Toyota back on top as global auto sales champ

2:00 PM champ, Global, sales, Toyota No Comments

Paul A. Eisenstein , The Detroit Bureau – 3 days

Toyota has officially reclaimed its global sales crown, the maker confirming it produced 9.75 million vehicles in 2012.

That was slightly ahead of a preliminary tally Toyota forecast as the year came to a close and locks it in first place ahead of General Motors, which sold 9.29 million vehicles. Volkswagen, at 9.1 million, came in third for 2012.

Toyota’s sales were slightly lower than the company had projected earlier in the year, the shortfall reflecting the ongoing dispute between Japan and China over a chain of small, uninhabited islands both nations claim.

In customary fashion, Toyota officials downplayed the sales results. “Rather than going after numbers, we hope to make fine products, one by one, to keep out customers satisfied. The numbers are just a result of our policy. And our policy will continue unchanged,” Toyota spokeswoman Shino Yamada told the Associated Press.

Nonetheless, it marked a significant comeback for the Japanese giant which first captured the global sales crown in 2008, displacing GM after seven decades as the sales leader. The U.S. maker plunged into bankruptcy the following year, recovering only with the assistance of a massive government loan.

With production back to normal, Toyota saw its sales in the home Japanese market surge 35% in 2012 while overseas sales jumped 23%. Adding additional models to the “family,” the Prius line firmed up its position as the world’s best-selling hybrid nameplate.Toyota briefly fell to third in the global chase in 2011, the maker suffering significant production cuts in the wake of Japan’s March earthquake and tsunami. It didn’t fully restore its worldwide production network to normal operations until the end of the year.

But not everything went as well as expected – notably in China where Toyota was just one of many Japanese businesses to suffer as the dispute over the Senkuko Islands – which the Chinese call the Daioyu – flared up. A Toyota dealership was torched and mobs destroyed many of the maker’s products. Sales fell by roughly half in the early weeks of the dispute though they have begun to recover more recently.

Toyota did have some other issues, notably a surge of safety-related problems including additional recalls related to the maker’s unintended acceleration issue. In all, Toyota recalled more vehicles than any other maker in the American market in 2012, and it ended the year by agreeing to an estimated $1.2 billion settlement related to the unintended acceleration issue. Even so, most analysts say the maker’s reputation escaped with relatively little damage.

Toyota is forecasting another increase in sales for 2013, hoping to reach a record 9.91 million. That is still short of an earlier projection of at least 10 million, however.

General Motors officials have not yet set out their own forecast and that could depend on the strength of the ongoing U.S. recovery. Earlier this month, Chairman and CEO Dan Akerson said the maker expected sales in the States to reach somewhere between 15.0 million and 15.5 million for 2013.

The wild card is Volkswagen, the aggressive German maker laying out plans to snatch the sales ground by the time it wraps up its current, 10-year growth plan in 2016. The weakness of the home European market could delay that strategy, though VW hopes to offset that by stressing China, Latin America and the recovering U.S. market where it was one of the fastest-growing brands in 2012.

Copyright 2013 The Detroit Bureau

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Geithner: European crisis threatens global economy

8:12 PM crisis, economy, European, Geithner, Global, threatens No Comments

HONOLULU — Treasury Secretary Timothy Geithner has demanded rapid action by Europe to restore financial stability, warning that the region's economic crisis is "the central challenge to global growth."

"We are all directly affected by the crisis in Europe," Geithner said after a meeting of finance ministers of the 21-member Asia-Pacific Economic Cooperation forum late on Thursday. "It is crucial that Europe move quickly to put in place a strong plan to restore financial stability. They're moving ahead, but we just need them to move ahead more quickly and with more force behind it."

Asia-Pacific finance chiefs agreed to do whatever it takes to prevent the malaise from Europe's debt crisis spreading as a possible European recession threatens the global economy.

Wall Street rallies amid progress in Europe

President Barack Obama spoke with German Chancellor Angela Merkel and French President Nicolas Sarkozy late on Thursday and also called Italian President Giorgio Napolitano.

Turmoil
Italy's upper parliament voted on Friday to pass a package of spending cuts, after being pushed to the brink by bond markets. In Athens, a new interim government was sworn in as Greece attempted to calm the political turmoil that has threatened to bankrupt it and force it out of the euro zone.

European shares edged higher on Friday on hopes that Italy would make political progress that will enable it to quickly cut a debt mountain, easing investors' worst fears about the euro zone debt crisis.

The European Union warned on Thursday that the 17 countries using the euro common currency could slip back into recession next year as the debt crisis that has already engulfed Ireland, Portugal and Greece has shown alarming signs of spinning out of control.

The spillover from the European crisis is adding to the pressure in the Asia-Pacific — now the strongest driver of world growth — for more effective trade regimes to help spur job creation and for reforms to ensure financial resiliency.

Geithner said the Asia-Pacific's economies were "in a better position than most to take steps to strengthen growth in the face of these pressures."

A European recession would be felt sharply in the U.S., where growth is already anemic, and in Asia, which relies on Europe as a big market for its cars, clothing, consumer electronics and other exports.

In Rome, months of dithering and delay ended when the Italian upper house voted to pass an austerity package Friday. The law should in the lower house on Saturday, triggering the resignation of prime minister Silvio Berlusconi, who pledged to quit once has promised to resign after the financial stability law was endorsed by both houses of parliament.

Goodbye 'bunga bunga', hello prison for Berlusconi?

Mario Monti, a former European Commissioner who has emerged as favorite to replace Silvio Berlusconi as prime minister.

If the second vote passes smoothly as expected, Napolitano may accept Berlusconi's resignation as early as Saturday night and formally mandate Monti to try to form a new government soon afterwards.

If Rome burns, US will feel the heat

At first, Berlusconi had insisted that early elections were the only option. But he has since softened his stand and is said by sources to be open to a new government.

Greece's new interim Cabinet was sworn in Friday, with former European Central Bank Vice President Lucas Papademos at its helm as prime minister and the key position of finance minister unchanged.

The new government of Papademos, who also spent time as Greece's central bank governor, must now implement the terms of Greece's latest debt deal — a €130 billion ($177 billion) agreement reached by the European Union on Oct. 27. It includes provisions for private bondholders to forgive 50 percent — or some €100 billion — of their Greek debt holdings.

Leave Germany? Live in Germany? It's all Greek to them

With European leaders struggling to agree on how to tackle the deepening crisis, pressure has mounted on the European Central Bank to act more forcefully.

The president of the European Commission warned that the collapse of the eurozone would cause a crash that would instantly wipe out half of the value of Europe’s economy, plunging the continent into a depression as deep as the 1930s slump, according to a report in Britain's Daily Telegraph.

Jose Manuel Barroso said that if the euro area broke apart, the estimated initial cost would be up to 50 per cent of European gross domestic product. "It would jeopardize the future prosperity of the next generation. That is the threat that hangs over us," he said.

The Associated Press, Reuters and msnbc.com staff contributed to this report

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Europe's woes raise global recession risk

6:14 PM Europes, Global, raise, recession No Comments

AppId is over the quota AppId is over the quota By John W. Schoen, Senior Producer

As the European financial crisis threatens to drag the global economy back into recession, leaders from Washington to Beijing are calling for Eurozone leaders to intensify their efforts to contain the spreading contagion.

Treasury Secretary Timothy Geithner on Wednesday sought to calm growing fears that European debt defaults could spark a repeat of the Panic of 2008. But he called on Europe's leaders to move more quickly to resolve Europe's escalating debt crisis. 

"They recognize that they have been behind the curve. They recognize that it will take more force behind their commitments," Geithner told CNBC television.

Those remarks were echoed by leaders of the developing world, who fear that the deepening crisis threatens to stifle one of the world's largest markets for imported goods.

Chinese Premier Wen Jiabao said Wednesday that Beijing is willing to help its biggest trading partner, but added that European leaders must act on their own stop the crisis from growing.

"What we have to take note of now is to prevent the sovereign debt crises from spreading and expanding further," Wen said.

American businesses and consumers are already seeing the impact of Europe's failure to deal with its debt woes. Economic growth in Europe has slowed to a standstill, cutting into demand for American products by its largest single trading partner. The threat of a global recession brought on by European debt defaults has given American businesses one more reason not to hire more workers.

Once thought to be limited to the weaker economies on the continent, larger European economies like Italy and France are being dragged down by the lack of consensus among 17 eurozone governments. That political failure has intensified worries about the prospect of a financial solution.

"I think we're all staggered by the lack of concerted continuity between leaders in western Europe to deal with the problem," said Martin Sorrell, CEO of WPP, one of the world's largest advertising agencies.

After more than a year and a half of failed efforts, Greece is on the brink of defaulting on its debt. With its economy contracting, it has been unwilling or unable to cut spending fast enough to win support for a bailout from stronger countries like France and Germany. Leaders of those two countries were expected Wednesday to press Greek Prime Minister George Papandreou once more to enforce the harsh austerity measures.

There is fresh evidence that the debt crisis is spreading. On Tuesday, Moody's cut the credit ratings of two large French banks, Societe Generale and Credit Agricole, that hold large portfolios of Greek debt. A default by Greece would put a major strain on the banks’ ability to raise capital.

Italy, Europe's third-largest economy, is already having trouble selling bonds as investors see rising risk that it may eventually default on its 1.9 trillion euros in debt. On Tuesday, the Italian government had to pay those investors 5.6 percent interest to auction off its latest offering of 10-year bonds. The last time those rates hit 6 percent, European Central Bankers stepped in to buy Italian bonds to avert a wider panic

As investors grow increasingly skittish about Greece, they've begun pulling back from buying bonds issued by other European countries. Governments outside the continent are also weighing whether to expand their bond purchases to help avert a global crisis -- or step back until European leaders agree on a more credible solution to the crisis.

With foreign currency reserves of more than $3 trillion, China could play an important role as a buyer of last resort for debt issued by European countries such as Greece and Italy, whose bonds are being shunned by investors.

The Financial Times reported Monday that Italy had asked Beijing to buy "substantial quantities" of its debt. But an Italian ministerial source told Reuters that his government is discussing a Chinese investment in its industrial sector, not government bonds.

Brazilian president Dilma Rousseff said on Wednesday that her country is also ready to join any international effort to help stem the spread of Europe's financial crisis. Russia, another of the so-called BRIC developing countries, wants to see a clear strategy from Europe's leaders before it commits to buying more European bonds, President Dmitry Medvedev's chief economic adviser told Reuters Wednesday.

"We would like to know what actions will the European Union take itself, what scenario will they opt for: a default on Greek debt or no default? Whom will they help: banks or governments?" said Arkady Dvorkovich.

Russia, which is the world's third-largest holder of gold and foreign exchange reserves, already holds a sizeable portion of European debt. That could limit additional purchases.

The BRICS -- Brazil, Russia, India, China and South Africa -- are expected to discuss possible solutions to the Eurozone crisis next Thursday at meetings at the World Bank and International Monetary Fund in Washington. But for now, said one Greek official, they have not stepped up their Greek bond buying.

"We have invited all the (BRIC) countries to take an active part in covering the country's borrowing needs," said Greek Deputy Finance Minister Filippos Sachinidis. "Despite the invitation, we have found there was little or no participation at all."

Discussing whether there is a light at the end of the tunnel for Europe, with Louise Cooper, B.G.C. Partners market analyst and Keith McCullough, Hedgeye Risk CEO.

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Europe leads global markets back from the edge

1:41 AM Europe, Global, leads, markets No Comments

Tuesday after many official bear market bottom enter LONDON - speculation that the Fed may announce another round of Monetary Union helped facilitate stock markets recover.

A statement by the Fed is expected at 14: 15, Eastern, and hopes that it will be forced more deeds after solid gains helped the most stocks in Europe and Wall Street.

Investors worried still credit, remained however about the consequences of the United States downgrade, Europe's debt crisis and mounting expectations of a global recession. This is evident in the continued strength of traditional safer port assets, like gold and the Swiss francs, which was to take regular record highs recently.

"While we always still are not convinced, that the Fed is ready to announce important new monetary policy measures, changes in the statement, which should support of financial markets," said Vassili Serebriakov, analyst at Wells Fargo Bank.

In Europe, the FTSE 100 index of leading British shares closed up 0.3 percent to 5.085 while the French CAC-40 3.153 rose 0.8 per cent. Germany is 0.3 per cent DAX but continues to his colleagues, trade lower 5.899 exceed.

The speech-fed helped Wall Street to restore dizzying losses of the previous session - the Dow Jones industrial average was 1.9 percent to 11.022 while the broader standard & poor's 500 index rose by 2.3 percent to 1,145.

An option for the Fed is known, that it is considering an other monetary stimulus, which would be their third in the last three years. Kenneth Rogoff, a Harvard University economist, says that the only hope, the United States, to avoid a Japan-style low growth and benign prices lost decade might help.

Louise Cooper, a market analyst, BGC partners, said, a further incentive "significantly" might stock markets up although it "may not quite the same impact packaging."

Stocks around the world were after August 2010, supported, if the Fed is a currency relief, which ended up $600 billion announced in June. This relaxation ended, said "chaos followed has", Cooper.

The recovery of stocks is come, after many markets registered market area, bear them over 20 percent since their peak decreased as relatively safe assets their cash, such as gold and the Swiss franc parking investors sought.

The other great concern in the market remains Europe's debt crisis, and here again, there are signs that the recent tensions can be facilitated, if because of intervention by the European Central Bank.

The European Central Bank appeared Monday and bought billion value their bonds. Movement contributed to the returns of Spanish and Italian ten-year bonds by a percentage this week to more than 5 percent lower - a rate as now manageable. The euro was also quite lively, rising 0.3 percent to $1.4221.

Wieder.Herstellen of shares helped oil the oil markets, prices to recover. The main policy rate was up 30 cents to $81.61 per barrel. Previously, it had fallen to $75.71, the lowest level since September 2010.

Stock exchanges in the Middle East traditionally oil dependent were also volatile with the benchmark index in OPEC powerhouse Saudi Arabia, the largest economy of the region, close from 0.8% to 6.009 points. It was more than 4 percent. Egypt led the region declines, with the EGX30 index plunge 4.7 percent to 4.478 points to close. The Exchange was to temporarily trade late in the morning after broader indicators more than 5 percent declined.

In Asia, Hong Kong Hang Seng the decreases of tumbling 5.7 percent in 19,330.70. other markets fell to, including the Japanese Nikkei 225 average, which earlier acted 1.7 percent lower to 8,944.48, has 4 percent down to an end. China's main market in Shanghai have fared moderately better close less than a point only on 2,645.70.

© 2011 The associated press. All rights reserved. This material cannot be published, sent, rewritten or redistributed.

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Global consumer confidence lowest since 2009

3:29 AM confidence, consumer, Global, lowest, since No Comments

LONDON - global consumer confidence fell in the second quarter to their lowest level in a year and a half as an uncertain economic Outlook, a deepening of the eurozone debt crisis and rising inflation made people more cautious, a survey showed Sunday.

Consumer sentiment in the United States company's quarterly survey of global consumers weaker than in the second half of 2009, was at the height of the global recession, according to the Nielsen.

Globally, consumers plan to in the coming months the belt of close buckles for everything from has invest, purchase clothing, with holiday and upgrade technology, after something less careful in the past 12 months, the survey showed.

Thirty-one percent of U.S. consumers said they have no free cash for spending, along with 25 percent of consumers in the Middle East and in Africa and 22% of Europeans.

In China, due to rising inflation and in the Middle East, where an initial bounce in consumer way to caution as political Outlook was unclear morale after social riots in the first quarter and rising prices trust dipped was reduced purchasing power. Egypt and Saudi Arabia posted the largest cases compared with the first quarter in the Nielsen rankings of trust in 56 countries worldwide.

Trust was swallowed up at the lowest in countries of the euro-zone by a deepening debt crisis with Greece end of the global ranking. Portugal, Ireland, Spain and Italy were also in the bottom 10, although during confidence versus the first quarter in Spain and Italy, it fell slightly in Portugal and Ireland increased.

Even the most optimistic were Indian consumer global but less than in the first quarter. Consumers in Asia remained in General significantly more optimistic than in other regions-with the exception of the Japanese and South Koreans, who under the most pessimistic tailor - but rising inflation were tempered Asian purchasing power.

India's result in the Nielsen global consumer confidence index fell 5 points from the previous quarter to 126. It was index in the second half of the year far below the country's record 137 2006 that six-year history read highest reading for any country in the index.

The index global average reading dipped 3 points versus the first quarter to 89, its lowest level since the fourth quarter of 2009.

A score under 100 signals pessimism about the prospects.

"Production slows performance weak economic indicators, and inflation in Asia, a severe debt crisis in Europe and continuing political instability in the Middle East, in combination with rising household have issues in the United States its toll on fragile confidence of consumers," said Venkatesh Bala, Chief Economist at the Cambridge Group, a unit of Nielsen.

"Hopes for full global recovery in the next 12 months weakened significantly in the second quarter, as the majority of consumers around the world in a recessionary mindset remained."

Todd Hale, senior Vice President at Nielsen in the United States, said that U.S. consumers through a series of negative factors was been put out of action.

"Check out with rapidly rising gas prices, inflationary pressures, suffer continued in the housing market with foreclosures and the decline in property values, disturbing weather patterns creating floods and tornado damage and stagnant labour market, the US consumer confidence fell in the second quarter," said Hale.

Jump in confidence saw Britain and France, on the other hand in the second quarter but remained the morale in both countries under the European average.

The survey was taken between May 20 and June 7, over 31,000 consumers in 56 countries. The survey is based on consumer confidence in the labour market, status of their personal finances and willingness to spend.

Copyright 2011 Thomson Reuters.

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Economists annoy global effects of Japan quake

1:01 PM annoy, Economists, effects, Global, Japan, quake No Comments

The global economic impact of earthquakes and nuclear crisis of Japan can go also predict modest GDP on the most relevant number crunchers.

Macroeconomists have largely concluded that Japan is no more than a few tenths percent shave off world economic growth, although it is the world's third largest economy and is expected to slip in a short recession.

Hung Tran, Deputy Managing Director of the Institute of international finance, said the impact of direct GDP from Japan is most likely "small" and reversible "be, but the indirect effects of potentially large and long-lasting."

The IIF market monitoring group, the Bank Manager, and former politician, warned last week that Japan investors in a higher "uncertainty premium," factor, until the price of oil and other assets would drive can cause.

Distribution ? can fears of unrest in the Middle East and oil - increases already about violence in Libya get a long-term boost as Japan prompts experience a global re-think of nuclear power.

"We wanted to have a nuclear renaissance," said URI Dadush, an economist at the Carnegie Endowment for international peace, and former Director of international trade for the World Bank.

"If this stops the nuclear renaissance, then there is an increase in the demand for alternatives." Oil one of them, ", added Dadush."

The IIF said would have a sustained increase of energy prices of "serious consequences for global growth and inflation", the IIF said.

Higher inflation connections emerging market difficulties in with pressure on prices and could be advanced economy to consider central bankers, tightening of monetary policy ahead of schedule to the IIF said.

Even before the earthquake was inflation complicate monetary policy. Minutes of the Bank of England's latest policy setting meeting, in due course on Wednesday, are expected to three of nine members of the Committee voted for a rate hike show.

British inflation data, due on Tuesday, will probably show a big jump in the consumer index linked, although these are figures for February, far before the earthquake.

Look economic even backward-looking than usual in fact, that disaster has 11 March Japan this month batch of data. For example U.S. durable goods orders for February can strongly in Thursday's report look, but that says nothing about what happened in March, when some manufacturers could get not enough parts from Japan.

Another Japan factor that can show hit not as direct GDP is the currency volatility. The Group of seven advanced economies appeared on Friday to try, the yen rise, Cap mark their first intervention in more than a decade.

On the surface, this may as an aggressive response to a problem, not to do that, more than dent GDP is expected. Eswar Prasad, an economist Brookings institution that teaches international trade policy at Cornell University said the concern was that extreme currency moves to restrict trade itself.

Global shippers have received also a bit nervous hedge their currency against wild swings, and private trade credit problems providers, he said.

The yen intervention was that the G7 leaders trying to buy "a level of insurance", and they can buy it now relatively cheap, Prasad said.

Dadush, Carnegie Economist, said the G7 was move a quick and effective way to cool speculation in the financial markets.

"As in tennis, a high game of proportion of is it," he said.

Copyright 2011 Thomson Reuters.

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Quake shows weak link in global supply chains

3:35 PM chains, Global, quake, shows, supply No Comments

The disaster in Japan has a problem with such multinational companies as business suspended: the system they use to roles to keep deliveries is slim and low-cost - still vulnerable to sudden shocks.

Factories, ports, roads, railways and airports in Northern Japan have been shut down or damaged due to one he affected the nuclear power plant in the region. So, auto and technology companies are cut off from suppliers in the disaster zone. Some had to stop or slow production.

"When you're running incredibly slim and you're going global, very prone to errors, become Wheatstone", says Stanley Fawcett, Professor of global supply chain management at Brigham Young University.

The risks are higher, because so many companies keep inventory them low, to save money. You can maintain without new supplies not production for long.

Subaru of America has suspended overtime in the only North American in Lafayette, Indiana Toyota Motor Corp. canceled production overtime and Saturday in their 10 North American plants. The two companies try to save their existing supplies.

The auto plants damaged by the earthquake one was located in Miyagi, providing parts for hybrid batteries in Toyota Prius, Camry and Lexus hybrids. It is unclear if a joint venture between Toyota and Panasonic, start the plant running again.

Story: plant shutdowns expand Japanese automakers

Even companies whose Japanese Lieferanten have escape damage encrypted to ensure, supply lines remain intact. Ford, based on a Japanese plant for hybrid batteries for the merger, the flight and the MKZ hybrid vehicles. This work was damaged in the earthquake. But Ford is transportation in Japan no chance because of the troubles. It is on the lookout for alternative supplies and seeking parts in centrifugal casting process when shipping is finished.

"The whole thing overnight could change", says spokesman Todd Nissen.

Story: Japan crisis could squeeze car world production

Car manufacturers all over the world tried to copy the Japanese car manufacturing system, the so slim and cost-efficient is considered. It is built to close links between Ministry of war car manufacturers and suppliers. But if a kink in this system, known developed line to an entire Assembly as the supply chain shut down within hours.

Toyota says that his 20,000 to 30,000 vehicles contain parts. Most come from about 600 suppliers. And the chain not everything. The 600 suppliers even rely on hundreds of other companies to provide raw materials and components.

Use vehicles for many interchangeable parts - of tubes and pipes, screws and nuts. But thousands of other parts are specifically designed for certain vehicles. Steering wheels, seats and even rear-view mirrors to distinguish from vehicle to vehicle.

"A car if you can create only 98 percent of the parts are," says Fred Hubacker, executive Director of restructuring company Conway MacKenzie in Detroit car. "Many of these parts are high-tech products that are not easily replicated."

The disaster threatens the delivery of Japanese of manufactured chips for consumer electronics, from washing machines to television sets to iPads. Factory shutdown and crippled shipping routes pose a security risk for companies that rely on chips for storing data. Japanese semiconductor Giants Toshiba Corp. and Renesas Electronics Corp. have temporarily closed facilities because of the quake.

The electronics companies, which depend on chips from Japan try that assess depth of supply disruptions. Chip prices have already jumped on fear of shortages. The price for a type of memory chip NAND Flash, often in portable electronic devices, used has called more than 10 percent increased since the disaster, analysts say.

For consumer electronics, supply chains are complex. Some phones have dozens of chips. Apple Inc. iPad requires parts from all over the world. The inside of the device show are how much coordination Apple must have enough parts with suppliers all over the world to ensure.

The Wi-Fi version the iPad uses a Toshiba chip data store, analysis of iFixit.com. The chips, the control communications of Broadcom Corp., in Irvine, California comes memory comes from Samsung Electronics Co., Korea. Texas Instruments Inc., power used for the touch screen a chip in Dallas. The processor is designed by Apple, based in Cupertino, California,

These are only the most important semiconductor guts of the machine. A variety of other chips that do other companies, other things in the iPad: activate the compass, for example, and detect if light the screen hits. All other iPad parts, from the glass touchscreen on the screws and cameras, come from a variety of suppliers.

Toshiba one of the companies was forced, after the quake factories closed. So, it is possible to delay that could disturb the delivery of chips for Apple and iPad shipments.

Apple declined comment. Toshiba representative back not immediately one message from the associated press on Wednesday.

HP new CEO, Leo Apotheker, the AP said that his company's infrastructure in Japan is "more or less intact", but that it takes longer to find out the extent of the damage in its supplier network.

Market research firm IHS iSuppli estimates that Japan is to make world's largest supplier of Silicon of semiconductor chips. Its deliveries around the world form about 60 percent.

Japan is also one of the main suppliers of "wafers", are the building blocks of computer chips.

Barclays Capital wrote in a note to investors, that a lack of large wafer consumers such as Intel, the world's largest semiconductor company and Texas instruments could squeeze analysts.

Multinational companies have built in the last two decades and closely managed supply chains that span the world. These chains associate low-wage factories in countries such as China with offices in Europe, Japan, and the United States. BYU Fawcett says, is highlighted, is "lean and global."

Companies have kept to an absolute minimum cost-cutting supplies. As many have to leave what quickly has "just in-time" deliveries with sales management according to.

But the efficiency conducted a risk: the lean, far-flung supply chains left multinational companies vulnerable to shocks provide. And the shocks come, one after the other.

The 2001 terrorist attacks in New York and Washington froze global transport. The 2003 SARS outbreak production in South China down. In Iceland stopped air traffic in Europe the eruption of the volcano in the last year. And now a Japan disaster unfolds.

Fawcett says that companies begin to completely rethink the wisdom of supply chains that will have to cross oceans. In the middle of the 2000s, he says, some US companies started factories from China after Mexico. There, they could use still cheap labor without fighting with ocean crossings.

He says he suspects the trend - called "in the close sourcing" - more will become after the disaster in Japan popular.

Copyright 2011, the associated press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.

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Global exchange consolidation race heats up

5:49 AM consolidation, exchange, Global, heats No Comments

LONDON/HONG KONG - Deutsche Borse and NYSE Euronext competitors around the world create of plan, the world's largest stock and Futures Exchange has to search for partners, accelerated an industry shake up scurrying sent.

Traditional stock exchanges are under intense pressures from upstart electronic rivals like bats Europe and Chi-X Europe direct edge world's largest investment banks established the major bourses' to loosen grip on stock trading.

"Smaller players have really changed the face of this major players around the world, and so you are forced to merge," said William Karsh, former chief operating officer at direct edge, one of the two privately-run U.S. electronic trading operators, the NYSE and NASDAQ OMX have challenged.

Chrysler Motor City buzz create Sunday's Super Bowl game saw a powerful ad air for the U.S. automaker a company that had written many dead. Watch, rate the ads of Super Bowl XLV the worst celebrity of Super Bowl ad ConsumerMan moments: video late fees 'fraud' spreads

With key elements of the NYSE deal with Deutsche Borse to decide to make a marketplace with more than 20 trillion dollar annual trading volume could plan on the same rock founder past attempts of the merger between the German exchange and Euronext to prevent.

".. ."A long and tedious process, the complexity will be it the two legal systems and the need for multiple steps of the product authorisation", said a source of close to the deal.

Once notified, European Commission competition authorities have 25 days to decide the case.

"Given the fact that the merger creating the largest stock exchange in the world, there are many regulatory, corporate and competition issues are resolved," said Susanne Ruckert, partner and specialist for capital markets to German law firm FPS.

"A perfect test is whether the national authorities to make concessions for the further globalization of financial markets are prepared."

Hong Kong exchanges and clearing AG was quickly open the door for deals with another players following Thursday news, Deutsche Borse and NYSE lectures were advanced.

HKEx the world's largest exchange operator by market value, said it would keep international alliances or partnerships that were consistent with its focus on China.

Wednesday news of a bid by London Stock Exchange for Canada TMX, a wave of international mergers last seen revived in 2006 and 2007, followed by the Deutsche Borse talks with NYSE, and shifted the process of Exchange consolidation through multiple gears.

"Regional trade to serve gateways international institutional investors and the drivers are the race to create accelerated.", said Axel Pierron, analyst at Celent.

The proposed mergers a rally in shares of listed stock markets fueled worldwide. Australia ASX trying to overcome domestic opposition to a 7.9 billion takeover offer by the Singapore Exchange rose by 4.7 percent.

Aggressive, have eaten upstart markets deep in market shares of this traditional exchanges, forces to invest the big Board, LSE and other trading technology and higher-margin areas looking to grow.

Said before a financial authority to regional Hesse, must approve any merger agreement with Deutsche Borse, Frankfurt it would seek to safeguard the interests of the financial centre.

"The biggest risk of failure for the offer is antitrust concerns in the derivatives market at this time because Liffe and Eurex had a market share of more than 90 percent in Europe." "We hold these concerns as an exaggeration", said Stefan Brugger, Fund Manager at Union investment in Frankfurt.

Its headquarters in Frankfurt, will get with near the combined group derivatives unit during New York stock trading, two sources deal told of Reuters.

Faces to strengthen large political and regulatory hurdles in Australia, but while many investors the latest offerings appeared tie-up the case for the said other SGX's bid for ASX, LSE could now be seen as alternative partners.

"LSE makes clear a game on the mining resources side of things and Asia is generally very resource hungry, said Niki Beattie, consulting market structure partner."

Story: Deutsche bid stock exchange take over New York

Alternately in London and the Australian stock exchanges have traditionally attracted a significant number of companies list of resources including heavyweights such as BHP Billiton.

The LSE's planned purchase of the Toronto stock market operator, the it the world's fourth largest and a top Center for growth industries mining and energy would make.

Other markets in Asia were reluctant to seek Tie-Ups due to the narrow ownership and political obstacles.

HKEx shares fell to most in about three months provide more competition. The Hong Kong Exchange has so far not displacement due to the avoided its grip on China-backed IPOs.

While the number of stock trading platforms is set to further shrink concentration in markets such as oil, gas, metals and other commodities somehow off with countries could provide keen control to security of supply to keep.

"Consolidation is less likely to see raw materials and energy, as Governments as being important strategic," said Frances Hudson, global strategist at standard life.

Copyright 2011 Thomson Reuters. Click for restrictions.

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