Business Briefing:Disney Optimistic About Holidays

Walt Disney's Q3 revenue came in at 12.39 billion dollars versus an estimate of 12.37,while earnings were in line with the estimate at 0.89 cents per share.The revenue strength was due to record theme park attendance and studio profits more than doubling.*
We're not concerned about oversaturation with Marvel films;we have a great brand,CEO Bob Iger told CNBC.We have a number of plans for Star Wars:The Force Awakens between now and December 2015 when the film comes out.We're very excited about it.It's going to take a little while to finish it.
We had a good year at the Hong Kong and Tokyo Disneylands and Disney World.We just have a product that continues to be in demand.We have a Frozen castle show that's going into Orlando this holiday season.Our bookings are up for the quarter about 10%.Our cruise business is also doing very well.We're in the direct to consumer business in many ways,and ESPN is an example of that.
You have to conclude that the multi-channel bundle is the dominant method that consumers use to get TV in their homes.What we do know,we're incredibly well-positioned as a company with the strength of our brand.We're taking a cautious approach.The prudent thing to do is to maintain the value.We think the holiday season is going to be very,very strong,Disney CEO Bob Iger predicted.*
Walt Disney Company(DIS)

Asia This Day:Qantas and Emirates Join Forces;Japanese Hiring Up

Japan's Tankan business confidence survey was up less than expected,from -12 in February to -8 in March,although it was the best quarterly improvement in two years.At the same time,China also reported a slight miss in estimates as the Purchasing Managers Index rose to 50.9 in March from 50.1 in February.HSBC's China PMI reading rose to 51.6 from 50.4,a little stronger improvement than the government's version.
Asian markets were lower on the mildly disappointing data,with the MSCI Asia-Pacific index falling 0.74% in early Monday trading.Markets in Hong Kong,Australia and New Zealand remain closed till Tuesday for the Easter holiday.
Chinese authorities told Beijing and Shanghai to place new restrictions on home buying in an attempt to limit skyrocketing prices.Homeowners were not to be granted credit to buy second or third homes.
Australia's airline Qantas and the UAE's Emirates Air have inaugurated their new alliance with a symbolic first flight .It will now be possible for Qantas passengers to fly to 65 international destinations from Melbourne and Sydney with one connecting flight in Dubai,as opposed to only five destinations in a previous alliance with British Airways.This will shave two hours off of flights to Europe.
Bookings to Europe are up six-fold on the new routes,which Goldman Sachs believes will be worth about Australian 90 million dollars to Qantas-or US 94 million.Qantas has cut its deficit from A262 million to A91 million in the first half of the fiscal year on retiring old planes and cutting unprofitable routes.CEO Alan Joyce has pledged to return the carrier to profitability.
For the first time in three years,Japan Airlines graduated about a thousand new hires in a JAL hangar in Tokyo.The workers stood stock-still in formation at the ceremony Monday.
Nomura Securities has hired the most new graduates in four years on the strength of the banking industry.

Should You Buy Disney Shares

Walt Disney beat the Q2 profit estimate,earning 1.01 per share versus the 0.93 estimate,but missed on sales,racking up 11.1 billion dollars versus the 11.3 billion estimate.It found a lot of studio success with "The Avengers" film.Media Networks and Entertainment and Theme Parks provided most of the income.Media Networks rose 3%,while Theme Parks gained 9%,and the Studio division was flat overall.
Disney's new CarsLand park was well-received.Worldwide TV was driven by higher sales in international markets-the hot places to sell properties.ESPN charges pay TV operators more than anyone else does.
Disney CEO Bob Iger said every one of our businesses were up nicely year over year.The consumer is still flocking to valuable,good product.Spending is up nicely from a year ago.Visibility is still somewhat lacking in advertising.Generally speaking,there is not much visibility in the ad market.ABC had a modest decrease in advertising for the quarter.
Resort spending is up nicely.We have huge strength in ESPN.The Disney Channel has been on fire,in the number one position.We actually see a relatively strong environment for our channels' franchise fees.
We're relatively consumer-facing and global.Europe is troubling us the most.Our businesses in Asia have been quite strong-the Tokyo and Hong Kong theme parks.People are willing to step up for the cruise ship business and expanded parks.We started to ween ourselves off deep discounts.There's still some room to increase prices based on good,fresh product.
It would be fair to view the environment with some degree of caution,but with our product,our outlook is generally favorable.The world is more complex and competitive than ever before.We've got to have a culture of innovation and a strong infrastructure.We've got to figure out a way to get the government moving forward.That's vital for our business.Corporate taxes have to be looked at carefully,Mr.Iger urged.
Walt Disney Company(DIS)

Asian Markets Open For Business-issue 2

Asian markets were opening higher across the board this morning,Monday.The MSCI Asia Pacific Index rose 0.92 on optimism for a Greek debt settlement in Brussels today,as well as China's relaxation of bank reserve requirements,freeing up capital for lending.
The People's Bank of China lowered the reserve ratio requirements by 50 basis points effective Friday,24 February.The cut is expected to add 64 billion dollars to the system.The reserve requirements were last eased in November 2011.
Thailand's flood-related losses were even more devastating than previously thought.Thai GDP fell 10.7% in Q4,when it had been expected to fall just 5.0%.The Thai economy grew a minuscule 0.10% in 2011 because of the deluge.
India's stock market is closed today for the Maha Shivrati holiday,while the U.S. market is shuttered for Presidents' Day.
China's Vice President Xi Jinping signed an agreement at the end of last week's visit to the U.S. permitting a substantial increase in the number of Hollywood films allowed into China from about 20 to 34 a year.As well,the revenue allowed to U.S. filmmakers from IMAX films will be raised from 13-25%.Mr.Xi's visit is being hailed as successful in both countries.He is expected to become President in 2013 and lead China for the next 10 years.
Dreamworks Animation is opening a studio in China with two Chinese partners.The 330 million dollar complex will be built in Shanghai.
Japan posted a record trade deficit.Exports were down 9.3% on the year,while imports rose 9.8%.Tokyo says the figure is a temporary decline in exports.

BHP Shares Rise On Gillard Policy Win

Shares of natural resource firm BHP Billiton rose Monday morning on news that the Australian Labour Party is lifting its ban on the export of uranium to India.Prime Minister Julia Gillard said the move will help the Australian economy by tapping into India's demand for energy.Her critics pointed out that India hasn't yet signed the nuclear non-proliferation treaty.
Japanese shares also rose on optimism that the Euro debt crisis is being seriously addressed.Jesper Koll,Head of Japanese Equity Research at JP Morgan Japan,described Japan as the forgotten angel.It is showing good job creation,wage growth and policy decisions.Goldman Sachs agreed,saying Japanese profits could rise significantly in 2012.
Mr.Koll is a longtime resident of Japan and has many years of experience analysing its economy.
BHP Billiton Ltd.(BHP),iShares MSCI Japan Index Fund(EWJ),JP Morgan Chase(JPM),Goldman Sachs(GS)

Boeing 787:Signed,Sealed and Delivered-At Last

After a ponderous three year delay caused by everything from supplier issues to design flaws,Boeing has finally delivered the first 787 Dreamliner to Japan's All Nippon Airways.A collective sigh of relief may well have sounded around the world's airline headquarters as some 500 Boeing employees,many of them carrying umbrellas on the rain-soaked runway of Washington state's Everett Field,walked the state-of-the-art aircraft to All Nippon executives in a dramatic transfer ceremony.Boeing hailed the event as the beginning of a new era in commercial aviation.
The Dreamliner is Boeing's first new civilian aircraft on the market in 16 years.It will make its first commercial flight on October 26 on a route from Tokyo to Hong Kong.
The sleek airliner is the first to be partially fabricated from carbon fiber composite material.The lightweight mesh of carbon fiber and epoxy makes the 787 20% more cost effective to fly,cutting back markedly on the amount of fuel needed.Modular construction reduces the assembly time from months to a matter of days.The plane's components are produced by a global network of contractors.
The Dreamliner,which features larger luggage bins and windows,as well as soft blue lighting,is the best-selling new jet in history.Despite the delays,Boeing has 821 orders for the plane on its books.This will ensure the jobs of thousands of workers for decades to come.
Boeing(BA)

China Home Prices Still Rising

In spite of the government's best efforts to rein them in,new home prices in China continue to rise.A report shows new home prices are up in 67 of 70 cities.Developers are not cooperating with Beijing;nor are certain local officials.They are perhaps waiting to see how things will play out.
All the same,Peter Churchouse of Portwood Capital says we're already seeing a decline in secondary home prices.He expects to see this in new homes in the back half of the year.
The Japanese stock market is closed today,Monday,for Respect For the Aged Day.
The Australian and New Zealand dollars were down on renewed Euro debt fears as European finance ministers failed to come up with concrete measures at a weekend meeting.The euro dollar was also lower,and the dollar yen was higher.New Zealand economists see slower growth ahead because of a delay in rebuilding following recent earthquakes.
At least 18 people died in a 6.9 earthquake on the Indian-Nepalese border in the Himalayas.India sent five military aircraft to assist the residents there.Kathmandu,Nepal reported extensive damage.
At the BMW Championship near Chicago,English golfer Justin Rose took the title,while Australians John Senden and Geoff Ogilvy were second and third on the leader board,respectively.
It was 72F in Shanghai on Monday under mostly cloudy skies.Winds were W at 22 mph,and the humidity was 60%.

Asia This Day:Firm Support for U.S. Treasuries

Asian markets fell Monday morning from 1-3% in reaction to the downgrade of U.S. credit.Singapore dropped 3.36%,and Hong Kong lost 2.95%.Nonetheless,Asian investors stood by U.S. bonds.Following an emergency meeting,South Korean officials reaffirmed their support for U.S. Treasury bonds.
Taiwan said the downgrade would have no direct or immediate impact.Hong Kong was sticking to its previous policies.Japan said it had not lost trust in Treasuries.Russia said U.S. Treasuries were reliable and it would not be reviewing its investment policy.
UBS said 70% of its clients indicated they would hold onto their U.S. bonds;30% would even increase their holdings.
Australian Treasurer Wayne Swan said Australia faces the challenges from a position of strength.Prime Minister Julia Gillard reassured the nation that Australia could handle the current instability.After all,Australia was the only developed country that did not go into recession during the 2008 financial crisis.
France questioned Standard&Poor's judgement in imposing the downgrade.All the same,U.S. stock futures were down precipitously Sunday evening,warning of a volatile Monday session ahead.
Singapore saw mostly cloudy conditions Monday morning.It was 86F,with winds S at 5 mph.The humidity was 70%.
Australian Adam Scott won the World Golf Championships Bridgestone Invitational in Ohio on Sunday.It was the 31-year old's eighth career victory on the PGA Tour.

Asia This Day:Japan Rebounds Strongly

The earnings reports coming form Japan are very good,says Jesper Koll of JP Morgan Chase.Corporate Japan is recovering very nicely.For April-June,it is very likely there was a sharp increase in aggregate earnings,a very steep recovery in overall sales.You could see 10-15% up in aggregate terms,Mr.Koll believes.
In Thailand,we're definitely seeing a return of foreign buying after the election,Andrew Yates of Asia Plus,the RBS partner in Thailand,indicated.It seems to be business as usual.The foreign flows are very strong.
We continue to like the banks.People are also looking at property and consumer plays.The SET property index is up 12% since the election.The single biggest concern is inflation.The Bank of Thailand has been pushing up rates,but the current 4% of inflation isn't too bad,in Mr.Yates'opinion.
Golfer Yani Tseng of Taiwan won the RICOH Women's British Open in Carnustie,Scotland on Sunday.
Most Asian shares were higher Monday morning in relief at the U.S. debt ceiling agreement.In Taipei,it was 90F under scattered clouds.Winds were N at 5 mph,and the humidity was 59%.

Asia This Day

Asian markets were largely gainers this morning,Monday,on hopes that the European debt crisis is easing and some positive U.S. retail sales data.The Australian ASX 200 was up 20.00,while Hong Kong's Hang Seng Index rose 151.64 and Japan's Nikkei 225 gained 55.44.Singapore's Straits Times Index was up 23.12.
The Chinese economy faces a sluggish landing,according to Credit Suisse.The existing homes market cooled off in May on government measures to rein it in.Chinese stocks have fallen to 9-month lows on the economic uncertainty.
In Japan,the trade deficit rose more than expected to 853.7 billion yen.Imports were up 12.3,and exports fell 10.3.This is because of continued supply chain disruption from the March 11 earthquake and tsunami.
New Zealand,however,greeted positive economic news this morning.Manufacturing volumes were up 1.9.As well,the services industry expanded at a faster pace in May.
Hong Kong was a toasty 90F on Monday under scattered clouds.The winds were NE at 8 mph,and the humidity was 62%.

Asia This Day

Asian markets were mostly lower this morning,Monday,on continuing global economic concerns.Japan's Nikkei 225 was down 54.87,while Hong Kong's Hang Seng Index dropped 222.31 and Singapore's Straits Times Index fell 16.42.Australian markets were closed for the Queen's Birthday holiday.
There were anti-nuclear demonstrations in Tokyo at government buildings and the offices of Tepco,owner of the disabled reactors.The protesters were marking the 3-month anniversary of Japan's earthquake and tsunami disaster.
Japan's April machinery orders were down 3.3,which was worse than expected.The decline is attributable to parts and electricity shortages down to the earthquake and tsunami.
The World Economic Forum is meeting in Jakarta,Indonesia.Some 600 attendees will assess Asian prospects at the conference.Indonesia is being regarded as the next Brazil,the fifth BRIC country.
Hong Kong woke to partly cloudy skies today with thunderstorms in the forecast.It was 86F,and winds were out of the southeast at 7 mph.The humidity was 74%.

Asia This Day

News from Japan dominated the opening hours of the first business day of this week.In M&A news,Toshiba is said to be close to acquiring Swiss smart meter firm Landis+Gyr.Landis+Gyr has outfitted tens of thousands of Danish homes with their energy management technology.
Japan's machinery orders were up 2.9% for the month of April and 6.8% on the year.This may be because Japanese companies are getting set to resume full operations following March 11th's earthquake and tsunami.
The Japanese government is asking banks to forgive Tokyo Electric Power's debt.Tepco,owner of the damaged nuclear plants,is critical to the Tokyo area and the national economy.
Mizuho Financial forecasts an 11% profit increase this year.
Elsewhere in Asia,Singapore strongman Lee Kuan Yew has resigned from the nation's cabinet after five decades,saying it was time for someone younger to take the reins.
In early Asia trading,Japan's Nikkei 225 was down 82.66,while the Korean Kospi declined 14.26 and the Australian ASX 200 dropped 64.70.
It was 82F in Hong Kong under mostly cloudy skies.The day had begun with fog and rain.
iShares Japan MSCI Index Fund(EWJ)

Trade Group Tracks Pullback

A key measure of the performance of stores,banks,contractors and travel firms-the service sector-was sharply down for January.The Institute for Supply Management's non-manufacturing index registered a 44.6-well below the 50 that indicates growth.The index characterizes most of the U.S. economy,which is service-oriented.It averages 57.6,which is 13 points higher than January's reading,and had been projected to be at 53.The ISM,a buyers' trade group in Tempe,Arizona,produces some of the most respected monthly gauges of economic activity.The ISM's reading of service sector business activity dropped to 41.9 in January from 54.4 in December,which was a decline of historic proportions.It was the first time the service sector contracted since March 2003.The results of this purchasing managers survey were even worse than during the last recession of 2001-2002.Then,the index had a reading of 50 at the start of the recession,and moved between 48 and 49 during the downturn.New orders for January 2008 dropped to 43.5 and employment slumped to 43.9.The G-7 finance ministers and central bankers,who met over the weekend,said the U.S. economy may decline further,hindering global growth."Downside risks still persist,"the officials said in their statement.The G-7 consists of the U.S.,Canada,the U.K.,Italy,Germany,France and Japan.In their view,tighter credit conditions and continued volatility are to be expected.Jean-Claude Trichet,President of the European Central Bank,promised a firm response to a significant market correction,taking appropriate actions,individually and collectively,to secure stability and growth.Many investors remain active in these conditions,sticking to their habits of dollar-cost averaging and diversification to build for the medium and long terms.Health care stocks such as Apria Healthcare Group(AHG) and Johnson and Johnson(JNJ) are popular because they are seen as more recession-resistant.Other investors are staying in e-savings accounts such as that offered by Branch Banking and Trust(BBT),which yields 3.87%.