Tuesday, September 23, 2014

Australian Equities Market

THIS MORNING

In Australia, weekly consumer confidence data is released. In the US, Europe and China, "flash" manufacturing gauges are released. In the US, the Richmond Fed index is released with the monthly home price index and weekly chain store sales.

OVERNIGHT MARKETS

US Equities

US sharemarkets weakened in line with other global sharemarkets on Monday. Investors fretted about the health of the Chinese economy and how aggressive the US Federal Reserve will be in lifting interest rates in 2015. And a fall in existing home sales weighed on housing stocks. The Dow Jones index fell by 107 points or 0.6%. The broader S&P 500 index fell by 0.8% while the Nasdaq lost 52 points or 1.1%.

* US long-term treasury prices rose again on Monday (yields lower) after the Chinese finance minister indicated that the country wouldn't rush to stimulate growth. US 2 year yields were down 1 point to 0.549% while US 10 year yields were down by 1 point to 2.564%.

* Major currencies were weaker against the greenback over the European and US sessions on Monday but finished off the lows. The Euro fell from highs near US$1.2865 to around US$1.2815, ending US trade near the US$1.2845. The Aussie dollar fell from highs nearUS89.15c to lows around US88.55c before ending the US session near US88.75c. But the Japanese yen weakened from 108.78 yen per US dollar to JPY109.15, before reversing course and ending US trade near JPY108.78.

World oil prices were lower on Monday in response to ample world oil supplies, concerns about a prolonged slowdown of the Chinese economy and a stronger greenback. Brent crude fell by US$1.42 or 1.4% to US$96.97 a barrel with the US Nymex price down by US89c a barrel or 1.0% to US$91.52 a barrel.

* Base metal prices were lower on Monday, falling up to 4.2%, led by nickel. But aluminium prices were unchanged. Gold prices edged above 9-month lows on Monday with the Comex gold futures quote higher by US$1.30 an ounce or 0.6% to US$1,217.90 per ounce. Iron ore fell by US$1.90 or 2.4% on Friday to US$79.80 a tonne.

YESTERDAY'S MARKET

Local Markets Update.

This news story is reprinted from au.ibtimes.com

Read more details on Australian Stock Market

Australian Equities Market

THIS MORNING

In Australia, weekly consumer confidence data is released. In the US, Europe and China, "flash" manufacturing gauges are released. In the US, the Richmond Fed index is released with the monthly home price index and weekly chain store sales.

OVERNIGHT MARKETS

US Equities

US sharemarkets weakened in line with other global sharemarkets on Monday. Investors fretted about the health of the Chinese economy and how aggressive the US Federal Reserve will be in lifting interest rates in 2015. And a fall in existing home sales weighed on housing stocks. The Dow Jones index fell by 107 points or 0.6%. The broader S&P 500 index fell by 0.8% while the Nasdaq lost 52 points or 1.1%.

* US long-term treasury prices rose again on Monday (yields lower) after the Chinese finance minister indicated that the country wouldn't rush to stimulate growth. US 2 year yields were down 1 point to 0.549% while US 10 year yields were down by 1 point to 2.564%.

* Major currencies were weaker against the greenback over the European and US sessions on Monday but finished off the lows. The Euro fell from highs near US$1.2865 to around US$1.2815, ending US trade near the US$1.2845. The Aussie dollar fell from highs nearUS89.15c to lows around US88.55c before ending the US session near US88.75c. But the Japanese yen weakened from 108.78 yen per US dollar to JPY109.15, before reversing course and ending US trade near JPY108.78.

World oil prices were lower on Monday in response to ample world oil supplies, concerns about a prolonged slowdown of the Chinese economy and a stronger greenback. Brent crude fell by US$1.42 or 1.4% to US$96.97 a barrel with the US Nymex price down by US89c a barrel or 1.0% to US$91.52 a barrel.

* Base metal prices were lower on Monday, falling up to 4.2%, led by nickel. But aluminium prices were unchanged. Gold prices edged above 9-month lows on Monday with the Comex gold futures quote higher by US$1.30 an ounce or 0.6% to US$1,217.90 per ounce. Iron ore fell by US$1.90 or 2.4% on Friday to US$79.80 a tonne.

YESTERDAY'S MARKET

Local Markets Update.

This news story is reprinted from au.ibtimes.com

Read more details on Australian Stock Market

Consumer Confidence On The Rise: ANZ

Consumer confidence continues to go from strength to strength with rising property prices expected to boost household spending in the year ahead.

Confidence rose 1.4 per cent last week to 112.9, according to the ANZ-Roy Morgan consumer confidence survey.

The figures show confidence is now at its long-run average level, with consumers having shaken off the negative sentiment from the federal budget.

ANZ chief economist Warren Hogan said the figures were consistent with household spending growing moderately in 2014.

He said rising house prices would support consumer confidence and spending next year.

"While we expect soft income growth to weigh on consumer confidence and spending going into 2015, this should be offset to some extent by wealth effects from rising house prices," Mr Hogan said.

This news story is reprinted from www.businessspectator.com.au

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Big Firms Urged To Pay Fair Tax Share

MULTINATIONAL companies are being urged to come clean on international tax avoidance ahead of measures being developed for the world’s largest economies to stop profits being shifted to low- and no-tax jurisdictions.

Organisation for Economic Co-operation and Development tax director Pascal Saint-Amans said the new rules would mean companies would no longer be able to get away with double non-taxation of international activities and other abuses, and had widespread support within the G20 group, which has made reform of international taxation one of its top priorities.

“We are delivering major changes and I can tell you it is time for companies to anticipate the implementation of the BEPS (base erosion and profit shifting) package,’’ Mr Saint-Amans said.

“We won’t have to wait for all countries to translate it into domestic legislation because if companies are smart — and they are smart — they know the new rules and they can revise their planning to be in accordance with the new rules.

G20 finance ministers meeting in Cairns over the weekend agreed on new rules for information sharing that will see foreign investors opening bank accounts reported back automatically to their country of residence.

Voluntary disclosures by individuals in 20 OECD countries had netted €37 billion ($54bn) in additional tax ahead of the new information sharing agreements, Mr Saint Amans said.

Australia’s Tax Commissioner Chris Jordan said on the weekend that information sharing agreements allowed the ATO to reap an additional $480 million in tax revenue, whilst over 500 taxpayers have made voluntary disclosures of over $100 million in previously unreported offshore income.

The OECD has put forward a 15-point reform program over two years to combat moves by companies such as Apple, Google and Starbucks to pay little or no tax in countries such as Australia despite earning billions in revenue. “It means that under the new rules double non-taxation is no longer an option,’’ Mr Saint-Amans said.

“Companies will pay taxes where they sell goods, where they make profits, where they have activities, and the new set of rules are designed to make sure that all of the countries are equipped ... while ensuring that there is not double taxation.”

Mr Saint-Amens told a forum at accountants PwC in Sydney yesterday that the BEPS project was not anti-business or investment, but would help restore trust between business and governments.

Since the GFC many governments around the world had been forced to lift income and consumption tax rates to cover revenue lost to tax avoidance by companies.

Some companies were more supportive than others of efforts for reform the tax system, with US companies and technology companies among the most aggressive in their tax planning and opposed to the reform program.

PwC managing partner for tax and legal, Tom Seymour, said Australia could also grow the tax base by cutting the corporate tax rate from 30 per cent to 25 per cent in a bid to attract and retain more companies to operate in Australia.

Mr Seymour said a cut of that size would add 6.3 per cent or $590bn to Australian gross domestic product by 2050 — or around $16bn a year. “Tax competition between countries will always exist as nations will always fight to attract capital and jobs.

“Ensuring our tax system collects revenue in the most efficient way will make our nation more competitive and attract more business and trade to our shores,’’ Mr Seymour said.

The OECD previously found that there was a 2 per cent long-term gain in GDP from a 1 per cent revenue base shift away from company tax to indirect taxes.

This news story is reprinted from www.theaustralian.com.au

Read more details on Taxation Accountants.

Monday, September 22, 2014

Australian Equities Market

THIS MORNING

In Australia, the CBA Business Sales index is released. In the US, data on existing home sales is released with the National Activity Index.

OVERNIGHT MARKETS

US Equities

US sharemarkets were mixed on Friday. Shares in Alibaba soared by 38% on the IPO price to US$93.89 a share. But shares in Oracle fell by 4.2% while Yahoo lost 2.7%. The Dow Jones index rose by almost 14 points or 0.1%. The broader S&P 500 index fell by 0.1% while the Nasdaq lost almost 14 points or 0.3%. Over the week the Dow Jones rose by 1.7%, the S&P 500 gained 1.3% while the Nasdaq edged higher by 0.3%.

* US long-term treasury prices rose on Friday (yields lower) as bargain hunters moved in, with investors analysing the timing of future moves to tighten monetary policy. US 2 year yields were flat at 0.569% while US 10 year yields were down by 4 points to 2.578%. Over the week US 2 year yields rose by 1.3 points while US 10 year yields fell by 2.5 points.

* Major currencies were generally lower against the greenback over the European and US sessions on Friday. The US dollar index rose for the 10th straight week. The Euro fell from near US$1.2910 to around US$1.2930, ending US trade near the day's lows. The Aussie dollar fell from highs near US89.95c to lows around US89.20c before ending the US session near US89.25c. And the Japanese yen held between 108.57 yen per US dollar and JPY109.24, ending US trade near JPY109.01.

* World oil prices were mixed on Friday. Plentiful world oil supplies of crude and upcoming contract expiry weighed on the Nymex crude price. But talk of a cut-back of oil production by OPEC members supported Brent crude. On Friday Brent crude rose by US69c or 0.7% to US$98.39 a barrel with the US Nymex price down by US66c a barrel or 0.7% to US$92.41 a barrel. Over the week Brent rose by US$1.28 or 1.3% with the Nymex price up by US14c or 0.2%.

* Base metal prices were mixed on Friday with gains and losses not exceeding 0.7%. Over the week metal prices fell up to 3.4%, led by nickel. But copper bucked the trend, up 0.3%. Gold prices fell to a nine-month low on Friday with the Comex gold futures quote lower by US$7.80 an ounce or 0.6% to US$1,219.10 per ounce. Over the week gold fell by US$12.10 an ounce or 1.0%. Iron ore fell by US$1.30 or 1.6% on Friday to US$81.70 a tonne. Over the week iron ore fell by US30c a tonne.

This news story is reprinted from au.ibtimes.com

Read more details on Australian Stock Market