.html" target="_blank"><strong>backing a push for climate risk disclosure</strong></a> among Chinese banks. He did so after starting stress tests of financial sector.</p><p>The infant nutrition business in China isn't the pot of gold it was anymore and some international <a href="https://www.reckitt.com/media/9021/reckitt-to-sell-its-infant-formula-business-in-china-for-us-2-2-billion-to-primavera-capital-group.pdf" target="_blank"><strong>major players are exiting</strong></a>, Reckitt selling to a local investment company.</p><p>On Friday the Indian central bank reviewed its