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.
Wall St flat as techs gain, Fannie, Freddie slump (Reuters)
2008.08.21By Walter Brandimarte 9 minutes ago
NEW YORK (Reuters) - Stocks were little changed on Wednesday as strong results from Hewlett-Packard (HPQ.N) triggered a rally in the technology sector, but shares of Fannie Mae and Freddie Mac slumped to more than 17-year lows on fears the companies may need a government bailout.
HP's quarterly profit rose a forecast-beating 14 percent, raising hopes that demand from abroad will support technology spending, despite weakness in the United States. Shares of the world's largest computer maker jumped 5.5 percent to $46.07 and were the main boost for both the Dow and the S&P 500.
Financials also rebounded from Tuesday's sell-off as U.S. crude oil prices fell more than $1 per barrel, supporting hopes inflation will ease and interest rates will remain low, helping the bank sector.
But shares of housing finance giants Fannie Mae (FNM.N) and Freddie Mac (FRE.N) plunged on growing concerns that a possible government bailout might dilute shareholder value.
"Until that issue gets resolved you'll continue to have that uncertainty, and it will be hard for the market to make any progress in that atmosphere," said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm in Toledo, Ohio.
The Dow Jones industrial average (.DJI) edged higher 9.12 points, or 0.08 percent, at 11,357.67, while the Standard & Poor's 500 Index (.SPX) was up by 0.18 point, or 0.01 percent, at 1,266.87. The Nasdaq Composite Index (.IXIC) dipped 1.23 points, or 0.05 percent, at 2,383.13.
Shares of Fannie Mae, the biggest U.S. provider of housing finance, fell 16.8 percent to $5.00 after falling as low as $4.74. Shares of Freddie Mac fell 19.7 percent to $3.35, after trading as low as $3.15.
Despite the fall in oil prices, energy shares posted strong gains, supporting the S&P 500. Shares of oil producer and refiner Hess Corp (HES.N) climbed 2.6 percent to $101.02, while ConocoPhillips (COP.N) rose 1 percent to $80.05.
"To me, the market has now recognized that oil services stocks and equipment stocks sold off more than they should have," said Michael Koskuba, portfolio manager and analyst with Victory Capital Management.
(Additional reporting by Ellis Mnyandu; Editing by Leslie Adler)
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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.
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Japan keeps view that economy is recovering (Reuters)
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