TAKES OVER THE WORLD
FIRST IN EXPORTS
FIRST IN IMPORTS
FIRST IN CARS
FIRST IN BANKS
China Ends U.S.Ã¢â‚¬â„¢s Reign as Largest Auto Market (Update2)
By Bloomberg News
Jan. 11 (Bloomberg) — China supplanted the U.S. as the worldÃ¢â‚¬â„¢s largest auto market after its 2009 vehicle sales jumped 46 percent, ending more than a century of American dominance that started with the Model T Ford.
The nationÃ¢â‚¬â„¢s sales of passenger cars, buses and trucks rose to 13.6 million, the fastest pace in at least 10 years, according to the China Association of Automobile Manufacturers. In the U.S., sales slumped 21 percent to 10.4 million, the fewest since 1982, according to Autodata Corp.
ChinaÃ¢â‚¬â„¢s vehicle sales have surged since 1999 as economic growth averaging more than 9 percent a year has helped automakers including General Motors Co. and Volkswagen AG compensate for slumping demand in the U.S. and Europe. The market will likely remain the worldÃ¢â‚¬â„¢s largest, even as sales slow this year on a reduction in tax cuts, according to Booz & Co.
Ã¢â‚¬Å“China is becoming the center stage of development for the 21st century global auto industry,Ã¢â‚¬Â said Bill Russo, a Beijing- based senior adviser at Booz & Co., which advises automakers. Ã¢â‚¬Å“Economic growth has directly translated into growth in automobile sales.Ã¢â‚¬Â
Stocks, Commodities Advance as China Imports Soar; Dollar Falls
By David Merritt
Jan. 11 (Bloomberg) — Stocks and commodities gained and the dollar fell after ChinaÃ¢â‚¬â„¢s imports rose to a record. The ruble rallied the most in a decade against the dollar as Russian markets opened for the first time this year.
The MSCI World Index of 23 developed nationsÃ¢â‚¬â„¢ stocks climbed 0.8 percent to its highest level since September 2008 at 12:11 p.m. in London. Futures on the Standard & PoorÃ¢â‚¬â„¢s 500 Index advanced 0.3 percent. Copper increased 2.8 percent and aluminum added 3.2 percent. The dollar weakened against all of the 16 most-traded currencies tracked by Bloomberg. The ruble rose as much as 2.7 percent.
China, the engine of recovery from the worldÃ¢â‚¬â„¢s worst recession since World War II, reported a 55.9 percent increase in December imports and supplanted the U.S. as the worldÃ¢â‚¬â„¢s biggest auto market. Alcoa Inc. may report a profit later today, starting the fourth-quarter earnings season. Analysts predict S&P 500 companies will snap nine straight quarters of declining profits, easing concern over the loss of 85,000 jobs, while retail sales may have risen in December
ChinaÃ¢â‚¬â„¢s export revive, making it largest
AP Cargo sits at a container terminal in the Port of Dalian, China. Chinese state media said on Sunday that the country’s total 2009 exports were $1.2 trillion. Photo: AP
After a 13-month slump, ChinaÃ¢â‚¬â„¢s flagging exports have rebounded back to life, recording unexpectedly strong growth in December and likely propelling the country past Germany to become the worldÃ¢â‚¬â„¢s biggest exporter.
ChinaÃ¢â‚¬â„¢s exports were up 17.7 per cent in December from a year ago, exceeding most expectations after a year and a half of steep declines.
Exports were down by more than 20 per cent last year as a result of the economic slowdown. Imports last month recorded an even stronger rebound, growing 56 per cent year-on-year, according to figures released by the General Administration of Customs (GAC) on Sunday.
SundayÃ¢â‚¬â„¢s figures take ChinaÃ¢â‚¬â„¢s exports to $1.2 trillion in 2009. This marks a 16 per cent fall from the previous year, but suggests China will still overtake Germany to become the worldÃ¢â‚¬â„¢s biggest exporter in 2009, with German exports estimated at around $1.1 trillion last year.
China banks eclipse US rivals
By Patrick Jenkins in London
Published: January 10 2010 22:32 | Last updated: January 10 2010 22:32
Chinese banks have cemented their position as the most highly valued financial institutions, taking four of the top five slots in a ranking of banksÃ¢â‚¬â„¢ share prices as a multiple of their book values.
Over the past six years, the average price-to-book value of the biggest 50 banks has halved from two to one.
This means that investors believe the average bank is worth no more than the value of its balance sheet. Most western banks are trading at well below their book value.
But investors are attaching a growing premium to emerging markets banks, led by China Merchants, the most highly rated of the biggest 50 banks by market capitalisation, on a multiple of 4.3, according to Bloomberg data.
Only last year US Bancorp topped the table and Wells Fargo was in the top 10.
The changes, which have seen the top-rated Chinese banks double in valuation over the past year as western rivals have been derated, reflect growing confidence in emerging markets, particularly China and Brazil.
They indicate concerns about the profitability of western institutions stemming from toxic assets and the drive to force banks to increase capital and liquid funds.
Ã¢â‚¬Å“Western markets generally are experiencing their worst prospects for 20 years, and thatÃ¢â‚¬â„¢s in the valuations,Ã¢â‚¬Â Robert Law, banks analyst at Nomura, said.
Ã¢â‚¬Å“China in particular is a region that is perceived as less vulnerable to global downturn.Ã¢â‚¬Â
Although Chinese bank valuations were hit by investor nervousness in 2008, the limited fallout they suffered Ã¢â‚¬“ combined with positively received government stimulus measures Ã¢â‚¬“ have allowed them to bounce back.
Some fringe developed economies with a reputation for tough regulatory controls and limited direct or indirect exposure to the subprime problem at the root of the crisis have benefited.
Canadian and Australian banks in particular climbed the price-to-book rankings.
Add it all up, China in 2010 is now Number One in the World.