European stocks fell this week, sending the Dow Jones STOXX 600 Index to its worst December start, after reports showed manufacturing shrank around the world and US companies cut jobs at the fastest pace in 34 years.
StatoilHydro ASA tumbled 18 percent and Xstrata PLC lost 38 percent as concern the global economic slump is deepening sent oil below US$42 a barrel and copper to the lowest level since May 2005. ABB Ltd, the largest builder of electricity grids, dropped 12 percent after factory indexes in Europe, Russia, China and South Africa showed record contractions. Infineon Technologies AG, Europe’s second-largest chipmaker, plunged the most in the STOXX 600 on a forecast that revenue will decline.
The STOXX 600 retreated 8 percent this week to 189.84, bringing its decline this year to 48 percent. The index erased more than half of a 13 percent rally last week spurred by speculation government stimulus packages and interest-rate cuts would cushion economies from the financial crisis.
“Investors are being blown around in the wind,” Roger Nightingale, who helps oversee about US$1.1 billion as a London-based strategist at Pointon York Ltd, said in an interview on Bloomberg Television. “The only thing that has been consistent is the economic data, and that is horrible. There isn’t really a single piece of good data out there.”
European Central Bank (ECB) President Jean-Claude Trichet predicted this week the euro region’s economy will shrink next year. The ECB delivered the biggest interest rate cut in its 10-year history and the Bank of England cut its benchmark rate to the lowest level since 1951. Sweden also lowered borrowing costs by the most since 1992 as central banks around the world struggle to stem job losses and revive credit markets.
The STOXX 600’s drop was the steepest for the first week of December since price data began. The index has posted an average December gain of 2.2 percent during its 21-year history, rising two-thirds of the time, according to monthly data compiled by Bloomberg.
National benchmark indexes fell in all 18 western European markets except Iceland.
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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