The luxury German car manufacturer Daimler plans to develop cars powered by electric to be sold in China, together with the company’s batteries BYD. The Agency notes that this transaction highlights the dependence of the maker of Mercedes-Benz from outside companies through the development of cars with zero emissions of carbon dioxide. The new Union of Germany’s continued “fashion” among European cars producers in recent years dealt with the developers of rechargeable batteries in order to gain market share increasing of low-emission vehicles. Earlier years the Japanese Toyota, Nissan and Mitsubishi Motos, also enter into joint factories with Panasonic, NEC and GS Yuasa Corp, which required them gave rechargeable batteries. The share of BYD on the Hong Kong stock exchange and investment guru Warren Buffett. The company is developing and selling batteries for Finland’s Nokia and U.S. Motorla. The company will provide know-how on building of rechargeable batteries, while Daimler will share experience in development of electric cars
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The Central Bank of China has ordered banks in the country to raise the level of reserves as new rules come into force from today forward CNBC, citing unnamed sources. Thus in practice has entered into force the decision to increased requirements to the level of reserves for which the information leaked last week. The new provision requires that the level of reserves to increase by 0,5 percentage points. Information that currently is not official, says that the requirements imposed on certain financial institutions, which officials say have a risky behavior. Last week Reuters reported that similar requirements are imposed on CITIC Bank, which is the seventh largest bank in the country and the largest lender Industrial and Commercial Bank of China.
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The Chinese oil company PetroChina obtain permission to harvest oil from the Canadian oil sands deposits in the Canadian province Albarta. The price which will give energy company to acquire a 60% share in both deposits is 1.7 billion dollars, police BBC. Both fields have a common saving of 175 billion barrels of oil. The only Saudi Arabia has more deposits of similar type. but the extraction of raw materials of sand is expensive and difficult process, says BBC. Now because of the increasing price of raw material (77% jump from the beginning of 2009) in such investments provide a return on deposits, the agency adds. The deal was great proving the Chinese economy is developing faster and getting second strongest economies of the world. The company is the largest Chinese petroleum companies, operating all over the world.
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Car production in China exceeded 12 million number for the first eleven months of the year. Above this limit are selling cars in the country, which had not happened before. Association of Automobile Manufacturers in China car sales expected to exceed 13 million throughout 2009, the Air Force forward, citing the state news agency Xinhua. So far in China were manufactured 10 million cars a year. Major role in the tremendous growth of the automotive sector in 2009 have played the actions of the Chinese government to encourage consumers and promoting manufacturing plants. The government took measures to support the acquisition of smaller cars, making tax rebates to buyers. Moreover, subsidies were also introduced in replacement of old cars to new. Only in November, according to preliminary data in the country sold 1.35 million cars. With growth of over 50 percent annually boasts the largest producer in China, Shanghai Automotive Industry.
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China should take advantage of the shock waves created by the crisis in Dubai to buy gold and oil. Such is the opinion of a senior Chinese official, who cares for the supervision of some of the biggest companies in the Asian country. According to Syaonan Ji, who is chairman of the supervisory board of large companies in the committee for the supervision and administration of state assets (State-Owned Assets Supervision and Administration Commission – SASAC), purchases may be effected by means of foreign exchange reserves of China, transmit Market Watch. “Although it is unclear to what extent the crisis in Dubai will affect local and global economy, it will continue for some time and this may give China investment opportunity to use part of their reserves to buy gold and oil,” said Syaonan today. The Commission, headed Syaonan which is directly subordinate to the State Council of China and is responsible for management of state companies. Therefore, his opinion may be regarded as a signal that such intentions truly are discussed. Commentary is consistent with China’s overall strategy to increase physical stocks of key raw materials such as gold, copper and other commodities.
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The problem of global climate change will not be solved without the leadership and responsibility in China, “said Swedish Prime Minister Fredrik Reinfeldt as the rotating EU presidency. “We can not solve the climate challenge facing humanity, except for China to take a leadership position and to assume responsibility,” Reinfeldt said of the summit between the EU and China. Rotating EU presidency stressed that global efforts, “not sufficient” and “must do more,”. During a joint press conference, Chinese Premier Wen Jiabao said that China’s promise to slow the growth of greenhouse gases is a significant contribution to global efforts. “China attaches great importance to the forthcoming conference in Copenhagen. I will visit her to represent China, “he said.” China wants to work to focus the conference in the right direction, “added Out, speaking for the expected conference 7-18 December, aimed at achieving a new agreement on climate changes, Darik said.
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China will overtake Japan in economic development and will become the second largest world economy over the next two years. This will give Beijing more influence on the world economic and political scene and will enhance the reputation of the ruling Communist Party in the country, say analysts interviewed by AP. Statistics to be published this week in Beijing will probably show that gross domestic product (GDP) of China grew by an impressive 9.5% yoy in the third quarter. This will further reduce the difference to Japan, which is expected to account most 1 percent GDP growth annually in the third quarter. Economists expected in 2010 or in 2011 China to shift its Asian rivals of the position of second largest economy in the world that Japan held for more than 40 years. Shift in the rankings, however, would be largely symbolic and will have little impact on world trade, according to analysts. In 2008, GDP of the United States amounted to 14.2 trillion. dollars annually, while that of Japan – to 4,9 trillion. dollars. Before the economic crisis to hit China, the country’s economy is growing at double-digit annual growth from 2003 to 2007 to reach a value of GDP of 4,3 trillion. dollars in 2008, according to the World Bank.
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The biggest company in the world of creating and producing of processors Intel has announced that during the third quarter reached profit of 1.9 billion dollars or 33 cents a share. The data are weaker than the same period last year, when the positive financial result was $ 2 billion or 35 cents a share, but exceeded analysts’ forecasts. Experts expect the profit to be 28 cents a share. The company’s revenues fell to 9.4 billion dollars of 10.2 for the corresponding period last year, analysts expect was reduced to the more up to 9 billion USD. On the current quarter from Intel said it expected revenue of 10.1 billion dollars, which is more than the experts, which was 9.5 billion dollars.
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The policy of economic stimulation that the Chinese government has taken can lead to overheating of some sectors because local authorities are scrambling to absorb the funds, according to Ku Hongbin, chief China economist at HSBC Holdings Plc in Hong Kong. District Councils in China held a serious amount of investment plans this year and together with the growth of bank loans to finance construction of these measures can lead to overheating of some sectors and rising commodity prices, said Ku. “Test for Government will be how to solve the problem of imbalances in the economy,” said the financier added. The total amount of financial incentives are 4 trillion. Chinese yuan (586 billion), which were adopted in order to remove the economy from the strongest disturbance for the past decade. The funds are intended for construction of airports, power lines, roads and affordable housing, such measures are accompanied by increased access of citizens to credit.
Factory production in China climbed to a record annual basis in August, while retail sales went up most in the last 12 months. Only housing planned investments are 10 trillion. yuan as housing prices in 70 Chinese cities in August rose most rapidly for the past 11 months of growth in sales and construction, which in turn raise concerns about the emergence of “bubble” in the market. Agency otbelyazava that this year inflation has decreased 7 consecutive months.
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Despite his criticism to the U.S. dollar, China is still eager to absorb American government bonds. This actually made for other foreign and U.S. investors, who expect low inflation even if the depreciation of the dollar. Since the beginning of the year, foreign investors have swallowed 43.1 per cent of those issued by U.S. government bonds worth 1.41 trillion. dollars. For comparison, last year foreigners lost 27.1 percent of emissions, which were up 527 billion dollars. Currently 15 percent retreat dollar index against the tip of 4 March does not disturb the auction, organized by the Treasury of the United States, transmit Bloomberg. This indicates that the fund-managers are confident in the soundness of the dollar, as inflation expectations remain fairly low despite the high money supply. Since the beginning of the year the position of China in U.S. government bonds has risen by 10 percent and now exceeds 800 billion dollars. Only in July did the country has made purchases worth 24.1 billion dollars.
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