Wednesday, October 14, 2009

Sales of new cars in China exceeded 1 million monthly

Monthly sales of new cars in China for the first time surpassed 1 million units in September. The number of cars sold is estimated at 1.015 million, making China the fastest growing automobile market in the world this year. Increase compared to the same month last year was 84 percent, cited by Bloomberg. The data of China Association of Automobile Manufacturers show that total sales of motor vehicles including freight trucks and buses, rose by 78% yoy in September to 1.33 million units. Sales of General Motors, which is the largest foreign carmaker in the country doubled in the last 12 months or more amounted to 181 thousand cars in September. During the first nine months of the year sold 1.29 million cars to GM, which is more than a sales company in China in 2008 for all. According to the CEO of General Motors' Fritz Henderson sales in China will continue to grow with significant pace, particularly after the restoration of the Chinese economy increased demand. However, this can cause the government to restrict or entirely stop its measures to promote sales of new cars, including tax breaks and subsidies for the automotive industry. During this year the authorities have reduced taxes for buying a new car and granted subsidies to stimulate sales in rural areas of China. The credit boom in China and government spending to combat the effects of the crisis of 4 trillion. Chinese yuan (586 billion U.S. dollars) helped the Chinese economy to grow by 7.9 percent annually during the second quarter. According to government sales of motor vehicles may increase by 28% this year to 12 million units, but car companies must be careful not to accumulate excess reserves until it becomes clear that growth is sustainable in the long term. For the first nine months of the year vehicle sales in China increased by 42% yoy to 7,2 million units. Meanwhile, car sales in the U.S. declined by 27 percent annually to 7.8 million vehicles.

Sales of Johnson & Johnson reduced, but profit recorded a slight growth

The Largest U.S. company to produce consumer goods and medical products Johnson & Johnson has increased its profit by 1.1% yoy in the third quarter thanks to cost cuts and increased sales of medical devices. The net profit of Johnson & Johnson for the period from July to September amounted to 3.35 billion dollars or 1.20 dollars per share, compared to the positive financial result of 3.31 billion dollars or 1.17 dollars per share for same quarter of 2008, cited by Bloomberg. Sales of New Jersey-based company fell by 5.3 percent annually to 15.1 billion dollars. Economists had expected to Johnson & Johnson reported earnings per share of 1.13 cents and sales of 15.2 billion dollars in the third quarter. In April, the leadership of Johnson & Johnson said it would cut 900 jobs at its pharmaceuticals unit after the drug sales fell 14 percent due to cheaper alternatives offered by competitors. For the fiscal 2009 the company expects earnings per share from 4.54 to 4.59 dollars, which is higher than previous estimates. Shares of Johnson & Johnson became cheaper by 2.4 percent to 61.05 dollars per share at the beginning of today's session of the New York Stock Exchange. Since the beginning of this year, the company's market capitalization has risen by 2 percent to 168.2 billion dollars. Johnson & Johnson is a component of one of the oldest stock index Dow Jones IA since 1997, making it among the 30 largest and liquid companies traded on the New York Stock Exchange.

First street protest of Bundesbank

Employees of the German Central Bank - Bundesbank, in Frankfurt today participated in the first street protest in the history of the bank caused by plans to shut nearly half of its branches, officials said. Last month by the Bundesbank announced that they intend to close 14 of its 47 branches by 2012 and another 9 by 2015 plans affect cities like Dresden, Bremen and Aachen is expected close to 300 jobs and transfer other 500 employees . Final decision on the bank will take in December. In June in Frankfurt came a street protest employees other central banks - the European. Moreover Bundesbank was shaken by another scandal. Today a member of the board of directors of the bank - Tilon Saracens, was relieved of some of its key responsibilities because of his controversial comments regarding Arabs and Turks living in Berlin. 64-year-old Saracen is quoted as stating to the magazine Lettre International, that Muslims living in Berlin at the back of the state. He also called for measures to curb immigration. According to him, a large number of Arabs and Turks in the German capital "are not production functions than to sell fruit and vegetables. By Saracen Bundesbank decided to no longer be responsible for the money in circulation. Thus it remains only charged with the responsibility for information technology and risk control in the bank. Against Saracen are indicted in Berlin, including incitement to racial hatred. He apologized for the comments, but ignored demands to resign.

Initiated proceedings against two former managers of Bear Stearns

In New York opened a case against two former managers at investment bank Bear Stearns on charges of fraud. Ralph Kiofi and Matthew Tannin, managed two hedge funds went bankrupt in June 2007 may receive sentences of 20 years in prison if found guilty. Both deny charges that they knew about the problems of funds, but failed to inform investors that have lost 1,4 billion dollars. Kiofi and tannins are among the top managers of financial institutions facing the court from the beginning of the crisis. Failure of both the fund was among the first signs of problems in the mortgage market, recalls the Air Force. Kiofi there against charges of abuse of inside information, which he also denies. Among the "weapons" against him are the two emails. In a letter to Tania, sent in March 2007, Kiofi writes that fears of more losses from bad mortgage market, than people have imagined. According to the documents the prosecution both have consistently maintained over the more senior management of Bear Stearns, the funds that are in good shape and can continue his successful work. Failure of two hedge fund itself preceded that of Bear Stearns in 2008 Later the bank was bought by JP Morgan. Kiofi names of Ralph and Matthew Tannin were included at the beginning of this year's analysis leads to the names of about 25 people a significant role in the crisis.

IMF reminded to Bucharest to follow the rules

The International Monetary Fund (IMF) expects Romania to its commitments undertaken through external funding, regardless of who will form the government, said the regional representative for Tony Lübbecke Fund, quoted by newspaper "Ziua" after the Romanian government fell yesterday after a successful vote of distrust. This political instability affects the achievement of the objectives that Romania has set itself with the signing of an agreement with the IMF and the European Commission, especially in terms of structural reforms, the newspaper notes, quoted by BTA. Romanian center-right government of Prime Minister Emil Bock was deposed yesterday after parliament adopted a paid opposition censure. This happened weeks before presidential elections scheduled for 22 November. Total of 258 MPs and senators backed a no-confidence votes, but 176 voted against. For the first time since 1990 the Romanian government fell from power after a vote of no confidence. We remind the country of spring of this year signed agreements the international funding of EUR 20 billion. In late September, it became clear that the country will receive the second tranche of Zeman to the IMF amounted to 1.85 billion euros

Wednesday, September 9, 2009

Kraft to attempt to buy Cadbury to 10.2 billion GBP

The U.S. company Kraft has made a bid to acquire British food manufacturer Cadbury products for 10.2 billion pounds. One of the conditions the proposal is to preserve the jobs of the island, including maintenance of plant, purposely closing. The Board of Directors of Cadbury, however, refused the proposal and at present there is no deal, reports BBC. The proposal included Kraft e of 7.45 liras a share, as it should for each share of Cadbury to be paid to 3 liras cash plus 0.2589 shares of the capital of Kraft. Such a price is 42 percent higher than the close of July 3, calculated by the Market Watch. Kraft intentions were to build on already approved products and brands of Cadbury, including over perhaps the most famous product of the company - a series of chocolate Dairy Milk. In this way, you can create a "global leader in the manufacture of snacks, sweets and fast food products. Among the other famous brands of Cadbury chocolates are Green & Black's, pastille Halls, Dentyne and Trident chewing gum, etc.

United States with nearly 70 percent share of arms sales worldwide in 2008

United States accounted for more than two-thirds of arms sales worldwide last year, a survey of Congress, quoted by the New York Times. According to the U.S. study were involved in 68.4 percent of global arms sales in 2008 of U.S. arms sales rose nearly 50 percent annually to 37.8 billion dollars to 25.4 billion dollars in previous 2007 - despite the global economic recession. In this arms trade globally has decreased by 7,6 percent to 55.2 billion dollars - its lowest level since 2005. Italy, which ranks second, has sold weapons to the total amount of 3,7 billion dollars. Russia was third with sales of 3,5 billion dollars - a drastic decline in transactions compared to 10.8 billion dollars, which was concluded in 2007. The study explains the increase in U.S. sales of new large orders from customers in the Middle East and Asia, and with permanent contracts for equipment and maintenance with American customers.