Investment Markets Overview — W/E 2nd September 2016

EU…“Bad Apple(s)”…have included many of America’s finest as alleged tax-cheats, including Microsoft, Amazon, Google, Starbucks Facebook, the list goes on and now includes the largest company on the planet, Apple Inc. 35-years after choosing Ireland as its European headquarters, with Apple confirming an investment of £7m to create 700 jobs (no pun intended Steve,) the EU Competition Directorate announced this week that it wished to take a $14.5BN bite out of Apple’s huge cash pile, ordering the company to pay it to Ireland’s Treasury , not as a fine but as back taxes. It is not the task of this column to debate the “rights or wrongs” of multi-nationals gaming the international tax-systems by way of “legal loopholes,” isn’t that anyway akin to say the UK MPs expenses scandal, where the guilty were united in their defence that they “abided by the rules” whilst fleecing the tax-payer. Of perhaps more interest is the “why now,” rather than at anytime during the past 14-years, the period over which the EU says the tax underpayment covers. The fact is that Governments’ and the organs of it are cash-strapped and massively indebted, hence they are on a collective tax-grab. Furthermore, combinations of ill-thought through policies such as zero and/or negative interest rates are decimating pension schemes globally, particular within the public sector, coinciding with the vast increased demand from the baby-boomer retirement bulge.

Markets were once again mega- quite for the first 4-days of this week, but then came Friday’s US non-farm payroll number and perhaps of more importance, its presumed effect on when the Fed hikes. The MS World Stock-Index gained 0.5% over the week, after advancing by 0.6% on Friday afternoon. You can do the maths:

2 Sept 2016 3

 

Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

Additional Commentaries:
•US economic data . . .
•Euro-Zone . . .
•The UK . . .
•Out East . . .
•The $US index . . .
•Within the commodities complex . . .
•Economic data due next week includes . . .

  The G20 bandwagon descended on Hangzhou, China, this weekend with the opening news snippets focussing on trade, or should we say the lack of it and the threats of even less of it? ……

Charts:
1.  Indices Weekly
2. US Ave Hours Worked V US Ave Hourly Earnings
3. UK Consumer Confidence V E-Z  Consumer Confidence
4. Japan Corp Sales V  Japan Corp Profits
5. Commodities Weekly

Table:

13 Indices, 11 columns of detailed information, for accurate analysis

                               “Facts are only useful if they involve the truth.

Click Here to view Details of the full version of this Newsletter which includes full text and detailed

 

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