China considers same tax rate for domestic, overseas firms (AFP)
AFP - Chinese lawmakers have mulled a draft law that would impose a 25 percent income tax on both domestic and foreign firms, eliminating the preferential rate for overseas companies, according to state media.
Financial shares roil Wall St on credit worry (Reuters)
2008.08.18By Ellis Mnyandu 44 minutes ago
NEW YORK (Reuters) - Stocks fell on Monday as investors fretted about the prospect of more losses from the mortgage crisis, sending shares of the two big U.S. home finance providers and other financial companies lower.
Investors were hit with a one-two punch from news pointing to no let up in the credit crisis stemming from the U.S. housing slump.
Shares of mortgage buyers Fannie Mae (FNM.N) and Freddie Mac (FRE.N) each fell more than 10 percent following a Barron's newspaper report that the U.S. Treasury is increasingly likely to recapitalize the beleaguered companies, a move that will potentially would dilute the value of stock holdings.
The S&P financial index (.GSPF) fell nearly 2 percent.
The Wall Street Journal reported that some analysts are girding for investment bank Lehman Brothers (LEH.N) to announce
a third-quarter loss of $1.8 billion or more. Its stock declined 2 percent.
"We are still in the throes of the credit crisis," said Steve Goldman, market strategist at Weeden & Co in Greenwich, Connecticut. "There's risk that Fannie Mae and Freddie Mac may require capital from the government. Those companies are what's at issue."
The Dow Jones industrial average (.DJI) slid 59.19 points, or 0.51 percent, to 11,600.71. The Standard & Poor's 500 Index (.SPX) declined 5.70 points, or 0.44 percent, to 1,292.50. The Nasdaq Composite Index (.IXIC) dropped 11.52 points, or 0.47 percent, to 2,441.00.
Freddie Mac shares declined to $5.22 on the New York Stock Exchange, while those of Fannie Mae slid to $7.03. Merrill Lynch slashed its price target on Freddie Mac to $5.75.
Lehman Brothers shares declined to $15.84. According to the Wall Street Journal, if losses keep piling up, Lehman could need to raise additional capital beyond the $6 billion it got in June.
Shares of Bank of America (BAC.N), the No. 2 U.S. bank, fell 3.1 percent to $29.74 on the NYSE, making the stock the top S&P 500 drag.
Technology services company International Business Machines (IBM.N) was a top drag on the Dow, falling nearly 1 percent to $125.26. On Nasdaq, shares of Google (GOOG.O), the Web search company, fell 1.2 percent to $504.06.
A bounce in oil prices added to the jittery tone.
U.S. front-month crude rose 34 cents to $114.11 on the New York Mercantile Exchange.
(Editing by Kenneth Barry)
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China says to continue stable monetary policy (Reuters)
Reuters - China's central bank said on Monday that it would continue to take steps to keep investment and credit growth in check, while pressing ahead with efforts to make the value of its currency more market-driven.
Reuters - China's central bank said on Monday that it would continue to take steps to keep investment and credit growth in check, while pressing ahead with efforts to make the value of its currency more market-driven.
Economic growth concerns drag down indexes (Reuters)
Reuters - U.S. stocks dropped on Friday as concerns about slowing economic growth persisted, causing investors to sell shares of bellwether companies such as plane maker Boeing Co. and leaving all three major indexes in the red for the week.
Reuters - U.S. stocks dropped on Friday as concerns about slowing economic growth persisted, causing investors to sell shares of bellwether companies such as plane maker Boeing Co. and leaving all three major indexes in the red for the week.
Russia tax office files suit vs PWC on YUKOS audit (Reuters)
Reuters - Russian tax authorities have filed a suit against the local branch of PricewaterhouseCoopers (PwC) accusing it of producing a false audit for fallen oil company YUKOS, the auditor said on Monday.
Reuters - Russian tax authorities have filed a suit against the local branch of PricewaterhouseCoopers (PwC) accusing it of producing a false audit for fallen oil company YUKOS, the auditor said on Monday.
Japan keeps view that economy is recovering (Reuters)
Reuters - The Japanese government kept its assessment of the economy unchanged in a monthly report on Monday, after downgrading it for the first time in almost two years last month.
Reuters - The Japanese government kept its assessment of the economy unchanged in a monthly report on Monday, after downgrading it for the first time in almost two years last month.
