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WASHINGTON (Reuters) -U.S. homebuilder sentiment jumped to a six-month high in October amid hopes that declining mortgage rates would stimulate demand for housing and help reduce an inventory overhang that has hampered new housing construction. The National Association of Home Builders/Wells Fargo Housing Market index increased five points to 37 this month, the highest reading since April. It, however, remained below the 50 breakeven point for the 18th straight month. Economists polled by Reuters had forecast the index edging up to 33. Higher mortgage rates have dampened housing demand, resulting in a glut of unsold new homes on the market. Though mortgage rates have eased as the Federal Reserve resumed cutting interest rates, growing economic uncertainty amid a lackluster labor market is keeping prospective buyers on the sidelines. "While recent declines for mortgage rates are an encouraging sign for affordability conditions, the market remains challenging," said NAHB chairman Buddy Hughes. "The housing market has some areas with firm demand, including … ongoing solid conditions for the luxury market. However, most home buyers are still on the sidelines."  The survey's measure of current sales conditions increased four points to 38 this month, while its gauge of future sales jumped nine points to 54. A measure of prospective buyer traffic posted a four-point gain to 25. Builders continued to reduce house prices to lure buyers. Thirty-eight percent reported cutting prices. The average price reduction rose to 6%, the largest cut in a year, after averaging 5% for several months. The use of sales incentives was unchanged at 65%. New housing inventory decreased in August after hovering for several months at levels last seen in late 2007. A shutdown of the government amid a standoff over funding has suspended the collection and publication of economic data. The NAHB estimated new single-family building permits rebounded in September after plunging in August to the lowest level in more than two years. "Based on modeling of historical data, the October increase for the HMI suggests an approximate 3% increase for the September single-family permit data on a seasonally adjusted annual rate basis," said NAHB chief economist Robert Dietz.  (Reporting By Lucia Mutikani, Editing by Franklin Paul)

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WASHINGTON (Reuters) -U.S. homebuilder sentiment jumped to a six-month high in October amid hopes that declining mortgage rates would stimulate demand for housing and help reduce an inventory overhang that has hampered new housing construction. The National Association of Home Builders/Wells Fargo Housing Market index increased five points to 37 this month, the highest reading since April. It, however, remained below the 50 breakeven point for the 18th straight month. Economists polled by Reuters had forecast the index edging up to 33. Higher mortgage rates have dampened housing demand, resulting in a glut of unsold new homes on the market. Though mortgage rates have eased as the Federal Reserve resumed cutting interest rates, growing economic uncertainty amid a lackluster labor market is keeping prospective buyers on the sidelines. "While recent declines for mortgage rates are an encouraging sign for affordability conditions, the market remains challenging," said NAHB chairman Buddy Hughes. "The housing market has some areas with firm demand, including … ongoing solid conditions for the luxury market. However, most home buyers are still on the sidelines."  The survey's measure of current sales conditions increased four points to 38 this month, while its gauge of future sales jumped nine points to 54. A measure of prospective buyer traffic posted a four-point gain to 25. Builders continued to reduce house prices to lure buyers. Thirty-eight percent reported cutting prices. The average price reduction rose to 6%, the largest cut in a year, after averaging 5% for several months. The use of sales incentives was unchanged at 65%. New housing inventory decreased in August after hovering for several months at levels last seen in late 2007. A shutdown of the government amid a standoff over funding has suspended the collection and publication of economic data. The NAHB estimated new single-family building permits rebounded in September after plunging in August to the lowest level in more than two years. "Based on modeling of historical data, the October increase for the HMI suggests an approximate 3% increase for the September single-family permit data on a seasonally adjusted annual rate basis," said NAHB chief economist Robert Dietz.  (Reporting By Lucia Mutikani, Editing by Franklin Paul)

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By David Dolan and Maki Shiraki TOKYO (Reuters) -Global investors have called on Toyota Motor to provide more disclosure about its planned buyout of group firm Toyota Industries, criticising what they said was "opaque" valuation and a failure to safeguard the interests of minority shareholders. An August 8 letter – made public on Thursday – from some two dozen asset managers including AllianceBernstein, Neuberger Berman and Schroders, is likely to deepen scrutiny of a deal that promises a landmark unwinding of cross-shareholdings and to strengthen the influence of the founding Toyoda family within the group. The transaction is being closely watched as it involves an overhaul of the country's most important corporate group and coincides with a push by regulators and the government for better corporate governance. Toyota Industries, a maker of forklifts and a key supplier to the Japanese automaker, is to be taken private by Toyota, group real estate company Toyota Fudosan and Toyota chairman Akio Toyoda. PREMIUM SEEN AS BELOW AVERAGE The proposed transaction includes a 3.7 billion yen ($24.5 billion) tender offer for shares of Toyota Industries at 16,300 yen apiece, which represents around a 23% premium to the share price before word of the deal broke in April. That is well below the 44% average premium in similar deals based on Tokyo Stock Exchange data, the investors said. The deal has the potential to "either reinforce or weaken the progress made in corporate governance reforms," the investors said in the letter. It was sent by the Asian Corporate Governance Association (ACGA), which represents asset managers in the region, and was signed by global institutional investors. "Central to our concerns is the lack of full valuation disclosure," the investors said. They called for the release of all valuation models, tax assumptions and third-party appraisals used to determine the offer price. ACGA has had a series of calls with both companies about the deal and a Toyota Industries independent director was made available for discussion, providing a level of access that is relatively rare, ACGA Secretary General Amar Gill told Reuters. TOYOTA INDUSTRIES SHARES ABOVE OFFER PRICE  Toyota said in a statement that it had engaged in "multiple rounds of constructive dialogue" with ACGA and has sought to provide thorough explanations of its position. "The negotiations between the independent companies involved in this transaction have been conducted in good faith through a fair and independent process, with sufficient consideration given to the interests of minority shareholders," it said. "Should there be any matters that require disclosure in the future, we will promptly make such announcements." Shares of Toyota Industries have been trading above the offer price – they were at 16,620 yen on Thursday – suggesting market participants believe Toyota may yet increase the price.  The investors also took issue with the planned transactions' treatments of several Toyota group affiliates as independent minority shareholders – which would mean that Toyota would effectively need backing from only 42% of minority shareholders, rather than a majority – to seal its bid.   They asked Toyota's board to clarify how it managed and addressed the potential conflict of interest between Chairman Akio Toyoda's direct investment and other shareholders. The tender offer for Toyota Industries was originally expected to launch in December but it is now likely to begin in February or later, Toyota said this month. It is awaiting regulatory approval in some jurisdictions. (Reporting by David Dolan and Maki Shiraki; Editing by Edwina Gibbs)

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(Reuters) -Toronto Dominion Bank on Thursday named industry veterans Brian Callanan as U.S. general counsel and Andre Ramos as U.S. finance head in the Canadian lender's latest push for a stronger footprint south of the border. The changes, effective December 1, follow TD Bank's record $3 billion U.S. penalty after it pleaded guilty to conspiracy to commit money laundering and related charges, triggering a regulatory cap on its U.S. assets and ongoing compliance remediation. Despite the cap, TD Bank consistently highlights the U.S. as a key growth market. The bank, however, must report to an independent monitor that oversees operations, tracks risk and control improvements, and reports to regulators. Callanan joins TD Bank from Liberty Strategic Capital, where he has held the roles of senior managing director and general counsel. Before that, he was the general counsel of the U.S. Department of the Treasury. Ramos spent over a decade at JPMorgan Chase in business CFO roles, most recently as consumer banking CFO. He has also held senior leadership roles in finance, treasury and pricing at American Express, HSBC and Citi. The bank last month also named another JPMorgan veteran Jon Rasmussen as its U.S. chief compliance officer, as part of a broader rejig of its financial crime and risk management team. "We have an ambitious plan to become a more efficient, profitable and powerful competitor in the U.S.," said Leo Salom, President and CEO of TD Bank U.S. (Reporting by Pritam Biswas in Bengaluru; Editing by Vijay Kishore)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)