The U.S. Treasury Department on Thursday offered to accept a global minimum corporate tax of at least 15% during international negotiations, a rate significantly below its proposed 21% minimum for U.S. multinational firms. U.S. Treasury Secretary Janet Yellen first proposed a 21% U.S. corporate minimum tax in April as part of President Joe Biden's $2.2 trillion infrastructure spending proposal, which would be financed largely by increasing the U.S. corporate tax rate to 28%. The Trump administration and congressional Republicans in 2017 cut the corporate tax rate to 21% from 35%. At the same time, the Treasury launched a U.S. minimum tax, of 10.5%, known as the Global Intangible Low-Taxed Income tax (GILTI) to capture revenue shifted by companies to tax-haven countries. A U.S. Treasury official said the Biden administration will continue to advocate for the highest rate possible above 15%, adding that the offer does not alter the 21% proposed U.S. minimum tax.
Japan likely to forgo submitting extra budget to current parliament -Yomiuri
Japan's government is likely to forgo submitting an extra budget to the current parliament session running until June 16, the Yomiuri
newspaper reported on Friday. Some lawmakers have called for an extra budget to fund spending to combat the COVID-19
pandemic, as state of emergency curbs to prevent the spread of the virus heighten the risk of another recession. But the government
judged there was not enough time to pass a budget through parliament with less than a month before it closes. Finance Minister Taro
Aso dismissed the need for additional spending now. For now, the government will tap a 5 trillion yen ($46 billion) pool of funds
already set aside. Some of the money has already been spent but there is still 4 trillion yen left, which should last for about half a
year unless there is an "explosive" spike in infections.
Vaccine rollout a big shot in the arm to UK growth outlook
Britain's economy will grow much faster than expected this year as a fast-moving coronavirus vaccine programme allows businesses
to re-open and lifts confidence, a Reuters poll found. The country has suffered the highest COVID-19 related death toll in Europe,
despite stringent lockdowns to try to contain its spread. But it has administered around 58 million coronavirus vaccine doses,
including about 21 million citizens having had second shots. The UK economy will expand 5.9% this year, much stronger than the
5.0% forecast last month. It is forecast to grow 5.3% in 2022. As much of the country's dominant service industry was at least
partially closed last quarter it is predicted the economy contracted 1.5% in that period. But the reopening meant it would expand
4.1% this quarter, better than the 3.5% projected last month.
Dollar heads for weekly loss as traders shrug off taper talk
The 10-year government bond yield (interpolated) on the previous trading day was 1.88, +5.00 bps. The benchmark government
bond yield (LB31DA, 10.5 years) was 1.86, +2.00 bps. LB31DA could be between 1.84-1.88. Meantime, the latest closed US 10-year
bond yields was 1.63%, -5.00bps. USDTHB on the previous trading day closed around 31.38 Moving in a range from 31.35-31.40
this morning. USDTHB could be closed between 31.33-31.40 today. Meantime, The dollar was pinned near milestone lows on
Friday, and headed for a weekly loss, as traders' initial concerns at taper talk in Federal Reserve minutes ebbed - with actual
tapering seeming distant - while pandemic recovery boosted other currencies.
Sources : Bloomberg, CNBC, Investing, CEIC
