Largest car company in the world, Toyota has found a defect in the brake pedal to accelerate to around 1,8 million of its cars in Europe, cited by New York Times. The Japanese company will withdraw the problematic vehicles over the next few months from market. A similar problem was found with models of Toyota in the U.S. and China, the total number of affected cars is outnumbered 9 million. Among the models in Europe, where defects are established, enter Yaris, Corolla and RAV4. Yesterday it became clear that Toyota will withdraw from the sale even 1,1 million cars in the U.S. and will stop production of eight popular models in the U.S. market in the U.S. and Canada. Previously, the management of Toyota said that 2,3 million vehicles in the U.S. have a problem with the pedal to accelerate. Another 5 million cars have a manufacturing defect resulting in the accelerator can be blocked.
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Unemployment in the euro area rose to its highest value of establishing a monetary union in January 1999, says statistics from Eurostat. The indicator for September increased by 0.1 percentage points to 9.7%, as were the expectations of analysts. A year ago, unemployment was 7.7%. Across the European Union level indicator has also increased by 0.1% to 9.2%, a record since 2000 when the statistical office has begun to report aggregated data. The number of unemployed is the EU grew by 286 per month to 22.123 thousand million euro only people without permanent employment for 15.324 million, as compared to August the number rose by 184 thousand
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Volkswagen has announced that sales for September, and globally have increased by 11.9% over the same month last up to 615 thousand cars. As best present in the home markets of Germany and China, where in September were first sold more than 1 million cars per month. The company announced that next month plans to hold a meeting of shareholders to seek approval to issue 135 million new preferred shares to the value 10 billion as part of taking over Germany’s group for production of luxury cars, Porsche. Under the deal with Porsche Volkswagen will pay 3.3 billion euros for 42-percent stake in the manufacturer of sports cars.
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The European stocks today reported the strongest decline in a week following the unexpected drop in investor confidence in Germany. Shares in Barclays fell by 3,4 percent after analyst Meredith Whitney lowered its assessment of Goldman Sachs Group to “neutral” and spoke favorably about the banking sector. Total banking sector represented in the index Dow Jones Stoxx 600 fell with 1,3 per cent. Dow Jones Stoxx 600 fell 1% to 241.94 points as all 19 industry groups in the pan-European index retreated. Analysts commented that, once achieved, high levels of the indexes, any disappointing economic statistics could upset the market. Investors will look for signs of recovery in sales data in corporate reports. The CEO of Deutsche Bank Josef Ackermann told a news conference yesterday that the global financial industry and the economy remained “fragile” because of the risk of corporate bankruptcies and rising unemployment.
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The Bankruptcy in practice banks and financial institutions and consumer debt will be a strong brake to the U.S. economic recovery. That said billionaire and founder of the foundation Open Society Institute George Soros. The Economic recovery will be very slow, “said renowned investor who participated in the meeting of the International Monetary Fund and World Bank in Istanbul. Banks in the U.S. quasi lost 1.1 trillion. dollars since the financial crisis began in late 2007. Soros’ expectations are that Europe will achieve faster economic growth, which opinion differs with that of the IMF. Last week, the fund said growth in the U.S. will be 1.5 percent for 2010 while the euro area – five times less. Severe recession even more easily pass through Europe, the ECB can be more quickly completed with the policy of stimulating than the Fed added the economist, even as the U.S. is too early to speak.
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Gazprom may ask users in Europe to pay fines because of reduced consumption during the year. According to the rule enshrined in the treaties “take or pay”, the countries which receive gas from Russia, may be penalized if their consumption falls below agreed levels. Industrial demand for natural gas in Europe has fallen sharply because of economic crisis. The overall decline, including in Bulgaria, nearly 30 percent. According to Russian Economic edition of Kommersant, Gazprom may seek penalties of European consumers totaling 2.8 billion dollars, BNR. The penalty is enshrined in the treaties that govern what amounts previously natural gas wants to buy each country. When the difference between stated and actual consumption, the Russian gas monopoly has the right to impose fines. According to Kommersant, all European companies are against the payment of penalties, while motivated by concessions to Russia to Ukraine and Turkmenistan. At the beginning of this month, Vladimir Putin and Yulia Timoshenko Kiev agreed to pay only the actual consumption, and Russia get away with penalties after suddenly reduced by 90 percent purchases of Turkmen gas.
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Most stocks traded on major European stock markets tumbled on Friday, the first reduction in four sessions. Pan-European index Dow Jones Stoxx 600 lost 0.48 percent of its value, lowering to a level of 244.92 points. However, the indicator is above 55% recorded in March of bottoms. At regional level, the French CAC 40 fell 0.19 percent, while the German DAX was down by 0.48 per cent. In contrast, the British FTSE 100 managed to record a new increase and grew by 0.17 percent. Among decreasing positions during today’s session ran out of the car companies shares, as investors apparently remain dissatisfied with the displaying of the Motor Show in Frankfurt. Renault’s shares fell by 3.5 percent, while those of Volkswagen fell 6.4 percent.
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Europe slowly emerging from the crisis, but there is no reason to jump for joy, summarizes in its regular report on economic situation and prospects of Europe’s European business (BUSINESSEUROPE), in which a member of BIA. According to the authors of the “rough road to recovery ‘most recent data and indicators suggest that economic activity in the EU has stabilized, a recession is coming to an end. BUSINESSEUROPE But analysts warn that have not yet seen the conditions for sustainable growth. EU real GDP is expected to shrink by 3.9% this year, before growing by 0.7% in 2010. Long-term consequences of the crisis ACE expect especially in terms of investment, employment and public finances. Against the backdrop of rising unemployment, inflation in the eurozone remains low, averaging 0.3 percent this year and expected to be about 1.3 percent in 2010
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The business and consumer confidence in 16 states of the Eurozone is better for 5th consecutive month. Notes strong upswing in activity in the services sector. Business and consumer confidence in 16 states of the Eurozone is better for 5th consecutive month. Notes strong upswing in activity in the services sector. Business climate index for the Eurozone rose in August to -2.21 points for the rising expectations of -2.48 to -2.71 points after points in July. The index of consumer confidence in the Eurozone in August rose to -22 points in the rising expectations of -21 points to -23 points after July. he index of economic confidence in euro zone in August rose to 80.6 points in expectations for a rise to 78 points after 76.0 points in July. The index of confidence in the services sector in the Eurozone in August rose to -11 points after -18 points for July. The expectations of the market were to rise slightly to -17 points.
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On a business forum in Barcelona, European Commission President Jose Manuel Barroso predicted that the world will be the same after pass this economic crisis. Barroso said that Europe will start to come out of the crisis in 2010 He said the continent should be made much effort to overcome the serious situation. Barroso for most of Europe’s main concern is unemployment. This is the main drama of European society. Barroso added that the European Union will show flexibility in terms of limit of 3 percent of GDP, which must not pass the budget deficits of member states of the Union.
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