• Europe’s largest automaker, VW, posted record earnings for 2011. EBIT was up 58% to $15.1B, and revenue was up 26%. The results only matched analysts expectations, and the 4th quarter saw negative cash flow, however. From Bloomberg News.
• Japan was warned by Moody’s of a possible downgrade if a planned consumption tax increase fails. S&P has already sent signals of a downgrade if economic growth slows, or debt levels increase. The Japanese government has set a target for increasing the consumption tax to 8% from 5% in April 2014, and to 10% in October 2015. Further delays for passage would be viewed negatively by the agencies. From Reuters News.
• Japan’s financial regulator shut down Tokyo-money manager AIJ Investment Advisors. Allegedly, AIJ has lost “most of” the $2.3B in assets under management. The firm manages corporate pension funds. The FSA will conduct a review of the 263 registered investment management firms as a result of the case. From The Wall Street Journal.