Latest news with #StoxxEurope600
Yahoo
a day ago
- Business
- Yahoo
European Equities Close Lower in Monday Trading; Spectris Shares Rise on Advent Bid
European stock markets closed lower Monday as the Stoxx Europe 600 dropped 0.1%, Germany's DAX 40 fe
Yahoo
a day ago
- Business
- Yahoo
Stock investors rejoice over China trade talks — and weak labor market data
S&P 500 futures edged up slightly this morning, reflecting cautious optimism among investors. Asian markets mostly rose while European markets were flat in early trading. Investor sentiment is being buoyed by U.S.-China trade talks in London and downward revisions to U.S. payroll estimates—suggesting the Fed may consider cutting interest rates later this year, a move typically supportive for stocks. S&P 500 futures traded up marginally this morning after most Asian markets rose and Europe stayed flat in early trading. Investors appear to be focused on two things which are both good for stocks: U.S.-China trade talks are happening in London today, offering some hope that tariff rates might eventually be lowered. Early signs of weakening U.S. labor market data indicate that the U.S. Federal Reserve may be tempted to cut interest rates later this year—and low rates are generally good for stocks. In the labor market data, analysts noted that there has been a series of downward revisions to initial payroll estimates, which indicates that the hard data is weakening even though the U.S. economy is still holding up well. 'Mr. Trump is right; the labor market will need substantial Fed easing soon,' Pantheon Macroeconomics' Samuel Tombs and Oliver Allen told clients in a research note. 'The pattern of downward revisions to initial estimates of payrolls has re-emerged with a vengeance.' At Daiwa Capital Markets, Lawrence Werther and Brendan Stuart said something similar: The Fed will take note of 'large downward revisions to recent payroll growth, disappointing data from the household survey obscured somewhat by a stable, low unemployment rate, and a pickup in layoffs, to name a few. Again, these are only a subset of the employment statistics – and in our view they do not portend an immediate collapse in hiring – but they do keep ajar the door to cuts later this year,' they said in a note seen by Fortune. And then there is government spending. Growth in fiscal spending is likely to slow, according to JPMorgan. That could also tempt the Fed to lower interest rates in order to make money cheaper. 'A less appreciated slowdown in US government spending and tightening in immigration policy are set to weigh on the expansion. … These policy shifts are largely a US story and are reflected in our forecast that a period of sustained above-potential US growth is over. However, this will also weigh on global growth,' Bruce Kasman and his team told clients. Here's a snapshot of the action prior to the opening in New York this morning: S&P 500 futures traded up marginally this morning. The index itself closed above 6,000 on Friday, re-achieving a level it last saw in February. It's up 2% YTD. The Stoxx Europe 600 and the UK's FTSE 100 were both flat in early trading. Hong Kong's Hang Seng closed up 1.63% this morning. South Korea's Kospi was up 1.55%. Japan's Nikkei 225 was up 0.92%. China's Composite was up 0.43%. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
a day ago
- Business
- CNBC
Why the U.S. tax bill's Section 899 could push European firms to list in the U.S.
The decision by U.K. fintech firm Wise to move its primary stock listing to the U.S. is the latest in a series of blows to the London market — and a new provision tucked inside a U.S. tax bill could make things even worse. Section 899 of President Donald Trump's spending bill, which passed the House of Representatives in May, threatens to penalize foreign-owned firms domiciled in countries with "unfair foreign taxes," and experts say it could accelerate the trend for European companies to hop the pond. The provision introduces retaliatory tax measures against corporations and other entities from countries that have levies such as the Digital Services Taxes and the OECD's global minimum tax rules. The list of affected nations would include most European Union members, the United Kingdom, Canada, Australia, and Switzerland, among others. For publicly traded companies, Section 899 imposes a new withholding tax on U.S.-sourced income for any foreign corporation that is more than 50% owned by non-U.S. entities. The tax would start at 5% and escalate by five percentage points annually to a maximum of 20%, on top of existing taxes, which vary by country and tax treaties. That could dent earnings for companies in the Stoxx Europe 600 index, for instance, by up to 2% in the first year, and as much as 5% over four years, according to Goldman Sachs analysts. How can European firms avoid Section 899? The Wall Street bank has identified a U.S. re-listing as one of many measures that companies could take if the bill becomes law. A listing in the U.S. would provide a direct path to increasing a company's base of American investors, according to Goldman. This would help companies push their non-U.S. ownership below the critical 50% threshold, taking them out of Section 899's scope. While there are many U.K. companies with high exposure to the U.S. with a majority-U.S. shareholder base, Goldman Sachs identified consumer credit rating firm Experian and Hikma Pharmaceuticals , among others, as two FTSE 100 companies with more than half their group revenues in the U.S. but falling below the 50% threshold for U.S. ownership. The Wall Street bank suggested that such companies could use a U.S. listing as one avenue to avoid taxes imposed by Section 899. Tax experts cautioned that to avoid the impact of Section 899, it would require significantly more work than simply relisting in the U.S. with an attempt to gain U.S. shareholders. "I'm not sure that listing alone would be sufficient," said a senior executive at a large European firm with extensive operations in the U.S., who asked not to be named as they were not authorized to comment on the issue. "The proposed language [in the bill] includes a vote or value test for U.S. ownership, including publicly traded companies, and seems to say that if a company [falls under Section 899 tax] for even one day then it is for the year." The executive also questioned whether companies will be able to identify beneficial owners — or the actual owners that control a business — "with any degree of confidence." That's because the tax bill includes "a look-through concept" — which means U.S. fund managers investing on behalf of foreign clients would not count toward the exemption requirements. "The monitoring [of the shareholder register] alone would be resource intensive," the executive added. Others point out that if European governments dropped what Trump calls their "unfair foreign tax" policies, their companies would automatically be exempted from 899. "Hill Republicans see section 899 not as a revenue-generating measure, but as a tool that gives the Treasury Department additional leverage in negotiations with other countries to encourage changes in behavior," Pat Brown, a tax expert at the consultancy PwC U.S., told CNBC. "Foreign-headquartered companies considering changes in their capital structure to reduce the impact of section 899 would need to consider that the government of their home country could, with the stroke of a pen, eliminate the need to consider section 899 as an issue," Brown added. Exacerbating a corporate-migration trend Goldman Sachs also highlighted that Section 899 could also act as a powerful incentive to a corporate migration trend that is already underway. For years, European and U.K. companies have felt disadvantaged by their home markets, a sentiment that has led to a steady flow of buyouts and re-listings elsewhere. Companies have repeatedly pointed to the valuation discount that European equities suffer compared to their U.S. peers to justify their decisions to move their listing to the U.S. Wise debuted on London's stock market in 2021 in a direct listing that valued the company at £8 billion ($10.84 billion) at the time. It is now valued at £11.07 billion, according to LSEG data. Since then, London has been mired in doubts over whether it can play host to major tech listings. The market is often criticized for lacking the depth of liquidity and industry expertise from investment analysts to accommodate such transactions. Doubts over London's stock market haven't been limited to tech, though. Last week, Glencore -backed metals investor Cobalt Holdings announced it was scrapping plans to go public in London. The IPO was expected to be the largest listing in the U.K. capital since early 2024. A spokesperson for London Stock Exchange Group (LSEG) told CNBC last week that London remains the top European exchange in terms of capital raised and the total market cap of the companies listed. They added that they had seen a "noticeable increase in interest from international companies in coming to London with many starting to prepare." — CNBC's Ryan Browne contributed reporting.
See - Sada Elbalad
5 days ago
- Business
- See - Sada Elbalad
ECB Cut Interest Rates by 25 basis-point to 2.00%
Taarek Refaat The European Central Bank (ECB) announced Thursday an interest rate cut by 25 basis points to the interest rate of deposit facility to 2%, down from its highest level in mid-2023 of 4%. 'The decision to cut the deposit facility interest rate – the rate at which the Board directs monetary policy – is based on its updated assessment of inflation expectations, the dynamics of core inflation, and the strength of the impact of monetary policy,' the European Central Bank said in a statement. The eurozone's inflation rate fell below the European Central Bank's target of 2% in May, recording 1.9%, a lower-than-expected level, according to preliminary data released earlier this week. However, economic growth continued to slow even as interest rates eased. The latest estimates show that the eurozone expanded by 0.3% in the first quarter of 2025. The central bank's decision comes at a critical time for the eurozone economy, as companies and policymakers face growing uncertainty in the wake of escalating geopolitical tensions. According to CNBC, the European stock markets closed higher after the ECB's decision to cut rates by 25 basis points. 'The Stoxx Europe 600 index closed up 0.9%, the U.K.'s FTSE 100 rose by 0.1% and Germany's DAX was higher by 0.2%. Meanwhile, France's CAC 40 was the only major benchmark to fall 0.2%,' CNBC wrote. US President Donald Trump's tariff policy is a major concern, as tariffs are expected to significantly affect economic growth. Certain sector-specific tariffs could severely damage Europe, where key industries such as steel and automobiles are affected. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream
Yahoo
5 days ago
- Business
- Yahoo
Wall Street Exodus? Why Big Money Is Quietly Fleeing the US Market
Institutional investors are starting to step back from the United States. Between Washington's mounting debt pile, shifting trade policies, and general unpredictability, the case for having a concentrated US portfolio is no longer a given. AllianceBernstein CEO Seth Bernstein put it bluntly: the pace of US borrowing is untenable. The dollar has already dropped nearly 9% this year, and a recent Bank of America fund manager survey showed the largest underweight in the greenback in almost 20 years. For some investors, it's no longer just about tariffsit's about whether the decades-long dominance of US markets is beginning to wobble. Warning! GuruFocus has detected 2 Warning Sign with AMZN. Meanwhile, Europe's looking more like a viable alternative. The Stoxx Europe 600 is up 9% this year, well ahead of the S&P 500's (SPY) modest gains. Neuberger Berman has already shifted 65% of its private equity co-investments to Europemore than double its previous range. Blackstone vice chair Tom Nides said the math is getting clearer: Shifting money to Europe is certainly not a bad bet. Germany's 1 trillion infrastructure and defense plan could add some fuel, especially as European governments project a steadier macro backdrop than Washington can currently offer. The continent still has its challenges, but for now, it's offering something the US isn'tpredictability. Even long-time US investors are quietly pulling back. Caisse de depot et placement du Quebec, which had 40% of its portfolio in US assets, is moving more capital to the UK, France, and Germany. Tesla (NASDAQ:TSLA) and other American heavyweights may still anchor global portfoliosbut the question being asked across boardrooms is different now: are we overexposed? For the first time in years, investors are running that calculation with fresh eyes. And while no one's calling time on the US just yet, the idea of global rebalancing? It's not just talk anymore. This article first appeared on GuruFocus.
