Starbucks near-term earnings unaffected by coffee rise, says Deutsche Bank Deutsche Bank notes that coffee futures have soared in recent weeks amid hot and dry weather in Brazil, the world’s largest producer and exporter of coffee. Deutsche expects no near-term impact to Starbucks' earnings since the company has already fully contracted its coffee needs for FY14, but notes higher coffee prices could hurt the company longer-term as contracts roll off. The firm keeps a Buy rating on Starbucks with an $88 price target.
EU says Starbucks tax deal in Netherlands may be illegal state aid, WSJ says The European Union said the tax deal struck by Starbucks (SBUX) in the Netherlands amounts to illegal state aid, reports the Wall Street Journal. European Commission regulators said it reached a preliminary view that the tax deal violated guidelines produced by the Organization for Economic Cooperation and Development. It said the tax deal "tolerates questionable adjustments which allow Starbucks Manufacturing BV to lower the resulting corporate income tax basis in the Netherlands." The EU is also investigating tax arrangements of Apple (AAPL) in Ireland and Amazon (AMZN) and Fiat S.p.A. (FIATY) in Luxembourg. Reference Link