The dominant theme this week will of course be the U.S. subprime mess and any new details of how deep (re. financial institutions) and far (re. consumers and spending: autos, electronics, apparel, etc) its impact will be felt. Citigroup chief Charles Prince has now resigned. Merrill Lynch’s chief Stan O’neal is also gone.
On Friday, Nikkei 225 futures trading in Chicago lost 30 points (-0.2%) to 16,510, having traded as low as 16,340 intra-day. By comparison, N225 futures in Osaka ended at 16,490 and at 16,465 in Singapore.
As of Friday’s close the Nikkei 225 was trading around 17.8x forward earnings and 18.7x trailing earnings, at a book value of just under 1.9. Yields are edging higher than earlier in the year, at about 1.2% on a forward basis and 1.1% on a trailing basis.
Toyota’s earnings are due Wednesday. September machinery orders are out Thursday and the November index options settle Friday.
1 response so far ↓
1 admin // Nov 5, 2007 at 8:04 am
Don’t forget the conundrum of $90+ crude in light of inflation levels and the latest monetary policy rate decisions by the Fed and BoJ. That said, the yen seems poised to strengthen, helping offset some of the rising materials imports, but on the other hand, having a negative impact on exports (at least on paper).
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