European stocks fell as declines by commodity producers and concern that the three-month surge by the Dow Jones STOXX 600 Index has outpaced prospects for earnings offset a rally in health-care shares.
BP PLC, Total SA and BHP Billiton Ltd led raw-material stocks lower after base metals and oil slipped following a record plunge in industrial production in Europe. Vedanta Resources PLC sank 8.5 percent after India’s largest producer of the metal announced the sale of US$1 billion in convertible bonds. GlaxoSmithKline PLC jumped 5.4 percent as the World Health Organization declared the first influenza pandemic since 1968.
The STOXX 600 slipped 0.2 percent to 214.35, trimming its fourth straight weekly gain to 1.7 percent. The gauge has surged 36 percent since March 9 on speculation the US$12.8 trillion pledged by the US government and Federal Reserve will end the first global recession since World War II.
The European index is valued at 25.5 times the profits of its companies, the most expensive level since 2004, data compiled by Bloomberg show. Corporate earnings in the region will rebound by 15 percent next year after a 25 percent tumble this year, according to strategists at UBS AG.
National benchmark indexes fell in 12 of the 18 western European markets. Germany’s DAX lost 0.7 percent, while France’s CAC 40 declined 0.3 percent. The UK’s FTSE 100 dropped 0.5 percent, led lower by mining shares.
Basic-resources companies led declines as copper and oil retreated.
BP, Europe’s second-biggest oil company, dropped 1.8 percent to £5.15 and Total, the third-largest, slid 2.1 percent to 40.675 euros. BHP, the world’s biggest mining company, sank 2.1 percent to £1,485.
DETERRENCE: With 1,000 indigenous Hsiung Feng II and III missiles and 400 Harpoon missiles, the nation would boast the highest anti-ship missile density in the world With Taiwan wrapping up mass production of Hsiung Feng II and III missiles by December and an influx of Harpoon missiles from the US, Taiwan would have the highest density of anti-ship missiles in the world, a source said yesterday. Taiwan is to wrap up mass production of the indigenous anti-ship missiles by the end of year, as the Chungshan Institute of Science and Technology has been meeting production targets ahead of schedule, a defense official with knowledge of the matter said. Combined with the 400 Harpoon anti-ship missiles Taiwan expects to receive from the US by 2028, the nation would have
‘UNWAVERING FRIENDSHIP’: A representative of a Japanese group that co-organized a memorial, said he hopes Japanese never forget Taiwan’s kindness President William Lai (賴清德) yesterday marked the 15th anniversary of the Tohoku earthquake and tsunami, urging continued cooperation between Taiwan and Japan on disaster prevention and humanitarian assistance. Lai wrote on social media that Taiwan and Japan have always helped each other in the aftermath of major disasters. The magnitude 9 earthquake struck northeastern Japan on March 11, 2011, triggering a massive tsunami that claimed more than 19,000 lives, according to data from Japanese authorities. Following the disaster, Taiwan donated more than US$240 million in aid, making it one of the largest contributors of financial assistance to Japan. In addition to cash donations and
CLOSER TO CHINA: The upgraded Type-12 missile has a range of about 1,000km, compared with the original model’s range of 200km, and can reach mainland China Japan is preparing to deploy its first batch of domestically developed long-range missiles, with their launchers arriving at an army camp yesterday, as the country accelerates its offensive capability in response to rising challenges in the region. The upgraded Type-12 land-to-ship missiles are to be deployed at Camp Kengun in Japan’s southwestern prefecture of Kumamoto by the end of this month, completing the process of deployment, Japanese Chief Cabinet Secretary Minoru Kihara said without giving details. Army vehicles carrying the launchers and other equipment arrived past midnight in a highly secretive mission criticized by residents. Dozens of people stood outside of the
Minister of Economic Affairs Kung Ming-hsin (龔明鑫) yesterday assured the public that the nation is not facing an imminent power shortage as supply of liquefied natural gas (LNG) remains sufficient and there is no need to increase coal-fired power generation in the short term. Taiwan has secured 20 of the 22 LNG cargoes needed for this and next month, with the remaining two still under negotiation and expected to be secured soon, Kung said, urging the public not to worry. A sufficient supply of LNG supply means coal-fired generation should operate as normal, he said, describing speculation that the nation could face
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