Mitsubishi Motors Posts Q1 Loss; Sees Wider Loss In FY20; To Freeze New Models Launch In Europe

Japanese automaker Mitsubishi Motors Corp. (MMTOF.PK,7211) reported Monday that its first-quarter loss attributable to the shareholders of the parent was 176.16 billion Japanese yen, compared to a profit of 9.31 billion yen last year. Basic loss per share was 118.36 yen, compared to prior-year’s profit per share of 6.26 yen.

Operating loss for the period was 53.34 billion yen, compared to profit of 3.86 billion yen last year.

Consolidated net sales for the quarter fell 57.2 percent to 229.55 billion yen from last year’s 536.16 billion yen.

Looking ahead to the fiscal year 2020, the company expects attributable net loss of 360 billion yen or 241.88 yen per share, operating loss of 140 billion yen and net sales of 1.48 trillion yen, which will be down 34.8 percent from last year.

In fiscal 2019, the company reported attributable net loss of 25.78 billion yen or 17.32 yen per share and operating income of 12.79 billion yen.

Separately, Mitsubishi Motors said its Board resolved to stop production in first half of 2021 and close the factory of its domestic production subsidiary, Pajero Manufacturing Co., Ltd.

The Board has also resolved to freeze the introduction of new models to the European market. Meanwhile, sales of existing models will continue.

Additionally, after-sales and services will continue, for customers who prefer to use Mitsubishi products.

Infrastructure push can re-ignite economic growth: RBI Governor Shaktikanta Das

India needs policies for sustained increase in farm income, he added

RBI Governor Shaktikanta Das on Monday made a strong case for stepping up investments in the infrastructure sector to restart the economy reeling under the impact of the COVID-19 pandemic.

In his address to India Inc at a CII event, Das said both private and public sectors have to play an important role in developing infrastructure that requires huge investments.

Stating that recent agriculture reforms have opened new opportunities, the RBI Governor said the farm sector is emerging as a bright spot.

India needs policies for sustained increase in farm income, he added.

With regard to forex rate, Das said the RBI has no fixed target for the rupee but will monitor undue volatility.

Russia Lowers Key Rate By 25 Bps To Record Low

Russia’s central bank lowered its key rate by 25 basis points to a new record low on Friday and signaled more reductions as the economy is expected to follow a gradual recovery from the downturn caused by the coronavirus pandemic.

The Board of Directors, led by Governor Elvira Nabiullina, decided to reduce the benchmark rate to 4.25 percent from 4.50 percent. The decision came in line with economists’ expectations.

The bank had reduced the rate by 100 basis points in June and by 50 basis points in April.

The bank said it will consider the necessity of further key rate reduction at its upcoming meetings.

Disinflationary factors continue to exert considerable influence on inflation, the bank observed.

According to the board, there is a risk that in 2021 inflation might deviate downwards from the 4 percent target. A significant easing of monetary policy since April was aimed at curbing this risk and stabilizing inflation close to 4 percent.

Given the current monetary policy stance, annual inflation is forecast to reach 3.7-4.2 percent in 2020, 3.5-4.0 percent in 2021 and will stand close to 4 percent later on.

Driven by monetary easing and regulatory measures, the economy is forecast to expand 4.5-5.5 percent in 2020.

Thereafter, GDP is expected to follow a recovery path with growth predicted to total 3.5-4.5 percent in 2021 and 2.5-3.5 percent in 2022.

Wirecard Surges After Investors Eye Core Business, U.S. Unit

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Wirecard AG rose the most since June after it revealed that more than 130 investors are eyeing the company’s assets.

Some 60 potential buyers have signed confidentiality agreements relating to the bidding for Wirecard’s North America unit, and 77 have done so for its core business of acquiring and issuing, the company’s insolvency administrator, Michael Jaffe, said in a statement late Friday.

Wirecard has enough liquidity “for the time being” to continue operating, Jaffe said. The bidding will start in the next few weeks and the administrator is confident of finding buyers, he said.

Wirecard rose as much as 37% in early trading in Frankfurt on Monday, the steepest intraday gain since June 30.

The shares were almost wiped by last month’s insolvency filing, the culmination of an accounting scandal that led to the arrest of its chief executive officer and left the German payment-processing firm unable to find over $2 billion missing from its balance sheet.

U.S. Treasury prices move higher amid concerns over coronavirus infections, geopolital tension

• Growing Covid-19 infections in certain parts of the world have raised concerns over the prospects for the global economy.
• India, Hong Kong, as well as certain regions of Europe, have seen spikes in recent days. 

U.S. government debt prices were higher Monday morning as investors searched for so-called safe havens amid concerns over the global economy, the spread of Covid-19 and geopolitical tensions.

At around 4 a.m. ET, the yield on the benchmark 10-year Treasury note fell to 0.5823% and the yield on the 30-year Treasury bond dropped to 1.2249%. Yields move inversely to prices.

This comes on the back of gold prices hitting new records on Monday. 

Recent growing Covid-19 infections in certain parts of the world have raised concerns over the prospects for the global economy. India, Hong Kong, as well as certain regions of Europe, have seen spikes in recent days. 

Treasurys

On the data front, there will be durable goods numbers at 8:30 a.m. ET and Dallas Fed manufacturing figures will be released at 10:30 a.m. ET.

The U.S. Treasury is due to auction $105 billion in 13-week and 26-week bills; $48 billion in two-year notes; and $49 billion in five-year notes.