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.
Freddie Mac debt sale weak, bailout concerns rise (Reuters)
2008.08.1833 minutes ago
NEW YORK (Reuters) - Freddie Mac's (FRE.N) latest debt sale drew anemic demand on Monday, a day after Barron's reported an increasing likelihood the U.S. Treasury may essentially take over Freddie and rival Fannie Mae (FNM.N).
The weekly financial newspaper said such a move could wipe out existing holders of the largest U.S. home funding companies' common stock, with preferred shareholders and even holders of the two government-sponsored entities' $19 billion of subordinated debt also suffering losses.
Bonds issued by the two 'agencies' sharply underperformed Treasuries, and their shares slid by more than 9 percent on the New York Stock Exchange.
Merrill Lynch also weighed in on Freddie Mac on Monday, saying it will likely raise fresh capital in the third quarter, comprised of at least 50 percent common stock. Merrill also cut its price target on the company.
"Lukewarm was my overall characterization," Nancy Vanden Houten, analyst at Stone & McCarthy Research Associates, said in an email of Freddie Mac's $4 billion debt sale Monday.
"The bid-to-cover ratios were weak for all three bill auctions. Spreads weren't uniformly bad, however."
"The Barron's story seems to be getting a lot of attention, rightly or wrongly," Vanden Houten said.
A bid-to-cover ratio reflects the amount of bids compared with the amount offered. A lower ratio indicates weaker demand.
The bid-to-cover was 2.19 for the $2 billion 3-month issue, down from 2.73 a week ago. It also fell to 2.42 from 2.92 for the $1 billion of 6-month bills. The bid-to-cover ratio for the $1 billion of 12-month bills was 1.75, down from 2.50 percent at the prior sale of this maturity on July 21.
(Reporting by Lynn Adler and Chris Sanders; Editing by James Dalgleish)
Top News
More articles on this topic:
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.
