Donnerstag, 1. Juli 2010

GM Sales on Core Brands Up 36% in June

General Motors says its June U.S. Sales for core brands in June were up 36%.

Analysts expect most automakers, led by GM, to show double-digit percentage gains in sales from the depressed sales results of a year earlier. That would represent the eighth consecutive month of year-on-year gains.

Industry tracking firm Edmunds.com sees GM sales up 17% in June from a year earlier, while projecting gains of 33% for Chrysler and 17% for Ford Motor Co (F).

Toyota (TM), tarnished by a series of safety recalls earlier this year, lagged rivals even after it extended sales incentives for a fourth consecutive month to win back consumers, Edmunds said.

The forecasting firm expects Toyota to post gains of 9% in June U.S. sales, less than gains of 10% and 25% it sees for Honda and Nissan, respectively.

Overall, incentives in June held flat from May but rose 6% from a year ago led by Toyota, industry tracking firm Truecar.com said. Toyota spent 33% more on discounts per vehicle in June than a year ago, sharply above the industry's average of $2,870 per vehicle.

"With the recovery not progressing as expected, it's gut-check time for the automotive industry," Schuster said.

"The industry's (pricing) discipline will be put to the test even more in the coming months if a more pronounced recovery doesn't get under way."

One key measure for the industry will be retail sales of cars, trucks, SUVs and crossovers. Sales gains in recent months, especially for Detroit automakers, have been boosted by sales of less-profitable vehicles to fleet operators, including car rental agencies.

Most automakers do not break out how many of their sales went to consumers and how many to fleet operators.

In one indicator of underlying consumer demand, AutoNation Inc, the leading auto dealership chain, will release its own sales figures Friday.

Home sales take unexpected dipWarnaco Boosts View; 1Q Results Beat the Street

CURRENCIES: Dollar Extends Losses After Weak ISM, Housing Data

The dollar extended losses against the euro and Japan's yen on Thursday after data showed U.S. jobless claims rose, pending home sales plunged and manufacturing activity slowed, all signaling weakness in the country's economic outlook.

The European single currency had been higher before the U.S. data after Spain managed to sell out 3.5 billion euros ($4.3 billion) of five-year bonds.

The dollar index (DXY), a measure of the greenback against a trade-weighted basket of six major currencies, fell to 84.717 from 86.012 late Wednesday.

The euro (CUR_EURUSD) rallied to $1.2486, up from $1.2247 in North American trading late Wednesday. It hasn't topped $1.24 intraday since June 21.

The daily move weakened a recent trend where the dollar gained when stocks fell, as investors shifted out of assets deemed riskier and into the relative safe-haven of the greenback.

"As U.S. growth concerns mount, the greenback is no longer finding a safe-haven bid," said analysts at Action Economics. "To a degree, it appears the risk trade is being replaced with fundamentals."

Before the financial crisis, the main driver of currency markets was expectations about interest rates, because countries with stronger economies and higher interest rates were more attractive to investors and generally led to them buying the currency. Many analysts expect markets to revert back to that pattern, but it's been in fits in starts this year.

The dollar extended losses Thursday after a slew of weak U.S. economic data. The Labor Department said initial claims for jobless benefits rose 13,000 to 472,000 last week, confounding economists' expectation that applications would tick lower from the previous week.

Later, the Institute for Supply Management's manufacturing index fell to 56.2 in June from 59.7 in May, more than many analysts anticipated. A separate report showed pending home sales fell 30% in May.

"The problem in the current recovery is that it has largely been concentrated in the manufacturing sector and if growth in the sector slows, and it is, then there is no sector ready to take the growth baton," said Dan Greenhaus, chief economic strategist at Miller Tabak.

Earlier, the Spanish government sold the maximum amount of debt it was trying to auction. Bids received exceeded supply by 1.7 times, a ratio down from 2.35 times in a May 6 bond auction. The average yield rose to 3.657%, up from 3.532% at the May auction.

The auction came a day after Moody's Investors Service placed the nation's Aaa sovereign credit rating under review for possible downgrade.

"Although Spain had to pay up a higher rate than the previous auction the fact that it was able to place all of its allotment of 3.5 billion was viewed with relief by the market," said Boris Schlossberg, director of currency research at GFT. That "spurred a sharp short-covering rally in the currency market that took the pair through the $1.2300 handle."

The single currency temporarily edged back below the $1.23 level after the European Central Bank said it allotted 111.2 billion ($135.9 billion) in six-day loans at the benchmark rate of 1%. The operation came on the same day that banks must repay 442 billion in one-year loans.

"It seems that appetite for government debt remains alive and that fears for euro-zone sovereign risk maybe slimming at the margin," said Andrew Wilkinson, senior market analyst at Interactive Brokers.

Analysts said strong participation in the short-term tender muted support for the euro somewhat, although overall demand for loans in the six-day operation and in Wednesday's three-month tender came in below expectations. Still, concerns remain about funding pressures for European banks.

The euro lost 9.5% against the dollar last quarter, the worst performance since the quarter ended September 2008.

Meanwhile, the S&P 500 Index (SPX) lost 11.9% last quarter, and fell another 1% on Thursday.

Riksbank rates

Meanwhile, traders focused on the Swedish krona in light of the decision Thursday by Sweden's central bank to hike its key lending rate to 0.5%, up from 0.25% previously.

The euro sold for 9.6268 krone, a gain of almost 1%.

The Riksbank also offered a gloomy assessment of Swedish economic prospects.

While the Scandinavian nation's economy is developing "strongly," the Riksbank said it won't be hiking rates as "rapidly as we previously assumed" due to expectations that the 16-nation euro zone -- Sweden's main trading partner -- will take a hit as a result of budgetary belt-tightening.

British pound, Japanese yen

Turning higher in recent trading, the British pound (CUR_GBPUSD) rose about 1.3% to $1.5156 after having been slightly lower. Sterling changed hands at $1.4961 on Wednesday.

A purchasing managers index for Britain's manufacturing sector showed activity continued to grow at a fast pace in June, although it slowed from the 15-year peak seen in May.

The dollar also dropped 1.1% against the yen (CUR_USDYEN), reaching a two-month low as it fell to ��87.49 from ��88.48 on Wednesday.

The yen benefited from a stronger-than-expected headline figure in the Bank of Japan's quarterly tankan survey of business sentiment.

But sentiment in stock markets across Asia got undercut by disappointing Chinese manufacturing data, which indicated a slowdown in growth for the regional powerhouse. Broad-based selling in stocks sent risk-averse investors scurrying into the lower-yielding yen.

Copyright 2009 Dow Jones Newswires

Home construction fails to lift recoveryEuro Falls Below $1.20 on Hungary Fears

Dienstag, 29. Juni 2010

Update: Kagan Says She Respects Precedent on Gun Rulings

(Update with comments from Kagan in 2nd and 7th paragraphs)

Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- U.S. Supreme Court nominee Elena Kagan said Tuesday she wouldn't try to undo recent rulings on gun ownership rights, citing judicial deference to precedent setting opinions.

Kagan, speaking at her Senate confirmation hearing, said the "operating assumption of our legal system is that a judge respects precedent. One defers to prior justices. It's not enough even if you think something is wrong."

The Supreme Court ruled 5-4 Monday that the U.S. Constitution includes a right to gun ownership for self defense. The ruling in McDonald v. Chicago builds on an earlier opinion, Columbia v. Heller, that struck down restrictive handgun ownership laws in Washington, D.C. and ruled for the first time that the Second Amendment was an individual right like the rest of the Bill of Rights.

Kagan's comments came as Sen. Dianne Feinstein (D., Calif.) questioned her about her views of the gun rights rulings.

"States are different," Feinstein said "Why is a five-to-four decision in two quick cases, why does it throw out decades of precedent?"

Sen. Chuck Grassley (R., Iowa) pressed Kagan on her views of the Second Amendment and whether she believes that the right to bear arms is an individual right and whether she believes gun rights apply across the country.

Kagan would only say, "There's no question that going forward that Heller is the law, that it is entitled to all the precedent that any decision is entitled to."

Kagan was nominated to replace Justice John Paul Stevens, who announced his retirement earlier this year. She is currently the U.S. solicitor general, the primary legal advocate for the executive branch.

Copyright 2009 Dow Jones Newswires

Graham: Most People Would Consider Kagan Qualified To Be Supreme Court JusticeGaylord’s stock takes a bounce higher this morning on Wall Street

Hedge Funds May Be Close To Winning Scuffle Over US Financial Bill

WASHINGTON -(Dow Jones)- Hedge funds may be close to victory in an effort to avoid paying some $14 billion that lawmakers had hoped to levy on them to help pay for a massive financial overhaul measure.

Senate Banking Committee Chairman Christopher Dodd (D., Conn.) on Tuesday said hedge funds wouldn't be required to pay under a new money-raising formulation being discussed among lawmakers negotiating the bill.

Those on the conference committee of Senate and House members hammering out the final version of the financial bill were forced to take another look at the new industry "tax"--tucked into the final version of the bill in the wee hours of the morning last week--after a key Republican who had previously supported the bill threatened to vote against it.

Sen. Scott Brown (R., Mass.) said Tuesday that he would oppose the bill if it included the $19 billion in fees.

Hedge fund executives said the new fees unfairly singled out hedge funds and other firms that actively manage financial portfolios.

The financial-overhaul conference report now requires regulators raise some $19 billion over five years by charging financial institutions and hedge funds risk-based fees.

Lawmakers are looking at reopening the bill to change that provision.

Without a change, about 20 to 30 hedge-fund firms would be required to pay, according to an analysis from congressional Republicans. Hedge-fund executives said the fees on their industry, excluding the money received from banks, could top $14 billion.

"The inclusion of hedge funds in this financial tax suggests that our industry has been singled out for more onerous treatment," said Todd Groome, chairman of Alternative Investment Management Association, a global representative of hedge funds.

"We'll definitely push against it," Groome had told Dow Jones Newswires Monday.

Groome didn't have to wait long. By Tuesday, conferees were scrambling to find other ways to pay for the $19 billion shortfall in the bill without imposing anything that looks like a tax.

Hedge-fund representatives said their industry has suffered a bad name in the public and among policymakers since the financial meltdown. They are hoping new registration requirements in the financial bill will make their activities more transparent.

The Securities and Exchange Commission will be charged with monitoring hedge funds after the financial bill passes, a move the industry supports.

The first order of business for the SEC will be to ensure that hedge funds aren't defrauding their customers, that they have the money they say they have, according to people familiar with the matter. Eventually, the SEC will be able to collect data on hedge-fund activities, which will help regulators charged with monitoring the overall financial sector for risky behavior.

"Hopefully it'll help to eliminate some misperceptions, which sometimes are more political than reality," Groome said. "With hedge funds providing information, there are no dark corners anymore."

Hedge funds have helped lawmakers craft the financial-overhaul bill for more than a year, seeing its new registration requirements as a benefit to attracting large institutional investors such as pension funds.

Copyright 2009 Dow Jones Newswires

UPDATE: EU Lawmakers Approve Rules For Hedge Funds,Private EquityFinancial overhaul measures rile small banks

Graham: Most People Would Consider Kagan Qualified To Be Supreme Court Justice

WASHINGTON -(Dow Jones)- An influential Republican on the Senate Judiciary Committee said Monday he believed most Americans would believe that Solicitor General Elena Kagan is qualified to sit on the Supreme Court.

Sen. Lindsey Graham (R., S.C.), a moderate Republican who is influential among the party's lawmakers, said Monday that the right to nominate an individual to the high court is a consequence of presidential elections. Addressing the nominee, Graham said: "it's OK to be liberal, it's OK to be conservative, that's just America."

He said a judge needs to be able to set aside his or her personal political biases and rule with impartiality on matters before the court.

Graham's comments followed those of fellow Republican Sen. Orrin Hatch (R., Utah) earlier at Kagan's nomination hearing, which appeared to indicate the solicitor general may win some Republican support on the Judiciary Committee.

Other Republicans, including the ranking minority member Sen. Jeff Sessions (R., Ala.) have adopted a harsher stance, arguing that Kagan's lack of experience as a judge and work for the Clinton and now Obama administrations call into question her suitability to sit on the Supreme Court.

Sen. John Cornyn (R., Tex.), a member of the Republican Senate leadership and a former judge in the Lone Star state, said Associate Justice Sonia Sotomayor told the judiciary panel during her confirmation hearing last year that she didn't believe a justice's personal opinions and biases should play a factor in their decisions.

But since then, Cornyn said, Sotomayor had sided with the liberal members of the high court 95% of the time in their unabashedly activist approach to determining court rulings.

Copyright 2009 Dow Jones Newswires

UPDATE: NYC Discriminated In Hiring Bridge Painters -JudgeFake CMA festival merchandise can be seized on the spot

US SEC Alleges Purported Fund Manager Ran $105 Million Ponzi Scheme

DOW JONES NEWSWIRES

The Securities and Exchange Commission on Monday announced fraud charges and an emergency asset freeze against a purported fund manager based in the U.S. Virgin Islands who allegedly perpetrated a $105 million Ponzi scheme against investors.

The SEC alleges that Daniel Spitzer, a resident of St. Thomas, used several entities and sales agents to misrepresent to investors that their money would be put in funds that, in turn, would be invested primarily in foreign currency.

Investors were falsely told that Spitzer's funds had never lost money and historically produced profitable annual returns that one year reached over 180%, according to the SEC. Spitzer instead used the funds raised from new investors to pay earlier investors, and misappropriated other funds to pay unrelated business expenses, the SEC said. He allegedly concealed the scheme by issuing phony documents to investors that led them to believe their investments were profiting.

The SEC has obtained an emergency court order freezing the assets of Spitzer and his companies. An investigation into the alleged fraud is ongoing.

The alleged scheme, which took place from at least 2004 to the present, involved 400 investors. Spitzer allegedly only invested about $30 million of the more than $105 million he raised from investors.

The SEC's complaint further alleges that Spitzer used offshore bank accounts to pay purported business expenses to his companies. He also allegedly led an extravagant lifestyle and spent more than $900,000 at a Las Vegas casino.

According to the complaint, Spitzer's scheme is "on the verge of collapse" as he has attempted to delay and avoid paying investor redemptions. As recently as March, Spitzer obtained $100,000 from an investor for an investment in one of his purportedly more conservative funds. Rather than invest the money, Spitzer allegedly used a portion of the money in April to pay other investors and third-party expenses.

Attempts to reach Spitzer were unsuccessful.

In a typical Ponzi scheme, funds from new investors are used to pay "profits" to earlier investors. Since Bernard Madoff admitted running a massive Ponzi scheme that involved billions of dollars late in 2008, dozens of similar, smaller cases have been brought to light.

Copyright 2009 Dow Jones Newswires

Virginia Man Accused In Ponzi Scheme Denies SEC ChargesNashville car salesman gets 51 months in prison for $2.7M fraud

Sonntag, 27. Juni 2010

Japan's Kan Distances Himself From Tax Hike; Only Wants Talks

TORONTO -(Dow Jones)- Japanese Prime Minister Naoto Kan Saturday distanced himself further from a controversial idea to raise Japan's sales tax rate to help reduce the country's debt, saying he's only asking for cross-party debate on tax issues.

"My proposal only goes as far as inviting" other parties to discuss tax issues with the ruling Democratic Party of Japan, Kan told reporters after attending a meeting of the leaders of the Group of Eight industrialized countries.

Public support for lifting Japan's currently 5% consumption tax rate has wavered, with some polls suggesting that voters understand the need for a tax hike to fix the country's fiscal health, but other surveys indicating that when actual numbers for the tax raise are brought up, the idea becomes less popular.

Kan, who took office on June 8, has said he would use the opposition Liberal Democratic Party's proposal for a doubling of the tax rate to 10% "as a reference", without committing himself to lifting the tax to that level.

The prime minister repeated Saturday that he's only calling for cross-party discussions on overhauling Japan's tax policy soon after Upper House elections on July 11 wrap up.

Other political parties including the LDP have appeared reluctant to take part in Kan's proposed tax discussions, with some saying raising the regressive tax would hurt the poor.

Turning to the July Upper House elections, Kan repeated that he's aiming for more than 54 victories for the DPJ, which he leads. The number of DPJ seats that will be contested is 54, but the party needs to win 60 seats to get an outright majority that won't require it to form a coalition.

Polls over the weekend predicted that the DPJ would keep around 54 seats in the Upper House, but that it might struggle to find a coalition partner with which to form a majority.

Copyright 2009 Dow Jones Newswires

US Reps Want Pay-Day Lenders, Private Student Lenders Under Consumer AgencyFairs, seminars to help businesses with flood recovery