Focus on Daimlerchrysler---Ron (slow)
>> u.k. consume consumer credit grew at the fastest rate in the month of june. this follows a $3 billion gain in may. mortgage lending growth also picked up as low interest rates boosted consumer borrowing. lending increased to more than $12.5 billion in june, exceeding economists’ forecasts. daimlerchrysler is planning a bond sale worth the least half a billion euros. the jernel an automaker will sell two-year notes this week, according to someone familiar with the deal. daimlerchrysler reported a decline in profit, but was better than analysts expected. daimlerchrysler has $53 billion worth of bonds outstanding. investors in asia are waiting for more tech earnings and ron madison in our tokyo bureau joins us with a preview.
>> we could actually see the japanese market follow the u.s. lower after the consumer confidence numbers came out. it could spark concern about the u.s. recovery. but as you say, it is another day that investors will probably have their sights set on the tech companies. earnings continue today with companies including toshiba and matsushita electrical industrial. fujitsu widened its first-half loss forecast yesterday and today toshiba is expected to say that its net loss dropped to 4 billion yen. investors are betting on sales of popular items including cameras on cell phones will increase. one fund manager we spoke to has already started taking a cautious tone. yojy tacada of r.b.s. investment management says japanese tech stocks are rising on expectations at the moment but there is the possibility that first-quarter profits will not be as good as expected because investment in the i.t. industry hasn’t recovered and we doesn’t believe there will be upward surprises from the major companies like matsushita electric and toshiba. takeda is guessing that markets are quieting down after what he called an adjustment. speaking of matsushita electric industrial, that company sells brands under the panasonic name. it may report a rise in first-quarter profit of 60%. analysts surveyed by bloomberg expect the world’s biggest consumer electronics maker to report results of seven billion yen. matsushita has increased profit in japan by releasing flat panel tv’s and d.v.d.s at lower prices than rivals. the company has relied on payroll cuts to boost earnings. and as well, lane, we’ll watch for other earnings out today including t.d.k. out with first-quarter results, ricoh and fan uc.
>> before all that, we’ll hear about japan’s economy.
>> more economic reports are due out today and industrial production for june is expected to have risen for a second straight month. economists surveyed by bloomberg expect industrial output to rise to .5% in june after 2.5% increase in may. that’s what i have for you now, lane. we’ll sort the first call out when “moneycast asia” starts here in tokeia.
>> “bloomberg international” is coming up next at 6:00 p.m., new york time, 3:00 p.m. in california and early in tokeia. shares of tyco international traded lower after the company said fourth-quarter profits would miss analysts’ estimates. the world’s largest maker of securities systems and industrial valves said a securities and exchange commission investigation into finances continues. tyco’s fiscal third-quarter net income was 27 cents a share, compared to a loss of $1.35 the year before. operating earnings of 32 cents a share missed the 35-cent analyst estimate. tyco had to restate $630 million in expenses. currently, the tyco company forecasts a range of 32 to 35 cents a share for the current quarter. cyberonics shares reached a 52-week high today, climbing more than 15%. the medical devices maker said the market for epilepsy market expands and cyberonics chief executive sees profits rising.
>> we see strong sales growth this quarter and continue to see improvements in productivity and we expect the quarterly annual e.p.s. growth will be 145% in the first-quarter.
>> those earnings are expected out next tuesday. cyberonics, which makes devices to treat epilepsy by using electrical impulses, has seen its stock up 11.33% in the latest session. second-quarter earnings at omnicom group were up. the world’s largest owner of advertising agencies won new accounts and benefited from the dollar’s decline. net income rose to $190 million. per-share earnings were in line with estimates. omnicom added customers through acquisitions and won new accounts in the quarter. international revenue increased 21% due to favorable foreign exchange rates. still to come, a lot going on in the economy this week. consumer confidence out today, of course. john lonski, chief economist at moody’s, will review key economic numbers out later this week. the chicago purchasing report and employment and institute for supply management report is all coming up. stay with us.
