U.S. Jobless Data Weighs On Europe

LONDON -- Economic data from the United States weighed on European stocks again as markets entered the third quarter, with figures on unemployment dampening hopes of a speedy recovery. In its weekly tally of new unemployment claims, the U.S. Labor Department showed a rise to 551,000, from an upwardly revised 534,000 the week before; the data sent Wall Street lower to start the day Thursday.Over in Europe, the Dow Jones Euro Stoxx index of 50 leading shares was down 2.2% at the close in trading, with London's FTSE 100 down 1.7%, France's Cac 40 2% (at the close) and Frankfurt's Dax 2.1%. Yet one of the strongest movers in Europe was reinsurance giant Munich Re ( MURGF - news - people ), up 1.9% to 111.12 euros ($161.63) in afternoon trading in Frankfurt. Around 1.3 million of its shares, or about 20% more than the usual daily average, were traded after executives told the market that the firm was resuming its share buyback program to purchase 1 billion euros' ($1.5 billion) worth of its own shares, signaling confidence in its underlying portfolio of bonds, as well as its own stock.Elsewhere, shares of Tandberg ( TDBGF - news - ...
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Munich Re Opts For Caution

Munchener Rueck, the German re-insurer better known as Munich Re, said Tuesday that it was abandoning a target it had set itself for 2010, on the grounds that it will have to tread cautiously in its investment strategy, having been badly burnt last year."We remain cautious and will not compensate for falling returns…by taking higher investment risks," said Chief Financial Officer Joerg Schneider, as the firm released its annual results for 2008. As a result the firm's investment result will be well below the long-term target of 4.5% return, while its aim of delivering 18.00 euros ($22.72) earnings per share by 2010 was no longer realistic, it said. (other-otc: MURGF - news - people ), which like the rest of the sector invested the premiums it earned on the insurance cover it provides, saw investment income suffer amid the market turmoil. Investment revenue tumbled 36.8%, to 5.8 billion euros ($7.3 billion) in 2008. The firm invests mostly in fixed income, corporate and government bonds. While it has suffered losses on its equity portfolio, and write-downs on its corporate bonds, falling interest rates will hurt its investments in government bonds. Analysts are also not ruling out the possibility that it could suffer write-downs on its government bonds, given the growing economic troubles of countries such as Spain and Ireland. Munich Re shares fell 1.0%, or 89 euro cents ($1.12), to 91.27 euros ($115.24), on Tuesday morning in Frankfurt, as it reported that its fourth quarter profits tumbled 75.9%, to 133.0 million euros ($166.99). Annual profits fell 60.1%, to 1.5 billion euros ($1.9 billion). ...
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Munich Re Opts For Caution

Munchener Rueck, the German re-insurer better known as Munich Re, said Tuesday that it was abandoning a target it had set itself for 2010, on the grounds that it will have to tread cautiously in its investment strategy, having been badly burnt last year."We remain cautious and will not compensate for falling returns…by taking higher investment risks," said Chief Financial Officer Joerg Schneider, as the firm released its annual results for 2008. As a result the firm's investment result will be well below the long-term target of 4.5% return, while its aim of delivering 18.00 euros ($22.72) earnings per share by 2010 was no longer realistic, it said. (other-otc: MURGF - news - people ), which like the rest of the sector invested the premiums it earned on the insurance cover it provides, saw investment income suffer amid the market turmoil. Investment revenue tumbled 36.8%, to 5.8 billion euros ($7.3 billion) in 2008. The firm invests mostly in fixed income, corporate and government bonds. While it has suffered losses on its equity portfolio, and write-downs on its corporate bonds, falling interest rates will hurt its investments in government bonds. Analysts are also not ruling out the possibility that it could suffer write-downs on its government bonds, given the growing economic troubles of countries such as Spain and Ireland. Munich Re shares fell 1.0%, or 89 euro cents ($1.12), to 91.27 euros ($115.24), on Tuesday morning in Frankfurt, as it reported that its fourth quarter profits tumbled 75.9%, to 133.0 million euros ($166.99). Annual profits fell 60.1%, to 1.5 billion euros ($1.9 billion). ...
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