Daily Market Update

Daily Market Update

Daily Market Update US futures dip ahead of busy data week
US futures are down so far this morning as a busy week begins for economic data. Today at 10am EST pending home sales figures will be in focus, while midweek sees the Fed’s Open Market Committee meeting and Friday we get non-farm payrolls figures. There are also some more big name earnings reports due this week.
 
Europe’s stocks subdued while Asia sees rises
Stock markets in Europe were largely flat as trading got underway this morning. Losses on Friday have yet to recover, as pending further sanctions increased the cooling of relations with Russia. Asian stocks saw rises though, with some positive company reports and official data on profits in China’s industrial sector showing 17.9 per cent growth in June from a year earlier.
 
Obama could use 45-year-old law to curb inversions without Congress
A former US Treasury official says that President Obama could tackle the companies using tax-saving ‘inversions’ without backing from Congress. Stephen Shay says that a 1969 tax law is broad enough that it could be used by the President to halt the trend of US companies taking their tax affairs overseas. Mr Shay says that the tax code allows the government to decide what constitutes debt eligible for tax deduction and what does not. As the inversions process involves loans from the overseas parent company to the US based unit, this 45 year old legislation would be relevant. Read the full story.
 
Yukos investors awarded $50 billion
Investors in the defunct Yukos oil company have been awarded $50 billion by an international tribunal in The Hague. The tribunal ruled that the Russian government illegally took control of the company denying the shareholders any compensation. Eleven years later and the three judge decision is likely to be appealed by Moscow. The $50 billion figure is only half what investors were seeking when the action was instigated. If the decision is upheld it could impact on Russian energy giant Rosneft which acquired many of the Yukos assets, and also BP who are 20 per cent shareholders in Rosneft. Read the full story.
 
Veteran investor predicts stock market slump
He’s called it right three times before and now Mark Cook is predicting trouble ahead for the stock market. Mr Cook uses his own formula to analyse the market and he successfully forecast the crashes of 1987, 2000 and 2007. He now believes the market is losing energy and could see a slump of 20 per cent or more within 12 months.  Read the full story.