Nardelli Appointed CEO of Chrysler

Elena
06 Aug, 2007
New York City

Chrysler

[R]10:00AM New York, 2:00PM London – European markets traded lower on the fall out from the U.S. mortgage bonds losses and weakness in Asian trading.[/R]

European markets declined after the first four hours of trading in the region. Norway led the region with a loss of 1.9% followed by 0.7% decrease in France, a 0.45% decline in the Netherlands. Spain and Switzerland lost 0.2%. Germany and the U.K. bucked the regional loss with a gain 0.2%.

In London trading FTSE 100 increased 8 to 6,232.00. The index lost its earlier gain of nearly 20 points. Of the 102 stocks listed in the index 38 were trading higher, 61 were trading lower, and 3 were unchanged at mid-day trading.

Imperial Chemical gained 1.1% after the news that Akzo Nobel and Henkel KGaA have agreed to offer 8 billion pounds or 6.70 pounds per share. The consortium of Dutch and German companies revised bid is designed the break ICI into separate business groups. Electronic materials and adhesives groups will be purchased by Henkel for 2.7 billion pounds.

Standard Life rose 3% leading all members of the FTSE 100 index followed by 2.7% gain in International Power. The power generation company has acquired wind farms in Italy and Germany. GlaxoSmithKline, AstraZeneca, and British American Tobacco gained more than 1%. Punch Taverns and Man Group fell 4%, leading the decliners in the index. Miners including Lonmin, Kazakhmys, Rio Tinto, and BHP dropped more than 2% on the falling metals prices in European trading.

In Frankfurt trading DAX index gained 0.2% or 14.5 to 7,451 at mid-day trading. Of the 30 member stocks 11 declined and 19 gained.

Munich Re second quarter earnings increased to 1.14 billion euros from 1.12 billion euros a year ago and raised its earnings forecast for the year between 3.5 billion to 3.8 billion euros from 3.0 billion to 3.2 billion euros. Net premiums earned in the quarter rose 0.6% to 8.86 billion euros in the quarter.

Infineon Tech led the decliners with a loss of 2.5% followed by 2% decline in Thyssen Krupp and Daimler AG. Hypo Real Estate, Deutsche Post, and Deutsche Bank fell 1.5%. Merck KGaA and Volkwagen gained led the gainers on the index with a rise of 2.6%. Infineon said that chief finance officer of the company has been asked to leave. Siemens rallied nearly 1% on the news that it has won 350 million euro order from Kuwait Ministry of energy. Deutsche Wohnen and Leoni AG gained on broker upgrade and recommendations.


[R]09:45AM Wall Street rallied at opening, but lost steam amid credit concerns.[/R]

Wall Street rallied at opening Monday but shortly afterwards erased gains amid growing concerns over credit markets and the impact of subprime mortgages on financial institutions. Credit worries were underlined by American Home Mortgage ((AHM)) which dropped 36% after bankruptcy filing.

Bear Stearns ((BSC)) fell 4% after defending its actions in the credit market and laying off a key executive. Merrill Lynch ((MER)) traded near the flat line after UBS upgraded the stock to a buy rating. TD Ameritrade ((AMTD)) was another stock that got an upgrade from UBS. Its shares edged down 0.2%.

In earnings-related news, UnitedHealth Group ((UNH)), health insurer, rose 1.5% after raising its earnings forecast for 2007. Cooper Tire & Rubber Co. ((CTB)) climbed 38% as it swung to a better-than-expected Q2 profit, driven by higher prices in North America and strong growth in Europe and Asia.

In the first hour of trading, the Dow Jones industrial average rose 40.32, or 0.31%, to 13,222.23. The Standard & Poor''s 500 index rose 2.09, or 0.15%, to 1,435.15, and the Nasdaq composite index fell 2.34, or 0.09%, to 2,508.91. The yield on the 10-year note rose to 4.69% from 4.68% late Friday. Bond prices move opposite their yields.


[R]09:00AM U.S. stock futures pointed higher, helped by Merrill lynch upgrade.[/R]

U.S. stock futures advanced slightly on Monday, lifted by gains in the troubled financial services sector and speculations that the Fed Reserve will soothe economic fears and decide on interest-rate policy that will be favorable to the economy’s health. The Fed is expected to keep its benchmark target range unchanged at 5.25%.

The positive news for financial stocks was brought by Merrill Lynch ((MER)) which gained 1.8% in pre-market trading after UBS raised its rating on the shares of the brokerage to a buy from neutral. TD Ameritrade ((AMTD)) was also upgraded by UBS, pushing its shares up 3%.

However, investors remained somewhart cautious over the prospect of more worrying developments in housing. American Home Mortgage Investment ((AHM)) dropped 35% after it filed for Chaper 11 bankruptcy protection on Monday. The co-president of Bear Stearns Cos. ((BSC)) resigned shortly after a rating company warned mortgage credit problems could hurt the investment bank''''s profits.

On the earnings news front, Warren Buffett''''s Berkshire Hathaway ((BRKA)) posted a 33% profit jump amid a strong performance from its insurance businesses. Other companies scheduled to release earnings include Conseco ((CNO)) and EMC ((EMC)). S&P 500 futures were up 4.6 points. Dow Jones industrial average futures rose 19 points, and Nasdaq 100 futures gained 6 points.


[R]8:30AM New York, 7:00PM Hong Kong – Australia and other Asian stocks fell on market nervousness and fear that the U.S. bond market worries may slow the economy in the U.S.[/R]

Singapore led the region with a decline of 3.7% followed by 3.6% fall in Indonesia, 2.8% loss in Philippines, Hong Kong, and Thailand, 1.8% decrease in Australia, and 1.2% drop in Taiwan.

In Tokyo trading, Nikkei 225 Index fell 65.40 or 0.4% to 16,914.46 along with other markets in Asia. Credit worries in the U.S. markets led indexes across the region open at lower level and close at the lows of the day. Tokyo rebounded from the mi-day loss of more than 1.7%. Of the 225 stocks in the Nikkei index 127 declined, 87 closed higher, and 11 were unchanged. NSK Limited plunged 7% and Misubishi Electric gained 6.4% of all the stocks listed in the index.

In Shanghai trading the Shanghai Composite Index gained 1.5% to close at 4,628.11 and CSI 300 Index jumped 2.3% to close at 4,704. The only market to rise in the region was led by a sharp increase in steel, copper and petroleum companies. Wuhan Iron & Steel and Maanshan Iron & Steel soared 8% and Baoshan Steel increased 6.2%. The industry sales and profit have been rising at a steady pace. Chalco and Jiagxi Copper jumped 10% their daily limit on firmer metal prices in the international trading.

In Sydney trading ASX 200 fell 1.7% to close at 5,920.20 on weakness in banks, retail, and resource sectors. Of the 200 stocks in the index 188 fell and 23 stocks declined by 5%. Macquarie Bank dropped another 6.5% after reporting losses of as much as in two of its bond funds. Macquarie Bank stock has declined to A$91.74 from A$70.05.

National Australia Bank, St George Bank, Commonwealth Bank fell near 1% on worries that deepening crisis in the U.S. mortgage lending may get worst. Uranium King fell 18% after the company said that its chief executive has resigned. BHP Billiton, Rio Tinto, and Woodside Petroleum fell 2%.


[R]7:00AM New York, 8:00PM Tokyo – Nikkei in Tokyo trading fell dragging other markets in Asia. Index recovered from its worst level of the day in the afternoon.[/R]

Nikkei 225 Index fell 65.40 or 0.4% to 16,914.46 along with other markets in Asia. Credit worries in the U.S. markets led indexes across the region open at lower level and close at the lows of the day. Tokyo rebounded from the mi-day loss of more than 1.7%.

Of the 225 stocks in the Nikkei index 127 declined, 87 closed higher, and 11 were unchanged. NSK Limited plunged 7% and Misubishi Electric gained 6.4% of all the stocks listed in the index.

Carry trade unwinding lifted yen against dollar and euro. One dollar fetched 117.65 yen from 1118 yen and one euro closed at 162.62 yen compared to 163.53 in previous session.

Banks, brokerage and other financial stocks fell on the worries that continued uncertainty in the U.S. mortgage market may have hidden liabilities in Japan. Mitsubishi Trust fell 3.6%, Daiwa Securities declined 4%, Nomura Holdings dropped 3%, and Mizuho Financial Group and Shinsei Group fell 2.5%.

Toyota jumped 1.4% to7,180 yen after reporting 32% rise in earnings on sales increase of 16%. The earnings in the quarter of 491.5 billion beat the estimates of most analysts on higher international sales. Toyota unit sales declined in Japan but sales in rest of Asia, Europe, and the U.S. increased. The company also guided its annual unit sales out look to 8.89 million units.

Export sensitive stocks fell on the worries that strengthening yen will crimp profits of electronics and machinery companies. Canon fell 2.5% to close at 6,370 yen.

Sony fell 3% to close at 5,930 yen on rising yen and worries that a delay in launch of revised version of popular game from Take Two Interactive may affect Sony PlayStation 3 sales.

Consumer, industrial and stocks not related to financial markets managed to close higher. NGK Insulators jumped 6%, Japan Tobacco advanced 4%, Kubota Corp rose 2.6%. West Japan Railways increased 2.6% and East Japan railways edged 1.5% higher. Fall in oil prices lifted stocks of utilities and oil refining companies. Inpex Holdings, Nippon Mining, All Nippon Air, Nippon Express, and Kansai Electric Power jumped more than 1%.

Mitsubishi Electric led the stocks in Nikkei Index after its joint venture with Hitachi Renesas Technology expects its China sales to double in the next four to five years.