Daimler, Barclays and European Corps Lift Outlook on U.S. Tax Revisions

Sarla Buch
27 Dec, 2017
New York City

Barclays will write-down $1.3 billion from the U.S. tax bill. Daimler lifted 2017 profit estimate after recent tax reform in the U.S. IWG stock surged after confirming takeover bid. Royal Dutch Shell said U.S. tax reform will be favorable to the group.

[R]4:00 PM Frankfurt – Barclays will write-down $1.3 billion from the U.S. tax bill. Daimler lifted 2017 profit estimate after recent tax reform in the U.S. IWG stock surged after confirming takeover bid. Royal Dutch Shell said U.S. tax reform will be favorable to the group.[/R]

In London trading, FTSE 100 index increased 28.17 or 0.4% to 7,620.69 and in Frankfurt the DAX index slid 12.76 to 13,060.03.

In Paris, CAC 40 index edged up 1.49 to 5,366.20.

Barclays Plc gained 0.2% to 202.50 pence after the U.K.-based banking and financial services provider estimated to write-down £1 billion or $1.3 billion on its annual net profit as a result of the recent U.S. tax reforms.

The reform will lead the lender to reduce the value of its deferred tax assets and the ultimate impact is subject to the effect of other complex provisions in the Act.

“Due to the uncertain practical and technical application of many of these provisions, it is currently not possible to reliably estimate whether BEAT will apply and if so, how it would impact Barclays,” today the bank said in the statement.

Daimler AG rose 0.1% to €71.38 after Germany-based luxury automaker said the recent federal corporate tax reforms in the U.S. will boost profits in fiscal 2017 to €1.7 billion.

IWG Plc surged 28.6% to 257.50 pence after Jersey-based office workspace provider today confirmed it had received takeover bid from Canada-based private equity firm Onex Corporation and Brookfield Asset Management, Inc.

Royal Dutch Shell Plc increased 0.8% to 2,491.50 pence after the U.K.-based oil and gas producer said the U.S. tax reform will be """"favorable"""" to the group and the oil explorer estimated charge to its fourth-quarter profit between $2 billion and $2.5 billion as the tax rate is slashed to 21% from 35%.