Spanish and Italian government bonds advanced for a second week on speculation the European Central Bank will remain supportive of sovereign debt, even as it refrained from adding stimulus and faced a legal challenge.
Germany’s government bonds rose, pushing 10-year yields down the most since November, as reports showing inflation slowed and Italian services contracted in December spurred demand for the region’s safest assets.
German two-year notes fell for the first time in four days as European Central Bank Governing Council member Ewald Nowotny said he saw no need for “immediate” monetary-policy action to boost the economy.
Richard McGuire , a former partner at Pershing Square Capital Management, lined up financing from a unit of Blackstone Group LP to start a stock hedge fund, looking to add stakes in small and mid-sized companies.
Southeast Europe’s emerging economies must brace for a slowdown as the euro-region debt crisis saps demand for their exports and investment dries up, said Richard McGuire, an economist Rabobank International.