European stocks retreated this week, extending the Dow Jones STOXX 600 Index’s second straight weekly decline, as healthcare and gambling companies sank and UBS AG forecast a second-quarter loss.
Sanofi-Aventis SA tumbled the most in seven months after analysts cut their recommendations on concern the drugmaker’s Lantus diabetes treatment carries health risks. Opap SA, Europe’s largest publicly traded gambling company, sank 7.4 percent after Greece said it would impose new taxes on games of chance. UBS, the European bank with the steepest losses from the credit crunch, fell 5.4 percent.
The STOXX 600 slipped 0.1 percent to 204.47. The gauge has lost 1.8 percent since last Friday, posting its first back-to-back weekly declines since the start of a rebound in March. The World Bank predicted this week that the global recession will be deeper this year than it forecast in March, while European Central Bank (ECB) council member Axel Weber said the ECB has used up room to cut interest rates.
“The big question is: will we have a recovery in global growth or will it take a while and growth will remain flat?” said Matthieu Giuliani, a fund manager at Palatine Asset Management in Paris, which oversees about US$5.6 billion. “Today we need a very clear improvement in the economy for stocks to progress.”
The STOXX 600 has retreated 4.8 percent since June 11 amid speculation share prices have outpaced the outlook for economic growth after a three-month, 36 percent rally drove valuations to 25.4 times earnings, the highest level since 2004.
National benchmark indexes declined in nine of the 18 western European markets. France’s CAC 40 slid 1.1 percent as PSA Peugeot Citroen retreated. Germany’s DAX slipped 0.5 percent. The UK’s FTSE 100 fell 0.3 percent.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
SHOT IN THE ARM: The new system can be integrated with Avenger and Stinger missiles to bolster regional air defense capabilities, a defense ministry report said Domestically developed Land Sword II (陸射劍二) missiles were successfully launched and hit target drones during a live-fire exercise at the Jiupeng Military Base in Pingtung County yesterday. The missiles, developed by the Chungshan Institute of Science and Technology (CSIST), were originally scheduled to launch on Tuesday last week, after the Tomb Sweeping Day holiday long weekend, but were postponed to yesterday due to weather conditions. Local residents and military enthusiasts gathered outside the base to watch the missile tests, with the first one launching at 9:10am. The Land Sword II system, which is derived from the Sky Sword II (天劍二) series, was turned