French FinMin Le Maire: No global digital tax by end-2020 would mean digital tax chaos

In an interview with Reuters on Friday, French Finance Minister Bruno Le Maire said that he discussed global digital tax issue with the G20 Finance ministers and central bank governors.

Key quotes:

For the first time there is wide consensus among the G20 members on the necessity of having a new international taxation system.

We have to address the issue of digital companies making profits in many countries without any physical presence, which means without paying the due level of taxes.

Last month, Le Maire said that they are close to deal with the US on digital tax.

Market implications:

So far this Monday, the rising coronavirus concerns continue to dominate the sentiment across the markets in Asia, with safe-havens in heavy demand, as virus outbreak spreads rapidly in Italy and South Korea.

USD/JPY keeps the upside limited while trading around 111.50 amid a steep sell-off in the US equity futures. The European peers also follow suit, with Eurostoxx 50 futures down 2%, while FTSE futures fall 1.3%.

• EUR/USD trades below 200-HMA as Coronavirus grips Italy