U.S. Companies Bump Up Prices on Supply Squeeze and Demand Boom
“U.S. companies face soaring bills for all kinds of materials that they need to do business — and surging demand is helping them pass on those higher costs to their customers. In early-season earnings calls, executives from burrito chain Chipotle Mexican Grill Inc. to appliance giant Whirlpool Corp. and diaper maker Procter & Gamble Co. have outlined price hikes, largely in response to rising materials costs.”
France, Germany Support U.S. 21% Tax Plan for Corporations
“France and Germany have given their backing to the U.S. proposal for a 21% minimum tax on multinational companies, adding momentum to efforts to overhaul global rules despite reluctance from some smaller European countries. The plan by President Joe Biden’s administration earlier this month transformed global negotiations after years of being bogged down. It also carries a significantly higher levy on companies than the 12.5% minimum tax previously discussed.”
China’s Economic Divide Between North and South Is Set to Widen
“The economic divide between China’s prospering southern regions and lagging northern areas will continue to widen in coming years, with huge implications for growth, debt and policy making, according to Nomura Holdings Inc. The gap between the north and the south has grown over the past decade, with southern provinces benefiting from export dependence and the internet boom, while resource-rich northern regions were dragged down by slower fixed investment, falling commodity prices and population migration. Nomura estimates that northern China’s share of the national economy shrank to 35.2% last year from 42.9% in 2012.”
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