European stocks fell as BHP Billiton Ltd. and Rio Tinto Group scrapped an iron ore joint venture and Royal Philips Electronics NV said it’s “cautious” on the outlook for sales. Asian shares and U.S. index futures declined.
BHP Billiton and Rio Tinto slid more than 2 percent in London trading. Philips, the world’s largest lighting company, sank 4.8 percent for the biggest drop in two months. BlueBay Asset Management Plc jumped 30 percent after agreeing to be bought by Royal Bank of Canada.
The Stoxx Europe 600 Index retreated 0.4 percent to 264.82 at 8:21 a.m. in London. The benchmark measure for European equities has climbed 2 percent this month amid speculation that the Federal Reserve will announce plans to stimulate economic growth at its November meeting. The gauge is still 2.7 percent below its April high.
“Given the recent run in global equities, it’s not surprising at all to see a little bit of profit taking,” said Ben Potter, a Melbourne-based research analyst at IG Markets Ltd.
Citigroup Inc. and Halliburton Co. are scheduled to release earnings before the start of New York trading today, while International Business Machines Corp. and Apple Inc. will report after market hours. Of the 21 S&P 500 companies to have announced results since Oct. 7, 15 have beaten analyst estimates for per-share income, according to data compiled by Bloomberg.
BOE Stimulus
The Bank of England will expand its stimulus program by 100 billion pounds ($160 billion) to aid the economic recovery, according to the Centre for Economics and Business Research. The central bank will also keep its benchmark interest rate at a record low of 0.5 percent until at least “late” 2012, the London-based group said yesterday.
European Central Bank President Jean-Claude Trichet rejected Bundesbank President Axel Weber’s call to end the bond purchase program that has provided a lifeline for European governments and banks trying to shore up their finances.
“This is not the position of the Governing Council, with an overwhelming majority,” Trichet said when asked to respond to Weber’s Oct. 13 call for an end to the program, according to a transcript of an interview published yesterday in Italian newspaper La Stampa.
U.S. Economy
In the U.S., a report today may show industrial production grew in September for the 14th time in the 15 months since the recession ended. Output at factories, mines and utilities increased 0.2 percent for a second month, according to the median forecast of 62 economists surveyed by Bloomberg News. Gains have cooled from the 0.5 percent average monthly advances in the first half of the year, mimicking the slowdown in growth.
BHP Billiton declined 2 percent to 2,155.5 pence and Rio slid 2.1 percent to 4,054.5 pence in London trading. The world’s No. 1 and No. 3 mining companies abandoned a plan to create the largest iron-ore exporter after regulators from Europe to Asia were concerned it would limit competition.
The changes demanded by regulators, including asset sales, were unacceptable to both companies, London-based Rio said today. Melbourne-based BHP confirmed the end of the deal to combine the two companies’ mines, railroads and ports in Australia’s remote Pilbara region in a separate statement.
Philips slid 4.8 percent to 22.73 euros, the biggest drop since Aug. 11, after saying it’s “cautious” on sales for the final three months of the year.
Third-quarter net income rose to 524 million euros ($728 million) from 174 million euros a year earlier, helped by cost cuts and a 154 million-euro gain from the sale of its stake in NXP Semiconductors NV, the Amsterdam-based company said today. Analysts had predicted profit of 358 million euros, the average of 18 estimates compiled by Bloomberg.
BlueBay rallied 30 percent to 488.2 pence after the London- based manager of fixed-income funds agreed to be bought by Royal Bank of Canada for about 963 million pounds.
BHP Billiton and Rio Tinto slid more than 2 percent in London trading. Philips, the world’s largest lighting company, sank 4.8 percent for the biggest drop in two months. BlueBay Asset Management Plc jumped 30 percent after agreeing to be bought by Royal Bank of Canada.
The Stoxx Europe 600 Index retreated 0.4 percent to 264.82 at 8:21 a.m. in London. The benchmark measure for European equities has climbed 2 percent this month amid speculation that the Federal Reserve will announce plans to stimulate economic growth at its November meeting. The gauge is still 2.7 percent below its April high.
“Given the recent run in global equities, it’s not surprising at all to see a little bit of profit taking,” said Ben Potter, a Melbourne-based research analyst at IG Markets Ltd.
Citigroup Inc. and Halliburton Co. are scheduled to release earnings before the start of New York trading today, while International Business Machines Corp. and Apple Inc. will report after market hours. Of the 21 S&P 500 companies to have announced results since Oct. 7, 15 have beaten analyst estimates for per-share income, according to data compiled by Bloomberg.
BOE Stimulus
The Bank of England will expand its stimulus program by 100 billion pounds ($160 billion) to aid the economic recovery, according to the Centre for Economics and Business Research. The central bank will also keep its benchmark interest rate at a record low of 0.5 percent until at least “late” 2012, the London-based group said yesterday.
European Central Bank President Jean-Claude Trichet rejected Bundesbank President Axel Weber’s call to end the bond purchase program that has provided a lifeline for European governments and banks trying to shore up their finances.
“This is not the position of the Governing Council, with an overwhelming majority,” Trichet said when asked to respond to Weber’s Oct. 13 call for an end to the program, according to a transcript of an interview published yesterday in Italian newspaper La Stampa.
U.S. Economy
In the U.S., a report today may show industrial production grew in September for the 14th time in the 15 months since the recession ended. Output at factories, mines and utilities increased 0.2 percent for a second month, according to the median forecast of 62 economists surveyed by Bloomberg News. Gains have cooled from the 0.5 percent average monthly advances in the first half of the year, mimicking the slowdown in growth.
BHP Billiton declined 2 percent to 2,155.5 pence and Rio slid 2.1 percent to 4,054.5 pence in London trading. The world’s No. 1 and No. 3 mining companies abandoned a plan to create the largest iron-ore exporter after regulators from Europe to Asia were concerned it would limit competition.
The changes demanded by regulators, including asset sales, were unacceptable to both companies, London-based Rio said today. Melbourne-based BHP confirmed the end of the deal to combine the two companies’ mines, railroads and ports in Australia’s remote Pilbara region in a separate statement.
Philips slid 4.8 percent to 22.73 euros, the biggest drop since Aug. 11, after saying it’s “cautious” on sales for the final three months of the year.
Third-quarter net income rose to 524 million euros ($728 million) from 174 million euros a year earlier, helped by cost cuts and a 154 million-euro gain from the sale of its stake in NXP Semiconductors NV, the Amsterdam-based company said today. Analysts had predicted profit of 358 million euros, the average of 18 estimates compiled by Bloomberg.
BlueBay rallied 30 percent to 488.2 pence after the London- based manager of fixed-income funds agreed to be bought by Royal Bank of Canada for about 963 million pounds.
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