FT News Briefing Monday, September 9
Sep 9, 2019
A surprising study reveals that 40% of global foreign investment is used to dodge taxes. British Airways faces chaos with 50 flight cancellations due to a looming pilot strike. Exports from China drop significantly, impacting its manufacturing sector amid US trade tensions. In Saudi Arabia, the unexpected removal of energy minister Khalid al-Falih shakes the global oil landscape. Meanwhile, UK politics heats up as the Prime Minister pushes for an early election while navigating Brexit challenges, particularly around the contentious Northern Ireland border.
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Phantom FDI
- Nearly 40% of global foreign direct investment is "phantom capital," used by multinationals for tax avoidance.
- This amounts to about $15 trillion, often routed through low-tax jurisdictions like Luxembourg and the Netherlands.
BA Flight Cancellations and Strike
- British Airways canceled around 50 UK-bound flights due to plane parking issues at Heathrow and Gatwick.
- This comes before a two-day pilot strike over pay, expected to ground 1,700 flights and affect thousands.
China Export Drop
- China's August exports fell 1% compared to 2018, impacted by the trade war with the US.
- This drop contrasts with July's export growth and economists' predictions of an increase.