Presented by TravelPerk

Hi John, here's what you need to know for December 4th in 3:10 minutes.

⏳ Keep it brief

• The US threatened a trade war with France in response to taxes aimed at big tech companies
• Gold miner Centamin rejected rival Endeavour Mining’s $1.9 billion acquisition bid

Popping Off

What’s Going On Here?

America struck back against France's controversial new tech tax late Monday – and big US firms will be celebrating.

What Does This Mean?

While it failed to gain European Union-wide approval, France went ahead and introduced a 3% “digital services tax” anyway in August. La République is keen to ensure tech giants pay a fair level of tax relative to the amount of business they actually do in the country. The idea is that they pay tax on revenues generated in France – relatively simple to calculate – rather than on profits that can be shifted to tax havens.

While France insists the new tax tackles firms from all countries – including China – the US views it as an unfair attack on American tech companies. And it’s threatening to bite back with 100% tariffs starting early next year on $2.4 billion worth of popular French products, from sparkling wine and cheese to makeup and handbags – effectively doubling their prices.

Why Should I Care?

For markets: A new front opens up.
France has vowed to retaliate against any new tariffs, and it might find support among its neighbors: the US has threatened other European countries planning digital service taxes with similar tariffs. But if this descends into yet more trade war, then European manufacturers – already struggling with existing battles – will hardly be cracking open the champagne. Less business with the US would make things decidedly less bubbly for Europe's economy and its stock markets.

The bigger picture: What goes around comes around.
LVMH, the French producer of Moët bubbles and Louis Vuitton handbags, saw its stock price fall on Tuesday. And the luxury goods giant might soon have something else to worry about: if France is arguing that tax should be paid where revenue is generated – and is targeting Chinese tech firms accordingly – then what’s to stop China asking the same of LVMH, given the group makes nearly a third of its sales there?

Got a question about this article? Ask us here

I Can Tell You Rock

What’s Going On Here?

Now we ain’t sayin’ Centamin’s a gold digger… but the British miner ain’t messin’ with no $1.9 billion takeover offer from Canadian rival Endeavour, it emerged on Tuesday. Get down, girl (go 'head, tweet this).

What Does This Mean?

Endeavour and Centamin both operate gold mines in Africa. Endeavour currently focuses on West Africa, but Centamin’s got somethin’ that it needs to have: the only way in to a rich Egyptian gold deposit.

Endeavour tried to give Centamin money, but it took too much to touch her: Centamin’s board thinks the proposed deal undervalues the company. Still, it’s got that ambition, baby. On Tuesday Endeavour made the offer public, hoping Centamin’s shareholders would dig its bid – valuing the company 13% above its share price on Monday – and pressure the board to change its mind. Centamin’s stock then soared above the bid price – suggesting investors are also holding out for more. Better be paid…

Why Should I Care?

The bigger picture: You got needs.
Gold chains are in fashion in Canada: Kirkland Lake Gold paid $3.7 billion for a linkup with Detour Gold last week, and on Monday China’s Zijin Mining Group bought Continental Gold for $1 billion. As global reserves of the precious metal dwindle and extraction costs grow, mining companies have turned to acquisitions to boost profits. For investors, consolidation also offers diversification: Tuesday’s mooted deal would make Centamin’s shareholders less reliant on the success of just one big working mine.

For markets: A triflin’ friend indeed.
After rallying earlier this year in response to fears of an economic slowdown, gold’s price fell dramatically in November. Gold is a “safe haven” investment: it tends to do well when markets are jittery, but in recent weeks investors have grown more comfortable taking on risk. Still, any re-emergence of trade tensions and fears of an economic slowdown could cause the gold price to rebound – which would stop gold diggers going broke, broke...

Got a question about this article? Ask us here