G7 nations reached an agreement on a global minimum tax over the weekend after years of discussions at the OECD. At a basic level, the framework would prevent companies from shifting profits to low tax jurisdictions and ensure the biggest multinationals pay more tax in the countries in which they operate. In return, the U.S wants European nations and others to drop their Digital Service Taxes that target American Big Tech companies, but many negotiations still await. In its current form, the deal would require that companies pay at least a 15% tax on income, regardless of where they are based, making it less advantageous to relocate operations to countries with lower tax rates.
Going virtual again this year due to COVID-19, Apple will kick off its annual Worldwide Developer Conference at 10 AM PST. The event is catered to software developers, so don't expect any hardware announcements, though they are a possibility. WWDC will also be an opportunity for Apple to address its developer community following two contentious disagreements with app makers, including a legal battle with Epic Games over its App Store fees and a feud with Facebook over its new privacy policies. Apple shares have been struggling since hitting a peak in late January, and they remain in correction territory. The stock is down 12% from the top seen on Jan. 26.
The global chip shortage disrupting the car industry and threatening the supply of consumer technology products will last for at least another year, the world’s third-largest contract electronics manufacturer has warned. The forecast from Flex is one of the gloomiest yet as a rapid rebound in vehicle sales combined with a lockdown-driven boom in games consoles, laptops and televisions has left global chipmakers overwhelmed by increased demand.