European Stocks Pare Advance as Deutsche Telekom Falls

European stocks pared their advance as telecommunications companies retreated, offsetting increased speculation that policy makers will do more to stimulate the economy after a report showed China’s inflation cooled. U.S. index futures were little changed, while Asian shares rose.
Nestle SA, which accounts for more than 3 percent of the Stoxx Europe 600 Index (SXXP), advanced 1.8 percent as higher prices helped increase the company’s revenue in Europe and the Americas. Deutsche Telekom AG (DTE) retreated 2.1 percent. Commerzbank AG (CBK) fell 3.9 percent after forecasting that net income in the second half will be lower than in the first half.

 

Deutsche Telekom AG retreated 2.1 percent. Photographer: Akos Stiller/Bloomberg

The Stoxx 600 added 0.1 percent to 269.34 at 9:31 a.m. in London, paring an earlier gain of as much as 0.5 percent. The gauge has rallied 15 percent since its 2012 low on June 4, with nine straight weeks of gains, as policy makers eased repayment terms for Spanish lenders and optimism grew that central banks will add more stimulus. Standard & Poor’s 500 Index futures decreased less than 0.1 percent today, while the MSCI Asia Pacific Index climbed 0.8 percent.
“For some time now, investors have feared that the Chinese economy was at risk of a hard landing, given the recent weakness in economic data,” said Michael Hewson, a market analyst at CMC Markets U.K. Plc. “This morning’s release of Chinese CPI data has reinforced speculation about further easing measures, given that inflation in July has continued its decline.”

Chinese Inflation

China’s consumer prices rose 1.8 percent from a year earlier, the National Bureau of Statistics said in Beijing. That compared with the 1.7 percent median forecast of 33 economists in a Bloomberg News survey and a 2.2 percent gain in June.
Slower consumer-price inflation may encourage policy makers to add further measures to reverse the economic slowdown. The leaders of the ruling Communist Party last week pledged to keep adjusting policies to ensure the economy expands at a stable rate this year.
Nestle SA (NESN) climbed 1.8 percent to 60.75 Swiss francs after the world’s largest food company said sales increased 6.6 percent, excluding acquisitions, divestments and currency shifts in the first half of the year. That beat the average estimate of 10 analysts in a Bloomberg survey for growth of 6.3 percent.

Source:Bloomberg,



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Gold Climbs as Slower Chinese Inflation Fuels Stimulus Optimism

Gold reached a one-week high in London on slowing Chinese inflation and expectations that a report may show rising U.S. jobless claims, boosting optimism central banks might take steps to bolster the global economy.
Growth in China’s industrial production also cooled in July, and central banks in Japan and South Korea saw little sign of price pressures, underscoring the scope for monetary stimulus should the European debt crisis deepen. Weekly U.S. jobless claims rose to 370,000, according to a Bloomberg News survey of economists before the Labor Department issues the figure today.

 

Bars of gold weighing 2.5-ounces are displayed at the Silver Lake Resources Ltd. stand at the Diggers and Dealers mining forum in Kalgoorlie, Australia. Photographer: Sergio Dionisio/Bloomberg

“Any relaxation of monetary policy is likely to be very positive for gold,” said Saeed Amen, an analyst at Nomura International Plc in London. “Gold isn’t fully pricing in further easing.”
Bullion for immediate delivery gained 0.2 percent to $1,615.19 an ounce by 8:58 a.m. in London. Prices reached $1,618.80, the highest level since July 31. December-delivery gold rose 0.1 percent to $1,617.70 on the Comex in New York.
“There is still QE thinking in the background of gold prices,” said David Lennox, a resource analyst at Fat Prophets in Sydney, referring to quantitative easing. “It won’t go away until we see the U.S. in full recovery mode. That’s certainly not happening at the moment.”
The Federal Reserve said Aug. 1 it would add stimulus if necessary to boost growth and cut an unemployment rate that has been 8 percent or higher for more than three years.
Consumer prices in China rose 1.8 percent from a year earlier, the lowest rate since January 2010, said the National Bureau of Statistics. Retail sales weakened and growth in industrial production was below 10 percent for a fourth month and at the lowest level since 2009, data showed.
Holdings in exchange-traded products backed by gold gained 0.3 percent to 2,411.7 metric tons yesterday, the highest since July 6, according to data compiled by Bloomberg.
Silver for immediate delivery added 0.4 percent to $28.1563 an ounce. Platinum climbed 0.5 percent to $1,416.12 an ounce, the highest since Aug. 3. Palladium rose 0.5 percent to $590.08 an ounce, the highest since Aug. 1.

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European Stocks Advance for Ninth Week on U.S. Economy

European stocks rose for a ninth week as U.S. economic data surpassed estimates, outweighing comments by the Federal Reserve and the European Central Bank that disappointed investors looking for more definitive steps to support growth.
Bankia SA (BKIA) posted the biggest gain in the Stoxx Europe 600 (SXXP) Index. Vestas (VWS) Wind Systems A/S rallied 11 percent after saying it has renegotiated its credit lines. Air France-KLM (AF) Group, Europe’s biggest airline, jumped 11 percent after reporting a narrower second-quarter loss.
The Stoxx 600 rallied 2.2 percent to 265.58 this week, its longest stretch of gains since January 2006. The benchmark gauge has climbed 13 percent over the nine-week period as policy makers eased repayment terms for Spanish banks and optimism grew that central banks will announce stimulus measures.
“There were some positive elements” from European Central Bank President Mario Draghi’s statement on Aug. 2, said Guillaume Duchesne, an equity strategist at BGL BNP Paribas SA in Luxembourg. “The ECB has a real will to help, but it’s a long, complex progress. The economic environment remains complex, but the U.S. payroll data is helping the market in the short term.”
Draghi stopped short of unveiling specific steps this week, disappointing investors looking for immediate action. While signaling that the ECB will join forces with governments to buy sovereign bonds, Draghi didn’t detail how the plan will work.

American Jobs

A U.S. report showed nonfarm payrolls in the world’s largest economy climbed more than forecast in July. Employers added 163,000 workers last month, according to the Labor Department. That exceeded the 100,000 median estimate of economists surveyed by Bloomberg News.
Confidence among American consumers unexpectedly rose for the first time in five months, a report on July 31 showed. The Confidence Board’s index increased to 65.9 last month from 62.7 in June. Economists in a Bloomberg survey projected a reading of 61.5.
Fed officials led by Chairman Ben S. Bernanke concluded a two-day meeting on Aug. 1 saying they “will provide additional accommodation as needed” to bolster the expansion. The Federal Open Market Committee also said it will “closely monitor” economic data and financial developments.
National benchmark indexes rose in 16 of the 18 western European markets. France’s CAC 40 Index gained 2.9 percent, the U.K.’s FTSE 100 Index advanced 2.8 percent, while Germany’s DAX Index jumped 2.6 percent.

Bankia, Vestas

Bankia, which became Spain’s third-largest lender when seven regional banks were combined, surged 33 percent, leading gains in shares of European lenders.
Vestas jumped 11 percent. The world’s biggest wind-turbine maker allayed investor concern that it may breach its loan covenants, leading to a default scenario. The company said its banks agreed to let it draw on credit lines and defer a test of the covenants.
Air France rallied 11 percent. The company’s operating loss narrowed to 66 million euros ($82 million) from 145 million euros a year earlier, helped by the introduction of a 2 billion- euro savings plan, Air France said on July 30. That beat the 163 million-euro average estimate of analysts in a Bloomberg poll.
A gauge of mining companies advanced 2.3 percent.
Vedanta Resources Plc (VED), the copper producer moving into oil, rallied 6.6 percent after saying on July 31 that fiscal first- quarter profit rose 27 percent as newly acquired Cairn India Ltd. added to gains.

Nokia Surges

Nokia advanced 12 percent. The stock on Aug. 1 completed its biggest seven-day increase in two decades. Chief Executive Officer Stephen Elop and several directors bought more than $1 million of the shares the previous week, the company said on July 31. Nokia’s surge was also helped by increasing sales of its Lumia smartphone series and speculation of a bid from Lenovo Group Ltd. Reuters on Aug. 1 reported that Lenovo denied it’s in talks to acquire the company.
Xstrata Plc (XTA), the target of a $27 billion takeover bid by Glencore International Plc, gained 6.8 percent. The company on July 31 said first-half production of thermal coal increased 17 percent after restarts and mine expansions.
Teleperformance, the French operator of call centers, rose 8.3 percent after reporting a 36 percent jump in first-half profit and reiterating its targets for revenue and earnings growth.
Hugo Boss AG (BOSS), the German luxury-clothing maker controlled by Permira Advisers, fell 11 percent after the company reported profit margins that missed estimates and sales growth that slowed in Asia.

Ophir, Spirent

Ophir Energy Plc (OPHR) tumbled 13 percent, for the worst performance in the Stoxx 600. The U.K. explorer in Africa said on Aug. 2 that a Tanzanian well showed less natural gas than projected.
Spirent Communications Plc (SPT) dropped 11 percent. The company said its growth in the second half may fall to a mid-to-low single-digit percentage increase due to economic uncertainty.
Veolia Environnement SA (VIE), the world’s biggest water company, lost 6.7 percent. The company’s first-half results were hurt by writedowns in Italy, the economic slowdown and a “contractual erosion” at Veolia’s water division in France, the Paris-based company said. Veolia plans to sell 5 billion euros of assets and reduce investment by 500 million euros this year and next.

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Rupee, Baht Drop the Most in Asia This Week on ECB, Fed Inaction

India’s rupee and the Thai baht dropped the most among Asian currencies this week as some investors deemed policy makers in Europe and the U.S. aren’t doing enough to revive global economic growth.
European Central Bank President Mario Draghi signaled on Aug. 2 that the monetary authority intends to join forces with governments to buy bonds to ease the crisis, while conceding that Germany has reservations. The Federal Reserve a day earlier stopped short of suggesting it’s about to embark on a third round of asset purchases.
“The market’s move has a lot to do with the ECB,” Philip Wee, a senior currency economist in Singapore at DBS Group Holdings Ltd., said yesterday. “It’s been a week of hope that central banks can come up with something. There was definitely disappointment.”
The rupee dropped 0.7 percent to 55.755 per dollar this week in Mumbai, according to data compiled by Bloomberg. The baht fell 0.1 percent to 31.56, the most since the five days ended June 22. Indonesia’s rupiah was little changed at 9,468.
The Bloomberg-JPMorgan Asia Dollar Index (DXY) was at 115.52 yesterday, compared with 115.21 on July 27. The Dollar Index, which tracks the greenback against the currencies of its six major trading partners, dropped 0.4 percent this week.

China Manufacturing

Taiwan’s dollar, South Korea’s won and Malaysia’s ringgit trimmed weekly gains after reports showed manufacturing and services in China grew at a slower pace in July than the previous month, damping the outlook for exports to the world’s second-largest economy.
Taiwan’s currency dropped 0.1 percent yesterday to NT$30.002 per dollar and was up 0.3 percent from July 27, according to prices from Gretai Securities Market. The won declined 0.3 percent to 1,134.85 for a five-day gain of 0.3 percent and the ringgit fell 0.1 percent to 3.1279, paring its weekly advance to 0.9 percent, data compiled by Bloomberg show.
“China’s condition remains sluggish,” said Shigehisa Shiroki, chief trader on the Asian and emerging-markets team at Mizuho Corporate Bank Ltd. in Tokyo. “It’s hard to be aggressively buying Asian currencies until China recovers.”
Government reports in South Korea this week showed factory output shrank in June from May, and a slump in exports worsened in July. In Indonesia, overseas sales dropped 16.4 percent in June, the biggest decrease since September 2009, resulting in a trade shortfall of 1.3 billion, official data showed Aug. 1.
“There will be no meaningful improvement in the trade balance without a rebound in commodity prices, which is unlikely in the near term,” said Eugene Leow, an economist at DBS Group in Singapore. “The global situation is still dicey, so capital flows to finance the current-account deficit will be volatile.”
Elsewhere, the Philippine peso advanced 0.1 percent this week to 41.855 per dollar. China’s yuan gained 0.1 percent to 6.3727 and was down 0.08 percent yesterday. Vietnam’s dong was little changed at 20,858 from July 27.

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Canada Dollar Rallies for 4th Week to Parity With U.S. Dollar

Canada’s dollar reached parity with its U.S. counterpart for the first time since May as stocks and crude oil rallied after July payrolls in America, the nation’s biggest trading partner, rose more than forecast.
The currency gained for a fourth week versus the greenback, the longest streak in six months, even as central bankers in the U.S. and Europe refrained from additional addition momentary stimulus to bolster economic growth. The nation’s employers added more jobs last month, according to median forecast in a Bloomberg News survey of economists before an Aug. 10 report from Statistics Canada.
“We’ve had this big, big reversal where the Canadian dollar has come back with a vengeance and plowed its way right through parity,” Eric Lascelles, chief economist in Toronto at Royal Bank of Canada’s RBC Global Asset Management unit, said in a phone interview. Investors had developed “unbelievable anticipation of central bank action, and that expectation was ultimately not fulfilled so the market was disappointed,” he said.
Canada’s currency, nicknamed the loonie, rose 0.2 percent this week to C1.0013 per U.S. dollar in Toronto. The currency, which last gained for four weeks during the period ended Feb. 3, is up 0.2 percent versus the greenback this month. One Canadian dollar buys 99.87 U.S. cents.

Price Swings

Implied volatility for one-month options on the Canadian dollar versus the greenback rose for the second week, reaching 6.54 percent. The five-year average is 12 percent. Implied volatility, which traders quote and use to set option prices, signals the expected pace of currency swings.
Decreased volatility makes investments of currencies of nations with higher benchmark interest rates more attractive because there is less risk of market moves erasing profits.
Futures traders reversed their bets that the Canadian dollar will decline against the U.S. dollar, figures from the Washington-based Commodity Futures Trading Commission show.
The difference in the number of wagers by hedge funds and other large speculators on an advance in the Canadian dollar compared with those on a drop -- so-called net longs -- was 12,449 on July 31, compared with net shorts of 2,432 a week earlier. Futures are agreements to buy or sell assets at a set price and date.

Moving Averages

The loonie traded stronger than its 50-, 100- and 200-day moving averages versus the greenback this week. The last time the two currencies traded on a one-to-one basis was May 15, when the loonie touched 99.90 cents to the greenback. Canada’s dollar has traded in 2012 as strong as 98 cents on April 27 and as weak as C$1.0447 on June 4.
Canadian government 10-year bonds declined for a second week, pushing yields up two basis points, or 0.02 percentage point, to 1.77 percent. The 2.75 percent securities maturing in June 2022 dropped 23 cents to C$108.83.
The loonie extended gains yesterday after a Labor Department report showed U.S. payrolls added 163,000 jobs following a revised 64,000 rise in June that was less than initially reported, Labor Department figures showed in Washington. The median estimate of 89 economists surveyed by Bloomberg News called for a gain of 100,000. Unemployment rose to 8.3 percent, from 8.2 percent.
“What’s good for the U.S. economy is generally good for Canada,” Shaun Osborne, chief currency strategist at Toronto- Dominion’s TD Securities unit, said in a telephone interview.

European Policy

The Canadian dollar rose against the euro Aug. 2 after ECB President Mario Draghi said details of a plan to buy enough sovereign bonds to remove doubts about the shared currency’s future would be fleshed out in coming weeks.
Investors should buy higher-yielding currencies such as the Canadian and Australian dollars against the euro, according to Greg Anderson at Citigroup Inc. Canada’s dollar reached a record high against the euro Thursday, trading as strong as C$1.2197, before dropping 0.4 percent for the week.
“The one puzzle in the Canadian dollar is that it’s been holding up better than one might have expected, given all the concerns about global growth,” Avery Shenfeld, chief economist at Canadian Imperial Bank of Commerce, said in a phone interview from Toronto. “Whatever jitters we have on global growth are now playing two ways on the Canadian dollar: they’re negative on the prices of resources we export, but a plus for bond inflows into a safe haven.”

Oil Rally

Oil surged the most in a month yesterday after service industries expanded at a faster pace, bolstering optimism about economic strength in the U.S., the world’s biggest crude- consuming country. Crude oil futures climbed 1.4 percent this week to $91.40 a barrel in New York.
Canada added 9,000 jobs in July, up from 7,300 in June, according to the median estimate of 19 economists surveyed by Bloomberg News before the report next week. The nation’s jobless rate remained at 7.2 percent, according to a separate survey.
The loonie fell 0.5 percent this week against nine major counterparts, according to the Bloomberg Correlation-Weighted Indexes. It has gained 2 percent this year, while the U.S. dollar lost 0.2 percent.
Canada’s dollar will end the year at C$1.01 per U.S. dollar, according to median estimate of 43 forecasters surveyed by Bloomberg News.

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Dollar Weakens Amid Risk Appetite, Speculation on Central Banks

The dollar fell against most of its major counterparts as risk appetite increased amid continued speculation that central banks may take further steps to boost economic growth.
The euro rose versus the greenback for a second week, the longest stretch since June, as members of German Chancellor Angela Merkel’s coalition signaled they won’t block European Central Bank President Mario Draghi’s plan to buy government bonds. Stocks rallied as U.S. employers added more jobs than forecast even as the unemployment rate rose to a five-month high. Federal Reserve President Ben S. Bernanke may discuss policy options in an Aug. 31 speech in Jackson Hole, Wyoming.
“Fed easing is still on the table,” Eric Viloria, senior currency strategist at Gain Capital Group LLC in New York, said yesterday in a telephone interview. “Draghi left a lot of uncertainties open. There is going to be some headline-watching now, and we expect the euro to grind lower.”
The dollar fell 0.5 percent to $1.2387 per euro this week in New York, after losing 1.3 percent in the five days ended July 27. The yen depreciated 0.5 percent to 97.19 per euro in its second weekly loss. The Japanese currency was little changed at 78.47 to the dollar.
The Dollar Index (DXY), which Intercontinental Exchange Inc. uses to track the greenback against the currencies of six major U.S. trade partners including the euro and the yen, fell 0.4 percent to 82.375. It dropped as much as 1.3 percent yesterday, the biggest intraday decrease since June 29.

Net Shorts

Futures traders decreased bets the euro will fall against the dollar, Commodity Futures Trading Commission data showed. The difference in the number of wagers by hedge funds and other large speculators on a decline in the euro compared with those on a gain -- so-called net shorts -- was 138,994 on July 31, compared with 155,066 a week earlier. Net shorts reached a record 214,418 on June 8.
The greenback lost 0.7 percent this week versus nine developed-nation counterparts tracked by the Bloomberg Correlation-Weighted Indexes. The euro was little changed, while Sweden’s krona was the best performer, rising 2 percent.
The Swedish currency was the biggest winner among its 16 most-traded peers this week, climbing 2.4 percent to 6.7063 per dollar and touching 6.7048, the strongest since May 1. Sterling was the worst performer, declining 0.7 percent to $1.5640.
The Standard & Poor’s 500 Index (SPX) rallied as much as 2 percent yesterday, rising for the first time in five days and erasing a weekly loss.

Flow Reversal

“Stocks have advanced greatly and held onto gains,” Carl Forcheski, a director on the corporate currency sales desk at Societe Generale SA in New York, said yesterday in a telephone interview. “Associated with that risk-on sentiment you normally see the dollar give up some ground through the reversal of safe- haven flows.”
The greenback fell against most major peers yesterday as stocks climbed after Labor Department figures showed U.S. payrolls added 163,000 jobs in July. That followed a revised 64,000 increase the previous month that was less than initially reported. The median estimate of 89 economists surveyed by Bloomberg News called for a gain of 100,000. The unemployment rate rose to 8.3 percent, from 8.2 percent.
“You got in the sweet spot for risk because while you had an upside surprise on the headline numbers, you still have the possibility of QE3 because the unemployment rate went up as well,” said Samarjit Shankar, a managing director for the foreign-exchange group in Boston at Bank of New York Mellon. “These forays into risk are very fickle, so one swallow does not a summer make, and Monday could be a very different day.”

Quantitative Easing

The central bank bought $2.3 trillion of assets in two rounds of the stimulus strategy called quantitative easing, or QE, between December 2008 and June 2011.
While Fed policy makers refrained at a meeting that ended Aug. 1 from taking further steps to stimulate the world’s largest economy, they said in a statement they will provide additional accommodation as needed amid a slowing economy and that they will monitor developments closely.
Bernanke is scheduled to speak at the Fed Bank of Kansas City’s conference in Jackson Hole at the end of the month. His speech at the event in 2010 set the stage for a second round of asset purchases.
New Zealand’s dollar climbed for a third week against its U.S. counterpart after S&P affirmed the nation’s credit rating and said its outlook is stable. The currency, nicknamed the kiwi, rose 1.1 percent to 81.89 U.S. cents and reached 81.99 cents yesterday, its highest level since April 30. The kiwi touched NZ$1.4967 per euro yesterday, the strongest since the shared currency began trading in 1999.

Aussie Gains

The Australian dollar rose against its U.S. counterpart on prospects Reserve Bank of Australia policy makers won’t cut the highest borrowing costs among major developed nations at an Aug. 7 meeting. The Aussie appreciated 0.8 percent to $1.0569 and climbed to $1.0580 on Aug. 2, its highest since March.
Implied volatility on three-month options for Group-of- Seven currencies fell to 8.77 percent yesterday, approaching the lowest level since November 2007, according to the JPMorgan G7 Volatility Index. It reached 8.32 percent on July 20 and rose to 9.83 percent on July 24. The five-year average is 12.4 percent.
Lower volatility makes investments in currencies of nations with higher benchmark interest rates more attractive because the risk in such trades is that market moves will erase profits. Key rates are 2.5 percent in New Zealand and 3.5 percent in Australia, versus zero to 0.25 percent in the U.S. and 0.75 percent in the euro bloc.

ECB Plan

The euro, stocks and commodities slid on Aug. 2 after ECB President Draghi failed to reassure investors that policy makers were ready to take immediate steps to curb Europe’s debt crisis.
ECB officials are working on a plan to buy government bonds in sufficient quantities to ease the region’s financial turmoil, Draghi said. Details will be released in coming weeks, he told reporters at a news conference in Frankfurt after a policy meeting. The central bank held its benchmark interest rate at a record low 0.75 percent.
Draghi pledged last week to do whatever it takes to preserve the shared currency.
“People are increasingly looking past the last week of Draghi and the ECB toward more fundamentally what the ECB is going to do that’s new,” Dan Dorrow, head of research in Stamford, Connecticut, at Faros Trading LLC, said yesterday in a telephone interview. “The fundamental that the market is latching onto now is that total political support for the European debt relief effort.”


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Pound Rises After BOE Holds Stimulus, Keeps Rate at Record Low

he pound rose against the dollar after the Bank of England left its bond-buying program at 375 billion pounds ($583.5 billion) and kept interest rates on hold.
Gilts rose after policy makers maintained their key rate at 0.5 percent, as predicted by all 53 economists surveyed by Bloomberg News. The central bank increased its bond purchases by 50 billion pounds last month to boost a U.K. economy in its first double-dip recession since the 1970s amid a deepening euro-region debt crisis.
“It’s very much a case of the bank being prudent in waiting to see how its current policies pan out and leaving a little room if the euro-zone crisis worsens,” Jeremy Stretch, head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London, said before the announcement.
The pound rose 0.2 percent to $1.5563 at 12:23 p.m. London time. It fell 0.2 percent against the euro to 78.82 pence.
Sterling has depreciated 1.5 percent in the past three months, the fourth-worst performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes amid the deteriorating economy. The dollar gained 3 percent, while the euro slid 4.8 percent.
The median forecast of 40 economists surveyed by Bloomberg was for so-called quantitative easing to be maintained. One analyst predicted an increase to 400 billion pounds.

BOE Toolkit

The Bank of England has expanded its toolkit with a Funding for Lending Scheme to unclog bank credit and help pull the country out of recession. The worsening outlook prompted banks including Morgan Stanley (MS) and Barclays Plc (BARC) to revise forecasts this week and predict more U.K. stimulus later this year.
The European Central Bank may announce a plan today to tackle the debt crisis that’s hurting global growth, even as it keeps its main rate at 0.75 percent, also an all-time low, according to another survey.
ECB President Mario Draghi said last week that he will do whatever is needed to preserve the 17-nation currency.
The yield on the benchmark 10-year gilt slid three basis points, or 0.03 percentage point, to 1.49 percent. It fell to a record 1.407 percent on July 23. The 4 percent bond due March 2022 rose 0.24, or 2.40 pounds per 1,000-pound face amount, to 122.345.

Shrinking Economy

The U.K. economy shrank the most since 2009 in the second quarter, the Office for National Statistics said on July 25. Manufacturing contracted the most in more than three years in July, Markit Economics reported yesterday.
U.K. gilts returned 3.9 percent this year, after surging 17 percent in 2011 as investors sought a haven from the euro- region’s debt crisis, indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies showed. German bunds gained 3.6 percent in 2012, with U.S. Treasuries earning 2.6 percent.
The 10-year gilt added seven basis points and the pound fell 0.4 percent versus the dollar after the Bank of England expanded its QE program by 50 billion pounds on July 5.

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