European stocks advanced this week, pushing the Dow Jones STOXX 600 Index to its biggest gain since July, as investors speculated mergers will increase and evidence mounted that the economy is recovering from recession.
Cadbury PLC, the world’s largest confectioner, jumped 37 percent after rejecting a US$16 billion takeover offer from Kraft Foods Inc. BHP Billiton Ltd climbed 8.1 percent as metal prices rose and reports showed industrial production and investment growth in China accelerated. Renault SA surged 10 percent as chief executive officer Carlos Ghosn said the worst of the financial crisis was over.
The STOXX 600 added 3.4 percent to 241.74 this past week, extending an 11-month high. The measure has soared 53 percent since March 9 as companies from Goldman Sachs Group Inc to L’Oreal SA reported better-than-estimated results and the German and French economies unexpectedly grew. The rally has driven the STOXX 600’s valuation to 46.7 times reported company earnings, the highest level since 2003, according to Bloomberg data.
“The upward trend is still intact,” said Daniel Knuchel, who oversees about US$3 billion as chief investment officer at AAM Privatbank AG in Zurich. “M&A activity is a positive factor as it shows that companies are seeing value again. It spurs a certain confidence if you see large transactions like Kraft’s bid for Cadbury.”
European investor confidence increased for a second month in September as the euro-area economy starts to recover, according to data from the Limburg, Germany-based Sentix research institute.
National benchmark indexes increased in all 18 western European markets, except Iceland. The UK’s FTSE 100 advanced 3.3 percent and France’s CAC 40 rose 3.8 percent. Germany’s DAX climbed 4.5 percent as Commerzbank AG rallied.
The VSTOXX Index, which gauges the cost of insurance against declines on the Euro STOXX 50, fell 8.5 percent to the lowest level in a year.
STMicroelectronics NV, Europe’s biggest semiconductor maker, rose 6.5 percent and Infineon Technologies AG, the second-largest, climbed 7.2 percent after Texas Instruments Inc, the second-biggest US chipmaker, increased its sales and earnings forecasts and said demand for so-called analog chips is beginning to recover.
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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