By Adam Haigh - Jan 6, 2012 6:31 PM GMT+0700
Jan. 6 (Bloomberg) -- Barry Knapp, head of U.S. equity strategy at Barclays Capital, discusses the outlook for global stocks and his recommendation of technology, energy and health-care stocks. He speaks with Erik Schatzker on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
Jan. 6 (Bloomberg) -- Marino Valensise, chief investment officer at Baring Asset Management Ltd., discusses the outlook for the European and U.S. economies and his investment strategy. He speaks with Mark Barton on Bloomberg Television’s “On the Move.” (Source: Bloomberg)
European (SXXP) stocks advanced, with the Stoxx Europe 600 Index extending its third weekly gain, before a report on American payrolls that may show the recovery in the world’s largest economy is intact. U.S. index futures fluctuated and Asian shares fell.
Vodafone Group Plc (VOD), the world’s largest mobile-phone operator, climbed 1.9 percent after Goldman Sachs Group Inc. advised buying the shares. Mitchells & Butlers Plc (MAB), the Birmingham, England-based pub owner, jumped 4.5 percent after Morgan Stanley recommended the stock. Clariant AG (CLN) rallied 2.6 percent as UBS AG added the stock to its list of key calls.
The benchmark Stoxx 600 (SXXP) rose 0.3 percent to 248.14 at 11:29 a.m. in London, paring gains of as much as 0.6 percent after data showed that German factory orders declined in November. The gauge has advanced 1.5 percent this week as investors turned their attention to better-than-estimated U.S. economic data. The March contract on the Standard & Poor’s 500 Index slid less than 0.1 percent today and the MSCI Asia Pacific Index retreated 0.9 percent.
“There is a recovery” in the U.S., said Marino Valensise, who oversees 51 billion euros ($65 billion) as chief investment officer at Baring Asset Management Ltd. in London. “There are very good signs coming from the private sector. Unemployment may be going lower from here.” He spoke in a Bloomberg Television interview with Mark Barton.
The Stoxx 600 has rallied 15 percent from last year’s lowest level Sept. 22 as U.S. economic data showed the recovery is gathering pace and optimism grew that euro-area policy makers will contain the region’s debt crisis. Markets are closed in Greece, Finland, Sweden and Norway today for a holiday.
U.S. Jobs
The U.S. economy probably generated 155,000 jobs in December, compared with 120,000 the previous month, based on estimates before a Labor Department report at 8:30 a.m. Washington time today. The unemployment rate (USURTOT) rose after dropping in November to the lowest level in more than two years, the report may also show.
Euro-area consumer confidence (EUCCEMU) fell to the lowest in more than two years and unemployment remained at a 13-year high, data released today showed.
An index (EUESEMU) of executive and consumer sentiment in the 17- nation euro area fell to 93.3 in December from a revised 93.8 in the previous month, the European (SXXP) Commission in Brussels said today. That’s in line with the median of 19 economists’ estimates in a Bloomberg survey. The unemployment rate held at 10.3 percent in November, a separate report showed.
German Support
European Central Bank Governing Council member Klaas Knot said Germany should support raising the European emergency fund to help end the debt crisis.
“The most important obstacle lies in Germany, not in the Netherlands,” Knot said in an interview on Dutch public television last night. “I think that more money is needed and we will use the time to convince our German colleagues.”
Stocks earlier pared gains as German factory orders dropped the most in almost three years in November as the euro region’s economy edged toward a recession and global demand weakened.
Vodafone climbed 1.9 percent to 180.6 pence after Goldman Sachs upgraded the shares to “buy” from “neutral,” saying a merger between the British company and Verizon Communications Inc. may be “attractive.”
Mitchells & Butlers advanced 4.5 percent to 240.2 pence. The operator of Harvester and Toby Carvery chains was upgraded to “overweight” from “equal weight” at Morgan Stanley.
Clariant, EasyJet
Clariant rose 2.6 percent to 10.45 francs after UBS said analysts in the market have cut the company’s earnings forecasts “too far.”
EasyJet Plc rose 2.2 percent to 391.9 pence after reporting a 13 percent increase in passenger numbers in December, compared with the same month in the previous year.
ITV increased 2.2 percent to 71 pence after Morgan Stanley upgraded the U.K.’s largest commercial broadcaster to “overweight” from “equal weight,” saying the media industry is in “structurally better shape with the long digital de- rating of the early 2000s now largely over.”
UniCredit (UCG) SpA tumbled 12 percent to 3.96 euros, extending its decline in the four days through today to 39 percent. Italy’s biggest bank plans a rights offer at a price discount of 43 percent to the Jan. 3 closing price, excluding the value of rights.
To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
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