European stocks posted the biggest weekly decline in seven weeks as economic reports from the US and Japan heightened concern that the global economic recovery may be stalling.
Vestas Wind Systems A/S led energy companies lower, plunging 23 percent, after the wind-turbine maker cut its revenue forecast. Holcim Ltd, the world’s second-biggest cement maker, lost 5.1 percent as earnings missed estimates. BHP Billiton Ltd sank 6.3 percent after making a hostile US$40 billion bid for Potash Corp of Saskatchewan Inc.
The benchmark STOXX Europe 600 Index fell 1.3 percent to 252.15 this past week, the biggest drop since July 2, as reports showed US jobless-benefit claims climbed to the highest level in nine months and Japan’s economy grew at the slowest pace in three quarters.
“The data is obvious: It is a slowdown,” said Herbert Perus, Vienna-based head of equities at Raiffeisen Capital Management. “The recovery will not go on in a straight line. Big investors are positioned for a double-dip scenario.”
The STOXX 600 has retreated 7.4 percent from this year’s high in April amid concern that European governments will struggle to reduce their budget deficits and speculation that the US economy may tip back into recession. The gauge is almost unchanged for the year.
National benchmark indices fell in 16 out of 18 western European markets this week. France’s CAC 40 dropped 2.4 percent and Germany’s DAX slid 1.7 percent. The UK’s FTSE 100 retreated 1.5 percent.
A measure of energy stocks posted the biggest decline among 19 industry groups in the STOXX 600 as crude oil fell to a six-week low in New York.
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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