US Markets Closed; German Business Confidence Rises

Comstock/Thinkstock(NEW YORK) -- The U.S. markets are closed Thursday for the Thanksgiving holiday but world markets have edged higher.

There's speculation that China might ease its monetary policy and that is easing fears Germany's strong economy may be succumbing to Europe's debt crisis. Benchmark oil was hovering over 96 dollars a barrel, while the dollar fell against the euro and the yen.

A closely watched survey shows German business confidence rose unexpectedly this month, despite the lingering European debt crisis. It breaks a trend of four months of falling business confidence.

Global markets were spooked Wednesday by the poor results at an auction of German debt -- with only 60 percent demand -- and by news the Dow fell for a sixth straight day.  

Copyright 2011 ABC News Radio

US Dollar Hits Three-Month Low in Asian Markets

Photos.com/Thinkstock(TOKYO) -- In a sign of growing concerns over the U.S. debt crisis, the U.S. dollar index fell to a three-month low Wednesday in Asian markets.

The dollar fell to a four-month low against the Japanese yen, while marking a record low against the Australian dollar.

A board member for the Bank of Japan said failed talks in D.C. could have serious effects on Japan's financial system.  He added that he expects the finance ministry to look at whether to intervene.

The U.S. government is projected to default unless a deal is reached before next Tuesday's deadline

Copyright 2011 ABC News Radio

Toyota Announces Profit Forecast for 2012

PRNewsFoto/Toyota Media Relations(TOKYO) -- On Friday, Japanese carmaker Toyota announced that it expected lower profits for the upcoming fiscal year ending in March 2012.

In a statement, the company forecast a 31 percent drop in annual profits from last year’s $5 billion to a projected $3.5 billion. They attributed the anticipated drop to the March earthquake in Japan which slowed production and the strength of the yen.

The company stated that they expect the emerging economies specifically China and India, to continue expanding while the developed economies like the United States and Europe will continue their recovery at a moderate pace.

“The Japanese economy is expected to pick up gradually as well, backed by recovering economies overseas and the various effects of government policies. However, the damage by the Great East Japan Earthquake was widespread and serious, and will continue to significantly affect the Japanese economy, and the momentum of Japan’s economic recovery will weaken for the time being,” said the company.

Copyright 2011 ABC News Radio

Toyota Earnings Through the Roof, But Dark Clouds Loom

Courtesy - Toyota(NEW YORK) -- Despite 11 million recalls, mostly in its key U.S. market, and a soaring yen, Toyota's earnings for the quarter ending September 30th are up.  Toyota boasted earnings of 9,678 billion yen, or $1.2 billion. That's a 15 percent increase over last year. 

The company credits 90 billion yen in cost reductions and strong sales in Asia. 

Experts sound a note of caution over the near future as Toyota predicts a much smaller profit for the second half of the year.  The strength of the yen is presenting a big challenge.

The Financial Times quotes Toyota's Chief Financial Officer, Satoshi Ozawa, saying the carmaker might move more production outside Japan if profits in the six months to March declined further than expected.

Friday's comments may add pressure on the government over the yen’s climb toward a 15-year high against the dollar.   Ozawa says the carmaker is losing competitiveness.

Copyright 2010 ABC News Radio