Toyota and Honda Stock Take A Hit at Home
Even as Japan's Nikkei index rose by a modest 0.3 percent in one day, Bloomberg.com reports that the market capitalizations of both ToMoCo and Honda declined. Their value sank by 1.2 percent and 1.4 percent respectively on their home turf trading index. Bloomberg's analysts attribute the decline in stock values to the fact that both companies do a significant part of their business in the currently bearish U.S. market. More specifically, they believe that slumping real estate prices in the United States will lead to a consumer spending slow down in the world's largest economy, which will reduce new car sales. As goes the U.S., so goes the world?
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