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European stocks climbed, rebounding from a weekly loss, as an overnight rescue deal between Cyprus and euro-area finance ministers lowered the nation’s risk of default and an exit from the currency union.
Cyprus won a 10 billion-euro international bailout after agreeing late yesterday to shrink its banking system, instead of a previous demand to impose a levy on all bank accounts. The accord with the “troika” of the European Central Bank, the European Commission and the International Monetary Fund was ratified by finance ministers from the 17-member euro area.
President Nicos Anastasiades agreed to shut down Cyprus Popular Bank Pcl, the country’s second-largest lender. The Bank of Cyprus Plc will take over viable assets of the failed lender, along with 9 billion euros in emergency loans, according to three European Union officials familiar with the matter.
The revised accord spares bank accounts with less than the insured limit of 100,000 euros. A loss of no more than 40 percent will be imposed on uninsured depositors at the Bank of Cyprus, two EU officials said. Uninsured depositors at Cyprus Popular would largely be wiped out, two other officials said.
Vodafone rose 2.5 percent to 187.95 pence after the Sunday Times reported, citing unnamed people familiar with the matter, that Europe’s largest mobile-phone operator held talks with Verizon to sell its stake in Verizon Wireless for $135 billion.
Metso surged 10 percent to 33.98 euros, the biggest increase since July 26. The Finnish maker of rock crushers is studying the possibility of separating its pulp, paper and power businesses into a new company that would be listed in Helsinki, according to a statement.
Remy Cointreau fell 1.7 percent to 90.29 euros after Nomura Holdings Inc. lowered its recommendation on the shares to reduce from neutral, citing a slowdown in China.
FTSE 100 6,446.22 +53.46 +0.84%
CAC 40 3,830.99 +60.70 +1.61%
DAX 8,013.76 +102.41 +1.29%
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