Slovakia can become the second country in the East Europe, which will join Eurozone. As the Eurocommissioner concerning economy and credit policy has informed journalists, the final decision on this question will be accepted on May, 7th, 2008.
The final answer to a question, whether Slovakia is ready to transition to euro will be known from information on key economic questions of this country which will be already published within the nearest weeks. After that it will become clear, whether Bratislava has executed EU’s requirements.
If on May, 7th, the decision on Slovakia’s entrance to Eurozone will be really accepted, in 2009, the currency of the EU will replace the local crone, which has replaced a crone of Czechoslovakia after declaration by republic of independence in 1993.
Now the euro is used in such countries as Austria, Belgium, Greece, Ireland, Spain, Italy, the Netherlands, Luxembourg, Germany, Portugal, Finland, France, Slovenia, on Cyprus and Malta.
It is necessary to note, that as a whole EU rather skeptically concerns to euro introduction in the countries which have joined the Union within the last 10 years. There are greater doubts that former members of socialist camp have really managed to make up for backlog from the states of the Western Europe.
At the same time it is necessary to note, that all is far not “old” EU members have agreed to enter European currency. Sweden, Denmark and the Great Britain still refuse this step, not wishing to unite the financial systems with neighbors.
On the eve, on April, 3rd, International monetary fund (IMF) has already for the second time in this year lowered the forecast of growth of economic in 2008, that having recognized, that housing and credit problems in the USA became the reason of huge problems.
So, according to IMF’s forecasts, this year rates of economic growth will make only 3,7 % though in January this forecast made 4,1 %, and in October 2007 - 4,8 %. Experts mark, that if this forecast will come true, rates of growth of economic will appear minimal since 2002 - then world gross national product made 3,1 %.
It is necessary to note, that, in IMF experts’ opinion US economy has approached to “actual stagnation” and remains quite weak down to II half of 2008 because of problems in the housing and credit markets. Nevertheless, the IMF is assured, that the largest economy in the world has not entered a strip of recession yet and economic growth of the USA in current to year will make 0,5 %, that is in 1,5 % below the previous forecast . Despite of the effective measures, accepted by monetary authorities, high prices for raw material and problems in housing sector will suspend growth of economy.
Experts have also declared that because of weak activity in the USA, economic growth in the countries of the Europe will be also slowed down.
Economists of international rating agency Fitch Ratings believe that in 2008 rates of economic growth can to be slowed down and become sharply minimal for last five years. In their opinion, hypothec crisis and decrease in a consumer demand become principal causes of recession. Such application has been given in published today, on April, 2nd, press release of rating agency.
And even stably developing countries BRIK (Brazil, Russia, India and China) cannot compensate delay of rates of economic growth. So, according to Fitch Ratings’ forecasts, in 2008 economic growth in the USA will make 1 %, 1,3 % - in Japan, 1,4 % - in the Great Britain and 1,7 % in Eurozone.
It is also marked in Fitch Ratings’ forecast that this year average rates the developed economies’ growth, to which the countries of Eurozone, the USA, Japan and the Great Britain belong, will make about 1,3 %. And growth of fears concerning sharp decrease in a consumer demand in the USA and deeper, than it was expected, recession of the American market of the inhabited real estate became the main reason of so pessimistic forecast. In this connection economists of agency specify growth of probability of correction of charges on habitation and consumer charges in other large countries, including the Great Britain and Spain. Besides, indeterminacy in the credit markets can provoke restriction of crediting in the majority of the developed and developing countries.
The government of Sweden has sold the company, which is producing vodka Absolut, to French alcoholic giant Pernod Ricard.
Pernod Ricard has paid 55 billion Swedish crones (9,24 billion dollars) for company Vin and Sprit, which makes the second on popularity vodka brand in the world .
Pernod Ricard has declared that after purchase Absolut it in due course will refuse from sale of vodka “Capital” outside Russia.
Earlier Pernod Ricard negotiated for purchase of brands “Capital” and Stolichnaya with Russia, which is their owner.
Pernod Ricard has collected the whole collection of world famous alcoholic brands, such as whisky Chivas and Ballentine’s, rum Havana Club, champagne Mumm, cognac Martell and gin Beefeater.
British company Diageo, owning world vodka brand N1 Smirnoff, firstly participated in competition on purchase of V&S, but later it has left competition.
American company Bacardi which besides the same rum since 2004 owns vodka mark Grey Goose was one more applicant.
The government of Sweden spends the program of privatization, which the company V&S joined.
Pernod Ricard is measured to stop manufacture of Absolut in Sweden. The turn of V&S makes nearby 1 billion euro (1,3 billion dollars) and 2,5 thousand people in 10 countries work in the company.
Absolut is the fourth on popularity alcoholic brand of the world after vodka Smirnoff, rum Bacardi and whisky Johnnie Walker.
South-Korean motor-car manufacturer Hyundai Motor has informed, that since 2009 it will stert a batch production of cars with a hybrid power-plant.
Chairman of concern has noted that the company plans to begin serial release of ecologically safe cars in 2009. As he said, since 2012 the motorcar giant also plans to start manufacture of the limited number of electro mobiles.
Besides within the limits of realization of plans on 2009 Hyundai Motor has developed the stage-by-stage program, which includes development of technologies, creation of mass production system and expansion modeling of some cars. According to the given plan, the company will start batch production of compact car Elantra LPI.
The given hybrid car uses two energy sources: liquefied gas oil gas and electricity. In 2010 Hyundai Motor Co. plans to represent medium hybrid cars with the engine working on gasoline and liquefied gas.
Now within the limits of pilot project Hyundai Motor Co. produces hybrid models Verna for official bodies. The company plans to add modeling number of serial hybrid sedans.
Let’s explain, in October, 2004, the company Hyundai Motor has delivered 50 hybrid cars Getz to the state organizations. Besides, in 2005 Hyundai and Kia have sent 350 hybrid cars to the state organizations, including model Verna. In 2006 standard item of the given cars has made 730 units, in 2007 - 1 thousand 682 cars.
Also in the present message of the company it is marked, that Hyundai Motor Co. is measured to expand experimental park of electro mobiles up to 500 units, including medium and large off-road cars that will allow the company to adjust small manufacture all over again, and then mass release - in 2012.
Let’s remind, Hyundai Motor Co. was created in 1967. Now the company is transformed to auto building group Hyundai-Kia, which unites more than two tens branches and the divisions connected with manufacture of cars.
In January-February 2008 a gain of gross national product concerning January-February 2007 has made 7,8 % (in February 2008г. - 8,2 %). Such data has been represented in monitoring a macroeconomic situation in the Russian Federation for two months of 2008.
As it is marked in materials of the Ministry of economic development and trade of Russia acceleration of rates of economic growth in February was provided by high rates of growth consumer and investment demand for a background of essential acceleration of processing manufactures.
The index of industrial production, calculated by such kinds of activity as extraction of the minerals, manufactures processing, electric power, gas and water manufacture and distribution (in view of the amendment on informal activity) has made 1,2 % in February, and 3,5 % within two months of 2008.
If in January 2008 delay in growth of processing manufactures has caused delay of industrial production as in February restoration of their dynamics was the major factor of dynamics of industrial production acceleration. Unstable character of industrial production growth in the beginning 2008 is connected, first of all, with insufficient development of processing manufactures.
Let’s remind, that in the beginning of this week department has raised the forecast of of gross national product growth for 2008 from 6,5 % up to 7,1 %. Experts prove that gross national product growth in 2008 is expected more, than it was supposed earlier.
American auto concern Ford has agreed to sell brands Jaguar and Land Rover to Indian motor-car manufacturer Tata Motors, such information has been given in the press release of the American company. The sum of transaction makes 2,3 billion dollars
According to the terms of transaction, Ford Motor will also list in a pension fund of Jaguar and Land Rover employees up to 600 million dollars. According to the message of the company, some time after end of the transaction it will continue to carry out technical support of Jaguar and Land Rover. It is supposed, that the transaction will be completed by the end of next quarter.
Let’s remind that British actives of Ford have been exposed on sale in June, 2007, in connection with company’s desire to concentrate on the basic automobile business under the trade mark Ford, which is facing crisis now. Ford has got Jaguar in 1989 for 2,5 billion dollars, and Land Rover - in 2000 for 2,75 billion dollars. Nearby 16 thousand people work at factories of these companies.
As to other agents, wishing to buy the well-known brands, these are two Indian motorcar giants-competitors: Mahindra and Mahindra (in the union with investment company Apollo) and Tata Motors.
The last one has started negotiations with Ford Motor in January, 2008. Brands Jaguar and Land Rover have been estimated by Merrill Lynch analysts in 1,5 billion dollars.
American software manufacturer Oracle Corp. has agreed about granting the revolved credit for the sum of 2 billion dollars.
The credit is given without maintenance. In materials Oracle submitted to the Commission under securities and stock exchanges of the USA (SEC) it is spoken that banks Wachovia and Bank of America act as the basic creditors.
The credit agreement includes a standard terms according to which the cumulative pure duty of the company should not exceed 45 % from the general capitalization.
Oracle - is the world leader in software development. On results of II quarter 2007-2008 net profit of the company has grown on 35 % - up to 1,3 billion dollars, the proceeds have increased on 28 % - up to 5,3 billion dollars.
In January, 2008, Oracle has reached the agreement on BEA Systems purchase. According to the terms of the transaction, Oracle will pay 19,375 dollars for each BEA Systems’ share in cash. Final cost of the transaction unanimously recommended by board of directors BEA Systems to its shareholders, is estimated in 8,5 billion dollars.
Unpredictability of the world share markets has led to that the majority of investors began to invest the capital in raw actives, quite fairly believing, that they for some time become “silent harbor”.
However, it became clear, that the raw material also depends on world markets fluctuations. So, in the beginning of this week he price for raw actives have sharply gone down. However, the majority of experts assure that while it is early to speak about the termination of raw “rally”.
Reuters/Jefferies CRB Index, reflecting market cost of 19 basic raw goods, has gone down for last week on 8 % and was closed on March, 19th, on the mark of 388,30 items. Standard and Poor’s Goldman Sachs Commodity Index (GSCI) has sharply gone down - its parameter is on 7 % below, than one week ago.
However, in analysts’ opinion, these parameters do not need to be perceived seriously as in the nearest future limitation of stocks will promote the further rise in prices. This week on the majority of the raw markets correction was observed. But considering extreme flexibility of all world markets, it should not cause surprise.
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The profit of mining giant Rio Tinto continues to grow on a background of sharp rise in prices practically for all raw materials. However, experts mark, that this news cannot be named good for BHP Billiton to which should raise the offer on purchase of the competitor.
Moreover, while BHP waits for approval of antimonopoly bodies, Rio Tinto’ profit will continue to grow. And finally purchase of the competitor can manage to the mining giant in large sum.
Noe Rio Tinto costs much more than BHP offers, especially if to consider good opportunities for growth which now open before the company. So, under analysts’ forecasts, cost of Rio Tinto’s shares for I half-year 2007-2008 will grow on 50 %, while BHP’s shares will grow in price only on 12 %. However, next year financial parameters of BHP Billiton will, most likely, appear better, than Rio’s ones, but by that moment final cost of the transaction will be already named.
Chinese aluminium company Chinalco can also cause some troubles to BHP Billiton. The matter is that on February, 1st, Chinalco and American concern Alcoa Inc. have informed on purchase of share in the share capital of mining Rio Tinto. According to the terms of transaction, Singapore division Chinalco, company Shining Prospect Pte. Ltd. (SPPL), which is controlled by Alcoa, has got 12 % of Rio Tinto’s shares, estimated in 14,05 billion dollars.
BHP Billiton is the world’s largest mining company whereas Rio Tinto takes the third place in world mining sector.
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