Somali Jihadists Recruit In U.s., Canada, Europe

Europe shares steady, ThyssenKrupp rallies

The Stoxx Europe 600 index /quotes/zigman/2380150 XX:SXXP -0.34% dropped 0.4% to 311.90, erasing a 0.2% gain from Tuesday. SABMiller CEO: Whats on tap Alan Clark of SABMiller PLC on sharing power with his predecessor and selling beer on six continents. Among notable movers in the index, shares of Carnival PLC /quotes/zigman/321074 UK:CCL -6.42% /quotes/zigman/322132/quotes/nls/ccl CCL -7.65% lost 5.9% after Morgan Stanley cut the cruise-line operator to underweight from equal-weight. On Tuesday, the company laid out its profit expectations for the fourth-quarter, which were below analysts forecasts. On a more upbeat note, shares of ThyssenKrupp AG /quotes/zigman/157034 DE:TKA +4.52% jumped 5.3% after European investor Cevian Capital said it has acquired a 5.2% stake in the German steelmaker. More broadly, worries over the looming U.S. debt ceiling spilled over into Europe. The U.S. Treasury is set to reach its $16.7 trillion borrowing limit around mid-October, unless legislators move to raise the debt ceiling. Moodys Investors Service warned on Tuesday that a failure to raise the debt limit would result in a worse outcome for financial markets than a government shutdown. The ratings agency argued that market participants would view a decision not to raise the debt limit as the event with the higher probability of sovereign default. U.S.

Europe stocks slide on U.S. debt nervousness

An injured person is helped on arrival at the Aga Khan Hospital in Nairobi after the attack at the upscale mall. A soldier directs people up a stairway inside the Westgate on September 21. An injured man is wheeled into the Aga Khan Hospital in Nairobi. People run from the Westgate Mall. A Kenyan woman is helped to safety after the masked gunmen stormed the upscale mall and sprayed gunfire on shoppers and staff. Crowds gather outside the upscale shopping mall. The interior ministry urges Kenyans to keep off the roads near the mall so police can ensure everyone inside has been evacuated to safety. A policeman carries a baby to safety. Authorities said multiple shooters were at the scene. Bodies lie outside the shopping mall. A security officer helps a wounded woman outside. Elaine Dang of San Diego is helped to safety after the attack.

German elections and Europe’s economy: Five things you need to know

30, and a small number of Tea Party-backed U.S. senators have been threatening to stall a bill to renew the funding. The market has also been fretting about next month’s negotiations in Washington to raise the federal debt ceiling to prevent a default, as well as the outlook for the Federal Reserve’s stimulus measures after the Fed decided not to scale back the measures last week. “Investors are still confused about the Fed’s monetary policy, and now the focus is switching to negotiations between Democrats and Republicans in Washington. After such a rally, people are now very cautious,” said Guillaume Dumans, co-head of research firm 2Bremans. The Fed’s quantitative easing programme has been a major factor behind the global equity market rally of the past year, which has propelled European shares to a 12-month forward price-to-earnings ratio of 13, a level not seen since October 2009, according to Thomson Reuters Datastream. The broad STOXX Europe 600 is up about 5 percent so far this month, on track to post its best monthly performance in two years, and its best month of September since 1997. The sharp rise in the valuation ratio, however, suggests that the equity rally has been more about excess liquidity in the financial markets than underlying company profit growth. Data shows that analysts continue to steadily downgrade earnings forecast for European companies, with the region’s earnings momentum – upgrades minus downgrades as a percentage of total – currently at minus 2.9 percent. Riccardo Designori, analyst at Brown Editore, in Milan, said risks remain for stocks, but on a relative basis, the asset class offer the most value when compared with fixed income. “Despite the risk of seeing a pull-back in the short-term, stocks are still the best place to be, and within equities, European stocks offer the best upside potential,” he said.

How will a third term of Merkel influence the German economy? Merkel’s stewardship of the German economy has been good for the country, but not for all of its citizens. Since she was first elected in 2005, Merkel has steered a steady course, shielding German output from the worst of the financial crisis. This is reflected in upbeat readings for business confidence and a 75% appreciation for the Xetra Dax, the nation’s main bluechip stock index. While unemployment soared in the eurozone and in the U.S. after 2008, Germany’s jobless tally decreased. READ MORE: How Merkel become more American Has crisis split Europe in two? Economists have also argued Germany’s exports benefit greatly from being priced in a currency that is much weaker than the Deutsche Mark would otherwise have been. Barroso: Europe not out of crisis However, large numbers of people are reliant on low-paid “mini-jobs” which leave them struggling to make ends meet. The Social Democrats are calling for a national minimum wage to combat the problem of the “working poor.” Human toll of economic crisis The OECD warned recently that the gap between rich and poor in Germany was wider than in any of the group’s member states, which include the U.S. and Mexico. How did Merkel survive while the rest fell? As only the third person in post-war times to win three terms in office — joining Helmut Kohl and Konrad Adenauer — Merkel has cemented her place in the history books. She is now positioned to topple Margaret Thatcher from the top spot as most powerful female politician of all time.