Daily News |

The number of vehicles in China would exceed 200 million in 2020, reported Monday's China Securities Journal, citing a government official.

This sharp increase in the number of cars in circulation may pose problems for the environment and energy security, said Sunday Fuchang Wang, Vice-Minister in the Ministry of Industry and Information Technology at an automotive conference.

The Chinese automotive market is one of the mainstays in the global automotive industry is still recovering from the slowdown experienced last year.

Sales have shown signs of slowing from the start of the second quarter but rebounded sharply in August, thanks to government subsidies for the purchase of clean vehicles.

The German inflation accelerated as expected in July, as estimated by the Federal Office of Statistics, harbinger of higher prices across the euro area.

Inflation has emerged at 1.1% yoy against 0.9% in June, an acceleration due in large part to rising fuel prices and fruit and vegetables, said the Office.

Economists polled by Reuters had forecast an average price increase of 1.1% over one year.

On a monthly basis, the national index of consumer prices was up 0.2% in July, against 0.1% in June

Calculated the European harmonized standards (HICP), inflation German spring up 0.3% in July and 1.2% over one year.

The first estimate of inflation over the past month is calculated on the basis of published data from six Länder. Final figures will be released August 10.

The French consumer sentiment has stabilized at a low level in July after five months of degradation, according to the monthly survey of consumer confidence survey released Thursday by the INSEE.

The summary indicator of households' opinion on the economic situation remained unchanged at -39, its lowest level since May 2009.Seventeen economists polled by Reuters on average expected a further deterioration to -40.

The survey, conducted at the time of the announcement of the proposed pension reform and measures to reduce public deficits, shows that concerns about the future national fade a bit while still fears about the labor market.

"The impact of pension reform was probably fully integrated in the June survey," Judge Dominique Barbet, economist at BNP Paribas.

The index had dropped one point to -39 in June fell to their lowest level since May 2009, bringing to nine points to fall since the beginning of the year.

CONCERNS ON UNEMPLOYMENT

In July, households' opinion on their past personal financial situation has lost two points, with a balance cons -26 to -28 in June

Their opinion about their personal financial future (-20) remained stable, as well as their views on the advisability of making major purchases (-24).

However, the outlook for living standards in France, in decline since the beginning of the year, edged with a net increase of two points

-52.

The households' opinion on the level of past life in France remained stable at a very low level, with the balance to -71 compared to an average of -40 from the inception of the survey in January 1987.

Among the balances do not count in calculating the summary indicator, that the prospects of unemployment has stabilized at a high level (69), reflecting concerns still alive.

This balance, said Insee, was increased from eight to 89 points between January 2008 and June 2009 and then fell until October. He has since remained around 65 points, well above its long-term average is 33.

The balance measures the opportunity to spare jumped eight points to 19 in July, near its historical average (20), but opinion on the ability to save has the same time lost three points to -14.

Officers at INSEE interviewed approximately 2,000 households from June 29 to July 19.The survey did not take place in August, the next issue will be published in late September.

Alstom reported a sharp drop in orders received during the first quarter of the year, major projects that are difficult to find in the electrical field, but its sales came out slightly beyond expectations over the period.

The specialist in energy infrastructure and transportation have made the April-June quarter sales of 4.74 billion euros, down 1% from one year to another as reported and down 5 % as organic.

The nine analysts polled by Reuters expected the drafting of an average AC4.67 billion.

"The turnover (the division) Transportation progresses, while the (Energy Division) Power began, as expected, lower following a sharp drop in orders during the last year," said CEO of Alstom, Patrick Kron, in a statement.

If he observes a good place new orders for medium and small sizes on the three "major projects are difficult to reach because (…) customers continue to shift their investments in new power stations," Has added.

Orders received by Alstom have dropped by 36% to 3.07 billion euros in the first quarter on a reported basis and 38% as organic.

The group added that its backlog was still unchanged at 42 billion euros at June 30, thanks to a positive currency effect of 1.3 billion euros and represented 27 months of turnover business.

It also confirmed its forecast for an operating margin of between 7 and 8% for the year 2010/2011 and the next one, "based on a performance contract and a gradual recovery in demand. "

The action Alstom closed Monday at 36.85 euros, giving a market capitalization of nearly 11 billion euros. Since the beginning of the year, the stock has lost about 25% of its value, after a gain of nearly 17% throughout 2009.

Citigroup reported Friday a net profit of 2.7 billion dollars for the second quarter, down 37% year on year, due to lower revenue in the banking business.

Per diluted share, net income stood at 9 cents.

In the second quarter of 2009, net income was set at 4.28 billion dollars or 49 cents per share.

Analysts on average expected a profit of 5 cents per share excluding exceptional items for the second quarter, according to Reuters Estimates.It is not known if the EPS of 9 cents can be compared to the consensus of 5 cents.

The bank, which the U.S. government is a shareholder, said its credit losses are down for the fourth consecutive quarter.

In pre-market value fell by 2.2% to 4.07 dollars.

The Paris Bourse falls even slightly up in early trading Wednesday, after six sessions of consecutive increase, buoyed by better than expected results from Intel in a market trough for a public holiday.

The better than expected start to the season results should stimulate the market this morning, pending the release of retail sales in June in the United States at 14:30.

Around 9:25, the CAC 40 index posted a gain of 0.21% to 3645.29 points, after taking 1.96% yesterday.

Technology stocks are leading the gains, including the semiconductor sector, with a gain of 2.9% from STMicroelectronics, the largest increase in ACC, and 5.2% of Soitec, the largest increase DTH.

Computer services such as Cap Gemini (+2.3%), Steria (+1.7%) and Altran (+1.4%) also benefit from the optimism that followed the results of Intel, and that Alcatel-Lucent, which is 1.6%.

Other major European markets are slightly higher: 0.16% ahead of London and Frankfurt 0.5%. As for the European indices, the EuroStoxx 50 wins 0.3% and 0.23% Eurofirst 300.

The euro is maintained around 1.27 dollars while U.S. light crude was steady at 77.13 dollars a barrel.

The European Commission approves acquisition of Volvo by Ford Motor by Chinese carmaker Geely Holding Group and the group of public investment Daqing.

The European Commission said in a statement that after investigation the transaction does not have significant problems of competition.

The main indices of world stock markets should end the year at a level higher than that which is theirs now, but fears of slowing economic recovery could limit their gains in some developed countries, shows a Reuters poll.

Contrary to the previous Reuters poll predicted, most financial markets should finish the first half down.

According to the median estimates of over 300 policy makers, the second half of the year should be more favorable, while the 12-month forecasts show that places emerging markets are expected to record growing faster than that generated on Scholarships developed countries.

However, investors surveyed expect a slowdown in economic activity in coming months because of the debt crisis of the euro area that has weighed on markets in the second quarter, which remains unresolved, and austerity measures in many countries belonging to the 20 largest economies (G20).

"The risks of a crisis within the euro area remains high," warns Philip Gijsels addition of BNP Paribas Fortis Global Markets."The global economy will slow in the second half, the big question is how much."

STRENGTH OF QUARTERLY RESULTS AND RATE DOWN

However, investors believe that most world stock markets should finish the year on strong gains compared to their levels of late last year.

The Dow Jones U.S. Index and S & P 500 are expected to register increases of 11.7% and 12.6% by the end of the year, while that on June 23 they had lost 1.24% and 2 , 07% since the beginning of 2010.

In France, the CAC 40 should finish the year at 4,000 points, 3,939 points against the end of last year and 3642 points at the close Wednesday.

The quarterly results ahead of listed companies in Europe and the U.S. should be the key to recovery of markets in the second half of the year, said the investors interviewed for the survey.

Expectations of continued very low levels of interest rates by major central banks on the international balance of the year accentuate investor optimism about changing exchanges.

In this case, the European Central Bank (ECB) and Bank of England (BoE) should not increase their rates until 2011, while the Federal Reserve said it would maintain its rates at a record low for a prolonged period.

EMERGING MARKETS POSSESSING THE LIGHT

The financial centers of the largest emerging markets like Brazil, China and Russia, have experienced a turbulent start to the year, like the Shanghai Stock Exchange has lost 21.7% of its value since January .

However, strategists expect that the situation improved and anticipate an erase losses earlier this year on the second half of the year.

Investors are even predicting that emerging markets perform better than the developed countries within the first half of 2011.

The benchmark Hang Seng Stock Exchange of Hong Kong, the Russian RTS and the Brazilian Bovespa should also earn more than 20% over the next twelve months, while the BSE Sensex index India could win over 18% the same time.

"The market remains very liquid, and the rates are at historically low," said Francis Kwok Bright Smart Group.

Emerging markets are not expected to be the only ones to show a strong performance by the end of the first half of 2011, as the Australian index flagship A & P / ASX 200 and that of the Milan Stock Exchange should jump 22.8% respectively and 18.1% YoY.

"There is always a cloud associated with sovereign debt problems of Europe, which is still in my view, a significant risk to the future in terms of confidence," warns George Clapham Arnhem Investment Management.

"But in terms of recovery, at present, the market is very, very attractive," he adds.

The German car market shrank in April for the fifth consecutive month, falling 32% on a year which remains linked to the ruling of the scrappage scheme in the country.

Adjusted data the number of working days, the new car registrations fell by 10.2% compared to April 2008 before the entry into force of the support plan for the sector.

In the first four months of this year, new car sales in Germany fell 25%, show figures released Tuesday by the federation VDIK foreign carmakers.

"Initial estimates show that new orders for our members are at the same level as in April 2008, what I consider to be the first sign of spring in the car in Germany," said Volker Lange, President the VDIK, in a statement.

The budget of five billion euros allocated by Berlin to scrap bonus was exhausted from last September, causing a drop in orders weighing gradually on registrations in the months that followed.

Germany, Europe's biggest car market, is not the only country affected by this phenomenon: in France, registrations have slowed significantly in April, displaying only a 1.9% increase over one year , against 17.9% in March.

In the U.S., sales of new cars rose by about 20% last month compared to April 2009.