Billionaire Slim’s Europe Plans On Hold As Kpn Talks End

`Tough Ride

But much of this improvement has been down to huge spending by the manufacturers on discounts and price cuts, while dealers are being persuaded to buy the excess cars on their lots which count as new car sales. These will eventually be sold on to the public at well below sticker price. The Brussels-based European Car Manufacturers Association, known by its acronym in French, ACEA, ( ) announced today that Western European car sales were up 5.4 per cent in September compared with the same month last year at just over 1.1 million, bringing the total for the year so far to 8.8 million. Thats a fall of 4.0 per cent on the first nine months of last year. Peter Fuss, partner at consultants Ernst & Young Ernst & Young s Global Automotive Center in Frankfurt, Germany, said the recovery in car sales was down to the improvement in Europes economic outlook, with the Euro currency zone pulling out of recession during the second half of 2013. But with factory use down to less than 65 per cent by manufacturers, according to Fuss, this underlines the chronic overcapacity in Europe, which remains unresolved because of pressure from unions and governments to resist rationalisation. The European industry is looking for a bailout along the lines of the U.S. intervention on behalf of bankrupt GM and Chrysler, to allow it to finally shut-down uneconomic factories. But given the financial crisis in the euro zone, this is simply unaffordable. Ernst & Young expects an overall decline of three per cent in Western Europe for the whole year, and only modest growth next year. This growth will continue to be artificial one that is driven by discounts and self-registrations. We estimate it will take at least two years for the market to witness the real sales recovery, driven by replacement demand.


Even if he retains them, Dutch law prevents him from making a new takeover bid for six months. A move elsewhere in Europe , such as an increase in his stake in Telekom Austria AG (TKA) , would also help him achieve his goal of expanding America Movil beyond Latin America . We probably expect them to increase their stake in another European operator, and the natural option would be Telekom Austria , said Carlos de Legarreta, an analyst at Corporativo GBM SAB in Mexico City. Europe is an attractive market, even if its being pressured by the slowing macro-economy. They are mature markets with a good return. America Movil shares dropped 0.9 percent to 13.89 pesos at 8:39 a.m. in Mexico City. KPN traded 8.6 percent lower at 2.22 euros in Amsterdam, and Telekom Austria rose 0.8 percent to 6.41 euros in Vienna. Ziggo Takeover? Europes economic struggles have lured investors such as Slim and billionaire Li Ka-shing to hunt for bargains in the phone industry, where growing competition and tight regulation have squeezed profit margins. AT&T Inc., which owns 9 percent of America Movil, has also eyed investments in Europe, saying the continent is on the cusp of a boom in demand for high-speed wireless Internet service . KPN rival Ziggo NV (ZIGGO) has also deflected a foreign takeover attempt. The cable-television company, based in Ultrecht, Netherlands , said yesterday that shareholder Liberty Global Plc (LBTYA) made an inadequate offer for the rest of its shares, and its uncertain whether it will receive an improved bid.

Europe’s Car Sales Rally, Thanks To Discounts, Dealer Action

Oct. 16, 2013 After spending most of the day mired in the red, European stock markets move higher in the afternoon on hopes U.S. lawmakers will succeed in sealing a last-minute fiscal deal. 12:12 p.m. Oct. 16, 2013 Europe stocks erase losses on U.S. deal hopes LONDON (MarketWatch) — After spending most of the day mired in the red, European stock markets moved higher in afternoon action on Wednesday on hopes U.S. lawmakers will succeed in sealing a last-minute fiscal deal. Media reports said House Speaker John Boehner will bring to the floor whatever the Senate passes to open the government and lift the U.S. borrowing, in efforts to avoid breaching the debt ceiling on Thursday. The Stoxx Europe 600 index gained 0.2% to 315.34, after trading as low as 313.01 earlier in the day. Germany’s DAX 30 index gained 0.5% to 8,845.48, on track for an all-time closing high, while the U.K.’s FTSE 100 index added 0.4% to 6,574.42.

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