VIDEO: S Korea economy accelerates ahead

30 March 2011 last updated at 03: 11 GMT-help

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Spain promises economic reforms

25 March 2011, last updated at 23: 11 GMT movement comes amid fresh concerns, assure that the Spanish Prime Minister has announced a Bail-Out Portugal, that his Government will take new economic measures to markets that the country deficit under control.

Speech at a Summit of the euro-zone debt crisis José Rodriguez Zapatero, saying legislation would, the Government spending would be limited.

He promised to take action against tax evasion.

Some analysts think that Spain may require a Bail-Out from Europe and the IMF.

Spain has already introduced cut government expenditure and pension and labour market reforms.

However, the economy with an unemployment rate of 20% is to fight.

"Spain adopt new measures to support its response to the economic crisis and strengthening the foundation of our economy," Mr Zapatero told reporters.

The move comes in the wake of the fresh concerns about Portugal and whether it is forced to a Bail-Out request.

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Portugal crisis cloud EU Summit

24 March 2011 last updated at 16: 57 GMT the Portuguese Prime Minister warned "very serious consequences" EU leaders are grappling with the a new threat with eurozone after Portugal of Parliament rejected an austerity budget and PM José of Sócrates resigned.

The vote means an international Bail-Out, similar to that of Greece and the Irish Republic in the last year is now accepted far more likely.

Socrates said opposition parties "by the Government the conditions to govern had removed".

EU Summit in Brussels aimed at combating the eurozone debt crisis.

Pressure

Although the situation in Libya and the recent events in Tunisia and Egypt are high on the agenda, the Summit has the moment been billed, which adopted a "comprehensive package" stabilisation of the euro-zone EU-27.

As part of the deal would the lending capacity of the European financial stability facility (EFSF) of 250bn euro (£ 218bn; $354bn) euro increase on 440bn. The EFSF will be replaced by a permanent European stability mechanism in 2013.

But EU governments their national contributions to the augmented have nailed not yet down, EFSF and Portugal's uncertain that policy hampered unanimity.

Pressure on Portugal economy more on Thursday as the interest of the country's ten-year bonds rose to a new high of 7.6%.

Portugal faces bond repayments of 4.3bn euro on 15 April and in a national address on Wednesday night, Socrates warned that the political crisis would have "Very serious consequences for the trust must to enjoy Portugal institutions and financial markets".

The rating agency Fitch downgraded Portugal's sovereign credit rating from A + to A - on Thursday.

Belgian police drove ahead of the Summit, again a group of demonstrators with water cannon and tear gas close to the venue, while thousands of other people peacefully protested against severe cuts.

'Brave'

Belgian Finance Minister Didier Reynders said that Portugal partners were ready to help, if desired.

Read the main current lending capacity of 250bn 440bn euros euro in the European financial stability facility (EFSF) permanent European stability mechanism (ESM) to be launched in 2013 with 500bn-euro loans of CapacityCountries arguing about their contributions "I always thought that it would be useful", Help organize raised werdeneinfach because the [Portugal allows] pay it on his debt to the undergoing restructuring, less interest and therefore make less, sometimes stressful ones, calls on [his] people, "he said on Thursday in Brussels."

"If Portugal asks, we to intervene." "For this to happen it must a plan to his finances back to better health and a request to the European Fund unlock will bring."

A Bail-Out for Portugal of zurückgeschnitten euro as a whole could, analysts say.

In a speech of the German Parliament (Bundestag) on Wednesday, German Chancellor Angela Merkel said it "regrettable" was that Portuguese had rejected members collecting Government proposed package of spending cuts and tax is.

Mr Sokrates praised efforts as "courageous", Mrs Merkel said: "what we need is a consistent path of consolidation and reform." "Has shown yesterday, how difficult this is."

Continue reading the most important story

the history of this [Libya] crisis is that individual leaders have been, during the EU fight, to your voice "

end quote Gavin Hewitt BBC Europe caretaker role all five Portuguese opposition parties rejected austerity measures - the Government fourth set of proposals in a year, argue they went too far."

Although he stepped down on Wednesday, Socrates, the Summit is visited as a caretaker Prime Minister. A snap election is today, but the decision will be made by Portuguese President Anibal Cavaco Silva.

Lisbon has argued that his situation of Greece and the Irish Republic - different both have agreed to Bail-Outs of the European Union and the International Monetary Fund.

It says that its are lower than those Nations, deficit and debt, that it has suffered no bubble in the real estate prices and the banks are sound.

Arrival at the Summit on Thursday the new Irish Prime Minister, Enda Kenny, said he would on the results of stress tests on Irish banks waits before renegotiation of the conditions of the 85bn euro granted Bail-Out to Dublin in December. The results are expected on 31 March.

Dublin EU IMF requested help after pouring billions of euros in indebted Irish banks, but it will reduce the interest rate on the Bail-Out.

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Q & A: Cuba's economy

15 March 2011, last updated at 11: 00 GMT the Cuban Government has already enabled the expansion of private taxis Cuba is his convertible hard currency devaluation, and are mostly by tourists and foreign companies, to around 8% as part of efforts to revive the economy.

There are now on a par with the dollar, although it will be paid two-tier currency system pesos, in the most Cubans under the Communist island is still equal to 24 of the standard.

The devaluation, the first change in the currency value for six years, the Cuban Government is steps is the duty of the State in the economy and promoting the private sector.

Was announced in September last year, that to be released one million employees of the public service, job cuts would take now longer than be expected originally planned.

BBC business reporter, centrally on the implications for Cuba's Robert Plummer sees socialist planned economy.

What is the difference of the devaluation of the currency?

It is affordable for tourists who now form an important source of revenue for the country of Cuba.

Konvertierbarer was created in 1994 and until 2005, when its value has been increased to $1.08 was linked to the US dollar. At this time, Cuba had banned already commercial transactions in dollars, in response to a tightening of US sanctions.

The latest move brings the konvertierbarer back to its original exchange rate. However, tourists and the exchange of dollars Cubans have to continue to pay 10% Commission.

Why now Cuba adoption those changes?

The changes are China's first Congress in 14 years starting on 16 April instead of in the run-up to the ruling Communist Party.

This is likely President Raul Castro economic reform plans, support the further decentralization of decision-making and increasing revenues, cutting social benefits and require subsidies.

But why the Government feel changes are needed?

Because it simply can not afford, the old system maintain longer. Cuban revolution has always of one external makes financed were and the credit expired now.

During the cold war it was the Soviet Union, the island cheap crude oil in exchange for Cuban sugar, as well as loans and credit offered. It is estimated that Cuba of still Russia owes some $20 as a result.

After the collapse of the Soviet Union in 1991, President Fidel Castro had a "special period" of the hardness and allows a modest expansion of the independent companies, such as restaurants and farms.

But the State again tightens grip as China and Cuba's Venezuela new benefactor.

Cuba is now in hock to both selections as well as - and the Chinese press Fidel Castro's successor, his brother Raul, to follow their economic reform path.

What are the most important effects of the changes?

Now, if the planned cuts in full, one-fifth of employees set job will no longer have a Government to go. The Government employs about 85% of all workers.

But that does not mean that they are unemployed. Many of them continue to do, do it now, but their employers are no longer the State.

Taxi drivers, hairdressers and in small jobs, such as the will to separate and care itself, rather than the State do it for them to. Others are encouraged to set up their own businesses or change jobs.

Cubans will work also for rent to tourists, room as a self-employed gardener, iron clothes and shoes luminaires.

You will even be allowed to deal with other Cubans that none of their relatives - has been banned somewhat since the revolution.

Raul Castro said the goal is "overloaded" Government to reduce the payroll, but has also pledged that "no one simply will be omitted in the cold".

What other changes are made?

The whole system will be less paternalistic in the future. Subsidies that kept the prices of basic foodstuffs such as sugar and rice, removed. In fact, this is whole ration book system, were cheaper Basic, Cubans with a guaranteed minimum offers has since the US embargo in 1962 began, due to the phasing-out.

At the same time, the newly self-employed, one year up to 50% for those earning more than 50,000 pesos are income tax from 25% for those earning more than 5000 pesos ($225; £ 142).

Like many others before them are Cubans will discover, that if it grants rights, also powers on them imposed.

Is this the end of socialism in Cuba?

In a Word no. Since the ailing Fidel Castro stepped down as President in February 2008, observers have forecast that Raúl Castro would lead major reforms.

But it looks like this is as far as it goes. The President has ruled out general changes and wants the State still in his role as the central economic planner, although some control in fact been made, has.

Cubans no longer the same level of cradle to grave state care can expect and need to become more independent, but the country remains an a party State.

In fact, this is very timing of the Congress think the centrality of the Cuban revolution in Raúl Castro. It is the 50th anniversary of the battle of the Bay of pigs, the one start United States supported force of exiles defeat was in an attempt to overthrow invasion of the island and Communist rule.

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Irish economy in contraction of 1.6 %

24 March 2011 last updated at 12: 24 GMT the Irish Republic has one of the deepest recessions in Europe of the Republic of Ireland's struggling economy shrank by 1.6% in the fourth quarter as consumer spending and exports fell, suffered.

The decline compared with a stretch 0.6% of gross domestic product in the third quarter, according to the central statistics.

The fourth quarter figure meant that the economy, supports Bail-Out to 1% for the year dwindled by a euro-zone.

0.4% On the quarter and investment fell consumer spending deleted 2.3%.

On the quarter, 1.4% decreased exports, while imports slipped 0.1%.

Irish property and banking collapse brought the country close, financial crisis.

Dublin has so far forced total lending EUR (£ 29. 56bn;$ 48bn) by a European and IMF-funded Bail-Out package and cost-cutting measures.

The results of stress tests on the Republic are banks to determine how much more capital, they must be due on 31 March.

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Global recession timeline

HSBC shows that large losses in the US mortgage market arms household finance because of subprime losses, could be in one of the first signs that the U.S. housing market is acidic, and that it have impact on the global financial sector. Full story

New century financial, a leading subprime lender, files for bankruptcy. It is the first signal, mortgage of lenders is that something we seriously wrong. Shares in other US mortgage banks such as the countrywide come under pressure. Full story

Credit markets in freefall after Paribas announces that two its hedge fund due to "complete evaporation of liquidity" be frozen which in asset-backed security market. European Central Bank 170bn injected euro in the banking market and fed lowers interest rates. Bank of England refuses to intervene in credit markets. Full story

Savers in the besieged UK former building society Northern Rock start withdrawing their savings after the BBC shows that the Bank of the Bank of England has received emergency financial support. Northern Rock is in trouble, as dependent strong money on the wholesale market, to finance its operations, and these markets have dried up. Full story

US investment bank Bear Stearns is by rival Bank JP Morgan Chase to the Government a $30 provides guarantee against losses mounting saved. It is the first sign, which, instead of easing, the financial crisis is getting worse, but investors are relieved that US Government ready to act as lender of last resort. Full story

US Government rescues giant mortgage lenders Fannie Mae and Freddie Mac, among them into temporary public ownership, after they show huge losses on the United States subprime mortgage market. Their failure would have caused a run on the dollar as their bonds, believing that they were already guaranteed by the Government had invested in many foreign Governments. Full story

Bankruptcy is US investment bank Lehman Brothers, after the Government refuses, you bail-out. Merrill Lynch is by the Bank of America bought after it revealed large losses is facing. Insurance company AIG granted guarantees for subprime mortgages, is on the next day with a $85bn loans of Treasury rescued. Full story

A ?12 is Lloyds. 2bn takeover of the ailing, Halifax Bank of Scotland (HBOS), Britain's biggest mortgage lender, after its shares amid concerns about the company are the future. The British Government calls a public interest clause, competition law, to work around, as the new Bank responsible for close to one third of the UK savings and mortgage is market. Full story

The largest financial bailout in U.S. history is approved after a strenuous debate in Congress, and first loss a week earlier. Republicans and Democrats alike reluctant bail out of the banks with such large sums of money while ordinary citizens in the recession suffered. The Bail-Out support both presidential candidates. Full story

The are two major UK banks, RBS and HBOS, in deep trouble as reduce financial markets. After merged with is the September HBOS, Lloyds by the huge debts taken by his new partner in the mortgage market, while RBS struggling with the costly association with ABN AMRO. The British Government injected ?37bn to stabilize both banks. Full story

The US Central Bank cuts its interest rate to 0 - 0.25% in an attempt, money in the economy, borrowing facilitating deepen reduce recession, and to consider, a program of quantitative easing throw begins. It is the lowest interest in the history of the Fed. Full story

President Obama wins his first major victory in Congress, a huge economic recovery in the prevention of United States correction fall into recession as one of the credit crisis. Much of the money go to prevent, to the States that establishing of employees in the public service, but some schools and green energy will be invested in infrastructure projects such as roads,. Full story

Promise to help emerging and promise additional $1.1 trillion world coordinated measures to combat the slump and improve the regulation. Gordon Brown is a global summit triumphant, which he claims is a turning point in the crisis and stock markets are beginning again to revive. Not all the money pledged is however actually delivered. Full story

The UK Chancellor Alistair Darling shows that the credit crunch financial history of the ?175bn to double debt, with total Government ?1 to the largest budget deficit in UK trillions to 2014. Mr Darling are two parliaments or 10 years it takes to get the budget back to the position, before the credit crisis. Full story

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Key points: Strict Irish plan

7 December 2009, at 16: 56 GMT last updated welfare spending cuts and increase in the tax is the fulfilment of which conditions by an international Bail-Out of the Irish Government has the toughest budget in its history the subscription orders presented euro (£ 5 billion; $8 billion) which contains weights.

It contains more information about tax rises and cuts expenditure in addition to the described last month when it launchd his four-year national recovery plan.

You will drastically to huge budget deficit of the country, which reduce is a requirement of the EU and IMF Bail-Out.

The latest measures include:

Prime Minister and Minister Paycorporation tax cuts 12.5%child take advantage of new income tax system introduced4 cents on a litre of Paymentno reduction Fuelextra to cut State pension supplement, are fuels.

In spite of pressure by other members which Dublin the rate would be euro-zone, which is said to increase corporate tax of 12.5%.

The Irish Government contends that a low rate of corporation tax is a cornerstone of the industrial policy and part of Ireland's international brand.

KST are also an exemption for new companies.

The Government said in November it would that planned 2.8 euro save one in social expenses until 2014 to 2007 values back.

It said it was necessary, because working age now more than twice their rate were social assistance in the year 2000.

"The most drastic reduce tax and increase the welfare by the very high real estate-related tax revenues of the State Treasury in the boom years taken were possible," he said.

Finance Minister Brian Lenihan "which can make State no longer", said on Tuesday.

It is a 10 euro per month use reduction in the child records. This means, for example, the benefits for the first child of 150 euros to 140 euros to be reduced.

However, there is no reduction of the State pension this year.

"We have significantly increased the State pension in the last ten years and it is the Government of the view that the security that has brought this for the elderly should be maintained," said Mr. Lenihan.

A piece of good news was the announcement of an additional 40 euro payment to households in receipt of winter fuel pump allowance due to the recent harsh weather.

VAT is from 21% to 23% by 2014 rise increase EUR 620 million a year.

"VAT rates 23 Member States now of 19% or more has increased in Europe in response to the current crisis, with some rates," said the Irish Government.

It will also consider imposing VAT on more types of were.

Dublin is planning a "basic" reform of the system of income tax, because it says that more than 45% of the people are exempt.

The Government wants more people in the tax net by lowering the thresholds, the bulk of the money from the recovery plan are to be raised in the fiscal year 2011.

The budget also detailed plans to abolish or restrict many tax breaks that use higher income groups to shelter income from taxation.

The top marginal rate of tax will be held at 52%.

The Republic national recovery plan included another striking - a cut in the value of public sector pensions already in payment.

2.8 Euros per year, they make almost 15% of the entire public service numbers and pension bill.

The Irish Government plans to reduce that by 4% by reducing pensions - tap turned off these costs EUR 100 million per year.

There was almost 124,000 public sector retirees in 2009. You see in the year 2011 cut their pensions.

Their cut those who pay going to have to retire after 2012 by 7%, which their pensions and retirement lump sum is cut anyway.

In addition to these measures already announced has the Government, that pay, is next Minister for senior cut.

"The content of the Taoiseach is reduced by more than 14,000 euros per year and the salary of Ministers be reduced by more than 10,000 euros per year,", the Minister of Finance of Lenihan said.

In addition, the Government sets a CAP in the public sector pay at 250,000 euros (£ 210,000; $333,000).

The minimum wage will be cut by a EUR to 7.65 EUR per hour.

The Government said a cut was essential because existing was the out-of-step with an economy "where is GNP fell by 19%."

"Other labour market regulations deny job creation - especially in sectors where unemployment among the young and unskilled workers is the most common." "Crucial reform is necessary."

The United Kingdom, the Republic hopes that reduction in the public sector more than by job creation in the private sector will be the planned 24,750 jobs.

The sum of numbers to Bill for public workers to 1.2 billion euro will fall by 2014.

Dublin, said that labour market reforms were expected in the next few years 150,000 direct and indirect jobs create 150,000. "We also ambitious targets for new foreign direct investment, tourists, and exports have", said the Government.

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Long road to recovery

17 March 2011 last updated at 03:19 am by Saira Syed business reporter, BBC News, Singapore TNT says its Japanese operations the 'back to normal' are extensive damage to the infrastructure of Japan in the North and East of the country will delay expected to its growth.

The Bank of Japan been project, that Japan is deadlock economy get would up pace in the next few months again.

However, the damage to roads, railways, ports and power plants is inevitably impact on economic activity.

Rush along with millions of families in the dark at home are the effects of earthquake and tsunami felt last week on Japan's infrastructure.

"The timing infrastructure return to previous conditions, before the earthquake can be several months," said Nezu Risaburo of Fujitsu Research Institute in Tokyo.

"At the moment the focus is on people to save, restore human body." Then get rid of the debris and then the real work of rebuilding begins "he added."

The reconstruction is necessarily comprehensive in view of the damage.

Continue reading the most important story

the worse that is dip in the second quarter, the worse the impact on overall gross domestic product will be in this year "

end quote Korteling Scout Dosanjh Economist Intelligence Unit is now just as Tokyo electric power, is balanced by a drop in power capacity."

Two million households have left without electricity.

Millions more, including parts of the capital, by power cuts and reduced trains hit.

"Three of their nuclear power plants, have been written that never works", said Dosanjh Korteling Scout by the Economist Intelligence Unit.

"The nuclear industry provides about 30% of electricity generation and about 10% of which was this power plants."

Mr. Dosanjh said "so effectively, 3% of the power supply offline permanently, hath".

And it is not only nuclear power stations that are affected.

Oil and gas facilities have also shut down while safety and security checks are performed.

In addition to the problem is the question of the distribution, making the effects much wider than the area by the earthquake and tsunami hit.

The Government has said that it is power defects until at least the end of April.

However, not all damages have huge effects on the country.

Read more you that the main story largest port on the North-East Coast, Sendai, DestroyedFive other heavy DamagedSix oil refineries ports shutdown

Source: Reuters

The impact on the streets about is quite localized, 4% of the Japanese geographical area.

Allows some companies to operate in other parts of the country with some delays.

"Due to the errors of the infrastructure, UPS is all services of Northern and Eastern Japan, suspend [suppliers]" has a UPS spokesman.

"Still services to West Japan with minimum impact."

Damage to air and sea freight should be also, for the time being minimal.

Sendai airport suffered extensive damage, but other major airports are affected directly by the natural disaster.

Stephen Badger, Operations Director at TNT Asia Pacific said, gave it some delays to deliveries, but the company operation now at about 90-95% capacity.

At least six Japanese sea ports have seen major damage.

Destruction of roads has forced people along blocked railway tracks

The largest port in the North-East, Sendai, destroyed and is not operational for months.

The impact on the global supply chain and the international trade is significant.

Factories have been closed due to the delays in the shipment of parts.

"Many companies are fighting cut with the disruption of roads, railways, and power supplies." All together come to create a difficult situation for manufacturing companies, "said Nezu Risaburo of Fujitsu Research Institute."

The closure of the ports is estimated that Japan $3 billion (£ 2 billion) cost in the lost sea trade every day, according to the Reuters news agency.

Analysts agree that the damage to the infrastructure for the next three to six months will inevitably economic performance is made.

And depending on how long the uncertainty to power continues defects and chain disruptions, it could have a more lasting impact.

"The worse that is dip in the second quarter, the worse the impact on overall gross domestic product will be in this year", Korteling Scout Dosanjh said of the Economist Intelligence Unit.

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Inflation was

10 March 2011 last updated at 16: 14 GMT by Chris Hogg-BBC News, Shanghai food prices in China were up 10.3% drives a car for a life in the southern Chinese province of Guangdong in January compared to a year ahead of Liu Shui hua.

He used to rent from 600 Yuan ($91; £ 56) per day. Now, the price is 400 Yuan.

"Prices of everything are high, so that people want to spend less, or less often use the car service." It says the only way I can keep up, "he."

He feels pressed. He is from Henan province in central China, and he, Guangdong is very expensive.

The Government increases the price for the type of gasoline used by 30 fen (5 US cents) a few months before.

It is now about seven Yuan per litre.

"it the car tax have canceled, because they always are so much more tax from the gasoline," says Liu Shui hua.

"But it make much difference, the cost of living is high in the sky."

Control of prices

China's Prime Minister Wen Jiabao said the annual meeting of the national of people's Congress, the country's Parliament, this week, that price stability top priority in the year 2011.

Continue reading the most important story

little control has the cost of raw materials from abroad, raw materials or gasoline "

end quote Lee Yong Ji University still all week the stock markets in China were lively, in part, because the Prime Minister" BetonteKontinuität stability, Flexibility and efficiency "instead signaling a tightening of monetary policy."

Chinese officials as people point out that under the country's price laws, that it the authority to intervene wherever and whenever they try that inflation control to need.

But Shanghai-based economist Andy Rothman who argued CLSA capital that they speak the speech, but not actually the walk walk.

"Back on in 2008, as food prices rose twice as fast as they it the price of cooking are limited, oil and the price of milk for three months now," he says.

"Just now as far as I am aware that the only food item is controlled the price of oil - cooking and the measure was only for three months in."

Food prices helped drive up inflation in November to 5.1% - a 28-month high, but one, which was above all to a period of bad weather.

The weather cleared up, the growing season for lots of vegetables was not so long transport problems have been removed and prices have started to stabilize.

"It was nothing to do with price controls," says Mr. Rothman.

"The only place where the Government controlled the prices, gasoline and the bills for utilities such as electricity and gas are the consumer of pays."

"The Government has to pick up these bills, was made possible, so that is a good indication that there are not about the inflation panic."

Raise of income

Beijing says it wants the people more, to help ease to make the burden of rising prices.

IHS global insight analyst Xiangfang ren points out of the country's new "five year plan" sets a target of 7% for urban and rural household income growth, pretty much the same as the target for economic growth (GDP).

Under the previous five year plan, the income growth target was much more modest than the GDP target.

"Some 29 Chinese provinces announced a similar aim of household income growth, which either about the same or faster than to achieve GDP growth in the next five years," explains Mr. Rothman.

"Despite only three provinces manage to do that under the final plan."

We are not for several years, but know that it is reachable.

Change the policy

Inflation is the result of the high demand for goods such as food, as caused by rising costs.

Lee Yong, Professor at the school of Economics and finance at Ji University in Shanghai, points out there are limits to what can China do to control the latter.

He says "China has little control over the cost of raw materials from abroad, such as aw materials or gasoline".

What can change it, is the industrial structure calls the Professor "a long-term problem", which take time to resolve claims.

Many critics of China's industrial policy point to an undue reliance on investment in infrastructure, maintain economic growth.

This week the Government announced, build or renovate 10 million units of affordable housing this year and again in the year 2012, part of a 36 - million unit programme over five years.

She hope it will ease pressure on prices, but by increasing demand for raw materials and work it could inflation to fuel pump.

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Nissan sets production Japan

17 March 2011 last updated at 15: 38 GMT Nissan wants to increase production to the Japan's recovery automaker Nissan has some restarted its production in Japan.

Nissan's Andy Palmer said "We have managed to production start new our two plants in Kyushu to get", the BBC.

The resumption comes less than a week after the earthquake and a tsunami severely damaged infrastructure of the country, including some nuclear reactors.

Automakers in Japan stopped production as parts supplies were interrupted and due to electricity shortages.

Difficulties remain

But although some has resumed production, Nissan, which is second largest automobile manufacturer in Japan still big challenges is above.

"There are clear issues," said Mr Palmer, Nissan production head, in an interview with BBC World Service.

"Some of the suppliers were affected by the earthquake or the tsunami." "We have some records in the nuclear zone."

In addition, he added that "transport is definitely a problem, there's sure to gas supply problems, power failures create problems".

Continue reading ambitious plans of the main story

they are all facing parts lack - if not now, then probably very soon "

end quote Jorn Madslien business reporter, BBC News Mr Palmer acknowledged that the error production Nissan's profits would hit."

On Wednesday warned the credit-rating agency Fitch that Nissan, as well as rival automakers concerned could see Toyota and Honda, their profits in the next few months, above all, because the yen has strengthened since the quake.

Mr Palmer is confident that the car manufacturers to increase production.

He said "the faster we can get up production and run, not only we can Nissan in good shape again, but, frankly, we can help the country to come back in good shape".

"Our Yokohama works in a way limited operation actually March runs since 13."

"Our other big plants, Oppama, Tochigi, Yokohama and Nissan Shatai all limited operations will do on 20 March."

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Japan car parts crisis is damaging GM

17 March 2011 last updated at 20: 23 GMT GM says it has already produced enough pick-ups, clients supply for more than two months U.S. carmaker General Motors (GM) a factory because of parts caused by the crisis in Japan has closed.

The automotive giant customers should not be visible. The automotive giant said it already enough, Chevrolet Colorado and GMC Canyon pick-up truck it about 70 days has produced to the last.

US rivals Ford and Chrysler are at least not yet affected by parts deficiency.

But Toyota and Subaru production in the United States portions have checked to get.

The Japanese automaker Nissan said that it had resumed passenger car production in Japan.

In Europe, GM, Opel and Vauxhall has separately, appointed a new Managing Director for the brand.

Karl-Friedrich Stracke will replace Nick Reilly, who will remain head of General Motors Europe.

Continue reading the most important story

they are all facing parts lack - if not now, then probably very soon "

end quote Jorn Madslien business reporter, BBC news veteran automotive executive Mr Reilly as is maintained the Cadillac and the Chevrolet brand in Europe."

Mr. Reilly is also GM Europe's Supervisory Board Chairman.

"The European market and our European operations are important, General Motors," said Dan Akerson, Chief Executive of GM.

"These steps to ensure that we have the best leadership as we towards growth and profitability continue."

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UK recovery "subdued" for two years

16 March 2011, last updated at 19: 10 GMT the OECD said the British economy has become partly thanks to too much borrowing of balance. The UK economic recovery with government expenditure growth remain subdued for two years reductions and a slowdown of world trade with a weight of down, says a report.

The Organization for economic cooperation and development (OECD) growth estimated this year by 1.5% to 2% in the year 2012.

Prognosis is the independent Office for budget responsibility for 1.9% growth this year.

The OECD called the Government cuts "ambitious and necessary".

It said they were required to achieve a sustained recovery.

The wording is slightly different to a previous OECD report on the UK economy, if it called them "significant but necessary".

The body, which is known to consult the Governments of the countries which it monitors, also suggested that interest rates should stay low.

The OECD warned that strong economic growth in the run-up to the recession 2008 / 09 had hidden a "significant imbalances", building a undue reliance on the financial sector, create booming asset prices and too much borrowing.

Spending cuts are necessary to address these disparities, he argued.

Reforms

He also said that reforms, should take place on the housing market with the aim of reducing the prices of assets and increasing affordability.

Continue reading the most important story

[OECD] report regime reserves his sharpest language for the State of British housing market and the planning "

end quote Stephanie Flanders Economics Editor, BBC News education, should be reformed also on resources focus on disadvantaged children."

The Organization, the server data on countries their aim of promoting economic progress and international trade, said: "monetary policy should remain expansionary, even if overall inflation well above target, to support the economy."

"All in all is a muted recovery in the next two years."

The Chancellor, George Osborne, said the OECD report was a validation his Government plans for the country: "the budget [23 March] is echo, what I as the central message of this OECD report find under." "This Government has the right course for the British economy, but we have to do so much more."

Labour's Shadow Chancellor ED said balls but he thought that the OECD report was further evidence that Government was economic policy on the wrong track.

"In the real world are evidence that his reckless plan, cut you deeper and faster than any other major economy in the world doesn't work," Mr said balls.

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Mexico 'headed for strong growth'

22 March 2011 last updated at 14: 54 GMT needs Mexico, more markets for its were to be found, said Mr. Cordero Mexico problem drug violence is serious, but there is no evidence is put off investors are, Mexico's Finance Minister said.

Ernesto Cordero told the BBC that the tourism sector also seemed unaffected by concerns about violence.

Mr. Cordero, speaking in London, said that Mexico was set, continue to set its strong economic performance, with growth this year of 4% to 5%.

He said the impact of rising oil prices on the U.S. recovery is a major concern.

The Minister said that Mexico was for and solution to the problem of crime, a reference to the drug-related violence, high murder rates in some regions of the country has seen.

"There is no evidence investment comes not to Mexico or the investors are because of the violence is postponed," he said.

Wholesale

Mr. Cordero said that within this positive picture, it was clear, some cities suffer and to relocate missing on investments in the other parts of Mexico were tend to.

Mr. Cordero believes that the rest of Latin America may be a huge market for Mexico

"We try to solve local governments, municipalities and State Governments the problem and to help keep and attract investment," he said.

As for tourism, "we have very high rates of occupancy, it seems not affected," said Mr. Cordero, added, that the priorities for the violence were not usually tourists visited.

Mexico's economy grew by 5.5% in the last year its fastest annual rate in 10 years according to official figures published in February.

In contrast to many emerging economies are suffering from Mexico not high inflation, running at 3.6%, 4.5% in 2010.

Mr. Cordero said that economic growth meant that Mexico would have to strongly and quickly to recover from the global economic crisis.

He conceded that the Government had to do more broadcast to Mexico's economic success.

"We lack a good strategy to communicate our achievements in the field." "People are surprised to learn that living conditions here in Brazil, such as the better as is."

Figures from the International Monetary Fund show that Mexico's GDP per capita is $14,300 (£ 8,700), while Brazil's $11,300.

Rising oil prices are a concern for Mexico in the face of possible impact on the world economy, especially in the United States.

"We must have economic recovery in the United States," Mr. Cordero said.

About 80% of Mexican exports are in the US market down by 90% a few years ago, but Mexico's markets are not diversified enough, Mr. Cordero said.

He added that his country had to more to Asia and Latin America.

"Mexico not the only Latin American country, the consolidation of its middle class and create a large market is", the Minister told the BBC.

Mr. Cordero is a strong contender for the presidential candidate for the National Action Party (Pan) in next year choice, several Mexican political analysts to be.

Read more >>

Q & A: Why rising food prices

22 March 2011 last updated at 10: 50 GMT food prices have risen worldwide.

And hit with floods farmland in countries such as Australia, which exported its wheat and sugar cane all over the world, there are fears that they could continue to rise.

The wholesale cost of food records according to the UN food and Agriculture Organization (FAO) hit its highest monthly figure in January.

Prices were higher than its peak in 2008, when a food crisis prompted riots and demonstrations all over the world.

Oil prices are also edges that reached their highest level in two years.

Why rising food prices?

After the 2008 peaks, good harvests for basic food prices helped draw.

But in 2010, exporting countries supplies damaged storms in some of the world's largest food.

This has helped, you push food prices almost 20% higher than a year ago, according to the FAO. (The 2010 number was slightly below the annual measure for 2008 as a whole.)

Floods hit the planting season in Canada, and destroyed crops of wheat and sugar cane in Australia.

In addition, drought and fires devastated crops of wheat and other grains in Russia and Russia calls exported the surrounding region in the summer to ban.

As a result wheat production expected to be lower than this year will be over the last two U.S. Government estimates.

Year global production global consumption stocks (end)

Millions of tonnes source: US Department of agriculture

It will be the number three on the files.

But what is crucial, it is expected a further important factor in the level lag behind the increasing demand for food,.

Have the prices for all food increased?

The picture is mixed.

Not as much as other raw materials, rice, which is a staple food in many Asian countries, has risen since a record harvest is expected this year.

In addition, not the same price pressure have experienced some countries that rely on supplies from disaster affected exporters.

Prices for maize in East Africa, where it is the most important food culture, for example, to up to 50% after bumper harvest declined.

There were also more localized weather problems. You are no less important to farmers and consumers in these areas but less coverage - have received.

Onion prices have risen in the last month, after heavy rains in the West, where much of its supply comes in India.

How many Governments around the world has come to be the Government under strong pressure, as onions are such an important part of the Indian diet.

In Central America, has damaged bean cultures lack of rain and caused the largest single price increases, according to a recent FAO report.

The price of red beans, part of which nutrition in the region, has a staple in the last year in El Salvador and almost Honduras triples.

What is with speculators?

The FAO says speculators, the raw materials on the financial markets Act are not to blame for the enormous increase in the prices, but they have made the matter worse.

Take for example sugar. Production was with the growing demand from developing countries, to keep prices substantially increased pressure.

But the Economist Intelligence Unit also refers to the role of speculators, discovered the situation as an investment opportunity and "exaggerating" the price rises.

The movement of the world (WDM) is committed, these bets on prices put an end to areas.

She want more regulation from the buying and selling of futures contracts - an agreement are a commodity at a certain price at a certain time to sell.

They were created to reduce uncertainty, because the manufacturer has a guaranteed price and ensures the buyer the goods they need. Effectively, it is a way for both sides to reduce the risk of doing business.

But the WDM and others think that trade these contracts such as shares and stocks nor pushing higher prices for food at the expense of the poorest people.

And what is happening to the price of oil?

Read the most important story that the price of a barrel of oil has exceeded $115 on the London market, the highest level for two and a half years.

There have been sharp increases in the last weeks of political turmoil in oil producing countries in the Middle East and North Africa.

This uncertainty is the increasing demand for oil.

Analysts refer thousands of new vehicles in particular to the thirst for energy from China to its factories and power fuel.

Such as food, it is difficult to escape the impact of rising crude oil prices.

It not only directly affects the cost of fuel and energy, but also feeds were in the prices of the other by increasing the cost of production and transport.

As many economies around the world to restore a painful global recession fighting, are not wage rises to keep up. So many really feel the squeeze.

Read more >>

Reconstruction will cost Japan 25tn Yen

23 March 2011 last updated at 07: 53 GMT the earthquake and tsunami caused massive damage to Japan's infrastructure Japan have after the deadly earthquake and tsunami, it costs about 25 trillion yen ($ 309bn, £ 189bn said has), rebuild the country.

The costs are about 6% of Japan's overall economic performance in 2010 and is the largest estimate so far.

According to the World Bank, Japan must new create up to five years and restore the damage.

The devastation was described as the biggest crisis in the country since the end of the second war.

The confirmed death toll from the earthquake and tsunami is now 9,079, with 12,645.

Significant failures

According to the Government the future can derail damage to infrastructure and the uncertainty of the nuclear power station Fukushima Daiichi Japan's fragile economic recovery which.

Japan is power deficiencies as well as shift confronted difficulties products around the country.

Continue reading the most important story

the earthquake impact on the economy, at least on the supply side, may be larger than the Kobe Quake for 16 years "

Ryuzo MIYAO quote end Bank of Japan"The impact of the planned power outages will be expected to be significant"Fumihira Nishizaki said", Director of macroeconomic analysis of the Cabinet Office.

These questions are difficult for some of the largest exporters of the country, such as automakers and electronics companies, production on their factories restart make.

Japan's economic growth is driven by its successful export sector.

Analysts say that growth will suffer until infrastructure problems have been resolved and you start again with full capacity factories run.

The Bank of Japan warned of the impact on growth.

"This quake the State of Japan's economy and output serious causes," said Bank Governor Masaaki Shirakawa of Japan.

Further slowdown

Japan's economy was struggling to come out of the recession and the global economic downturn even before the earthquake and tsunami hit.

It was overtaken by China as the world's second largest economy after its economy 2010 shrank to 1.3% in the last three months.

Analysts say that the current crisis, which now considered more severe than previous earthquakes like that hit the Kobe Japan growth brakes.

"We must be aware that the earthquake effects on the economy at least negative, on the supply side might be larger than the Kobe Quake 16 years ago and be renewed," Ryuzo MIYAO, Member of the Board of Bank said of Japan.

Read more >>

Graphics: Eurozone of woes

The euro area as a whole emerged from recession, but recovery remains incomplete and in some cases, fragile.

Growth rates saw healthy in the second quarter of the year (April to June), with Germany in particular recording a strong bounce-back.

But since then the pace of recovery in most large European economies has slowed down.

In the 16 countries that have adopted the euro, growth was 0.4% in the average from July to September, down by 1% three months earlier.

However, the image is in the Republic of Ireland and Greece, which had to put both to European partners for the financial assistance and whose economies are in recession still gloomy.

The United Kingdom, which is not in the euro area, is shown in grey in the chart to compare.

Read more >>

Q & A: Why importance of bond markets

1. December 2009, at 14:48 pm last updated Governments auction bonds government bonds to was money very much in the news in recent months.

Financial health be obtain, they can means also an important opportunity for countries seen as a barometer for a Government.

This is because the other concerns the markets on the public finances of the country, the more expensive it is for the Government to auction its bonds.

That is why countries like Greece, Portugal, and the Irish Republic it so much more expensive interest on their bonds this year win found have.

What is a bond?

Governments borrow money through the sale of securities known as bonds to investors. In return for the investor, the Government promises cash pay a fixed interest rate over time - say 4% every year for 10 years. At the end of the period the investor is paid the cash they originally cancel that particular bit of government debt is paid. Government bonds have traditionally been seen as ultra-safe long-term investments and are held by pension funds, insurance companies and banks, as well as private investors.

What is a bond market?

Once a bond is issued - and the Government has the cash - who can investors believe it and collect the interest each year until it is refundable. But investors sell can also bind to the financial markets. The price of the bond will vary as the Outlook for interest rates changes. So, for example, if the markets think that interest rates will rise sharply, then decreases the value of a bond payment fixed one of 4% for the next 10 years. Bond prices fall even if investors think it a risk of the Government, which has is the bond unable to make the annual interest payment or repayment of it are the fears in their entirety in the run-time and these Irish down bond prices was pushing have.

What is a bond yield?

That sounds complicated, but is not! The yield is the return of an investor who buys the bond to the current market price. Let us take an example. A bond is sold by a Government for 100 euros, paying an annual interest rate of 4% or 4 euro per year. The yield is 4%. But then the market price of the bond falls to 50 euro. The interest payment (coupon) is still 4 euros per year. So a 50 euro investment, the investor can get an annual payment 4 euro, for which a return or "Yield" of 8% is. Market commentators usually quote bond yields, but as prices. The important thing to remember is that bad news for bond prices down, that is until pushes bond yields.

Why important bond markets?

Because they determine how much it is, to borrow a Government. If a Government wants new money giving new bonds. But to pay the bonds at an annual interest rate is close to the current yield on bonds, which it has issued previously and are now on the market are traded (see above). If a crisis of confidence drives leads market the Government has so pay more for new bonds and borrowings - possibly much more. (But don't forget that it affects the cost of paying the annual interest rates of bonds, the existing, because the interest rate for the life of the bond is set).

What happened to Irish, Portuguese and Greek bonds?

Their market prices have fallen in the last few months is the income (see above). The return of Irish 10 year bond reached about 9% at one point. This is very high. The British Government - despite all his financial troubles — can be rented for 10 years at just over 3%.

Read more >>

Viet Nam meets 13.9% inflation rate

24 March 2011 last updated at 08: 23 GMT Vietnam's weaker currency has many of the country's inflationary pressure of Vietnam's annual inflation rate rose to its highest level for two years, official figures show more.

The country's consumer price index recorded a 13.9% last year to March, according to the Government general statistical office.

Consumer prices increased by 2.2% from February, the largest monthly increase since May 2008, in particular the higher food and fuel prices driven prices.

Viet Nam has one of the highest inflation in Asia.

In February devalued its currency by 8.5%, put it further upward pressure on prices.

However it has included the inflation since the interest rate in an effort to raised.

Read more >>

Should we fear high oil prices?

Last updated 7 March 2011 at 09: 04 GMT by Laurence Knight business reporter, BBC News shades of the 1970s..? The price of oil has a nasty habit predict global recessions.

The Yom Kippur war of 1973 and the Islamic revolution of 1979 both on cracks in the oil price led the economic downturn, mapped out.

In recent times, a record was preceded the recession of 2008 / 09 run-up in the price of oil and other raw materials.

With energy prices already well on the rise, is before the recent crisis in the Middle East and in North Africa, hit the global economy for an another tumble headed?

Problems and bubble charts

First a little history.

Oil is an international commodity, the price of which is set by global supply and demand.

The oil price shocks of the 1970s will were very much a supply-side history: crisis in the Middle East oil exports, disturbed send prices spiral and help feed of stagflation in the West.

Perhaps the most important result, that it petroleum of exporting countries (OPEC), long the hand of the Organization to limit global supply and maintain a higher oil price was after the crises of were could.

On the other hand the 2008 commodities bubble - in which was crude oil played a leading role - a different story.

..... .or of the recent commodity bubble?

Many have blamed that incident on financial speculators, but economist Paul Krugman argued that the problem was global demand.

With populations and incomes ever in Asia, it seemed a relentless increase in the demand for energy will be.

And with a finite limit of hydrocarbons in the ground, "Peak Oil" - the point where global oil production reached its highest practicable rate - was the keyword.

Double whammy

So do what we are? The 1970's or 2008?

Unfortunately, the answer could be a combination of both.

Shortly before the current turmoil in the Middle East began, Professor Krugman was already argued that the strong global recovery - underway led anywhere outside of the forlorn West-, exactly the same economic conditions that produced the previous rise in raw material prices.

And the problem is not only manifested energy prices - food, metal, and cotton are also on the up again.

Continue reading the main story "what the commodity markets tell us that we live in a finite world, the rapid growth of the emerging pressure on limited supplies of raw materials, is placed in the driving their prices", he said.

Now, added with Libya in the mix, the price of Brent crude has more than tripled since hitting a low point in December 2008.

And it is all-time high, only about 20% below the this, the you in July 2008, shortly before the global financial crisis set.

Stretching and dissemination

But Libya is how significant you may questions.

Finally, it is only 2% of global oil production, although its share of the European market is estimated at about 10%.

So far is it estimated that between one third to a half of exports have disrupted Libya oil which.

But even if all his 1.6 million barrels of oil per day were shut down, Saudi Arabia - the world's largest oil producer - promised in additional step.

The Saudis-that dominieren-OPEC, say they have an extra 4 million bpd in spare capacity, so what is the problem?

Declan Curry that receives the money you spend for gasoline

Thanks to the resurgent global demand, spare capacity is already very excited about, and what the Saudis have to offer is pretty much.

Secondly, markets are concerned about difficulties spread far beyond just Libya.

Have been seen already in the Iran - a much larger oil producer - as well as in Bahrain, gas-rich Algeria, and more recently in Oman protests and government crackdown.

Out of Pocket

So is that we are headed for another recession if oil prices keep climbing?

Well, not necessarily.

Economies had decades to get to high and volatile energy prices, with the result that people - especially Europeans - use energy much more efficiently today.

However, say many economists who play bubble 2008 raw materials a role in the subsequent financial crisis and recession in the West.

The argument is that the rising food and energy bills were what already affect corporate earnings subprime borrowers in outright default on their mortgages, the first in a series of financial dominoes fall tilted.

But now, that the property in the United States and Europe - but perhaps not in the UK - bubbles have have been cut, the same financial crisis should be repeated with hopefully less.

Instead, that the higher oil prices probably means round - this time, but only if it remains elevated for several months and begins, a further squeeze on budgets of households is passed by the consumer.

And this will be particularly painful for households with low income in the West, the bulk of their income energy spend.

Price value?

What is more worrying is that price increases at a time when central banks are coming under increasing pressure to boost interest rates start.

And this is particularly the case in the United Kingdom twice the Bank of England target inflation is currently running.

Something else to ensure

If the price of oil at $120 per barrel stayed, it would be a one-time boost in UK retail inflation of 0.48%, according to a survey by Andrew Clare cause prices of Fathom financial consulting.

In Europe and the energy-inefficient 0.51% to 1.63% would be us, the impact on consumer prices.

If it rose $150, and remained there - the impact would be doubled.

The dilemma for the Western monetary policy is particularly unpleasant, as the only way for them, is to keep inflation low by households in their countries to punish even more by increasing its borrowing costs.

Nevertheless, it is too early to say whether the price of oil high for long is to remain enough to such doom and gloom.

And if it means the world gets a stable and democratic Middle East, then perhaps a price is worthwhile.

Read more >>

Portugal receives debt downgrade

16 March 2011, last updated at 08: 26 GMT ratings downgrade will likely make it more expensive for the Portuguese, to borrow money, Moody's has rating Portugal's sovereign debt, citing the country's need, debt and poor growth prospects cut downgraded.

The credit rating agency cut by two notches from A1, A3 Portugal and gave the rating on a negative Outlook, which follow on further downgrades.

Meanwhile, Portugal's opposition party has announced it is strict against the plans of the Government.

The Prime Minister has warned that the country could be a Bail-Out.

"The result of a political crisis would worsen the risks for our economy and to the intervention lead," he said.

Portugal is loaded with high levels of debt and is fighting for an international Bail-Out, to avoid similar as those of Greece and Ireland.

Political deadlock

Prime Minister José Socrates was the latest in a series of cost-cutting measures Government last Friday.

The plans, the cuts to the health and welfare budget, meant investors and EU colleagues say, that it can meet its debt obligations without outside help.

However, the austerity package is met with fierce opposition, and the Prime Minister has warned that the measures win does not support, his country in a Bail-Out can be forced.

The main opposition party has now decided, could formally oppose the plans, lead the political impasse.

This could force the current minority Government overthrow general elections.

"I have fought to prevent this scenario for six months," Mr Socrates said Portuguese television.

Negative outlook

Despite Moody's two notch downgrade, the Agency remains still prices Portugal as "investment grade" and the country several notches above the more risky "speculative grade" ratings, which has occurred after Greece.

Moody's said "the costs of financing market is likely remain high until the deficit has been reduced to sustainable levels and the Outlook for economic growth have improved" in a statement.

Portugal on Wednesday sold 1 billion euro worth of 12-month Treasury bills at an auction.

The return of the debt was seen in a previous sale to the March 2 4.331% from 4.057% but below the record level in December.

Investor demand was also less than at the last auction and earlier this month.

Downgrade is likely to, nor more expensive for Portugal money on international markets to increase.

The country's ten-year cost of borrowing hit a new high of nearly 8% last week, and has more than 7.5% since remained.

Moody's has given a negative Outlook on the new rating, which means that the rating could be downgraded further.

This indicates that Moody's, is not sure that the Portuguese Government on the reforms provide it announced recently.

Standard and poor's, one other credit rating agency, recently announced that debt it also Portugal's A - rating - equivalent to A3 checks Moody's rating - for a possible downgrade.

Read more >>

Global problem

15 March 2011, last updated at 12: 12 GMT Jorn Madslien business reporter, BBC News Japan has stopped production of cars and components for export and it is not yet clear how close this abroad with Japanese automaker its factories after the earthquake and tsunami will have, Investors wanted to immediately out.

On Monday, the value of the shares in the Japanese car companies began as investors fell up to sell.

First of all, many of them bought shares in automaker of the world instead - based on the logic that non-Japanese automotive company would fill the gap by Japanese car manufacturer could not be delivered.

"Hyundai and Ford cars now are good replacement for Toyota, and more, can caterpillar tractors made in China, Komatsu's country movers, replace" according to Peter Morici, a business professor at the University of Maryland.

"Globalization offers Japan export customers alternatives she not a decade or two above could have enjoyed."

Parts shortages loom

But during such a crisis, globalization poses huge problems.

Read the main story

"all communities that have supported many of these plants have uprooted or are still unclear"

end quote Paul Newton motor industry analyst, IHS global insight from now, investors have come to recognize that you weiterHonda the difficulties of companies such as Toyota and Mazda, Nissan is similar to in Detroit or Chennai in Sunderland or Seoul faced.

The hard truth in this devilishly complex and globally networked world of motoring is that they all addressed parts lack - if not now, then probably very soon.

"The suppliers production total production could Newton, slightly, according to Paul motor industry analyst at IHS global insight, influence" "given that some provide plants of the affected component with systems and components, the not easily to other production sites can be moved [automakers] facilities all over the world."

'Tragic loss'

The North-East of Japan, where the most devastation caused the earthquake and tsunami, is the home to many of the country part of car manufacturers, supplying car manufacturers not only in the vicinity, but all over the world.

Some 20,000 parts are required to stop a car building

Toyota President Akio Toyoda points out that "those taken directly and vastly affected our distributors, suppliers and many other partners are".

Japanese specialist companies have components such as batteries for hybrid cars, electronic parts and engine parts supplies for years.

But many Japanese roads and ports in tatters and with own production facilities to stop - in some cases because manufacturer below or because the power deficiencies are the component own suppliers after it's clear that many parts simply not in the near future is.

"The tragic loss of life and homes across the region means that even if fixed infrastructure and facilities can, entire communities have supported many of these plants have uprooted or are still unclear," Newton says Mr.

Complexity

And even if the components are made, they get shipped - whether factories in Japan or of the country - would be difficult.

Continue reading the most important story

until now, we do well, but the crisis should be extended emergency would cause "

Renault Samsung in South Korea quote end this could prove very difficult for manufacturers, and the problem could last for a long time."

"A finished car requires more than 20,000 parts," observed Tong Yang securities motor industry analysts.

"It is difficult to predict if production [in Japan] can continue until we know which parts of car manufacturers are affected and to what extent."

It is also difficult to predict if parts will start bottlenecks, bite all over the world.

"We have an inventory of two to three weeks," says an official at Renault Samsung in South Korea for Nissan Almera and sunny cars produced and imported about a 10 of its parts from Japan.

"So far are we do well, but should the crisis be extended emergency would result."

In the United States some car manufacturers have already to share cut back on overtime news according to industry journal automotive.

And with parts shortages threatening to have investors began shares nothing with even the slightest touch of the automotive industry - send lower shares in automaker to shed quite a bit across the Board.

Uncertainty

About investors often react, and on this occasion, they appear once again done according to Nomura, who describes the reaction as "exaggerated".

The sell-off of shares in Toyota and Nissan is particularly hard to shave 8% and 10% discount on the value have been.

But not more than 2.4% as a result of should fall on the two automakers operating the earthquake and tsunami, Nomura's analysts predict, although they do not expect to hear investors.

For the time being is the only thing investors are sure that much about the global impact on the automotive industry remains unknown.

And many of them fear that the situation becomes clearer, new problems will arise.

Read more >>

Riots in Bahrain

16 March 2011, last updated at 12: 02 GMT by Simon Atkinson business reporter, BBC News oil is the key to the Bahrain trying economy - but it, its dependency to reduce Bahrain was the first place in the Middle East to hit oil.

But look, good number one in 1931, was only discovering the Gulf Kingdom so far.

The product accounts for only about 15% of its economic output, and the economy is dependent on other sectors, notably financial services and tourism.

But - in view of the lack of taxation in the country - oil, important source of financing is still the Government.

Now, this previously peaceful State is shaken by mass demonstrations, enforces an influx of Saudi Arabia and other foreign troops and a violent suppression of Bahrain security.

So, would what further interruption in the Kingdom means for its economy?

Banking sector

Bahrain steady growth - of about 4,3% has seen in the first nine months 2010 according to the latest data available.

On the other hand led to the demonstrations in Egypt and Tunisia - which are ultimately motivated guides - protesters in Bahrain apparently not due to problems of poverty to the fall of the countries.

However, monitor says enormous natural resources, not Julie Richards, Middle East analyst at the London Business compared with other countries in the region, Bahrain index.

"More than Egypt or Tunisia range is of course, but to the Gulf region, it is not so wealthy as Qatar or the United Arab Emirates [U.A.E.] for example," told the BBC.

"It has oil production, but this is quite small." "It has a financial center and other industries such as tourism, are very important in the Kingdom as well."

Continuation of the main story

Bahrain is a place, very safe and very inviting for people from everywhere. "We don't want that beatings take a costume picture"

Nabeel Kanoo quote end head of the Bahrain industry and Chamber of Commerce and industry Tourism Committee some banks still have their regional in Bahrain's capital Manama bases, and it remains a Centre for insurance and Islamic banking.

There are about 400 licensed financial institutions, including 138 banks, of which 28 are purely Islamic, according to the Central Bank of Bahrain, which says held $224 billion in total assets of the banking sector in Bahrain.

There are nearly 170 insurance companies, but has Bahrain of Dubai in the United Arab Emirates for the title of the financial centre of the Gulf was overtaken.

"By examining the social risk"

Until recently, Bahrain's banking and stock exchange despite the protests was left open.

But, that all changed on Wednesday 16 March, when until further as the Government closed declares state of emergency stock exchange the Bahrain.

How to create a Grand Prix circuit was an effort to enhance Bahrain's economic attractiveness and progress

Some analysts say that the violence can international companies to consider their position on the streets.

HSBC and Standard Chartered - two of the largest foreign banks in Dubai - have in fact, just announced the closure of all its branches, the safety of the staff ensure.

"Investors are re-evaluating the risks in the Middle East and Gulf region," says Mrs of Richards. "But may not drag businesses from the region as a whole - she could look - for more stable basis perhaps in Abu Dhabi and Qatar as.."

'Bad image'

A further key industry is tourism, which is currently just under 9% of the Kingdom's GDP - something has said it hopes to increase to 11% by 2020.

The tourism sector had a lot of potential and witnessed rapid development, says the Bahrain Chamber of Commerce and industry's Tourism Committee head, Nabeel Kanoo.

But he said that increasing protests, the Gulf News "would spread Bahrain is not secure and it is not true," he said, speaking before foreign troops in the country.

"Bahrain is very safe and very inviting for people from a place." We will take this image a costume beating not, "he added."

MS Richards said it each year giving you signs that visits, especially from Saudi Arabia, a great source of about two million visitors have been canceled.

A means to increase the tourist has international events - including the formula 1 Grand Prix hosting was.

But now cancelled the season-opening race because of the unrest in the country, something that Mrs Richards feared would "give a very bad image of Bahrain's tourism industry".

Read more >>

Currency wars

9 November 2010 last updated at 00: 14 GMT by Andrew Walker economics correspondent of the BBC World Service Dominique Strauss-Kahn said cooperation between countries had weakened since the financial crisis is "Currency war", Managing Director of IMF and the Brazilian Finance Minister, among other things called.

IMF chief Dominique Strauss-Kahn told the BBC last month, that it use signs that countries tried their currencies "as a weapon".

For its part, Brazil Guido Mantega said devaluations of advanced countries was a new trade war.

"We are in the midst of the war an international currency," he told a meeting of the industrial leadership in September. "This threatens us because it takes away our competitiveness."

But what does this all mean?

There are some main elements, two of them are fairly new, but the first is a long existing one.

It is to limit China's policy of the administration of its currency and its movement against the US dollar.

It has been through several stages and during the financial crisis, China went back to keep the Yuan rise.

China tries the value keep Yuan

Move since shortly before the Toronto G20 Summit in June, it has facilitated the controls and allows the currency against the dollar, but of less than 2.5% (from now). And because the dollar has fallen, the Yuan against many other currencies as well as deleted.

Why of the Chinese restraint so that the Yuan rise much? A fear of losing jobs in export industries, that less would become competitive.

The increase compared with the dollar was not enough to meet United States is since a long time existing complaint that tampered with China its currency to gain an unfair advantage. The cry is: "Will cost American jobs."

Many in the United States complain about China, but the hands are entirely clean? Some in the rest of the world does not say.

The dollar has fallen in recent months dramatically, low interest rates, so investors have sought higher returns in emerging markets.

You must buy the currency of the country, to make these investments. Tends to its value push-up, while the dollar selling it tends, fall.

And the effect is accentuated reserve by the Federal other policy known as quantitative easing. The Fed buys financial assets and money that it pays with, must be invested somewhere.

The weak dollar has an advantage for the United States - it is this question again competitiveness. It should help American exporters.

The United States have a large trade deficit, so more exports could help the fix. Some even claim that the Fed policy to the weakening of the dollar and help, by exporting more to restore the US economy are used.

The Fed have led to a wave of money-seeking opportunities in the emerging policy. That tends to undermine their currencies push-up, their competitiveness.

It is also a risk of bubbles in the financial and real estate markets. And capital inflows can in reverse - as in the Asian crisis in the 1990s.

As to the third element in the currency of "War" of the resistance of the emerging markets, and some developed countries.

Brazil and Thailand have used tax measures to slow inflows. Japan, South Korea, and others have intervened in the currency markets buy foreign currency in an attempt to rise the own interrupt.

There is a view that they just have to live with him. The upward pressure on the currencies of many emerging markets reflects the fact that they are strong growing more than in the United States.

It's hard for them to manage, but the underlying reason is that she is going relatively well.

The currency of war is closely associated with a different theme, which many economists has been worrying for several years has the global economic imbalances,.

At the international level, it is the trade, which is unbalanced. The thing is the "current account balance", which means trade were most commonly the heart is actually and send services as well as some financial elements, including remittances, migrant workers home.

Typically trade for most is responsible but the current account imbalance.

Some countries have large trade surpluses, particularly China, Germany, Saudi Arabia and Russia. The United States is the country's large deficit.

In some countries in the eye of the storm European strong deficits admits - Greece, Portugal and Spain. Britain has also a deficit, although as a proportion of national income, it is not too large.

The other side of the international imbalances is high savings at home with a surplus country like China and relatively low savings in a country such as the United States deficit.

Households increased deficit savings in the United States, United Kingdom and other countries, because consumers are less in the course of the financial crisis by borrowing.

But international imbalances also reflect how much governments borrow and in many countries deficit, increased, partly compensate the increase in private savings.

Why does this matter? These countries where store desperately want to more export has increased. You want more foreign sell consumers at home drawing in their Horne offset.

This applies to the United States, Great Britain, and many others. You could more easily, if consumers in China and the other surplus countries prepared more imported goods were, buy.

An increase in the Chinese currency would not a panacea, but it would probably help.

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Riots shut down Bahrain banks

16 March 2011, last updated: 12: 16 GMT the closures came as they all said response to the growing turmoil and security all HSBC and Standard Chartered close their offices in Bahrain.

The decision came as the Bahrain stock exchange because of the State of emergency of the country was shut down.

The stock exchange was not under pressure prior to the conclusion, move in line with other world markets.

But costs of borrowing met the Gulf State a new high on Tuesday, the yield on your nine-year international bond was 6.84%.

The yield is increased by 2.1 percentage points since November, and is trading at a higher level than the much more heavily indebted Lebanon.

It was cut on Tuesday by A - to BBB - rating agency Fitch of the evaluation of the creditworthiness of the Kingdom of two notches so that it only a two hot about the risky "speculative grade" level.

Bahrain has debt outstanding billion - about 40% of its annual economic production - according to data from Bloomberg, of which about $2 billion to repay this year is due $7.

"National security"

Forces which had blocked Bahrain financial district of demonstrators in the streets, taken before the demonstrations were violently divided security targeted on Wednesday morning in the last few days.

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Bahrain compared with other countries in the region, has no major mineral deposits "

end reporter, quoting Simon Atkinson business BBC News of the Bahrain stock exchange decision close" due to the Declaration of the national security in the Kingdom "was made, site of the stock exchange said in a brief statement on your."

HSBC and Standard Chartered quoted the security of its employees for their own decisions, invite to close.

You said that ATM and other automated banking services continued.

They are two of the largest foreign banks in the country, with eleven branches and 834 employees between them.

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Business connections

18 March 2011 last updated at 08: 54 GMT by Saira Syed business reporter, BBC News, Singapore assessment of the impact of Japan's disaster on your PartnersIt trading is made almost a week-long BBC correspondents since the deadly tsunami and earthquake Northeast Japan, and the economics begin to be felt in Asia.

While efforts to tackle the disaster continue, start analysts, the impact on various sectors and industries look at.

Some countries could be exporting energy and raw materials a growing of demand from Japan, see below.

But others who are left to the production of components on Japan are bracing themselves for bottlenecks in the offer.

In the short term, South Korean companies already benefit from the closure of production in Japan.

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Japan is China's largest source of imports accounting for about 13% of purchases from abroad "

end quote Martin patience BBC correspondent in Beijing" on semiconductors, auto and steel companies, South Korean and Japanese companies are competitors "Jae-hwan of Daewoo securities in Seoul said huh."

"In the Japanese shutdown factories produce companies and their products can not demand and orders are on Korean manufacturer," he added.

But the benefits remain only as long as the situation in Japan is not started to influence the components provides the Japan to Korean companies.

"IT companies such as Samsung Electronics and Hynix keep inventory so that they can deliver their products, as long as not exacerbate the situation." If Yes, they have difficulties supply might have components from Japan "Mr said huh."

It is a very similar situation in Taiwan.

Some countries rely on were, which were delivered via Sendai port would

Manufacturers make appear, could suffer semiconductor equipment, cars and their parts, because their raw materials from Japan are mostly imported.

The BBC correspondent in Taipei, Cindy sui, says that Taiwanese chip maker have one or two months worth of supplies in their inventory.

If Japanese factories on normal operation can return consumers soon bottlenecks could face and price increases.

Sun Ming-te, the macro-economic forecasting centre in Tapei, said: "If in a few weeks of the problem not be majorly impact on company mobile phone manufacturers such as HTC, semiconductor companies such as TSMC, and built the factories of Japanese car companies such as Nissan Vehiclestoyota and Honda."

He points out that the tourism industry, is already affected with many Japanese visitors travel to Taiwan cancel.

Taiwan gets the second - most tourists from Japan, about a million people per year.

Production in South Korea could suffer if it delays in component items from Japan

High-tech electronics and components are important for the industry in China and the interruption supply may be affected.

BBC correspondent in Beijing, Martin patience, says that Japan China's largest source of imports is accounting for about 13% of purchases from abroad.

Much of what Japan sends to China is mounted in end products that are exported all over the world.

Stephen Joske, from the Economist Intelligence Unit in Beijing, said: "the price of a Nikon camera has jumped from 2,000 yuan ($304;)" £ 188,50). "

He pointed out that food and vegetables could remain high prices, which rose significantly in China, due to the demand from Japan.

Mr Joske said "China already quite heavy food and vegetables inflation learns in recent months due to bad weather,".

"What do the events in Japan is that it takes a bit more for these prices again down."

The immediate concern in Japan is at the moment which defects, and the need for alternative sources is extreme power immediately.

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, if you use export, who increase in national income be feed right through the economy "

end of Analytics quote Matthew Circosta Moody" Australia is well positioned, given to Japan's increased demand for energy products "Matthew Circosta of Moody's analytics in Sydney said the significant errors in the Prefecture of Fukushima plant."

Australia is a major exporter of thermal coal and liquefied natural gas (LNG).

"Thermal coal and LNG exports will grow certainly Japan energy growing demands further use," added Mr Circosta.

In the coming months as construction and reconstruction begins in Japan is to get more Australia.

Australia exported iron ore and delivered coal in high demand for steel will make.

Mr Circosta said "If you export profit, that boost income right be the economy, feed".

And while some of the volatility in the Japanese markets have felt seen Mr Circosta, says Australian markets which should finally to calm markets and reverse - their losses.

Indonesia could be another source of energy and raw materials for Japan.

"Indonesia Japan exports are mainly raw materials, iron ore, oil and gas." It said is a rise in demand during the reconstruction of "Anton Gunawan of Bank Danamon."

The question is, but it can boost production quickly.

Eric Sugandi, Standard Chartered Bank in Jakarta, said: "Indonesia not increase oil export abruptly." "In fact, domestic production of oil declined over the last few months due to lack of exploration."

He added that even if Indonesia could boost production of LNG, the Government has prioritized domestic demand.

The impact on India is much more indirect, how to Japan a major source of foreign direct investment in the country.

"Japan is a long-term investor, its sovereign entities in Indian infrastructure such as the Metro Delhi and the Delhi-Mumbai corridor, have invested", said Ajit Ranade of Aditya Birla Group in Mumbai.

He added that Japan was also a growth area for Indian IT companies.

"If Japan's economy is suffering, then that long-term investment in India could suffer."

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China's drought could beat prices

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1 March 2011 last updated at 10: 24 GMT by Damian Grammaticas BBC News, Shandong province in northern China, farmers are working hard to try to save their crops from the drought across northern China swathes of land are dry, parched by drought.

In some areas these are the driest conditions in a lifetime. Snowfalls in recent days have helped a little, but still, across huge areas of land, water is in short supply.

The countryside is dotted with empty dams. Standing on top of one, near Qufu in Shandong province, you can see just a tiny muddy pool in the centre of a dam that is hundreds of metres long.

Sitting rusting on the earth is a small boat. Along the dry dam floor people have been planting rows of crops because it has been like this for so long.

Li SI Jiao, 77, his back stooped with age, shuffles slowly along a path on top of the dam. His face is creased and weathered with lines. He gestures at the dam and says the water used to stretch all the way to the village in the distance, but no more.

This is China's breadbasket, the heart of its grain growing lands, and all around are Shandong's wheat fields. They are full of lines of seedlings, sprouting from the ground, but wilting and yellowing.

A grey, polluted haze hangs in the air. Every few hundred yards of men small groups and women are working to try to save their crops from the drought.

China is the world's biggest grower and consumer of wheat. In normal years it is self-sufficient. But if it has to import grain this year then that will have to impact far afield.

Already just the warnings of a possible shortfall in China's crop have put pressure on global wheat prices.

Emergency measures

As we approach one group of farmers they crank at old engine into life. It sputters and then water spurts out from a thick pipe dangling down to open well perhaps 20 m (65 ft) deep.

The well belongs to Liu de Xu and his wife Wang Li Jun They are sharing the water with their neighbours, and it has to be rationed. Yesterday it was Liu de Xu's turn to water his tiny patch of land, about 10 m wide and 50 m long, where his wheat is planted. Today it is his neighbour's turn.

Warnings of a possible shortfall in China's crop have put pressure on global wheat prices

Mr. Liu and his wife are now desperate to prevent their seedlings from dying.

He has a metal contraption slung over his shoulder. Walking behind him, she guides it as it tears at the ground and credit fertiliser to keep spreads growing the crop. It is hard, manual labour, and Mr. Liu puffs and strains as he marches along.

Then his wife grabs some of the wheat plants and runs over to me. "Look," she says, "they are all like this."

The tiny shoots are no more than a few centimetres long, but half of them are already shrivelled and drying.

"We need a solution to this problem, if there is not enough rain we'll all have to abandon the fields and go to the towns to find work."

To stop that happening China's government is spending $1bn (£ 600 m) on emergency measures to fight the drought. In practice that means digging wells, and pilot of them.

We find giant a team with a rig they have constructed in a field. Four men in blue overalls and red hard hats haul giant metal pipes into place, then drill down.

It will take them several days to dig. But the foreman tells me that this is only a temporary measure, only more rain can solve the basic problem of the drought.

The last well the team completed two days ago produced water for just a few minutes, then nothing more came out.

Deep under the earth China's water, on its arid northern plain, is slowly running out. It is a massive problem and China is only just starting to face up to it.

Long-term problems

Some 200 million people live across the north China plain. It is home to giant cities like Beijing and Tianjin which are expanding fast. But the area has water resources comparable to a desert country and every year as the population swells the water stress grows worse.

China's industries are inefficient, they consume far more water than those in developed countries. The country's construction intensive boom means water use is even more.

Many of the rivers in the north have dried up. Dams have blocked their normal flow, the water diverted to towns, farms and factories.

The northern megacities now rely on underground water sources for two - thirds of their needs. But the aquifers beneath places like Beijing are being drained, sinking as they are used faster than the rain can replenish them. Some fear the water could be gone in 30 years in places.

Ma Jun is one of China's most prominent environmentalists. Over a decade ago he wrote a book titled China's water crisis.

As we walk along one of Beijing's dirty canals he tells me: "in China two-thirds of our cities are short of water."

Shifting water

"But the north China plain, where many of our biggest cities and industries are found, and which is China's breadbasket, is where our water is in shortest supply." "So this drought now is making our long term problems worse."

Damian Grammaticas looks at the construction of the North-South project

The biggest fear of all is that China, now an engine for the global economy, could find that lack of water constrains its future growth.

"There is a growing understanding," Ma Jun says, "that we need to change, that our mode of growth is not sustainable." "The harsh reality is that there is simply not enough water."

The country does have huge quantities of water, but they lie far to the south, in the massive rivers that run from west to east, 1,000 km away from Beijing and the cities of the north.

So China is pressing ahead with one of the world's biggest engineering schemes to shift the water northwards.

Fond of massive schemes, the country's Communist party leaders are building the North-South water project, a giant series of canals and pipes to carry water from the Yangtze and yellow rivers to Beijing. The cost of the project is a staggering $60bn (£ 36. 8bn).

Standing on a giant crane looking down on one of the North-South construction sites you can see hundreds of workers spot-welding and cutting iron bars, building huge metal moulds to make sections of concrete pipe.

Each section is around 10 m (33 ft) high, 8 m (26 ft) wide and 30 m (99 ft) long. When complete the North-South project will deliver the equivalent of 50,000 Olympic-size swimming pools full of water to cities in the north each day.

One of the men of overseeing the site tells me that it is a great honour to take part in the project, a once-in-a-lifetime opportunity for a construction engineer.

But the scheme can only be a stopgap. The amount of water it will deliver will buy China time to change and, hopefully, become more efficient.

But it won't be enough to solve the country's water woes. China's thirst is just too great, and unless it its old ways, millions might find one day, that their water could run dry.

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