European stocks dropped for the first week in three, with the benchmark STOXX Europe 600 Index failing to extend a four-month high, dragged lower by utilities and banks.
E.ON AG and RWE AG fell as brokers downgraded Germany’s largest utilities. Allied Irish Banks PLC and Bank of Ireland PLC slumped amid renewed concern that the lenders need further financial help. Carrefour SA surged 6.9 percent after announcing a US$2 billion store revamp plan. Crucell NV soared 56 percent as Johnson & Johnson announced plans to take full control of the Dutch vaccine maker.
The STOXX Europe 600 Index slid 0.7 percent to 262.86 this past week, trimming this year’s gain to 3.5 percent and the increase from its low for this year in May to 13 percent. The benchmark gauge reached its highest level since April on Monday as regulators agreed new capital rules for banks and economic reports from China and Europe boosted confidence in the recovery.
“Investors are waiting to see if markets can now break out of trading ranges to higher levels,” said Adrian Darley, who helps oversee about US$100 billion as head of European equities at Ignis Investment Services Ltd in London. “At some point, sovereign debt concerns will no doubt rise to the fore again.”
Credit-default swaps on Ireland rose 38 basis points to a record 428.3 on Sept. 17, according to data provider CMA.
CLASH OF WORDS: While China’s foreign minister insisted the US play a constructive role with China, Rubio stressed Washington’s commitment to its allies in the region The Ministry of Foreign Affairs (MOFA) yesterday affirmed and welcomed US Secretary of State Marco Rubio statements expressing the US’ “serious concern over China’s coercive actions against Taiwan” and aggressive behavior in the South China Sea, in a telephone call with his Chinese counterpart. The ministry in a news release yesterday also said that the Chinese Ministry of Foreign Affairs had stated many fallacies about Taiwan in the call. “We solemnly emphasize again that our country and the People’s Republic of China are not subordinate to each other, and it has been an objective fact for a long time, as well as
‘CHARM OFFENSIVE’: Beijing has been sending senior Chinese officials to Okinawa as part of efforts to influence public opinion against the US, the ‘Telegraph’ reported Beijing is believed to be sowing divisions in Japan’s Okinawa Prefecture to better facilitate an invasion of Taiwan, British newspaper the Telegraph reported on Saturday. Less than 750km from Taiwan, Okinawa hosts nearly 30,000 US troops who would likely “play a pivotal role should Beijing order the invasion of Taiwan,” it wrote. To prevent US intervention in an invasion, China is carrying out a “silent invasion” of Okinawa by stoking the flames of discontent among locals toward the US presence in the prefecture, it said. Beijing is also allegedly funding separatists in the region, including Chosuke Yara, the head of the Ryukyu Independence
‘VERY SHALLOW’: The center of Saturday’s quake in Tainan’s Dongshan District hit at a depth of 7.7km, while yesterday’s in Nansai was at a depth of 8.1km, the CWA said Two magnitude 5.7 earthquakes that struck on Saturday night and yesterday morning were aftershocks triggered by a magnitude 6.4 quake on Tuesday last week, a seismologist said, adding that the epicenters of the aftershocks are moving westward. Saturday and yesterday’s earthquakes occurred as people were preparing for the Lunar New Year holiday this week. As of 10am yesterday, the Central Weather Administration (CWA) recorded 110 aftershocks from last week’s main earthquake, including six magnitude 5 to 6 quakes and 32 magnitude 4 to 5 tremors. Seventy-one of the earthquakes were smaller than magnitude 4. Thirty-one of the aftershocks were felt nationwide, while 79
MARITIME SECURITY: Of the 52 vessels, 15 were rated a ‘threat’ for various reasons, including the amount of time they spent loitering near subsea cables, the CGA said Taiwan has identified 52 “suspicious” Chinese-owned ships flying flags of convenience that require close monitoring if detected near the nation, the Coast Guard Administration (CGA) said yesterday, as the nation seeks to protect its subsea telecoms cables. The stricter regime comes after a Cameroon-flagged vessel was briefly detained by the CGA earlier this month on suspicion of damaging an international cable northeast of Taiwan. The vessel is owned by a Hong Kong-registered company with a Chinese address given for its only listed director, the CGA said previously. Taiwan fears China could sever its communication links as part of an attempt
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