Express News | Honda and Nissan are reportedly set to initiate merger discussions, while Mitsubishi Autos might decide next year whether to participate.
The decline, awareness of the slowdown in the pace of Fed rate cuts is growing.
Overview of last week, from December 16 to December 20. Nikkei average high: 39,796.22 yen, low: 38,355.52 yen, closing price: 38,701.9 yen, compared to the previous week: -1.95% ↓ decline, with increasing awareness of the slowdown in the pace of interest rate cuts in the USA. Ahead of financial events, there was heavy movement on the upside from the beginning of the week, but after the Federal Open Market Committee (FOMC) meeting, the slowdown in the pace of interest rate cuts in the USA for 2025 became strongly conscious, leading to further widening of the decline. The Bank of Japan's decision to refrain from additional rate hikes provided some support.
A pullback, in a market environment where interest in large Main Board stocks is high.
Overview for last week, from December 16 to December 20: Tokyo Stock Exchange Growth Index high: 643.49, low: 624.65, closing: 624.89, compared to the previous week: -3.09% ↓ declined, amidst a high interest in Large Cap on the Main Board. With attention turning to the central bank meetings of Japan and the U.S., there was also news considered material about discussions on a management integration between NISSAN MOTOR CO <7201> and Honda <7267>, leading to a high interest in Large Cap on the Main Board. After the financial policy events, the focus remains on Large Cap stocks in the Main market.
Honda, Nissan to Considering Producing Vehicles at Each Other's Factories: Report
Former Nissan Chairman Ghosn: Seeking an agreement with Honda is a desperate move, there is little chance of synergy between the two companies.
On December 21, according to Gelonghui, former Nissan Motor Chairman Carlos Ghosn stated in an interview on December 20 that Nissan Motor is seeking an agreement with Honda Motor, indicating that the former is in a "panic mode." "This is a desperate move," Ghosn said, "This is not a pragmatic Trade, because frankly, it is difficult to find synergies between the two companies." Earlier this week, Honda confirmed that the company is considering various options, including merging with Nissan, capital alliances, or establishing a holding company. Ghosn mentioned that Nissan Motor and Honda Motor operate similar brands and products in the same market. He expressed concern about both companies.
Three points to watch in next week's market: Governor Ueda's speech at the Bank of Japan, key opinions in the December Bank of Japan meeting, and the US Consumer Confidence Index.
■ Financial Estimates for the stock market outlook range: Upper limit 39,500 yen - Lower limit 38,000 yen. On the 20th, the US stock market rose. The Dow Inc average closed at 42,840.26 dollars, up 498.02 dollars from the previous day, and the Nasdaq finished trading at 19,572.60, up 199.83 points. The Nikkei 225 Futures in the Osaka Night Session ended trading at 38,880 yen, up 170 yen from the day’s closing price. In the foreign exchange market, the dollar-yen exchange rate fluctuated around 156.40 yen per dollar. The year’s last important meeting of the US and Japanese central banks is approaching.
Honda and Nissan are considering producing Autos at each other's factories.
On December 21, Gelonghui reported that Honda and Nissan are considering producing Autos in each other's factories to deepen their cooperative relationship. Honda is considering supplying hybrid Autos to Nissan as part of a potential merger.
Express News | Honda to Consider Supplying Hybrid Vehicles to Nissan as Part of Potential Merger -Kyodo
Express News | Honda and Nissan to Consider Manufacturing Cars in Each Other's Factories to Deepen Ties -Kyodo
Domestic Stocks market outlook: After the important events in Japan and the United States, the market is expected to be centered around individual investors.
The Nikkei average fell by 768.54 yen (-1.95%) to 38,701.90 yen this week, influenced by a sharp drop in U.S. stocks caused by a "hawkish" rate cut. Amid a strong mood to gauge the results of the Federal Open Market Committee (FOMC) meeting held by the U.S. Federal Reserve on the 17th and 18th, and the monetary policy meeting by the Bank of Japan on the 18th and 19th, Japanese stocks also experienced a slight decline in response to the steep drop in U.S. stocks. The FOMC cut rates by 0.25% as expected.
Emerging Markets outlook: Attention may turn towards lightly traded ultra-low-priced stocks and biotech-related stocks.
■ Emerging Markets outside of the investment radar. This week, Emerging Markets declined. During the same period, while the Nikkei average dropped by -1.95%, the Growth Market Index fell by -2.67% and the Growth Market 250 Index decreased by -3.09%, indicating that Emerging Markets were relatively weak. As attention turns to the central bank meetings in Japan and the US, reports of Nissan <7201> and Honda <7267> beginning discussions on a management integration have led to speculation surrounding Main Board auto stocks and Auto Parts suppliers, leaving Emerging Markets outside of active investment consideration.
Former Nissan CEO Ghosn talks about the merger between his old company and Honda: "A desperate move."
On December 21, Gelonghui reported that Nissan and Honda revealed potential merger news this week, shocking the Global Autos Industry. This Trade has not yet received official confirmation, but former Nissan CEO Carlos Ghosn did not remain silent regarding this potential merger, offering harsh criticism. Ghosn stated, "This is a desperate move, not a pragmatic Trade. To be honest, it's difficult to find synergies between the two companies. There is hardly any complementarity; they operate in the same market, have almost identical products, and their brands are very similar." He further emphasized...
ADR Japanese stock ranking ~ Japan Post and others generally showing a slight buy advantage, Chicago is 175 yen higher than Osaka at 38,885 yen ~
Japanese stocks represented by ADRs (American Depositary Receipts) increased in comparison to the Tokyo Stock Exchange (calculated at 156.15 yen per dollar), including Japan Post Holdings <6178>, Tokyo Electron <8035>, Toyota Industries <6201>, Honda Motor <7267>, Mitsui & Co. <8031>, Disco <6146>, SoftBank Group <9984>, etc. Japan Post Bank <7182>, Seven & I Holdings <3382>, Mitsubishi Corporation <8058>, Nidec Corporation <6594>, Kddi Corporation <9433>, JAPAN TOBACCO INC <2914>, etc.
The NY market rose on the 20th [NY market - close].
[NYDow·NASDAQ·CME (Table)] NYDOW; 42840.26; +498.02 NASDAQ; 19572.60; +199.83 CME225; 38885; +175 (Compared to the Osaka Exchange) [NY Market Data] The NY market on the 20th rose. The Dow average increased by 498.02 points to 42,840.26 dollars, and the Nasdaq closed 199.83 points higher at 19,572.60. Although some technology stocks faced selling pressure first and dropped at the opening,
Former Nissan CEO: Merging with Honda (HMC.US) is a gamble.
The news of Nissan and Honda (HMC.US) negotiating a merger has shocked the Global automobile industry. Former Nissan Director Carlos Ghosn stated that the merger reflects the company is in panic mode. He claimed that merging with Honda is a last-ditch effort and bluntly stated that the merger between the two companies is not a practical Trade, making it hard to find synergies. Carlos Ghosn expressed skepticism about the benefits of a merger between Nissan and Honda, as they operate in the same market with similar brands and products. He believes that the Ministry of Economy, Trade and Industry of Japan is promoting the merger deal with Honda.
Express News | After Honda-Nissan Hammer Out Plan, We'd Like to Examine Whether There Would Be Any Benefit to Our Co, Says Mitsubishi Motors CEO - Nikkei
Express News | Former Nissan Director Ghosn: Seeking an agreement with Honda is a desperate move; the two companies are unlikely to have any synergies.
Global Auto Sales to Reach 89.6M in 2025—S&P Global Mobility
The major defeat of Japanese automotive giants.
The difficulty of transformation.
Market Chatter: Foxconn Reportedly Pauses Nissan Bid Amid Honda Merger Talks
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