European stocks jumped the most in eight months as ARM Holdings Plc and Cie. Financiere Richemont SA reported results that topped estimates and speculation grew that the region’s central bank will cut interest rates.
STMicroelectronics NV, Intel Corp.’s biggest competitor in Europe, forecast new products and chip demand will boost sales in the second half as it winds down a wireless venture with Ericsson AB that has contributed to six consecutive quarterly losses.
STMicroelectronics NV, Intel Corp.’s largest competitor in Europe, will spend as much as $500 million to exit its unprofitable wireless-chip venture with Ericsson AB, as demand starts to recover in other segments.
STMicroelectronics NV will sell its stake in the unprofitable wireless-chip venture with Ericsson AB by the third quarter of next year to remove a drag on profitability at Europe’s biggest semiconductor manufacturer.
STMicroelectronics NV, Europe’s largest semiconductor maker, predicted that first-quarter revenue will fall as much as 10 percent from the previous three months because of lower sales at its wireless business.
STMicroelectronics NV fell the most in a decade in Paris trading after Chief Executive Officer Carlo Bozotti said there will be a “correction” in sales and gross margin in the third quarter because of difficulties at customer Nokia Oyj.