The Irish parliament has approved legislation to establish a "bad" bank to absorb problem loans in the country's troubled banking sector.
The National Asset Management Agency (NAMA) will have 54bn euros ($80bn; £49bn) to buy bad loans from banks.
The government has already pumped billions of euros into banks and nationalised Anglo Irish Bank to try to stabilise the sector.
The country's economy has been one of the most hard-hit by the downturn.
The 54bn euros will be used to buy toxic loans made by banks with a book value of 77bn euros, mainly in the property market.
The rescue plan is the biggest in the country's history.
"The Irish economy is suffering from a very sharp liquidity crisis, which NAMA is designed to counteract," said Kevin McConnell at Bloxham Securities.
But the plans were fiercely debated in the Irish Dail, with the opposition party Fine Gael particularly critical.
"NAMA is fundamentally flawed, will do nothing to get credit flowing to small business and it will do nothing to support the retention or creation of jobs," it argued.
The UK government has proposed a similar "bad" bank to handle toxic loans at Northern Rock bank.
Thursday, November 12, 2009
Renault to challenge Tata's Nano
French carmaker Renault, with its partner Nissan, has said that its planned cheap car for India will cost less to produce than Tata's Nano.
The firm would not confirm the price, but says it will be for the entry level market and "priced competitively".
The design and manufacture will be done by the Indian firm Bajaj, while Renault and Nissan look after the marketing.
The Nano is currently the world's cheapest car, with the most basic model selling for about $2,000.
Competing for India
Renault chief executive Carlos Ghosn said "the cost of this car would be lower than any car made in India today", but added there would be a difference between cost and price.
The car, which is due to be launched in 2012, will be aimed mainly at the Indian market, but exports are a possibility.
Renault also says it will be very fuel-efficient.
Launch of the Tata Nano car
Tata's Nano is currently the cheapest car in the world
India is one of the biggest growth markets for the car industry. Mr Ghosn predicts that the market there could triple to six million vehicles in 10 years.
General Motors, Toyota and Ford are all designing cheap models for India - although Ford has said it will not compete directly with the Nano.
Renault already has a joint venture with India's Mahindra and Mahindra to make the Logan Sedan. Its partner Nissan works with Ashok Leyland to make light trucks.
The firm would not confirm the price, but says it will be for the entry level market and "priced competitively".
The design and manufacture will be done by the Indian firm Bajaj, while Renault and Nissan look after the marketing.
The Nano is currently the world's cheapest car, with the most basic model selling for about $2,000.
Competing for India
Renault chief executive Carlos Ghosn said "the cost of this car would be lower than any car made in India today", but added there would be a difference between cost and price.
The car, which is due to be launched in 2012, will be aimed mainly at the Indian market, but exports are a possibility.
Renault also says it will be very fuel-efficient.
Launch of the Tata Nano car
Tata's Nano is currently the cheapest car in the world
India is one of the biggest growth markets for the car industry. Mr Ghosn predicts that the market there could triple to six million vehicles in 10 years.
General Motors, Toyota and Ford are all designing cheap models for India - although Ford has said it will not compete directly with the Nano.
Renault already has a joint venture with India's Mahindra and Mahindra to make the Logan Sedan. Its partner Nissan works with Ashok Leyland to make light trucks.
Iran's Guards in $2.5bn rail deal
Iran's Revolutionary Guards have won a $2.5bn tender to build a railway route linking the south-eastern port of Chabahar to Iran's rail network.
Transport minister Hamid Behbahani said it was part of a transit route for goods from Chabahar to the north-eastern border town of Sarakhs.
The Guards' engineering wing, Khatam-ol-Anbia, has been awarded government contracts worth billions of dollars.
These include the operation of Tehran's Imam Khomeini international airport.
Last month, more than half of Iran's national telecommunication company was ceded to a consortium partly owned by a Revolutionary Guards affiliate fund, as part of the country's privatisation of state assets.
The $8bn deal was followed by allegations that a rival consortium had been forced out of the bidding "on security grounds".
The Guards are thought to control about a third of Iran's economy through a series of subsidiaries and trusts.
The force is estimated to have 125,000 active troops. It boasts its own ground forces, navy and air force and oversees Iran's strategic weapons.
Transport minister Hamid Behbahani said it was part of a transit route for goods from Chabahar to the north-eastern border town of Sarakhs.
The Guards' engineering wing, Khatam-ol-Anbia, has been awarded government contracts worth billions of dollars.
These include the operation of Tehran's Imam Khomeini international airport.
Last month, more than half of Iran's national telecommunication company was ceded to a consortium partly owned by a Revolutionary Guards affiliate fund, as part of the country's privatisation of state assets.
The $8bn deal was followed by allegations that a rival consortium had been forced out of the bidding "on security grounds".
The Guards are thought to control about a third of Iran's economy through a series of subsidiaries and trusts.
The force is estimated to have 125,000 active troops. It boasts its own ground forces, navy and air force and oversees Iran's strategic weapons.
China production and retail rise
The latest economic data from China suggests that industrial production grew year on year at a level faster than expected.
Retail sales also rose by more than analysts had predicted, while consumer prices continued to fall.
China's National Bureau of Statistics says the country's latest economic data shows it is well on track to meet its target of 8% growth this year.
The government's huge economic stimulus package is likely to have helped a lot.
The data indicates that activity in factories and workshops increased by 16.1% in October compared to a year ago.
Optimism
That is the highest level of growth since March last year.
China's statisticians are starting to sound more optimistic than they have done in a while.
Importantly, they see evidence in this latest data that Chinese consumers are starting to make more of a contribution to economic growth here.
Retail sales were higher in October than September.
China needs consumers to spend more to spur domestic demand for the goods its factories produce, as it is unlikely to be able to rely on US consumers in the years ahead in the same way that it could before the financial crisis.
The growth in activity in the country's factories and workshops beat analysts' forecasts too.
There was better news in October's trade figures though - the rate of decline in exports last month was the smallest in 10 months, supporting anecdotal evidence from producers that orders from customers abroad have been picking up for several weeks now.
China has been trying to boost domestic demand for the goods its factories make, as exports have been declining for 12 months now.
The supply of new loans was markedly lower than many analysts had expected, suggesting that banks had listened to concerns that the easy access to credit here was creating the risk of asset bubbles and put in place more stringent conditions for those trying to borrow money.
Retail sales also rose by more than analysts had predicted, while consumer prices continued to fall.
China's National Bureau of Statistics says the country's latest economic data shows it is well on track to meet its target of 8% growth this year.
The government's huge economic stimulus package is likely to have helped a lot.
The data indicates that activity in factories and workshops increased by 16.1% in October compared to a year ago.
Optimism
That is the highest level of growth since March last year.
China's statisticians are starting to sound more optimistic than they have done in a while.
Importantly, they see evidence in this latest data that Chinese consumers are starting to make more of a contribution to economic growth here.
Retail sales were higher in October than September.
China needs consumers to spend more to spur domestic demand for the goods its factories produce, as it is unlikely to be able to rely on US consumers in the years ahead in the same way that it could before the financial crisis.
The growth in activity in the country's factories and workshops beat analysts' forecasts too.
There was better news in October's trade figures though - the rate of decline in exports last month was the smallest in 10 months, supporting anecdotal evidence from producers that orders from customers abroad have been picking up for several weeks now.
China has been trying to boost domestic demand for the goods its factories make, as exports have been declining for 12 months now.
The supply of new loans was markedly lower than many analysts had expected, suggesting that banks had listened to concerns that the easy access to credit here was creating the risk of asset bubbles and put in place more stringent conditions for those trying to borrow money.
Second SA power executive quits
The chief executive of South Africa's crisis-hit power firm Eskom has left his job, only days after denying he was to quit and sparking a race row.
Jacob Maroga's resignation was reportedly announced by company chairman Bobby Godsell a week ago.
Mr Maroga, who is black, denied it and Mr Godsell, who is white, was himself forced to quit amid racism accusations.
In 2008 South Africa was hit by a power crisis with black-outs threatening the nation's economy.
Race row
Chairman Bobby Godsell announced Mr Maroga's resignation after a heated meeting, local media reported earlier this month.
But days later Mr Maroga said he had not resigned - it had been a misunderstanding, he said.
The Youth Wing of the African National Congress accused Mr Godsell, who is white, of racism.
"The time of treating black people as subjects, who can be fired as and when the white master wishes is over," they said.
Mr Godsell resigned on Monday.
Last year Eskom, which generates 95% of South Africa's electricity, lost 9.7 billion rand ($1.2bn; £700m).
In each of the next three years electricity prices will go up by 45%, it has been announced.
Jacob Maroga's resignation was reportedly announced by company chairman Bobby Godsell a week ago.
Mr Maroga, who is black, denied it and Mr Godsell, who is white, was himself forced to quit amid racism accusations.
In 2008 South Africa was hit by a power crisis with black-outs threatening the nation's economy.
Race row
Chairman Bobby Godsell announced Mr Maroga's resignation after a heated meeting, local media reported earlier this month.
But days later Mr Maroga said he had not resigned - it had been a misunderstanding, he said.
The Youth Wing of the African National Congress accused Mr Godsell, who is white, of racism.
"The time of treating black people as subjects, who can be fired as and when the white master wishes is over," they said.
Mr Godsell resigned on Monday.
Last year Eskom, which generates 95% of South Africa's electricity, lost 9.7 billion rand ($1.2bn; £700m).
In each of the next three years electricity prices will go up by 45%, it has been announced.
Peugeot raises earnings forecast
Peugeot Citroen, Europe's second-biggest carmaker, has raised its earnings forecast for 2009 on the back a revival in the car market.
The news comes a month after the firm reported lower-than-forecast third-quarter sales, down 7.7% on 2008.
Peugeot said: "The group's production and sales performance is significantly stronger than forecast."
The group predicted fourth-quarter output would be 30% higher than the same period last year.
'Most conservative'
The firm put its more upbeat outlook down to "recent improvement in the automobile market and the ongoing success of the new Peugeot and Citroen models".
Analyst Adam Jonas at Morgan Stanley said that Peugeot had previously put out the "most conservative second-half guidance of any European [carmaker] this year".
Government schemes to encourage car purchases have boosted car sales in Europe and the US, but there are fears that demand will fall again when this support is withdrawn.
Last month, Peugeot Citroen said sales in Europe were healthy thanks to these various government-backed scrappage schemes, but that this had been offset by sales falls in Russia and Latin America.
The news comes a month after the firm reported lower-than-forecast third-quarter sales, down 7.7% on 2008.
Peugeot said: "The group's production and sales performance is significantly stronger than forecast."
The group predicted fourth-quarter output would be 30% higher than the same period last year.
'Most conservative'
The firm put its more upbeat outlook down to "recent improvement in the automobile market and the ongoing success of the new Peugeot and Citroen models".
Analyst Adam Jonas at Morgan Stanley said that Peugeot had previously put out the "most conservative second-half guidance of any European [carmaker] this year".
Government schemes to encourage car purchases have boosted car sales in Europe and the US, but there are fears that demand will fall again when this support is withdrawn.
Last month, Peugeot Citroen said sales in Europe were healthy thanks to these various government-backed scrappage schemes, but that this had been offset by sales falls in Russia and Latin America.
Reduction in UK's gender pay gap
The difference in average wages between men and women in full-time employment in the UK has narrowed slightly this year, official figures have shown.
Males in full-time employment earned an average of £12.97 an hour before tax compared with £11.39 for women, said the Office for National Statistics.
This means women earn on average 12.2% less than men, although this is less than the gap of 12.6% recorded in 2008.
The ONS data came from a survey of 177,000 people conducted in April.
The figures do not include overtime, as men tend to do more of this, the ONS said.
It found that the gender pay gap continued to differ widely between different kinds of work.
The gap was narrowest for those in professional jobs, such as in banking, where men earn just 3.8% more.
The difference in pay was the largest in the skilled trades category - a wide sector that includes everything from plumbers to florists - where the gap reached 26.2%.
Males in full-time employment earned an average of £12.97 an hour before tax compared with £11.39 for women, said the Office for National Statistics.
This means women earn on average 12.2% less than men, although this is less than the gap of 12.6% recorded in 2008.
The ONS data came from a survey of 177,000 people conducted in April.
The figures do not include overtime, as men tend to do more of this, the ONS said.
It found that the gender pay gap continued to differ widely between different kinds of work.
The gap was narrowest for those in professional jobs, such as in banking, where men earn just 3.8% more.
The difference in pay was the largest in the skilled trades category - a wide sector that includes everything from plumbers to florists - where the gap reached 26.2%.
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