February 09, 2010, 09:21 PM EST
By Jeff Plungis and Alan Ohnsman
Feb. 10 (Bloomberg) -- Toyota Motor Corp.’s perceived delays in fixing vehicles prone to unintended acceleration are intensifying scrutiny of the company’s products and leading to more reviews and recalls, automotive analysts said.
“Some of this is a negatively reinforcing cycle,” said Jeremy Anwyl, chief executive officer of Edmunds.com, a Santa Monica, California-based automotive research Web site. “To the outside world, it appears Toyota is trying to hide something. The more it appears that way, the more people start digging.”
The world’s biggest automaker announced yesterday its latest recall, of 437,000 hybrids including the Prius, the top- selling vehicle in Japan. Also yesterday, U.S. safety officials said they were reviewing Toyota’s Corolla, the world’s best- selling car, after complaints about how it steered.
“The king isn’t perfect,” said Jim Hossack, an industry analyst at AutoPacific Inc. in Fountain Valley, California. “Toyota had such a strong reputation for quality for so long, that it’s inevitable this would become such a big thing.”
Toyota has recalled almost 8 million vehicles on five continents to repair defects linked to unintended acceleration. At least three U.S. congressional committees plan hearings into how Toyota and the U.S. National Highway Traffic Safety Administration handled complaints about the problem.
The Toyota City, Japan-based company lost about $31 billion in market value since Jan. 21, when it began calling in autos to fix potentially sticky pedals.
Long Time Building
“Safety is involved here: this isn’t some spare-tire or a corroding tailgate recall,” Hossack said.
The intensity of the backlash against Toyota was greater because the company denied that consumer complaints about sudden acceleration indicated a real engineering problem, said Clarence Ditlow, executive director of the Center for Auto Safety, a Washington-based advocacy group.
“This has been building for a long time,” Ditlow said. “In Toyota’s drive to be the No. 1 manufacturer, it lost sight of the engineering that got it there in the first place.”
Recalls aren’t a problem for consumers, as long as the problem is clearly identified and fixed, said Mike Quincy, an automotive specialist at Consumer Reports magazine, whose vehicle ratings influence sales.
The Yonkers, New York-based magazine removed its recommendation from Toyota models that were suspended from sale in the U.S. The endorsements will probably be restored, Quincy said.
Congress Awaits
“It seems like the perfect storm right now for Toyota,” he said. “Is this a nationwide, blood-in-the-streets kind of catastrophe? No. It’s been blown out of proportion.”
According to Safety Research & Strategies Inc., a Rehoboth, Massachusetts, group that provides data to plaintiffs’ attorneys and consumers, there were 2,262 documented incidents in the U.S. of unintended acceleration involving Toyota vehicles from 1999 through Jan. 29, 2010. NHTSA confirms at least 2,000 such U.S. complaints in that period.
Safety Research found at least 19 deaths linked to sudden acceleration of Toyota vehicles.
From 1999 through January 2010, Toyota sold 22.03 million Toyota, Lexus and Scion vehicles in the U.S. Using the safety group’s figure, the problem occurred in 0.01 percent of the vehicles Toyota sold in the period.
The company got a temporary reprieve when the House Oversight Committee postponed because of snowstorms a hearing that was scheduled for today. The hearing was reset for Feb. 24, the day before another hearing by the House Energy and Commerce Committee.
The Senate Commerce Committee announced yesterday a hearing for March 2.
Once Congress gets involved, “they add theater,” said Hossack, a former engineer for Ford Motor Co. and Mazda Motor Corp. “It will be all to the aid of senators and congressman running for re-election. Not sure that it will yield anything of significance.”
--Editors: Joe Winski, Larry Liebert
To contact the reporter on this story: Jeff Plungis in Washington at +1-202-624-1835 or jplungis@bloomberg.net.
To contact the editor responsible for this story: Larry Liebert at +1-202-624-1936 or lliebert@bloomberg.net
=================
source: http://www.businessweek.com/news/2010-02-09/toyota-recalls-become-reinforcing-cycle-as-scrutiny-increases.html
Tuesday, February 9, 2010
Asia Up on Europe, Australia
By SHRI NAVARATNAM
SINGAPORE -- Asian stock markets were higher Wednesday, with Australian shares getting a lift from better-than-expected earnings.
Expectations that European Union members are working towards helping fiscally-stressed Greece were encouraging buyers back into the market after several days of uncertainty over euro-zone debt problems. Tachibana Securities operating officer Kenichi Hirano said the Greece news was lifting sentiment in Tokyo. "The market knew that sooner or later, there would be a rescue plan, because Europe couldn't just abandon Greece," he said, referring to the prospect of an imminent rescue deal for Greece.
Germany is considering a plan with its European Union partners to offer Greece and other troubled euro-zone members loan guarantees in a bid to calm fears of a government default and prevent a widening of the credit woes in the euro-zone, people familiar with the matter said.
Japan's Nikkei 225 was up 1.0%, Australia's S&P/ASX 200 was 1.0% higher, South Korea's Kospi Composite advanced 0.3% and New Zealand's NZX-50 rose 0.5%. Dow Jones Industrial Average futures were 12 points higher in screen trade.
The Australian market was rising on the back of better-than-expected results from mining giant BHP Billiton and hopes of a resolution to Greece's fiscal travails.
BHP rose 2.2% after its underlying first half net profit of US$5.7 billion beat consensus estimates. Rio Tinto tacked on 3.6%, riding BHP's surge.
Boral rose 4.5% after a stronger-than-expected first half net profit, while CBA rose 0.9% after its first half net profit met expectations. "The earnings season in Australia is fantastic," said IG Markets institutional dealer Chris Weston. "Companies are boosting dividends and there's a lot of positive comments on earnings."
Shipping and resources stocks were driving Tokyo shares higher, underpinned by gains in commodities on Tuesday.
Nippon Yusen advanced 2.5%, Mitsui O.S.K. Lines rose 3.0% and Itochu gained 1.7%.
Toyota Motor was up 0.7% as investors continued to bargain hunt following sharp falls recently. The small gains came despite the automaker's announcement Tuesday of a global recall of nearly half a million of its Prius hybrid vehicles to resolve a problem with their brakes. The fresh setback comes on top of the automaker's recent recall of around eight million vehicles in the U.S. and Europe to fix problematic gas pedals.
New Zealand shares were trading higher on an improvement in sentiment, but Craig Investment Partners broker Bryon Burke said buyers weren't rushing into the market.
"There's no commitment on the buy-side. I don't see it going further north anyway," he said.
Coal exporter Pike River Coal rose 4.6% on stronger commodity prices and on indications the New Zealand government may open conservation land to mining.
Blue chip stocks were pushing higher, led by bellwether Telecom rising 0.9% and Fletcher Building tacking on 0.7%. Property companies took a breather after Tuesday's relief rally that was driven by news the government will not impose a land tax. AMP Office Property Trust was down 2.6% and Kiwi Income Property fell 1.9%.
The South Korean market was supported by gains in financial and steel stocks, although some brokers said it was unclear how far the market will rebound.
"Sentiment looks to have stabilized," said Min Sang-il at E*Trade Securities. "But the market still lacks confidence about whether the stock market will stabilize soon, preventing any meaningful rebound."
In foreign exchange markets, the euro remained bid on expectations of a Greek rescue package. The euro was fetching $1.3794 against the dollar, up from $1.3779 late in New York Tuesday, and was at ¥124.03 against the yen compared with ¥123.52. The dollar was buying ¥89.92 from ¥89.63.
"Investors are hopeful that Thursday's EU Leaders Summit...may help shed a bit more light on how policymakers are planning to tackle Greece's escalating debt crisis. Europe's fiscal woes are likely to remain the key focus for (the euro) near term," said Danica Hampton, currency strategist at the Bank of New Zealand.
Japanese government bond futures were down, tracking Tuesday's weaker U.S. Treasurys. Lead March JGB futures were down 0.15 at 139.18 points.
Spot gold was at $1,078.80 a troy ounce, up $1.20 from the New York close. March Nymex crude oil futures were down 25 cents at $73.50 per barrel on Globex.
Write to Shri Navaratnam at shri.navaratnam@dowjones.com
===================
source: http://online.wsj.com/article/SB10001424052748704820904575056003819341826.html?mod=googlenews_wsj
SINGAPORE -- Asian stock markets were higher Wednesday, with Australian shares getting a lift from better-than-expected earnings.
Expectations that European Union members are working towards helping fiscally-stressed Greece were encouraging buyers back into the market after several days of uncertainty over euro-zone debt problems. Tachibana Securities operating officer Kenichi Hirano said the Greece news was lifting sentiment in Tokyo. "The market knew that sooner or later, there would be a rescue plan, because Europe couldn't just abandon Greece," he said, referring to the prospect of an imminent rescue deal for Greece.
Germany is considering a plan with its European Union partners to offer Greece and other troubled euro-zone members loan guarantees in a bid to calm fears of a government default and prevent a widening of the credit woes in the euro-zone, people familiar with the matter said.
Japan's Nikkei 225 was up 1.0%, Australia's S&P/ASX 200 was 1.0% higher, South Korea's Kospi Composite advanced 0.3% and New Zealand's NZX-50 rose 0.5%. Dow Jones Industrial Average futures were 12 points higher in screen trade.
The Australian market was rising on the back of better-than-expected results from mining giant BHP Billiton and hopes of a resolution to Greece's fiscal travails.
BHP rose 2.2% after its underlying first half net profit of US$5.7 billion beat consensus estimates. Rio Tinto tacked on 3.6%, riding BHP's surge.
Boral rose 4.5% after a stronger-than-expected first half net profit, while CBA rose 0.9% after its first half net profit met expectations. "The earnings season in Australia is fantastic," said IG Markets institutional dealer Chris Weston. "Companies are boosting dividends and there's a lot of positive comments on earnings."
Shipping and resources stocks were driving Tokyo shares higher, underpinned by gains in commodities on Tuesday.
Nippon Yusen advanced 2.5%, Mitsui O.S.K. Lines rose 3.0% and Itochu gained 1.7%.
Toyota Motor was up 0.7% as investors continued to bargain hunt following sharp falls recently. The small gains came despite the automaker's announcement Tuesday of a global recall of nearly half a million of its Prius hybrid vehicles to resolve a problem with their brakes. The fresh setback comes on top of the automaker's recent recall of around eight million vehicles in the U.S. and Europe to fix problematic gas pedals.
New Zealand shares were trading higher on an improvement in sentiment, but Craig Investment Partners broker Bryon Burke said buyers weren't rushing into the market.
"There's no commitment on the buy-side. I don't see it going further north anyway," he said.
Coal exporter Pike River Coal rose 4.6% on stronger commodity prices and on indications the New Zealand government may open conservation land to mining.
Blue chip stocks were pushing higher, led by bellwether Telecom rising 0.9% and Fletcher Building tacking on 0.7%. Property companies took a breather after Tuesday's relief rally that was driven by news the government will not impose a land tax. AMP Office Property Trust was down 2.6% and Kiwi Income Property fell 1.9%.
The South Korean market was supported by gains in financial and steel stocks, although some brokers said it was unclear how far the market will rebound.
"Sentiment looks to have stabilized," said Min Sang-il at E*Trade Securities. "But the market still lacks confidence about whether the stock market will stabilize soon, preventing any meaningful rebound."
In foreign exchange markets, the euro remained bid on expectations of a Greek rescue package. The euro was fetching $1.3794 against the dollar, up from $1.3779 late in New York Tuesday, and was at ¥124.03 against the yen compared with ¥123.52. The dollar was buying ¥89.92 from ¥89.63.
"Investors are hopeful that Thursday's EU Leaders Summit...may help shed a bit more light on how policymakers are planning to tackle Greece's escalating debt crisis. Europe's fiscal woes are likely to remain the key focus for (the euro) near term," said Danica Hampton, currency strategist at the Bank of New Zealand.
Japanese government bond futures were down, tracking Tuesday's weaker U.S. Treasurys. Lead March JGB futures were down 0.15 at 139.18 points.
Spot gold was at $1,078.80 a troy ounce, up $1.20 from the New York close. March Nymex crude oil futures were down 25 cents at $73.50 per barrel on Globex.
Write to Shri Navaratnam at shri.navaratnam@dowjones.com
===================
source: http://online.wsj.com/article/SB10001424052748704820904575056003819341826.html?mod=googlenews_wsj
GLOBAL MARKETS: European Stocks Steady, US Futures Rise
By Michele Maatouk
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--European stocks were steady Tuesday despite continuing concerns about sovereign debt and weakness in U.S. stocks, which closed at a three-month low.
"The problems with Greece and the potential for these to spread to other European countries still exist," said David Morrison, strategist at GFT, adding that the weekend's G7 meeting did little to alleviate fears.
Losses were limited, however, as gains in the basic-resources sector and firmer U.S. stock futures provided support. Basic resources stocks were boosted by higher metals prices: Xstrata added 2.6%, while ArcelorMittal rose 1.3%. The DJ Stoxx 600 basic-resources index was up 1.0% at 462.33.
"There is no dominant theme to this morning's session, so traders are taking a lead from U.S. futures, which are pointing to a firmer open this afternoon," said David Morrison, market analyst at GFT. "Traders in Europe are trying to adjust to Monday's selloff on Wall Street, which has been almost completely reversed this morning," he added.
By 0905 GMT, the pan-European Dow Jones Stoxx 600 index was down 0.1% at 238.77 but London's FTSE 100 was 0.3% higher at 5108.14. Frankfurt's DAX was up 0.2% at 5495.16 but Paris's CAC-40 was down 0.1% at 3604.87.
Among the smaller markets in focus, Greece's ASE index was up 1.1% at 1826.11, Spain's Ibex 35 index was up 0.2% at 10,229.10 and Portugal's PSI-20 index was up 0.1% at 7443.78.
In the futures markets, the March Dow Jones Industrial Average contract was up 0.6% while the Standard & Poor's 500 and the Nasdaq 100 contracts were each up 0.8%.
On the economic calendar, the only figures of note are the U.K. trade balance at 0930 GMT and U.S. wholesale inventories at 1500 GMT.
On Wall Street, stocks fell Monday, led by financials such as Bank of America, Wells Fargo and J.P. Morgan Chase, as worries over increasing regulation and the impact of Europe's sovereign debt worries continued to weigh. Investors voiced concern over how big banks could be affected by the Obama administration's plans to restrict banks' size and the risks they can take on.
The Dow Jones Industrial Average fell 103.84 points, or 1.0%, to 9908.39. The measure is now off 1.6% for the month and is down 5% for the year. The technology-heavy Nasdaq Composite index fell 15.07, or 0.7%, to 2126.05. The Standard & Poor's 500 index declined 9.45, or 0.9%, to 1056.74, led by its financial sector.
Jitters over sovereign debt in European countries such as Greece and Portugal also took their toll Monday, with investors disappointed that the Group of Seven finance ministers, who met over the weekend in Canada, failed to say anything new on the matter. European officials again suggested that a bailout isn't on the European Union's agenda.
In Asia, shares were mostly higher Tuesday, recovering from earlier losses. But a cautious tone remained, with traders saying worries about sovereign debt are denting demand and hurting risk appetite.
Nevertheless, some were of the view that investors now seemed less worried that Europe's problems will hurt the global economy. "While Europe's debt woes are still simmering away in the background, it seems that investors are less fearful the swelling deficits will prove problematic for the global economy," said Danica Hampton, currency strategist at the Bank of New Zealand.
Japan's Nikkei 225 was down 0.2% but Hong Kong's Hang Seng index rose 1.0% and the Shanghai Composite was 0.5% higher.
Japanese stocks were pushed down by weakness in some exporters, although foreigners' buying in companies which recently reported strong earnings limited the losses.
In the European foreign exchanges, the euro and the pound gained against the dollar and the yen. At 0915 GMT, the euro was quoted at $1.3730, up from $1.3649 in late New York trade Monday, while the dollar was higher at Y89.70, up from Y89.26. Sterling was trading at $1.5598, up from $1.5584.
Elsewhere, spot gold was at $1069.10 per troy ounce, up $6.25 from the New York close in response to the weaker dollar. Nymex March crude oil futures were up 44 cents at $72.33 per barrel. And the March Dow Jones UBS Commodity Index was quoted at 128.60, up 0.60.
The European government bond markets were lower, with the March bund future down 0.09 at 123.82.
-By Michele Maatouk, Dow Jones Newswires; +44-20-7842-9447; michele.maatouk@dowjones.com
=========================
source: http://online.wsj.com/article/BT-CO-20100209-703956.html?mod=WSJ_World_MIDDLEHeadlinesEurope
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--European stocks were steady Tuesday despite continuing concerns about sovereign debt and weakness in U.S. stocks, which closed at a three-month low.
"The problems with Greece and the potential for these to spread to other European countries still exist," said David Morrison, strategist at GFT, adding that the weekend's G7 meeting did little to alleviate fears.
Losses were limited, however, as gains in the basic-resources sector and firmer U.S. stock futures provided support. Basic resources stocks were boosted by higher metals prices: Xstrata added 2.6%, while ArcelorMittal rose 1.3%. The DJ Stoxx 600 basic-resources index was up 1.0% at 462.33.
"There is no dominant theme to this morning's session, so traders are taking a lead from U.S. futures, which are pointing to a firmer open this afternoon," said David Morrison, market analyst at GFT. "Traders in Europe are trying to adjust to Monday's selloff on Wall Street, which has been almost completely reversed this morning," he added.
By 0905 GMT, the pan-European Dow Jones Stoxx 600 index was down 0.1% at 238.77 but London's FTSE 100 was 0.3% higher at 5108.14. Frankfurt's DAX was up 0.2% at 5495.16 but Paris's CAC-40 was down 0.1% at 3604.87.
Among the smaller markets in focus, Greece's ASE index was up 1.1% at 1826.11, Spain's Ibex 35 index was up 0.2% at 10,229.10 and Portugal's PSI-20 index was up 0.1% at 7443.78.
In the futures markets, the March Dow Jones Industrial Average contract was up 0.6% while the Standard & Poor's 500 and the Nasdaq 100 contracts were each up 0.8%.
On the economic calendar, the only figures of note are the U.K. trade balance at 0930 GMT and U.S. wholesale inventories at 1500 GMT.
On Wall Street, stocks fell Monday, led by financials such as Bank of America, Wells Fargo and J.P. Morgan Chase, as worries over increasing regulation and the impact of Europe's sovereign debt worries continued to weigh. Investors voiced concern over how big banks could be affected by the Obama administration's plans to restrict banks' size and the risks they can take on.
The Dow Jones Industrial Average fell 103.84 points, or 1.0%, to 9908.39. The measure is now off 1.6% for the month and is down 5% for the year. The technology-heavy Nasdaq Composite index fell 15.07, or 0.7%, to 2126.05. The Standard & Poor's 500 index declined 9.45, or 0.9%, to 1056.74, led by its financial sector.
Jitters over sovereign debt in European countries such as Greece and Portugal also took their toll Monday, with investors disappointed that the Group of Seven finance ministers, who met over the weekend in Canada, failed to say anything new on the matter. European officials again suggested that a bailout isn't on the European Union's agenda.
In Asia, shares were mostly higher Tuesday, recovering from earlier losses. But a cautious tone remained, with traders saying worries about sovereign debt are denting demand and hurting risk appetite.
Nevertheless, some were of the view that investors now seemed less worried that Europe's problems will hurt the global economy. "While Europe's debt woes are still simmering away in the background, it seems that investors are less fearful the swelling deficits will prove problematic for the global economy," said Danica Hampton, currency strategist at the Bank of New Zealand.
Japan's Nikkei 225 was down 0.2% but Hong Kong's Hang Seng index rose 1.0% and the Shanghai Composite was 0.5% higher.
Japanese stocks were pushed down by weakness in some exporters, although foreigners' buying in companies which recently reported strong earnings limited the losses.
In the European foreign exchanges, the euro and the pound gained against the dollar and the yen. At 0915 GMT, the euro was quoted at $1.3730, up from $1.3649 in late New York trade Monday, while the dollar was higher at Y89.70, up from Y89.26. Sterling was trading at $1.5598, up from $1.5584.
Elsewhere, spot gold was at $1069.10 per troy ounce, up $6.25 from the New York close in response to the weaker dollar. Nymex March crude oil futures were up 44 cents at $72.33 per barrel. And the March Dow Jones UBS Commodity Index was quoted at 128.60, up 0.60.
The European government bond markets were lower, with the March bund future down 0.09 at 123.82.
-By Michele Maatouk, Dow Jones Newswires; +44-20-7842-9447; michele.maatouk@dowjones.com
=========================
source: http://online.wsj.com/article/BT-CO-20100209-703956.html?mod=WSJ_World_MIDDLEHeadlinesEurope
Nissan Expects Full-Year Profit on Rising Sales (Update2)
February 09, 2010, 04:31 AM EST
(Adds Renault shares in seventh paragraph.)
By Kiyori Ueno and Tetsuya Komatsu
Feb. 9 (Bloomberg) -- Nissan Motor Co. predicted a return to profit this fiscal year, scrapping an earlier loss estimate, citing government incentives that boosted demand for the company’s vehicles in China and Japan.
Japan’s third-largest carmaker expects net income of 35 billion yen ($391 million) in the year ending March 31, compared with an earlier forecast of a 40 billion yen loss, it said in a statement today in Yokohama, Japan, where Nissan is based.
Nissan follows bigger rivals Honda Motor Co. and Toyota Motor Corp. in improving its earnings outlook. The maker of Teana sedans may also benefit after Toyota recalled about 8 million vehicles globally, tarnishing its reputation.
“I would say for the moment that Nissan has the edge over Toyota,” Yuuki Sakurai, chief executive officer of Fukoku Capital Management Inc. in Tokyo, said in a Bloomberg Television interview before the earnings announcement. “They have been doing very well.”
Nissan benefited from tax cuts and government subsidies in China, the world’s biggest auto market, and in Japan. It boosted its full-year vehicle sales estimates to 756,000 in China from 712,000 and to 625,000 in Japan from 612,000. In North America, Nissan increased its sales forecast to 1.045 million vehicles from 1 million.
Quarterly Profit
The company posted net income of 45 billion yen for the third quarter, compared with a median estimate of a 27.2 billion yen profit by four analysts surveyed by Bloomberg. Global sales rose to 2 trillion yen from 1.82 trillion yen a year earlier, the company said in the statement.
Nissan rose 2.4 percent to 731 yen at the 3 p.m. close of trading on the Tokyo Stock Exchange, before the earnings announcement. The shares have declined 9.8 percent this year. Renault SA, which owns 44 percent of Nissan, rose as much as 3.1 percent of 9:55 a.m. in Paris trading.
Chief Operating Officer Toshiyuki Shiga said on Feb. 1 that accelerator pedals in Nissan cars made by the same supplier that triggered recalls at Toyota aren’t defective. CTS Corp. pedals used by Nissan differ in structure and materials from those used by Toyota, he said.
Nissan will roll out its first battery-powered car, the Leaf, this year in Japan, the U.S. and Europe. Chief Executive Officer Carlos Ghosn predicts electric vehicles will account for 10 percent of global car sales by 2020.
The carmaker posted a net loss of 233.7 billion yen for the fiscal year ended March 31, 2009.
--Editors: Terje Langeland, Patrick Harrington
To contact the reporters on this story: Kiyori Ueno in Tokyo at +81-3-3201-3844 or kueno2@bloomberg.net; Tetsuya Komatsu in Tokyo at +81-3-3201-3370 tekomatsu@bloomberg.net
To contact the editor responsible for this story: Kae Inoue at +81-3-3201-8362 or kinoue@bloomberg.net
source: website..Bloomberg
(Adds Renault shares in seventh paragraph.)
By Kiyori Ueno and Tetsuya Komatsu
Feb. 9 (Bloomberg) -- Nissan Motor Co. predicted a return to profit this fiscal year, scrapping an earlier loss estimate, citing government incentives that boosted demand for the company’s vehicles in China and Japan.
Japan’s third-largest carmaker expects net income of 35 billion yen ($391 million) in the year ending March 31, compared with an earlier forecast of a 40 billion yen loss, it said in a statement today in Yokohama, Japan, where Nissan is based.
Nissan follows bigger rivals Honda Motor Co. and Toyota Motor Corp. in improving its earnings outlook. The maker of Teana sedans may also benefit after Toyota recalled about 8 million vehicles globally, tarnishing its reputation.
“I would say for the moment that Nissan has the edge over Toyota,” Yuuki Sakurai, chief executive officer of Fukoku Capital Management Inc. in Tokyo, said in a Bloomberg Television interview before the earnings announcement. “They have been doing very well.”
Nissan benefited from tax cuts and government subsidies in China, the world’s biggest auto market, and in Japan. It boosted its full-year vehicle sales estimates to 756,000 in China from 712,000 and to 625,000 in Japan from 612,000. In North America, Nissan increased its sales forecast to 1.045 million vehicles from 1 million.
Quarterly Profit
The company posted net income of 45 billion yen for the third quarter, compared with a median estimate of a 27.2 billion yen profit by four analysts surveyed by Bloomberg. Global sales rose to 2 trillion yen from 1.82 trillion yen a year earlier, the company said in the statement.
Nissan rose 2.4 percent to 731 yen at the 3 p.m. close of trading on the Tokyo Stock Exchange, before the earnings announcement. The shares have declined 9.8 percent this year. Renault SA, which owns 44 percent of Nissan, rose as much as 3.1 percent of 9:55 a.m. in Paris trading.
Chief Operating Officer Toshiyuki Shiga said on Feb. 1 that accelerator pedals in Nissan cars made by the same supplier that triggered recalls at Toyota aren’t defective. CTS Corp. pedals used by Nissan differ in structure and materials from those used by Toyota, he said.
Nissan will roll out its first battery-powered car, the Leaf, this year in Japan, the U.S. and Europe. Chief Executive Officer Carlos Ghosn predicts electric vehicles will account for 10 percent of global car sales by 2020.
The carmaker posted a net loss of 233.7 billion yen for the fiscal year ended March 31, 2009.
--Editors: Terje Langeland, Patrick Harrington
To contact the reporters on this story: Kiyori Ueno in Tokyo at +81-3-3201-3844 or kueno2@bloomberg.net; Tetsuya Komatsu in Tokyo at +81-3-3201-3370 tekomatsu@bloomberg.net
To contact the editor responsible for this story: Kae Inoue at +81-3-3201-8362 or kinoue@bloomberg.net
source: website..Bloomberg
Monday, February 8, 2010
Euro Near 8-Month Low Against Dollar on Greece Fiscal Crisis
By Yoshiaki Nohara and Ron Harui
Feb. 9 (Bloomberg) -- The euro traded near an eight-month low against the dollar on concern a European Union summit this week will fail to address Greece’s fiscal crisis, damping demand for assets in the region.
The 16-nation currency was close to the weakest in 11 months versus the yen after EU President Herman Van Rompuy said yesterday the Feb. 11 summit will focus on long-term economic strategy, making no direct reference to Greece. The yen dropped against 14 of 16 major counterparts amid speculation importers and traders sold the currency to profit from recent gains.
“Investors won’t be willing to take the risk to buy higher-yielding currencies unless organizations such as the European Central Bank and EU speak up to rescue Greece,” said Masahide Tanaka, a senior strategist in Tokyo at Mizuho Trust & Banking Co., a unit of Japan’s second-largest bank. “If investors switch their attention to the fragility of Europe’s economy, euro weakness may accelerate.”
The euro traded at $1.3658 as of 10:38 a.m. in Tokyo from $1.3649 in New York yesterday. It dropped to $1.3586 on Feb. 5, the lowest since May 20. The European currency was at 121.97 yen from 121.81 yen. It slid to 120.71 on Feb. 5, the weakest since Feb. 24, 2009. The dollar was at 89.29 yen from 89.26 yen.
Europe’s currency dropped 1.3 percent last week against the dollar as Greece struggled to deal with its budget shortfall, the largest in the European Union. The country is trying to convince investors that the deficit, now at 12.7 percent of gross domestic product, can be brought down to the bloc’s 3 percent limit.
‘Worst Possible Signal’
“We are trying to implement a very difficult stability and growth program to which we are fully committed,” Greek Finance Minister George Papaconstantinou said in an interview with Bloomberg Television yesterday. “The worst possible signal which we could be sending out is one calling for outside help.”
European Central Bank President Jean-Claude Trichet will today depart a meeting of policy makers in Sydney a day early to attend the EU summit, ECB spokeswoman Regina Schueller said.
Trichet was in Sydney attending a symposium organized by the Reserve Bank of Australia to mark its 50th anniversary. Schueller said Trichet left early in order to make better flight connections and declined to comment further.
The yen declined versus on speculation Japanese companies sold it to take advantage of the currency’s 3.4 percent rally in the past week against the euro.
“Importers and those who have long positions are selling the yen,” said Hideaki Inoue, chief manager of foreign-exchange and financial products trading at Mitsubishi UFJ Trust & Banking Corp. in Tokyo. “This may be a short-lived position adjustment.” A long position is a bet an asset will rise.
The 14-day relative strength index of the euro versus the yen was at 24.61 today, staying below 30 for a fourth day, according to data compiled by Bloomberg, a sign the currency may be poised to change direction.
To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Ron Harui in Singapore at rharui@bloomberg.net.
Last Updated: February 8, 2010 20:57 EST
=======================================
source: http://www.bloomberg.com/apps/news?pid=20601101&sid=a1xNIjmTY.Mk
Feb. 9 (Bloomberg) -- The euro traded near an eight-month low against the dollar on concern a European Union summit this week will fail to address Greece’s fiscal crisis, damping demand for assets in the region.
The 16-nation currency was close to the weakest in 11 months versus the yen after EU President Herman Van Rompuy said yesterday the Feb. 11 summit will focus on long-term economic strategy, making no direct reference to Greece. The yen dropped against 14 of 16 major counterparts amid speculation importers and traders sold the currency to profit from recent gains.
“Investors won’t be willing to take the risk to buy higher-yielding currencies unless organizations such as the European Central Bank and EU speak up to rescue Greece,” said Masahide Tanaka, a senior strategist in Tokyo at Mizuho Trust & Banking Co., a unit of Japan’s second-largest bank. “If investors switch their attention to the fragility of Europe’s economy, euro weakness may accelerate.”
The euro traded at $1.3658 as of 10:38 a.m. in Tokyo from $1.3649 in New York yesterday. It dropped to $1.3586 on Feb. 5, the lowest since May 20. The European currency was at 121.97 yen from 121.81 yen. It slid to 120.71 on Feb. 5, the weakest since Feb. 24, 2009. The dollar was at 89.29 yen from 89.26 yen.
Europe’s currency dropped 1.3 percent last week against the dollar as Greece struggled to deal with its budget shortfall, the largest in the European Union. The country is trying to convince investors that the deficit, now at 12.7 percent of gross domestic product, can be brought down to the bloc’s 3 percent limit.
‘Worst Possible Signal’
“We are trying to implement a very difficult stability and growth program to which we are fully committed,” Greek Finance Minister George Papaconstantinou said in an interview with Bloomberg Television yesterday. “The worst possible signal which we could be sending out is one calling for outside help.”
European Central Bank President Jean-Claude Trichet will today depart a meeting of policy makers in Sydney a day early to attend the EU summit, ECB spokeswoman Regina Schueller said.
Trichet was in Sydney attending a symposium organized by the Reserve Bank of Australia to mark its 50th anniversary. Schueller said Trichet left early in order to make better flight connections and declined to comment further.
The yen declined versus on speculation Japanese companies sold it to take advantage of the currency’s 3.4 percent rally in the past week against the euro.
“Importers and those who have long positions are selling the yen,” said Hideaki Inoue, chief manager of foreign-exchange and financial products trading at Mitsubishi UFJ Trust & Banking Corp. in Tokyo. “This may be a short-lived position adjustment.” A long position is a bet an asset will rise.
The 14-day relative strength index of the euro versus the yen was at 24.61 today, staying below 30 for a fourth day, according to data compiled by Bloomberg, a sign the currency may be poised to change direction.
To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Ron Harui in Singapore at rharui@bloomberg.net.
Last Updated: February 8, 2010 20:57 EST
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source: http://www.bloomberg.com/apps/news?pid=20601101&sid=a1xNIjmTY.Mk
Markets Flinch at Debt Ills, Rate Plan
FEBRUARY 9, 2010
By PETER A. MCKAY And E.S. BROWNING
Concerns that Greece's debt woes may spread to other nations mingled with the prospect that the Federal Reserve in the U.S. may soon begin tightening the spigot that helped fuel the markets' massive rebound. Traders cited a report in The Wall Street Journal on Monday that Fed Chairman Ben Bernanke is preparing a plan that the central bank will follow once the economy shows more signs of recovery.
Dow Jones Newswires' Paul Vigna and WSJ's Lee Hawkins details today's market losses and what it means for investors in the News Hub.
The 10000 mark on the Dow has been a frustrating milepost for American investors. The benchmark has crossed above or below the 10000 mark 57 times since first rising above that level in 1999—effectively meaning it has made no progress in more than 10 years. The latest decline could deal another blow to optimism that stocks will continue to rise.
The blue chips fell 103.84 points Monday, or 1%, to 9908.39, their lowest since early November. Banks led the decline—by one measure dropping to their lowest since August. Corporate bond markets also swooned.
The Dow industrials are now down 7.6% from their 15-month high set in January, the biggest drop since the current rally began last March. The only other significant stumble during the powerful rebound was in mid-June to mid-July, when the Dow dropped 7.1%.
Some optimistic investors are shrugging off this decline, saying that stocks were due for a pullback of about 10%. In this view, it is time to look for signs that the declines are losing steam in hopes of buying stocks cheaply. Some bulls appeared to begin buying late on Friday, helping turn the market around on that day. But bearish investors worry that the selling could take stocks down more than 10%, and that rallies like Friday's mark opportunities to sell.
Bank of America and other financials weighed on the stock market Monday.
pan20208
pan20208
The current corporate earnings season has been generally favorable: More than 70% of companies in the S&P 500 stock index have beaten earnings estimates. But investors' focus over the past few weeks has been primarily on the creditworthiness of major industrialized countries, which have piled on huge amounts of debt in trying to spend their way out of a steep recession.
"Clearly, the sovereign-debt worries are first and foremost for the market right now," said Uri Landesman, portfolio manager at ING Investment Management. "We're going to need some more clarity on that before we establish a new trend."
U.S. stocks fell on a day when European markets stabilized, demonstrating investors' lingering worries about the U.S. economy. The benchmark indexes in Italy, Portugal and Spain all rose. The British market was mixed, with the FTSE 100 posting a 0.6% gain, while the broader FTSE 250 slipped 0.3%.
After a drubbing over the past few days, the euro was relatively stable against the U.S. dollar. One euro cost $1.3660 in late New York trading, down from $1.3665 on Friday.
[MARKETS]
In the bond market, investors demanded greater compensation for owning corporate debt, driving so-called risk premiums over safe U.S. Treasurys to their highest point in a year. Investors are keeping a particular eye on the corporate bond market after a record rally in 2009. A sharp pullback could make it much more expensive for companies to finance themselves, as the economy remains sluggish.
In the U.S., trading volume in recent weeks has also been sluggish, coming in below last year's average of more then five billion shares a day for stocks traded on the New York Stock Exchange. That reflects investors' nervousness: They are reluctant to commit a lot of money either to supporting stocks or to betting against them.
On Monday, trading volume was about 4.3 billion shares as financial shares led the broader stock market lower. The S&P 500 financial-sector index hit its lowest point since mid-August. Bank of America dropped 3.5%, while American Express fell 2.8%, Travelers declined 2.5%, and J.P. Morgan Chase slipped 1.6%.
Keith W. Springer, president of Capital Financial Advisory Services, notes that market watchers had been saying for months that a pullback has been necessary, but now that the rally in stocks has come to a pause, it has been met with increased alarm.
"Every time you have a market run-up, everybody goes, 'We need a 10% correction,'" Mr. Springer said. "And as soon as the market drops 5%, you have everybody crying."
Write to Peter A. McKay at peter.mckay@wsj.com and E.S. Browning at jim.browning@wsj.com
=============================
source: http://online.wsj.com/article/SB10001424052748703615904575053861015196590.html?mod=WSJ_hpp_sections_markets
By PETER A. MCKAY And E.S. BROWNING
Concerns that Greece's debt woes may spread to other nations mingled with the prospect that the Federal Reserve in the U.S. may soon begin tightening the spigot that helped fuel the markets' massive rebound. Traders cited a report in The Wall Street Journal on Monday that Fed Chairman Ben Bernanke is preparing a plan that the central bank will follow once the economy shows more signs of recovery.
Dow Jones Newswires' Paul Vigna and WSJ's Lee Hawkins details today's market losses and what it means for investors in the News Hub.
The 10000 mark on the Dow has been a frustrating milepost for American investors. The benchmark has crossed above or below the 10000 mark 57 times since first rising above that level in 1999—effectively meaning it has made no progress in more than 10 years. The latest decline could deal another blow to optimism that stocks will continue to rise.
The blue chips fell 103.84 points Monday, or 1%, to 9908.39, their lowest since early November. Banks led the decline—by one measure dropping to their lowest since August. Corporate bond markets also swooned.
The Dow industrials are now down 7.6% from their 15-month high set in January, the biggest drop since the current rally began last March. The only other significant stumble during the powerful rebound was in mid-June to mid-July, when the Dow dropped 7.1%.
Some optimistic investors are shrugging off this decline, saying that stocks were due for a pullback of about 10%. In this view, it is time to look for signs that the declines are losing steam in hopes of buying stocks cheaply. Some bulls appeared to begin buying late on Friday, helping turn the market around on that day. But bearish investors worry that the selling could take stocks down more than 10%, and that rallies like Friday's mark opportunities to sell.
pan20208
pan20208
The current corporate earnings season has been generally favorable: More than 70% of companies in the S&P 500 stock index have beaten earnings estimates. But investors' focus over the past few weeks has been primarily on the creditworthiness of major industrialized countries, which have piled on huge amounts of debt in trying to spend their way out of a steep recession.
"Clearly, the sovereign-debt worries are first and foremost for the market right now," said Uri Landesman, portfolio manager at ING Investment Management. "We're going to need some more clarity on that before we establish a new trend."
U.S. stocks fell on a day when European markets stabilized, demonstrating investors' lingering worries about the U.S. economy. The benchmark indexes in Italy, Portugal and Spain all rose. The British market was mixed, with the FTSE 100 posting a 0.6% gain, while the broader FTSE 250 slipped 0.3%.
After a drubbing over the past few days, the euro was relatively stable against the U.S. dollar. One euro cost $1.3660 in late New York trading, down from $1.3665 on Friday.
[MARKETS]
In the bond market, investors demanded greater compensation for owning corporate debt, driving so-called risk premiums over safe U.S. Treasurys to their highest point in a year. Investors are keeping a particular eye on the corporate bond market after a record rally in 2009. A sharp pullback could make it much more expensive for companies to finance themselves, as the economy remains sluggish.
In the U.S., trading volume in recent weeks has also been sluggish, coming in below last year's average of more then five billion shares a day for stocks traded on the New York Stock Exchange. That reflects investors' nervousness: They are reluctant to commit a lot of money either to supporting stocks or to betting against them.
On Monday, trading volume was about 4.3 billion shares as financial shares led the broader stock market lower. The S&P 500 financial-sector index hit its lowest point since mid-August. Bank of America dropped 3.5%, while American Express fell 2.8%, Travelers declined 2.5%, and J.P. Morgan Chase slipped 1.6%.
Keith W. Springer, president of Capital Financial Advisory Services, notes that market watchers had been saying for months that a pullback has been necessary, but now that the rally in stocks has come to a pause, it has been met with increased alarm.
"Every time you have a market run-up, everybody goes, 'We need a 10% correction,'" Mr. Springer said. "And as soon as the market drops 5%, you have everybody crying."
Write to Peter A. McKay at peter.mckay@wsj.com and E.S. Browning at jim.browning@wsj.com
=============================
source: http://online.wsj.com/article/SB10001424052748703615904575053861015196590.html?mod=WSJ_hpp_sections_markets
EA Shares Down on Lower-Than-Expected Forecast
Monday, February 08, 2010
By Kathryn Glass
FOXBusiness
Despite reporting better-than-expected fourth-quarter results, shares of Electronic Arts Inc. (ERTS) fell nearly 10% in after-hours trading, when the company gave guidance that was below analyst estimates.
The video game software company expects non-GAAP earnings for the current fiscal year ending in March in the range of 50 to 70 cents a share on revenue between $3.65 billion and $3.90 billion. The forecast fell below expectations; analysts polled by Thomson Reuters had expected earnings of 74 cents a share on revenue of $4.07 billion.
EA expects an adjusted loss ranging from 35 cents a share to 40 cents a share in the first fiscal quarter, on non-GAAP revenue between $460 million and $500 million.
In the fiscal third quarter, EA saw a loss of $82 million or 25 cents a share, compared to a year ago when the company saw a loss of $641 million or $2.00 a share.
Adjusted earnings per share fell to $109 million or 33 cents a share, compared to $179 million, or 56 cents a share last year during the quarter. Non-GAAP revenue fell 23% to $1.35 billion, compared to revenue of $1.74 billion a year ago, as a result of fewer video game titles during this holiday season, the company said.
Analysts had predicted adjusted earnings of 31 cents a share on revenue of $1.34 billion.
"EA is growing share in our packaged goods business and our digital businesses continue to grow rapidly," said Chief Executive Officer John Riccitiello in a statement. "Mass Effect 2 is the first blockbuster of 2010 and we are looking forward to the launch of Dante's Inferno and Battlefield Bad Company 2."
Shares of EA were down $1.44 or 8.23% in trading after hours. The stock rose 23 cents or 1.33% to close Monday’s regular session at $17.49 a share.
==================
source: http://www.foxbusiness.com
By Kathryn Glass
FOXBusiness
Despite reporting better-than-expected fourth-quarter results, shares of Electronic Arts Inc. (ERTS) fell nearly 10% in after-hours trading, when the company gave guidance that was below analyst estimates.
The video game software company expects non-GAAP earnings for the current fiscal year ending in March in the range of 50 to 70 cents a share on revenue between $3.65 billion and $3.90 billion. The forecast fell below expectations; analysts polled by Thomson Reuters had expected earnings of 74 cents a share on revenue of $4.07 billion.
EA expects an adjusted loss ranging from 35 cents a share to 40 cents a share in the first fiscal quarter, on non-GAAP revenue between $460 million and $500 million.
In the fiscal third quarter, EA saw a loss of $82 million or 25 cents a share, compared to a year ago when the company saw a loss of $641 million or $2.00 a share.
Adjusted earnings per share fell to $109 million or 33 cents a share, compared to $179 million, or 56 cents a share last year during the quarter. Non-GAAP revenue fell 23% to $1.35 billion, compared to revenue of $1.74 billion a year ago, as a result of fewer video game titles during this holiday season, the company said.
Analysts had predicted adjusted earnings of 31 cents a share on revenue of $1.34 billion.
"EA is growing share in our packaged goods business and our digital businesses continue to grow rapidly," said Chief Executive Officer John Riccitiello in a statement. "Mass Effect 2 is the first blockbuster of 2010 and we are looking forward to the launch of Dante's Inferno and Battlefield Bad Company 2."
Shares of EA were down $1.44 or 8.23% in trading after hours. The stock rose 23 cents or 1.33% to close Monday’s regular session at $17.49 a share.
==================
source: http://www.foxbusiness.com
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