Toyota will recall another 1.1m car

Toyota has announced the recall of an additional 1.1 million cars in the US over concerns about accelerator pedals getting stuck on floor mats. The firm also said the recall would be extended to Europe, but exactly where and which models had yet to be decided. The new recall comes just a day after the carmaker said it was suspending sales of eight popular US models. Toyota also announced that 750 jobs would be going at its Burnaston plant in the UK before the end of August. "[Last year] was a tough year for Toyota Manufacturing UK," the carmaker said. "This decision is related to production capacity and efficiency, not to production volumes." Toyota said no decision had been taken about how the jobs would go, but added that it was not currently considering compulsory redundancies. The plant employs about 3 ,800 people. Investor concerns The specifics of the recall in Europe have yet to be decided. Colin Hensley, general manager of Toyota's European operations, said the carmaker was trying to establish how many European models shared the parts used in the cars recalled in the US. Last week, the world's largest carmaker recalled 2.3 million cars in the US with faulty pedals. It has now recalled almost 8 million cars in the US in the past four months. Last October, it recalled 4.2 million cars because of worries over pedals getting lodged under floor mats. "Toyota's remedy plan is to modify or replace the accelerator pedals on the subject vehicles to address the risk of floor mat entrapment," the company said. The latest recall affects five models in the US: the 2008-2010 Highlander and the 2009- 2010 Corolla, Venza, Matrix and Pontiac Vibe. Toyota shares fell a further 3.9 % in Japan, after dropping 4.3 % on Wednesday, as concerns about the impact of the recalls on the carmaker's financial health and reputation gripped investors. "It is still uncertain how this recall problem will affect Toyota's profits.

USA creat more job

US President Barack Obama has said in his first State of the Union address that creating jobs must be the nation's number one focus. Mr Obama accepted Americans were "hurting" and that his election pledge of change had not come quickly enough. He defended his healthcare reform efforts and bank bailout policy, but said there would be a spending freeze from 2011 to tackle the budget deficit. Bob McDonnell, for the Republicans, criticised the expansion of government. The Virginia governor said the federal government was "simply trying to do too much". 'Devastation remains' Mr Obama was given the traditional warm welcome by all sides of Congress and received several standing ovations. He opened his address by saying the US had to "answer history's call". MARDELL'S AMERICA " There were solid economic measures in this speech, and how they work out will determine the president's popularity more than his words " On the issue of employment, Mr Obama said: " People are out of work. They are hurting. They need our help. And I want a jobs bill on my desk without delay. "Jobs must be our number one focus in 2010. " On the economy, Mr Obama said he had taken office a year ago "amid two wars, an economy rocked by severe recession, a financial system on the verge of collapse, and a government deeply in debt". "The devastation remains," he said. "One in 10 Americans still cannot find work. Many businesses have shuttered. Home values have declined. Small towns and rural communities have been hit especially hard. For those who had already known poverty, life has become that much harder. "I know the anxieties that are out there right now. They're not new. These struggles are the reason I ran for president." He said he would insist on the new jobs bill. " The House has passed a jobs bill... as the first order of business this year, I urge the Senate to do the same." Mr Obama defended the controversial bank bailouts, saying they were necessary to save the economy. "When I ran for president, I promised I wouldn' t just do what was popular - I would do what was necessary," he said. "If we had allowed the meltdown of the financial system, unemployment might be double what it is today. More businesses would certainly have closed. More homes would have surely been lost." But he said the budget deficit had to be tackled. "Starting in 2011 , we are prepared to freeze government spending for three years," he said. President Obama also tackled lobbying. He had openly criticised last week's ruling by the Supreme Court rejecting long-standing limits on how much companies can spend on political campaigns. "I don't think American elections should be bankrolled by America's most powerful interests, and worse, by foreign entities," he said. His words brought a reaction from Supreme Court Justice Samuel Alito, who shook his head and appeared to mouth the words, "No, it's not true". The president also talked about global warming, urging the Senate to "advance" work on climate change, while acknowledging deep disagreement on a bill to cap carbon emissions. On healthcare, Mr Obama said he took his share of the blame for not explaining the situation better. But he said many Americans were losing their insurance, adding: "I will not walk away from these Americans, and neither should the people in this chamber." Military gay law On security, Mr Obama said the war in Iraq was ending and "all of our troops are coming home". He said increased US efforts in Afghanistan would help the Afghans start taking the lead in 2011. International allies had also stepped up their commitment, he said, and would use Thursday's Afghan conference in London to " reaffirm our common purpose". "There will be difficult days ahead. But I am confident we will succeed," he said. Mr Obama also referred to a replacement for the Strategic Arms Reduction Treaty (Start), saying the US and Russia were completing negotiations on the "farthest-reaching arms control treaty in nearly two decades". He also announced he would tackle the controversial law that bars openly gay people from serving in the military. HAVE YOUR SAY Obama's problem is not with his speech-making. The problem is that his policies have been, to date, a complete failure. Gary, Japan He said: "This year, I will work with Congress and our military to finally repeal the law that denies gay Americans the right to serve the country they love because of who they are." He ended the speech with the words: "We don' t quit. I don't quit. Let's seize this moment - to start anew, to carry the dream forward and to strengthen our union once more." The BBC's Richard Lister, in Washington, says it was a sober speech for serious times, primarily devoted to domestic issues. He says the president talked optimistically about the capacity of the American people to endure hardships, and come through stronger, but at times he also sounded defensive, saying he never suggested he could bring the change he promised all by himself. Republican Bob McDonnell said that despite rising unemployment, the Democratic Congress continued "deficit spending, adding to the bureaucracy, and increasing the national debt". "The amount of this debt is on pace to double in five years, and triple in 10 ," he said. "This is simply unsustainable. The president's partial freeze on discretionary spending is a laudable step, but a small one. "The circumstances of our time demand that we reconsider and restore the proper, limited role of government at every level." Republican Senator and former presidential candidate John McCain said he was surprised Mr Obama still wanted to push ahead with a comprehensive healthcare overhaul. "What I thought he would have said was 'Look I hear the message from the Massachusetts election, now let's start over'. Frankly, that would've put the burden on us," he said. Mr Obama's address follows the Democratic Party's loss of a key Senate seat in Massachusetts last week which has deprived them of their filibuster-proof 60- seat majority in the Senate. The loss puts in danger the president's sweeping legislative agenda he set out after taking office a year ago.

Hyundai in profit

Hyundai has reported a fourfold increase in profits between October and December as government incentives helped to boost car sales. Net profit for the period was 945. 5 bn won ($820 m; £505 m), compared with 243.5 bn won a year earlier. This was considerably higher than analysts had expected. Hyundai's fortunes are in stark contrast with many carmakers across the world that have struggled to cope with falling sales during the downturn. It has benefited from the South Korean government's decision last year to introduce a 70 % cut in taxes for consumers buying new cars. This has boosted sales domestically, but the carmaker has also seen sales in China and India grow strongly.

Airlines suffered record drop traffic in 2009

International airlines suffered their biggest decline in traffic since 1945 last year as passenger demand fell 3.5 per cent, the International Air Transport Association said Wednesday. Freight also fell, by 10.1 per cent, as ' full-year 2009 demand statistics for international scheduled air traffic ... showed the industry ending 2009 with the largest ever post-war decline,' IATA said in a statement. 'In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen,' said Giovanni Bisignani, director general of the world's biggest airlines' association. 'We have permanently lost 2.5 years of growth in passenger markets and 3.5 years of growth in the freight business,' he added. Passenger traffic had improved in the final months of 2009, after a slump triggered by the financial and economic crisis. In December, passenger traffic increased by 4.5 per cent in December compared to the same month the previous year, and by 1.6 per cent over November, latest IATA data showed. While airlines had continued to cut capacity and flights, yields were still five to 10 per cent below 2008 levels by the end of last year. IATA predicted a slow recovery for cash-strapped carriers. 'Revenue improvements will be at a much slower pace than the demand growth that we are starting to see,' said Bisignani. 'Profitability will be even slower to recover and airlines will lose an expected $5.6 billion in 2010,' she added. The industry association warned last month that airlines faced another turbulent year after they racked up an estimated $11 billion in losses in 2009 despite a recovery in passenger traffic. 'We are ending an Annus Horribilis that rings to a close the 10 challenging years of an aviation Decennus Horribilis,' Bisignani told journalists last month. IATA represents some 230 carriers that account for more than 90 per cent of scheduled air traffic, but does not include most of the budget airlines.

BEPZA urges Toyota to invest in EPZs

Bangladesh Export Processing Zone Authority has urged Japan's Toyota Tsusho Corporation to invest in the export processing zones in the country. A three-member investment delegation from the TTC, headed by general manager Yasuhiro Miura visited Bangladesh Export Processing Zones Authority office in the city on Wednesday, said a news release. BEPZA executive chairman Jamil Ahmed Khan briefed the delegation members on the activities of BEPZA and present status of EPZs of Bangladesh. He also highlighted the fiscal and non fiscal incentives provided by BEPZA and requested the delegation member to explore the investment opportunity in the EPZs. The delegation members expressed their keen interest to invest in the EPZs, said the news release. AZM. Azizur Rahman, general manager (investment promotion) of BEPZA, was also present at the meeting.

Airlines suffered record drop in traffic

World airlines suffered their biggest traffic decline since 1945 last year, making 2009 the "worst year the industry has ever seen," and can expect only a slow recovery in 2010 , the International Air Transport Association said Wednesday. Passenger demand fell 3.5 percent while in the freight sector demand was down 10.1 percent. "Full-year 2009 demand statistics for international scheduled air traffic ... showed the industry ending 2009 with the largest ever post-war decline," IATA said in a statement. "In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen," said Giovanni Bisignani, director general of an association that groups the world's biggest airlines' association. "We have permanently lost 2.5 years of growth in passenger markets and 3.5 years of growth in the freight business," he added. Bisignani warned that while the worst appeared to be over with the recovery in the global economic climate, airlines would have to keep their costs reined in during a "Spartan year" in 2010. Passenger traffic improved in the final months of 2009 , after a slump triggered by the financial and economic crisis. In December, passenger traffic increased by 4.5 percent in December compared to the same month the previous year, and by 1.6 percent over November, latest IATA data showed. While airlines had continued to cut capacity and flights, yields were still five to 10 percent below 2008 levels by the end of last year. IATA nevertheless predicted a slow recovery for cash-strapped carriers. " Revenue improvements will be at a much slower pace than the demand growth that we are starting to see," said Bisignani.

Bangladesh Biman gets new look today

A new-look Biman will show off today as the national flag carrier rebrands to emerge as a commercially viable airline by winning the hearts of domestic and international travellers, officials said yesterday. Prime Minister Sheikh Hasina is expected to unveil the new logo and livery of Biman, which offers promises to improve both the onboard and ground services. The premier is likely to see for herself the two leased aircraft -- Boeing 777-200 ER and Boeing 737-800 -- with the new livery and logo at Zia International Airport, said Muhammad Zakiul Islam, managing director and chief executive of Biman Bangladesh Airlines. The Biman MD said the new livery and modified logo of Balaka will be seen in the aircraft to be inducted in the coming days through lease and purchase. Three leased planes, which are likely to join Biman fleet this year, will get the new look. But DC-10 , Airbus and F-28 planes will bear the legacy of previous look of the 38- year old carrier. Under the rebranding move, Biman comes with the promises of offering what it calls ' hospitability', 'safety', 'reliability' and 'world class' services.

Asian shipping firms faces challenges

Asian shipping firms face "significant" challenges this year due to weakened earnings and limited access to capital, international ratings agency Fitch said Wednesday. "Weakened earnings, high committed capex ( capital expenditures) and restricted access to capital remain challenges for a number of rated shipping companies," it said in a statement. The majority of the seven Asian shipping companies under Fitch's ratings coverage "will continue to face significant operating and credit challenges in 2010 ," the agency said. Three companies are either on "negative outlook" or "negative rating watch", among them Indonesia's PT Arpeni Pratama Ocean Line and PT Berlian Laju Tanker, and Varun Shipping Company of India. "The oversupply of shipping capacity will continue to exert pressure on shipping rates and utilisation levels in 2010 ," Fitch said. Due to the long time needed to build new ships, the shipping industry is inflexible in terms of its ability to respond to the changing global supply and demand picture, analysts say. "The weak fundamentals in the global shipping markets have even affected domestic revenues of Indonesian and Indian shipping companies that benefit from cabotage laws", Fitch added. Cabotage restricts a nation's coastal trade only to ships belonging to that country.