CATERING & HOTELS MARKET

ASIA: DECEMBER 2007 - Growth and challenges in the Hong Kong hotel sector.

On 28 September 2007 Mark Lettenbichler, the Chairman of the Hong Kong Hotels Association, published his statement for 2006-2007 in which he reviewed the successes of, and challenges facing, the hotel industry in Hong Kong.

Room inventory had increased from 43,866 rooms at the end of 2005 to 51,742 rooms by July 2007 with a projected inventory of 55,174 by the end of 2007. This will represent an increase of 26% withinin two years.

This rise in room numbers led to a two percentage point decline in average hotel room occupancy rate during the first seven months of 2007 year to 83.4% from 85.4% in the first seven months of 2006.This was counterbalanced by an increase in average hotel room rates of 11.9% resulting in an increase in average yield of 9.3%.

He highlighted the need to be aware of the growing popularity of Macau as a tourist destination. Macau, an hour's ferry ride from Hong Kong has overtaken Las Vegas as the world's leading gambling destination and has a higher per capita GDP than Hong Kong. However given Hong Kong's superior air transport facilities and international connections it should be possible for the hotel industry to benefit from developments in Macau.

An indirect challenge posed by the growth in Macau's tourist infrastructure is the demands it places on the limited pool of suitably skilled staff in the region.

Simon Keswick, the Chairman of Mandarin Oriental International Limited, has also announced his confidence in the sector in the companiy's 2007 interim report. The group's eponymous Kong Kong hotel benefitted from higher average room rate following its refurbishment; the group's Excelsior Hong Kong also achieved good growth in its room rate.

Hong Kong Hotels 2007
Snapdata's Snapshots Hong Kong Hotels 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the Hong Kong hotel market, and covers high tariff hotels, medium tariff hotels, tourist guesthouses and unclassified establishments. Market volume is based on number of hotels. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Hong Kong Hotels 2007 forms part of Snapdata's Catering & Hotels industry coverage.

Singapore Hotels 2007
Snapdata's Snapshots Singapore Hotels 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the Singaporean hotel market, and covers budget, mid tier, upper-mid tier and upper tier hotels. Market value is based on room revenues generated. Market volume is based on number of hotel rooms. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Singapore Hotels 2007 forms part of Snapdata's Catering & Hotels industry coverage.

Germany Hotels 2007
Snapdata's Snapshots Germany Hotels 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the German hotel market, and covers hotels, guesthouses, pensions and hotel garni. It does not include group accommodation establishments, holiday centres, youth hostels, mountain refuges or similar establishments. Market volume is based on number of overnight stays. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Germany Hotels 2007 forms part of Snapdata's Catering & Hotels industry coverage.

RETAIL MARKET

AMERICAS: DECEMBER 2007 - Grupo Gigante's announcement may herald consolidation in the Mexican retail sector.

On 8 November 2007 Grupo Gigante announced to the Mexican Stock Exchange that it was evaluating its strategic options and that this process may lead to the sale of assets, mergers or strategic alliances. It confirmed that no agreement had yet been reached.

On 20 November an anonymous spokesman for the CFC, Mexico's competition commission, stated that Wal-Mart de Mexico, Walmex, had withdrawn its request to acquire either Gigante or those of its assets it might put up for sale. Soriana had previously announced that it would await a formal sale announcement before reaching a decision as to whether it would bid.

Two Chilean retailers, Cencosud and Falabella, have formally signalled their interest in pursuing discussions with Gigante and its advisers.

In a separate development Wal-Mart de Mexico announced on 13 November that it planned to accelerate the development of its banking unit by opening up to 80 new branches in 2008. The foundation of Banco Wal-Mart de Mexico Adelante SA was announced in November 2006 and started operations in the second half of 2007. It offers savings accounts, debit cards, and credit to individual and small-business customers.

Mexico Mass Market Retailing 2007
Snapdata's Snapshots Mexico Mass Market Retailing 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the Mexican mass market retailing market, and covers supermarkets, department stores and specialised stores. Market value is based on gross sales. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Mexico Mass Market Retailing 2007 forms part of Snapdata's Retail industry coverage.

Wal Mart De Mexico 2007
Snapdata's Wal-Mart de México SA de CV Company Snippet 2007 report gives an instant overview of Wal-Mart de México’s company background and history. The report provides a time-saving valuable overview of the company, history, M&A activity, management, products and brands. The Wal-Mart de México Company Snippet 2007 forms part of Snapdata's Company Snippets Series.

Brazil Supermarkets & Hypermarkets 2007
Snapdata's Snapshots Brazil Supermarkets & Hypermarkets 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the Brazilian supermarkets and hypermarkets market, and covers traditional supermarkets, hypermarkets and large supermarkets, and small supermarkets. Market value is based on gross sales. Market volume is based on number of stores. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Brazil Supermarkets & Hypermarkets 2007 forms part of Snapdata's Retail industry coverage.

MEDIA MARKET

EUROPE: DECEMBER 2007 - Consolidation forecast in the German newspaper industry.

Germany's newspaper industry is highly fragmented and the market has attracted overseas investors as local publishers are restricted in their expansion plans by still extant legislation preventing media concentration which were passed in the wake of World War 2. Many smaller family-owned newspaper groups are forecast to come on to the market as they lack successors and funds for expansion into the digital arena. It has been forecast that 80 to 100 regional publishers will have disappeared by 2025.

The Suddeutsche Zeitung, Germany's bestselling broadsheet is currently being auctioned and has attracted interest from UK and US private equity companies and four privately-held German newspaper groups, SWMH, Holtzbrinck, DuMont and WAZ Group

Employees of Berliner Verlag, publishers of, amongs others, Berliner Zeitung and Hamburger Morgenpost, are in dispute with new owner Mecom. Mecom was founded in 2005 by David Montgomery, formerly Chief Executive of the UK's Mirror Group and is an acquisitive pan-European newspaper group.

Their issues include Mecom's plans to combine online and print activities, outsourcing of sub-editing responsibilities and its reputation for fierce cost-cutting.

Germany's largest newspaper publisher, Axel Springer, recently announced an 8.9% increase in revenues for the first 9 months of 2007; earnings for the period (EBITA) were equivalent to the same period in 2006 despite higher start-up costs.

Related Market Industry Reports

Germany Newspapers 2007
Snapdata's Snapshots Germany Newspapers 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the German newspaper market, and covers national, regional and other newspapers. Free newspapers are not included. Market volume is based on average daily circulation. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Germany Newspapers 2007 forms part of Snapdata's Media industry coverage.

BABY FOOD MARKET

EUROPE: DECEMBER 2007 - Organic baby foods represent over 50% of the UK market.

In the UK sales of organic produce represent over 50% of the total baby food market.

The Organic Trade Group was established by the Soil Association, the main UK accreditation body for organic food, in 2007 to represent the needs and views of organic businesses in the UK.

The Chair, Elizabeth Vann, recently expressed its disappointment to the Food Standards Agency that they had not been consulted over its response to University of Southampton research into food additives and hyperactive behaviour in children.

The thrust of their argument is that the FSA should be more prescriptive and rely less on the discretion of parents who may be less aware and less informed of the dangers.

Consolidation in the European sector continues. The EU Competition Commission approved the acquisition by Danone of Numico, the manufacturer of the Cow & Gate and Olvarit brands, with the proviso that Danone divests businesses in France, Belgium and the Netherlands. The deal has been declared unconditional and Numico shares will be delisted from Euronext Amsterdam on 28 December 2007. Nestlé completed the acquisition of Gerber in September 2007.

Related Market Industry Reports

UK Baby Food 2007
Snapdata's Snapshots UK Baby Food 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the UK baby food market, and covers wet baby food, dry baby food and others. Market value is based on retail sales. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots UK Baby Food 2007 forms part of Snapdata's Food industry coverage.

FOOD & DRINKS MARKET

AMERICAS: DECEMBER 2007 - US coffee consumption peaked in 1946.

The Economic Research Service of the United States Department of Agriculture has examined its coffee availability data, a proxy for consumption, and calculated that US per capita coffee consumption peaked in the mid-1940s. In 1946 per capita availability measured 46.4 gallons compared to 24.2 gallons in 2005. This is despite the current popularity of Starbucks and its peers.

Instant coffee, which firstappeared in 1938, was issued to troops during the 2nd World War with a consequential impact on future demand.

The subsequent decline in coffee consumption is contemporaneous with the rise in availability and popularity of carbonated soft drinks which overtook coffee in popularity in the mid-1970s.

The nadir in coffee availability was 1995 and the subsequent rise is attributed to the coffee shop phenomenon which has counterbalanced declining sales in supermarkets.

However the age demographic of coffee consumption is skewed. According to National Coffee Association data coffee is consumed by only 37% of Americans between the ages of 18 to 24 whereas 60% of 40 to 59 year olds and 74% of those over 60.

In October 2007 it was reported, although not confirmed, that Procter & Gamble had hired Blackstone to explore the sale of its Folger and Millsone coffee businesses.

Related Market Industry Reports

US Coffee 2007
Snapdata's Snapshots US Coffee 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the US coffee market, and covers instant and fresh coffee. Market value is based on sales through mass market channels. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots US Coffee 2007 forms part of Snapdata's Non-Alcoholic Drinks industry coverage.

Procter & Gamble 2007
Snapdata's The Procter & Gamble Company Company Snippet 2007 report gives an instant overview of Procter & Gamble’s company background and history. The report provides a time-saving valuable overview of the company, history, M&A activity, management, products and brands. The Procter & Gamble Company Snippet 2007 forms part of Snapdata's Company Snippets Series.

Hungary Life Insurance Market 2008

Snapshots Hungary Life Insurance 2008

Snapdata's Snapshots Hungary Life Insurance 2008 provides 2007 year-end market size data, with 2008 estimates, 5 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the Hungarian life insurance market, and covers insurance allied with investments, endowment, death and critical illness and other insurance. Market value is based on gross premium income. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Hungary Life Insurance 2008 forms part of Snapdata's Financial Services industry coverage....more

HOME & LEISURE MARKET

ASIA: New South Wales reviews the legal status of online betting.

The New South Wales Gaming and Racing Minister has announced that he is reviewing the status of online betting in the state to recoup the tax revenue currently being lost to the Northern Territory where the industry is legal.

In a separate development, Tabcorp, the owners of the Star City casino in Sydney has signed a 12 year deal with the New South Wales government which guarantees that there will be no new casinos in the state for the duration of the agreement.

In return Tabcorp will pay the government an up-front fee of A$100m. The New South Wales Treasurer stated that changes to the tax structure, incorporated in the deal, will increase casino tax revenues by 32% by 2012-2013.

Related Market Industry Report

Australia Casinos 2007

Snapdata's Snapshots Australia Casinos 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the Australian casino market, and covers expenditure on casino games. Market value is based on the total amount of money exchanged for gaming chips in casinos. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Australia Casinos 2007 forms part of Snapdata's Home & Leisure industry coverage.

TELECOMMUNICATIONS MARKET

EUROPE: Despite reporting an overall Q3 revenue increase, fixed line performs badly.

France Telecom announced Q3 results on 25 October 2007. Revenues rose 3.5% year on year on a comparable basis.

The Home Communication Services division which incorporates both fixed line telephony and ADSL reported a rise of only 0.2% in third quarter revenues.

These aggregated figures disguise a 16.4% fall in quarterly revenues from traditional phone services. France Telecom reported that this was due to a decrease in call volumes. Telephone line rental revenues decreased 3.2% despite an increase in line rental prices in July 2007.

Related Market Industry Reports

France Fixed Telephone Services 2007

Snapdata's Snapshots France Fixed Telephone Services 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the French fixed telephone services market, and covers analog, IP services, cable and digital lines telephone services. Market volume is based on the number of lines. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots France Fixed Telephone Services 2007 forms part of Snapdata's Telecommunications industry coverage.

Lithuania Fixed Telephone Services 2007

Snapdata's Snapshots Lithuania Fixed Telephone Services 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the Lithuanian fixed telephone services market, and covers residential and business fixed line telephone services. Market value is based on revenue generated. Market volume is based on the number of lines. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Lithuania Fixed Telephone Services 2007 forms part of Snapdata's Telecommunications industry coverage.

Malaysia Fixed Telephone Services 2007

Snapdata's Snapshots Malaysia Fixed Telephone Services 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the Malaysian fixed telephone services market, and covers residential and business services. Market volume is based on number of subscribers. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Malaysia Fixed Telephone Services 2007 forms part of Snapdata's Telecommunications industry coverage.

FOOD MARKET

EUROPE: Barry Callebaut increases chocolate production capacity in Russia.

Barry Callebaut, the Zurich based manufacturer of cocoa, chocolate and confectionery products, inaugurated its new chocolate factory in Chekhov, 60 kms south of Moscow, on 18 September 2007. The factory has a production capacity of 27,500 metric tonnes.

The company quadrupled its Russian sales between 2000 and 2005 and aims to further triple them within three years. It has identified Russia as its key target market in eastern Europe.

The factory will not be utilised to manufacture consumer products but will supply domestic and multi-national manufacturers and artisanal producers.

Related Market Industry Reports

Russia Chocolate Confectionery 2007

Snapdata's Snapshots Russia Chocolate Confectionery 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the Russian chocolate confectionery market, and covers loose chocolate sweets, chocolate bars, chocolate tablets and countlines. It does not include sales of cocoa and chocolate drinks. Market volume is based on consumption. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots Russia Chocolate Confectionery 2007 forms part of Snapdata's Food industry coverage.

France Chocolate Confectionery 2007

Snapdata's Snapshots France Chocolate Confectionery 2007 provides 2005 year-end market size data, with 2006 estimates, 4 years of historical data and five-year forecasts. The Snapshots report gives an instant overview of the French chocolate confectionery market, and covers tablets, bars and confectionary. Market value is based on retail sales. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. The Snapshots France Chocolate Confectionery 2007 forms part of Snapdata's Food industry coverage.

COMMERCIAL BANKING

DBS Group comfortable with their exposure to US mortgage debt.

In late August 2007 Singapore's central bank, the Monetary Authority of Singapore, issued a second warning to banks to appraise their exposure to US mortgage debt.

The warning was prompted by the DBS Group's announcement that its direct exposure to collateralised debt obligations (CDOs) was nearly double that previously announced.

DBS emphasised in their statement of 27 August that of their total SG$2.4bn holding in CDOs only 12% were directly exposed to US sub-prime mortgages. Their total CDO exposure amounted to only 1% of overall assets.

CONFECTIONERY MARKET

Cadbury-Schweppes acquires Japanese throat candy manufacturer.

Subsequent to their acquisition of Adams, Cadbury-Schweppes has made significant market share gains in the Japanese chewing gum market.

In July 2007 they acquired Sansei Foods Co. Ltd. which sells sugar-free functional candy (primarily throat lozenges) in Japan under the Teicalo and Xylicrystal brands. They have an approximate 4% market share of the total candy market and 14% of the throat candy market in which Cadbury-Schweppes is represented by Halls.

WINE MARKET

In Canada wine sales have surpassed those of spirits for the first time.

The Canadian wine industry underwent a significant transformation in the late 1980s and early 1990s as growers introduced wine quality grapes to replace the native Labrusca grape.

Between 1997 and 2005 the industry's real GDP grew at an average 7.1% as opposed to 3.0% for Canadian industry as a whole.

Statistics Canada reports that the value of wines sold in 2005 surpassed the value of spirits for the first time but at 25.2% still lagged beers which represented 50.4% of the alcoholic beverage market.

GAMES HARDWARE

ASIA: Wii's success drives Nintendo's market capitalisation.

Both Microsoft and Sony have cut the price of their core consoles in the US market. The various formats of the Xbox will see discounts of between $20 and $50.

These moves are in part spurred by the availability of the cheaper Nintendo Wii.

The Wii is outselling Sony's Playstation 3 by a factor of six in the Japanese market and a factor of 2 in the USA. This success resulted in Nintendo's market capitalisation outstripping Sony's in July 2007.

GAMBLING MARKETS

EUROPE: Television advertising by gambling companies deregulated by the 2005 Gambling Act.

The Gambling Act 2005 which comes into force on 1 September 2007 contains a number of provisions, key amongst which is the deregulation of television advertising.

Gambling companies will be able to broadcast advertisements after 9pm; sports betting advertisements will be permitted during sporting events broadcast before this watershed.

However, the Act only applies to companies based in the European Economic Area, Gibraltar or a 'white-list' of other approved domiciles. Key centres of online gambling activity such as Costa Rica and Antigua have not yet applied to join the 'white-list'.

The measures have been criticised by the Royal College of Psychiatrists as a 'recipe for disaster'.

EGGS MARKETS

AMERICAS: As the size of flocks increase, consumption declines.

Before WWII the majority of egg producers in the USA had flocks of less than 400 hens. Technological developments in the 1960s predicated the shift to large commercial farms.

There are presently 64 companies with more than a million layers and 11 with more than 5 million

Per capita egg consumption peaked at 405 in 1945, nearly 60% higher than current levels. The industry believes the explanation for the decline lies in life style changes and health concerns.

DAIRY PRODUCTS

EUROPE: Rising global milk price has varied causes and effects.

The benchmark price for skimmed milk powder in the UK has risen by 60% in the last six months. The reasons behind this increase are manifold and include factors such as the price of milk falling below the cost of production in the UK resulting in a 50% decline in the number of dairy farmers over the past ten years; severe draught in Australia impacting production and rising demand from China where consumption is predicted to further expand by 15% for the next three years.

The effect of these price rises feeds through not only into the market for pure dairy products such as milk, cheese and butter but also to products which incorporate them e.g. chocolate, cakes and pizzas.

RETAILING

EUROPE: Weather and interest rate rises impact UK retailers.

The BRC-KPMG Retail Sales Monitor for July 2007 shows that UK retail sales rose 1.2% on a like-for-like basis compared with July 2006 when sales rose 3.4%. The current rate of growth was half that experienced in the second quarter of 2007 and the slowest since November 2006.

In contrast to July 2006 which is reported as the hottest on record this July was one of the wettest. Comparisons are also impacted by the occurrence of the World Cup. Sales of food, clothing, footwear, DIY and gardening equipment have suffered whilst department stores and out-of-town shopping centres have benefited from being shelters from the frequent storms.

COAL MINING

EUROPE: Poland plans flotation in coal mining industry.

Poland's Deputy Economy Minister Krzysztof Tchorzewski announced in late July that the government could list state-controlled coalminer Katowicki Holding Weglowy (KHW) on the Warsaw Stock Exchange in late autumn 2008. The funds raised in the IPO would be used to finance investment in the company's facilities.

It is planned that other companies in the sector would subsequently be privatised although the government would retain control over the listed entities.

RETAILING

AMERICAS: E-commerce technology spend focused on systems and applications.

In a recent editorial the trade journal ''Online Retailer'' reported that online retailers are spending more on systems and applications as slower sales growth focuses attention on customer retention.

Leading online retailers are now spending between 4% and 11% of their sales revenue on e-commerce technology whereas the figure averaged 3% a decade ago. More specifically the top ten quoted retailers who derived all, or a majority of, their revenues online spent an average 7.7% which is an increase of 54.8%.

PORTS

ASIA: The Port of Rotterdam advises the Indian Ports Association.

The Port of Rotterdam was commissioned about a year ago by the Indian Ports Association to offer strategic advice to the major Indian ports.

Their key recommendations were the delegation of power downwards from the Ministry of Shipping to the individual ports and from senior management to executives within organisations.

The report also suggested that investment in mechanised cargo handling rather than increasing the number of berths would lead to economic efficiencies.

Further recommendations were for increased outsourcing and the development of transport connectivity's which would facilitate the offer of total transport solutions to clients.

MEDIA

EUROPE: The winds of change are blowing through the French business press.

Bernard Arnault's LVMH is in exclusive talks to buy Les Echos from Pearson Plc and has, according to Reuters, made an offer of 250 million Euro's.

Arnault currently owns the loss-making La Tribune and its journalists fear that if he acquired its rival he would divest La Tribune in such a manner that its future would be threatened. Financier Vincent Bolloré has declared his interest in acquiring it.

In common with their counterparts at Dow Jones the French journalists are also concerned that their newspapers' new ownership would threaten editorial independence. Christine Albanel, the French culture minister, said that the government would examine the competition implications of a sale of either or both newspapers.

RECORDED MUSIC MARKETS

AMERICAS: Music piracy costs the global industry $4.2 bn annually.

The Recording Industry Association of America (RIAA) fetchingly describe piracy as 'Old as the Barbary Coast, New as the Internet' and they are concentrating their efforts on counteracting it in all the forms in which it impacts their members. They estimate that it costs the global industry $4.2 bn annually.

The RIAA's team of internet specialists, with the assistance of a 24-hour automated webcrawler, attempts to stop internet sites that make illegal recordings available.

ADVERTISING MARKETS

AMERICAS: Brazilian city lives happily without public advertising.

In September 2006 the Brazilian city of São Paulo voted to ban all advertising in public spaces with effect from 1 January 2007.

This restriction applied not only to billboards, screens and neon displays but also to the distribution of fliers, hoardings on public service vehicles and the size of shop fascias.

Initial impressions are that the public supports the ban and welcomes its positive impact on the environment whilst the advertisers are learning to live with it.

AIRLINES MARKETS

EUROPE: Private equity demonstrates appetite for European airlines.

Private equity house TPG (formerly Texas Pacific Group) is, in conjunction with British Airways, exploring an approximately $5 bn bid for Spanish flag-carrier Iberia. It is also one of three short-listed bidders for the Italian government's 49.9% interest in Alitalia.

British Airways currently owns 10% of Iberia and has first refusal on a further 30% so is able to thwart alternative bidders.

It has been argued that British Airways should be focussing its attention on growth markets in Asia rather than consolidation in the relatively stagnant European arena.

PHARMACEUTICALS MARKETS

ASIA: Japanese pharma market suffers from 'drug-lag'.

The Japanese pharmaceutical market is the second largest and constitutes approximately 13% of the global total but exhibits slower growth than the world average. It is also one of the few high-tech industries in Japan that runs a trade deficit which is currently $3 billion annually.

The market is in a state of 'drug-lag' as it takes, on average, 3.5 years longer for a drug to hit the market than in the USA or Europe. In 2004 36% of the 88 top selling drugs were not available in Japan.

ISP MARKETS

ASIA: Broadband will overtake dial-up in India by 2008-9.

The Internet & Mobile Association of India (IAMAI) estimate that broadband connections will overtake dial-ups in India in 2008-9 and will have a marketshare of 75% in 2009-10.

This growth is driven by the push into small towns by the telecom companies and the increased offering by cable companies of 'last mile' connectivity.

The price of bandwidth has recently fallen by 40% which will be an additional growth driver especially amongst SMEs and internet cafés although home access will also grow significantly.

AUTOMOTIVE MARKETS

EUROPE: Russian car market thrives whilst others stagnate.

The Russian car market has been enjoying a high level of growth whilst those of North America and Western Europe have been stagnating. It is now the 8th largest globally and the 5th largest in Europe.

Key drivers of this growth are the increasing wealth consumer wealth, a burgeoning credit market following liberalisation and the increasing competitiveness and availability of foreign brands; growth has been highest in the domestically produced foreign sector.

As car density in Russia is 180 cars per 1,000 people (compared with figures of 512 and 552 for the UK and Germany respectively) there is capacity for continued growth.

CONSUMER MARKETS

ASIA: Growth in Chinese consumption.

In 2006 Credit Suisse conducted a survey amongst 2,700 respondents in 8 Chinese cities.

Further estimates state that Chinese consumption would grow to 8.6% by 2010 to be ranked third after the United States and Japan. The figure is estimated to be 21.8% by 2020 when the United States is estimated at 34.6%.

In 2006 China's consumption accounted for 5.4% of total consumption out of the major economies in 2006, ranking joint fifth with Italy, with the United States at 42%, Japan 11.1%, Germany 7.3% and Britain 6.6%.

CONSUMER MARKETS

EUROPE: Latvia is currently a nation of borrowers not savers.

In an interview with Republika.lv magazine Uldis Cerps, head of the Latvian Finance and Market Commission (FKTK), said that Latvia's financial market is primarily based on the banking sector which accounts for more than 96% of the whole financial sector; the insurance market constitutes about 3% while the share of other segments does not exceed 1%.

He states that this state of affairs indicates the low level of domestic savings which is typical of a transitional economy. The Latvian market is dominated by a borrowing rather than an accruing culture fostered by high global liquidity resulting in low interest rates.

CONSUMER MARKETS

EUROPE: Effects of smoking bans.

On 1 July 2007 a smoking ban will be imposed on all public places in England; in Wales the ban will take effect on 2 April 2007. Bingo clubs will be included within the ban.

A ban on smoking has been in place in Scotland since March 2006. The Scotsman newspaper reported in February 2007 that at least 8 bingo clubs had subsequently closed in Scotland and Rank Plc (owners of Mecca Bingo) reported on 2 March 2007 that revenue from its Scottish clubs had fallen 15% since its introduction.

However a survey conducted by Littlewoods Bingo Online (who run online bingo games) discovered that 76% of participants in England agreed that smoking should be banned in bingo clubs.

CHINA AUTOMOTIVE

ASIA: China is now a net passenger vehicle exporter.

In a survey conducted by Deloittes, Chinese automotive executives estimated that the proportion of exports to total sales of automotive products will grow from 14% in 2006 to 28% in 2010.

China first became a net exporter of passenger vehicles in 2005 when exports grew 224% over the previous year. The majority of vehicles went to developing countries.

Several factors identified by Deloittes have served to dent industry optimism:

excess capacity resulting in a steep drop in prices;

reduction in profitability as cost reductions lag price reductions;

reduction in vehicle import duties.

AUTOMOTIVE

EUROPE: EU strategies for the European automotive industry.

European Union President José Manuel Barroso stated in February 2007 that, "The EU car industries are at the core of our economies. By positively taking up the climate change challenge, they will preserve and enhance their competitiveness in the long term. This is of crucial importance for consumers and workers alike. The strategy we adopted today covers the strategic issues - from road safety to the environment to research - that if addressed in a timely fashion will make sure that the EU car industries will remain strong and innovative world leaders."

The strategy he refers to involves the reduction of administrative burdens, reduction of CO2 emissions (incorporating both technological changes and the increased use of bio-fuels), research and development (clean renewable fuels and vehicles and intelligent vehicles and roads have been identified as core research priorities within the EU), trade (proposals to assess the potential of using bi-lateral trade agreements, particularly in the Asian region, to improve market access and reinforce the need to enforce intellectual property rights globally).

New Posts for 2007