There are claims that the UK Labour Party’s plans to change tax policy relating to non domiciled tax residents of the UK could spark an exodus of leading entrepreneurs and business figures.
Labour leader, Ed Milliband has pledged that if elected he will end the regime which allows people who are resident in the UK but who are not domiciled for tax purposes there, to avoid paying tax on their income outside the UK.
According to The Telegraph, leading tax barristers have warned that up to 30,000 of Britain’s 150,000 resident but non-domiciled business leaders could leave the country as a result.
It is suggested, in that event many might come to Ireland which, like the UK, currently does not levy tax on income outside the country for people who live here but who are not domiciled here for tax purposes.
______________________________________________________________
The minutes from the latest Federal Open Market Committee (FOMC) meeting suggest that the Fed is split on when and why it will be appropriate to raise interest rates.
The relevant passage reads: "Several participants judged that the economic data and outlook were likely to warrant beginning normalisation at the June meeting. However, others anticipated that the effects of energy price declines and the dollar's appreciation would continue to weigh on inflation in the near term, suggesting that conditions likely would not be appropriate to begin raising rates until later in the year, and a couple of participants suggested that the economic outlook likely would not call for liftoff until 2016."
In this one paragraph three different stances are outlined on a potential interest rate hike.
______________________________________________________________
The head of the International Monetary Fund, Christine Lagarde says that she has received confirmation from Greek finance minister, Yanis Varoufakis that Greece will make its €458m repayment to the organisation later today.
In recent weeks there has been speculation that shortly after this payment is made the country will run out of money - but the Greeks have managed to raise €1.14bn in six-month treasury bills to keep itself afloat.
PM Alexis Tsipras met with Russian president Vladimir Putin yesterday - both sides say that the possibility of Russia offering financial aid to Greece was not discussed.
______________________________________________________________
Global crude oil prices suffered their sharpest falls in two months yesterday following a report that US stocks of oil have risen to their highest levels in more than 30 years.
The price of Brent Crude oil, which sets the global benchmark price fell by $3.55 or 6 percent yesterday to $55.5 dollars per barrel.
The current oil glut, which impacted on the price yesterday, was underpinned by news that Saudi Arabia, the world’s largest producer had raised its production of crude oil to a record 10.3m barrels per day in March.
Analysts say the price we’ll pay at the pumps over the coming months will depend on whether crude oil prices remain at these lower levels and on the strength of the dollar, the currency in which oil is traded.
______________________________________________________________
Switzerland yesterday became the first country to issue 10-year bonds with a negative yield or interest payment.
This means - at the price that the near 400m Swiss Franc bond was issued yesterday - investors will actually pay the Swiss Government 0.5 percent in interest payments on their bonds every six months of its ten-year term.
It is believed that this development was triggered by quantitative easing, the current massive bond-buying exercise being carried out by the European Central Bank, which is driving the yield or interest payment on bonds to record low levels.
It’s also a function of negligible returns on other investment options such as bank deposits. The current Swiss National Bank’s overnight deposit rate is minus 0.75 percent, offering some logic for the minus 0.5 percent payments yesterday’s bond buyers will have to pay.
______________________________________________________________
Mylan, one of the world’s largest generic drugs groups has launched a $28.9bn takeover bid for Dublin-based Perrigo, which manufactures cough medicines and allergy remedies.
Perrigo acquired the former Athlone-based bio-tech company Elan two years ago to move its tax domicile to Ireland, though its Head Quarters is still in Michigan.
Mylan’s cash and share offer is pitched at a 25 percent premium to Perrigo’s closing share price last Friday.
Commentators believe Mylan published details of the offer because the board of Perrigo may already have rejected it.
