Australia

Filed under: Automotive IndustryFord Motor Co. (NYSE: F) did the right thing in Australia, at least financially. It will stop building cars there. Its business in the country cannot work financially, the company says. It is a lesson to the American car companies that do business in another market where they operate in the red - Europe. The Australia move is a template for what Ford and General Motors Co. (NYSE: GM) need to do in the world's most economically troubled region, which is, like Australian, also one in which labor costs are too high. Ford, and GM to a greater extent, believe they need to stay in Europe for strategic interests because the market is so large and eventually will recover. That recovery could be many years off, and it will not bring down GM's costs. Neither will it reverse GM's market share decline or recover the losses it has incurred in Europe for well over a decade. Ford was smart enough to abandon a region where it had no hope of a turnaround. GM should make same move in Europe. Bloomberg reports that GM has lost $18 billion in Europe since 1999. After posting a full-year loss of $1.8 billion last year, the largest U.S. car company said it would lose another $2 billion this year. And, as the overall market in Europe continues to shrink, GM's part of that shrinking pie has dropped sharply. The AECA announced that in Europe overall sales fell 7.1% in the first four months of this year. GM's sales have been worse than most of its competitors over that period. Its unit sales have fallen 10.5% to 317,546. In contrast, rival Volkswagen's sales are off only 3.4% to 997,186. GM is in a losing game in Europe, as Ford was in Australia. Like Ford, it should cut its losses and run. Filed under: 24/7 Wall St. Wire, Autos Tagged: F, GM Read | Permalink | Email this | Linking Blogs | Comments

Filed under: InvestingHewlett-Packard Co. (NYSE: HPQ) raises its financial forecast and shares soar. (Reuters) The European Union may allow Greece more time to reach its budget targets. (Reuters) After a number of attacks on its media sites, Twitter tries to do a better job of stopping them. (Reuters) Clearwire Corp. (NASDAQ: CLWR) probably will face shareholder revolts over the amount Sprint Nextel Corp. (NYSE: S) has offered to buy it. (Reuters) Boeing Co. (NYSE: BA) gets a green light from Chinese officials to sell airplanes to local carriers. (WSJ) Softbank agrees the federal government may appoint a member of Sprint's board to track possible Japanese influence. (WSJ) Discovery Communications Inc. (NASDAQ: DISCA) will begin to offer streaming video services, including some original programs. (WSJ) KKR & Co. L.P. (NYSE: KKR) may invest in Saks Inc. (NYSE: SKS) and combine it with Neiman Marcus. (WSJ) General Electric Co. (NYSE: GE) may sell some of its financial operations. (WSJ) A proposal by investor Daniel Loeb would have Sony Corp. (NYSE: SNE) spin out or sell off its studios. (WSJ) Tesla Motors Inc. (NASDAQ: TSLA) repays $465 million from the Energy Department well before its was due. (NYT) Ford Motor Co. (NYSE: F) will close operations in Australia because of losses. (FT) European Union leaders seem to back away from austerity measures, but they fail to make money available for expansion in the region. (Bloomberg) Filed under: 24/7 Wall St. Wire, Press Digest Tagged: BA, CLWR, DISCA, F, GE, HPQ, KKR, S, SKS, SNE, TSLA Read | Permalink | Email this | Linking Blogs | Comments

One of Australia's most loved figures, Hazel Hawke has died at the age of 83.

Sir Ian Botham, former England captain and the hero of England's 1981 Ashes victory over Australia, says England were 'magnificent' during their 170-run victory over New Zealand at Lord's in the first cricket Test of the summer. James Anderson took his 300th Test wicket and Stuart Broad took seven wickets as New Zealand were bowled out for 68 and Botham was speaking at an event launching Unibet's summer of sport at the home of cricket.

Australian cricketer Usman Khawaja has said that he is often misunderstood by some in the Cricket Australia hierarchy, saying that he will prove them wrong by proving himself on the field and bringing home the Ashes.

A WA man has been charged with stealing more than $100,000 from the payroll accounts of a popular Perth theme park.

The bosses of an organisation charged with modernising NSW's roads and rail are leaving their jobs after less than two years.

Tasmania should focus on growth, not the GST, says federal Opposition Leader Tony Abbott.

Tasmania looks certain to sign up for the Gonski reforms after funding the package in the state budget.

Richmond have recalled ruckman Ivan Maric and ex-captain Chris Newman for Saturday night's AFL Dreamtime clash with Essendon at the MCG.