Today's news headlines: 

‘G7 tax deal is “starting point” on road to global reform’. The advanced nations met last week to discuss reforms to the international tax system, which many multinational companies have taken advantage of in recent years. Most ministers have backed provisional plans for a 15% tax rate to apply to companies in the countries where they operate, which is expected to raise up to another $80bn in tax revenues yearly. The talks are still in their infancy, with questions around how to define the tax base and the companies that would be liable to pay this new rate still up in the air. (Financial Times)

‘Chip shortage to last until at least mid-2022, warns manufacturer’. Chip manufacturers have been strained in the last year as demand for consumer electronics surged. Working from home and lack of entertainment in lockdown have been some of the main drivers of this shortage. The recent jump in vehicle sales has further strained supply, with companies such as Tesla have considered buying a chip plant outright. Consumer spending could begin moving toward services and away from consumer electronics as coronavirus related lockdowns start to ease around the world. (Financial Times)

Today's events, rates, and data 

• On Friday, the S&P 500 gained 0.88% as the US Unemployment Rate fell to 5.8%. The FTSE 100 managed small gains of just 0.07%. Cable is managing to keep its head above $1.41, while Sterling continues to trend higher against the Euro. 

Today's events

China Trade Balance: 296B vs 277B last month
Switzerland Unemployment Rate: 3.0% vs 3.1% last month
German Factory Orders m/m: -0.2% vs 3.9% last month
Switzerland CPI m/m: 0.3% vs 0.2% last month
UK Halifax HPI m/m: 8:30am
Eurozone Sentix Investor Confidence: 9:30am

Interbank rates

GBP/USD: 1.4118
GBP/EUR: 1.1617
EUR/USD: 1.2155
USD/CAD: 1.2099

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