European stocks rose this week as companies including BNP Paribas SA and European Aeronautic, Defence & Space Co (EADS) reported earnings that beat analysts’ estimates and investors speculated mergers and acquisitions are picking up.
BNP Paribas had its biggest weekly gain in a month as profit at France’s largest bank declined less than projected. EADS rallied after posting record production rates at its Airbus SAS unit. BT Group Plc also climbed on earnings. BHP Billiton Ltd led an advance in basic-resources shares on speculation China may buy a stake in the world’s largest mining company.
Europe’s Dow Jones STOXX 600 Index added 1.5 percent to 329.86, the highest since Feb. 26 and trimming the decline this year to 9.5 percent. Concern that record oil prices, inflation and US$342 billion in credit losses will cut economic and profit growth has weighed on stocks.
“The earnings reports this week were important and one of the driving forces, as were commodities,” said Carsten Klude, head of investment strategy at M.M. Warburg & Co in Hamburg, adding that acquisitions were also buoying the market. “This topic seemed dead for some time but is now back on the agenda.”
Germany’s DAX Index added 2.2 percent. France’s CAC 40 gained 2.4 percent. The UK’s FTSE 100 advanced 1.6 percent. The STOXX 50 also rallied 1.6 percent, as did the Euro STOXX 50, a measure for the euro region.
European economic growth accelerated more in the first quarter than economists estimated. Gross domestic product in the 15 euro countries increased 0.7 percent from the fourth quarter, the European Union’s statistics office said on Thursday. Germany’s 1.5 percent expansion was more than double what economists estimated.
‘UNFRIENDLY’: Changing the nationality listing of Taiwanese residents to ‘China’ goes against EU foreign policy as well as democratic and human rights principles, MOFA said Taiwan yesterday called on Denmark to correct its designation of the nationality of Taiwanese residents as “China” or face retaliatory measures. The Danish government in 2024 changed the nationality of Taiwanese citizens on their residence permits from “Taiwan” to “China.” The decision goes against EU foreign policy and contravenes democratic and human rights principles, Ministry of Foreign Affairs (MOFA) spokesman Hsiao Kuang-wei (蕭光偉) said. Denmark should present a solution acceptable to Taiwan as soon as possible and correct the erroneous designation to preserve the longstanding friendship between the two nations, Hsiao said. The issue could damage Denmark’s image and business reputation in Taiwan,
KEY INDUSTRY: The vice premier discussed a plan to create a non-red drone supply chain by next year, which has been allocated a budget of more than NT$7.2 billion The government has budgeted NT$44.2 billion (US$1.38 billion) to cultivate Taiwan’s uncrewed aerial vehicle (UAV) industry over the next five years, which would make the nation a major player in the industry’s democratic supply chain in the Asia-Pacific region, Premier Cho Jung-tai (卓榮泰) said yesterday. Cho made the remarks during a visit to the facilities of Cub Elecparts Inc (為升電裝). Democratic Progressive Party (DPP) Legislator Chen Su-yueh (陳素月) and Chinese Nationalist Party (KMT) Legislator Hsieh Yi-fong (謝依鳳) also participated in the trip. Cub Elecparts has transitioned from the automotive industry to the defense industry, which is the top priority among the nation’s
SUFFICIENT: The president said Taiwan has enough oil for next month, with reserves covering more than 100 days and natural gas enough for 12 to 14 days A restart plan for the Guosheng Nuclear Power Plant in New Taipei City’s Wanli District (萬里) and the Ma-anshan Nuclear Power Plant in Pingtung County’s Hengchun Township (恆春) would be submitted to the Nuclear Safety Commission by the end of the month, President William Lai (賴清德) said yesterday, reversing the government’s policy to abolish nuclear energy. On May 17 last year, Taiwan shut down its last nuclear reactor and became the first non-nuclear nation in East Asia, fulfilling the Democratic Progressive Party (DPP) government’s pledge of a “nuclear-free homeland.” Even without nuclear power, Taiwan can maintain a stable electricity supply until 2032,
DEROGATORY: WTO host Cameroon’s designation of Taiwan as a ‘province of China’ seriously undermines the nation’s status and rights as a WTO member, MOFA said The Ministry of Foreign Affairs (MOFA) yesterday condemned Cameroon for listing Taiwan as “Taiwan, Province of China” in visa documents for an upcoming WTO ministerial conference, a move that led to Taiwan’s withdrawal from the event. The designation “seriously undermined” Taiwan’s status and rights as a WTO member, the ministry said in a statement. It is the first time since 2001 that Taiwan has declined to attend a WTO Ministerial Conference. The conference is scheduled to take place from Thursday to Sunday next week in Yaounde, the capital of Cameroon. Taiwan had planned to send a delegation led by Minister Without Portfolio
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