|World business in brief: European stocks decrease 22 percent
|Trader Frank Marsollek checked his computers Friday at the Frankfurt, Germany, Stock Exchange.European markets
European stocks slid 22 percent, driving the Dow Jones Stoxx 600 Index to its worst week on record, on concern that the deepening credit crisis will push the economy into a recession.
Anglo Irish Bank Corp. Plc, Ireland¡¯s third-biggest lender, and ING Groep NV, the Netherlands¡¯ largest financial-services institution, plunged more than 42 percent, leading declines in banks and insurers. ArcelorMittal, the world¡¯s biggest steelmaker, sank 34 percent to its lowest close since 2005.
The slump in the Stoxx 600 Index to 205.13, down 56.3 this week, brings the measure¡¯s drop this year to 44 percent. More than $4 trillion has been erased from global equities this week even as the Federal Reserve, European Central Bank and four other central banks cut interest rates after the credit-market crisis stoked concern banks would run short of money.
Mexico¡¯s stock exchange is demanding companies give investors more information about their finances as the peso¡¯s 20 percent tumble in two weeks raises concern businesses will face growing foreign exchange-related losses.
The Bolsa Mexicana de Valores SAB halted trading in shares of more than 30 companies this week in a bid to increase disclosure, exchange President Guillermo Prieto Trevino said. Controladora Comercial Mexicana SAB, a supermarket operator, filed for bankruptcy yesterday after saying foreign-currency costs rose significantly. The stock tumbled, and trading was suspended.
Russian billionaires, including aluminum magnate Oleg Deripaska and soccer-club owner Roman Abramovich, lost more than $230 billion in five months during the nation¡¯s worst financial crisis since the 1998 default on its debt.
The combined wealth of Forbes magazine¡¯s 25 richest Russians tumbled 62 percent between May 19 and Oct. 6, based on the equity value of traded companies and analysts¡¯ estimates of closely held assets they own. The loss is four times larger than the fortune of the world¡¯s wealthiest man, Warren Buffett.
Moscow¡¯s benchmark Micex stock index declined 61 percent since its peak in May.