Market Briefing---Kathleen (slow)
Tokyo market---Cathy (fast)
>> low fare airline airtran holdings has been one of the very few profitable airlines over the last several years. airtran’s c.e.o. joseph leonard told bloomberg tv this morning that the airline expects to turn a profit again this year.
>> we can make money in the worst of times, we certainly can make money as the economy rebounds. and we are seeing pretty strong bookings for the summer.
>> airtran yesterday made some headlines as it placed a $5 billion order with boeing. that order is for as many as 110 planes, as airtran moves to double its fleet and expand. leonard said the time is right for making that deal.
>> one of the things we do is we buy airplanes at the bottom of the cycle. we did that eight years ago when our company launched the boeing 717. we think the best time to buy airplanes is when other people are not buying. that is certainly the case right now, and that environment you get a better deal.
>> shares of airtrantouched a 52-week high at the open before coming back. now, fiat has agreed to sell its aerospace unit to u.s. buyout firm carlyle group. and italy’s state owned defense company, finmeccanica. the price tag is $1.7 billion. the new company will buy the fiat avio unit. carlyle is seeking other acquisitions. the buyout firm plans to bid for daimler chrysler’s s.m.t.u. aero engines unit as well and carlyle and rivals are finding more opportunities in europe than in the u.s. as fiat and daimler chrysler and other companies sell assets to repay debt. now, asian computer related stocks may be amongst stocks to watch following the nasdaq’s gains today. bloomberg’s catherine yang in our tokyo bureau joins us with a preview of today’s trading there. cathy.
>> well, the rally in microsoft and other computer headline can―related companies in the u.s. may help lift shares of asian rivals like japan’s n.e.c. the nikkei 225 at the chicago mercantile exchange closed higher at the nikkei singapore. it’s a sign that traders expect stocks to open higher when trading begins in tokyo. the bank of new york japan a.d.r. index rose. n.e.c. is japan’s second largest maker of semiconductors. the manager of $8.6 billion says investors speculating the u.s. economy will recover towards the end of the year is boosting the u.s. and japan stock markets. the topix had its biggest gain in eight months on wednesday’s trade. the unexpected rise in u.s. factory orders may also help shares of exporters like japan’s toyota motor as well as south korea’s00-day motor t bank of new york korea a.d.r. index rose. optimism of a pickup in final demand may increase sales of toy motor―toyota motors cars. the dollar’s fall again the yen may limit gains in exporters t stronger yen erodes sales outside japan. the manager of $600 million in assets says the yen’s rise against the dollar may be limited, yes he’s still buying stocks . the time is ticking and he’s paying particular attention to small and medium companies like fuji pharmaceutical. kathleen.
>> i understand south korea’s kanero telecom decides whether or not to accept an investment from rn international group new bridge capital.
>> the directors will be meeting today to approve whether they want to get an investment from a.i.g. as well as new bridge capital. they want to sell the stake to these companies but there has been a lot of opposition coming from the biggest shareholder who oppose ts plan. samsung securities says even if the plan is approved by the directors it won’t go through without l.g.’s support. i’ll watching asian exporters and computer related stocks .
>> catherine yang in our tokyo bureau. now, europe’s economy may return to growth in the second half of the year. however, it still faces sigd risks. that’s according to the european commission. the european central bank lowered its growth forecast last month saying the economy may grow as little as 4/10 percent this year. the bank also trimmed interest rates three times since december. they are now at 2%. the european commission says that consumers whose incomes are being bolstered by cheaper imports and low inflation are the key to the pickup in growth. and speaking of the european central bank according to a new bloomberg survey, it will―we will see lo interest rates by another quarter by the end of september. we spoke to 21 economists who say the e.c.b. will lower the benchmark rate to 1.75% to help the economy start growing again. economists say the european economy will grow 4/10 percent in the third quarter. down from 8/10 percent in the first three months of this year. still to come, our next guest manages 15 billion in bonds.
