Europe August Car Sales Drop As Demand Lowest On Record
Europe shares close lower after Bullard comments
The company released a study Wednesday that shows how more and more cables are connecting in Europe because of the availability of large exchanges such as the Amsterdam and Frankfurt Internet exchanges. From the story: Europe is an attractive Internet hub because it is home to many large carriers and major Internet exchanges, and IP transit prices are among the lowest in the world, said TeleGeography analyst Paul Brodsky. New cable builds in Africa and the Middle East have enabled international operators to access inexpensive IP transit directly in European cities instead of connecting much further to the U.S. Subscribe to gigaom.com Overall the growth of global bandwidth is slowing, but operators still are adding 26 Tbps of capacity this year, more than even existed in 2009. But as the growth slows, the center of the bandwidth universe is shifting. International internet capacity connected to Europe increased by 18.5 Tbps in 2013, growing most rapidly between Europe and Africa. Europe now accounts for 94 percent of international internet bandwidth connected to North Africa, up from 61 percent ten years ago, and 72 percent of bandwidth connected to Sub-Saharan Africa, up from 39 percent a decade ago. Growth in European connectivity is equally sharp for the Middle East, which has seen its bandwidth connected to Europe increase from 51 percent to 85 percent in the past ten years. So Europe is in the right place for internet growth in the rest of the world, but its prices for transit are also lower because so many providers connect at internet exchange points on the continent. That competition between IXPs tends to lead to lower pricing. Related research and analysis from GigaOM Pro:
What Europe can teach us about keeping the Internet open and free
One way to find out is to look at what other countries have done. Experts point to Europe, where nations have committed themselves to something called local loop unbundling. That’s a fancy term for when major network operators are required to share the infrastructure they built with other service providers. In France, unbundling dropped the costs of starting a new ISP to attractive levels. Start-ups didn’t have to worry about laying their own cables; they just piggybacked off the existing ones. As the market flourished with more ISPs, according to the New America Foundation’s Danielle Kehl, some of those providers even began building their own Internet infrastructure that could compete with the big carriers. As a result, a 100 megabit-per-second, triple-play bundle now costs around $35 which is 17 times as fast and roughly half as expensive as the most cost-effective Internet plan in the United States. The U.S. market could have turned out much like that. In fact, with the telephone industry, it did. But then the FCC decided not to regulate broadband the same way.
The U.K. FTSE closed down 0.4 percent, the German Dax closed down 0.2 percent and the French Cac closed up 0.1 percent. Bullard emphasized in an interview with Bloomberg the role that economic data has played, and will continue to play in Fed decisions “This was a close decision here in September,” he told the network. Europe stocks started the day in negative territory, bringing an end to the broad rally which started after the Federal Reserve surprised markets by opting to maintain its $85 billion-per-month asset purchases. However, Bullard’s comments on Friday backed up the belief that the Fed still plans to taper soon. In Europe, German voters are preparing to go the polls in Sunday’s general elections . The current chancellor, Angela Merkel, is expected to win a third term in office, but the future composition of the governing coalition remains unclear. It is possible that Merkel might have to form an alliance with the rival Social Democrats party (SPD). In Asia, Indian equities led the region lower on the final trading day of the week, after the Reserve Bank of India (RBI) unexpectedly raised interest rates. India’s Sensex index closed down 1.8 percent, Japan’s Nikkei index ended just below the flatline and Australia’s S&P ASX 200 fell off the previous day’s five-year high. (Read More: India unexpectedly hikes rates, shares tumble ) Elsewhere, die-hard Apple fans in Asia and Europe lined up outside stores for the launch of the tech firm’s latest handsets.
Renault CEO Carlos Ghosn said last week that the car market may expand slightly more than 1 percent in 2014. Fords Strategy Ford Motor Co. (F) s European sales decreased 0.9 percent in August. Stephen Odell, head of the Dearborn, Michigan-based carmakers business in the region, said on Sept. 9 that it does feel like were running along the bottom of the auto-market contraction. He outlined plans for Ford, which is forecasting a loss of $1.8 billion in Europe for 2013, to expand model introductions over the next five years to 25 from an earlier projection for 10 new vehicles. Bayerische Motoren Werke AG (BMW) , the worlds biggest luxury-vehicle producer, posted 9.9 percent more registrations in Europe. Sales in the region at Daimler AG (DAI) rose 5.5 percent as the Mercedes-Benz division, the third-ranked luxury-auto maker, reported an 8.5 percent gain, versus a 24 percent plunge in demand for two-seat Smart cars. Chief Executive Officer Dieter Zetsche said at the Frankfurt show that Mercedes doesnt have enough production capacity to meet global demand as sales of its A- and B-Class compacts grow. Opel Models General Motors Co. (GM) s sales in Europe last month rose 0.7 percent as an 18 percent gain by the Chevrolet brand more than offset a 3.4 percent decline at the Opel division. Karl-Thomas Neumann, head of Opel, said on Sept. 11 that the Adam city car and Mokka compact sport-utility vehicle have helped stop a market-share decline in the region. The models are part of a reorganization that includes a German auto-plant shutdown and pay freeze for remaining workers as Detroit-based GM seeks to restore profit in Europe after accumulating $18 billion in losses in the region since 1999.