Category: News Desk

Brazil Removes Financial Transaction Tax as Currency Slumps


Brazil on Tuesday cut the financial transactions tax on overseas investments in domestic bonds from 6 percent to zero, a surprise move that could help stop a sharp depreciation of the real that threatens to stoke already high inflation in Latin America’s largest economy.

The removal of the tax, known as the IOF, will take effect from Wednesday and removes a key defence measure Brazil had put up in late 2009 to prevent a surge in hot money inflows after developed nations loosened their monetary policies to stimulate their economies.

US Unveils New Iran Sanctions


The White House on Monday announced its ninth set of sanctions against Iran, including measures that target the Iranian rial for the first time, as it increases the pressure on Tehran to abandon its nuclear programme.

This is the first time the United States has directly targeted the Iranian currency, which has already lost two-thirds of its value against the U.S. dollar since late 2011, hurt by a relentless slew of Western sanctions aimed at crippling Iran’s controversial nuclear programme.

India Defends Its Pharmaceutical Industry After Tainted Drug Scandal


India on Monday defended its lucrative and booming generic drugs industry as “safe” and “highly regulated”, after the country’s largest drug maker Ranbaxy pleaded guilty last month to U.S. criminal charges of making adulterated medicines.

In a bid to defend its generic drugs export sector, the Indian government also suggested that “vested interests” may be making up the “isolated reports” of spurious generic drugs found in global markets allegedly from India.

Japan Pledges $32bn in Africa Aid, Seeks to Balance China’s Influence in the Region


Africa will become the global engine of growth in the coming decade said Japan Prime Minister Shinzo Abe on Monday at the end of a three-day African development conference in Yokohama, as he unveiled a $32 billion investment package aimed at accelerating growth, sustainable development as well as poverty reduction on the continent.

China Accuses US of Prejudice amid Call for Full Tiananmen Disclosure


China has accused the United States of “political prejudice” and “ignoring facts” after the U.S. State Department on Friday called on the Chinese government to fully account for those killed, detained, or missing in the bloody 1989 military crackdown on protesters in Tiananmen Square.

The U.S. call drew a hostile response from Beijing, in which the Chinese government said “a clear conclusion” has already been made regarding the Tiananmen Square protests.

Andorra to Introduce Income Tax for the First Time


The tiny landlocked nation Andorra is poised to introduce a personal income tax for the first time, effectively putting an end to its status as a tax haven as it comes under increasing pressure from its European neighbours to clampdown on tax evasion.  

In a meeting with French President Francoise Hollande, head of the Andorran government Antoni Marti said he will introduce a bill before 30 June to establish some form of personal income tax.

Key Economic News to Watch This Week: June 3


Syria is expected to top the agenda during a meeting of EU officials and Russian president Vladimir Putin on Monday. Later this week, Chinese president Xi Jinping meets with Barack Obama, where the U.S. president is likely to express concern over Beijing’s role in high-tech state-sponsored cyber espionage.

Monday, June 3

The International Labour Organisation launches World of Work report.

Abenomics Beginning to Work, Says IMF


The International Monetary Fund on Friday gave its full backing to Japan’s use of ‘Abenomics’, adding that it is “beginning to work”, but warned of significant downside risks to the world’s third largest economy if it does not rein in its huge government debt.

“Blockupy” Protestors Target ECB and Banks in German Austerity Protest


Thousands of activists from the anti-capitalist “Blockupy Frankfurt” movement will descend in the German financial capital on Friday, targeting the European Central Bank and other financial institutions to protest against the austerity policies of the German government and the so-called troika.

Apple Co-Founder Hits Out At Company’s ‘Unfair’ Tax Practices


Steve Wozniak, the co-founder of tech giant Apple Inc alongside Steve Jobs and Ronald Wayne, has described recent criticism of the company’s taxes practices as “extremely warranted” and have called for big corporations to be treated the same as the “little guy”, during a business conference in Northern Ireland on Thursday.