The soft drinks manufacturer PepsiCo plans to invest 2.5 billion dollars in China over the next three years. The money will be invested in new factories in the country in research and promotional campaigns, reported AFP. These funds are added to the already announced $ 1 billion investment company, which announced in 2008 and are planned to be invested by the end of this year. Speaking of the leadership of the group shows that Pepsi’s investment program reflects confidence in this important, growing market. Manufacturer’s plans include the construction of between 10 and 12 new plants in China, which currently has 27 factories of Pepsi. There are plans to expand the portfolio of products tailored for the local market. Last year the competitive Coca-Cola also announced big plans in China, the company plans to invest $ 2 billion there for three years. The investment is quite big for the company, which recovered from hard drop in sales for the months of financial crisis. This investment should recover the placement in the largest country of the world and is basically required by the high consumption of the soft drinks in Asia.
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The Russian economy grew in the first quarter of this year for the first time since 2008 thanks to the recovery of this industry and services, and improving labor market. On an annual basis for the first quarter GDP grew by 0.5 per cent since the fourth quarter of last year declined by 2.6 percent, data show the indicator for the economy of VTB Capital – the investment bank unit VTB. Only in March the Russian economy grew by 1.1 per cent growth from 0.5 percent in February, the index shows. Increased demand for raw materials and larger consumer spending helped the country to escape from its worst recession since the collapse of the Soviet Union. According to official statistics in the fourth quarter the economy shrank by 3.8 percent annually after a decline of 7.7 per cent in the third. For the year reported a decrease in GDP by 7.9 per cent. According to data from the state rail operator transporting goods by rail, which is considered indicative of changes in industrial production jumped by 12.7 per cent yoy in the first quarter. In February retail sales increased by 1.3 per cent annually, while unemployment fell to 8.6 per cent from 9.2 per cent. Capital investment and unemployment are “weak links” in the restoration, said last month, Deputy Economy Minister Andrei eyelid. VTB Capital indicator calculated on the basis of surveys of business conditions in manufacturing and services sectors.
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The German unit of U.S. car giant General Motors – Opel, will chase the expansion through an investment of 11 billion euros in the development of new cars over the next five years. The plan is part of a strategy to transform the company into a profitable within two years. This report by the leadership of GM, Air Force forward. From GM also reported that the planned reduction of 8 300 people in Europe and the closures in Antvertp. One of the main objectives of GM is to obtain approval of plans by European governments to be able to get vital loans to the company to become profitable again. At this stage the intentions of GM have been identified as “financially reasonable and realistic to achieve” an independent auditor, said the head of the company’s Europe, Nick Reilly.
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The Mayor of London Boris Johnson warned the bankers to stay in the City of London, warning that the temptation to move to Switzerland to them face unexpected risks, officials said. “I am told that there are some parts of the canton of Bern, where men are not allowed to urinate made after 10 o’clock at night so as not to disturb their neighbors,” Johnson told a reception organized by the Japanese investment bank Nomura in the ski resort of Davos, which is currently being held traditional World Economic Forum. His comments in the room full of bankers, were made on the news that some hedge funds and investment bankers leave London and move to Switzerland to avoid the EU regulations or imposed in the UK tax revenue over a specified amount and on bonuses. “Time is the master of the universe to show that they can be both servants of society,” said Johnson, a former journalist and a frequent guest on satirical TV shows.
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The Gross domestic product (GDP) grew by 0.4 percent in the euro area (EU-16) and by 0.3% across the EU in the third quarter of 2009, said the community’s statistical office Eurostat. In the second quarter of 2009 growth was -0.2% in the euro area and -0.3% in the EU27. Compared with the third quarter of 2008, GDP declined by 4.1% in the Eurozone and 4.3% in the EU27, after -4.8% and -5.0% respectively for the previous quarter a year ago. In the third quarter of 2009, consumer spending fell by 0.2%, at 0% and -0.1% respectively for the previous quarter. Investments decreased by 0.4% in the eurozone and by 0.5% in the EU27 (-1.7% in reported and -2.5% the previous quarter). Exports increased by 2.9% in the Eurozone and 2.4% in the EU27 (-1.3% respectively at -1.4 percent and the previous three months). Imports increased by 2.6% in the eurozone and by 2.4% in the EU27 (in-2, respectively, 9% in both zones). To compare the U.S. GDP increased by 0.7% in the third quarter of 2009, after -0.2% in the second quarter of 2009.
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The price of oil dropped to its lowest level for the past six months. Reason for this became news about Dubai’s plans to restructure its public investment fund. Currently announced that the Fund suspended all payments on its obligations for a period of six months, and rumors say it could extend to bankruptcy. This is a strong negative impact on the stock exchanges in Europe, which registered a sharp drop yesterday. The reason is that some analysis show that European banks had exposure of about $ 40 billion to the fund. Learn more about the fund, which collapsed yesterday exchanges in Asia and Europe. All this reflect negatively on the price of oil. Black gold moved with a fall of 3.4 percent to 75.29 dollars per barrel last night, which is the lowest level to date of 15 October. So oil is going to record weekly retreat from 1,9 per cent. Yesterday the New York Stock Exchange remained closed for Thanksgiving. Today, even the stock exchange session will be shortened, as trade will be up to about 8 hours CET. Then you’ll end today’s session of the stock exchange in the United States.
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