The List Of Financial Transactions Tax Rates In G-20 Major Economies

Posted by David Hunkar on 25 August 2015, 2:21 am

Most major developed countries charge some of taxes on Financial Transactions. After the Global Financial Crisis(GFC) of 2008-09 some of the countries introduced new taxes in an effort to discourage rampant speculation. However the Financial Transactions Tax(FTT) has been a failure in some countries such as Sweden. The FTT varies widely between countries and also on asset classes.

The following table lists the latest FTT rates on major G-20 economies:

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Source: FINANCIAL TRANSACTION TAXES IN THEORY AND PRACTICE by Leonard E. Burman, William G. Gale, Sarah Gault, Bryan Kim, Jim Nunns, and Steve Rosenthal, June 2015 (Updated July 31, 2015), Tax Policy Center

France:

“The French President Francois Hollande has introduced a tax on financial transactions effective August 2, 2012. This tax of 0.2% applies on all stock purchases of publicly traded French companies with market capitalization of over over one billion Euros.” The list of French ADRs impacted by this tax can be found here.

The 0.2% tax rate is too high and makes French companies unattractive for global equity investors. At some point in the future, this tax rate will probably be repealed.

Italy:

Following France, Italy introduced the FTT in March 2013.

UK:

UK has had the “stamp duty” on purchase of stocks issued by British firms. This tax, first enacted in 1694, currently stands at 0.50%. This tax brings an easy £3 billion per year to the state.

US:

The FTT rate on is 0.00184 percent on sale of securities. This fee is usually deducted by brokerages from the sale proceeds.

Infographics: Top Sources Of Immigrants To The US and EU

Posted by David Hunkar on 24 August 2015, 2:11 am

Mexico is the top source of immigrants to the USA while Turkey is the top source of migrants to the EU. Turkey is a relatively well-off country compared to Morocco for example but still Turks immigrate to the EU. Though thousands of migrants from African and other poor countries pour into the EU these days in search of jobs and a better life, the reality is that most rich European countries themselves are suffering from a stagnant economy. However all the developed European countries offer liberal social benefits to all which also applies to immigrants as well. So immigrants have a chance to survive until they can get back on their feet.

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Source: Sputnik News

Knowledge is Power: Darknet, China, Belgium Edition

Posted by David Hunkar on 23 August 2015, 8:34 am

Newton Real Return: Why hold gold now? (FE Trustnet)
Is the Bull Dead? (Barry)
This week in oil: How low can it go? (Financial Post)
Darknet: The web’s black market for goods and ideas (Deutsche Welle)
5 Things Investors Shouldn’t Do Now (Jason Zweig)
What’s the deal with Belgium? (FT Alphaville)
Investors haven’t been this terrified since 2009 (MarketWatch)
China does not contribute one cent to global GDP (FT Beyondbrics)

Source: This is Money, UK

The Top Five European Utilities By Revenue

Posted by David Hunkar on 17 August 2015, 2:21 am

European utilities have been hit hard in the past few years. Many of the utilities are down significantly. For deep- value bargain hunters this sector offers opportunities at current levels. The following are the five largest European utilities (excl. U.K.) based on revenues:

1.Company: RWE AG (RWEOY)
Current Dividend Yield: 5.97%
Sector:Multi-Utilities
Five year return (excluding dividends): -73%

2.Company: E.ON SE (EONGY)
Current Dividend Yield: 4.27%
Five year return (excluding dividends): -55%
Five year return (excluding dividends):

3. Company:Electricite de France SA (ECIFY)
Current Dividend Yield: 6.30%
Country: France
Five year return (excluding dividends): -44%

4. Company: Engie (ENGIY)
Current Dividend Yield: 6.23%
Country: France
Five year return (excluding dividends): -39%

5.Company:Enel SpA (ENLAY)
Current Dividend Yield: 3.34%
Country: Italy
Five year return (excluding dividends): -0.40%

Note: Dividend yields noted above are as of Aug 14, 2015. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Here are a few points from a research report by Horizon Kinetics LLC:

While the DAX Index shot up by over 55% between Jan 2010 and Oct 2014, E.ON and RWE declined by over 55% and 59% (price wise) respectively. This is indeed surprising since the actual loss can be considered as over 100% relative to the performance of the overall market.
E.ON is the largest utility in Europe based on revenues.
GDF Suez is the largest French utility with a strong presence in the UK market.
Italy’s Enel is Europe’s third largest utility.
Compared all the above firms. Britain’s Centrica plc (CPYYY) was up by 36% during the same period. This is because, unlike the top five companies, Centrica is much more diversified including with operations in Canada and the US.

Source: Electric Utilities:Perhaps not the Investment One Expects, Horizon Kinetics LLC

Disclosure: Long EONGY, RWEOY