Thursday, December 30, 2010

Post-crisis Paris car show goes electric, looks to Asia

PARIS - Glamorous women draped themselves over gleaming vehicles and technicians plugged in electric cars Thursday as the world's auto industry met in Paris to showcase dozens of new models and pray that crisis is behind it.

The worst global slump since the 1930s savaged the industry and it is now setting its sights on emerging markets like China and India to compensate for stagnating sales and fierce competition in Europe.

"In 2010 we are dealing with a two-speed world," said PSA Peugeot Citroen boss Philippe Varin as he presented the French firm's new models at the Paris Motor Show.

In Europe carmakers are expecting a drop of seven percent in sales this year but in China they continue to rise rapidly, making it the biggest and fastest growing market and an eldorado for the industry.

Carmakers are hoping places like China, India and Brazil will snap up the models displayed at the show that opens to the public Saturday after press previews and a visit Friday by President Nicolas Sarkozy.

More than a million visitors were expected to flock to the huge exhibition halls to ogle shiny vehicles -- and the pretty women employed to stand next to them -- and see for themselves the latest innovations in the art of driving.

A major feature of this year's exhibition is a range of electric cars -- with the French leading the pack -- ready to hit the road.

High glamour comes in the form of sports cars from Ferrari, Porsche and Lamborghini, while Renault and Citroen add a touch of fashion by showcasing cars they built in partnership with fashion brands Lacoste and Miss Sixty.

Kia's three-seater electric "Pop" concept car, featuring "butterfly-wing" doors that open both upwards and forwards, was creating a buzz at the show held every two years.

Mercedes unveiled its new CLS which mixes coupe styling with the four doors of a saloon. Ford showed to European buyers its new Focus range, while the future of family cars may be hinted at in Vauxhall's GTC Paris Concept.

Peugeot features its upgrade for the 407, the 508, and visitors will get a peek at the new Citroen C4.

Chevrolet premiered four new models as part of a bid by the iconic US carmaker to boost its tiny market share in Europe.

Ever tougher regulations on carbon dioxide emissions, environmental worries and uncertainty over oil prices are all major concerns for the auto groups.

Carmakers are continuing to invest heavily in new technologies to reduce CO2 emissions and slash energy consumption.

This week they put on display some of their results at the Paris show, where an entire hall was dedicated to emerging energies and clean cars.

Renault presented the electric Fluence ZE (zero emission) saloon and its Kangoo Express ZE van, which are expected to go on sale next year, and also unveiled a near-final version of its flagship Zoe model.

PSA displayed the Peugeot Ion and Citroen C-Zero runabouts, derived from the Mitsubishi i-Miev, and Nissan showed off its Leaf saloon.

"We have now moved from electric concept cars to cars you can actually buy," said Carlos da Silva of IHS Global Insight. "Paris will be the first car show in the world where there really will be five or six cars you can choose from."

Citroen showcased an electric Berlingo van that left Shanghai after the World Expo there in May and was driven 14,000 kilometers (8,700 miles) across Asia to Paris.

Electric cars may be the future but many potential buyers are likely to wait to see if the necessary recharging infrastructure can be put in place before taking the leap.

Ford Europe boss Stephen Odell told AFP that his firm was on track to deliver five electric cars in Europe over the next five years but warned that the technology needed to improve dramatically for the market to expand.

He believes that even 10 years from now, most cars will still be running on diesel or petrol engines.

"Frankly the technology needs to get better, with a longer range ... and the cost has got to come down. And there's the infrastructure -- where are you going to charge your car?" he asked.

Manufacturers are in parallel continuing to develop hybrids, with PSA due to bring out a diesel-electricity hybrid next year.

But improving traditional engines remains a major goal. Innovations which can reduce size without also reducing performance result in cars like the two-cylinder TwinAir Turbo that Fiat is showcasing.

"New technologies are the tip of the iceberg but in fact what continues to sell and what makes up the bulk of sales are traditional cars," said Carlos da Silva.

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Wednesday, December 29, 2010

Asian stocks advance as China data boosts hopes

SINGAPORE - Asian stocks rose on Friday as stronger-than expected economic indicators from China and the United States boosted confidence in the global economic recovery.

European shares also rose, after slipping in the previous four sessions amid debt concerns in the euro zone. The FTSEurofirst 300 rose 0.2 percent, Britain's FTSE 100 gained 0.6 percent, Germany's DAX rose 0.4 percent and France's CAC 40 was up 0.3 percent.

Chinese manufacturing gathered momentum last month, handily beating market forecasts and providing further evidence that the economy is pulling smoothly out of a second-quarter slowdown.

The MSCI index of Asia Pacific stocks outside Japan was up 0.34 percent compared with a rise of 0.24 before the release of China's Purchasing Managers Index. The index gained more than 17 percent in the last quarter.

"This looks like the real deal. It's not just inventory correction. We think that end demand is picking up in China and the economy has stabilized after the summer lull," said Frederick Neuman, co-head Asian economics, HSBC in Hong Kong.

Japan's Nikkei average closed up 0.37 percent on Friday, helped by short-covering after sharp falls the previous day and after US economic data provided a degree of optimism.

The index gained 6.2 percent in September, it is more than 2 percent off the peak hit after Japanese authorities conducted currency market intervention on September 15 to weaken the yen.

"Japanese stocks are recouping some ground as investors appear to be correcting extreme pessimism triggered yesterday by the yen's advance and worries about European finance problems," said Koichi Nosaka, a market analyst at Securities Japan Inc.

Data watch

US data on Thursday showed new jobless benefits fell last week and regional manufacturing grew faster than expected.

Later on Friday, the Institute for Supply Management is scheduled to release US manufacturing data.

US Treasury prices slipped as investors turned to stocks and the dollar held steady after dropping to an eight-month low against a basket of currencies the previous day.

The euro paused below a five-month high on the dollar hit the previous day, helped by data showing euro zone banks are relying less on funds from the European Central Bank.

The dollar dipped 0.1 percent to 83.47 yen, but stayed above the previous day's low at 83.16 yen and last month's 15-year trough below 83.00 that had prompted Japanese authorities to intervene for the first time in six years.

The Australian dollar jumped on optimism that the strong data from China augured well for the country's resource exports.

Oil rose above $80 on Friday, staying at a seven-week high, as the renewed momentum in China's manufacturing sector pointed to stronger demand. Copper also advanced on hopes of greater Chinese demand.

But gold, widely seen as a safe haven, also ticked up, hovering within sight of a lifetime high, although traders said the improving data from China and the US could curb gains.

Traders said spot gold, which stood at $1,310.40 an ounce after hitting a record around $1,315 the previous day, remained volatile as investors watched for signs of a firmer US recovery.

"I guess speculation will still be rife as to the state of the US economy. The need or not for a QE2 from the Fed," said Darren Heathcote, head of trading at Investec Australia in Sydney.

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Gold firms near lifetime high

SINGAPORE - Gold ticked up on Friday and held near of a lifetime high, but improving US and China data, which suggested growing global economic strength, could curb gains.

China's manufacturing sector gathered momentum in September, handily beating market forecasts and providing further evidence that the economy is pulling smoothly out of a second-quarter slowdown.

Silver held near a 30-year high, platinum rose to a four-month high to track gains on TOCOM platinum futures while industrial demand helped sister metal palladium stayed near its strongest level since early 2008.

Spot gold added $4.70 an ounce to $1,309.95 after hitting a record around $1,315 on Thursday, racking up its eighth consecutive quarterly gain as the US Federal Reserve appeared ready to pump more cash in the struggling economy.

"I guess speculation will still be rife as to the state of the US economy. The need or not for a QE2 (second round of quantitative easing) from the Fed," said Darren Heatchcote, head of trading at Investec Australia in Sydney.

"I think we can expect (gold) to remain volatile. Its movement has been determined by the US dollar at the moment."

But Thursday's data showed new US jobless claims fell last week, regional manufacturing grew faster than expected and consumer spending was slightly stronger than expected earlier in the year, injecting a little caution about the prospects for more quantitative easing from the Fed.

"If it stays above $1,305, I think the more medium-term target could be sort of $1,345," said Heathcote of Investec, who pegged downside target around $1,290s.

US gold futures for December delivery rose $1.6 an ounce to $1,311.2 an ounce, having struck a record at $1,317.50 on Thursday.

The euro edged up toward a five-month high on the US dollar on Friday and the Australian dollar gained after upbeat Chinese data encouraged a little risk-taking in the higher-yielding currency ahead of US indicators.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings eased to 1,304.776 tons by Thursday from 1,305.688 tons on Tuesday. The holdings hit a record at 1,320.436 tons on June 29.

The physical sector noted selling from Indonesia and bargain hunting from Thai gold consumers, while dealers in Tokyo saw a bit of activity in Platinum Group Metals.

Higher gold prices widened the discounts for gold bars in Tokyo to 50 cents below the spot London price from 25 cents last week. China's financial markets are closed for a week from October 1 to 7 for the National Day holiday.

"There's a bit buying on TOCOM platinum, that's why spot price is increasing. But I don't see demand the industrial sector because the price is too high anyway," said a dealer in Tokyo.

"There's a bit of buying for palladium in Japan and also the other parts of Asia. That demand comes from the auto and dental industries."

Platinum and palladium are used in jewelry, autocatalysts and also in dentistry.

In other markets, The Nikkei pared gains sharply on Friday, weighed down by large-lot selling of futures and declines in banking shares, while oil rose above $80 a barrel, staying at a seven-week high.

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Foxconn to raise wages again at China plant

BEIJING - Electronics maker Foxconn Technologies, under fire for its working practices after a string of worker suicides, has decided to up salaries by two-thirds at its Shenzhen factory, state media said on Friday.

News agency Xinhua quoted company spokesman Liu Kun as saying the roughly 66 percent pay rise for assembly line workers, the second this year, would bring salaries to 2,000 yuan ($298.9) per month. It starts from this month.

The increase will benefit about 85 percent of workers at the Shenzhen factory, the report added.

Foxconn increased salaries by 30 percent in June, from 900 yuan to 1,200 yuan per month, for its Shenzhen employees.

Eleven suicides this year at the sprawling manufacturing base has brought intense scrutiny of Taiwan's Hon Hai Precision Industry Co Ltd, the owner of Foxconn, which makes the iPhone and other products for Apple and also counts Dell and Hewlett-Packard among its clients.

The company has tried addressing the problem by improving living conditions for workers, organising activities to boost moral and bumping up wages.

Hon Hai said in August it would have as many as 1.3 million workers in China by the end of 2011, up from 920,000 now, but would focus the expansion away from its increasingly expensive Shenzhen plant.

Foxconn is expanding aggressively inland, away from Shenzhen which is in the Pearl River Delta area, where wages are lower and workers are more plentiful.

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Vietnamese company expands business in Laos

Hanoi Liquor Joint Stock Company (HALICO) opened its representative
office in the Lao capital city of Vientiane on September 30.


Lao Minister of Industry and Trade Nam Viyaketh, Deputy Minister of
Planning and Investment Thongmy Phomvisay, senior officials and
Vietnamese Ambassador Ta Minh Chau along with 200 guests were present at
the opening ceremony.


Addressing the event, HALICO
Director Ho Van Hai underlined the company’s prestigious trade mark
which has developed both at home and abroad over the past 100 years.


He said the company desires to introduce high-quality
products to Lao customers and build a factory in the country in order to
boost two-way trade between the two nations, generate more jobs for
local people and contribute to the two countries’ state budgets.


Lao Minister Nam Viyaketh hailed the establishment of the office and
pledged to create favourable conditions for the company to effectively
run business and invest in his country.


He extended
his wish that HALICO would soon open a factory in Laos to provide
good-quality products for the country and other labouring markets,
contributing to bolstering bilateral comprehensive cooperation.


On behalf of the Lao government, Deputy Minister of Planning and
Investment Thongmy Phomvisay granted investment licence to the company’s
director./.

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City company signs Japan partner deal

The Japan Pile Corporation has entered a strategic partnership with
local firm Phan Vu Investment Corporation, concluding its contract on
Sept. 30 in HCM City.


Under the contract, the
Japanese company, which is listed on the Tokyo Stock Exchange, will
become a shareholder in Phan Vu. (PVI) with a 5-per- cent stake. It will
be the first foreign institutional investor of PVI.


The deal value, however, was not disclosed.


According to PVI's deputy general director Vo Thi Hien, her company
has a charter capital of 150 billion VND (75.5 million USD).


Last year it earned a net profit of almost 60 billion VND from a turnover of 690 billion VND.


As PVI's operations also include the pile foundation business, the
Japanese partner will cooperate to create new pile products for the
Vietnam market, including those with an anti-earthquake feature.


It will also assist in the management of the holding company model.


In the fourth quarter, Japan Pile Corp will organise training courses
for PVI staff in Vietnam and receive trainees in Japan as well.


The Phan Vu Investman Corp is expected to list in the HCM City bourse in the fourth quarter this year./.

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Shares stall on economic worries

The VN-Index fluctuated throughout most of Sept. 30’s session before closing at 454.52 points, an increase of 0.35 percent.


The volume of trades on the HCM Exchange rose by nearly 15 percent
over Sept. 29 to nearly 38 million shares, with a value in excess of 1
trillion VND (51.3 million USD).


Decliners
outnumbered advancers by 139-68, although five of the 10 leading shares
by capitalisation managed gains, including Sacombank (STB), Eximbank
(EIB), developer Hoang Anh Gia Lai Co (HAG), software giant FPT and
insurer Bao Viet Holdings (BVH), with the latter reaching its ceiling
price for a third consecutive day.


Ocean Group (OGC)
was again the most-active share on the southern bourse with a volume of
over 1.8 million units, but OGC again lost value on the day, closing
off 1.86 percent to 31,600 VND (1.60 USD) per share.


Vimedimex Medi-Pharma Co (VMD) saw its first day of trading on the HCM
exchange, but VMD shares dropped to their floor price of 32,000 VND
(1.65 USD) per share.


On the Ha Noi Stock Exchange,
the HNX-Index closed essentially unchanged at 127.29 points. The value
of trades reached 630.6 billion VND (32.3 million USD) on a volume of
26.3 million shares, decreases of 25 percent in value and 21.6 percent
in volume.


Losers outnumbered gainers, meanwhile, by
an overwhelming 200-78. Among the 10 leading shares by capitalisation,
only Asia Commercial Bank (ACB) rose in value.


Kim
Long Securities (KLS) was the most heavily-traded share, with 2.27
million changing hands, but KLS ended the session down nearly 2 percent
to just 15,000 VND (0.75 USD) per share.


The US dollar on Sept. 30 began to recover slightly on the black market, reaching over 19,700 VND per dollar.


Foreign investors were net buyers on both national stock exchanges on
the same day, picking up a combined 136.6 billion VND (7 million USD)
worth of shares./.

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