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.
Futures drop as recession fear mounts (Reuters)
2008.10.15By Ellis Mnyandu 13 minutes ago
NEW YORK (Reuters) - Stock index futures fell on Wednesday as investors worried that efforts to ease the credit crisis would not avert a recession, overshadowing solid profits from Coca-Cola Co (KO.N), a bellwether for consumer spending.
Investors were cautious before a deluge of economic reports, including September retail sales, and a speech by Federal Reserve Chairman Ben Bernanke.
A report on September retail sales is due at 8:30 a.m., along with a report on the Producer Price Index, an inflation gauge, for September. The Fed will release a manufacturing survey for New York state for October.
Ben Bernanke is scheduled to speak to the Economic Club of New York at 12:15 p.m.
The Fed's Beige Book, which provides a snapshot of business conditions around the country, is due at 2 p.m.
Investors fear the data and company outlooks might point to a worsening economic picture and recession fears will derail an attempted recovery by stocks for a second straight day.
"The path of least resistance in this market is down," said Arthur Hogan, chief market analyst at Jefferies & Co in Boston.
"I think people are realizing there are interesting tools being put in place to deal with the credit crisis, but there's going to be a lag time to get them to work."
Hogan said most companies will have to lower their profit estimates for 2009.
S&P 500 futures dropped 14 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dropped 124 points, and Nasdaq 100 shed 9 points.
Only two days ago the market soared and the Dow had its biggest one-day point gain ever.
Shares of technology bellwether Intel Corp (INTC.O) jumped 4 percent before the bell.
But the company's chief financial officer said on Tuesday
that even though his company had stronger-than-anticipated profit, he is cautious in light of the turbulent financial environment.
Coca-Cola's shares were up nearly 5 percent before the bell after the world's largest soft-drinks maker posted a third-quarter profit above Wall Street's forecasts.
U.S. stocks fell on Tuesday on fears the global economy may not escape a recession. Shares of technology and consumer companies were battered, eclipsing a government rescue plan for banks.
(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.
