Europe Stocks Rebound From Yesterday’s Slide; Shire Gains - Bloomberg Europe Stocks Rebound From Yesterday’s Slide; Shire Gains - Bloomberg

Tuesday, June 26, 2012

Europe Stocks Rebound From Yesterday’s Slide; Shire Gains - Bloomberg

Europe Stocks Rebound From Yesterday’s Slide; Shire Gains - Bloomberg

European stocks fluctuated between gains and losses as investors awaited reports on U.S. consumer confidence and home prices and a summit of European Union leaders. U.S. index futures advanced, while Asian shares fell.

Bayerische Motoren Werke AG (BMW) slid 3 percent after Citigroup Inc. cut its recommendation on the world’s biggest maker of luxury vehicles. EON AG and GDF Suez SA led gains in utilities as Bank of America Corp. upgraded the shares. Adecco (ADEN) SA rose 4.6 percent after the recruitment company said it plans a 400 million-euro ($500 million) buyback.

The Stoxx Europe 600 Index (SXXP) advanced 0.2 percent to 243.34 at 12:06 p.m. in London, having swung between gains and losses at least 10 times. The benchmark measure has fallen 11 percent from its 2012 high on March 16, bringing the decline in the first six months of the year to 0.5 percent, amid concern that Greece will be forced to leave the euro.

“The market is holding its breath, waiting for the summit and then the next European Central Bank meeting,” said Jerome Forneris, who helps manage $8.5 billion at Banque Martin Maurel in Marseille. “We are hoping for a mutualization of debt, something that would resemble euro bonds. We think Germany will take one step toward European countries and the European countries will take a step toward Germany to reach a compromise.”

U.S. Futures

Standard & Poor’s 500 Index futures added 0.3 percent today. The MSCI Asia Pacific Index slipped 0.2 percent for a fourth day of losses as HSBC Holdings Plc cut its growth forecasts for China.

German consumer confidence will gain for the first time in five months in July as rising wages outweigh growing concerns that the sovereign debt crisis is damping economic growth, GfK SE said today. The Nuremberg-based market research company forecast that its consumer-sentiment index, based on a survey of about 2,000 people, will increase to 5.8 next month from 5.7 in June. Economists had predicted a decline to 5.6, according to the median of 22 estimates in a Bloomberg survey.

In the U.S., the S&P/Case-Shiller index of property values in 20 cities is due for release at 9 a.m. New York time. The gauge fell 2.5 percent in April from a year earlier after a 2.6 percent drop the previous month, according to the median forecast of 28 economists in a Bloomberg survey.

The Conference Board’s consumer-confidence index decreased to 63 this month from 64.9 in May, figures from the New York- based private research group will show at 10 a.m., according to a Bloomberg survey of economists.

Spanish Debt

The Stoxx 600 earlier dropped as much as 0.3 percent after demand declined and yields rose at an auction of Spanish debt.

Spain sold three-month bills at an average 2.362 percent, compared with 0.846 percent at the last auction on May 22, and six-month bills at an average rate of 3.237 percent, compared with 1.737 percent last month. Demand for the three-month securities was 2.6 times the amount sold, compared with 3.95 times in May, while the bid-to-cover ratio for the six-month bills was 2.82 compared with 4.3.

“The market is very focused on the spread so is taking this negatively,” said Arnaud Scarpaci, a fund manager at Agilis Gestion SA in Paris, referring to the Spanish sale. “It’s difficult to appreciate that yield so investors are cautious.” Agilis Gestion oversees about $84 million.

BMW Drops

BMW lost 3 percent to 53.28 euros as Citigroup cut its recommendation on the shares to neutral from buy, citing more challenging automobile markets.

A gauge of automakers had the biggest decline of the 19 industry groups in the Stoxx 600. Daimler AG (DAI) slipped 2.1 percent to 33.16 euros and Fiat SpA (F) fell 1.5 percent to 3.68 euros.

A measure of utilities in the Stoxx 600 gained 1.3 percent as Bank of America analysts raised their recommendations on EON, GDF Suez (GSZ) and Endesa SA (ELE) to buy from neutral.

EON, Germany’s biggest utility, climbed 2.4 percent to 15.74 euros. France’s GDF Suez increased 1.3 percent to 17.80 euros and Spain’s Endesa advanced 1.6 percent to 13.13 euros.

Adecco, the world’s largest supplier of temporary workers, increased 4.6 percent to 39.02 Swiss francs. The company said its buyback program will start in mid-July and be funded through debt.

Stagecoach Group Plc (SGC), the operator of Britain’s busiest commuter-train service, advanced 5.6 percent to 263.8 pence. The company reported earnings that exceeded analysts’ estimates, increased its final dividend and said the outlook for its bus and rail operations is positive.

Aixtron, Shire

Aixtron SE, a maker of equipment for the semiconductor industry, slipped 2.9 percent to 10.57 euros. UBS AG reduced its share-price estimate by 14 percent to 12 euros.

Shire Plc (SHP) advanced 2.1 percent to 1,779 pence as analysts advised buying the U.K. drugmaker after yesterday’s 11 percent plunge. Societe Generale SA and Berenberg Bank each upgraded their recommendations on the drugmaker to buy from hold after the shares sank the most in more than nine years yesterday as U.S. drug regulators unexpectedly approved a copycat version of Shire’s second-biggest selling drug.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

Enlarge image Most European Stocks Gain Before Debt Auctions

Most European Stocks Gain Before Debt Auctions

Most European Stocks Gain Before Debt Auctions

JB Reed/Bloomberg

30mg tablets of Shire Plc's Adderall XR. Shire gained 1.7 percent to 1,773 pence. Societe Generale SA and Berenberg Bank each upgraded their recommendations on the drugmaker to buy from hold. The shares plunged the most in more than nine years yesterday as U.S. drug regulators unexpectedly approved a copycat version of Shire’s second-biggest selling drug.

30mg tablets of Shire Plc's Adderall XR. Shire gained 1.7 percent to 1,773 pence. Societe Generale SA and Berenberg Bank each upgraded their recommendations on the drugmaker to buy from hold. The shares plunged the most in more than nine years yesterday as U.S. drug regulators unexpectedly approved a copycat version of Shire’s second-biggest selling drug. Photographer: JB Reed/Bloomberg



Pocket Money: The foundation of financial literacy - MyFinances.co.uk

Tuesday, 26 June 2012 11:04

By  Dr. James Lane, Director of Education at Pora Ora, a 3D virtual world for children.

We may be living in a financial crisis riddled with debt, but if we learn from the mistakes that we have made, hopefully our children will not have to follow in out credit crunched footsteps.

Who would have thought that pocket money, which is often predestined to be spent on 'pick and mix' sweets, comic books, trading cards and the latest playground craze, would be so important?

Pocket money can play a key role in introducing your child to the financial world, and can be a fantastic way of ensuring a positive relationship with it in the future. Children need to understand the value of money, where it comes from and where it goes when they have spent it.

Money saving expert Martin Lewis argues that borrowing money has lost its stigma. Whilst there are many valid reasons to borrow - such as for higher education or buying a house, debt should not always be seen as an enabler. Being a debt binger who relies on their plastic to fund an unsustainable lifestyle will only lead to misery.

Martin Lewis makes the highly valid point that children need to learn the cycle of money. He suggests the best way to do this is to take them to a supermarket. At the checkout ask them why they think the sweets and chocolate are placed so near the till, then explain to them that it is “a supermarket’s job to make money, so they put the sweeties there so you won’t forget to ask mummy or daddy for them; that way they might make a little bit more money,".

By educating children into understanding that there are many companies out there who spend a great deal of money to entice them to spend, lets children see the bigger picture.

There are many questions surrounding pocket money, such as when should children be given pocket money? Whilst this can be a personal preference, around the age of 5 or 6 years is a good age to start.

Introducing the concept of the value of money will complement what your child will be learning in school in terms of their maths education. Children will be able to see a connection between what they have learned in school with what happens outside of school.

The next question is how much money should the child receive? Too much and many of the lessons that we as parents hope they grasp will fly out of the window. We want children to understand that they will sometimes have to put money aside to save up.

The amount of money for a 6 year old should be quite modest. We are not attempting to turn them into the next Alan Sugar just yet, we are simply trying to develop an understanding of the value of money and how much items cost.

In addition, we want them to discover the persistence and determination required to save up for something they really want, helping to support the feeling of satisfaction that comes from working towards and achieving a goal.

Make sure that you never just give your child pocket money, ask them what they are going to do with it. When they want to purchase something, ask them why. This will help children to develop a practical attitude towards their spending and also learn to weigh up the pros and cons.

Pocket money is a great way of introducing children to learn financial literacy from an early age. Giving children the opportunity to earn more money through additional chores will help children begin to understand the financial benefits that come from hard work. Furthermore, it is imperative that we also teach our children about their role as a consumer. Advertisers and marketers have one aim – and that is to sell. Teaching children to be critical and realistic about advertising and marketing as they get older is important.

Over the last 20 years we have moved to a cashless society, where transactions are completed by plastic and credit is easier to come by. We can make purchases online, at any time. Now more than ever, the opportunities for consumption are endless. We need to ensure that our children understand that cashless transactions of any sort still involve money and that if we do buy something on a credit card for example, we will still have to repay the money.

While it’s great to talk to your children about money in this way, always ensure it is done in a balanced way – we don't want to burden them. Gradually introduce financial topics and be willing to answer questions. In Pora Ora children can earn roobles through playing games. Children soon learn that if they want to redecorate their Pora Pad, change their outfit or buy a magic potion, they need to have enough roobles. If they don't then they can't have it. It's a simple but worthwhile lesson.

Pora Ora can be used for free at www.poraora.com whilst the company have just launched a kickstarter campaign at www.poraora.com/kickstarter
 



Macau casino stocks slide on visa concerns - The Guardian

Business Development Manager

Islington | £30,000 – £34,000

BODY & SOUL


No comments: