Delta, SkyTeam Offer $1 Billion to JAL

Darlington Musarurwa
18 Nov, 2009
New York City

Delta Airlines and SkyTeam agreed to extend $1 billion to JAL. NTT DoCoMo to introduce 4G telecom service in late 2010. MUFJ and Morgan Stanley may keep brokerage operations separate, despite the expected merger.

[R]5:00 AM New York, 7:00 PM Tokyo - Delta Airlines and SkyTeam agreed to extend $1 billion to JAL. NTT DoCoMo to introduce 4G telecom service in late 2010. MUFJ and Morgan Stanley may keep brokerage operations separate, despite the expected merger.[/R]

Japan stocks fell 0.6% led by realty stocks as Tokyo Tatemono announced a share sale of 45.6 billion yen.

In Tokyo trading Nikkei 225 Index decreased 0.6% or 53.13 to 9,676.80, and the broader Topix Index fell 0.8% to 850.06.

In the first section of the Tokyo Stock Exchange 9.9 billion shares worth 629 billion yen were traded and in the second section 318 million shares valued at 2.9 billion yen changed hands.

Of the Nikkei 225 index shares, 67 rose, 146 dropped, and 12 were unchanged. Mitsubishi Motors led gainers in the index shares with a rise of 4.8% followed by Kao Corp. increasing 4.2%.

Delta Air, SkyTeam Alliance to Extend $1 billion to JAL

Nikkei News reported today Delta Airlines and SkyTeam alliance will extend $1.02 billion to Japan Airlines Corp.

According to the report, Delta will provide $300 million for short-term sales risks, while SkyTeam will provide $500 million.

In addition, Delta and SkyTem will extend $20 million for associated costs of Japan Airlines’ transfer to SkyTeam and another $200 million in asset-backed financing.

NTT DoCoMO to Introduce 4G LTE Service in December

Separately, the Nikkei online edition reported NTT DoCoMo’s President Ryuji Yamada said in a speech at the GSMA Mobile Asia Congress in Hong Kong the company intends to invest 300 billion yen in fourth-generation mobile services.

The fourth generation service will be launched in December 2010. Yamada noted the mobile phone carrier will phase out second-generation mobile services in March 2011.

MUFJ, Morgan Stanley to Review Merger

Japan Today reported today on its Web site that Mitsubishi UFG Financial Group and Morgan Stanley will review the planned merger of their Japanese brokerage units.

Through the revised plan, Morgan Stanley Japan’s trading business will remain under Morgan Stanley group after the merger.

The merger of Mitsubishi UFJ Securities Co. and Morgan Stanley Japan Securities Co. will create Japan’s second largest securities company by revenue.

Yen Rises 0.3%

The yen rose 0.3% to 89.15 against the U.S. dollar against 89.20 yesterday.

Gainers & Losers

Mitsubishi Motors led advancers in the Nikkei 225 index shares with a rise of 4.8% followed by increases in Kao Corp. of 4.2%, in Dainippon Sumitomo of 3.4%, in East Japan Railway of 3.3%, and Advantest Corp. of 3%.

Tokyu Land Corp. led decliners in the Nikkei 225 index shares with a drop of 10.7% followed by losses in Taiheiyo Cement of 10.6%, in Sumitomo Mitsui Financial Group of 5.9%, in Sumitomo Realty of 5.9%, and Heiwa Real Estate of 5.8%.

Other realty stocks fell. Mitsubishi Estates declined 4.5% to 1,307 yen, Mitsui Fudosan climbed down 3.8% to 1,395 yen.