Taoiseach (Prime Minister) Enda Kenny triumphantly declared an end to the “era of the bailout” on Saturday. He said Ireland would become the first euro zone country to exit its bailout, and it may even do so without a financing backstop from the rest of Europe. (Read More: Ireland risks long-term pain for short-term gain ) Meanwhile, the Ernst and Young ITEM Club said in a new report on Monday that the U.K. government’s “Help to Buy” mortgage guarantee scheme would lead to a rapid improvement in prospects for the housing market, and added that fears of a housing bubble were unfounded. Japan and Hong Kong were shut for public holidays on Monday. U.S bond markets were also closed for the Columbus Day holiday. Peugeot in talks to raise cash CNBC’s Stephane Pedrazzi reports on developments at Peugeot-Citroen. The stock tumbled following news the French government could take a stake in the carmaker. In stocks news, shares of French car maker Peugeot Citroen closed around 9 percent lower, after reports that the firm was ready to raise 3 billion euros ($4 billion) via a capital hike. (Read More: Peugeot stock tumbles on rights issue reports ) Dassault Systemes warned on revenue on Monday, saying it would be sharply lower than expected this year; shares in the French software maker closed provisionally 10.53 percent lower. Royal Mail shares continued trading higher on Monday, after its conditional trading period started on Friday.
Europe needs to rethink tourism to stay on top
The European market is bottoming out and the next months will probably see a slow improvement, said Frank Schwope , a Hanover, Germany-based analyst with NordLB. After refraining from buying a new car because of the economic crisis, vehicles are now so old that they cant be repaired any more and need to be replaced. September European sales at Renault, based in the Paris suburb of Boulogne-Billancourt, rose 22 percent, while Stuttgart, Germany-based Daimler, the third-biggest maker of luxury vehicles , reported a 12 percent increase. Demand at regional market leader Volkswagen AG (VOW) climbed 5.8 percent. Improving Market The September gain, which included one more working day than a year earlier, was the biggest since a 7.8 percent jump in August 2011 and the third for this year. Still, deliveries — which include European Union members as well as Switzerland, Norway and Iceland — are set to contract in 2013 for a sixth consecutive year and hit a two-decade low. The situation is clearly improving, Carlos Da Silva, a Paris-based analyst with IHS Automotive, said in an e-mail. Europe is not in brilliant shape, yet the underlying trend of the market is calling for a certain dose of optimism. Among the regions five biggest markets, Spain posted the largest increase. Sales rose 12 percent in the U.K., where consumer confidence was at a six-year high in September, and climbed 3.4 percent in France . Registrations fell 1.2 percent in Germany, Europes biggest economy, and 2.9 percent in Italy . Renaults deliveries were helped by a 40 percent surge at the no-frills Dacia brand, which the automaker started selling in the U.K. in 2013. Dacia in the last two years has introduced new versions of the Sandero hatchback and Logan sedan, while the namesake marque has brought to market its first compact crossover, the Captur, as well as a revamped Clio hatchback. New Models Daimlers delivery gain was propelled by a 14 percent jump at its Mercedes-Benz brand, which added the CLA four-door coupe in April as part of a compact car push that includes a new version of the van-like B-Class and a redesigned A-Class hatchback. The German carmaker also presented an overhauled S-Class sedan in May and brought a revamped upscale E-Class to market in April.
In particular it is focussing on China, the world’s top emerging market where the ranks of the middle class are swelling. “When the Chinese tourists come to Europe, they don’t just want to visit the Eiffel Tower or the Colosseum. They also want to see a beautiful blue sky” Santander explained. ETC research in China underlined that residents of its megacities face a constant battle with pollution — a simple fact that enables Europe’s tourism industry to add pure-aired Alpine stops to group travel itineraries. The study also said that Chinese travellers place great store in feeling at ease and safe, with language barriers a leading concern. “The Chinese are looking for very safe destinations because many of them don’t speak a European language. They want to see more adaptation. It means that hotels or restaurants should provide them more brochures or menus translated into Chinese,” Santander said. Increasing use of social media in emerging markets makes it crucial to understand what tourists want, because they are increasingly likely to write reviews of their experience online. Industry officials underline that it is also important to understand the needs of Chinese tourists and counterparts from emerging powers India and Brazil, given that competition is getting tougher with destinations such as Florida, Las Vegas or Dubai. “In Dubai, tourism is not just an extra, it’s not just a nice thing to have. It is fundamental to how the whole state will develop,” said James Philipps, vice-president for Europe, Middle East and Africa at Fit Hotel Sourcing, which is part of the GTA Travel group.