STOCKS
Over the last decade, General Motors Co. (GM, +0.45%)
abandoned producing medium duty work trucks in the U.S. Now, the auto giant is
ready to re-enter this growing, as well as potentially lucrative, U.S. market.
Teaming up with Isuzu Motors Ltd. in Japan, GM will procure work trucks which
will then be sold under the Chevrolet brand in the U.S. Isuzu and GM have
worked together for many years. Isuzu, which is the number one auto maker in
terms of sales in the U.S., will then rely on GM to reclaim its market share by
selling these medium trucks through its dealer network and its reputation. In
2015, the medium-duty market has grown 3.5 percent. According to the dealers,
the N-series truck, which is built by Isuzu, will now be rebranded as
Chevrolet. On Monday, this partnership will be unveiled and analysts are
expecting this announcement to be well-received especially in a country where
stronger economic conditions are evident. GM already works quite closely with
other companies in order to share the costs of new product developments. For
example, the auto giant also purchases Nissan Motor Co. work vans and rebrands
them as Chevrolet for the U.S. While the partnership between GM and Isuzu is
only a small step, it represents the company’s commitment to taking a bigger
market share against rivals such as Daimler AG and Ford Motor Co. The hope is
that some GM Chevrolet dealers will now get the opportunity to make additional
money by selling, outfitting and servicing work trucks. GM stocks are currently
trading at $35.71 a share.
INDICES
In U.S. trading on Friday, U.S. stocks closed lower giving
up previous gains. This decline came in response to sharp selloffs in the
European equity markets as a result of concerns regarding the future of
debt-ridden Greece in the eurozone. At the close of trading, the Dow Jones
Industrial Average (DJIA) declined 0.8%, or 140.53 points, to 17,898.84. For
the week, the blue chip index gained 0.3 percent. Meanwhile, the S&P 500
index (SPX) closed 0.7%, or 14.75 points, lower at 2,094.11. The benchmark
index finished the week flat. Also, the Nasdaq Composite index (COMP) declined
0.6%, or 31.41 points, to 5,051.10. For the week, the tech heavy index lost 0.3
percent. Also on Friday, losses were evident in Europe and the Stoxx Europe 600
(SXXP, -0.92%) declined 0.9% while the Athens Composite index (GD, -5.92%) also
dropped 5.9 percent.
CURRENCIES
In forex trading on Friday, the U.S. dollar (USD) traded
higher. This came despite the release of data which showed that producer prices
in the U.S. rose slightly more than expected in May. According to the
Department of Labor, the PPI (producer price index) rose 0.5 percent in the
previous month. This was above expectations for an increase of 0.4% after a
decline of 0.4% in April. Also, year on year, producer prices declined in May
by 1.1 percent which was in line with expectations. In May, the core producer
prices, which exclude energy and food, rose by 0.1%. The EUR/USD traded at
1.1232, down 0.26% and this decline was prompted after the IMF (International
Monetary Fund) left Greece after a breakdown in talks. Also, the GBP/USD traded
at 1.5504, down 0.09% while the USD/JPY traded at 123.68, up 0.20%. Against the
Canadian dollar, the greenback traded 0.18% higher at 1.2315 while the U.S.
dollar index was at 95.23, up 0.28%.
COMMODITIES
On Monday, crude oil prices declined in early Asian trade
with the future of Greece the main focus among investors. WTI crude oil for
delivery in July traded at $60.20 a barrel, down 0.32%, on the NYMEX.
Meanwhile, on Friday last week, Brent crude oil for July delivery traded at
$63.87 a barrel, down 1.9 percent, on the ICE Futures exchange. For the week,
the contract rose 0.88 percent. On Thursday, in its monthly report, the IEA
(International Energy Agency) stated that they expect the demand for oil to
increase faster than that had previously forecast for 2015. This increase would
be as a result of economic growth and lower prices and would increase by 1.4
million barrels a day this year. This is 300,000 barrels a day more than the
IEA had previously forecast.
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