Posts Tagged ‘China sales’

GM sees higher 2019 profits on job cuts, solid US, China sales

January 11, 2019

General Motors projected strong 2019 profits Friday, fueled by savings from a deep restructuring including job cuts, and by solid sales in the United States and China.

GM, which has faced criticism from President Donald Trump and other US politicians over the planned layoffs, expects $2-2.5 billion in additional profits this year due to the restructuring, pushing its earnings-per-share forecast well above analyst expectations.

The biggest US automaker forecast 2019 profits of between $6.50 and $7.00 a share, compared to the $5.88 now expected by Wall Street analysts. GM also said it expects 2018 earnings per share to exceed analyst expectations.

GM chief Mary Barra has come under fire for the company's planned layoffs, but now says the restructuring will boost profits this year

GM chief Mary Barra has come under fire for the company’s planned layoffs, but now says the restructuring will boost profits this year GETTY/AFP

“We are focused on strengthening our cash generation and creating efficiencies that will position us to take advantage of opportunities through the cycle,” said Chief Financial Officer Dhivya Suryadevara said in a statement.

Global markets have been shaken in recent weeks amid worries over slowing global growth due in part to weakness in China amid the trade confrontation with Washington, and some forecasts indicating the US will tip into recession in 2020.

But GM offered a solid outlook for the US the China, estimating overall US sales in 2019 in the “low 17-million range,” a good level, and projecting no sales drop in China.

GM Chief Executive Mary Barra was upbeat on the prospects for a US-China trade deal, characterizing this week’s talks between US and Chinese officials as “constructive.”

According to news reports the next round of talks is set for late January in Washington.

Barra told reporters it was a “good sign” that the two governments already had plans for additional negotiations, adding that sales in China also could be boosted by government stimulus spending.



Asia markets stage slight recovery but tech firms soured by Apple

January 3, 2019

Most Asian markets rose Thursday after the previous day’s sharp losses but technology firms fell after Apple slashed its revenue forecasts blaming slowing China sales.

The yen pared early sharp gains from a flash crash, which saw the dollar briefly plunge to its lowest level since March after the Apple announcement, while the Australian dollar hit a 10-year low against the greenback.

Image result for apple, china, pictures

Investors trod cautiously as bargain-buyers capitalised on Wednesday’s hammering across Asia, while sentiment remains weak owing to uncertainty over a number of issues including China-US trade, China’s economic woes, the US government shutdown and Brexit.

Wall Street and European markets mostly recovered from early losses to end slightly higher but Apple’s announcement that it expected to earn less than expected in the key December quarter send shudders through markets.

The firm, which was already under pressure over signs that sales of its new iPhone were coming up short, blamed sluggish demand in China for the cut and citing the US trade war as a factor.

“While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China,” chief executive Tim Cook told investors.

He told CNBC the tariffs row had “put additional pressure” on an already slowing Chinese economy, resulting in lower store and online traffic. The firm’s shares — already down about a third from their record high in March — dived seven percent in after-hours trading.

Asian tech firms took a hit from the news, with Hong Kong-listed Sunny Optical and AAC Technologies both down more than two percent, while Apple supplier TSMC shed almost one percent.

– Flash crash –

But on broader markets Hong Kong gained 0.4 percent after tanking almost three percent Wednesday, while Shanghai added 0.7 percent following a more than one percent drop after more weak Chinese economic data.

Sydney led gains, rallying more than one percent, while Seoul, Manila and Jakarta were also higher.

Singapore, Wellington and Taipei were in negative territory, while Tokyo was closed for a holiday.

Despite the much-needed gains, Banny Lam, head of research at CEB International Investment Corp, warned of continued unease.

“There are a lot of uncertainties lying ahead,” Lam told Bloomberg News. “The markets will likely be stuck in a downtrend over the next few weeks.”

The news from Apple sparked a sell-off in the currency market with the yen, a safe haven in times of turmoil, soaring around 3.7 percent to 104.87 against the dollar before the greenback recovered to around 107.50 later in the morning.

The Japanese unit also briefly soared about 3.5 percent against the Australian dollar, which is seen as a bellwether for China, and more than four percent on the euro.

“The Apple news is driving safe haven flows, which have seemingly triggered a flash crash in forex,” Brad Bechtel, global head of foreign exchange at Jefferies LLC, said.

Analysts suggested that a rush to the safety of the yen saw it rise, which then caused programmes to kick in that were set up by yen short traders to prevent them losing cash.

The flash crash also saw the greenback surge around four percent against the Australian dollar to its highest level since 2009. The Aussie has been battered by slowing growth in China, a key export destination for the country’s commodities sector.

“Aluminium and copper were both off by more than two percent,” said analysts at NAB Markets Research.

– Key figures around 0230 GMT –

Hong Kong – Hang Seng: UP 0.4 percent at 25,226.12

Shanghai – Composite: UP 0.7 percent at 2482.32

Tokyo – Nikkei 225: Closed for public holiday

Dollar/yen: DOWN at 107.69 yen from 109.10 yen at 2130

Euro/dollar: UP at $1.1347 from $1.1346

Pound/dollar: DOWN at $1.25.53 from $1.2611

Oil – West Texas Intermediate: DOWN $1.11 at $45.43 per barrel

Oil – Brent Crude: DOWN 81 cents at $54.10 per barrel

New York – Dow: UP 0.1 percent at 23,346.24 (close)

London – FTSE 100: UP 0.1 percent at 6,734.23 (close)