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Market Update 18/04/16

daily market update

Disclaimer: This is an informal commentary by one of our Market Analysts. It should not be taken as investment advice and is made available only on that basis.
You must first read and ensure you agree to all our terms and conditions.

U.S. equities closed slightly lower on Friday with Energy leading declines (-126 bps) on oil price weakness ahead of Sunday’s Doha meetings (S&P 500 -0.10%).Tech (-46bps) underperformed while Defensives outperformed with Utilities (+66bps).
On the week the S&P gained 1.7%, also Financials +4%, Materials +3.14%, Energy +2% in the period.
ASIA: Japan trades sharply lower on earthquake  and stronger Yen, gives back much of last week’s gains, rest of Asia falls on Oil news, China closes at lows. Chinese average property price inflation, in a 70-city survey, rose 0.8%m/m in March, from 0.4% in February.
Stuart Gulliver, chief executive officer of HSBC Holdings  will stand down in two years as the U.K. bank replaces its top leadership, according to the Sunday Times.
Crude Oil the main story today after failure to reach agreement at Doha, as Saudis scuppered deal which did not include the Iranians, Crude futures -6% almost at $40.58. Indices dragged lower with fall.
Sunday Times reported that EasyJet is considering making a bid for Monarch Airlines
Siemens – another big order win in Power – Siemens and municipal utility SWU to build €500m 600MW power plant in southern Germany.
EC said to consider blocking Hutchison’s UK Mobile Deal with 02.
Brazil congress votes to impeach Rousseff heightening political uncertainty.
Reckitt sales inline, remains on track to meet ’16 targets.
CaixaBank Launches new takeover bid for BPI for c €2bn.
AstraZeneca said to be preparing bid for Medivation in US for c $10bn, Sanofi approached them last week.
A report from the U.K. Treasury warned that Brexit could see the U.K’s national income fall by 6% by 2030.
Europe -1% after open, EURUSD at 1.13.

 

Market Update 08/04/16

daily market update

Disclaimer: This is an informal commentary by one of our Market Analysts. It should not be taken as investment advice and is made available only on that basis.
You must first read and ensure you agree to all our terms and conditions.

U.S. equities saw sharp declines on Thursday in a broadly risk off tape as low rates in the US and Europe weighed on Financials shares (-194 bps), and investors begin to look toward a difficult 1Q earnings season (S&P 500 -1.20%).-All ten sectors closed lower.
ASIA: A-share markets pulled back further this morning and lost the 3k level despite an increase in March foreign reserve (SHCOMP -0.9%).Hong Kong opened and traded slightly lower, closed near highs; Japan index fluctuated as the measure headed for a second weekly loss after the yen surged toward a level investors say may prompt the central bank to intervene in the currency market.
Vivendi to acquire Mediaset SpA’s pay-TV unit.
Yahoo Japan +6% with Verizon said to be interested in a stake.
AB FOODS – To buy 48.65% interest in Illovo that it doesn’t already own.
FCA article in FT on misselling of ‘active’ funds.
Vodafone in discussions with banks over Indian IPO. Reported value of $20bn.
Verizon plans to make a bid for Yahoo web business, willing to help sweeten the offer with a bid to acquire the company’s Yahoo Japan stake. Google may also consider a bid for Yahoo’s core business.
Bloomberg piece on Smart Beta: Smart beta strategies often have a purpose beyond beating the market, said the head of one of the largest index providers, stepping into a debate spurred by a pioneer of the investing style who now says much of it is dumb.
U.K. Prime Minister David Cameron had a stake in an offshore fund set up by his late father, Ian, until six years ago, he said, answering for the first time the question of whether he ever benefited from the investment
Credit Suisse Group asked its employees to refrain from attending and arranging client events where “Brexit” may be discussed, or talking about the issue in public before the British referendum takes place in June, according to a memo.
Ten European countries are developing a tax on financial transactions, a prospect so terrifying to the continent’s traders that one firm in the Netherlands has already drawn up contingency plans to move to the U.K. or Switzerland. Bloomberg piece.
One of five former Barclays  traders accused of rigging benchmark interest rates told regulators that his bosses, including the investment bank’s chief operating officer Mike Bagguley, must have known about the manipulation, U.K. fraud prosecutors said at a London trial.
Markets trade well, Europe + 0.77%, EURUSD at 1.1370, Oil at $40.23, +2%.

Market Update – 06/04/16

daily market update

Disclaimer: This is an informal commentary by one of our Market Analysts. It should not be taken as investment advice and is made available only on that basis.
You must first read and ensure you agree to all our terms and conditions.

U.S. equities fell sharply on Tuesday to close at session lows following weakness overseas and the US Treasury’s move to limit tax inversions. (S&P 500 -1.01%)-Utilities (-188 bps) and Financials (-144 bps), Industrials (-57 bps).
ASIA: China: A share market opened lower and consolidated around 3050 after trading at early Jan highs. HK: Markets in HK finished the day a small better today even though HSBC finished -1.6% as an index heavy weight after a broker downgraded the name.
Japan: Lack of catalysts saw an unchanged open with continued retail selling Mothers -2% early after posting -6% yesterday
Pfizer decided to terminate it’s $160bn merger with Allergan, PFE will need to pay a $400m fee to Allergan for breaking the deal. New US tax moves the cause of deal breaker. Allergan fell 15% in session yesterday as market expected news, stock actually rose 55 BPs on news after close.
Valeant rose 10% yesterday on statement that they have not found any more irregularities, stock rose from a very low base though.
The Chinese government is reportedly planning an Rmb 1tr debt-to-equity swap over 3 years, essentially giving banks some breathing space.
BAML positive on US$, says ready for a short term bullish move.
US mutual fund performance data yesterday, worse quarter since 1998 for Active managers.
Shire Pharma says Baxalta deal not an ‘inversion’ deal, says will take time to study the US tax laws change.
Market says that Allergan will still get $40bn from sale of it’s generic business to Teva, may go on an acquisition spree itself.
View that Halliburton deal for Baker Hughes may fail, US anti trust officials have prepared a lawsuit to stop the merger. Baker Hughes will get a $3.5bn break up fee if it fails.
Odds of a contested Republican convention in July grow after Wisconsin primary result.
Directors and managers sold stock in Auto Trader post IPO lock up in March.
Reuters article on idea of Italian bad bank being discussed again.
Soc Gen refutes claims surrounding tax evasion activity related to Panama leak.
Some investors doubt the benefits of LSE Deutsche Boerse deal.
Crude Oil extended gains after API stats were interpreted as bullish, Brent + 1.7% at $38.5.
Glencore trades +1.3% after selling $2.5bn stake in Agriculture unit. Keeps trying to reduce it’s debt burden.
Markets trade better, +0.5%.

 

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