U.S.
Retailers record strong growth; jobless claims fall; service sector growth slowsNews that U.S. retail sales are growing at the fastest pace in four years added to positive investor sentiment this week. The International Council of Shopping Centers said that sales probably expanded at an average monthly rate of 4% in the first five months of the retail year that began January 31. Other data were consistent with signs of a gradual improvement in labor market conditions. Initial unemployment insurance claims fell 21,000 last week, to 454,000.
The
U.S.
State Street earnings upgrade kicks off second-quarter State Street
Google shares surged on Friday after the Chinese government renewed a license Google needed to continue to use its Chinese Web address. The renewal came after Google made a compromise with Chinese regulators and will enable Google to continue to provide Web search and local products to users in
Total to buy UTS
Merck to cut 15,000 jobs
Merck will close eight research labs and eight manufacturing plants as part of a previously announced plan to reduce operations after it acquired Schering Plough last year. The cuts are part of a plan to reduce 15%, or about 15,000 jobs, of the combined company's work force following the acquisition.
Global economic news
IMF ups world growth forecastThe International Monetary Fund said the world economy will likely grow faster than expected, but as major risks remain the pace of growth is likely to slow. The IMF raised its global growth forecast to 4.6% from the 4.2% projection made in April.
CEBS releases stress test details
The Committee of European Banking Supervisors (CEBS) released details on "stress tests" for 91 European banks. The CEBS tests are designed to assess how banks will be able to absorb losses on loans and government bonds.
It laid out the key features included in these tests that will be carried out by the CEBS in cooperation with the European Central Bank. The results are scheduled to be published on July 23. Lenders that account for 65% of the EU banking industry will be tested. Regulators are relying on the tests to restore public confidence in banks amid concerns that some lenders do not have enough capital to withstand a default by a European country.
BOE, ECB keep interest rates unchanged
The Bank of England and European Central Bank kept interest rates unchanged this week. The BOE also kept its bond stimulus plan in place as it tries to prevent the economy from falling into recession during the country's biggest budget squeeze since World War II. ECB President Jean-Claude Trichet said the eurozone economy would perform "much better" in the second quarter than the first and suggested that the ECB could lean toward cutting back a bond-buying program it began in May to help tackle the region's sovereign debt crisis. The IMF this week said the ECB may have to step up its bond purchases to convince investors it will not allow market tensions to escalate.
Bank of
The Bank of Korea increased its base interest rate for the first time since August 2008 as its economy rebounded to pre-crisis levels with the unemployment rate at 19-month lows.
Stay focused and diversified
In any market environment, we strongly believe that investors should stay diversified across a variety of asset classes. By working closely with your financial advisor, you can help ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon, and tolerance for risk. Diversification does not guarantee a profit or protect against loss.
The views expressed here are those of MFS®and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any MFS investment product. Individual securities mentioned are for illustrative purposes only and may not be relied upon as investment advice or as an indication of trading intent on behalf of any MFS product.
Securities discussed may or may not be holdings in any of the MFS funds. For a complete list of holdings for any MFS portfolio, please see the most recent annual, semiannual, or quarterly report.
Past performance is no guarantee of future results.
Sources: MFS research; The Wall Street Journal; The Wall Street Journal Online; Bloomberg News; Financial Times; boston.com.
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