Ria-Novosti reports that first deputy prime minister Igor Shuvalov believes the path towards a customs union with Belarus and Kazakhstan is clear.  Bank of America Corp. has increased Russia's economic growth forecast for 2010 to 3.9% from 2.4%.  Citigroup Inc. estimates that Russia's economy will grow faster than previously estimated, according to Bloomberg.  Arabtec Holding has started foundation-test work on the Gazprom tower.  Sberbank may sell its stake in Opel to VEB, if a sale to GAZ Group falls through, Reuters reports.  President Medvedev has told German Chancellor Angela Merkel that he is willing to provide state guarantees for Opel investments in Russia, says Reuters.  A possible windfall for Avtovaz: the company may be assembling Nissan cars by 2012.  The Telegraph reports on tough times for the Lada.  The Times reports that Yelena ...

An investment arm of Goldman Sachs Group Inc. (GS) is poised to invest about $250 million in Geely Automotive - China's largest privately-owned carmaker - by purchasing the company's convertible bonds and warrants.

Geely Automotive is the Hong Kong-listed arm of Chinese automaker Geely Holding. Goldman Sachs Capital Partners will buy convertible bonds and warrants issued by Geely's Hong Kong-listed subsidiary. The deal is almost complete, but some technical details of the investment are still pending. Confirmation of the deal could be announced as early as this week.

Geely plans to use the proceeds from the Goldman investment to boost its production capacity, which could free up capital for its parent to bid for Volvo. Geely's parent company has made global headlines in recent weeks after contemplating a bid for Volvo, the Swedish car brand owned by Ford Motor Co. (F). A successful deal would boost Geely's profile and

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Although some parties may be pleading its case, a Nomura analyst says that Russia will not need to fall back on a second ruble devaluation, Bloomberg reports.  Central Bank Chairman Sergey Ignatiev has suggested that policy makers may decrease the bank's benchmark interest rates as early as this month as the ruble has stabilized and inflation appears to have lessened.  The submitting of the budget, which usually opens the fall session of the state duma, will be delayed until October 1st due to disagreements over its terms.  The Moscow Times relays Communist Deputy Sergei Obukhov's complaints that the budget will be hurried through without deputies being correctly informed.  With demand for cars plummeting, Renault plans to create a series of car part manufacturers, ready for when the market rebounds.  Sberbank has announced a net profit of $194 million in ...

General Motors advisers are apparently recommending that the company walk away from Magna's Merkel-backed bid to acquire Opel and instead seek out aid from other European governments to retain control of the unit itself.  'Every day counts for workers and for the economic situation' the German chancellor has said, asserting that a decision is needed 'urgently'.  Russia's direct foreign investment fell by the most on record, 45%, in the first six months of the year.  Steel-maker Mechel has said that it plans to place $316 million worth of bonds before 2009 is out.  The stock market has shown resistance to the threat of violence in the Caucasus, says Reuters, despite a Chechen separatist website declaring 'economic war' on Russia.  ITAR-TASS reports that a new anti-monopoly law will be put in place to prevent bureaucrats and businessmen ...

Asia is poised to become the “new” Detroit.

Here in the United States, at a cost of a mere $3 billion, the “Cash-for-Clunkers” program appears to have given new hope to the U.S. auto industry.

But that new hope is destined to be short-lived.

It’s true that - in terms of value delivered for the money invested - “Cash for Clunkers” has eclipsed every other stimulus program that has been tried. But the program has a projected lifespan of only three months, meaning it can’t reverse the powerful global forces that are destined to turn the U.S. auto market from leader to laggard on the global stage.

Financial Crisis Fallout Reshapes Sector

Thanks to the financial crisis whose impact continues to be felt, worldwide automobile demand had dropped on an overall basis since 2008.

But regional differences are already emerging.

In the United States, for instance, the benchmark seasonally adjusted annual sales rate (SAAR)

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OK, folks, this has gone far enough.  There's no need for the United States and Europe to continue in their unchecked and outrageous aggression against Russia, renewing Cold War tensions and antagonism, no matter how jealous they are of her powerful resurgence.  Sure, sure, I know:  Russia has been running its nuclear subs up and down the coasts of Canada and the United States, flying bomber patrols, stealing the arctic, proposing to stick missiles 300 miles from Berlin, arming Venezuela to the teeth, and diplomatically insulating everyone from the Sudanese, Burmese, and Iranians from any international action. Those lefties can talk all they want about the long string of murdered journalists and human rights critics - big deal!  Other russophobic extremists ...

TODAY: Merkel condemns activist murder; explosive violence in Caucasus; South Ossetians encouraged to disarm.  Medvedev merciless on Yushchenko; Venezuela and Russia tighten relations; military may scrap underperforming missile.  'Absolutely unacceptable' is how Chancellor Angela Merkel described the recent murders of NGO worker Zarema Sadulayeva and her husband  and instructed Medvedev that 'actions must also follow'.  Medvedev has ordered Chechen leader Ramzan Kadyrov to punish those responsible for the slayings.  The end of last week andthr beginning of this week are particularly bloody in the Caucasus, with over twenty people killed in different shootouts.  The New York Times reports that South Ossetian citizens, for whom 'a weapon is an essential part of daily life', are being ...

An article in Reuters looks at the impact the war in Georgia had on the stock market, as a marker of what could potentially happen in the volatile post-Soviet region as a whole.  Fitch ratings has raised its forecast for the fall in Russia's GDP next from 0 to 7%, but the economy is likely to grow by 5%.  Russia's grain harvest may amount to 85 million metric tons in 2009 compared with 108 million metric tons last year, following droughts.  Regions that have suffered from droughts this year will receive up to $3.2 billion in state aid.  GM's opposition to Magna as a buyer for Opel is apparently wavering, as Chancellor Angela Merkel may intervene and step up the pressure to seal a deal.  Sberbank has said it has signed agreements with steel maker Evraz to ...

General Motors (MTLQQ) is in talks with Canada-based auto parts supplier Magna International (MGA) and Brussels-based industrial investment group RHJ International for a stake in its European Opel/Vauxhall business.  Apart from the two companies, GM had earlier received bids for its Opel from China's Beijing Automotive Industry Corporation (BAIC). However, the company turned down BAIC since it was a major competitor in its most significant growth market – China. BAIC's chances are now rest mainly on GM’s failure to reach a deal with the other two automakers. If succeeds, BAIC would expand its operations in China as it had drafted plans to spend $2 billion on an Opel facility in the country.  Rumors had also spread that Italian auto major Fiat (FIATY) is vying for Opel, which would make it number two in Europe. However, the deal has not yet materialized on account of ...

Putin has warned beneficiaries of VEB's emergency loans not to get used to extending their loans.  Shalva Chigirinsky may not return to Russia after reportedly failing to show up for questioning regarding a tax evasion case.  The Guardian scrutinizes the beleaguered billionaire's claim that Yelena Baturina holds a 50% share in Sibir Energy.  China has apparently criticized Russia for the closure of Cherkizovsky Market due to contraband, saying that red tape has long prevented Chinese workers from being able do trade lawfully.  Former CEO of electronics chain Eldorado, Alexander Shifrin, has been put on an international wanted list for tax evasion.  Belgium's RHJ International is offering $389 million for a majority stake in Opel in a last minute attempt to beat Magna.  Joblessness figures and wage arrears actually fell last month to a six-month low ...