Daily Pulse

Canada

Airlines in the U.S. and Canada are pressing Justin Trudeau’s government for a plan to allow more flights, after a Canadian advisory panel said it’s time to loosen COVID-19 restrictions at the border. The government should “clearly spell out how and when we will restart air travel between Canada and the U.S., with the objective of releasing the plan prior to June 21,” the National Airlines Council of Canada and Airlines for America said in a joint letter Friday to three Canadian cabinet ministers. Airlines For America represents major carriers including American Airlines Group Inc. and Southwest Airlines Co. as well as cargo shippers FedEx Corp. and United Parcel Service Inc. Last week, an advisory body set up by Trudeau’s government said it’s safe to begin relaxing rules in place for most of the pandemic that have decimated travel between the two countries.

United-States

The finance ministers of the most advanced economies, known as the Group of Seven, have backed a U.S. proposal that calls for corporations around the world to pay at least a 15% tax on earnings. If finalized, it would represent a significant development in global taxation. Members of the G-7, which include Canada, France, Germany, Italy, Japan, the U.K. and the U.S., will convene for a summit in Cornwall, U.K., next week. An agreement among this group would provide needed momentum for upcoming talks planned with 135 countries in Paris. Finance ministers from the Group of 20 are also expected to meet in Venice in July. “We commit to reaching an equitable solution on the allocation of taxing rights, with market countries awarded taxing rights on at least 20% of profit exceeding a 10% margin for the largest and most profitable multinational enterprises,” This link will open in a new tab. according to a statement from the G-7 finance ministers. U.S. Treasury Secretary This link will open in a new tab. Janet Yellen, who is in London for the face-to-face meeting, hailed the move as significant and unprecedented. President This link will open in a new tab. Joe Biden and his administration had initially suggested a minimum global tax rate of 21% in an attempt to prevent countries luring international businesses with low or zero taxes. However, after tough negotiations, a compromise was reached to set the bar at 15%.

Europe

France’s competition watchdog has fined This link will open in a new tab. Google 220 million euros ($267 million) for abusing its market power in the online advertising industry. The French Competition Authority This link will open in a new tab. said Monday Google had unfairly sent business to its own services, and discriminated against the competition. Google has agreed to pay the fine and end some of its self-preferencing practices, the watchdog said. The investigation found that Google gave preferential treatment to its DFP advertising server, which allows publishers of sites and applications to sell their advertising space, and its SSP AdX listing platform, which organizes auction processes and allows publishers to sell their “impressions” or advertising inventory to advertisers. Google’s rivals and publishers suffered as a result, the regulator said. Isabelle de Silva, president of the French Competition Authority, said in a statement that the decision is the first in the world “to look at the complex algorithmic auction processes by which online advertising ‘display’ operates.”

Asia

China bought fewer American products in May versus the prior month, while exports to the U.S. rose, according to customs data released Monday. China bought $13.11 billion dollars’ worth of goods from the U.S. in May, down from $13.94 billion in April, data accessed through Wind Information showed. May’s figure marked the lowest monthly amount since October, the data showed. While overall Chinese imports from other countries grew at their This link will open in a new tab. fastest pace in 10 years — up 51.1% — the pace of growth for imports from the U.S. slowed to 41% in May from a year ago, versus 52% the prior month. As a result, China’s trade surplus with the U.S. rose to $31.78 billion in May, up from $28.11 billion in April. The increase comes despite efforts by former U.S. President Donald Trump to reduce that surplus. According to the U.S.-based Peterson Institute for International Economics, This link will open in a new tab. China is still behind on meeting its agreement to buy more American goods, as laid out in the phase one trade deal signed in January 2020.

The author

Michel Doucet

Michel Doucet

Vice-President and Portfolio Manager
After obtaining a Bachelor's degree from the Faculty of Social Sciences at the Université du Québec in Montréal and his Master’s degree, Michel Doucet began his career as a junior economist at the National Bank head office in Montreal. In 1992 he joined the institutional equities and fixed income group at Lévesque Beaubien Geoffrion as an economist and market analyst. Over the years, he has led various projects related to the North American and international economies as well as Canadian public finances. In 1996, the team of institutional economists to which he belongs was ranked first in Canada by Brendan Wood International. In August 1997, Mr. Doucet joined the personal services division of Lévesque Beaubien Geoffrion where he served as an economist, fixed income market analyst and vice president. In 2004, he joined the Desjardins Securities full service team as Vice President. He now occupies the roles of fixed income strategist, economist and portfolio manager. He manages the Securities Portfolio Advisory Group, advisor marketing and distribution of financial planning and insurance.