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.
US president-elect Donald Trump said he would “never say” if Washington is committed to defending Taiwan from China, but “I would prefer that they do not do it [ an attack],” adding that he has a “good relationship” with Chinese President Xi Jinping (習近平). “I never say because I have to negotiate things, right?” Trump said in an interview with NBC’s Meet the Press host Kristen Welker after saying he would not reveal his incoming administration’s stance on Taiwan’s defense in the event of an attack. Asked the question again, Trump, in a reference to China, said: “I would prefer that they
CROSS-STRAIT TENSIONS: MOFA demanded Beijing stop its military intimidation and ‘irrational behavior’ that endanger peace and stability in the Indo-Pacific region The Presidential Office yesterday called on China to stop all “provocative acts,” saying ongoing Chinese military activity in the nearby waters of Taiwan was a “blatant disruption” of the “status quo” of security and stability in the Indo-Pacific region. Defense officials said they have detected Chinese ships since Monday, both off Taiwan and farther out along the first island chain. They described the formations as two walls designed to demonstrate that the waters belong to China. The Ministry of National Defense yesterday said it had detected 53 military aircraft operating around the nation over the past 24 hours, as well
TECHNICAL LEAD: The US needs to boost its missile technology and build a communications network able to withstand hackers, Admiral Samuel Paparo said US Indo-Pacific Commander Admiral Samuel Paparo said the US is confident it could defeat China in the Pacific, but that technical advantage is shrinking, the Washington Post reported yesterday. Speaking at the Reagan Defense Forum on Saturday, Paparo said the US needs to maintain its technical lead over China by enhancing missile technology and building a communications network able to withstand hackers, the paper reported. Although the US is able to hit long-distance and difficult targets with its advanced cruise missile system, each launch costs more than US$1 million, he said. By contrast, drones, which are relatively cheap to build and develop, can
‘LAGGING BEHIND’: The NATO secretary-general called on democratic allies to be ‘clear-eyed’ about Beijing’s military buildup, urging them to boost military spending NATO Secretary-General Mark Rutte mentioning China’s bullying of Taiwan and its ambition to reshape the global order has significance during a time when authoritarian states are continuously increasing their aggression, the Ministry of Foreign Affairs (MOFA) said yesterday. In a speech at the Carnegie Europe think tank in Brussels on Thursday, Rutte said Beijing is bullying Taiwan and would start to “nibble” at Taiwan if Russia benefits from a post-invasion peace deal with Ukraine. He called on democratic allies to boost defense investments and also urged NATO members to increase defense spending in the face of growing military threats from Russia
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