Europe’s Trading Tax Plan Dealt Fresh Setback

eu tax on stock trading

LONDON (CNNMoney) A controversial plan to tax European stock trading has hit another hurdle, after EU lawyers said aspects of the proposed tax are illegal. Eleven countries, including Germany, France and Spain, want to introduce a financial transaction tax, which aims to raise billions of euros from the financial services industry and deter speculative trading. But lawyers from the European Union said the tax would breach the rights of eurozone countries that don’t plan to adopt the tax. The issue is a provision that would impose the levy even if only one of the parties in a transaction is in a country where the law is in effect. Lawyers argue the provision would be “discriminatory,” according to media reports citing the document from the EU council legal service. Related: 11 EU to introduce tax on stock trades The non-binding legal opinion is the latest in a series of obstacles to delay the tax. Some cash-strapped governments in Europe are eager for new revenue sources. There is also popular pressure to make the banking industry pay a bigger share of the cost of dealing with the financial crisis. Yet most of the EU’s 28 member states oppose the tax. The most notable critic has been the U.K., Europe’s leading financial center, saying it would hurt competition, investment and growth. In April, the U.K.

Cheaper IPhone Seen Helping Crack Subsidy-Shy Europe

If Apple had hit a $350 to $400 unsubsidized price range for the iPhone 5C, as some had speculated, the company might have had a chance to expand its smartphone shipments, he said in a note. The 5C appears to be a mid-range product that cannot significantly expand the available market for the iPhone line to lower-income buyers. Second Place In German trading today, Apple slipped less than 1 percent to the equivalent of $466.85 at 9:23 a.m. in Frankfurt . The shares declined 5.4 percent to $467.71 yesterday in New York, the most in almost five months, as the new iPhones were criticized by analysts as lacking enough new features or a sufficiently low price to attract a broad range of customers. The iPhone has been in second place in Europe since at least 2009, two years after its debut. Nokia Oyj (NOK1V) dominated that year, accounting for almost half of smartphones in western Europe, according to data from Gartner. As the Espoo, Finland-based phone-maker lost market share, Samsungs Android-based devices gained dominance. Nokia, which sold its mobile-phone business to Microsoft Corp. last week for $7.2 billion, slipped from 48 percent of the western European market to 7.1 percent in 2012 as Samsung jumped from 5 percent in 2009 to 40 percent last year. Apple has gone from 17 percent four years ago to 23 percent in 2012, according to the data. 4G Compatible The new iPhone will also support the frequencies that most European carriers use to deliver 4G service. The iPhone 5, which was 4G compatible, worked on the 1,800 MHz band thats popular in the U.S. It was another story in Europe, where EE in the U.K. and Deutsche Telekom AG (DTE) s German network were among the only carriers that could sell the device with the high-speed service.

Europe Stocks Fluctuate Near Highest Level in Five Years

HSBC Sees 10-Year Gilt Yield at 2% in a Year

Vivendi SA advanced 2.7 percent after saying it will begin a formal study to separate its French phone unit from its media businesses. Home Retail Group Plc (HOME) surged 5.4 percent to a two-year high as sales exceeded projections. The Stoxx Europe 600 Index slipped less than 0.1 percent to 310.74 at the close of trading, as four stocks declined for every three that gained. The gauge climbed to the highest level since June 2008 yesterday as U.S. President Barack Obama postponed a decision on military action against Syria . The measure has soared 11 percent in 2013 as central banks around the world maintained their stimulus programs. We may have moved from the stabilization phase in Europe, but theres still a lot of work to do, said Michael Morris, head of equities at Mitsubishi UFJ Asset Management in London . The improving economic situation is not across the board and theres still areas of great concern, like unemployment. Euro-area industrial output contracted more than economists forecast in July as manufacturers struggled to shake off the legacy of a record-long recession. Factory production in the region fell 1.5 percent from June, when it gained 0.6 percent, the European Unions statistics office said today. Thats more than the 0.3 percent contraction forecast by economists, according to the median of 33 estimates in a Bloomberg survey. Awful Figures Some awful EU industrial-production figures have seriously hampered the European markets ability to head higher, Alastair McCaig, a market analyst at IG in London, wrote in e-mailed comments. Still, international investors are gaining confidence in the European economy and many see the region among the best to invest, according to the latest Bloomberg Global Poll. Forty percent of the responding investors, analysts and traders who are Bloomberg subscribers said the euro-area economy is improving, more than four times the number in May.