Europe Joins Probe Into Shady Forex Dealing

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Credit: Reuters/Mike Blake BRUSSELS | Tue Oct 8, 2013 6:40pm EDT BRUSSELS (Reuters) – AT&T Inc Chief Executive Randall Stephenson on Tuesday said that he sees a “huge opportunity for somebody” in Europe to invest in mobile broadband and reap the big profits already being generated from such services in the United States. Stephenson, who has been exploring opportunities for AT&T to expand into Europe, said Europe has the potential to be “incredibly exciting” during his appearance at an industry conference held by ETNO, the European telecommunications lobby. However, the executive said that Europe needs to make big changes to its mobile spectrum policy in order to spur much needed investments in networks there. “I continue to be fascinated and impressed by how slow mobile broadband is moving in Europe. So I think of this as a huge opportunity for somebody,” said Stephenson. AT&T has been eyeing Europe since the beginning of the year, and has considered options including pan-European player Vodafone and Britain’s largest mobile carrier EE, a joint venture of Orange and Deutsche Telekom, according to sector bankers. But Stephenson told the audience of lobbyists, regulators and investors that Europe need to overhaul its regulatory policies on spectrum in order to realize its potential. For example he said, it would be easier for telecom operators in Europe to invest in their networks if they were able to buy long-term spectrum licenses and if spectrum policies were similar across the region’s different countries. “I know most of the CEOs here and they are pretty smart people who like to earn money for their shareholders. So if the investment case were there they would be doing more,” Stephenson said. “There will need to be a regulatory re-think.” Europe’s 28 member states still sell mobile licenses country by country and there is little standardization on the bands used, complicating the process of rolling out networks and preventing cross-border usage. Smartphones often need different chipsets to be able to work in different European markets, for example.

Back in 2009, Hyundai was also able to capitalize on government subsidies passed in several European countries that encouraged car buying; the company was better equipped than its rivals to handle the additional demand. Recently, the new i10 model has been a top seller for Hyundai in Europe and investors should watch for continued strength in its sales. The company plans to sell 74,000 i10s in 2014, which would increase the company’s share of the mini-car segment to about 6.3%. If Hyundai’s competitors change their focus to vehicles that cater to more affluent customers, the company may be able to gain a following among Europe’s more cost-conscious car buyers. Two Automakers Surging in China There’s good reason to believe that the most successful investors over the next few decades will be those with exposure to China’s massive and growing population of domestic consumers. And there are few things that these consumers are likely to purchase with more enthusiasm than cars and trucks. In this brand-new free report, our analysts get out in front of this trend by identifying two automakers that are poised to surge along with China’s middle class. If you want to be among the smart investors who get rich from this growing trend, then you’d be well advised to instantly download our free report on the topic by clicking here now. Eileen Rojas has no position in any stocks mentioned. The Motley Fool recommends General Motors. Try any of our Foolish newsletter services free for 30 days .

Europe ETFs: Investors Return in a Big Way

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Hyundai’s Love Affair With Europe

Markets closed Europe ETFs: Investors Return in a Big Way By | ETF Trends 16 hours ago 43.50 -0.4500 Talk about a stellar quarter. VGK and IEV were also two of the 10 best asset-gathering ETFs in the just completed quarter. VGK, the largest Europe ETF by assets, raked in $3.83 billion in new investments in the July-September quarter. EZU brought in a tidy $2.99 billion. Improved fundamentals, attractive valuations and, in some cases, attractive yields are compelling investors to revisit Europe ETFs. In August, S&P Capital IQ said Although the regions growth is finally showing signs of life, the European Central Banks pledge to maintain aggressive monetary policy accommodation for the foreseeable future has enabled investors to embrace a bullish stance despite mounting liquidity tapering worries elsewhere. [ Fundamentals Looking up for Europe ETFs ] The average dividend yield on European stocks, a group still seen by some as undervalued, is around 3%. VGK, which is heavy in sectors sectors such as financials, consumer staples and industrial, yields about 3.3%. EZU has 30-day SEC yield of 2.17%. That ETF allocates roughly 60% of its weight to financials, industrials, discretionary and staples stocks. Investors should note EZU is heavily tilted toward the largest, and perceived to be steadier Eurozone economies as France and Germany combine for 60.6% of the ETFs geographic exposure. [ ETFs for an Improving Europe ] VGK and EZU are not the only Europe ETFs investors have been embracing in recent months. The SPDR EURO STOXX 50 ( FEZ ) posted a third-quarter gain of 15.1% while hauling in $674.9 million in new assets. FEZ yields 2.93%, but its price-to-book ratio of 1.36 indicates a discount to the 1.9 average found among developed markets. [A Vital Emerging Markets Chart ] France and Germany combine for over two-thirds of FEZs weight. IEV notched a third-quarter gain of 12.5% while pulling in $622.6 million in new assets.