European Stock Fall Before Summit As Soros Warns on Euro
European Stock Futures Decline Before Leaders' Summit
European stocks declined for a third day as European Union leaders prepare for this week's summit in Brussels. U.S. index futures and Asian shares retreated.
BHP Billiton Ltd. (BLT) lost 0.9 percent and Rio Tinto Plc dropped 1.5 percent as UBS AG cut its profit outlook for the mining companies. Shire Plc slid 10 percent after regulators approved a submission from a rival to copy its hyperactivity medicine. Anheuser-Busch InBev NV (ABI) rose 0.6 percent after the company was said to be close to buying the remainder of Mexico's Grupo Modelo SAB.
The Stoxx Europe 600 Index (SXXP) fell 0.4 percent to 245.6 at 8:06 a.m. in London. The gauge fell at the end of last week after German business confidence slid to two-year low, adding to concern that Europe's debt crisis is derailing growth. The measure is down 9.9 percent from its high in March. It has still gained 0.4 percent so far this year. Standard & Poor's 500 Index futures slid 0.6 percent today, and the MSCI Asia Pacific Index (MXAP) also dropped 0.6 percent.
"This week's crucial potential market moving development from the euro zone in the shape of the two-day summit does not begin until Thursday," Ian Williams, a strategist at Peel Hunt LLP in London wrote in a note to clients. "It may make for some nervous trading in the next couple of days."
Germany will confront an increasingly united bloc of euro- area nations demanding more ambitious policies to save the currency union this week. Leaders will attend pre-summit meetings as they work to narrow differences before the June 28- 29 gathering.
Soros Call
Billionaire investor George Soros called on Europe to start a fund to buy Italian and Spanish bonds, warning that a failure by leaders this week to produce drastic measures could spell the demise of the currency.
France and Italy are urging Germany to take decisive action to end the 2 1/2-year-old debt crisis after Spain's 10-year bond yields jumped to more than 7 percent last week, a level that economists consider unsustainable.
"There is a disagreement on the fiscal side," Soros, 81, said in an interview with Bloomberg Television. "Unless that is resolved in the next three days, then I am afraid the summit could turn out to be a fiasco. That could actually be fatal."
The Bank for International Settlements said in its annual report released yesterday that central banks are facing the limit of their ability to boost economic growth.
Central banks are being "cornered into prolonging monetary stimulus," the Basel, Switzerland-based BIS said. "Both conventionally and unconventionally, accommodative monetary policies are palliatives and have their limits."
U.S. Data
U.S. data today may show demand for new homes increased in May for a second month as mortgage rates fell. Sales climbed to a 346,000 annual rate, up 0.9 percent from 343,000 in April, according to the median economist forecast in a Bloomberg News survey.
BHP fell 0.9 percent to 1,753.5 pence and Rio Tinto Group (RIO) slid 1.5 percent to 2,938 pence as UBS downgraded earnings estimates for both companies by 4 percent due to Australia's mining and carbon taxes.
SABMiller Plc slid 1.7 percent to 2,462 pence after Liberum Capital downgraded the shares to sell, citing the increased possibility that InBev will buy Modelo.
Shire lost 10 percent to 1,767 pence after U.S. regulators approved a submission from Actavis, a generic drugmaker aiming to copy Shire's Adderall XR drug. Shire said in a statement it continues to expect to deliver good full-year 2012 earnings growth and to "remain competitive in the Adderall XR marketplace."
InBev Deal
InBev added 0.6 percent to 55.95 euros. The world's biggest brewer is close to buying the remainder of Mexico's Modelo for more than $12 billion, according to a person with knowledge of the matter.
The purchase may be announced as soon as this week, said the person, who asked not to be identified as the discussions are confidential. The deal isn't completed and may still fall through, the person said.
Aer Lingus Group Plc gained 1.1 percent to 1.08 euros after the Sunday Business Post reported that Turk Hava Yollari AO, or Turkish Airlines, may bid for the Irish government's 25 percent stake in the airline or make a joint offer with another carrier.
An external spokeswoman for Aer Lingus, who asked not to be named, declined to comment. A Transport Ministry spokesman didn't immediately respond to a text message requesting comment.
To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
Marcelo T. Teixeira
Nenhum comentário:
Postar um comentário