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; HP gains offset by oil, credit woes (Reuters)
2008.08.20By Ellis Mnyandu 11 minutes ago
NEW YORK (Reuters) - Stocks were little changed on Wednesday as rising oil prices and nagging concerns about the credit crisis offset a strong outlook and profit from Hewlett-Packard (HPQ.N), the world's largest computer maker.
Shares of Fannie Mae (FNM.N) and Freddie Mac (FRE.N) fell to the lowest levels in more than 17 years as concerns mounted that the U.S. housing finance companies may need a government bailout.
U.S. front-month crude shot up $1.96 to $116.49 a barrel after Goldman Sachs (GS.N) reiterated its year-end price forecast of $149 a barrel for U.S. crude.
The headwind from higher oil pummeled shares of big manufacturers, with shares of diversified manufacturers United Technologies (UTX.N) and General Electric (GE.N) down 1.3 percent and 2 percent, respectively.
"We're still being driven by the financials and the uncertainties surrounding Fannie and Freddie in particular," said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm in Toledo, Ohio.
"Until that gets resolved, you'll continue to have that uncertainty, and it will be hard for the market to make any progress in that atmosphere."
The Dow Jones industrial average (.DJI) slid 49.91 points, or 0.44 percent, to 11,298.64. The Standard & Poor's 500 Index (.SPX) fell 4.72 points, or 0.37 percent, to 1,261.97. The Nasdaq Composite Index (.IXIC) shed 5.82 points, or 0.24 percent, to 2,378.54.
The U.S. Treasury is in regular contact with Fannie Mae and Freddie Mac and their regulators, a Treasury spokeswoman said but declined to confirm a report that the Treasury was due to meet with Freddie Mac executives on Wednesday.
Shares of United Technologies dropped to $64.10 on the New York Stock Exchange, while GE declined to $28.15.
Fannie Mae shares slid nearly 17 percent to $4.97, as Freddie Mac shares dropped about 19 percent to $3.40.
Investors worry that the worsening U.S. housing downturn would make it harder for the two companies to function without a government bailout, which analysts say would effectively wipe out holders of Fannie's and Freddie's common stock.
Even so, the HP news boosted hopes that technology spending will hold up, particularly as demand from abroad offsets weakness in the United States.
Shares of HP, a Dow component, jumped more than 4 percent to $45.37 on the NYSE. Its boost lent support to other big-cap technology stocks, including Apple (AAPL.O), which was a top boost to the Nasdaq, rising 1.5 percent to $175.91.
(Additional reporting by Steven Johnson; 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.
