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Daily Review 31.08.2016

EU bites into Apple as huge tech firm charged with $14 billion Irish tax

The European Commission said on Tuesday that Ireland must recover up to $14.6 billion (13 billion euros) from unpaid taxes accumulated over many years by Apple Inc.

The Commission’s investigation concluded that the Irish government has granted illegal state aid to Apple which gave the firm the benefit of paying less tax than other business for more than a year and questioned the 0.005% tax rate for the huge tech company in 1991 and 2007.

Apple stocks initially fell 3% after the report but recovered the losses slightly as it closed 1% lower in the session.

The EU agency has ordered Starbucks to pay 30 million euros ($30 million) to Dutch State regarding the same activity while the Inc. and McDonald’s Corp are under probe by the Commission.

US stocks slides, dollar hits near two-week high on Fed rate hike worries, job reports

US stocks indices rolled down while dollar remained bullish on Tuesday as reports on US consumer confidence added concerns on a potential Federal Reserve rate hike and investors await job data set for release this Friday.

The Dow Jones industrial average .DJI fell 65.3 points, or 0.35%, settling at 18 437.69. The energy stock S&P 500 dropped 6.12 points, or 0.28%, finishing at 2 174.26 while then NASDAQ Composite .IXIC lost 16.63 points, or 0.32%, closing at 5 215.69.

The three major US indices were dragged down by the 1% fall in utilities and the decline in technology stocks after European Commission hit iPhone maker Apple Inc. with $14.6 billion tax bill.

Meanwhile, the US dollar logged to its two-week high against major counterparts as dollar index .DXY was up 0.56% to close at 96.11.

The greenback surged 1.13% against the Japanese yen to close at 103.10, the highest since July 29. Against sterling, it was up 0.3%, trading at $1.3090 while the euro was trading below 1.12.

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