Dreamliner Cancellations in January Cause $15 Million Loss for All Nippon Airways

Japan's All Nippon Airways has cancelled 459 flights in January despite its efforts to minimise the service disruption caused by Boeing 787 Dreamliner aeroplanes, which were grounded across the globe due to apparent battery malfunction.

Due to the cancellations, the company expects a 1.4bn yen ($15m, £9m) decline in revenue.

"We are doing our best to minimize disruption to customers and continue operations by changing the aircraft used on routes served... (Continue Reading)

Britain Invests Record £62 Million to Promote Cycling

The coalition government has announced a record amount of investment to promote cycling to encourage greener, cheaper and healthier way of transport in England.

On 30 January, Transport Minister Norman Baker detailed a £62m ($98m, €72m) funding for England, excluding London, to make travelling on two wheels more attractive for people throughout the country.

The funding is part of the £107m aid for... (Continue Reading)

UK Home Prices Rise in January as Buyers Get Cheaper Loans

Home prices in the UK have increased in January as mortgage approvals rose on the back of the government's Funding for Lending Scheme (FLS), which significantly reduced interest rates.

Mortgage lender Nationwide Building Society said that January house prices improved 0.5 percent after a slightly upwardly revised flat reading in December. Nevertheless, house prices in January were 4.6 percent below their June 2010 peak and 12.8 percent below their October 2007 record high.

House prices remained unchanged on a year-on-year basis... (Continue Reading)

China's Wanxiang Gets Nod to Acquire A123 Systems

A federal committe has approved the much-debated acquisition of the government-backed battery-maker A123 Systems by China-based auto parts maker Wanxiang Group.

Wanxiang America's $257m (£163m, €191m) deal to purchase A123 Systems' non-government business assets including technology, products, contracts and factories in the US and China was criticised by the US politicians and... (Continue Reading)

South Korea Industrial Output Expands in December

South Korea's industrial production increased in December on higher domestic consumption that more than offset a decline in exports, but the growth was at a weaker pace than in November.

Statistics Korea said that production in the mining, manufacturing, gas and electricity industries rose a seasonally adjusted 1.0 percent in December from a month earlier, weaker than a revised 2.6 percent gain in November.

Economists polled by Bloomberg were expecting a... (Continue Reading)

Japanese Airlines 'Changed' 787 Batteries Many Times Before Recent Incidents

Two Japanese airlines have said that they had replaced a number of batteries in their Boeing 787 Dreamliners before the jets were grounded due to apparent battery malfunction.

All Nippon Airways said they had changed below-par lithium-ion batteries 10 times last year, while Japan Airlines (JAL) said it did so in a few cases.

In early January, a battery in a JAL 787 aeroplane caught fire, while a battery malfunction forced... (Continue Reading)

Yahoo Fourth-Quarter Profit Declines

Internet giant Yahoo has reported an eight percent decline in its fourth-quarter profit primarily due to higher restructuring charges that more than offset an increase in revenues.

Net income attributable to the company in the fourth quarter declined to $272m (£173m, €202m), or $0.23 per share, from $296m, or $0.24 per share, in the prior-year quarter.

Excluding extraordinary items such as costs related to the closing of South Korea operations, net income increased to... (Continue Reading)

India Cuts Interest Rates to Boost Economic Growth

India's central bank has cut its short-term lending rate for the first time in nine months in a move to spur growth in the economy, which slowed down to a three-year low in the July-September quarter.

After its quarterly review on key interest rates, the Reserve Bank of India (RBI) has decided to cut the repo rate by 25 basis points to 7.75 percent.

While emerging economies such as China, South Korea and Brazil have all cut interest rates to boost growth, RBI has kept itself away from... (Continue Reading)

UK Retail Rents to Decline as Demand Falls Amid High-Street Casualties

Britain's high street is projected to suffer further from lower rental values for retail space due to a decline in demand, especially in London, amid worries in the sector connected to failures of retail giants including HMV and Blockbuster.

A survey by the Royal Institution of Chartered Surveyors (RICS) said that 22 percent more respondents expect rents to continue to fall rather than rise over the coming months.

While the amount of unoccupied floor space is steadily rising, the demand for space is falling, RICS said. The survey revealed a... (Continue Reading)

Myanmar Gets $900 Million Fresh Loans from ADB and World Bank

The Asian Development Bank (ADB) and the World Bank have granted fresh loans to Myanmar, while other creditors have cut half its debt in order to help the socio-economic development of the country.

The ADB has allowed $512m (£325m, €380m) to the country, while the World Bank approved a $440m loan, after Myanmar, also called Burma, cleared its overdue to the banks with Japanese aid.

"Myanmar has come a long way in its economic transformation, undertaking unprecedented reforms... (Continue Reading)

China's Industrial Profits Rise 17% in December

China's corporate profits have increased for a fourth month in December, supporting the ongoing recovery in the world's second largest economy.

Profits of industrial companies in the country rose 17.3 percent in December to 895bn yuan ($144bn, €107bn, £91bn) from the same month a year ago, according to China's National Bureau of Statistics (NBS). In November, year-on-year growth rate was 22.8 percent.

For the full year, profit improved by 5.3 percent. The state-owned and state-holding enterprises witnessed a... (Continue Reading)

Toyota Regains Global Top Spot with Record Sales

Japanese automaker Toyota has reclaimed the title as world's largest vehicle seller with a robust growth in 2012 car sales despite the lawsuits and recalls during the year.

In 2012, the company sold 9.75 million vehicles group-wide around the world, beating rivals General Motors and Volkswagen, who sold 9.28 million vehicles and 9.07 million vehicles respectively. Toyota sales represent... (Continue Reading)

China Imposes Anti-Dumping Duties on US and EU Chemicals

China has imposed anti-dumping duties on the imports of two chemicals from the US and the European Union, as the country tries to strike back the West for the restrictions on its goods.

China's commerce ministry said that it decided to collect anti-dumping duties on imports of ethylene glycol monobutyl ether and diethylene glycol monobutyl ether originated from the US and the EU. The duties are effective from 28 January for a period of five years.

The development is seen as a counter move from China after the US and the EU set anti-dumping duties and countervailing duty laws on Chinese products, which... (Continue Reading)

Samsung's Fourth-Quarter Profit Surges to Record 76% as Mobile Earnings Double

Electronics major Samsung has recorded 76 percent surge in its fourth-quarter profit primarily due to high margins from record sales of its high- end smartphones and chip business.

Net profit for the quarter rose to 7.04tn won ($6.6bn, £4.2bn), up from 4.01tn won in the same period a year earlier. In the third quarter, the company had posted a record profit of 6.56 trillion won.

Quarterly revenues rose 18.5 percent to... (Continue Reading)

Starbucks Posts Solid Profits Amid Slowing European Sales, UK Store Closures

Coffee giant Starbucks has reported a 13 percent rise in quarterly profit, helped primarily by its strong sales in the US and Asia that more than offset a slowdown in Europe.

Starbucks reported net earnings of $432.2m (£274.1m, €323m), or 57 cents per share, for the fiscal first quarter ended December 30, up from $382.1m, or 50 cents per share, a year earlier.

Total revenues increased 11 percent to a record $3.80bn during the quarter due to strong sales in the US, China and the Asia Pacific. Comparable-store sales, representing sales... (Continue Reading)

Real Madrid is First Sport Club to Cross €500 Million in Annual Revenues

Real Madrid has been named the world's richest football club for the eighth straight year, and become the first sports club to cross €500m in annual revenues.

The Spanish club generated revenues of €512.6m (£431.5m, $683.4m) in 2011/2012, up 7 percent from the previous year, according to business advisory firm Deloitte's latest edition of the Football Money League.

 "It is an impressive achievement for Real Madrid to have surpassed €500m in revenue in a single year," Dan Jones, partner in the... (Continue Reading)

Flybe Plans to Cut 300 Jobs in UK to Slash Costs

Europe's biggest regional airline Flybe has announced a turnaround plan to save the loss-making business and return to profitability, resulting in a total of nearly 300 job redundancies in the UK.

Following the news, Flybe shares lost more than 5 percent and are trading at 47 pence at 10.22 am.

The first stage of restructuring involves nearly 10 percent reduction in the UK-based staff, including Isle of Man and Channel Islands. The restructuring will see... (Continue Reading)

HSBC Flash China Manufacturing PMI Rises to 2-Year High in January

China's manufacturing activity surged to a two-year high in January on higher domestic and foreign orders, according to a closely watched preliminary private survey.

The HSBC flash purchasing managers' index (PMI) rose to 51.9 in January, the highest since January 2011. The index, compiled based on 85 percent to 90 percent of total responses of a survey involving more than 420 companies, showed a reading of 51.5 in December. A level above 50 indicates an expansion in the sector from the previous month.

"At 51.9, January's HSBC China manufacturing PMI rose for the fifth consecutive month to the highest level in two-years, heralding... (Continue Reading)

Japan Posts Largest Ever Trade Deficit of £49 Billion in 2012 as Exports Suffer

Japan has posted a record-high trade deficit for 2012, as the country's exports were hit by lower demand from crisis-hit Europe and a political row with China.

The annual trade gap rose to 6.9tn yen ($78bn, £49bn, €59bn) as against the 2.6tn deficit recorded in 2011, according to Japan's Ministry of Finance.

Yearly exports declined by 2.7 percent to 63.7tn yen, while... (Continue Reading)

IBM Fourth Quarter Profit Up 6% Despite Lower Revenue

Tech giant International Business Machines has reported better-than-expected fourth quarter profits helped by its growing software businesses though the revenues remained largely flat.

IBM's net profit was $5.83bn (€4.38bn, £3.68bn), or $5.13 per share, in the fourth quarter, up 6 percent from $5.49bn, or $4.62 per share, in the same period a year earlier.

Excluding one-time items such as acquisitions and pension costs, net profit was $6.1bn or $5.39 a share, beating analyst estimates... (Continue Reading)

World Economic Forum Meet Opens in Davos

The annual meeting of the World Economic Forum has opened in the Swiss town of Davos, bringing together about 2,500 participants from more than 100 countries and over one-thousand international organisations.

Participants of the invitation-only forum include global leaders, heads of industry and representatives of non-governmental organisations. British Prime Minister David Cameron, Prince Andrew, Russian Prime Minister Dimitry Medvedev and Bill Gates are some... (Continue Reading)

German Investor Sentiment Surges to 3-Year High in January

German investor confidence has surged unexpectedly to its highest level for nearly three years in January, indicating increasing optimism on the performance of German financial markets in the coming months.

The ZEW Indicator of Economic Sentiment for Europe's largest economy, a closely watched measure compiled by the ZEW institute, rose by 24.6 points in January to a level of 31.5 points... (Continue Reading)

Sweden's Ikea Gets Approval to Open Stores in India

Swedish furniture retailer Ikea has received recommendation from India's foreign investment agency to open outlets in the country, which has recently opened up its retail sector for foreign investment.

Being the first single-brand foreign company to open stores in the country, Ikea plans to open as many as 25 stores with an investment of about $2bn (£1.3bn, €1.5bn) over the next 15 to 20 years. The amount would be the largest committed by a foreign company... (Continue Reading)

Chinese Firms to Invest £1.3 Billion in Shale Gas Exploration

China has granted shale gas exploration rights to 16 companies in a second round of auctions, as the country tries to find out more energy reserves to meet its rising needs.

China's Ministry of Land and Resources said that the companies will invest 12.8bn yuan ($2bn, £1.3bn) to search and develop 19 shale gas areas allotted to them.

The companies comprise of 14 state-owned firms and two private companies, and are part of a larger group of 57 companies... (Continue Reading)

Housebuilder Crest Nicholson Plans to Go Public Again

British house builder Crest Nicholson which went private in 2007 is planning to list its shares on the London Stock Exchange in order to take advantage of "gradual recovery" in the UK housing market.

The company expects £50m (€60m, $79m) proceeds from its initial public offering (IPO), which will be used to repay debt.

Following the IPO, Crest Nicholson will have a valuation of £500m... (Continue Reading) 

UK Households More Optimistic on Finances in January - Markit Household Finance Index

The UK households were more confident on their financial prospects in January with an index of personal finances declining at a slower pace in the month due to better consumer perceptions about inflation, job security and credit availability.

The Markit Household Finance Index (HFI) rose to 37.7 in January from a seven-month low of 36.8 in December, indicating an improvement in overall situation. However, the reading remained below the 50 threshold which showed deterioration in household finances in general.

The HFI, compiled each month by Markit tries to capture the consumer behaviour which... (Continue Reading)

London House Prices Rise in January - Rightmove

London home prices have witnessed their biggest new-year surge since 2008, as the number of home sellers on the market increased significantly pushing up the asking rates.

A monthly survey by real estate agent Rightmove showed that asking prices for London homes on its website rose 3.6 percent in January from the previous month to an average £480,890 ($764,000). Prices increased 9.7 percent year-on-year, the biggest annual increase since February 2010.

Nationally, prices rose 0.2 percent to £229,429 in January... (Continue Reading)

High Street Footfall Declines in December - BRC

The number of shoppers on the UK's high street declined in December, as trouble continues for the retail sector with a large number of store closures and job cuts.

Shopper numbers fell 1.2 percent year-on-year in December, compared to a 0.4 percent rise in November, according to the British Retail Consortium (BRC). The fall came despite a 7.5 percent rise in the number of high street shoppers in the immediate week before Christmas.

The figures were in line with the official sales records in December that showed a 0.1 percent decline in sales... (Continue Reading)

Sony Sells US HQ for $1.1 Billion to Regain Profitability

Electronics giant Sony has announced that it agreed to sell its US headquarters in Manhattan, New York, as it looks to restructure its global operations after recording losses in four straight years.

The skyscraper at 550 Madison Avenue will be sold to a consortium led by New York-based Chetrit Group, for $1.1bn (£690m, €823m). After repaying debts on the property, the company will receive net proceeds of about $770m from the deal.

The Japanese company, which produces Bravia TVs and... (Continue Reading)

Manchester Airports Group to Buy London's Stansted Airport for £1.5 Billion

Heathrow Airport Holdings is selling Stansted Airport in London to Manchester Airports Group in a deal that will reduce the number of airports operated by the group to four from seven following a ruling by the Competition Commission.

The company formerly known as BAA agreed to sell London's third busiest airport for £1.5bn (€1.78bn, $2,38bn) in cash. The sale is expected to close by the end of February.

The group will continue to own London's Heathrow... (Continue Reading) 

Bovis Homes Sees Full-Year Profit Ahead of Market Projections

Housebuilder Bovis Homes says it will post better-than-expected profits for its finanical year thanks to an increase in average sales price, higher investment in consented land and improved operating margins.

"The Group expects to announce profit before tax for 2012 ahead of market expectations," it said in its latest trading statement.

The company achieved a 15 percent growth in legal completions to 2,355 from 2,045 in 2011. Private legal completions totalled... (Continue Reading)

UK Rent Arrears Rise in December on Christmas Spending - LSL Property Service

British tenants are falling futher behind in their rent payments, according to a benchmark survery of arrears, amid one of the most difficult economies in a generation.

The total amount of late or unpaid rent in England and Wales in December stood at £326m (€389m, $521m), up from £241m in November, reaching the highest level in nearly a year according to LSL Property Services' latest buy-to-let index. The rental dues represent 10.1 percent of all rent.

"After two months of improvements, the festive period has taken its toll on tenants' finances. December always...(Continue Reading)

China's Economy Rebounds in Fourth Quarter but Slows to 13-Year Low

China's economy has rebounded in the fourth quarter of 2012 following seven straight quarters of slowdown.

However,  the growth rate for the year was the slowest in more than a decade as the global economic crisis and property cooling measures continue to hinder growth.

In the fourth quarter, growth was 7.9 percent year-on-year, up from 7.4 percent in the third quarter, according to official data. For the full-year 2012, gross domestic product... (Continue Reading) 

Dixons Posts Strong Christmas Sales on Higher Tablets Demands

Dixons Retail, owner of Currys and PC World, has posted an increase in sales for the third quarter driven primarily by a "phenomenal" demand for tablet computers across its regional markets, particularly in the UK and Ireland. 

Group like-for-like sales, which exclude the effect of store openings and closures rose 3 percent in the 12 weeks to 5 January. Multi-channel business like-for-like sales increased 7 percent in the third quarter from last year.

In the UK and Ireland, like-for-like sales increased 8 percent, despite the discounted sales at... (Continue Reading)

eBay Posts 18% Jump in Revenue as Mobile Commerce Boosts Sales

E-commerce major eBay recorded a strong growth in revenues for 2012 as the company's sales benefited from the increasing use of smartphones and tablets for shopping.

Total revenues for the fourth quarter of 2012 increased 18 percent to $4.0bn (€3.0bn, £2.5bn), compared to the same period in 2011. For the whole year, the company recorded... (Continue Reading) 

Australian Unemployment Edges Up in December on Sluggish Domestic Demand

Australia's unemployment rate increased in December as the country shed thousands of full-time jobs in the Christmas season, escalating concerns that the economy is slowing down.

The Australian Bureau of Statistics (ABS) said that the seasonally-adjusted unemployment rate increased 0.1 percentage point from November to 5.4 percent in December.

The number of people employed decreased by 5,500 to 11,538,900 in December. Full-time employment... (Continue Reading) 

European December Car Sales Plunge Most In Two Years

Car sales in the European region declined in December, slipping to the lowest level recorded since October 2010.

New car registrations in the European Union declined 16.3 percent to 799,407 vehicles in December from 955,537 recorded a year-ago for the same month, the Brussels-based European Automobile Manufacturers' Association, or ACEA, said in a statement.

For 2012, car sales declined 8.2 percent to 12.1 million units, the lowest... (Continue Reading) 

Wal-Mart to Spend $50 Billion on US-Made Products to Promote Economy

Retail giant Wal-Mart is planning to increase the sourcing of American-made products as it hopes to boost manufacturing and employment in the economy that has experienced a slow growth after the global financial crisis.

The largest retailer in the US will spend an additional $50bn (€37.6bn, £31.1bn) in locally-made products, particularly sports goods and high-end appliances, over the next 10 years. With its "buy American" campaign, the company intends... (Continue Reading)

World Bank Cuts 2013 Global Growth Forecast Citing Weakness in Developed Nations

The World Bank has cut its 2013 growth outlook for the global economy citing volatile and sluggish growth in the developed countries.

After recording a 2.3 percent growth in 2012, the global economy is expected to see its GDP growing at 2.4 percent in 2013. The World Bank had projected a 3 percent growth for 2013 in June.

Growth rate would improve to 3.1 percent in 2014 and... (Continue Reading) 

RBS 'in Talks' with Yes Bank to Sell Indian Unit

The Royal Bank of Scotland Group has revived its attempt to sell its Indian retail and commercial banking operations as India's Yes Bank is reportedly in talks to acquire the assets.

Yes Bank is in discussions with the government-backed bank and is likely to start a due diligence on the RBS' Indian unit soon, Reuters reports, citing "a source with direct knowledge of the matter".

Earlier, a plan by RBS to sell the Indian businesses to HSBC Holdings failed in November 2012, following negotiations... (Continue Reading)

UK House Prices Stable in December And to Rise 2% in 2013

House prices in Britain remained stable in December and are expected to pick up in the coming months as the government measures to recover the property market show their impact, according to a leading survey by the Royal Institution of Chartered Surveyors (RICS).

The RICS seasonally adjusted house price balance rose to 0 in December from -9 in November, indicating unchanged prices for the month. It was for the first time since June 2010 the balance is avoiding a negative reading.

The balance gauging price expectations over the next three months rose to 1 from -5, moving into... (Continue Reading) 

HMV Set to Go into Administration Putting 4,500 Jobs at Risk

Music and film retailer HMV is preparing to appoint administrators, putting thousands of jobs at the 92-year-old retail chain at risk.

Accountants Deloitte is set to run the troubled retailer's 239 stores in the UK and Irish Republic, and it will assess the business prospects of the chain along with seeking potential buyers.

Being the latest casualty on the UK's high street, following high profile retailers including Comet and Jessops, the collapse of HMV... (Continue Reading) 

Indian Inflation Eases in December Raising Hopes of Rate Cuts

India's headline inflation declined to the lowest level in almost a year in December, paving the way for the central bank to ease interest rates to boost economic growth.

Inflation, as measured by the Wholesale Price Index (WPI), declined to 7.18 percent in December from 7.24 percent in November.

The Reserve Bank of India (RBI) had earlier projected an inflation... (Continue Reading)

London Hotels to Suffer Slow Down in 2013 on Lower Demand

London's hospitality sector is set to face slowdown in 2013 as higher supply is expected to lower the occupancy rates.

A report from PricewaterhouseCoopers (PwC) said that the average price of a London hotel room would decline 2.7 percent in 2013 to £139.07 (€167.67, $224.46). However, at the price, London is still the fourth most expensive among the 19 major European cities in PwC's market study.

Nevertheless, PwC noted that the difficulties... (Continue Reading) 

Singapore Sets Tough Rules for Foreign Home Buyers

Singapore has set out tougher rules for foreigners who are planning to buy residential properties in the country as it announced further property cooling measures in order to reduce soaring property prices.

Following the move, shares of major property developers declined on the Singapore stock exchange in early trading. CapitaLand fell almost...(Continue Reading) 

Network Rail to Go 'Nuclear Powered' with £3bn EDF Energy Deal

Network Rail, the operator of Britain's railway infrastructure, has entered into a 10-year deal with the French-owned EDF Energy to provide low-carbon electricity to the railways.

Under the £3bn ($4.8bn, €3.6bn) contract, EDF will supply around 3.2 terrawatt hours of energy per year to the railway network for the next decade. EDF will provide low-carbon energy generated from its eight nuclear power stations.

"The deal places nuclear energy at the heart of the UK's infrastructure for the next 10 years and serves to underline... (Continue Reading)

Jessops Shuts Down All UK Stores with Loss of 1,370 Jobs

Camera retail chain Jessops has closed all of its stores in the UK, marking the first high-street retail casualty in 2013 that resulted in the loss of 1,370 jobs.

The store closures come days after Edward Williams, Robert Jonathan Hunt and Matthew David Hammond of accountants PricewaterhouseCoopers (PwC) were appointed as joint administrators of The Jessop Group on 9 January.

Following a review of the business and extensive discussions with suppliers, the administrators revealed that... (Continue reading)

Honda to Axe 800 UK Jobs on Weak European Demand

Japanese carmaker Honda is planning to cut 800 jobs in the UK as the economic slowdown in Europe hurts demand for its vehicles.

The redundancies are set to take place in its Swindon plant in south west England by the second quarter of 2013, its first staff lay-offs in the UK since it began operations in the country in 1992.

The South Marston plant near Swindon produces... (Continue Reading)

India's Industrial Production Contracts in November on Weak Mining and Manufacturing Data

India's industrial output has edged down in November, as the mining and manufacturing sectors slowed down primarily due to extended holidays during the month.

The general index of industrial production (IIP) declined 0.1 percent to a reading of 167.3 from the revised level in November 2011, according to the Central Statistical Organisation. The decrease compares to a revised 8.3 percent gain... (Continue Reading)

China's December Inflation Increases 2.5% on Rising Food Prices

China's inflation rate has increased to a seven-month high in December as the country's food prices shot up due to adverse weather conditions.

Inflation, as measured by the consumer price index (CPI), rose 2.5 percent in December from a year earlier, according to the National Bureau of Statistics. In November, the index rose 2 percent.

Economists polled by Bloomberg were expecting...(Continue Reading)