France and the United States reached a digital tax agreement

France and the United States reached a digital tax agreement

1.Yesterday, the central parity of the yuan depreciated against the US dollar and the euro, and appreciated against the yen.

 

Yesterday, the RMB exchange rate against the US dollar depreciated sharply. The central parity of the RMB against the US dollar was 7.0810, which was 240 basis points lower than the previous trading day of 7.0570.

Yesterday, the RMB exchange rate against the euro depreciated sharply. The central parity of the RMB against the euro was reported at 7.8836, which was 209 basis points lower than the previous trading day of 7.8627.

Yesterday, the RMB exchange rate against the 100 yen exchange rate rose sharply. The central parity of the RMB against the 100 yen exchange rate was 6.7024, which was 211 basis points higher than the previous trading day of 6.7235.

 

Today's offshore RMB depreciates against the US dollar and the euro, and there is no change to the Japanese yen.

 

Today, the offshore RMB exchange rate against the US dollar has slightly depreciated. As of the date of receipt, the highest exchange rate of offshore RMB against the US dollar was reported at 7.1660, which was 26 basis points lower than the previous trading day's closing price of 7.1634.

Today, the offshore RMB exchange rate against the euro has slightly depreciated. As of the receipt, the highest exchange rate of offshore RMB against the euro was reported at 7.9500, which was 30 basis points lower than the previous trading day's closing price of 7.9470.

Today, the offshore RMB has no change in the exchange rate of 100 yen. As of the date of receipt, the highest exchange rate of the offshore RMB against the 100 yen was reported at 6.7700, which was unchanged from the previous trading day's closing price of 6.7700.

 

2.France and the United States reached a digital tax agreement

 

On the 26th, French President Emmanuel Macron said that France and the United States have reached an agreement on France's digital tax on technology giants. According to the agreement, if the digital tax imposed by France on technology companies differs from the digital tax being drafted by the OECD, France will return the excess to these companies. Mark Long said that the digital tax is not targeted at certain companies, and many French companies will also be affected. This is mainly to promote international rules on digital taxation. He also said that France hopes to reach an agreement on the collection of relevant digital service taxes within the framework of the OECD in 2020.

 

3.Hong Kong's imports and exports continue to fall in July

 

According to data from the Statistics Department of the Hong Kong SAR Government on the 26th, due to the external environment, the value of imports and exports of goods in Hong Kong continued to fall in July. It is expected that the value of exports will continue to be weak in the near future. The data showed that the value of Hong Kong's total exports fell by 5.7% year-on-year last month, which was significantly narrower than the 9% year-on-year decline in June, while the value of imports decreased by 8.7% year-on-year, compared with the 7.5% decline in June. The trade deficit was HK$32.2 billion, equivalent to 8.7% of the value of imports. In the first seven months of 2019, the value of exports fell by 3.9% year-on-year, and the value of imports fell by 5.1% year-on-year.

 

4.India announces accelerated pace of privatization of state-owned enterprises

 

The Indian government announced that it will accelerate the pace of privatization of state-owned enterprises. It plans to sell 23 companies including aviation and cement to the private sector in fiscal year 2019 (April 2019 to March 2020). The transfer income is expected to reach 1.05 trillion rupees (about 15 billion US dollars). The Indian government hopes to reduce the government's financial burden by selling loss-making enterprises, improve operating efficiency through privatization, and improve the economic vitality of India. According to reports, the Indian government has invested more than 51% of state-owned enterprises as of the end of March 2018. Of the 23 companies included in the sale, 7 were at a loss.

 

5.Japan's exports fell for eight consecutive months in July

 

According to the latest data from the Ministry of Finance of Japan, exports in July fell by 1.6% year-on-year, the eighth consecutive month of decline, mainly due to the decline in exports of semiconductor production equipment and auto parts. There was a trade deficit of 249.6 billion yen in the month, while the trade surplus in June was 589.6 billion yen. By region, Japan’s exports to the United States increased by 8.4% in July, achieving growth for the 10th consecutive month, thanks to the surge in semiconductor production equipment, construction and mining machinery, and aircraft exports. Exports to China fell by 9.3%, falling for the fifth consecutive month due to weak exports of semiconductor production equipment, electronic components and auto parts.

Reprinted: WAI BUSINESS