Europe Stocks Advance as Greece Concern Eases; Oil, Euro Climb
Kostas Tsironis/Bloomberg
The euro pared its biggest five-day decline in seven weeks after signs that Europe’s debt crisis is damping growth curbed demand for the currency.
The euro pared its biggest five-day decline in seven weeks after signs that Europe’s debt crisis is damping growth curbed demand for the currency. Photographer: Kostas Tsironis/Bloomberg
May 25 (Bloomberg) -- Kirk Hartman, chief investment officer at Wells Capital Management, talks about the euro region's crisis, the outlook for U.S. stocks and China's economic growth. Hartman also discusses Facebook Inc.'s initial public offering. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
European stocks, the euro and oil rose after Italian Prime Minister Mario Monti said most European Union leaders support joint bonds for the euro area. Asian equities dropped after bank officials said China’s biggest lenders may fall short of loan targets for the first time in at least seven years.
The Stoxx Europe 600 Index (SXXP) rose 0.4 percent at 8:14 a.m. in London, heading for its first week of gains this month. Standard & Poor’s 500 Index futures climbed 0.2 percent. The MSCI Asia Pacific Index (MXAP) retreated 0.3 percent, heading for a fourth week of losses. Oil in New York rose 0.3 percent. The euro gained 0.2 percent to $1.2558. French government bonds advanced, pushing the five-year yield down to the lowest on record.
Monti told Italian television station La7 yesterday that the majority of European Union leaders at a Brussels meeting this week backed joint euro-area bonds. China’s largest banks may miss their lending targets as the economic slowdown crimps demand for credit, according to three bank officials with knowledge of the matter.
“There’s an air of inevitability that we’ll get euro bonds,” said Donald Williams, chief investment officer at Platypus Asset Management Ltd. in Sydney, which manages about $1 billion. “Germany is going to have to compromise more than it was willing to a few months ago. Ultimately there will be some resolution there and the markets will start to head higher again,” he said in an interview with Susan Li on Bloomberg Television's "First Up."
Consumer Confidence
The euro pared its biggest five-day decline in seven weeks after signs that Europe’s debt crisis is damping growth curbed demand for the currency.
The euro has fallen versus all its 16 major counterparts except the Swiss franc since May 18. Figures next week may show consumer confidence in the currency bloc was little changed this month, while the jobless rate climbed in April to the highest in 21 years. The dollar advanced against all of its most-traded peers this week as Europe’s weakening economy boosted demand for the relative safety of the currency.
The MSCI Asia Pacific Index has fallen 0.9 percent this week and is heading for its longest weekly losing streak since November. The equity gauge has slumped 2 percent in 2012. The MSCI Emerging Markets Index retreated 0.1 percent, poised for a 10th week of losses. That would be its longest string of weekly declines since 1994.
The cost of protecting Asia-Pacific bonds from default dropped, according to credit-default swaps traders. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan declined 2 basis points to 196 basis points, Royal Bank of Scotland Group Plc prices show. The index is headed for its lowest closing level since May 22, according to CMA.
To contact Bloomberg News staff for this story: Chua Baizhen in Beijing at bchua14@bloomberg.net; Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net
To contact the editor responsible for this story: Richard Frost at rfrost4@bloomberg.net
Financial lessons an education for Kidderminster school pupils - kidderminstershuttle.co.uk
Financial lessons an education for Kidderminster school pupils
7:40am Friday 25th May 2012 in Local
WYRE FOREST’S MP found himself back at school as he joined students from King Charles I School in Kidderminster for a financial education lesson.
Conservative Mark Garnier, who has spoken to Prime Minister David Cameron about the benefits of making financial education compulsory in the school curriculum, saw how interactive white boards turned into working ATMs and giant cheques appeared as the school’s year 8 pupils learnt about the basics of banking, thanks to NatWest’s MoneySense for Schools programme.
Watched by the MP, teacher Chris Gibson, together with NatWest’s Kim Whitehouse, took the pupils through interactive exercises to help them understand more about what banks do, including how cheques and paying-in slips work and the practical tasks of balancing statements and using ATMs.
Ms Whitehouse, said: “Financial education for young people is more important today than it has ever been. It is essential that they start to understand about money management and bank accounts as soon as possible.”
Mr Garnier said: “Financial education is something that must be put on to the curriculum but until it is, it is incredibly important that financial organisations engage with schools to help ensure the next generation is financially literate.”
Chris Gibson, leader of King Charles I Lower School, said: “It was a pleasure having Mark with us and to show him how we are helping our students understand money.
“The students have really enjoyed and benefited from the activities. It’s very important that they gain basic money management skills and the NatWest MoneySense tools are an extremely practical and fun way of doing this.”
Stocks to watch at close on Friday - ninemsn
Stocks to watch on the Australian stock exchange at close on Friday:
CBA - COMMONWEALTH BANK OF AUSTRALIA - down 59 cents at $48.72
Commonwealth Bank of Australia has cut interest rates on some fixed rate home loans by up to 0.4 percentage points.
CSS - CLEAN SEAS TUNA LTD - up 0.5 cents at 3.5 cents
A mystery illness causing the death of its Yellowtail Kingfish will add at least $17.5 million to Clean Seas Tuna's full year loss.
EHL - EMECO HOLDINGS LTD - up two cents at 86.5 cents
Earthmoving equipment supplier Emeco has forecast full year profit growth of up to 41 per cent due to strong demand in Australia, Canada in Indonesia.
EKA - EUREKA ENERGY LTD - down 0.5 cents at 47 cents
AUT - AURORA OIL & GAS NL - down six cents at $3.20
Takeover target Eureka Energy has shrugged off criticism about its new $50 million debt facility after suitor Aurora Oil & Gas threatened to withdraw its offer.
HST - HASTIE GROUP LTD - in trading halt, last traded at 16 cents
Electrical and refrigeration company Hastie Group will take a $20 million hit to its full year profit after discovering "deliberate" irregularities in its financial accounts.
LEI - LEIGHTON HOLDINGS LTD - down 41 cents at $17.45
A Leighton Holdings company will build two large-scale "energy-efficient" data centres in NSW under a $182 million contract with the state government.
SGM - SIMS METAL MANAGEMENT LTD - down 75 cents at $11.50
Shares in Sims Metal Management have dropped six per cent in early trade after the scrap metal recycler warned of a weaker profit this financial year.
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