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04/07/07

Auto sales wobble in June, GM plunges

TOKYO/DETROIT (Reuters) - General Motors Corp. on Tuesday posted a steeper-than-expected 24 percent drop in U.S. sales in June as local automakers lost share to Toyota Motor Corp. <7203.T> and other Japanese brands, and demand sputtered overall in the face of high gas prices and a weak housing market. Shares of GM dropped more than 4 percent after the holiday-shortened close of trade on the New York Stock Exchange in reaction to the sales shortfall and indications the largest U.S. automaker would have to respond with bigger discounts.

Blackstone to buy Hilton for $20 billion

LOS ANGELES (Reuters) - U.S. private equity firm Blackstone Group agreed on Tuesday to buy Hilton Hotels Corp. for about $20 billion plus debt, the richest in a series of recent private equity offers for hotel companies. Under terms of deal, Blackstone will pay $47.50 per share in cash, a 32 percent premium to Tuesday's closing price, for one of the most prominent global hotel brand names.

RIM wins permission to sell in China: paper

OTTAWA (Reuters) - Research In Motion Ltd. has won permission to sell its BlackBerry device in China after eight years of effort, the Globe and Mail newspaper said on Wednesday. After several delays, the Canadian technology company won approval last month from the Chinese Ministry of Information Industry to sell its handsets, the newspaper said.

Barclays says progress on ABN deal shows certainty

LONDON (Reuters) - Progress made by Britain's Barclays in its offer for ABN AMRO demonstrates its ability to offer the Dutch bank's shareholders "certainty and deliverability," Chief Executive John Varley said on Wednesday. "We have made pre-completion regulatory and competition authority filings in 49 jurisdictions globally," Varley said in comments made available to Reuters.

BCE rating could fall over 6 notches: S&P

LONDON (Reuters) - The rating on Canadian telecoms company BCE Inc. could fall by over six notches if its buyout by an investor consortium is fully debt-financed, ratings agency Standard & Poor's said on Wednesday. BCE, currently rated A-, could have its rating cut to the B category if the deal is fully debt-financed, leading to adjusted debt leverage of more than 8.5 times, S&P said.

Firm metals, M&A seen boosting Toronto stocks

TORONTO (Reuters) - Toronto stocks were seen opening higher on Wednesday, adding to strong gains from the previous session, as firm commodity prices and positive momentum from recent mergers and acquisitions activity underpin the market. But trading could be light with the U.S. markets closed for the Independence Day holiday.

China-made Chryslers to reach U.S. by 2010

BEIJING (Reuters) - The first Made-in-China Chrysler cars, built by local partner Chery Automobile Co., could reach the United States or Europe within 30 months, as ambitious Chinese rivals race to penetrate the world's big auto markets. Ten-year old Chery, Geely Automobile <0175.HK> and Brilliance China Automotive Holdings <1114.HK> already export to developing markets, but have had little success in mature markets where competition is more intense.

Oil eases from 10-month high above $73

LONDON (Reuters) - Oil edged down on Wednesday from a 10-month high above $73 a barrel, though analysts expected the rally to resume due to low U.S. fuel inventories and expectations of strong gasoline demand. U.S. gasoline inventories, which remain below those of a year earlier, probably rose by just 300,000 barrels last week, according to a Reuters poll of analysts. Demand is as strong as ever.

Booming M&A lift world stocks to lifetime peaks

LONDON (Reuters) - World stocks surged to another lifetime peak on Wednesday as robust economic growth and flourishing corporate takeover activity helped to ease concerns about the prospect of higher borrowing costs. Bonds fell and credit markets strengthened in a sign that investors regained confidence that the U.S. economy is on a steady path -- as indicated by Monday's firm manufacturing data -- and problems about the high-risk subprime mortgage sector was unlikely to inflict broader damage.

Fiat says Cinquecento will become the iPod of cars

MILAN (Reuters) - It was the small car you could park in the narrowest space on the piazza, as Italian as Prosciutto and espresso. On its 50th birthday the Cinquecento is back, and Fiat says it will become the iPod of cars. Fiat is launching a new version of the three-door Cinquecento -- which means "500" in Italian -- at a ceremony in its hometown of Turin on Wednesday, with the car making its comeback after going out of production in the 1970s.

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