Automotive World  Oct 24  Comment 
Mitsubishi Motors Corporation (MMC) is celebrating 15 years of its successful Mitsubishi Outlander crossover. Originally launched in the US in 2001, and in Europe in 2003, the Mitsubishi Outlander has accumulated 1.5 million sales over three...
Japan Today  Oct 23  Comment 
Mitsubishi Corp plans to invest in ElectroRoute, a company that engages in trading in power and a service business in Europe. ElectroRoute was established in Ireland in 2011. Currently, it runs a trading business including spot trading, futures...
Benzinga  Oct 21  Comment 
Mitsubishi UFG Securities has started coverage of Open Text Corp (USA) (NASDAQ: OTEX) with an Overweight rating and a price target of $74, implying an upside potential of 15 percent from current levels. Open Text provides Enterprise Information...
Flightglobal  Oct 21  Comment 
Airbus has taken delivery of the first Pratt & Whitney PW1100G engine assembled on the line of German manufacturer MTU Aero Engines.
Japan Today  Oct 21  Comment 
With the addition of Mitsubishi Motors, the Renault-Nissan alliance is closing in on the level of 10 million vehicles sold per year as automakers vie for the title of biggest manufacturer. Carlos Ghosn, who engineered the turnaround of Nissan...
newratings.com  Oct 20  Comment 
YOKOHAMA (dpa-AFX) - Nissan Motor Co. Thursday said it completed a deal to acquire a controlling stake in Mitsubishi Motors Corp. for $2.3 billion. Nissan CEO Carlos Ghosn will take over as chairman of the beleaguered automaker to turn around the...
Financial Times  Oct 20  Comment 
Some analysts question whether he can handle leadership roles at three companies
Reuters  Oct 20  Comment 
* Mitsubishi recovering from mileage cheating scandal (Adds details on stake sale, background)
Reuters  Oct 20  Comment 
Nissan Motor Co Ltd said on Thursday it had completed a deal to take a controlling stake in Mitsubishi Motors Corp, and would be retaining the embattled automaker's chief executive to ensure its recovery from a mileage cheating scandal.


Mitsubishi UFJ Financial Group (NYSE:MTU) (also known as MUFG) is the world's largest bank holding company by total assets.[1] Despite having the most assets, the Japanese bank holding company is smaller in terms of market capitalization than other large money-center banks, like Wells Fargo (WFC), J P Morgan Chase (JPM), and Bank of America (BAC). The market's lower valuation stems from Mitsubishi's historically low return on assets (ROA).[2]

The Japanese bank runs a conservative book compared to industry peers, with a loan-to-capital ratio of 68%.[2] While this has limited ROA/earnings, it has kept the bank from having capital issues as European and American competitors, such as Lehman Brothers (LEH), UBS AG (UBS), and Citigroup (C).[3] Mitsubishi uses bank deposits and short-term borrowings to originate loans to corporations, governments, and individuals. MUFG also invests in Equities and bonds.

While the company is Japanese, its ADR is publicly traded (NYSE: MTU).[4] Not only does Mitsubishi's financial health and outlook affect the share price, but also the Yen/USD exchange rate. The company records earnings and assets in its local currency, so an appreciation of the Yen benefits the ADR price and increases the nominal value of dividends on its ADR shares, as it earns more in terms of US dollars.[5] A bit suprriesd it seems to simple and yet useful.

Umm, are you really just giving this info out for notinhg?

Key Trends and Forces

Yen/USD Relationship

The value of the Yen compared to the US dollar impacts the value of ADR shares of MUFG and its business operations. Mitsubishi's stock is listed on the NYSE. An increase in the value of the Yen translates to higher share price and dividend payments in the ADR shares all else constant. An appreciating Yen can purchase more US dollars. However, on the flipside, a strengthening Yen adversely impacts parts of MUFG's business. Not all foreign borrowers hedge currency, so if they took a loan out in term of Yen dollars, and the Japanese currency appreciates, this increases the payment burden on the borrower. The pressure increases borrower defaults.[5] Further, if MUFG does not hedge its foreign loans, currency movements impact earnings.


Wonderful explanation of facts aviaallbe here.

I really couldn't ask for more from this atricle.

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