Daimler Forecasts Deliveries to Grow 'Significantly' 
Dec. 7 (Bloomberg) -- Daimler AG, the world’s second-largest maker of luxury cars, said the Mercedes-Benz Cars unit’sfourth-quarter sales will rise “significantly” following thebiggest gain in monthly deliveries this year.
Demand for Mercedes-Benz E- and S-Class sedans boostedsales 16 percent in November to 98,400 cars and sport-utilityvehicles from 84,500 a year earlier, the Stuttgart, Germany-based company said today in a statement.
“We further expanded our position and gained additionalmarket share,” Joachim Schmidt, head of sales for Mercedes,said in the statement. An E-Class station wagon that arrived inshowrooms on Nov. 21 is “a big hit” with customers and willprovide “additional sales momentum.”
Yen's Biggest Drop in Decade No Anomaly With Options
Dec. 7 (Bloomberg) -- Options traders are growing lessbullish on the yen after efforts by Japanese officials to boostthe world’s second-biggest economy and a U.S. jobs report led tothe currency’s biggest weekly decline in a decade.
Japan’s currency plunged 2.5 percent against the dollar and1.3 percent versus the euro on Dec. 4 after the U.S. LaborDepartment said employers cut the fewest jobs since therecession began. The yen rose against the dollar today, aftersinking last week by the most since February 1999, extending aretreat from a 14-year high. Traders sold yen and bought dollarson speculation U.S. interest rates will increase before June.
“The improving U.S. jobs market suggests the FederalReserve won’t stand pat on interest rates longer than the Bankof Japan,” said Kazutoshi Yasuda, general manager of themarkets department in Tokyo at FX Prime Corp., a unit of ItochuCorp. Increased U.S. borrowing costs would lead traders to favorusing yen to finance higher-yielding investments, leading tomore losses for the Japanese currency, he said.
US Treasury Says TARP to Cost $200 Billion Less
Dec. 7 (Bloomberg) -- The Obama administration expects thecost of the Troubled Asset Relief Program to be $200 billionless than projected, helping to reduce the size of the budgetdeficit, a Treasury Department official said yesterday.
The administration forecast in August that the TARP wouldultimately cost $341 billion, once banks had repaid thegovernment for capital injections and other investments.Congress authorized $700 billion for the program in October 2008.
Banks have paid back $71 billion so far, and a plannedrepayment by Bank of America Corp. would bring that figure to$116 billion. Treasury Secretary Timothy Geithner said in aninterview last week that he expects the TARP to get as much as$175 billion in repayments from banks by the end of 2010.
Yen, Dollar Rise on Rate Outlook; Stocks, Commodities Decline
Dec. 7 (Bloomberg) -- The yen strengthened and the dollarrose the most in a month against the euro, as investors weighedwhether the world economy is recovering fast enough to warranthigher central bank interest rates. U.S. stock index futures andcommodities fell.
The yen advanced against all 16 most-traded currenciestracked by Bloomberg as of 10:35 a.m. in London. The dollargained versus 15. The MSCI Emerging Markets Index dropped themost in six days, losing 0.6 percent. Dubai’s equity indexplunged 6.2 percent to a four-month low. The Dow Jones Stoxx 600Index of European companies sank 0.7 percent. Futures on theStandard & Poor’s 500 Index slipped 0.4 percent, while gold fellfor a third day.
Federal Reserve Chairman Ben Bernanke speaks today for thefirst time since the Dec. 4 U.S. employment report signaled asurprise drop in the jobless rate, stoking expectations the Fedmay raise rates sooner than economists had anticipated.Investors are concerned banks may have to increase writedownsthat have reached $1.7 trillion worldwide since the creditcrunch began, as Dubai World seeks to delay payment on $26billion of debt.
Hitachi Sells $3.9 Billion in Stock, Convertible Bonds to Increase Capital
Dec. 7 (Bloomberg) -- Hitachi Ltd., Japan’s fourth-largestcompany by revenue, sold 350.7 billion yen ($3.9 billion) inshares and convertible bonds to help fund new businesses and payoff debt as it heads for a fourth straight annual loss.
The unprofitable maker of everything from vacuum cleanersto nuclear reactors sold 1.09 billion shares at 230 yen each, or3.4 percent less than today’s closing price, Tokyo-based Hitachisaid in a statement. Hitachi also sold 100 billion yen of bondsconvertible into stock.
The company joins NEC Corp. and Toshiba Corp. amongJapanese manufacturers selling stock this year to replenishcapital lost following the global recession. Hitachi may need tosell more shares, dispose of some businesses or post profits tomeet its goal of raising its shareholder’s equity to 20 percentof assets.
Dollar, Stocks Slip After Bernanke Comments
Filed at 4:59 p.m. ET
NEW YORK (Reuters) - The dollar retreated from a five-week high and stocks edged lower on Monday after Federal Reserve Chairman Ben Bernanke doused speculation the Fed would raise interest rates soon, saying the economy remains fragile.
While Bernanke acknowledged the U.S. economy has improved, he said the jobless rate may remain elevated for some time. The remarks deflated market perceptions that last week's strong jobs data would lead the U.S. central bank to raise rates. For details, see: [nN07169826]
Japan Bonds May Rise for 1st Time in Week on Bernanke Remarks
Dec. 8 (Bloomberg) -- Japan’s government bonds may risefor the first time in a week after Treasuries gained onspeculation U.S. interest rates will stay low.
The spread between 10-year debt in the U.S. and Japannarrowed from the widest level in more than three monthsafter Federal Reserve Chairman Ben S. Bernanke said the U.S.faces “significant headwinds.” Japan’s 10-year yields maydecline from a two-week high on expectations stocks will fall,snapping a six-day rally. The Ministry of Finance will sell600 billion yen ($6.7 billion) in 30-year bonds today.
“Bernanke’s remarks were good for bonds,” saidKazuhiko Sano, chief strategist in Tokyo at Citigroup GlobalMarkets Japan Inc. “Overseas market movements will bepositive for domestic debt.”
Yen Climbs After Positive Jobs Data; Oil Advances, Stocks Rise
Dec. 7 (Bloomberg) -- Japan’s currency climbed after thebiggest weekly decline in a decade against the dollar, liftingoil prices. Asian stocks rose after the U.S. reported the lowestmonthly job losses since the recession began.
The yen strengthened against all 16 of its most-tradedcounterparts after the biggest weekly drop against the dollarsince the period ended Feb. 19, 1999. Crude oil advanced from aseven-week low. The MSCI Asia Pacific Index rose 0.38 percent to120.60 at 4:35 p.m. Tokyo time after rising as much as 0.63percent. Stock index futures in Europe and the U.S. fell.
Investors are favoring higher-yielding assets as the firstglobal recession since World War II abates. Demand for workersincreased in Australia, where advertisements for job vacanciesjumped in November by the most since May 2007, and data releasedDec. 4 showed the U.S. unemployment rate unexpectedly fell to 10percent from a 26-year high.
US Treasury Says TARP Costs $200 Billion Less Than Forecast
Dec. 7 (Bloomberg) -- The Obama administration expects thecost of the Troubled Asset Relief Program to be $200 billionless than projected, helping to reduce the size of the budgetdeficit, a Treasury Department official said yesterday.
The administration forecast in August that the TARP wouldultimately cost $341 billion, once banks had repaid thegovernment for capital injections and other investments.Congress authorized $700 billion for the program in October2008.
Banks have paid back $71 billion so far, and a plannedrepayment by Bank of America Corp. would bring that figure to$116 billion. Treasury Secretary Timothy Geithner said in aninterview last week that he expects the TARP to get as much as$175 billion in repayments from banks by the end of 2010.
Concerns About Comcast-NBC
With technology changing Americans’ media experience at breakneck speed, it might seem quaint to worry about the merger of an old-style cable company with a beleaguered broadcast TV company. But there is much to be concerned about in Comcast’s proposed takeover of NBC and its sister company Universal Studios.
The pairing of the nation’s largest cable company with one of the leading television broadcasters, which also owns several popular cable networks, could limit choices and raise prices for viewers and advertisers. As they evaluate the proposed merger, antitrust and communications watchdog agencies should also consider the risks to the emerging business of delivering video entertainment over the Internet — the main competitive threat to cable TV.
Despite shrinking ratings, network TV shows still have the biggest audiences in the country. Under current rules, Comcast could bar rival cable and satellite TV companies from access to desirable NBC shows, or it could offer them only at a high price, bundled with less-attractive content.
