European stocks posted their first weekly decline this month as Italian bonds fell after a debt auction, while concern mounted that political wrangling in Washington will lead to a US government shutdown.
Vallourec SA slumped 9.1 percent after the supplier of tubing to the oil and gas industry said that the weak Brazilian real will hurt its profits, while bookmaker Ladbrokes PLC fell 11 percent as it said the operating profit from its digital division will fall short of analysts’ estimates.
On the opposite end of the spectrum, Telekom Austria AG rose 11 percent as a gauge of telecom shares posted the biggest gain by an industry group on the STOXX Europe 600 Index.
The STOXX 600 retreated 0.6 percent to 312.18 this week, but the equity benchmark has still climbed 5 percent this month and 9.5 percent this quarter as the US Federal Reserve unexpectedly refrained from reducing its monthly bond purchases at its last policy meeting.
The gauge has rallied 12 percent this year as the eurozone emerged from recession and central banks pledged to keep borrowing costs low to support their respective economies.
National benchmark indices declined in 14 of the 18 western European markets this week. France’s CAC 40 fell 0.4 percent, the UK’s FTSE 100 retreated 1.3 percent and Germany’s DAX slipped 0.2 percent as German Chancellor Angela Merkel’s Christian Democratic Union and its Bavarian sister party won the country’s general election on Sunday last week.
Meanwhile, Italy’s FTSE MIB Index slid 1.8 percent and bond yields jumped as borrowing costs climbed and demand fell at an auction of 10-year debt. The Italian Treasury sold 3 billion euros (US$4.1 billion) of securities maturing in 2024 at an average yield of 4.5 percent, more than the 4.46 percent yield at a previous auction on Aug. 29.
Italian stocks and bonds dropped on Thursday after former Italian prime minister Silvio Berlusconi’s allies threatened to resign from parliament if the Italian Senate votes to expel him because of his conviction for tax fraud. The coalition government in Rome relies on Berlusconi’s People of Liberty Party to pass new laws.
As European markets closed on Friday, the US Congress had yet to approve a federal budget for the new financial year starting on Tuesday.
US lawmakers have to pass an emergency budget by Oct. 1 to keep the federal government operating and increase its debt ceiling as total borrowing approaches the US$16.7 trillion limit.
PLANNED OUT: The government is lifting sale and export restrictions on 60% of the 20 million masks made daily, but people can still make purchases using their NHI cards Twenty thousand boxes of 50 masks each would be on sale at FamilyMart convenience stores starting tomorrow, Taiwan FamilyMart Co Ltd (全家便利商店) said yesterday. A box of 50 masks would cost NT$249 for those with FamilyMart memberships and NT$299 for those without, with no limits placed on how many boxes a person can buy, the company said. Convenience store chain operator Hi-Life International Co Ltd (萊爾富) said that it would also start selling masks from tomorrow. It has yet to announce details about prices and quantity. Hypermarket chain operator Carrefour Taiwan (家樂福) said that it would start selling packs of five
Delta Electronics Inc (台達電), the nation’s leading power management solutions provider, has signed an agreement to acquire Canadian software firm Trihedral Engineering Ltd to bolster its smart production efforts, it said on Saturday. Delta said in a statement that it would acquire Trihedral for C$45 million (US$32.68 million) through its 100 percent-owned subsidiary Delta Electronics (Netherlands) BV. Trihedral specializes in supervisory control and data acquisition (SCADA) and industrial Internet of Things software, which would strengthen Delta’s hardware offerings in fast-growing areas such as automation, artificial intelligence and data analytics, it said. “The collection, monitoring and analyzing of data are critical to Delta’s two
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hire company will charge you for the scratch they discover when you hand back the vehicle. Hertz Global Holdings Inc’s bankruptcy protection filing on Friday last week was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by COVID-19 travel restrictions. The company’s monthly revenue last month fell 73 percent year-on-year, a shortfall that even the most resilient
BOOSTING BUYING: A source said that the idea of pre-ordering vouchers online is being considered, but the preliminary plan is for people to buy them at post offices A stimulus voucher program to be rolled out next month to boost consumption would be available not only to Taiwanese, but also foreign nationals and Chinese spouses who hold residency permits, a source familiar with the matter said yesterday. The government is fine-tuning the details of the program, which involves issuing vouchers for in-store purchases to revive buying amid the COVID-19 pandemic. During a radio interview on Monday last week, National Development Council (NDC) Minister Kung Ming-hsin (龔明鑫) said that the plan is to allow anyone, regardless of age or income level, to buy NT$3,000 (US$99.89) worth of vouchers for