Global shares rallied on Friday as investors cheered signs of improving US-China relations and looked towards more governments gradually reopening their economies.
The positive mood stands in sharp contrast to the economic data. US unemployment numbers that were due later on Friday are expected to be the worst in a lifetime as the coronavirus pandemic ravages economies.
Top US and Chinese trade representatives discussed their phase one trade deal on Friday, with China saying they agreed to improve the atmosphere for itsexecution and the US saying both sides expected obligations to be met.
Asian markets were lifted by news of a phone call between US and China trade representatives.
This calmed investors' fears about renewed trade tensions after US President Donald Trump and other top officials blamed China for the deaths of hundreds of thousands from the new coronavirus and threatened punitive action, including possible tariffs and shifting supply chains away from China.
"The threat of a breakdown in negotiations for now at least has been averted,” said Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets.
"Of course, the president continues to persist with some of his comments regarding the coronavirus outbreak, but at least from the trade side it looks as though the participants involved have dialled down the temperature a little bit."
The pan-European Stoxx 600 was up 0.6 per cent at 339.86 points, Germany's DAX surged 0.75 per cent to 10,840 and France's CAC 40 climbed 0.6 per cent to 4,526.
US stock futures for the S&P 500 were up 0.92 per cent to 2,906.
The MSCI world equity index, which tracks shares in 49 countries, was half a per cent higher, while MSCI's main European Index was up 0.64 per cent.
Oil prices also climbed as countries including Australia moved ahead with plans to relax economic and social lockdowns put in place to halt the pandemic, kindling market hopes for a boost in demand for crude and its products.
Brent crude was up 2.6 per cent, at $30.23 per barrel, while US oil gained 4.5 per cent to $24.61 a barrel. Both contracts are heading for a second week of gains after the lows of April.
The unemployment data due later in the day is expected to show a historic hit to the US labour market.
Forecasters expect the US economy to lose a staggering 22 million jobs in April, in what would be the steepest plunge in payrolls since the Great Depression and the starkest sign yet of how the pandemic is affecting the world's top economy.
"The situation on the US labour market is a disaster – that is no secret," wrote Commerzbank strategist Thu Lan Nguyen in a note to clients.
"And today everyone’s attention is going to focus on the labour market report for April to find out just how bad the disaster is."
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
The specs
The specs: 2019 Audi Q8
Price, base: Dh315,000
Engine: 3.0-litre turbocharged V6
Gearbox: Eight-speed automatic
Power: 340hp @ 3,500rpm
Torque: 500Nm @ 2,250rpm
Fuel economy, combined: 6.7L / 100km
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In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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