Ericsson AB lost 2.6 percent after taking an 8 billion kronor ($1.2 billion) charge related to its wireless-chip venture with STMicroelectronics NV. (STM) UBS AG, Switzerland’s biggest bank, dropped 1 percent as it faces scrutiny in Hong Kong for possible misconduct linked to the city’s rates. SBM Offshore NV (SBMO) soared 13 percent after seeking to settle a dispute with Talisman Energy Inc.
The Stoxx Europe 600 Index (SXXP) retreated less than 0.1 percent to 281.62 at 10:10 a.m. in London, having swung between gains and losses at least six times. The benchmark measure is heading for a seventh straight month of gains and has rallied 15 percent this year as the European Central Bank announced an unlimited bond-buying program and the Federal Reserve began a third round of asset purchases.
“Investors won’t be taking any big positions from now until year end,” said Matthieu Giuliani, a fund manager at Banque Palatine SA in Paris, which oversees $5.3 billion. “As for the fiscal cliff, it’s in the best interest of both parties to find a solution. It’s normal that the opposition asserts its power to prolong things, but in the end they will reach an agreement.”
Standard & Poor’s 500 Index futures fell 0.1 percent today, while the MSCI Asia Pacific Index (MXAP) rose less than 0.1 percent as the Bank of Japan expanded its asset-purchase program.
Budget Talks
Officials from President Barack Obama’s administration told leaders of U.S. business and financial-services groups that negotiations with House Speaker John Boehner, a Republican, have deteriorated in the last 24 hours, according to a person familiar with the meeting.The officials told the group of eight industry representatives at the White House that Republican plans to move forward with Boehner’s alternative proposal on taxes and spending risks pushing the government past the deadline, said the person, who asked for anonymity to discuss the private talks. If lawmakers don’t reach an agreement by the end of the year, a package of more than $600 billion of automatic tax increases and spending cuts, will come into force in January.
Data on U.S. gross domestic product, home sales and leading indicators are among economic reports expected today.
Ericsson fell 2.6 percent to 64.60 kronor as the world’s largest maker of mobile-phone networks took the charge for writing down the value of ST-Ericsson. The company said it won’t buy a full majority of the unit after Geneva-based STMicroelectronics said it will exit the venture.
STMicroelectronics lost 1.2 percent to 5.31 euros in Milan.
UBS Probe
UBS (UBSN) slipped 1 percent to 15.05 Swiss francs. The Hong Kong Monetary Authority has started an investigation to see if there was wrongdoing by the bank in its submission of data for setting the Hong Kong Interbank Offered Rate, according to a statement from the de-facto central bank.SBM Offshore climbed 13 percent to 10.43 euros as the world’s largest maker of floating oil and gas output platforms sought to settle a dispute with Talisman and wrote off the value of a related operation. The company will sell a 9.95 percent stake to HAL Investments BV for $193 million to restore its balance sheet and meet banking covenants.
Cap Gemini SA (CAP), a French computer-services company, slid 3.6 percent to 33.24 euros. Accenture Plc, the world’s second- largest technology-consulting company, reported a decline in first-quarter sales of its advice.
Areva Declines
Areva SA (AREVA) lost 3.9 percent to 12.90 euros. The maker of nuclear reactors, offshore wind turbines and biomass plants cut its earnings forecast for 2013, citing financing delays at unspecified renewable energy projects carried out by clients.Rheinmetall AG (RHM), the maker of KS Kolbenschmidt engine pistons, dropped 2.8 percent to 36.43 euros as Citigroup Inc. downgraded the stock to sell from neutral.
Immofinanz AG (IIA) tumbled 4 percent to 3.28 euros, for the biggest drop in the Stoxx 600. The Austrian real estate company said first-half net income declined to 103.3 million euros from 265.1 million euros a year ago.
Source: Bloomberg
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