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 rise as oil trims gains, Lowe's beats (Reuters)
2008.08.18By Ellis Mnyandu 10 minutes ago
NEW YORK (Reuters) - Stock index futures rose on Monday as oil prices cut earlier gains and an easing of geopolitical concerns surrounding Pakistan's leadership underpinned sentiment.
U.S. front-month crude backed off from an earlier $115.35 a barrel as supply fears related to Tropical Storm Fay ebbed. The storm was set to miss of the major offshore oil and gas production in the Gulf of Mexico. As of 5 a.m. the storm was located over central Cuba moving north-northwest.
Stronger-than-expected profit from Lowe's Cos Inc (LOW.N) , the No. 2 U.S. home improvement chain, also added to the positive tone. Lowe's reported a lower second-quarter profit as consumers took on fewer big-ticket remodeling during the housing slump, but the company still beat analysts' estimates on profit and sales.
The resignation of Pakistan's beleaguered President Pervez Musharraf eased worries of political turmoil in the nuclear-armed country.
"We were a little higher in oil prices earlier, and oil now seems to have come off a little bit, which helps the tone," said Peter Cardillo, chief market economist at Avalon Partners in New York. "The other positive is that the geopolitical concerns we had last week are beginning to wane."
S&P 500 futures rose 4 points and were above 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 climbed 34 points and Nasdaq 100 futures gained 10 points.
In housing-related news, the U.S. Treasury is increasingly likely to recapitalize home finance providers Fannie Mae (FNM.N) and Freddie Mac (FRE.N) in the months ahead on the taxpayer's dime, Barron's newspaper reported in its August 18 edition.
The weekly financial newspaper said that such a move could wipe out existing holders of the agencies' common stock, with preferred shareholders and even holders of the two entities' $19 billion of subordinated debt also suffering losses.
Musharraf, the former army chief and firm U.S. ally, has seen his popularity slide over the past 18 months and has been isolated since his allies lost a February election. He announced his resignation on Monday.
U.S. stocks ended mixed on Friday, with the Dow and S&P 500 rising as lower oil prices lifted hopes of a consumer spending recovery, but the Nasdaq was little changed.
(Editing by Kenneth Barry)
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