Real Time Economics: Trump Announces ‘New Phase’ For U.S.-EU Trade, Auto Tariffs On Hold

This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here. Good morning! Today we look at a thaw in U.S.-EU relations, trade fallout for Detroit’s Big Three, how China killed Qualcomm purchase of a Dutch chip maker, a big drop for Chinese investment in the U.S., and how many steel jobs there are in America. FRIENDSHIP NEVER ENDS President Donald Trump and European Commission President Jean-Claude Juncker turned down the heat on a trade dispute between two of the world’s largest economic powers. The leaders agreed to begin discussions on eliminating tariffs and subsidies, and to resolve U.S. Steel and aluminum tariffs as well as Europe’s retaliatory measures, Valentina Pop, Vivian Salama and Bob Davis report. The deal: The EU buys more natural gas and soybeans from the U.S., and the two sides “work together toward Continue reading "Real Time Economics: Trump Announces ‘New Phase’ For U.S.-EU Trade, Auto Tariffs On Hold"

Real Time Economics: Trump Threatens Europe With Auto Tariffs, Auto Industry Pushes Back

This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here. Good morning! Today we look at President Trump’s warning to Europe, Fed Chairman Jerome Powell’s outreach to Congress, fallout from tariffs, Republican policy shifts on trade and deficits, and how health-care coverage is increasingly determined by where you live.  ‘CARS IS THE BIG ONE’ President Donald Trump threatened “tremendous retribution” against the European Union if the bloc doesn’t lift trade barriers on farm goods, cars, medical equipment and other products. The U.S. hammer: “Cars is the big one,” Mr. Trump said. The president’s warning of sweeping tariffs on automobile imports comes despite strong and growing resistance from foreign and domestic auto makers, auto dealers, parts manufacturers and some lawmakers, Chester Dawson and Joshua Zumbrun report. Auto tariffs are the subject of a Commerce Department hearing Thursday and are expected to be Continue reading "Real Time Economics: Trump Threatens Europe With Auto Tariffs, Auto Industry Pushes Back"

Real Time Economics: Tax Cuts, Trade Disputes, Messy Brexit and a Bag of Sliders

This is the web version of the WSJ’s newsletter on the economy. You can sign up for daily delivery here. Good morning! Today we look at the economy’s response to tax cuts, trouble for America’s auto exports, how rising wages are eating into corporate profits, President Trump’s Supreme Court pick, more Brexit uncertainty, and why fewer White Castles will get renovated this year. ABOUT THAT ECONOMIC STIMULUS… Last year’s tax cuts and spending increases will likely provide less of a boost to economic growth than many forecasters predict—and possibly none at all. That’s because the changes took effect at a time when the economy was already firing on all cylinders. As a result, there are fewer unemployed workers, spare resources and idled factories ready to kick into action than there would have been during a downturn, Federal Reserve Bank of San Francisco economists said in a new report. Indeed, the next recession Continue reading "Real Time Economics: Tax Cuts, Trade Disputes, Messy Brexit and a Bag of Sliders"

Real Time Economics: Why Markets Love the Fed Minutes and Hate Auto Tariffs

This is the web version of the WSJ’s economic newsletter. You can sign up for daily delivery here. Good morning! Today, our Fed watcher, Nick Timiraos, digs into the newly dovish Fed take on inflation, we look at potential new U.S. tariffs on auto imports, and find employers using putting greens and craft beer to lure workers into the plumbing industry. JUST WAIT A MINUTE Stocks and bonds rallied strongly on the release of minutes from the Fed’s May meeting thanks to new hints that officials are relaxed about inflation​, WSJ Fed watcher Nick Timiraos tells us​. First, the minutes detail a discussion in which officials saw “a temporary period of inflation modestly above 2%” as “helpful in anchoring longer-run inflation expectations.” That reinforces prior signals that inflation over 2% won’t bother them: they’ve emphasized their inflation target is symmetric, meaning they won’t dial up rate increases if inflation rises above Continue reading "Real Time Economics: Why Markets Love the Fed Minutes and Hate Auto Tariffs"

Real Time Economics: Why Markets Love the Fed Minutes and Hate Auto Tariffs

This is the web version of the WSJ’s economic newsletter. You can sign up for daily delivery here. Good morning! Today, our Fed watcher, Nick Timiraos, digs into the newly dovish Fed take on inflation, we look at potential new U.S. tariffs on auto imports, and find employers using putting greens and craft beer to lure workers into the plumbing industry. JUST WAIT A MINUTE Stocks and bonds rallied strongly on the release of minutes from the Fed’s May meeting thanks to new hints that officials are relaxed about inflation​, WSJ Fed watcher Nick Timiraos tells us​. First, the minutes detail a discussion in which officials saw “a temporary period of inflation modestly above 2%” as “helpful in anchoring longer-run inflation expectations.” That reinforces prior signals that inflation over 2% won’t bother them: they’ve emphasized their inflation target is symmetric, meaning they won’t dial up rate increases if inflation rises above Continue reading "Real Time Economics: Why Markets Love the Fed Minutes and Hate Auto Tariffs"

Improving Car Sales Help Fuel Auto-Parts Deals

Bloomberg News/Jeff Kowalsky
Amid steadily increasing car sales, money is pouring into the auto-parts space as large players seek to bulk up and private equity investors look for acquisitions. Gores Group and Jordan Co. are among the latest private equity firms to benefit from this drive for deals. As LBO Wire reported this week, Gores is nearing a sale of Sage Automotive Interiors Inc. to fellow buyout shop Clearlake Capital Group after slightly more than three years of ownership. Meanwhile, Jordan Co.’s Cap-Con Automotive Technologies Ltd. agreed to sell off its Casco Automotive Group to Amphenol Corp. in a deal valued at $450 million. Private equity firms have already committed more than $6 billion to the space year to date, according to Dealogic Ltd., though much of that capital is attributable to one megadeal: Blackstone Group’s buyout of Gates Global Inc. Overall mergers and acquisitions in the auto-parts sector is on track for a big year. So far in 2014, $19.41 billion has been invested in 276 deals, the highest dollar amount since 2011, when $22.52 billion was invested in 495 deals. Strong car sales in North America and China are helping bolster demand for components across the board, said Mike Wall, an auto analyst with IHS Inc. Companies that survived the downturn are lean and efficient, having cut costs and, in some cases, picked up assets from businesses that fell by the wayside, said Mr. Wall. Those low costs paired with high demand from auto makers is translating into profitability, and margins in the double digits for some businesses, he said. That could make them attractive targets for private equity acquirers, or good candidates for an exit. With easy access to financing, suppliers large and small are looking at acquisitions as a way to expand offerings or into different geographies, making it a prime time for private equity firms still holding onto auto parts assets to sell, Mr. Wall said. Although the auto parts sector is still heavily cyclical, Mr. Wall said the protracted recovery from the last economic bust would likely leave the opportunity open for more deals and consolidation in the sector. “There’s still room to run,” he said. Write to Hillary Canada at hillary.canada@wsj.com

Sienna Minivans Join the Toyota Recall List

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Toyota TM logoMore bad news for Japanese auto maker Toyota Motor Corp. (TM), with the company announcing that it was recalling around 600,000 Sienna minivans sold in the United States.

The latest in a string of safety concerns involves potentially rusted spare tire cables that could break, allowing the minivan's spare tire to bust loose and tumble into the road.

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Sienna Minivans Join the Toyota Recall List originally appeared on BloggingStocks on Sat, 17 Apr 2010 09:40:00 EST. Please see our terms for use of feeds.

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Ford (F) posts surprising profit for its third quarter

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American auto maker Ford Motor (NYSE: F) gave investors a reason to smile this morning when it posted a surprising $1 billion profit for its third quarter.

Going into this morning's earnings release, analysts had expected to see the Dearborn, Michigan-based auto manufacturer to lose 12 cents per share. But Ford had other ideas, posting a profit of 29 cents per share, or $997 million.

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Ford (F) posts surprising profit for its third quarter originally appeared on BloggingStocks on Mon, 02 Nov 2009 08:20:00 EST. Please see our terms for use of feeds.

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General Motors finalizes Hummer deal

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General Motors Sells Hummer Truck BrandChina has taken its first major step into the U.S. car market as General Motors announced it had finalized a deal to sell off its Hummer truck brand to Chinese auto manufacturer Sichuan Tengzhong Heavy Industrial Machinery.

Under the deal, GM will continue to make the trucks no later than 2010. While a deal has been reached, it is still going to be up to Chinese regulators to approve the deal and decide if the brand can be profitable and fit into the country's overall national strategy to improve energy efficiency.

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General Motors finalizes Hummer deal originally appeared on BloggingStocks on Sat, 10 Oct 2009 09:40:00 EST. Please see our terms for use of feeds.

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Ford sales fall in September

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It should not come as too big of a surprise, but American auto maker Ford Motor (NYSE: F) announced today that its sales fell by 5.1% in September.

Following this summer's widely popular "cash for clunkers" program, it was some what expected that demand would weaken during September as so many people had just recently purchased new cars to take advantage of the government program.

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Ford sales fall in September originally appeared on BloggingStocks on Thu, 01 Oct 2009 16:20:00 EST. Please see our terms for use of feeds.

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General Motors to boost output

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General Motors Cash for ClunkersThe government's "cash for clunkers" has been far more popular than anyone thought, prompting General Motors to boost production at several factories to keep up with demand.

While not everyone is so convinced that the "cash for clunkers" program is good for the economy, there is no doubt that the big American car makers are enjoying the benefits. Five days ago I wrote about the decision by Ford Motor Company (NYSE: F) to boost production by 15% above its prior estimates, and today General Motors announced it will raising output and bringing back employees that it had been forced to lay off.

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General Motors to boost output originally appeared on BloggingStocks on Tue, 18 Aug 2009 17:10:00 EST. Please see our terms for use of feeds.

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