Ramzi blog

Ford may add shifts at some U.S. plants

SAN FRANCISCO (Reuters) – Ford Motor Co will increase production for deliveries to its U.S. dealers by 13 percent in the first quarter of 2011 and may add third shifts to some of its plants, Ford sales executives said on Sunday.

Ford, which increased U.S. sales by 19.5 percent in 2010 to 1.93 million, said many of its plants are working overtime and can further ramp up production with more shifts to respond to higher sales.

"You should expect continued increases as the year goes on," said Ken Czubay, Ford U.S. sales chief.

Czubay and Jim Farley, Ford global marketing chief, spoke to reporters after Ford executives met with U.S. Ford dealers at the National Automotive Dealers Association annual convention at San Francisco's Moscone Center.

Czubay said the company is "studying" adding third shifts at some of its U.S. plants to meet higher demand, but has no definite plans to do so.

"We are looking at it on a vehicle-by-vehicle basis," Czubay said.

"All the plants right now are running flat out relative to our ability to get the suppliers together. We are running full out," said Czubay.

In the past months, Ford has had to slow and stop production at some of its plants due to a lack of supplier parts.

Farley said that retail demand was up 27 percent in January.

"So we are trying to catch up with just customer demand," Farley said.

Czubay said the new version of the Ford Explorer SUV is leading the sales, and that inventories of that product are tight for dealers.

Czubay said there are also low days of supply for the Ford Edge SUV, the Focus and Fiesta small sedans and the Lincoln MKX. Farley said that days of supply are in the single-digit level for the Explorer.

"Demand is high for new product across-the-board," said Czubay.

(Reporting by Bernie Woodall; editing by Gunna Dickson)

Spanish banks display risky appetite for property

MADRID (AFP) – They are officially banks but they have become Spain's main real estate agents, according to data from the country's banking sector which reveals the extent of their risky property assets.

The Bank of Spain had asked all 17 of the country's fragile regional savings banks, which account for about half of all lenders, to supply it with details of their exposure to the collapsed real estate market.

Unsurprisingly, the savings banks held far more risky assets than the main banks, based on a calculation of the figures last week by AFP.

The nation's seven main banks held 45 billion euros ($61 billion) in risky assets and the 15 of the savings banks that have so far published their figures had around double that, or 90 billion euros.

The difference is due to the huge amount of mortgage loans -- some 164.9 billion euros worth -- that the savings banks handed out during the property bubble, whereas the main banks only issued some 77.5 billion euros.

The savings banks are at the heart of market fears that Spain could need a bailout like the ones granted Ireland and Greece last year.

If the savings banks are unable to cope with losses from their exposure to the collapsed property sector, investors fear they will need massive government help.

But analysts noted that the total declared amount of risky assets, 135 billion euros, is much less than the Bank of Spain's estimate at the end of June, which put figure at at 180.6 billion euros.

"The numbers that emerged were generally below those of market estimates," said Juan Jose Fernandez-Figari, an analyst with Spanish brokerage firm Link Securities.

"The numbers that the market could cope with, in the worst case scenario, were much higher than what we're hearing about" now, said Jose Luis Martinez Campuzano, a strategist at Citi. And "the market response is very positive."

Since the first figures began appearing earlier this year, the Madrid stock exchange has gained almost 10 percent.

Of the 90 billion euros in risky property assets held by the savings banks, 29.4 billion euros are non-performing loans, or those that may not be repaid, and 27.5 billion euros of "sub-standard" loans at risk of default. The bad loan rate even reached as high as 45% at the Cajasur BBK savings bank.

The savings banks also have 33.1 billion euros of real estate assets from seizures, the value of which approximate because they have depreciated since the bubble burst on the country's property market in 2008.

U.S. to press China on trade promises in 2011

WASHINGTON (Reuters) – U.S. trade officials on Wednesday said they have made significant progress with China on an array of trade policies threatening U.S. technology and intellectual property rights and would focus in 2011 on ensuring those new commitments are implemented.

"I think the results we were able to achieve this (past)

year really does show the value of deep engagement with China in trying to resolve issues," Deputy U.S. Trade Representative Demetrios Marantis told reporters at a briefing.

Chinese President Hu Jintao's recent visit to Washington capped a year of steady progress on "indigenous innovation" policies that threatened to require U.S. companies to transfer technology to China in order to participate in that country's vast government procurement market, Marantis said.

China also has made promises to increase use of legal software and to crack down on Internet piracy that the United States will be closely monitoring this year.

"The follow-up is going to absolutely critical because credibility matters and durability matters," said Claire Reade, assistant U.S. trade representative for China.

(Reporting by Doug Palmer, Editing by Sandra Maler)

Speech Fuels Speculation of Bachmann Presidential Bid

Rep. Michele Bachmann, R-Minn., spurred further speculation she mightbecome a contender for the Republican Party's presidential nomination byappearing as the Tea Party Express spokeswoman after PresidentBarack Obama's 2011 State of the Union address. Bachmann delivered a six-minutespeech to activists, but the speech was also televised. The congresswoman'sresponse to the State of the Union address was widely considered muchtougher than the mainstream Republican response, given by Rep. Paul Ryan, R-Wis.

Bachmann was elected to represent Minnesota's sixth Congressionaldistrict in 2006, and went on to found the House Tea Party Caucus. Heroutspoken positions have ensured her a prominent place within theconservative tea party movement, with some regarding her as being a ,only without the negatives. Bachmann has made moves to test the watersby speaking in Iowa, with that state's caucus serving as the first eventin the Republican Party's nomination process. She made her secondappearance in Iowa on ,and as Bachmann makes more appearances in the Hawkeye State, she willonly deepen speculation about her presidential intentions.

However, all the speculation does not mean Bachmann is astrong candidate, either nationally or within the Republican Party. places Bachmann near the bottom of the pack, far behind the bigcontenders of 2008, Mike Huckabee and Mitt Romney. Bachmann is also notquite as popular within the Republican Party as her fame might suggest,as she was by her party's leadership during the recent transition of power in theHouse of Representatives. Yet Bachmannwould surely profit if Palin (who ranked in the middle of thatpoll) were to stay out of the contest, the Iowa Caucus is still a year away, and inpolitics everything can change over the course of a year. Nonetheless, the early numberssuggest an uphill struggle for the Minnesota congresswoman.

Bachmann's presidential prospects are also shaped by how she might fare in a national election. As races such astea party favorites sometimes have little or no appeal outside ofRepublican circles. Palin herself underscores this, as the formerAlaska governor remains as she is wildly popular within conservative circles. Bachmann is alsoprone to Palin-like gaffes, such as her recent (inaccurate) comments that theFounding Fathers worked "tirelessly" to abolish slavery, which lead

China's Hu to engage in rare Q&A with media in US

BEIJING – When it comes to public appearances, China's president is no Barack Obama.

Stiff and media-averse, the 67-year-old Hu Jintao will be stepping out of character when he takes questions from reporters after meeting the U.S. president on Wednesday. It's a White House demand that could create some awkward moments, but Hu is willing to take the risk to improve China's image abroad.

Hu also wants to burnish his statesman credentials at home.

"China's rising international status is increasingly a source of legitimacy for the government, and Chinese leaders want to exploit this nationalist sentiment as much as they can," said Joseph Cheng, who heads the Contemporary China Research Center at the City University of Hong Kong.

The news conference isn't China's only bid to influence American public opinion during Hu's visit. A minute-long video featuring Hong Kong action film star Jackie Chan, Houston Rockets center Yao Ming and other Chinese celebrities began running on six outdoor monitors in New York's Times Square on Monday and will continue through the middle of next month. Shorter versions will run on television.

The Chinese president left Beijing on Tuesday for the four-day trip, but even his departure shunned publicity — a stark contrast to the stream of images that accompanies the taking off and touching down of American presidents. The state-run news agency issued a terse dispatch only after Hu's plane left.

While Hu is seen on state TV in China almost daily, his appearances are always set pieces: speeches, attendance at important meetings or carefully scripted interactions with farmers, workers and students. The only high-level news conference of the year is conducted by his premier, the more personable Wen Jiabao.

Hu has taken questions in public before, mostly on overseas visits but also notably at a 2005 news conference with President George W. Bush in Beijing. But he refused to do so when Obama visited in 2009; instead, the two leaders stood stiffly in the Great Hall of the People and read statements to reporters.

On the eve of this trip, Hu responded in writing to questions from The Wall Street Journal and The Washington Post. In addition to publishing news reports from the interview, both posted the Q&A online. But there were questions Hu refused to answer, for instance, one on jailed dissident Liu Xiaobo, who won the Nobel Peace Prize.

Though Hu is purported to have been a skilled ballroom dancer in his university days, he seems to lack the affinity for public displays that his predecessor, Jiang Zemin, was famous for. Jiang held his own against then-President Bill Clinton in a news conference broadcast live in 1998, and he once tried to coax Queen Elizabeth II into singing karaoke.

Hu is known for his photographic memory and meticulous preparation and will likely come well-armed with stock answers to deflect questions on sensitive issues such as human rights. While he may not win the hearts of the American public, he may blunt some of the harsher criticisms, Cheng said.

"He wants to try to do a little public relations and get his message across," he said.

Four questions will be allowed at the news conference, two from Chinese reporters and two from U.S.-based ones.

Tough queries could come on trade and exchange rates, China's growing military, Taiwan, North Korea and Iran.

One sticky issue is China's imprisonment of Liu, the dissident Nobel laureate. If asked about Liu, Hu can be expected to reiterate China's portrayal of him as a dangerous anti-government radical whose call for sweeping political reform amounts to subversion.

Other touchy subjects include the party's brutal suppression of the Falun Gong spiritual movement and support for despots in North Korea, Myanmar and Zimbabwe and the authoritarian government in Sudan.

The Chinese government is likely hoping that questions will revolve mainly around the joint statement, which is not expected to touch on human rights, said Renmin University international relations professor Shi Yinhong.

Wednesday's news conference may be the only spontaneous public moment in the entire visit, which includes a luncheon speech, meetings with congressional leaders, a state dinner and a stop in Chicago on the way home.

The visit begins with a small informal dinner at the White House following his arrival Tuesday night. After a formal welcoming ceremony Wednesday morning, Hu will go into talks, first in a small-group session in the Oval Office and then an expanded meeting in the Cabinet Room and discussions with business leaders.