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| EU orders Apple to pay up to €13bn in Irish taxes - as it happened | |
| (about 1 hour later) | |
| 6.10pm BST | |
| 18:10 | |
| FTSE falters but European markets move higher | |
| It was a mixed day for stock markets, with the FTSE 100 returning after the Bank Holiday weekend with an uncertain performance. Dragged down by mining shares, it ended the day marginally lower. Elsewhere though, European markets ended the day in positive territory, even shrugging off an early fall on Wall Street. | |
| Following the EU demand that Apple pay €13bn in Irish taxes, the US technology group has seen its shares dip 0.6%, helped drag the Dow Jones Industrial Average down 56 points or 0.3%. The closing scores in Europe showed: | |
| On that note it’s time to close for the evening. Thanks for all your comments, and we’ll be back tomorrow. | |
| 5.05pm BST | 5.05pm BST |
| 17:05 | 17:05 |
| The US has said it is concerned about Europe’s unilateral approach over international taxation in the wake of the Apple decision, according to Reuters. | The US has said it is concerned about Europe’s unilateral approach over international taxation in the wake of the Apple decision, according to Reuters. |
| The White House said if the Europeans have concerns about taxation, they should work jointly with the US. It added that the Apple ruling could hurt the US by allowing the company to deduct European tax payments from US taxes. | The White House said if the Europeans have concerns about taxation, they should work jointly with the US. It added that the Apple ruling could hurt the US by allowing the company to deduct European tax payments from US taxes. |
| 4.28pm BST | 4.28pm BST |
| 16:28 | 16:28 |
| Former Finnish finance minister Alexander Stubb has weighed in on the Apple debate: | Former Finnish finance minister Alexander Stubb has weighed in on the Apple debate: |
| Interesting to see how this Apple tax-case will unravel. A multitude of angles and paradoxes involved. An ex of globalisation in action. | Interesting to see how this Apple tax-case will unravel. A multitude of angles and paradoxes involved. An ex of globalisation in action. |
| 4.26pm BST | 4.26pm BST |
| 16:26 | 16:26 |
| More from Irish finance minister Michael Noonan. Speaking to CNBC he said: | More from Irish finance minister Michael Noonan. Speaking to CNBC he said: |
| Apple paid all the tax that was due for their activities in Ireland. The OECD who have been at the forefront of reforming corporation tax say the tax should apply where the economic activity occurs, which generates the profit. | Apple paid all the tax that was due for their activities in Ireland. The OECD who have been at the forefront of reforming corporation tax say the tax should apply where the economic activity occurs, which generates the profit. |
| Now, on my...the back of my Aplle iPhone, it says, designed in California, manufactured in China. So I can’t see how the Irish authorities would have a tax liability for economic activity, that takes place in other juridictions.... | Now, on my...the back of my Aplle iPhone, it says, designed in California, manufactured in China. So I can’t see how the Irish authorities would have a tax liability for economic activity, that takes place in other juridictions.... |
| We stand by the legitimacy of what was done in the past. Nobody did a deal with Apple and we stand over that. Secondly, we think the commission is getting involved in what is the competence of sovereign governments in Europe. The Europe treaties say that individual countries are responsible for taxation policy. And this is an approach through the back door, to try and influence tax policy, through competition law, and we don’t agree with that. But more importantly we think they’re in breach of international tax practice, where tax liability follows economic activity, and the economic activity on which they’re raising the tax assessment in Ireland, did not occur in Ireland. | We stand by the legitimacy of what was done in the past. Nobody did a deal with Apple and we stand over that. Secondly, we think the commission is getting involved in what is the competence of sovereign governments in Europe. The Europe treaties say that individual countries are responsible for taxation policy. And this is an approach through the back door, to try and influence tax policy, through competition law, and we don’t agree with that. But more importantly we think they’re in breach of international tax practice, where tax liability follows economic activity, and the economic activity on which they’re raising the tax assessment in Ireland, did not occur in Ireland. |
| 4.07pm BST | 4.07pm BST |
| 16:07 | 16:07 |
| Apple shares are currently down just under 1% following the EU tax ruling ordering the company to pay back up to €13bn in Irish taxes, helping push the Dow Jones Industrial Average 0.25% lower. Jasper Lawler, market analyst at CMC Markets, said: | Apple shares are currently down just under 1% following the EU tax ruling ordering the company to pay back up to €13bn in Irish taxes, helping push the Dow Jones Industrial Average 0.25% lower. Jasper Lawler, market analyst at CMC Markets, said: |
| The risk for Ireland is that by taking €13bn from Apple, there will be a mass exodus of American firms and a resulting loss of jobs and investment. | The risk for Ireland is that by taking €13bn from Apple, there will be a mass exodus of American firms and a resulting loss of jobs and investment. |
| Nobody would dispute that corporations need to pay their fair share of tax, but a retroactive cash-grab creates uncertainty and could impact investment in Europe. | Nobody would dispute that corporations need to pay their fair share of tax, but a retroactive cash-grab creates uncertainty and could impact investment in Europe. |
| Apple’s troubled tax situation will cast a long shadow over the revenue-boosting hopes of [its] new product launch on September 7. | Apple’s troubled tax situation will cast a long shadow over the revenue-boosting hopes of [its] new product launch on September 7. |
| 3.38pm BST | 3.38pm BST |
| 15:38 | 15:38 |
| Meanwhile Apple-supplier ARM is set to complete its £24bn takeover by Japan’s SoftBank after its shareholders voted overwhelmingly to back the bid. | Meanwhile Apple-supplier ARM is set to complete its £24bn takeover by Japan’s SoftBank after its shareholders voted overwhelmingly to back the bid. |
| At a court meeting, scheme shareholders voted 95.12% in favour of the deal, while a general meeting later saw 94.92% of votes cast by ordinary shareholders also backing the takeover. | At a court meeting, scheme shareholders voted 95.12% in favour of the deal, while a general meeting later saw 94.92% of votes cast by ordinary shareholders also backing the takeover. |
| 3.25pm BST | 3.25pm BST |
| 15:25 | 15:25 |
| Back with Apple, and Ireland needs the US technology group more than the other way round, according to Brad Badertscher, professor of accountancy at the University of Notre Dame’s Mendoza College of Business: | Back with Apple, and Ireland needs the US technology group more than the other way round, according to Brad Badertscher, professor of accountancy at the University of Notre Dame’s Mendoza College of Business: |
| I think this will have significant effects on Ireland and the rest of the EU countries. Apple will appeal the ruling and likely pay the taxes many years from now and Apple will do fine going forward but Ireland relies upon Apple for tax revenue (obviously the EU wants them to collect more but at some point more causes Apple to leave and that is likely to happen). | I think this will have significant effects on Ireland and the rest of the EU countries. Apple will appeal the ruling and likely pay the taxes many years from now and Apple will do fine going forward but Ireland relies upon Apple for tax revenue (obviously the EU wants them to collect more but at some point more causes Apple to leave and that is likely to happen). |
| Ireland needs Apple more than Apple needs Ireland. Many EU countries used low tax rates to attract large (often US) multinational firms. This door is now closing very quickly and the countries themselves are not happy that the EU is imposing such rules. One of the reasons the UK left the EU was because of the ever increasing power of the EU and this is another example of that power. | Ireland needs Apple more than Apple needs Ireland. Many EU countries used low tax rates to attract large (often US) multinational firms. This door is now closing very quickly and the countries themselves are not happy that the EU is imposing such rules. One of the reasons the UK left the EU was because of the ever increasing power of the EU and this is another example of that power. |
| 3.18pm BST | 3.18pm BST |
| 15:18 | 15:18 |
| The strong US consumer confidence figures come despite concerns about the global economy, says Dennis de Jong, managing director of UFX.com, but this may not last: | The strong US consumer confidence figures come despite concerns about the global economy, says Dennis de Jong, managing director of UFX.com, but this may not last: |
| The slight uptick in US consumer confidence for August will have surprised many. Considering the growing global uncertainty on the financial markets, Fed Chair Janet Yellen should be very happy with the results. | The slight uptick in US consumer confidence for August will have surprised many. Considering the growing global uncertainty on the financial markets, Fed Chair Janet Yellen should be very happy with the results. |
| On the whole, the US consumer has remained a robust proposition within an international context of weakening demand, and the positive data may put the long-speculated interest rate hike further up Yellen’s agenda. | On the whole, the US consumer has remained a robust proposition within an international context of weakening demand, and the positive data may put the long-speculated interest rate hike further up Yellen’s agenda. |
| The real test, however, is whether this confidence begins to waver as we enter what will surely be the most contentious US presidential race in living memory. | The real test, however, is whether this confidence begins to waver as we enter what will surely be the most contentious US presidential race in living memory. |
| Updated | Updated |
| at 3.18pm BST | at 3.18pm BST |
| 3.10pm BST | 3.10pm BST |
| 15:10 | 15:10 |
| Lynn Franco, director of economic indicators at the Conference Board, said: | Lynn Franco, director of economic indicators at the Conference Board, said: |
| Consumer confidence improved in August to its highest level in nearly a year, after a marginal decline in July. Consumers’ assessment of both current business and labor market conditions was considerably more favorable than last month. Short-term expectations regarding business and employment conditions, as well as personal income prospects, also improved, suggesting the possibility of a moderate pick-up in growth in the coming months. | Consumer confidence improved in August to its highest level in nearly a year, after a marginal decline in July. Consumers’ assessment of both current business and labor market conditions was considerably more favorable than last month. Short-term expectations regarding business and employment conditions, as well as personal income prospects, also improved, suggesting the possibility of a moderate pick-up in growth in the coming months. |
| 3.04pm BST | 3.04pm BST |
| 15:04 | 15:04 |
| US consumer confidence stronger than expected | US consumer confidence stronger than expected |
| More positive US economic data, with August consumer confidence figures coming in better than expected. | More positive US economic data, with August consumer confidence figures coming in better than expected. |
| According to the Conference Board, the consumer confidence index rose from 96.7 in July to 101.1, better than the 97 forecast and the highest level since September 2015. | According to the Conference Board, the consumer confidence index rose from 96.7 in July to 101.1, better than the 97 forecast and the highest level since September 2015. |
| USA Consumer Confidence announcement - Actual: 101.1, Expected: 97.0 pic.twitter.com/NziWWkavwv | USA Consumer Confidence announcement - Actual: 101.1, Expected: 97.0 pic.twitter.com/NziWWkavwv |
| Updated | Updated |
| at 3.11pm BST | at 3.11pm BST |