European stocks rose for a third week, their longest winning streak since April, on speculation policymakers would increase efforts to contain the debt crisis as company earnings and US retail sales beat estimates.
The STOXX Europe 600 Index advanced 2.8 percent to 238.51 this week. The gauge has still retreated 18 percent since this year’s high on Feb. 17 on concern Greece would default, pushing borrowing costs higher for other indebted eurozone countries. The gauge traded at nine times its companies’ estimated earnings on Sept. 22, the cheapest since March 2009. The STOXX 600 last increased for three consecutive weeks more than six months ago.
G20 finance ministers met in Paris on Friday and yesterday to discuss a rescue plan for Europe’s struggling economies. German Chancellor Angela Merkel and French President Nicolas Sarkozy set an end-of-this-month deadline to devise a plan to recapitalize banks and get Greece on the right track, Sarkozy said last Sunday.
“They are not going to avoid a Greek default at any cost, but they prefer to capitalize banks,” said Giuseppe Distefano, chief investment officer of Alessia Sicav, in Luxembourg. “That helps remove the uncertainty originating in the Greek situation. That has been the main driver of the market rally.”
Standard & Poor’s cut Spain’s credit rating on Thursday for the third downgrade in three years. New data showed the eight largest US money-market funds almost halved their lending to French banks last month.
“With equity markets looking to post their best weekly gains in some time, this improved sentiment is tempered somewhat by the propensity for European leaders to disappoint, when it comes to the crunch,” said Michael Hewson, a market analyst at CMC Markets in London.
EU Commissioner for Economic and Monetary Affairs Olli Rehn said in a speech in Dublin on Wednesday that the eurozone was approaching a consensus on resolving its debt crisis and had a fairly good chance of averting calamity.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion