Obama speech makes Asia cautious but Europe fears of UK break-up eases
President Obama’s speech last night in which he vowed to fight Islamic State extremists in a “systematic campaign” has seen cautious response on the Asian stock markets today. With the US now set to launch airstrikes in Syria and further action in Iraq many investors chose to avoid risk. Regionally there was further news of issues with China’s economy but investors are optimistic that the government there will increase stimulus. There were also some positive notes from Japan, keeping the Nikkei stronger. In Europe shares have rallied after a new opinion poll suggested that Scotland would vote to stay in the UK. Gold and oil prices have continued to edge downwards and US futures are trending down.
US Department of Labor releases weekly jobless claims data at 8.30am ET
US Treasury budget for August at 2pm ET
RadioShack, Lululemon and Kroger all due to report quarterly earnings before the bell.
Senators appeal to Burger King
A group of US senators have written to Burger King urging them to scrap plans to move the business to Canada as part of the Tim Hortons deal. With the potential for huge tax savings by being domiciled north of the border Burger King would be the latest big business to ‘invert’ and pay its taxes in a country with lower rates. However, the senators argue their case on the grounds of what’s fair. They highlight that Burger King’s employees are frequently among those that benefit from Medicaid and food stamps; both taxpayer funded, and the company benefits from the infrastructure and other perks of doing business in the US. Many companies have chosen to take their tax affairs elsewhere in a move that has been branded unpatriotic by many. One notable exception is Walgreen that considered the move after buying European firm Alliance Boots Holdings but decided to stay in the US amid pressure. Read the full story.
Home foreclosures on the rise in August
Foreclosure activity increased in August for the second month in a row according to RealtyTrac. In total 116,913 properties were at some level of the foreclosure process, a rise of 7 per cent from July but down 9 per cent from last year. The increased activity is mainly the result of banks taking more action and scheduling more housing auctions. Read the full story