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.

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.

Life insurance policies may be the next hit on Wall Street

Once the business with mortgage-backed securities collapsed last year, investment banks on Wall Street began to actively seek another revolutionary way of making money. And it seems to have found in life insurance policies. Bankers plan to buy life insurance policies to elderly and ill people sell for cash. Thus, the investor buys life insurance policies from its owner for an amount less than its nominal value. Example, investment bankers can buy a life insurance policy with a face value of $ 1 million against 400 thousand dollars from its owner. The purchase price will depend on the health of the person and the expected duration of his life. Then will the investment banks securitized these policies, which in other words means that hundreds or thousands of policyholders will be completed together in bonds. Thereafter, the bonds will be sold to large pension funds and other investors. The ultimate purchaser of the bonds secured by life insurance policies will benefit from the difference between purchase price and face value of bills to be paid by life assurance company when the insured persons die. The sooner the insured person dies, the greater will be the return on investment, says New York Times. But in the case that people are living longer than expected, then investors may receive very little profit or even lose money. Both bankers will be a plus because it will benefit from the fees for establishing a bond of their subsequent resale and trading with them. But experts warn the life that these instruments can richer policy premiums. The idea of creating such bonds is still at the planning stage. However, the phones of credit risk agencies that assess the risk of these securities and examine proposals on securitization of other investment banks already overheated by the queries.

Trichet: The economy has stabilized, the prospects are better than expected

Stabilize the world economy and economic prospects are better than expected earlier, said the President of the European Central Bank Jean-Claude Trichet, speaking on behalf of the leaders of the ten largest central banks in the world. It is now known that many forecasts were revised slightly upward, which indicates that we probably came from the period of free fall marked the last quarter of last year and the first of this, "said Trichet, cited by AFP. However, "it is not excluded road ahead is bumpy," Trichet has stressed, adding that "of course, vigilance remains vital. Trichet met in the Swiss city of Basel with his counterparts from the major central banks in the world.

G-20 and a takeover bid for Cadbury's shares rose in Europe

European stocks rose for the third consecutive day, after it became clear that the leaders of the G-20 have agreed on actions to restore the global financial system, police Bloomberg. Shares in British food products manufacturer Cadbury Plc jumped 38 per cent after the company rejected a takeover bid worth 10.2 billion pounds of Kraft Foods Inc. Analysts say Kraft's offer may protracted competitive proposals from Nestle and other companies in the sector. By 5,9 per cent shares of appreciated even Lonmin Plc, again because of speculation about the acquisition. According to the Observer newspaper of Xstrata CEO Mick Davis has asked JPMorgan Chase & Co. and Deutsche Bank to explore a possible bid for Lonmin. The company declined comment. Pan-European index Dow Jones Stoxx 600 added 1.4 percent to 237.20 points as all 19 industry groups included in it, reported growth. The market is supported by the recovery started in mergers and acquisitions, analysts comment. G-20 over the weekend reached agreement on draft regulations designed to prevent future similar scale financial crisis. At the same time it became clear that investor confidence in the eurozone rose for the second consecutive month in September. Positive news came and factory orders in Germany. Major national indexes rose in all 18 western European markets. German DAX added 1.5 percent to 5463.51 points, with so grown and France's CAC 40. The UK's FTSE 100 advanced by 1,7 per cent to 4933.18 points.

Women in the British financial firms with 80% less in bonuses than men

Women in some leading UK financial companies earn about 80 percent less bonuses and other remuneration linked to their performance than their male colleagues, Reuters reported, citing a study by the Commission for Equality and Human Rights. The inquiry, which is includes the 50 financial firms on the island, shows that women in their win 2875 pounds per year from royalties related to their performance at work, compared to 14 550 pounds for men. In the base salary of men and women was there any difference from 39 percent in favor of men, which increased to 47 percent if you add bonuses and other allowances. By the Committee indicate that the financial sector as a whole, this one of the biggest differences in pay between men and women in Britain. Interviewed women who employed a full-time in the financial sector have a 55 per cent less of gross annual salary of men to a difference of 28 percent for the economy as a whole. According to the Bankers Association of the UK biggest difference in pay between men and women in the financial sector due to the choice of lifestyle by women. They choose jobs financial sectors, which traditionally are not given big bonuses. "Women often make different choices about the balance between work and personal life. In the financial sector employs a lot of young people and this may also have an effect on wages, since they are of age, when more women than men, take care their children at home, "the association added.

Hungary receives six months more access to loans from the IMF

Hungary has implemented the terms of the loan from the International Monetary Fund and the European Union and has negotiated with the Fund to extend access to current loan for six months - until October 2010. This was announced by Hungarian Finance Minister Peter Osko, said. In a separate release of the fund states that the extension of the current financial package aims to cover the period of elections in Hungary next year. IMF and EU grant to Hungary loan of 25.1 billion dollars in October last year.

Ukraine prohibits loans in foreign currency

National Bank of Ukraine has decided to ban credit in foreign currency from commercial banks in the country as citizens' and companies writes the Ukrainian edition of Kommersant on information from bankers. The decision has not yet been officially announced, nor specify the date from which will come into force. According to preliminary information, this will happen "soon", probably as a "transition period" during which will be possible for some forms of lending in foreign currency. The ban on foreign currency lending in the National Bank of Ukraine aims to stop the devaluation of national currency bracelet, which from the beginning of the crisis has devalued by about 60%. Since late last year the National Bank seeks to make unprofitable loans in foreign currency for the citizens, take measures for their overvaluation. Since June the companies can receive credits in foreign currency only if they have income in foreign currency. Overall, banks are not against the ban on lending in foreign currency, but predict that they will become unprofitable deposits in foreign currency, which at present they are actively attracted. In August, there is even a slight decline in deposits in the bracelets from the previous month, while growth is recorded by a few percent of deposits in foreign currency as citizens and companies that have reached a total of 13.32 billion dollars. To stop the inflow of foreign currency deposits, banks will be forced to significantly reduce the interest thereon. According to bankers the new rules will result in moving the accounts in other countries like Switzerland or the Republic.

UN urged to change U.S. dollars with a new reserve currency

The role of the dollar in international trade should be reduced by creating a new currency, says UN report cited by Bloomberg. Countries of the UN should agree to create a global reserve bank to let the currency in circulation and to control the national exchange rates in the countries of the organization, regarded by the United Nations Conference on Trade and Development. China, India, Brazil and Russia called earlier this year to replace the dollar as the main reserve currency after the global financial crisis broke by the collapse of the U.S. mortgage market. Now, however, is the first time that a major international organization offers exchange for dollars. Unlike the Chinese authorities, however, the UN does not believe that the special drawing rights (SDRs) issued by the International Monetary Fund, are sufficient to help emerging markets that need liquidity. Emerging markets are under-represented in the IMF and thus receive a smaller share of the total issued SDRs. It should therefore be established an organization to manage the real exchange rates between countries based on purchasing power and adjusted for inflation and the level of development of the country considered by the UN.

Gold samples the level of 1 000 dollars

Gold price beyond borders of 1 000 dollars an ounce earlier this morning. This happens for the first time since February and is due before the retreat of the dollar in recent times. The dollar retreated sharply, with only between 8:00 to 9:30 local time on its value fell against the euro from 1.4335 to 1,4380 EUR / USD. For the same period, gold advanced to 997.06 from 1 003 dollars an ounce. Pressure on the dollar had spread to a UN report in which the organization first spoke in support of the search for a new reserve currency. For this purpose, the countries of the United Nations should agree to create a global reserve bank to let the currency in circulation and to control the national exchange rates in the countries of the organization, regarded by the United Nations Conference on Trade and Development. Negative for the dollar also proved that the United States yesterday was a holiday and no trading session took place. In the absence of any significant new gold and the dollar managed to remain stable, but until this morning when registered jerky movements. At present it is the most active futures trading of gold for delivery in December. Contracts reached 1 004.80 dollars per ounce during the electronic trading platform Globex, transmit Market Watch.

Finland's economy has contracted by 9.4 per cent in second quarter

The gross domestic product of Finland has shrunk by 9.4 percent annually for the period April-June, said the Helsinki Times, citing official statistics. Quarterly country's economy has contracted by 2,6 per cent. Slowdown in the first quarter was revised to 3% from earlier announced 2.7 per cent. On an annual basis in the first quarter was reported decline of 7.6 percent. For the second quarter, economists are expecting a smaller decline in GDP of 7.3 percent. Yesterday it became clear that the Cyprus economy has contracted at 0,4 percent quarterly decrease of 0,6 compared to per cent for the first quarter. Annual GDP of Cyprus has shrunk by 1,1 per cent after the first quarter was reported growth of 0,9 percent.

Maldives prepare "green" tax on all tourists - at $ 3 per day

Maldives plan to introduce a new environmental tax for all tourists who stay in their resorts. Known mostly to luxurious hotels and white sand atolls, the Maldives have always struggled against because of climate change projections that rising sea levels will devour most of the islands in 2100 until last year the government even announced that it will begin to allocate funds for the purchase of new land for the country if the global warming island country disappear under the waters of the Indian Ocean. Over a quarter of the local economy, which has a total value of 850 million dollars comes from tourists, but so far no such environmental taxes. President Mohammed Nashid, which in March submitted plans for the conversion of the Maldives in the first state with zero carbon emissions in the world within a decade, announced that it will soon be introduced environmental tax for all tourists. "Putting green tax is already working on it. Question of parliamentary approval is what I hope to receive - comes to $ 3 per day for each tourist, "explains Nashid told reporters in the capital Male in the archipelago, said. With an average 700 thousand tourists a year who spend an average of three days on the islands, it's around 6.3 million dollars annually.
Nashid in March launched an initiative worth 1,1 billion dollars, which aims to move all the islands of renewable energy and buying carbon credits and secured from the EU to offset emissions from tourists who fly to the islands. The Government recognizes the need for external financing of investment for these plans and travel Nashid the negotiations for the UN climate change meeting in Copenhagen in December. Last month, the president's office said he would not attend the talks because of the budget crisis that forced the country to seek a loan of 60 million dollars from the International Monetary Fund. Nashid said that there are still no plans to attend the talks, "unless someone is not very generous help. I hope someone would do it. " According to him, the Maldives have little influence, but a large bet on the outcome of talks in Copenhagen, which aim to create a successor to the Kyoto Protocol. "The Maldives does not make sense to enter into the Agreement. This is a small country. It is about India, China, Brazil, U.S. to participate. Nobody will win, if no agreement is reached, "he said.

China is entering an increasingly bold on the market of passenger aircrafts

Chinese aviation company, presented the design of its biggest passenger plane, which will have 190 seats. It is called the C919 and will be subjected to a test flight in 2014 If successful mass production and sale of C919 will begin in 2016. The country has become the second largest and fastest-growing market for passenger aircraft in the world. Studies suggest that demand for new planes from Chinese airlines will increase five times over the next 20 years, which means orders of more than 2 thousand aircraft. It is from this major niche market would benefit future producers of the biggest Chinese passenger plane - the airline Comac. It is a subdivision of the state corporation Aviation Industry Corporation of China, sent BBC. The management of Comac hopes to put the new plane parameters for the overall modernization of the aviation industry in China, which so far has mostly emphasized the development of military, rather than passenger aircraft. In November last year, China held the first successful test flights of the whole country works in the airliner ARJ-21. His producer Comac received 208 confirmed orders and unconfirmed for 90-seat aircraft so far. Comac of communication is another step towards achieving long-term goal of China to produce more goods for their domestic market. Thus, Chinese companies and the economy as a whole does not depend so much on consumption in the world. The market for passenger aircraft in China is the focus of Europe's Airbus and U.S. firm Boeing. Became the first Airbus aircraft producer in the world to build its factory in China, and recently delivered the first aircraft, which is entirely manufactured in Asian countries.