Japan interest rates kept on hold

Japan's central bank has kept its key interest rate unchanged at just above zero and underlined its determination to overcome deflation. As widely expected, the board of the Bank of Japan unanimously opted to keep interest rates at 0.1 %. It said the world's second largest economy was improving, but further government support was needed to maintain the recovery. The board also said overcoming deflation was a "critical challenge". Falling prices "Japan's economy is picking up mainly due to various policy measures taken at home and abroad, although there is not yet sufficient momentum to support a self-sustaining recovery in domestic private demand," it said. The board added it expected Japan's economy to shrink by 2.5 % in the current financial year, an improvement on its previous estimate of a 3.2 % contraction. It also forecast growth of 1.3 % for the 2010-2011 financial year, up from its previous estimate of 1.2 %. The bank was less optimistic about deflation, saying that prices were likely to continue falling for three years. "The bank recognises that it is a critical challenge for Japan's economy to overcome deflation and return to a sustainable growth path with price stability," it said. Revised outlook Some analysts expressed disappointment at the government's attempts to stop prices falling. "I think deflation will be deeper than they think. I find it very disappointing that the central bank has decided not to change its policy," said Darius Kowalczyk, chief investment strategist at SJS Markets in Hong Kong. "They should expand their quantitative easing policies and be more aggressive, like Western banks were during the crisis." Standard & Poor's credit rating agency also expressed concern about both deflation and the high levels of Japanese government debt. It affirmed the economy's AA rating, but revised its outlook down from "stable" to " negative".

UK economy out of recession

The UK economy has come out of recession, after figures showed it had grown by a weaker-than- expected 0.1 % in the last three months of 2009. The economy had previously contracted for six consecutive quarters - the longest period since quarterly figures were first recorded in 1955. There have been recent recovery signs - last week, UK unemployment fell for the first time in 18 months. The UK's had been the last major economy still in recession. Europe's two biggest economies - Germany and France - came out of recession last summer. Japan and the US also emerged from recession last year. The weak level of growth took its toll on the value of the pound, which fell against both the dollar and the euro on the money markets. 'Below expectations' "We can say that Britain has just crossed the line in coming out of recession," said BBC chief economics correspondent Hugh Pym. "It [the growth figure] was below analysts' expectations. The figure could be moved down, or indeed upwards."

General Motors will invest in electric car

General Motors (GM) has announced plans to invest $246 m (£152 m) in the production of electric motors to power electric and hybrid vehicles. GM is currently getting its electric motors from third-party suppliers. "In the future, electric motors might become as important to GM as engines are now," said the carmaker' s vice-president, Tom Stephens. GM said the motors would be built in the US, although it did not say where, and would be ready for use in 2013. "By designing and manufacturing electric motors in-house, we can more efficiently use energy from batteries as they evolve, potentially reducing cost and weight - two significant challenges facing batteries today, " Mr Stephens said. GM plans to launch the Chevrolet Volt hybrid car later this year. It will be a direct competitor to Toyota's Prius, which is the current market-leading hybrid. GM sees electric vehicles as important to reviving its long-term fortunes following its emergence from bankruptcy protection last summer.

Siemens profit up

German engineering group Siemens has reported a big jump in profits for the final three months of last year, largely as a result of cutting costs. Net income for the quarter came in at 1.53 bn euros ($2.16 bn; £1.33 bn), a rise of 24 % on the 1.23 bn euros recorded for the same period a year earlier. However, overall revenue fell by 12 %, from 19.6 bn euros to 17.4 bn euros. This was largely due to disappointing performance in the industrial sector, where revenue fell by 13 %. Revenue from energy products fell by 10 Challenging year "Earnings for the first quarter provide a gratifying snap-shot of the current situation, " said chief executive Peter Loescher. "The actions we took at a very early stage are now cushioning us from the ongoing repercussions of the global recession." However, the company was cautious in its outlook for the coming year. "Siemens anticipates that conditions in the manufacturing sector and world financial markets will remain challenging in fiscal 2010 " it said. "Following a double-digit decline in orders in fiscal 2009 , we expect only a mid-single-digit percentage decline in revenue in fiscal 2010.

Apple's profit increase

Apple has announced a 50 % increase in profits after seeing a bumper Christmas period, in which sales of iPhones doubled from a year ago. Net income rose to $3.38 bn (£2.08 bn) in the three months to 26 December, from the $2. 26 bn it made the previous year. Apple said it sold 8.7 million iPhones in the quarter. Sales of Macs also rose 33 %, although iPod sales fell by 8 %. But the results were boosted by a new accounting standard that records revenue at the point of sale. Previously, revenue was deferred over the life of products. On Wednesday, the firm will announce a new product, widely expected to be a touch- screen "tablet" computer. The company has previously used January launches to unveil products including the iPhone and the MacBook Air. Apple shares rose $5.33 , or 2.7 %, to close at $ 203.08 in New York before the results came out. In extended trading the shares rose a further $1.28 to $ 204.36. 'Phenomenal sales' Sales in the first quarter rose to $15.7 bn from $11.9 bn in the same period a year ago. " The new products we are planning to release this year are very strong, starting this week with a major new product that we're really excited about " Steve Jobs, Apple chief executive Sales of the iPhone were boosted by its roll- out in China, the world's biggest mobile phone market. Mac sales rose to 3.36 million during the quarter while sales of iPods fell to 21 million. Analysts were impressed with the results. "It was a very good quarter, as expected. It's a continued sign that Apple has great products that consumers want despite this recession," commented Daniel Ernst from Hudson Square Research. "Mac sales were phenomenal as well... Macs continue to gain share and what's interesting is that it only has 3.6 % share globally so there's a lot of headroom." Apple forecast sales for the current quarter of between $11 bn and $11.4 bn.

Jaguar Land Rover boss to depart

The chief executive of Jaguar Land Rover, David Smith, is to stand down, the carmaker has confirmed. The firm said his departure was not linked to the recent breakdown of talks with unions over pay and pensions. Jaguar Land Rover, part of India's Tata Motors, is seeking to reduce wages and pension provision for new staff. BBC business editor Robert Peston said Mr Smith's departure would "raise concerns about possible disagreements over strategy". Jaguar Land Rover said director Ravi Kant would now assist with the handover of Mr Smith's duties, and assume the day to day responsibilities of the chief executive role until a permanent successor was announced. The company thanked Mr Smith "for his efforts in the role and for his service to Jaguar and Land Rover over many years". Tata Motors bought Jaguar Land Rover from US group Ford in 2008 for $2.3 bn (£1.4 bn). Proposed changes Talks between Jaguar Land Rover bosses and unions broke down last week after six days of discussions. The talks centred on proposed changes to pay and pensions that the firm announced in September as part of its strategic review. Jaguar Land Rover has offered to guarantee that 8 ,000 full-time staff will be kept on until 2015 in return for cuts to new starters' salaries and pensions. The firm wants to trim the wages of new employees by 20 %, and close its final salary pension scheme to new members. Plant closure Jaguar Land Rover is continuing with efforts to reduce costs after it saw its sales fall by more than a quarter last year. Sales across the firm's two brands declined by 26 % in 2009. Those at Jaguar were down 33 %, while those of Land Rover - including Range Rover - were 23 % lower. However, sales recovered in December, with Land Rover adding 45 % from a year earlier, and Jaguar's rising 5 %. In September, Jaguar Land Rover announced that it planned to cut one of its two factories in the West Midlands - either Castle Bromwich in Birmingham, or Solihull - by 2014.

Toyota Motors glober sales down

Japan's Toyota Motor Corp said Monday its global vehicle sales fell 13 per cent in 2009 to about 7.81 million vehicles, reducing its lead over Germany's Volkswagen, which enjoyed a record year. It was a dramatic turnaround from 2008, when Toyota ended the 77-year reign of US giant General Motors as the world's top-selling automaker with sales of 8.97 million vehicles, including subsidiaries Hino and Daihatsu. Now Volkswagen, Europe's biggest carmaker, aims to overtake Toyota by 2018 as the global number one. VW has reported 2009 sales of 6.29 million vehicles, up 1.1 per cent from the previous year. Last month it said it would buy 19.9 per cent of Japan's Suzuki for more than $2.5 billion, boosting its global expansion. Toyota — the maker of the Corolla, Lexus and Prius vehicles — was battered by the global economic crisis and fell into the red for the first time in the year to March 2009. It has slashed thousands of jobs. Under president Akio Toyoda — the grandson of its founder — who took the helm in June, it has exited Formula One racing and ended a joint venture with GM. More recently, Toyota's reputation for top-notch safety has been hit by a series of recalls affecting millions of vehicles in the United States and tens of thousands of cars in China.

UK company will invest Dhaka EPZ

An UK-based company will set up a high fashion garment manufacturing industry in the Dhaka Export Processing Zone. The company, Talisman Limited, will invest $5 million for setting up their unit to produce garment items. It will also create employment opportunity for 1,800 Bangladeshi nationals. An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the Talisman Ltd in BEPZA Complex in Dhaka on Sunday. BEPZA member (investment promotion) Moyjuddin Ahmed and chairman and managing director of the company MA Matin signed the agreement on behalf of their respective sides.

Tourism festival begin 30 january in Bangladesh

A month-long tourism festival is going to be kicked off on January 30, aiming to promote the country's tourism industry during the 11th South Asian Games to be held in Bangladesh. 'We're going to organise the tourism fair at the Public Library coinciding with the South Asian Games,' Bangladesh Parjatan Corporation chairman Hemayet Uddin Talukder told reporters at a press briefing Sunday. The South Asian Games is scheduled to start on January 29 and conclude February 9. The games will be held at 23 venues across the country. As part of the month-long fair, the BPC will arrange various events, including photo exhibition featuring tourism sites, food festival, fashion show and concert. Besides, various tourism organisations will also organise different attractive events like sand-sculpture, beach- football and seafood contest. Terming the festival is a great opportunity for depicting the country's tourism spots, tourism secretary Shafiq Alam Mehedi said the festival will also help send out a message to tourists that Bangladesh is blessed with many attractive tourism sites among the south Asian countries.

Vietnam will develop their larget power plant

Authorities in energy-hungry Vietnam have approved development of the country's largest thermal power project, worth at least 2.5 billion dollars, the developer said. In a statement Monday, the Vinh Tan 3 Energy Joint Stock Company (VTEC) said its 2 ,000 megawatt project, to be built in southern Binh Thuan province under a build-operate- transfer framework, will use imported coal. The consortium aims to start construction late next year for operation in 2014-15. VTEC is a consortium of CLP Holdings of Hong Kong, Mitsubishi Corp, Electricity of Vietnam and Pacific Corporation of Vietnam.

Philips Electronics see profit

Royal Philips Electronics NV, the world's largest maker of lights, reported a net profit of 251 million euros ($355 million) for the fourth quarter on Monday, helped by lower one-time charges and by job cuts. The net profit reverses a loss of euro1.18 billion in the same period a year ago, which included 629 million euros in impairment charges on assets. Fourth quarter sales fell 3. 4 percent to euro7.26 billion. Philips has shed 5 ,474 jobs in the past year and now employs around 116 ,000. Chief Executive Gerard Kleisterlee said operating profit margins, excluding restructuring charges, were above 12 percent, their highest level in a decade. Shares rose 4.7 percent in early Amsterdam trading to 21.285 euros. The results "were better than expected on most counts," analyst Eric de Graaf of Petercam Bank wrote in a note on the earnings. Though sales declined at Philips' consumer products and lighting divisions, De Graaf said they were still better than expected, and " margins were better...all across the board."

Taiwan will creat more new job

Taiwan's President Ma Ying-jeou said Sunday his government aimed to create 100 ,000 jobs this year in a bid to cut the island's unemployment rate significantly. Taiwan's Council for Economic Planning and Development has set a target for lowering the island's jobless rate from just under six percent in 2009 to 4.9 percent this year, a goal that Ma said would be "no easy task." To help achieve that target, "the government will try to create up to 100 ,000 jobs this year, " Ma said during a trip to Hualien, in eastern Taiwan, without providing details of the job- creation scheme. He said there were encouraging signs for employment, including a gradual recovery in the the high-tech and electronic sectors and a consecutive decline in the unemployment rate for the last four months of 2009.

Iran budget will based on oil price next year

Iran planned next year's budget based on an oil price of $60 per barrel, nearly double the price from the last year, the official news agency reported on Sunday, indicating rising optimism over energy prices. Last year, the parliament approved a budget based on $37.5 per barrel for the fiscal year ending in March, reflecting the steep drop in prices that severely impacted the economy. About 80 percent of Iran's foreign revenue comes from oil exports. Earlier on Sunday President Mahmoud Ahmadinejad submitted the budget to the Iranian parliament for approval, saying more money would be allocated to agriculture, education and research, as well as to the poor. He did not give the size of the budget only saying there was "nothing complicated or untransparent" in it. Iran's parliament speaker Ali Larijani said the amount would be revealed later, according to IRNA. The budget requires approval of the parliament and a constitutional watchdog. Semi-official Mehr news agency, however, said the amount of the budget was about $368 billion, some $89 billion more than the current Iranian year. The report said some $270 billion of the budget is predicted for state banks and public sector companies, a mainstay of the economy.

China airlines in profit

China's airlines returned to profit in 2009 as traffic rose, fuel prices fell and government policies provided a favourable tailwind, but analysts warn they could face fresh turbulence this year. The country's three biggest carriers -- China Southern Airlines, Air China and China Eastern Airlines -- all suffered heavy losses in 2008 as the global economic crisis struck, but said this month they will be in the black for 2009. The industry as a whole posted a combined profit of 7.4 billion yuan (1.1 billion dollars) in 2009 and passenger volume grew 19.7 percent on-year to 230 million, according to the Civil Aviation Administration of China. But analysts said while the outlook remained solid for 2010 , the airlines would lose steam as the explosive growth in passenger volume slowed, with some travellers opting to stay home and others looking at cheaper forms of transport. "We are generally optimistic about the aviation industry, given the positive fundamentals such as the 2010 World Expo and continued economic recovery," said Chen Huanyu, an analyst at brokerage Guotai Junan in Hong Kong. But he warned the 2009 turnaround was largely underpinned by non-operating profits such as gains in fuel hedging deals and nearly two billion dollars of government aid granted to the top three carriers since late 2008. "We are going to see some uphills and downhills in their earnings in 2010 and maybe the following year," Chen said, noting carriers would be hit with the resumption of payments to an infrastructure fund, halted during the crisis.