European stocks fell for a second week as the euro area’s budget deficit widened to more than double the EU’s 3 percent limit last year, led by Greece and Ireland, offsetting better-than-expected results from companies including Ericsson AB and Volvo AB.
Greek banks sank as Moody’s Investors Service cut Greece’s sovereign rating. Royal Bank of Scotland Group PLC rose 16 percent as BofA-Merrill Lynch Global Research added the stock to its “most preferred” list and it may consider a share buyback. Nokia Oyj sank 14 percent as it cut its margin forecast.
The Stoxx Europe 600 Index slipped 0.2 percent to 267.42 this week, a second weekly loss. The VStoxx Index, which gauges the cost of using options to protect against declines in the Dow Jones Euro Stoxx 50 Index, rose to 24.7953 on Thursday, reaching the highest level in almost two months.
“Equity markets were very volatile as concerns over Greece swung sentiment and as, eventually, markets forced the Greek government’s hand,” said Neil Dwane, who helps oversee about US$80 billion as chief investment officer at Allianz Global Investors’ RCM unit in Frankfurt.
National benchmark indexes fell in 10 out of the 18 western European markets. Germany’s DAX rose 1.3 percent and France’s CAC 40 slid 0.9 percent, while the UK’s FTSE 100 retreated 0.4 percent. Greece’s ASE dropped 6.9 percent.
Credit Suisse Group AG dropped 7 percent to 51.50 francs as quarterly results at Switzerland’s second-biggest bank missed a gain in debt trading that helped lift earnings at rivals.
Royal Bank of Scotland gained 16 percent to £0.558 after being added to the “most preferred” stocks among European banks at BofA-Merrill Lynch. Barclays Capital upgraded the stock to “overweight” from “equal weight.”
Britain’s biggest government-owned bank, may use surplus capital to buy back part of the taxpayer’s holding, said two people with knowledge of the situation.
Deutsche Postbank AG climbed 7.1 percent to 26.40 euros on speculation Deutsche Bank AG is preparing a full takeover for the lender it partially owns. Nokia Oyj dropped 14 percent to 9.49 euros after posting a lower-than-estimated quarterly net income, while Ericsson climbed 14 percent to 88 kronor.
ECONOMIC RESILIENCE: Only 11.4 percent of Taiwan’s overseas investments last year were in China, and businesses are dispersing their investments elsewhere, Lai said China’s ambition to annex Taiwan is based on a desire to change the rules-based international order, rather than a desire for territorial gains, President William Lai (賴清德) said in an interview. During an appearance on the talk show The View With Catherine Chang, aired last night, Lai said China aimed to achieve hegemony, and that peace and stability in the Taiwan Strait was an issue of worldwide concern. During the interview, Lai also discussed his “four-pillar plan” for peace and prosperity, which he first outlined in an article published by the Wall Street Journal on July 4 last year. That
‘REGRETTABLE’: TPP lawmaker Vivian Huang said that ‘we will continue to support Chairman Ko and defend his innocence’ as he was transferred to a detention facility The Taipei District Court yesterday ruled that Taiwan People’s Party (TPP) Chairman Ko Wen-je (柯文哲) be detained and held incommunicado over alleged corruption dating to his time as mayor of Taipei. The ruling reversed a decision by the court on Monday morning that Ko be released without bail. After prosecutors on Wednesday appealed the Monday decision, the High Court said that Ko had potentially been “actively involved” in the alleged corruption and ordered the district court to hold a second detention hearing. Ko did not speak to reporters upon his arrival at the district court at about 9:10am yesterday to attend a procedural
Thirty Taiwanese firms, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and ASE Technology Holding Co (日月光投控), yesterday launched a silicon photonics industry alliance, aiming to accelerate the medium’s development and address the energy efficiency of artificial intelligence (AI) devices like data centers. As the world is ushering in a new AI era with tremendous demand for computing power and algorithms, energy consumption is emerging as a critical issue, TSMC vice president of integrated interconnect and packaging business C.K. Hsu (徐國晉) told a media briefing in Taipei. To solve this issue, it is essential to introduce silicon photonics and copackaged optics (CPO)
The High Court yesterday overturned a Taipei District Court decision to release Taiwan People’s Party Chairman Ko Wen-je (柯文哲) and sent the case back to the lower court. The Taipei District Prosecutors’ Office on Saturday questioned Ko amid a probe into alleged corruption involving the Core Pacific City development project during his time as Taipei mayor. Core Pacific City, also known as Living Mall (京華城購物中心), was a shopping mall in Taipei’s Songshan District (松山) that has since been demolished. On Monday, the Taipei District Court granted a second motion by Ko’s attorney to release him without bail, a decision the prosecutors’ office appealed