Joe Biden’s plan to overhaul the international tax system will face a difficult passage through the US Congress as Republicans threaten to vote down a prospective deal in a Senate where a two-thirds majority is necessary for approval.

Washington’s efforts to break a diplomatic impasse on how global companies are taxed was rewarded over the weekend when the G7 backed a global minimum rate of at least 15 per cent and agreed that countries should have the right to tax a portion of the world’s largest businesses’ profits where they are generated.

But approving changes to international tax treaties would require support from a two-thirds supermajority on the Senate, posing a problem for the Biden administration as G7 nations pursue a broader deal being negotiated at the OECD.

Senior Republican lawmakers have lined up to slam the fledgling multilateral accord as being harmful to the competitiveness of American companies. They accused the US president of ceding taxing rights to other countries and failing to solve a long-running battle over digital taxes. Pat Toomey, the Republican senator from Pennsylvania, called the global minimum tax “crazy”.

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China’s producer prices rise at fastest pace in 13 years The price of goods leaving China’s factories has climbed sharply this year, piling pressure on policymakers as they grapple with the effects of a global commodity price rally.

US investigates leak of records showing billionaires pay little tax Tax authorities have launched an investigation into a leak of billionaires’ private records after ProPublica published details of Internal Revenue Service data that showed some of the wealthiest Americans, including Warren Buffett, Jeff Bezos, Mike Bloomberg and Elon Musk, paid little tax as their wealth ballooned. (FT, ProPublica)

Infrastructure talks between Joe Biden and Republicans collapse The US president’s $2.3tn infrastructure package — along with a separate $1.8tn social spending plan — is central to his hopes of reshaping the post-pandemic US economy by giving the government a bigger role in funding public goods including roads, broadband, child care subsidies and pre-school education.

Indian tycoons surpass Chinese tech moguls in global rich list India’s industrial moguls Mukesh Ambani and Gautam Adani have swept past the likes of China’s Jack Ma in global wealth rankings as the fortunes of leading billionaires in two of Asia’s largest economies diverge.

Bar chart of Estimated net worth ($bn) showing India’s industrial moguls surpass China’s tech titans

Hundreds arrested in Trojan Shield sting More than 800 people have been arrested globally in a sting that lured drug dealers and organised criminals to an encrypted communications platform secretly run by the FBI. The operation led to seizures of more than 32 tonnes of drugs and $48m in currencies and disrupted more than 100 murder plots.

China investigates senior bad debt official for corruption The country is investigating an executive at one of its biggest state-backed distressed debt managers for graft, six months after a former senior banking official was executed over corruption charges.

EY top deal adviser in France quits auditor to set up rival boutique Yannick de Kerhor has quit the accounting group to launch a rival, with his Paris-based boutique EKEM Partners teaming up with EOS Deal Advisory, the London firm run by two former senior partners at KPMG UK.

US financial regulator warns against strict cryptocurrency rules Hester Peirce, SEC commissioner, has spoken out against her colleagues’ attempts to regulate the cryptocurrency market more stringently, warning that doing so risks of discouraging investors.

Global stocks drift as investors wait on US inflation numbers Economists expect the biggest year-on-year rise in US consumer prices since 1993. Global equities were pinned around all-time highs as traders stayed on the sidelines ahead of US inflation data on Thursday.

Joe Biden in the UK The US president heads to Europe for an eight-day trip, starting with the UK and including the G7 summit as well as stops in Belgium and Switzerland. (Reuters)

N Ireland protocol talks UK Brexit minister Lord David Frost and his EU counterpart Maros Sefcovic will attempt today to rescue a plan to calm tensions in Northern Ireland after days of recriminations.

Why Europe’s banks want to end US dominance in payments Four in five transactions in Europe are handled by Mastercard and Visa, according to EuroCommerce, a lobby group of European retailers. The last time Europe’s banks tried to build a payments group capable of taking on the US giants that dominate the sector, they failed. But could this change with the European Payments Initiative?

Line chart of Transactions (bn)  showing Use of non-cash payments increases in Europe

The Fed risks reacting too slowly The rise in inflation might be both modest and temporary and might not affect inflationary expectations, as the Federal Reserve believes, writes Martin Wolf. But the US central bank has locked itself into responding too slowly, especially given the fiscal expansion.

The world forgets Syria at its extreme peril Much of the world seems to have forgotten the country’s savage civil war, 10 years old and still radiating chaos across the Middle East and Europe. The complacency that set in after the defeat of Isis is misplaced. So is the idea that fragile neighbours can be bought off to act as holding pens for 6m Syrian refugees, writes our editorial board.

Nato allies need to speed up AI defence co-operation As Russia intensifies cyber hostilities and China weaponises artificial intelligence, joining forces in the field of high-tech warfare will feature high on the list of topics at next week’s summit. But the transatlantic alliance will need to move fast if it aims to make up lost ground, writes Helen Warrell.

Exporting Chinese surveillance The use of Chinese technology is one of the backdrops to the G7 summit, where leading democracies will discuss how to respond to Beijing’s global reach. To defenders, these surveillance systems offer big efficiency gains. But to some experts, they carry potential security and human rights threats.

Miners’ troubles show need for climate ‘bad banks’ Just as financial institutions turned to bad banks to manage toxic assets in the aftermath of the financial crisis, miners need a way to quarantine theirs, writes Helen Thomas. The transition to net zero may require models to isolate “stranded” assets and run them down.

Cloud glitch brings down thousands of websites