Is the greenback’s role as the predominant global reserve currency in jeopardy? Even before the pandemic, there were signs that the dollar’s dominance was retreating, writes senior editorial columnist John Plender. Now the threats to watch are “US fiscal profligacy and monetary debasement”.
Indeed, the Federal Reserve faces a “tricky policy pivot”, writes Mohamed El-Erian, president of Queens’ College, Cambridge university. Having dismissed concerns about inflation and tapering support, there are indications some officials want to discuss options. Better to risk the short-term discomfort of a switch, than the threat of greater damage from a policy mistake, he argues.
Elsewhere, the G7 is close to
reaching an agreement on corporation tax for multinationals, which would limit the ability of companies to shift profits to low tax jurisdictions.
And closer to home, the CBI has set out a
£700bn economic plan for government and British businesses to follow to help the post-Brexit and post-pandemic recovery.
The report “
offers a microeconomic complement to the government’s vision,” writes Tony Danker, director-general of the CBI. “Success or failure now depends on whether business and government can work in unison rather than in parallel,” he adds.
Closer to the boardroom,
the UK government’s plans for introducing “managed shared audits” for FTSE 300 companies face a setback. BDO and Grant Thornton, the largest accounting firms in the UK after the Big Four, are considering not pitching for shared audits of FTSE 100 companies, which could leave some struggling to find a challenger to work with.
On that note, our chief UK business correspondent Dan Thomas hosted an FT Board Director digital event, discussing the proposed audit and corporate governance reforms with Sir Jonathan Thompson, chief executive of the Financial Reporting Council, yesterday. If you missed it, you can
catch up here.
Directors might also be interested to see accountancy firm EY embracing hybrid working. It told UK staff to
expect to spend at least two days a week working from home after the pandemic.
But
some chief executives are finding themselves in glorious isolation. As many organisations grapple with a return to work, statistics suggest that workers do not feel the same pull to go back to the office as bosses.
Meanwhile, the tense proxy season continues. Yesterday
Aston Martin faced an investor rebellion over its pay report and the re-election of executive chair Lawrence Stroll. It is ExxonMobil’s turn today.
There is a vote to decide who sits on its board, and shareholders are restless about the company’s response to climate change.
Finally, the International Energy Agency has also
faced pushback from members about its report on reaching net zero emissions by 2050. Japan and Australia have both suggested they will continue fossil fuel investment.