Yesterday, Panasonic revealed that their operating profit forecast dropped down by 40%. Last month, however, they said that it was too soon to say anything about the effects of the economic crisis.
They expect to have an operational profit of Y340bn and a net loss of Y98.5bn. According to the company, this is due to “restructuring costs and losses on its securities portfolio”.
The finance director of Panasonic causes the decreased sales to "the rapid economic slowdown and lower prices due to fierce competition", but in September, the company’s president said that they were not having serious problems with the sales.
Because of the negative news, the consumers are afraid that the biggest rivals of the Japanese electronics giant have not been honest about the effects of the crisis. For instance, Sony has announced a cut of almost 60% in operational profits.
Of the total amount of reduction, Y80bn is due to price competition with Korea. The rest is caused by a setback in sales, mostly of electronic parts for cars. The Japanese company is thinking of closing or selling product lines that are not profitable.
The company wants to cut Y500bn of capital expenditure this year, and it thinks that the situation will continue for next year.
The president of Panasonic did not commented the take-over bid for Sanyo, one of its biggest rivals.
We see that the crisis is still having its effects. Even after 2 to 3 months, there are still companies that get into trouble. I think that several companies will follow in the next few months, companies of which we thought that they would not get into problems.
It ‘s bad that companies as big as Panasonic get that negative results. These companies are crucial for the economy. This news must be very hard for the shareholders, because of it, the share value decreased.
But as I said above, I think that many shareholders will lose a lot of their investments in the next months, which is kind of logic with a crisis this big.
For people who want to start invest, this is a good time. Shares are low. The only problem is that the people don’t trust it anymore, but I’m convinced that confidence is what we need in order to restore.
Source: The Financial Times - Panasonic slashes profit forecast by 40% after surprise sales dip -
http://www.ft.com/cms/s/0/ea7cef08-bceb-11dd-af5a-0000779fd18c.html
zaterdag 29 november 2008
European shares surge on bargain-hunting
Their was a lot of turbulence on the markets this week. There was bad news about the economy and corporate news but the investors began also with bargain-hunting.
We are in interesting economic days now and you can see that on the markets. Rallies of this proportion you usually don’t see but the reason for these rallies are the markets, markets that lost 50 percent in 1 year is something you either don’t see.
For example the FTSE Eurofirst 300, they gained 1.1 per cent profit on Friday and only this week they gained 13.3 per cent. But also the FTSE Eurofirst 300 lost 50 per cent when you compare it with one year ago.
Their was a lot of bad news but this didn’t make a difference for the investors. They taught the bad news was already in the price per share. The volumes were also light because Thursday the Thanksgiving holiday started in the United States.
Let’s have an overview about the stocks now.
The solar market that was hit very hard by the crisis made a spectacular rebound. Renewable Energy and Q-Cells won 50 per cent, that is an unexpected rebound.
The technology sector did not so good after STMicroelectronics came with bad news. The investors were surprised and the shares increased. They forecast they will lose some money, the lost would be 13 per cent.
Shares in STM had a bad day Friday but when you compare it with the week results they won. 1 to 2 per cent. Infineon did a good job, they won 8 per cent this week.
Allianz sold Thursday Dresdner Bank division to Commerzbank, this helped to raise the share with 39.8 per cent. The deal was sealed for a long time because they were afraid about the threatens of this transaction. This deal is positive according to Allianz, they were never satisfied about the Dresdner Bank, but this deal is positive for Allianz.
The financial shares did a good job, Commerzbank rose 32.5 per cent this week, Deutsche bank won 48.8 per cent.
The future of the motor industry is dark after Renault halted his productions in Moscow.
I think this week was satisfied for the markets but there is a lot of uncertainty on the markets.
There are a lot of investors who think on short term. They hope the shares that lost a lot one day ago that they will win a lot today. After 1 day they sell their shares.
People with a lot of money influence the markets like this. They buy a lot of shares on Monday for example so the volume gain, and the price also decrease on Tuesday. After Tuesday they just sell their shares, the volume increased and the price per share also.
This is not a good technique for the markets, the markets need investors who think on long term. Not just on 1 day or 2. This will restore the confidence and when the confidence is restored, the markets can recover.
Source: http://www.ft.com/cms/s/0/4ca4fb4a-bd36-11dd-bba1-0000779fd18c.html
We are in interesting economic days now and you can see that on the markets. Rallies of this proportion you usually don’t see but the reason for these rallies are the markets, markets that lost 50 percent in 1 year is something you either don’t see.
For example the FTSE Eurofirst 300, they gained 1.1 per cent profit on Friday and only this week they gained 13.3 per cent. But also the FTSE Eurofirst 300 lost 50 per cent when you compare it with one year ago.
Their was a lot of bad news but this didn’t make a difference for the investors. They taught the bad news was already in the price per share. The volumes were also light because Thursday the Thanksgiving holiday started in the United States.
Let’s have an overview about the stocks now.
The solar market that was hit very hard by the crisis made a spectacular rebound. Renewable Energy and Q-Cells won 50 per cent, that is an unexpected rebound.
The technology sector did not so good after STMicroelectronics came with bad news. The investors were surprised and the shares increased. They forecast they will lose some money, the lost would be 13 per cent.
Shares in STM had a bad day Friday but when you compare it with the week results they won. 1 to 2 per cent. Infineon did a good job, they won 8 per cent this week.
Allianz sold Thursday Dresdner Bank division to Commerzbank, this helped to raise the share with 39.8 per cent. The deal was sealed for a long time because they were afraid about the threatens of this transaction. This deal is positive according to Allianz, they were never satisfied about the Dresdner Bank, but this deal is positive for Allianz.
The financial shares did a good job, Commerzbank rose 32.5 per cent this week, Deutsche bank won 48.8 per cent.
The future of the motor industry is dark after Renault halted his productions in Moscow.
I think this week was satisfied for the markets but there is a lot of uncertainty on the markets.
There are a lot of investors who think on short term. They hope the shares that lost a lot one day ago that they will win a lot today. After 1 day they sell their shares.
People with a lot of money influence the markets like this. They buy a lot of shares on Monday for example so the volume gain, and the price also decrease on Tuesday. After Tuesday they just sell their shares, the volume increased and the price per share also.
This is not a good technique for the markets, the markets need investors who think on long term. Not just on 1 day or 2. This will restore the confidence and when the confidence is restored, the markets can recover.
Source: http://www.ft.com/cms/s/0/4ca4fb4a-bd36-11dd-bba1-0000779fd18c.html
vrijdag 28 november 2008
Mumbai Markets Poised For Fall
The Indian stock market was doing very bad, like all other global markets, but any hope of recovery was destroyed when militant attacks hit Mumbai and caused death to 104 persons. People expect that the Bombay Stock Exchange will fall very fast when trading begins again on Friday.
This Thursday, the exchange and all other major bourses like the National Stock Exchange and the currency exchange were suspended because of these militant attacks. This is not the first time that there has been an terrorist attack in Mumbai. In 1993 there has been a similar attack on three hotels and the Bombay Stock Exchange. But the attacks now are different from the ones that happened in 1993 because now the attacks threaten to increase the instability in the country, and it is already suffering a lot due to the financial crisis.
A few weeks earlier, the International Monetary Fund forecasted that the growth of the Indian economy would decline with 0.6%. Tougher credit conditions from the banks will lower the consumer spending and the country’s IT outsourcing sector is also going to have troubles in the near future. The Indian economy strongly depends on the American customer, and when they spend less money, the economy of India will suffer a lot. This is already happening on the Indian equity market. Foreign Investors have pulled out their investments to invest in more safer products. The leading Sensex index has already lost 56.0% since the start of the year.
The militant attacks will have great consequences for the Indian economy. The business will be discouraged and tourism will decrease as well, because the attack happened in what is a prime location for tourists and business people. When people want to invest they want to invest in a country that has law and order. With the lack of confidence of the investors, this kind of attack was the last thing India needed.
It is the first time that I hear news about the economy of India. It seems that the Indian economy is having a lot of trouble, just like all other great economies at the moment. The militant attacks will have a very great impact on the confidence of the investors, and this comes at a really bad timing for the Indian economy. Because they needed to close the bourse, for the safety of the people, investors will pull back a lot of their capital they had invested in India.
The real consequences of the attacks will only be clear within a certain period, but the prospects don’t look very good. It will be necessary for the Indian government to restore the peace and try to keep the damage done as low as possible.
Source: Forbes: Mumbai Markets Poised For Fall
http://www.forbes.com/markets/2008/11/27/india-outlook-friday-markets-equity-cx_vr_1127markets10a.html
This Thursday, the exchange and all other major bourses like the National Stock Exchange and the currency exchange were suspended because of these militant attacks. This is not the first time that there has been an terrorist attack in Mumbai. In 1993 there has been a similar attack on three hotels and the Bombay Stock Exchange. But the attacks now are different from the ones that happened in 1993 because now the attacks threaten to increase the instability in the country, and it is already suffering a lot due to the financial crisis.
A few weeks earlier, the International Monetary Fund forecasted that the growth of the Indian economy would decline with 0.6%. Tougher credit conditions from the banks will lower the consumer spending and the country’s IT outsourcing sector is also going to have troubles in the near future. The Indian economy strongly depends on the American customer, and when they spend less money, the economy of India will suffer a lot. This is already happening on the Indian equity market. Foreign Investors have pulled out their investments to invest in more safer products. The leading Sensex index has already lost 56.0% since the start of the year.
The militant attacks will have great consequences for the Indian economy. The business will be discouraged and tourism will decrease as well, because the attack happened in what is a prime location for tourists and business people. When people want to invest they want to invest in a country that has law and order. With the lack of confidence of the investors, this kind of attack was the last thing India needed.
It is the first time that I hear news about the economy of India. It seems that the Indian economy is having a lot of trouble, just like all other great economies at the moment. The militant attacks will have a very great impact on the confidence of the investors, and this comes at a really bad timing for the Indian economy. Because they needed to close the bourse, for the safety of the people, investors will pull back a lot of their capital they had invested in India.
The real consequences of the attacks will only be clear within a certain period, but the prospects don’t look very good. It will be necessary for the Indian government to restore the peace and try to keep the damage done as low as possible.
Source: Forbes: Mumbai Markets Poised For Fall
http://www.forbes.com/markets/2008/11/27/india-outlook-friday-markets-equity-cx_vr_1127markets10a.html
zondag 23 november 2008
BNP On Tenterhooks
On Tuesday the share of BNP Paribas dropped with 9.2%. There are two big reasons for the decrease. The first one is the prediction that BNP Paribas needs a capital raise for keeping operative. There are speculations that the core capital of BNP is not adequate anymore.
The second reason is the court that must decide whether the purchase of Fortis was valid or not.The Belgian government sold Fortis to BNP Paribas without the permission of his shareholders. The shareholders went to court to argue the sale.
Like other French banks BNP Paribas has raised his capital by a government bailout. Now analysts believe that the money from the bailout was not enough. This is because other European banks have a higher core capital ratio than BNP.
I think the judgement of the Belgium court was a good thing for BNP and FortisThe court in Belgium has approved the sale of Fortis. They have done that in the advance of the households who have their saving money on the bank. I think that when they didn’t approved the purchase the Belgian government and Fortis could get in trouble. Now everything is quiet for a while and BNP can search for solutions to become profitable again. On the other hand I understand the shareholders of Fortis whose shares have a very low value. They should receive a compensation from the Belgian government for selling Fortis whiteout permission.
Source: http://www.forbes.com/markets/2008/11/18/bnp-paribas-fortis-markets-equity-cx_vr_1118markets09.html
The second reason is the court that must decide whether the purchase of Fortis was valid or not.The Belgian government sold Fortis to BNP Paribas without the permission of his shareholders. The shareholders went to court to argue the sale.
Like other French banks BNP Paribas has raised his capital by a government bailout. Now analysts believe that the money from the bailout was not enough. This is because other European banks have a higher core capital ratio than BNP.
I think the judgement of the Belgium court was a good thing for BNP and FortisThe court in Belgium has approved the sale of Fortis. They have done that in the advance of the households who have their saving money on the bank. I think that when they didn’t approved the purchase the Belgian government and Fortis could get in trouble. Now everything is quiet for a while and BNP can search for solutions to become profitable again. On the other hand I understand the shareholders of Fortis whose shares have a very low value. They should receive a compensation from the Belgian government for selling Fortis whiteout permission.
Source: http://www.forbes.com/markets/2008/11/18/bnp-paribas-fortis-markets-equity-cx_vr_1118markets09.html
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