European stocks gained for a second week after Royal Philips Electronics NV reported an unexpected third-quarter profit and results from Intel Corp to JPMorgan Chase & Co and Google Inc beat analysts’ estimates.
Philips, Europe’s biggest consumer-electronics maker, climbed 7.5 percent as operating earnings at the consumer unit more than doubled. Remy Cointreau SA rallied after France’s second-largest liquor company reported a smaller sales decline. J Sainsbury PLC, the UK’s third-biggest grocery chain, surged on speculation its largest investor, Qatar’s sovereign wealth fund, may buy more shares. Prosafe ASA led energy shares higher as oil rose to a one-year high.
The Dow Jones STOXX 600 Index climbed 1.2 percent in the week to 245.58. The regional gauge has gained 55 percent since March 9 as companies reported earnings that exceeded estimates. The rally has pushed valuations on the index to 48.9 times earnings, near the most expensive level since 2003, Bloomberg data show.
“We’re happy with earnings reports,” said Yves Maillot, director of investments at Robeco Asset Management in Paris, which oversees US$7.47 billion.
Companies in the STOXX 600 are expected to report a 3.9 percent increase in earnings this year and a 31 percent gain in profit next year, according to data compiled by Bloomberg.
National benchmark indexes rose in 15 of the 18 western European markets. Germany’s DAX and the UK’s FTSE 100 each added 0.6 percent. France’s CAC 40 advanced 0.7 percent.
Economic data this week added to evidence that the economy is strengthening. China’s exports declined at the slowest pace in nine months last month, while sales at US retailers fell less than anticipated, reports showed. UK unemployment rose by the least in a year and fewer people signed on for jobless benefits than economists forecast as the recession eased, according to data from the Office for National Statistics.
DEFENDING DEMOCRACY: Taiwan shares the same values as those that fought in WWII, and nations must unite to halt the expansion of a new authoritarian bloc, Lai said The government yesterday held a commemoration ceremony for Victory in Europe (V-E) Day, joining the rest of the world for the first time to mark the anniversary of the end of World War II in Europe. Taiwan honoring V-E Day signifies “our growing connections with the international community,” President William Lai (賴清德) said at a reception in Taipei on the 80th anniversary of V-E Day. One of the major lessons of World War II is that “authoritarianism and aggression lead only to slaughter, tragedy and greater inequality,” Lai said. Even more importantly, the war also taught people that “those who cherish peace cannot
STEADFAST FRIEND: The bills encourage increased Taiwan-US engagement and address China’s distortion of UN Resolution 2758 to isolate Taiwan internationally The Presidential Office yesterday thanked the US House of Representatives for unanimously passing two Taiwan-related bills highlighting its solid support for Taiwan’s democracy and global participation, and for deepening bilateral relations. One of the bills, the Taiwan Assurance Implementation Act, requires the US Department of State to periodically review its guidelines for engagement with Taiwan, and report to the US Congress on the guidelines and plans to lift self-imposed limitations on US-Taiwan engagement. The other bill is the Taiwan International Solidarity Act, which clarifies that UN Resolution 2758 does not address the issue of the representation of Taiwan or its people in
US Indo-Pacific Commander Admiral Samuel Paparo on Friday expressed concern over the rate at which China is diversifying its military exercises, the Financial Times (FT) reported on Saturday. “The rates of change on the depth and breadth of their exercises is the one non-linear effect that I’ve seen in the last year that wakes me up at night or keeps me up at night,” Paparo was quoted by FT as saying while attending the annual Sedona Forum at the McCain Institute in Arizona. Paparo also expressed concern over the speed with which China was expanding its military. While the US
‘FALLACY’: Xi’s assertions that Taiwan was given to the PRC after WWII confused right and wrong, and were contrary to the facts, the Ministry of Foreign Affairs said The Ministry of Foreign Affairs yesterday called Chinese President Xi Jinping’s (習近平) claim that China historically has sovereignty over Taiwan “deceptive” and “contrary to the facts.” In an article published on Wednesday in the Russian state-run Rossiyskaya Gazeta, Xi said that this year not only marks 80 years since the end of World War II and the founding of the UN, but also “Taiwan’s restoration to China.” “A series of instruments with legal effect under international law, including the Cairo Declaration and the Potsdam Declaration have affirmed China’s sovereignty over Taiwan,” Xi wrote. “The historical and legal fact” of these documents, as well
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