Top story: Tech giant ‘not captured’ by G7 deal
Morning everyone. I’m Martin Farrer bringing you the top stories to start your week.
Amazon could escape paying significantly more tax in some of its biggest markets unless world leaders close a large loophole in a historic global deal, according to expert analysis of the agreement thrashed out in London by G7 finance ministers at the weekend. The much-trumpeted deal is intended to work by making big tech companies such as Apple, Microsoft, Google and Facebook pay a percentage of their profits in markets where they make large sales despite a minimal corporate presence, as well as setting an unprecedented global minimum corporation tax. However, a communique from G7 ministers said that they envisaged the first part would only apply on “profit exceeding a 10% margin for the largest and most profitable multinational enterprises”, a restriction that could rule out Amazon. Despite having sales of $386bn in 2020, Amazon’s profit margin in 2020 was only 6.3%. “Based on the communique, Amazon is not captured,” said Paul Monaghan of the Fair Tax Foundation. Amazon said it hoped “to see discussions continue to advance”. Our economics correspondent says the deal is as much about power as tax reform.
The G7 will dominate the week’s politics, with Joe Biden announcing last night that he will “affirm” America’s commitment to the special relationship when he meets Boris Johnson at the summit in Cornwall. But the pair will also have more difficult discussions, with reports saying Biden will tell the prime minister that a US/UK trade pact will be damaged if the current disagreement about Brexit and the Northern Ireland protocols is not resolved. Biden, Johnson and other leaders have been urged to do more to vaccinate poor countries against coronavirus. Gordon Brown and Tony Blair are among 230 prominent figures who have called on the G7 to pay two-thirds of the $66bn (£46.6bn) “insurance policy” for the world. The plea comes as Johnson faces a rebellion from dozens of his MPs over cuts to the foreign aid budget. Andrew Mitchell, the Tory former international development secretary, says Johnson must set an example to the G7 by reversing his developing world aid cuts.
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PM’s tough call – At home, Johnson faces one of the most acute decisions of his leadership as calls mount for a delay to the lifting of final lockdown restrictions in England, planned for 21 June. Many Tory MPs are pushing back against any suggestion that the easing should be postponed amid alarm at the rising number of infections from the Delta Covid variant. Tony Blair’s suggestion that vaccinated people should get greater freedoms has been met with concern by some scientists. And health officials have teamed up with popular dating apps such as Tinder and Badoo to encourage young people to get the jab. Data shows a spate of attacks on frontline health staff around the world with misinformation, scarce vaccines and fragile systems being blamed.
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Ape devastation – Great apes will lose 90% of their homelands in Africa by 2050 due to climate change, and destruction of habitat for resources and human settlement, according to a study by researchers at John Moores University in Liverpool. Half of the “devastating” losses will be in national parks and other protected areas. Although climate change will make some areas more habitable for gorillas, chimpanzees and bonobos, scientists doubt they will be able to migrate there in time.
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Bafta queen – Michaela Coel and her hit drama I May Destroy You were among the biggest winners at the television Baftas last night, with the actor dedicating her acting award to the series’ intimacy coordinator. The drama, which dealt with sexual abuse and consent, also won best mini-series. Here are all the winners and a gallery of the red carpet glamour.
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Pakistan crash – Two express trains have collided in southern Pakistan, killing at least 30 people. Up to another 25 passengers are still trapped in the wreckage of the Millat Express train which derailed and then collided with another express service shortly before dawn on Monday.
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Saxon battle – Angela Merkel’s centre-right party has scored a significant victory over the rising challenge of the far-right AFD in a German state election. The Christian Democratic Union won 37% of the vote in Saxony-Anhalt yesterday, according to the latest forecasts, compared with 21% for the AFD. The poll was seen as the last big test before a national vote in September that will see Merkel stand down as chancellor.
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About a girl – The Duke and Duchess of Sussex have announced the birth of a daughter named Lilibet “Lili” Diana in honour of Prince Harry’s grandmother, the Queen, and mother. The baby was born in hospital in California on Friday. She is the Queen’s 11th great-grandchild and is eighth in line to the throne. The name Lilibet is the nickname given to the Queen when she was young.
Today in Focus podcast: Bring them all down
Gary Younge was glad to see the figure of Edward Colston removed in Bristol a year ago – but, he argues, even monuments to civil rights leaders are a distortion of how history really works.
Lunchtime read: Bob Odenkirk – from cult comic to Nobody
Bob Odenkirk is best known as the flawed lawyer Saul Goodman in Breaking Bad and Better Call Saul. But his “joyously entertaining” action movie debut, Nobody, shows another side to the star. He tells Stuart Heritage about how he feared his agent and the whole Hollywood industry would laugh at the idea of him taking on a tough-guy role. He also reveals that he is writing a memoir that details his involvement in the two celebrated TV dramas along with his less well-known, cultish comedy career.
Sport
Gareth Southgate has said he will not allow a repeat of the episode in which Jordan Henderson took penalty duties away from Dominic Calvert-Lewin during England’s 1-0 victory against Romania, when boos once again greeted players of both teams taking the knee. Ollie Robinson has been suspended from all international cricket pending an investigation into offensive tweets he published as a teenager and which resurfaced while he was starring on debut for England in their drawn first Test against New Zealand at Lord’s. Alistair Brownlee’s hopes of winning a third successive Olympic title appear to be over after he was disqualified for “ducking” a rival during a World Triathlon Championship Series race in Leeds. Yuka Saso birdied the third playoff hole to beat Nasa Hataoka and become the second teenager to win the US Women’s Open after Lexi Thompson collapsed down the stretch.
Serena Williams, the last remaining top 20 player in her section of the French Open draw, exited Roland Garros after being thoroughly outplayed by Elena Rybakina, while Roger Federer withdrew one day after reaching the fourth round, saying he does not want to push his body so soon into his return. Sergio Pérez won the Azerbaijan Grand Prix after late drama left both Lewis Hamilton and Max Verstappen failing to score a point. Mo Farah blamed a “niggle” in his left ankle for his poor performance as the 38-year-old ran 22 seconds outside the 10,000m qualifying time for Tokyo. The game-changing effect of super spikes on track and field was again dramatically emphasised in Hengelo as Sifan Hassan obliterated the women’s 10,000m record by more than 10 seconds. And Richie Porte claimed his first Criterium du Dauphine victory while Ineos Grenadiers teammate Geraint Thomas was able to recover from a fall to claim a spot on the podium.
Business
The UK lost out to France as the most popular European destination for foreign investors for the second year in a row, amid disruption from Brexit and the coronavirus pandemic. The FTSE100 is set for slight dip this morning while the pound will buy you $1.414 and €1.163.
The papers
The Guardian lead is an exclusive on the G7 tax agreement, “Global deal may let Amazon off hook on tax, say experts”, and the FT’s main story is “Chip shortage to last another year at least, warns key manufacturer”. The Times splashes on the latest Covid travel confusion – “Covid chaos at airports in rush to flee Portugal” – while the i has “UK in race to stop spread of long Covid” and the Telegraph says “Hancock hints at delay to reopening”. That easing deadline is also concerning for the Express, which says “Vaccine battle to save June 21” while the Mail is punchier with “Don’t wobble now, ministers”. The latest royal birth is the lead in the red tops with the Sun saying “Our lil’ princess” and the Mirror goes with “Our girl Lilibet”. The Scotsman reports “Warning over failure to test fans gathering for Euros”.
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