European stocks posted their biggest weekly decline since November, as reports signaled that the economic rebound in the US has slowed, while the European Central Bank (ECB) said risks remain to the eurozone’s recovery.
Vodafone Group PLC lost 2.1 percent after Verizon Communications Inc denied that it has considered buying the mobile-phone operator. Kazakhmys PLC and Evraz PLC slumped more than 7 percent this week, leading a gauge of mining stocks to its longest streak of losses in 13 years.
The STOXX Europe 600 Index fell 2.3 percent in the four-day week following the Easter holiday, completing its longest stretch of losses in more than 10 months. The slump pared the gauge’s advance so far this year to 2.7 percent. The STOXX 600 had gained as much as 6.7 percent amid speculation that central banks would continue to provide monetary stimulus.
“Markets are going to be vulnerable to bad news from the States,” Philip Saunders, who helps oversee about US$105 billion at Investec Asset Management in London, told Francine Lacqua on Bloomberg Television.
“Growth, or the lack of it in Europe, is the big issue. We’re in a depression and that’s not going to go away. The Japanese authorities have finally gotten round to dealing with it after 20 years. Let’s hope it doesn’t take that long in Europe,” he said.
Bank of Japan Governor Haruhiko Kuroda increased the lender’s monthly bond purchases to ￥7 trillion (US$72 billion) on Thursday. The central bank would double its monetary base within two years, according to a statement issued after Kuroda’s first meeting in charge of the institution.
National benchmark indexes still fell in all 18 Western European markets this week. The UK’s FTSE 100 dropped 2.5 percent, while France’s CAC 40 and Germany’s DAX retreated 1.8 percent. The stock market in Cyprus declined 2.5 percent after opening for the first time since March 15.
European stocks extended losses on Friday as a US Department of Labor report showed the US economy created fewer jobs last month than economists’ had forecast. Payrolls grew by 88,000 workers last month, their smallest increase in nine months. The median economist estimate in a Bloomberg survey had called for net hiring to climb by 190,000.
In Europe, ECB President Mario Draghi said that risks remain to the economic recovery in the second half of this year. The ECB left its benchmark interest rate at a record low of 0.75 percent on Thursday, matching most economist estimates.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment