Highlights of the draft communique

G7 communique
  • Leaders commit to use carbon pricing as a policy lever to embed climate change in policy making
  • Will say they strongly support G20 efforts to agree on a global minimum corporate tax rate
  • To stress importance of agreeing on where to tax multinationals
  • Commit to not withdrawing policy stimulus too quickly after pandemic
  • To say central bank digital currencies could act as a liquid safe settlement asset and anchor in the payments system
  • Reaffirm May 2017 FX commitments

I think we're underrating some of the changes that are coming. Global minimum corporate taxes, digital taxes and carbon pricing are all negative for equities.

The meeting is June 5 and will be the first in-person meeting since the pandemic.