Stocks in Europe advance, Cadbury jumps
Tuesday, 8 September 2009
LONDON, Sept. 7 (Bloomberg): European and Asian shares advanced as the Group of 20 nations agreed on steps to shore up the global financial system and Kraft Foods Inc. offered to buy Cadbury Plc.
Barclays Plc, Britain's second-largest bank, gained 1 per cent as the G-20 vowed to sustain a nascent economic recovery. Cadbury surged 36 per cent after rejecting an offer from Kraft that valued the world's biggest confectioner at 10.2 billion pounds ($16.7 billion).
Europe's Dow Jones Stoxx 600 Index advanced 0.7 per cent to 235.58 at 8:20 a.m. in London. The measure fell 1.5 per cent last week on concern that a six-month, 48 per cent rally has outpaced the prospects for earnings and economic growth. The regional gauge is valued at 45.1 times profit, near the highest level since September 2003, according to weekly data compiled by Bloomberg.
The MSCI Asia Pacific Index climbed 1.1 per cent as Abu Dhabi agreed to buy Singapore's state-controlled Chartered Semiconductor Manufacturing Ltd. for S$2.5 billion ($1.8 billion) to create a challenger to the world's second-biggest maker of customized chips.
Futures on the Standard & Poor's 500 Index added 0.1 per cent today with US markets closed for the Labor Day holiday. The benchmark gauge for US equities trimmed its weekly decline on Sept. 4 as the pace of job losses slowed.
Barclays advanced 1 per cent to 355.1 pence. Finance chiefs from the G-20 nations concluded weekend talks in London with an agreement on a regulatory blueprint aimed at avoiding a repeat of the global financial crisis that spurred $1.6 trillion of credit-market losses and writedowns since 2007.
The G-20 measures include forcing banks to curb leverage and raise the amount and quality of assets they keep in reserve once growth takes hold.
"The G-20 has shown once again that governments from around the world can come together to agree on the global governance the new global economy needs," U.K. Prime Minister Gordon Brown said.
The panel that oversees the Basel Committee on Banking Supervision, meeting after the G-20 sought to extend their reach into banks' pay and profits, yesterday agreed lenders should raise the quality of their capital by including more stock. Financial firms also will have to introduce a leverage ratio and devise ways to boost reserves when the economy is robust.
Cadbury rallied 36 per cent to 772.5 pence, the biggest jump in at least 21 years. Kraft, the world's second-largest foodmaker, said the offer would create "a global powerhouse in snacks, confectionery and quick meals."
Deutsche Telekom AG increased 2.6 per cent to 9.64 euros. Vodafone Group Plc and Telefonica SA made informal offers to Deutsche Telekom to buy its T-Mobile UK unit for about 4 billion pounds, the Financial Times reported, without citing anyone.
Barclays Plc, Britain's second-largest bank, gained 1 per cent as the G-20 vowed to sustain a nascent economic recovery. Cadbury surged 36 per cent after rejecting an offer from Kraft that valued the world's biggest confectioner at 10.2 billion pounds ($16.7 billion).
Europe's Dow Jones Stoxx 600 Index advanced 0.7 per cent to 235.58 at 8:20 a.m. in London. The measure fell 1.5 per cent last week on concern that a six-month, 48 per cent rally has outpaced the prospects for earnings and economic growth. The regional gauge is valued at 45.1 times profit, near the highest level since September 2003, according to weekly data compiled by Bloomberg.
The MSCI Asia Pacific Index climbed 1.1 per cent as Abu Dhabi agreed to buy Singapore's state-controlled Chartered Semiconductor Manufacturing Ltd. for S$2.5 billion ($1.8 billion) to create a challenger to the world's second-biggest maker of customized chips.
Futures on the Standard & Poor's 500 Index added 0.1 per cent today with US markets closed for the Labor Day holiday. The benchmark gauge for US equities trimmed its weekly decline on Sept. 4 as the pace of job losses slowed.
Barclays advanced 1 per cent to 355.1 pence. Finance chiefs from the G-20 nations concluded weekend talks in London with an agreement on a regulatory blueprint aimed at avoiding a repeat of the global financial crisis that spurred $1.6 trillion of credit-market losses and writedowns since 2007.
The G-20 measures include forcing banks to curb leverage and raise the amount and quality of assets they keep in reserve once growth takes hold.
"The G-20 has shown once again that governments from around the world can come together to agree on the global governance the new global economy needs," U.K. Prime Minister Gordon Brown said.
The panel that oversees the Basel Committee on Banking Supervision, meeting after the G-20 sought to extend their reach into banks' pay and profits, yesterday agreed lenders should raise the quality of their capital by including more stock. Financial firms also will have to introduce a leverage ratio and devise ways to boost reserves when the economy is robust.
Cadbury rallied 36 per cent to 772.5 pence, the biggest jump in at least 21 years. Kraft, the world's second-largest foodmaker, said the offer would create "a global powerhouse in snacks, confectionery and quick meals."
Deutsche Telekom AG increased 2.6 per cent to 9.64 euros. Vodafone Group Plc and Telefonica SA made informal offers to Deutsche Telekom to buy its T-Mobile UK unit for about 4 billion pounds, the Financial Times reported, without citing anyone.