With little else to occupy the forex market, traders shifted their focus towards Moscow where Putin and Russia host the two-day meet of the Group of 20 nations’ finance ministers. One of their primary objectives will be working on a common approach to QE programs to avoid market volatility in the future.
The gathered finance ministers are expected to formulate an agenda for discussion by the G-20’s meeting of leaders in September. Ministers will be working out a “comprehensible criteria” for when and how such programs can be tapered. In other words, they will be trying to formulate a predictable exit strategy that is supposed to leave investors with little mess. How have they being doing so far?
The G20 also reiterated their commitment to more market-determined exchange rates and that members should refrain from competitive devaluations. Japan should have no worries in this regard. ‘Helicopter’ Ben gave his BoJ counterpart, Governor Haruhiko Kuroda, his backing last Thursday. He mentioned that his current policy is not targeting currency weakness, but rather its focused on battling deflation.
Another touchy global topic has been the taxing of multinationals and how they are allowed to use various loopholes to aid them in “not to pay their fair dues.” Large budget deficits and public anger over the channeling of profits into tax havens have urged governments to act. The G20 backed a “fundamental” rethink of the rules on taxing multinational corporations, taking aim at loopholes used by US companies in particular to avoid billions of dollars in taxes. Members released an action plan stating that the current system did not work, especially when it came to taxing companies that trade online.
- Portugal Survives No Confidence Vote Weekend Crucial for Bailout Agreement 
- G20 Releases Corporate Taxation Plan 
- Advice to Europe: Focus on Boosting Jobs and Growth 
- Israel set to expand local Oil Production 
- Greece Passes Austerity Cuts 
- UK Retail Sales Rise 0.2% in June 
- Spain Continues to Ride Corruption Scandal Storm 
- German FinMin Praises Greek Bailout Measures 
- UK Unemployment Falls by 57K Stands at 2.51 Million 
- Carney Wins QE Consensus on First BoE Meeting 
- UK House Prices Rise Across All Regions 
- Latvia Welcomes Euro as Currency 
- Fitch Cuts European Rescue Loan Fund to AA+ 
- UK Business Optimism Reaches 6 Year High 
- New Slovenia Central Banker Denies Bailout Needed 
- Greece leaning on Toursim Industry in wait for Recovery 
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