European stocks had their first weekly advance in four weeks as companies including Vodafone Group Plc and Bayer AG posted results that beat analysts' estimates or forecast better earnings next year.
Caterer Sodexho Alliance SA and electronics maker Thales SA advanced today after they reported higher profit or sales.
"You've got a fundamental pickup in earnings," said Nigel Richardson, who helps oversee about 270 billion euros (US$271 billion) of global assets at Axa Investment Managers in London.
The Dow Jones Stoxx 50 Index rose 0.8 percent to 2,589.33, extending its climb since last Friday's close to 3.2 percent.
Vodafone, the world's largest mobile-phone company, led index gains this week, jumping 16 percent as it said its loss narrowed and predicted sales growth of at least 10 percent next year.
Drug and chemical maker Bayer AG had the Stoxx 50's second-biggest weekly advance as it posted a third-quarter profit, compared with a year-earlier loss, and said operating results will improve next year. Phone company Telefonica SA, the index's eighth-best performer, said quarterly earnings rose 22 percent.
HSBC Holdings Plc, which fell the most in the Stoxx 50 yesterday, led gains today. The Stoxx 600 Index added 0.4 percent to 214.37 as four shares advanced for every three that declined.
Twelve of the 17 Western European benchmarks gained, led by the Portuguese PSI-20 Index and the Swiss Market Index, which rose 1.6 percent. The UK's FTSE 100 Index climbed 1 percent, the French CAC 40 Index added 0.4 percent, and the German DAX Index rose 0.1 percent.
Sweden's OMX Index fell 1 percent even as the Riksbank cut its key lending rate for the first time in 14 months.
Vodafone slipped 0.7 percent to 115.5 pence. This week's advance, the biggest since July 2000, raised the company's market value by Euro 11 billion (US$17.4 billion).
Bayer added 1.9 percent, for a gain of 15 percent this week, to 22.34 euros. Telefonica, the biggest phone company in the Spanish-and Portuguese-speaking world, climbed 0.6 percent to 9.81 euros, leaving the stock up 6.3 percent from last Friday's close.
Shares pared gains today as a government report showed US industrial production dropped for a third month in October, providing more evidence that manufacturing is faltering in the world's largest economy. They rebounded after the University of Michigan's consumer-sentiment index rose to 85 in November, higher than economists had forecast, from 80.6 in October.
"Even though macroeconomic data isn't as good as we would like it to be, corporate results have been positive enough to push the market," said Pablo Rubio, who helps manage 180 million euros at Lusogest SGIIC in Madrid.
The European Commission on Wednesday cut its forecast for growth this year in the 12 nations sharing the euro to 0.8 percent from 1.4 percent. Also that day, US Federal Reserve Chairman Alan Greenspan said a drop in business spending and declines in stock prices have slowed the pace of economic growth.
Share-price gains may be limited by the outlook for weak economic growth and the possibility of a US attack on Iraq, which might push the price of oil higher and dampen consumer optimism, some investors said.
"If it weren't for the Iraq uncertainty, we'd be more positive" on stocks, Richardson said. Iraq's ambassador to the UN said Wednesday the country has accepted a Security Council resolution setting terms for unconditional weapons inspections.
Sodexho, the world's second-largest caterer, climbed 7.6 percent to 24.94 euros Friday. Full-year profit rose 33 percent to 183 million euros, helped by contracts with Nokia Oyj and Royal Dutch/Shell Group.
Thales gained 2 percent to 24.84 euros. Europe's biggest defense-electronics maker said third-quarter sales rose 25 percent, boosted by deliveries of military equipment.
Roche Holding AG climbed 3.6 percent to SF107. Schwarz Pharma AG lost 5.7 percent to 28 euros.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
TRANSFORMATION: Taiwan is now home to the largest Google hardware research and development center outside of the US, thanks to the nation’s economic policies President Tsai Ing-wen (蔡英文) yesterday attended an event marking the opening of Google’s second hardware research and development (R&D) office in Taiwan, which was held at New Taipei City’s Banciao District (板橋). This signals Taiwan’s transformation into the world’s largest Google hardware research and development center outside of the US, validating the nation’s economic policy in the past eight years, she said. The “five plus two” innovative industries policy, “six core strategic industries” initiative and infrastructure projects have grown the national industry and established resilient supply chains that withstood the COVID-19 pandemic, Tsai said. Taiwan has improved investment conditions of the domestic economy
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day