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European stocks fell from an 18- month high as Federal Reserve Chairman Ben S. Bernanke said the central bank’s plan to buy $45 billion a month of Treasuries will fail to offset the effects of the fiscal cliff.
European Union finance ministers agreed to put the European Central Bank in charge of all large euro-area lenders. About 200 banks will qualify for oversight by the ECB rather than national regulators, Financial Services Commissioner Michel Barnier said in Brussels today.
At a separate meeting, euro-area ministers approved a 49.1 billion-euro ($64 billion) installment of aid to Greece. The payment forms part of the nation’s two bailouts from the EU and the International Monetary Fund. The leaders of the 27 member states began a two-day summit today.
National benchmark indexes retreated in 11 of the 18 western European markets. The U.K.’s FTSE 100 (UKX) slid 0.3 percent and Germany’s DAX declined 0.4 percent. France’s CAC 40 decreased 0.1 percent.
Deutsche Bank lost 2.7 percent to 33.35 euros after saying that increased restructuring costs will cause the bank to miss profit forecasts this quarter. The average of four analyst estimates compiled by Bloomberg had predicted net income of 509.8 million euros.
UBS AG dropped 1.1 percent to 15.08 Swiss francs after a person familiar with the matter said U.S. and U.K. regulators may fine Switzerland’s biggest bank more than $1 billion for trying to rig global interest rates. The final figure may still change, three people familiar with the investigations said.
Centamin tumbled 47 percent to 27.7 pence, its biggest drop since its initial public offering in 2001. The company said that Egyptian General Petroleum Corp. will not supply it with diesel for the Sukari gold mine until it pays a bill for $65 million. Centamin called the claim illegal.
Volvo declined 4.3 percent to 91.85 kronor after Renault sold its remaining stake in the Swedish truck maker for 12.8 billion kronor ($1.9 billion). The French carmaker disposed of a 6.5 percent holding, saying it would use the proceeds to reduce debt and invest in France, Russia and China. Renault’s shares climbed 1.5 percent to 40.22 euros.
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