The Dutch government has launched an eleventh-hour attempt to keep Shell in the Netherlands by seeking to abolish a contentious dividend tax cited by the energy group as a reason to unify its share structure and move its headquarters to the UK.
Officials from the Dutch government told the Financial Times that the caretaker government of Mark Rutte was seeking to find a last-minute parliamentary majority to scrap a 15 per cent withholding tax that has long been a source of complaint for Shell and fellow Anglo-Dutch multinational Unilever.
The political machinations come hours after Shell announced it would end its dual share structure and shift its entire tax base to the UK. The Dutch government said the announcement was an “unwelcome surprise” and is now scrambling to keep Shell from leaving.
Earlier this year, Shell chief executive Ben van Beurden cited the Netherlands’ failure to abolish the dividend tax as a potential reason for leaving the country. The UK is an exception among most European countries by not having a withholding dividend tax.
Thank you for reading FirstFT Asia. Here’s the rest of today’s news — Emily
Five more stories in the news
1. Biden signs $1.2tn infrastructure bill into law Joe Biden signed the Infrastructure Investment and Jobs Act into law yesterday, in a legislative victory for the US president at a time when his approval ratings have hit an all-time low.
2. Russia warned of consequences of hostilities against Ukraine In a joint statement, Heiko Maas and Jean-Yves Le Drian, the foreign ministers of Germany and France, pledged “unwavering support for the independence, sovereignty and territorial integrity of Ukraine” as ministers held meetings to discuss the threat posed by a build-up of Russian troops on the country’s border.
3. Duterte enters last-minute Senate bid Philippine president Rodrigo Duterte entered an eleventh-hour candidacy for the Senate in next year’s national election, reversing a vow to quit politics barely an hour before a deadline for parties to change their candidates. The decision came days after Duterte’s daughter Sara Duterte-Carpio announced she was running for vice-president.
4. North Korea signals a reopening of China border North Korea is converting an air base near its border into a disinfection facility for containers transported by train, a move analysts say may lead to the resumption of trade with China and undermine US hopes that economic pressure might force Pyongyang back to the nuclear negotiating table.
5. Apollo abandons plan to hire star financier as vice-chair Apollo Global Management said it had been forced to abandon its plan to hire former TIAA boss Roger Ferguson as its vice-chair, after the veteran investment executive revealed commitments to his former employer that barred him from taking up the position.
Coronavirus digest
New home prices in China fell for the second consecutive month in October, clouding the country’s economic outlook.
Japan’s economy shrank sharply during the third quarter as global supply chain disruptions and a resurgence in Covid-19 cases damped spending.
JPMorgan Chase’s Jamie Dimon became the first boss of a big Wall Street investment bank to visit Hong Kong or mainland China since the start of the pandemic.
The day ahead
US trade officials continue Asia tour After meeting with officials in Tokyo yesterday, US trade representative Katherine Tai will continue on to South Korea and India and commerce secretary Gina Raimondo will travel to Singapore and Malaysia. (Politico)
The Macklowe Collection auction The most expensive art collection to come up for auction will go under the hammer at Sotheby’s in New York. Sotheby’s has estimated the 35 works up for auction will fetch $400m or more by the night’s end, with six masterpieces expected to bring in at least $20m each.
Start every week with a preview of what’s on the business agenda in the coming days. You can sign up here to receive the Week Ahead email in your inbox each Sunday.
What else we’re reading
China’s nuclear build-up Over the past two decades, China has stunned the US with the relentless pace of its conventional military build-up, from fighter jets and bombers to submarines and warships. As Beijing prepares to quadruple its warhead arsenal by 2030, could its growing nuclear capability alter the balance of power in Asia?
Private equity buyers plot to carve up General Electric The US industrial conglomerate’s decision to split into three companies has set the stage for a feeding frenzy among private equity buyers looking to carve GE into more pieces, say people at several large private equity groups.
The UN climate process is designed to fail After Glasgow, it is time to recognise that the UN climate process does not work. This is not because the science discussed at the COP meetings is faulty. The problem is political, writes Gideon Rachman.
How management fashions can change the world On the surface little has changed in the world of management in the past decade. Happily, says Andrew Hill, this appearance is mistaken. The changes have, however, taken root behind the old bureaucracy, he says.
Related read: Portuguese law bans employers from contacting staff out of hours
Couples who share beds but not Covid Analysing the genes of those who appear to be naturally resistant to Covid-19 could lead to antiviral treatments. A similar approach led to the development of maraviroc, a HIV treatment approved by the US Food and Drug Administration in 2016.
Books
FT management editor Andrew Hill selects his favourite business books of the year, from The Cult of We, an investigation of the rise and fall of WeWork to Empire of Pain, a dissection of the secret history of Perdue Pharmaceutical’s Sackler dynasty
Source: Economy - ft.com
