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Nissan and Honda shares rise as report says automakers may call off merger talks

1. Honda and Nissan consider halting merger talks due to disagreements. 2. Honda's proposal to make Nissan a subsidiary faced opposition. 3. Nissan's shares rose up to 7.4%, while Honda's climbed 4.2%. 4. Analysts warn long-term uncertainty remains for both automakers. 5. Nissan faces significant operational challenges including job cuts and profit declines.

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FAQ

Why Neutral?

While the share price increase indicates reduced uncertainty, the underlying issues persist.

How important is it?

The merger discussions and their termination could impact Honda's strategic positioning.

Why Short Term?

Immediate market reaction to merger news may not sustain in the long term.

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