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Mercedes is seeing signifcant sales growth in China. It is Mercedes's third biggest market with sales of 100,000 cars compared to 67,000 in 2009. Daimler CEO Dieter Zetsche says that given no downturn in the world economy Mercedes-Benz cars should reach its target for return on sales of 10% by the second half of 2012. He predicted EBIT of 2.5-3 billion euros for 2010, and plans to boost expenditures for R&D in fuel efficient technology and capital investments in new vehicle models in the second half of 2010. Analyst Warburton at Sanford and Bernstein, writes that Mercedes is likely to pass 7% margins in the first half of 2010, and will get a boost from a weaker euro plus strong sales in China. The only question is, as Dieter Zetsche noted, prospects depend on no downturn in the global economy. China's economy is growing too fast to be sustainable growth and a property bubble is developing, and its not certain how long strong sales in China will last. There are other signs of a slowdown in the global economy. See global economy....

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The Ministry of Commerce in China conducts anti-monopoly reviews and sets rules for which divestments need to occur in merger arrangements. In the Pfizer merger with Wyeth, the Ministry required Pfizer to sell a Chinese swine vaccine business to Harbin Pharmaceutical Group.. The concern- Pfizer could control 50% of the swine vaccine business in China with some 500 million pigs. Five other merger and acquisition transactions have come under review. Coca-Cola's $2.4 billon acquisition for a Chinese juice maker is stalled. Novartis and Eli Lilly showed interest but the Ministry of Commerce preferred to steer things to a Chinese player. In future it is expected that rules will favor up and comig local companies over large foreign companies.

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The Buick Regal is turning out to be just the car for going after younger buyers, and going after Gen Y buyers, buyers who have appeared so elusive for GM. It handles like European cars in its ride, and this reviewer compares it to a Peugeot. It was almost an accident in the way it was developed. It started as the development of a global, midsize front-drive platform at GM's Opel division in Russelsheim, Germany in 2004. At the time it was to be the next generation Saturn Aura for the US, but with Saturn closed down, it was renamed Buick. In Germany its called Opel Insignia. In China where Buick sales are growing rapidly, this car is called a Buick. This car is getting great reviews and is a part of the new rebirth of GM.

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In a strategic move to fill a gap in its competition with Tesco and Sainsbury in Britain, Wal-mart has decided to pay 778 million pounds for Denmark's Netto chain's 193 stores in Britain. Tesco has ben expanding with new store formats and has built a sizable presence with smaller stores. Customers in Britain like the advantages of shopping in smaller stores, with older customers or customers in small households preferring to buy often and as needed rather than make a long drive to a distant location for bulk purchases. Wal-mart in Britain was seeing its share of the grocery market at 17% slipping in relation to Tesco's 30% share. Efforts to open its smaller stores of 8000 square feet have run into tight zoning regulations and it has only 25 such stores so far. The Netto acquisition helps fills this gap. It still will not have the same quality of locations that Tesco and Marks & Spencer have, which are better centrally located, and in busy residential areas. It still is a much needed move into convenience retailig for the Asda business of Wal-mart....

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Lenovo shows a profit of $129 million for this fiscal year compared to a net loss of $226 million in the prior year. Revenues in the 1st quarter of 2010 went up to $4.32 billon from $2.77 billon with proft at $13 million. Margins are still under pressure because of growth in the lower priced PC market segment. Gross margins fell to 10.4% this year. To diversify Lenovo has introduced the Le Phone with China Unicom (Hong Kong) and sees sales of its mobile phones exceeding Apple's iPhone sales. It has also developed a prototype of a tablet PC in January 2010. PC shipments in China of $2 billon account for 45% of 3rd quarter revenues- up 67% in China's fast growing PC market. And Lenovo's plan is to expand sales in India, Russia and Turkey, from the current 5% in the fourth quarter ending March 31, 2010, to double digits.

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Daimler and China's BYD Company are setting up a 50-50 joint venture to develop an all electric car for China's market. The total investment is for $87 million and the venture name is Shenzen BYD Daimler New Technology Company.

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After recalls of some Propofol anesthetic product in July 2009, Teva Pharmaceutical has decided to stop making the anesthetic. The FDA had found significant manufacturing violations at Teva's Irvine plant.