China Foreign Exchange Reserve is $2.27 trillion: Is it too Much?

It is surely a huge amount. $2.27 trillion is the foreign exchange reserve of China at this moment. Well, I think that it is a lot and the government should invest some part of it in building infrastructure. There is no doubt that the government of China has spent a lot of money in infrastructures in the last 3 decades but do not forget that it is a very big country with a population of over 1 billion. Still, many people living in rural areas are suffering from poverty.

Reuters reported:

Earlier in the day, the dollar fell to a 14-month low after an opinion piece in a newspaper published by the People's Bank of China said it should increase the share of euro and yen in its reserves while maintaining the dollar as the principal currency.

Asked whether Beijing wanted to raise the portions of euro and yen in its portfolio, central bank vice-governor Yi Gang indicated the market might have over-reacted, at least on the day.

"The diversification of China's foreign exchange reserves in different currencies is our long-standing policy," he told Reuters.

Chinese economy is still suffering from economic recession. So, it is perhaps important for the government to help the workers who lost jobs in the last one year because of the closures of many factories. 

Record Profit for Hyundai: Good News for Global Economy

In the last few days, we have seen good earnings from Apple and Google. So, it indicates that technological companies are going to do well and it is perhaps one indication that economic recession is coming to an end. Well, economic recession perhaps hit most the auto industry. So, the good earnings of Hyundai is perhaps another indication that things are going to become better for the global economy. Hyundai is a Korean company and it announced its earnings recently for the last quarter. The profit was excellent and defeated any kind of expectations. That is why, I am hopeful about the global economy.

Most probably we are going out of the recession faster than anticipated. The worst is perhaps over. However, we have to be careful that recession does not come back again quickly. We should learn some lessons from the recession. 

Honda to Launch CR-Z Hybrid Car in 2010 Detroit Auto Show

Japanese automaker Honda is planning to introduce the concept model of CR-Z hybrid car in the Tokyo Motor Show 2009 this month. However, Honda has also declared that it would bring out the North American Production model of CR-Z car in Detroit Auto Show 2010 due to take place in January.

The only difference between the concept and the production model is that Honda CR-Z model does not feature any rear seat, and thus, accommodating only 2 persons. The North American production model has a sporty look and its six-speed manual transmission will allow the riders feel comfortable ride.

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Ford Trying to Strengthen its Hold in Hybrid Car Market in the US

You know that Hybrid car has been very successful over the last one year in the US mainly because US consumers have become more conscious about fuel economy and environment friendly vehicles. Specially, the economic recession struck heavily in US economy has led people to take hybrid cars very seriously. At the same time, environmentalists have been able to create a consciousness about emission and its impact on environment. Overall, hybrid car market is getting stronger day by day.

You know that Toyota is leading the market with big margin, while fellow Japanese car maker Honda takes the second place in the hybrid car market in the US. However, now it seems that Ford is trying heart and soul to overtake Honda to clinch the second spot in the hybrid market. Ford marked huge growth in its hybrid sales in the first three quarters of the year. The company sold 26,016 hybrid cars in the first three quarters, 73 percent year-on-year increase. For the same period, Honda observed only 8 percent year-on-year growth in the US, selling 29,958 hybrid vehicles in the first nine months of the year.

It is pretty much clear that Honda is going to face some strong challenge from Ford in the near future and there is every possibility Ford could overtake Honda at the second place in the hybrid car market. However, Toyota does not need to worry a lot yet as the Japanese automaker still has a very strong foothold in the hybrid market, but Toyota should remember the fact that hybrid market is still in its infancy and has not been explored fully yet. So, it would continue growing in the years to come. So, other automakers have lot of rooms to grow their share in the hybrid car market.

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Electric Cars Less Likely for Mass Production in Near Future

You may have heard many good things about electric cars and its benefits. Well, it is true that electric cars are going to be the next big thing in automobile market, but it is less likely that electric car would grab a significant portion of the global car market in the near future. Ahead of Tokyo Motor Show, Japanese automakers like Toyota, Honda, Nissan, Mitsubishi etc. are preparing to introduce their concept electric cars. However, there is less possibility that the companies would bring these models into large scale production in the near future.

Electric cars are really environment friendly with zero-emission, but the analysts believe that electric car market is still in its infancy and it would take time to see electric cars going into mass production for global market.

Among the Japanese car makers, who are going to take part in the Tokyo show, only Nissan and Mitsubishi are planning to unveil their electric cars next year, while Daimler AG will reportedly start the commercial production of electric cars in 2012. Toyota has said that it would launch an electric car by 2012, but it will only be available for the US market. Honda is planning to do the same by launching an electric car in the US as well as in Japan, not for global market.

So, it is pretty much certain that for environment friendly cars people would have to rely on hybrid options in the near future.

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BMW Manufacturing to Employ 700 Workers for Two New Shifts

BMW Manufacturing Co has decided to employ a new bunch of workforce as it is planning to open two new working shifts of 10 hours each at the company’s Greer manufacturing plant in South California. MAU Inc. and Tier One Solutions, who deal with the company’s recruitment policy, are getting huge response for the posts. The company has announced $13 per hour wage for the day shift and $14 per hour for the night shift. Looking to get one of the 700 jobs, many people engaged at the S.C. Employment Security Commission office on Wednesday.

Goupstate reported:

Almost 400 people had passed through the doors by lunchtime to submit applications and meet with interviewers, and hundreds more were expected as the job fair was scheduled to run from 9 a.m. to 4 p.m.

Opening of two new shifts could be a positive side and an indication of stronger economy. It seems BMW Manufacturing is gradually strengthening its presence in the market. Due to economic recession, the company cut the per week production hour to 80 hours, which was 110 hours weekly last year. Now, the company looks to increase it to 100 hours with stronger demand in the market.

Tokyo Motor Show 2009: Honda and Toyota to Introduce Environment Friendly Concept Cars

Considering the theme of the upcoming Tokyo Motor Show 2009: Fun Driving for Us, Eco Driving for Earth- Japanese automakers like Toyota and Honda are going to unveil some of their eco-friendly concept car models at the show. The 13-day-long Tokyo Motor Show will start from 23 October and continue till 4 November at the Makuhari Messe in Chiba City of Japan.

All the futuristic models will highlight environment friendly technology as well as fuel efficiency Toyota will come up with EV II concept model which is an ultra compact electric car. The specialty of the car is that it saves space by giving all the driving controls including accelerator, brakes and steering wheel in a hand-held joystick. That means, it does not feature the conventional accelerator and brakes paddle. The car can accommodate 4 passengers including driver.

Another Japanese automaker Honda will introduce its Skydeck hybrid minivan concept car. The six-seater features a sliding door for the front row passengers and a scissor-wing door for the second and third row passengers. The car places its hybrid system in the central tunnel, in stead of placing it conventionally behind the back seats.

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Nissan Land Glider Electric Car to be Introduced at Tokyo Motor Show

Japanese automaker Nissan Motors is going to introduce a concept car: Nissan Land Glider- in the upcoming Tokyo Motor Show. A number of automaker will participate in the show in order to introduce their upcoming vehicles.

Nissan Land Glider is a four-wheeler run by electricity, but it looks and works like a motorbike covered by a roof. Actually, you can consider it as an all-covered motorbike which accommodates 2 persons. The specialty of this vehicle is that it can lean up to 17 degree at turns, and thus, giving the passengers an experience of motorbike riding.

It would not be a big problem to park Nissan Land Glider because of its 3.5-feet width. Nissan Land Glider may not give you the experience of riding a Harley Davidson, but then you can feel safe and still enjoy the excitement of riding a motorbike with this electric car. Now, let us see if the zero-emission car receives positive response from the car enthusiasts at the Tokyo Motor show.

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Toyota to Display 2 Concept Cars at Tokyo Show

Japanese car maker Toyota is going to show two concept car models at the upcoming Tokyo Motor Show that is due to be organized later in October. The two concept cars are: FT-86 and FT-EV II. FT-86 is a sports car featuring a front-mounted two-litre engine and the car is driven by rear wheel. The design is pretty much catchy and fashion conscious users would like to own it.

FT-EV II is the other concept model that Toyota is going to showcase in the Tokyo Motor Show. The city car can accommodate four persons, even though it is smaller than the Toyota’s previous model iQ. It would be interesting to see how the model manages to allow four persons inside it, but the possible reason is that FT-EV II does not feature any pedal or steering wheel. It features a joystick which has all the controls needed while driving. It is an electric car and at a full charge it can run about 50 miles. Highest speed it has is 60 miles per hour. The city car has two sliding doors.

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Honda Introduced 2010 VFR1200F Motorcycle

Motorbike maker Honda has recently unveiled VFR1200F sports motorcycle which will be released in the first half of 2010. Honda will show the two-wheeler in December and the price will be released in December too. VFR1200F would be the latest addition to Honda’s traditional VFR family and use V-4 technology. The 1237cc bike will feature eye-catching design targeting the new generation riders. Honda 2010 VFR1200F was introduced by the company at a pres conference arranged in Honda’s USA headquarter located in Torrance, California.

Cyclenews reported:

Honda's V-4 heritage and VFR tradition is fully realized in the VFR1200F. It has been re-created in astonishingly innovative form through the fusion of advanced technology imported from the MotoGP world and other cutting-edge environments. Net result: a futuristic sport motorcycle created for the sheer joy of riding, custom tailored for experienced hands who ride hard, ride long, ride far and ride often.

So, it is pretty much clear that Honda has a long term plan with VFR1200F model and it is expected that VFR1200F would be the benchmark model for Honda. Depending on the success of this model, Honda would plan its next models.

Toyota Recalling 3.8 million Cars over Floor Mat Issue

Toyota Motor Corporation has now recalled 3.8 million vehicles on floor-mat complication. This is reportedly the Toyota’s biggest recall in the United States to date and the company has also apologized for this complication that already caused a number of accidents across the country.

Suujournal.com reported:

Models recalled include the 2007-2010 Toyota Camry, 2005-2010 Avalon, 2004-2009 Prius, 2005-2010 Tacoma, 2007-2010 Tundra, 2007-2010 Lexus ES 350, 2006-2010 IS 250 and IS 350.

The problem is that the floor mats in these cars can cause an abrupt acceleration in speed that the derivers may not be able to stop, and thus, leading to a big accident. So, Toyota is now urging the car owners to return their cars to Toyota and get the problems fixed.

Well, I think, Toyota should handle this issue smartly if they want to solve it without losing much of its goodwill.

The Future of MBA in England Rests on Asian Students: Perhaps

I just finished reading an excellent feature in the Independent: Can the MBA boom last? by Peter Brown. Mr. Brown has talked about the growing popularity of this degree even during the time of economic recession. He has given us a lot of information about MBA in British Universities. He wrote:

"The exchange rate has worked in our favour," agrees Professor Michael Luger, director of Manchester Business School (MBS). "But of course, that could turn the other way. A lot of our students come from China and India, places that are developing their own higher education systems. So we're not counting on these robust numbers in the future."

Behind the current boom, then, lie some big questions. How many of these students are simply sheltering from the storm? How long can they afford to do that? Will there be enough jobs for them? And beyond that, can they be taught to avoid the kind of behaviour that caused the crisis?

So, from the report, we can know that many students from Asia now go to UK to study MBA. Well, I think that the bubble is going to burst soon. The British economy is suffering a lot from economic recession. So, there is not a lot of room for jobs in the British economy for these foreign students. The same is true for countries like India and China who are also suffering from recession.

MTN-Bharti Merger Talk Failed: Who is to Blame?

If the merger happened then it would have been perhaps the best example of Indo-African unity. During the apartheid era, India was one of the strongest supporters of ANC. Now, ANC is in power and the relationship is very friendly between these two countries. So, a deal between MTN and Bharati was supposed to be finalized without that much problem. South African government clearly is the villain here as they were keen on keeping MTN as a South Africa based company and did not want foreign high officials be a part in the decision making. The main reason behind such an attitude was that MTN is very important for the country and many people are directly or directly related to it for their livelihood. Any job cut would be bad for the government.

On the other hand, South African decision makers have perhaps something to justify their ground. They wanted duel listing for the company but Indian decision makers did not agree to it.

So, it is up to you to decide who is blame for this merger failure. The good thing that happened is that months of uncertainty just got finished and it can be business as usual for the two companies now.

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