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.
Lower open seen on credit, economic worry (Reuters)
2008.08.19By Ellis Mnyandu 11 minutes ago
NEW YORK (Reuters) - Stocks were set to drop at the open on Tuesday as government data showed underlying inflation is picking up speed and investors worried that the credit crisis was far from over.
Wall Street was likely to extend declines seen in Asia and in Europe.
Fanning gloom about the financial sector was a forecast by JPMorgan Securities that Lehman Brothers (LEH.N), a U.S. investment bank, will likely take a further $4 billion of write-downs in the third-quarter due to losses stemming from sour mortgage-related investments.
Lehman shares were down 2.2 percent at $14.70 before the bell. Additionally, worries about the stability of home finance providers Fannie Mae (FNM.N) and Freddie Mac (FRE.N) persisted.
U.S. wholesale prices shot up at the fastest annual rate in 27 years, while core producer prices, excluding volatile food and energy, notched their fastest rise since November 2006.
The PPI data supported those arguing that the U.S. economy is dogged by mounting inflationary pressures even as growth slows due to the housing downturn. July's Consumer Price Index
last week rose at the fastest pace in 17 years.
"This really confirms what the CPI showed last week, that inflation is running high," said Ryan Detrick, technical analyst at Schaeffer's Investment Research in Cincinnati, Ohio.
"The hope with the PPI was that maybe it was going to come down a little bit, given the lower energy prices, but this higher-than-expected number confirms that inflation is going to continue to be a concern for the Fed going forward."
S&P 500 futures fell 11.30 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 declined 99 points and Nasdaq 100 futures slid 14.5 points.
(Additional reporting by Kristina Cooke; 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.
