Stock futures point to higher start

(REUTERS, PERCENT, CENTS, ECONOMISTS, SURVEY, SALES)

(Reuters) - Stock futures pointed to a higher start on Wall Street on Wednesday, with futures for the S&P 500 up 0.7 percent, for Dow Jones up 0.5 percent and the Nasdaq 100 futures gaining 0.6 percent.
In Europe, stocks were higher, led by oils and banks, with the FTSEurofirst 300 index up 1.1 percent at 859.84 points at 0900 GMT.
Constellation Brands is reporting first quarter numbers, with analysts expecting the company to report earnings per share of 0.32 cents compared to 0.34 cents a year ago.
General Mills is reporting fourth quarter results with analysts expecting earnings per share of 0.80 cents compared to 0.73 cents a year ago.
Automatic Data Processing (ADP) releases its June employment report at 8:15 a.m. EDT. Economists in a Reuters survey expect 393,000 jobs were lost in June, down from a May job loss figure of 532,000.
At 10 a.m. EDT, the Institute for Supply Management releases its June manufacturing index. Economists in a Reuters survey expect a reading of 44.5 compared with 42.8 in May.
National Association of Realtors issues Pending Home Sales for May at 10 a.m. EDT. Economists in a Reuters survey expect a reading of 6.7 percent, unchanged from the prior month.
Commerce Department releases May construction spending at 10 a.m. EDT. Economists in a Reuters survey forecast a decline of 0.5 percent compared with a 0.8 percent rise the prior month.
U.S. automakers release June auto sales. Economists in a Reuters survey expect annualized sales of 3.33 million cars and 4.00 million trucks. In May, car sales stood at 3.35 million, and truck sales were 4.03 million.
Shares of Pfizer Inc (PFE.N) dropped 1.5 percent to $14.77 after the bell on Tuesday after the company said it was scrapping a late stage trial of its drug Sutent for treatment of a form of colorectal cancer.
Shares of AMAG Pharmaceuticals (AMAG.O) jumped 5 percent to $57.11 after the bell on Tuesday following news that the company`s iron deficiency drug was approved by the U.S. Food & Drug Administration.
U.S. stocks fell on Tuesday as an unexpected drop in consumer confidence cooled recent optimism about an economic recovery, but Wall Street still closed out its best quarter in a decade.
The Dow Jones industrial average .DJI slipped 0.97 percent, the Standard & Poor`s 500 Index .SPX dropped 0.85 percent and the Nasdaq Composite Index .IXIC shed 0.49 percent.
(Reporting by Joanne FrearsonEditing by Hans Peters)
Original article

Fiat CEO says Chrysler cash burn slows: report

(CHRYSLER, COMPANY, EXECUTIVE, MARCHIONNE, ROMEO, DODGE)

MILAN (Reuters) - U.S. automaker Chrysler Group LLC has stemmed the pace at which it uses cash after emerging from bankruptcy last month as a slimmer company, Chief Executive Sergio Marchionne said in an interview with Bloomberg published on Wednesday.
Chrysler went through $9.6 billion in cash in 2008. The Detroit car maker reorganized around what it considered its best assets and $6 billion in fresh financing from the U.S. and Canadian governments.
"We are still burning cash, but it`s slowed down by far," the agency quoted Marchionne, also the chief executive of Italy`s Fiat SpA, as saying.
"The question is how quickly we can stop the bleeding. That is priority No. 1."
He declined to say how quickly the company is using cash.
Marchionne is cutting inventory and adding new platforms and engine technology to redefine the product portfolio.
Fiat acquired 20 percent of the new Chrysler formed from the bankruptcy. The combined company is the world`s sixth-largest carmaker, with annual sales of 4.5 million vehicles.
Marchionne said he wanted to disclose Chrysler`s financial information even though the automaker was not publicly listed, Bloomberg said.
He said he was working with the U.S. Treasury to decide what information Chrysler might report and when.
ALFA ROMEO AND DODGE
By the end of the month, Marchionne wants to decide how the new company will manage its Dodge and Alfa Romeo brands, which he sees as American and European counterparts.
One solution might be to sell Alfa Romeo models under the Dodge brand in the United States and Dodge cars as Alfa Romeos in Europe, Marchionne said.
Chrysler should be able to take control of its European dealer network by September, Marchionne added.
Marchionne said he was not searching for another partner in Europe or Asia, even though his offer for General Motors Corp`s came up short.
He said on Friday he would not sweeten his bid to top frontrunner Magna International Inc`s offer to buy the company, even though he is still interested in the German brand.
The executive said a plan to spin off or list the Italian company`s car-making operations has been put on hold since its bid for Opel is not moving forward.  Continued...
Original article

Geely, others still eye Volvo cars takeover: source

(HOLDING, GEELY, VOLVO, PERSON, VISIT, PROCESS)

By Quentin Webb
LONDON (Reuters) - China`s Beijing Automotive Industry Holding Corp (BAIC), rival Geely, and at least one "Western industrial group" remain interested in Ford Motor Co`s Volvo car unit, a person close to the situation said on Tuesday.
Geely, which has already visited Volvo in Sweden, plans to make a fresh visit soon, the person added. A second person close to the situation said Geely representatives were likely to visit this week.
Ford (F.N) is also hopeful that a consortium of Scandinavian investors may come together to lodge a proposal, the first person said.
John Gardiner, a spokesman for Ford Europe, declined to comment in detail on the sale process. But he said: "We`re still in discussion with a number of parties concerning the future of Volvo. No final decision has been made at this stage and the process will take some time to unfold."
Ford put the money-losing Volvo cars unit up for sale in December, as it looked to cut costs and raise cash amid industrywide record-low vehicle sales. Bankers say the complexity of disentangling Volvo cars from its parent means the process is likely to take a long time.
On May 7, the Hong Kong-listed Geely Automobile Holdings (0175.HK) said it had not submitted, and had no plans to submit, any bid concerning a takeover of Volvo.
However, it is not clear whether that denial would rule out a bid from mainland-based parent company Zhejiang Geely Holding Group, whose owner, Li Shu Fu, is chairman of both firms.
Earlier this month a BAIC spokesman said he was not briefed on the company`s interest in any foreign auto brands, after the Wall Street Journal said it was interested in Volvo and BAIC executives were set to visit Volvo headquarters in Gothenburg.
BAIC and Geely could not immediately be reached by Reuters for comment.
(Reporting by Quentin Webb; Additional reporting by Sven Nordenstam in Stockholm; Editing by Douwe Miedema and Richard Chang)
Original article

Stocks eye job data in July 4th week

By Ellis Mnyandu
NEW YORK (Reuters) - For investors, June`s job data could determine in this short July 4th holiday week if the stock market`s recent rally is reignited or sputters out like a wet firecracker.
The monthly nonfarm payrolls report will come out on Thursday, instead of the usual Friday. U.S. markets will be closed on Friday, July 3, for the long Fourth of July, or Independence Day, holiday weekend.
Investors will pick apart the job figures and reams of other economic data released during the four-day week to see if recent signs of stabilization point to a sustainable economic recovery. Consumer confidence, the Institute for Supply Management`s June index on U.S. manufacturing activity, and domestic car sales are among the major indicators on tap.
Although the U.S. economy has been mired in a recession since December 2007, investors` optimism has increased since early March amid growing signs that the extent of the economic slump is moderating.
That optimism has provided a crucial underpinning to stocks since the Standard & Poor`s 500 Index .SPX hit a 12-year closing low on March 9. This spring, the S&P 500 climbed as much as 40 percent from that low; at Friday`s close, it was still up 35.8 percent.
While unpleasant surprises may trigger a long-awaited correction, analysts said evidence of further economic stabilization would make the bulls grow bolder and help stocks break out of their recent consolidation range.
"It is going to depend a lot on where the surprise is," Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois, said, referring to the nonfarm payrolls data.
"In the last report, people looked at the fact that the decline in payrolls was not nearly as large as expected, but the unemployment rate jumped tremendously. At the end of the day, that jump trumped things."
JOBLESS RATE NEAR 10 PERCENT
U.S. nonfarm payrolls are forecast to lose 355,000 jobs in June versus May`s slide of 345,000, according to economists polled by Reuters.
The U.S. unemployment rate is projected to rise to 9.6 percent in June from 9.4 percent in May.
"We think that a spike in the rate of unemployment could actually be a positive, as it may signal that discouraged workers are coming in from the sidelines and starting to look for work again," said Phil Orlando, chief equity market strategist at Federated Investors in New York.
"There may be something else that plays out next week, a sort of portfolio window dressing effect. There`s still a ton of cash sitting on the sidelines right now."
For the past week, the three major U.S. stock indexes were mixed. The blue-chip Dow Jones industrial average .DJI slipped 1.2 percent, while the S&P 500 dipped 0.3 percent, and the Nasdaq .IXIC gained 0.6 percent.
Holiday-shortened weeks tend to be volatile.  Continued...
Original article

Tata Motors launches Jaguar, Land Rover in India

By Janaki Krishnan
MUMBAI (Reuters) - Tata Motors Ltd (TAMO.BO), India`s largest vehicles maker, on Sunday announced the launch in India of Jaguar and Land Rover vehicles, the marquee brands it bought from Ford Motors (F.N) last year.
Saying it was a momentous occasion for the company, chairman Ratan Tata said, "This is in keeping with our desire to extend the penetration of the brands in India."
The automobile firm, which controls about 60 percent of the world`s fifth-biggest truck and bus market, will soon also be rolling out the Nano, billed as the world`s cheapest car.
Jaguar is launching the XF amd XK range of luxury coupes and convertibles in India starting at a price tag of 6.3 million rupees ($130,977) and going up to 9 million rupees.
Land Rover will initially be launching three vehicles including the Range Rover Sport and Land Rover Discovery 3, with prices also starting at 6.3 million rupees but going beyond 9 million.
"The luxury car market in India is very small, but there is a huge opportunity there. It is growing fast and we expect it to grow fast over the next 5 to 10 years," said David Smith, chief executive of Jaguar Land Rover.
"India is an important part of our plans for the future," said Mike Driscoll, managing director of Jaguar.
The luxury car segment in India is less than 1 percent of the total car market there.
On Friday Tata Motors posted its first loss in eight years at $520 million for the year to March 2009, with its Jaguar Land Rover unit reporting a loss of 306 million pounds ($504 million) in the 10 months of the fiscal year to March 2009, as a brutal global recession crippled car sales.
On the issue of loan guarantees for JLR, Tata said, "we are in discussions with the U.K. government on the loan guarantees and hopefully we will find a solution for it ... and our funding plan for JLR will progress."
The company is seeking guarantees for the 340 million pounds loan sanctioned by the European Investment Bank and other loans from U.K.-based commercial banks. It is seeking these funds to develop new and more fuel efficient cars for improving its competitive position.
"Sustaining the downturn is important for us ... and finding a solution (for the loan guarantees) is extremely important to us," Tata said.
He also said that if there was a large financial package from the U.K. government for Jaguar and Land Rover then, "there should be commensurate level of representation from them," which had to be negotiated and worked out.
($1=48.1 rupees)
(Editing by Jerry Norton)
Original article

Stocks eye jobs, other data in July 4th week

By Ellis Mnyandu
NEW YORK (Reuters) - For stock investors, June`s job report could be a make-or-break factor next week in determining whether the recent rally has legs or not.
The monthly non-farm payrolls data will come out on Thursday, instead of the usual Friday. U.S. markets will be closed on Friday, July 3rd, for the long Fourth of July, or Independence Day, holiday weekend.
Investors will pick apart the job figures and reams of other economic data released during this four-day week to assess if recent signs of stabilization point to a sustainable economic recovery. Consumer confidence, the Institute for Supply Management`s June index on U.S. manufacturing activity, and domestic car sales are among the major indicators on tap.
Although the U.S. economy has been mired in a recession since December 2007, investors` optimism has increased since early March amid growing signs that the extent of the economic slump is moderating.
That optimism has provided a crucial underpinning to stocks since the Standard & Poor`s 500 Index .SPX hit a 12-year closing low on March 9. This spring, the S&P 500 climbed as much as 40 percent from that low; at Friday`s close, it was still up 35.8 percent.
While unpleasant surprises may trigger a long-awaited correction, analysts said evidence of further economic stabilization would make the bulls grow bolder and help stocks break out of their recent consolidation range.
"It is going to depend a lot on where the surprise is," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois, referring to the non-farm payrolls data.
"In the last report, people looked at the fact that the decline in payrolls was not nearly as large as expected, but the unemployment rate jumped tremendously. At the end of the day, that jump trumped things."
JOBLESS RATE NEAR 10 PERCENT
U.S. non-farm payrolls are forecast to lose 355,000 jobs in June versus May`s slide of 345,000, according to economists polled by Reuters.
The U.S. unemployment rate is projected to jump to 9.6 percent in June from 9.4 percent in May.
"We think that a spike in the rate of unemployment could actually be a positive, as it may signal that discouraged workers are coming in from the sidelines and starting to look for work again," said Phil Orlando, chief equity market strategist at Federated Investors in New York.
"There may be something else that plays out next week, a sort of portfolio window dressing effect. There`s still a ton of cash sitting on the sidelines right now."
At Friday`s close, the three major U.S. stock indexes finished the week mixed. The blue-chip Dow Jones industrial average .DJI slipped 1.2 percent, while the S&P 500 dipped 0.3 percent, and the Nasdaq .IXIC gained 0.6 percent.
Holiday-shortened weeks tend to be volatile.  Continued...
Original article

Porsche fumes at VW, Lower Saxony "extortion"

FRANKFURT (Reuters) - Volkswagen and its key shareholder, the state of Lower Saxony, have confronted Porsche with an ultimatum to accept a tie-up of the two carmakers under VW`s tutelage or else face more severe financial turmoil, Web site Spiegel online reported.
Porsche Chief Executive Wendelin Wiedeking and Chairman Wolfgang Porsche have been urged to agree by the end of June that VW takes a 49 percent stake in Porsche`s sports car business for 3-4 billion euros ($4.2-$5.6 billion), Spiegel magazine reported in its online edition on Saturday, without saying who provided the information.
According to the proposal, the Emirate of Qatar would buy Porsche`s stock options in VW, which would subsequently integrate the Porsche sports car business into its operations.
VW would not comment on the report. Porsche was not immediately available for comment, neither was the Emirate of Qatar.
The new merged carmaker would eventually be 40 percent owned by the Porsche and Piech families, 20 percent owned by Lower Saxony, 15 percent owned by Qatar with another sovereign wealth fund holding a further 5 percent, Spiegel reported.
VW threatened it could insist on redemption in September of a 700 million euro loan it granted to Porsche, should Porsche reject the offer, Spiegel online said.
Porsche racked up 9 billion euros of debt trying to swallow its much bigger peer Volkswagen before the financial crisis turned the tables and threatened to unravel the deal.
Porsche, which owns 51 percent in VW, had abandoned plans to raise its stake to 75 percent but still owns options to buy VW shares.
The tie-up proposal was devised by Christian Wulff, the state premier of Lower Saxony, which holds a blocking minority of 20 percent in VW, as well as Porsche co-owner Ferdinand Piech and by the CEO and CFO of VW, Spiegel online said.
Qatar would only pursue an investment in a merged VW and Porsche if all major shareholders agree on the set-up, the Web site added.
In a separate article, daily Sueddeutsche Zeitung reported on Saturday that Qatar plans to buy Porsche`s stock options in VW and is no longer interested in buying an interest in Porsche alone, citing unspecified sources.
Porsche had said on Friday it was close to reaching a deal with Qatar that could help solve its financial problems.
(Reporting by Ludwig Burger, Hendrik Sackmann and Arno Schuetze)
Original article

Toyota`s new boss warns of two more tough years

Chang-Ran Kim; Asia Autos Correspondent
TOKYO (Reuters) - Toyota Motor Corp`s new president, the grandson of the group`s founder, warned on Thursday the auto industry faces another two tough years as he outlined his strategy to return the world`s No.1 car company to profit.
Toyota aims to build more autonomous operations in North America and shift its focus to marketing a region-specific vehicle line-up, rather than offering a full line-up in every region, Akio Toyoda told his first media conference in the job.
Most of Toyota`s factories around the world are underused as a global recession hammers car sales, sending two of America`s three big car makers into receivership.
Facing a second year of record losses, Toyota aims to cut costs from its already lean operations so it can be profitable using just 70 percent of its factory capacity.
"We want to do everything possible to avoid a third consecutive year of losses," Toyoda told reporters.
Toyoda said European efforts would focus on hybrid models.
Its remodeled Prius hybrid, launched last month, has been a rare bright spot, winning more than 180,000 orders in Japan.
Production has been limited to two plants so far, creating a bottleneck for delivery, while analysts say the fuel-sipping model could eat into sales of Toyota`s other more profitable cars.
Toyoda has said he aims to steer the company "back to basics" -- a promise also made by his predecessor, Katsuaki Watanabe, when he took over in 2005 as Toyota`s factories scrambled to meet soaring demand.
The push for profits would not involve plant closures, Executive Vice President Atsushi Niimi told the news conference.
"Right now, the market is very tough. But in two years, or at most three years, it will recover so we want to make sure we have the means to meet demand then," said Niimi, who heads manufacturing operations in Toyoda`s new-look executive team.
At the annual meeting this week, Toyota promised shareholders to do better to recover from a 461 billion yen ($4.8 billion) operating loss.
For the year to March 2010, it has forecast an even bigger loss, of 850 billion yen, although consensus forecasts are for a much smaller loss of 495 billion yen.
Unlike bankrupt U.S. rivals Chrysler and General Motors, Toyota has said it plans to ride out the downturn without slashing full-time jobs.
Many industry executives have said recent sales trends in major markets such as the United States and Japan indicate that demand has bottomed, but opinion is divided over when it will recover convincingly.  Continued...
Original article