European stock indexes dropped for a second week, the first back-to-back decline since March, on concern accelerating inflation may push central banks to raise interest rates.
ABB Ltd, the world’s largest builder of power networks, and Vinci SA, the biggest construction company, slid. Barratt Developments PLC led UK homebuilders lower after Merrill Lynch & Co recommended selling the shares as the housing market deteriorates. Bayerische Motoren Werke AG slipped after Goldman Sachs Group Inc downgraded the stock.
The Dow Jones STOXX 600 Index sank 1.5 percent to 305.70, capping its worst two weeks since January. The gauge has fallen 16 percent this year on speculation credit-related losses approaching US$400 billion and rising oil prices will erode earnings.
“Inflation poses a real problem,” said Guillaume Duchesne, a Geneva-based strategist at Fortis Private Banking, which oversees the equivalent of US$117 billion. “We’re worried about rising interest rates in the US and Europe. We have difficulty finding positive elements that would sustain a rally in stocks.”
National benchmark indexes retreated in all of the 18 western European markets except Spain. Germany’s DAX Index fell 0.6 percent. France’s CAC 40 lost 2.4 percent. The UK’s FTSE 100 slipped 1.8 percent. The STOXX 50 retreated 0.9 percent, and the Euro STOXX 50, a measure for the euro region, slid 1 percent.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
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