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%.
Wal-Mart says climate 'difficult'
The Chief Executive of Wal-Mart, Mike Duke, says the sales environment "continues to be difficult".
The world's largest supermarket, which owns Asda in the UK, saw sales slip 0.4% in the August-to-October period at stores open for more than a year.
This comes despite the retailer lowering prices as customers battle rising unemployment. The US jobless rate is now at 10.2%.
However, profit rose more than expected, up 3.2% to $3.24bn (£1.9bn)
Mr Duke also said that customer traffic was up throughout the company and that the firm "gained market share, especially in the United States, the United Kingdom and Mexico".
Wal-Mart has said it will slash prices in the run-up to Christmas, taking on rivals such as Amazon.com and Target.
The company says its customers have not yet seen the benefits from the US economy coming out of recession.
Its UK business, Asda, performed particularly well. Sales there grew 5.6% in the quarter.
The chief financial officer, Judith McKenna, said all parts of the business - food, home and leisure, and clothing - were outperforming their respective markets.
Asda has pledged to save customers £150m ($248m) this Christmas.
The world's largest supermarket, which owns Asda in the UK, saw sales slip 0.4% in the August-to-October period at stores open for more than a year.
This comes despite the retailer lowering prices as customers battle rising unemployment. The US jobless rate is now at 10.2%.
However, profit rose more than expected, up 3.2% to $3.24bn (£1.9bn)
Mr Duke also said that customer traffic was up throughout the company and that the firm "gained market share, especially in the United States, the United Kingdom and Mexico".
Wal-Mart has said it will slash prices in the run-up to Christmas, taking on rivals such as Amazon.com and Target.
The company says its customers have not yet seen the benefits from the US economy coming out of recession.
Its UK business, Asda, performed particularly well. Sales there grew 5.6% in the quarter.
The chief financial officer, Judith McKenna, said all parts of the business - food, home and leisure, and clothing - were outperforming their respective markets.
Asda has pledged to save customers £150m ($248m) this Christmas.
BT pension deficit rises sharply
BT has revealed that the deficit of its final-salary pension scheme has more than doubled in the past six months from £4bn to £9.3bn.
The deficit has increased sharply because its assumed cost of providing pensions in the future has risen dramatically under UK accounting rules.
BT's pension update came as it saw its half-year profits almost halve, due in part to the cost of redundancies.
It made a pre-tax profit of £547m in the six months to 30 September.
This is a 45% decline on the £991m profit it reported for the same period a year earlier.
In addition to redundancy costs, the change in how it accounts for its pension deficit also depressed profits.
The firm's half-year revenues were down 1% from a year ago to £10.357bn.
When the cost of redundancies, the pensions change and other one-off factors are pulled out, BT's pre-tax, post-exceptional items profit for the half-year rose 12% to £888m.
BT is now continuing efforts to reduce its pension deficit, paying £525m into the scheme in its current financial year, and the same amount in 2010-11 and 2011-12.
At the end of 2008, current BT staff also agreed to the company's plan to end the final-salary pension scheme to existing workers for pensions earned after 1 April 2009.
However, this has not stopped the cost of the scheme's past obligations ballooning.
'Making progress'
Looking ahead at its future financial performance, BT said its trading conditions were now improving.
It now expects its revenues for the year to 31 March 2010 to decline by between 3% and 4%, better than its previous guidance of a fall of between 4% and 5%.
It also predicts that it will achieve cost cuts of "at least" £1.5bn, better than its previous guidance of more than £1bn.
BT's chief executive Ian Livingston said the firm was making "progress, but there remains a lot more to do".
Analysts said they welcomed the firm's continuing cost cutting, under which the firm is shedding 15,000 jobs, as announced in May.
Most of the jobs are going in its Global Services IT division.
"We have been very strong believers in the ability of current management to strip out costs from the business and they're delivering well ahead of market expectations," said Daiwa analyst Michael Kovacocy.
Shares in BT rose 6.3 pence, or 4.4%, to 148.3p in Thursday morning trading.
The deficit has increased sharply because its assumed cost of providing pensions in the future has risen dramatically under UK accounting rules.
BT's pension update came as it saw its half-year profits almost halve, due in part to the cost of redundancies.
It made a pre-tax profit of £547m in the six months to 30 September.
This is a 45% decline on the £991m profit it reported for the same period a year earlier.
In addition to redundancy costs, the change in how it accounts for its pension deficit also depressed profits.
The firm's half-year revenues were down 1% from a year ago to £10.357bn.
When the cost of redundancies, the pensions change and other one-off factors are pulled out, BT's pre-tax, post-exceptional items profit for the half-year rose 12% to £888m.
BT is now continuing efforts to reduce its pension deficit, paying £525m into the scheme in its current financial year, and the same amount in 2010-11 and 2011-12.
At the end of 2008, current BT staff also agreed to the company's plan to end the final-salary pension scheme to existing workers for pensions earned after 1 April 2009.
However, this has not stopped the cost of the scheme's past obligations ballooning.
'Making progress'
Looking ahead at its future financial performance, BT said its trading conditions were now improving.
It now expects its revenues for the year to 31 March 2010 to decline by between 3% and 4%, better than its previous guidance of a fall of between 4% and 5%.
It also predicts that it will achieve cost cuts of "at least" £1.5bn, better than its previous guidance of more than £1bn.
BT's chief executive Ian Livingston said the firm was making "progress, but there remains a lot more to do".
Analysts said they welcomed the firm's continuing cost cutting, under which the firm is shedding 15,000 jobs, as announced in May.
Most of the jobs are going in its Global Services IT division.
"We have been very strong believers in the ability of current management to strip out costs from the business and they're delivering well ahead of market expectations," said Daiwa analyst Michael Kovacocy.
Shares in BT rose 6.3 pence, or 4.4%, to 148.3p in Thursday morning trading.
Iraq in third overseas oil deal
Iraq has struck a deal with a consortium led by US oil giant Exxon Mobil, and including Royal Dutch Shell, to develop the West Qurna 1 oil field.
This is the second major deal the country's oil ministry has agreed with overseas oil firms this week.
The latest deal, which needs cabinet approval, is designed to boost oil production at the Qurna oil field from 280,000 to 2.1 million barrels a day.
Earlier this week, Iraq struck a similar deal with Italian firm ENI.
Under the terms of the deal, ENI will lead a consortium to develop the Zubair oilfield in southern Iraq.
The deal, which also needs cabinet approval, calls for the group to extract 200,000 barrels of oil a day, rising to 1.1 million a day within seven years.
Raising production
Last month, Iraq signed off a deal with Britain's BP and China's CNPC.
The two oil companies will develop the giant southern oilfield in Rumaila.
The project aims to almost triple output at the 17-billion-barrel field - increasing it by two million barrels a day.
These agreements are the first major oil deals Iraq has signed with international oil companies since the US-led invasion of 2003.
Iraq has the world's third-largest oil reserves, but production has yet to reach full potential.
The country's total daily output of about 2.4 million barrels is lower than it could be, because of sanctions against former Iraqi governments, lack of investment and insurgent attacks, analysts say.
This is the second major deal the country's oil ministry has agreed with overseas oil firms this week.
The latest deal, which needs cabinet approval, is designed to boost oil production at the Qurna oil field from 280,000 to 2.1 million barrels a day.
Earlier this week, Iraq struck a similar deal with Italian firm ENI.
Under the terms of the deal, ENI will lead a consortium to develop the Zubair oilfield in southern Iraq.
The deal, which also needs cabinet approval, calls for the group to extract 200,000 barrels of oil a day, rising to 1.1 million a day within seven years.
Raising production
Last month, Iraq signed off a deal with Britain's BP and China's CNPC.
The two oil companies will develop the giant southern oilfield in Rumaila.
The project aims to almost triple output at the 17-billion-barrel field - increasing it by two million barrels a day.
These agreements are the first major oil deals Iraq has signed with international oil companies since the US-led invasion of 2003.
Iraq has the world's third-largest oil reserves, but production has yet to reach full potential.
The country's total daily output of about 2.4 million barrels is lower than it could be, because of sanctions against former Iraqi governments, lack of investment and insurgent attacks, analysts say.
Air India losses more than $1bn
Troubled national carrier Air India has reported a net loss of 55.5bn rupees ($1.2bn; £719m) for the full-year to the end of March.
The loss was due largely to a 12% drop in revenue, from 152.5bn rupees to 134.8bn rupees, as a result of falling passenger numbers.
Last month, the Indian government agreed to inject 53bn rupees into the carrier to help keep it in business.
Global airlines are struggling with falling traffic during the downturn.
The International Air Transport Association (Iata) has forecast losses of $11bn across the whole industry for 2009.
Air India has been told by the Indian government to cut costs dramatically as a condition of receiving the state aid.
This could prove difficult, as hundreds of pilots threatened to strike in September to protest against the airline's plans to cut pay incentives.
The strikes were called off after the government intervened.
The loss was due largely to a 12% drop in revenue, from 152.5bn rupees to 134.8bn rupees, as a result of falling passenger numbers.
Last month, the Indian government agreed to inject 53bn rupees into the carrier to help keep it in business.
Global airlines are struggling with falling traffic during the downturn.
The International Air Transport Association (Iata) has forecast losses of $11bn across the whole industry for 2009.
Air India has been told by the Indian government to cut costs dramatically as a condition of receiving the state aid.
This could prove difficult, as hundreds of pilots threatened to strike in September to protest against the airline's plans to cut pay incentives.
The strikes were called off after the government intervened.
Latin America boosts Telefonica
Spanish telecoms firm Telefonica, owner of the O2 mobile network, has reported a rise in nine-month profits.
A strong performance in Latin America helped to lift net income by 0.3% to 5.6bn euros ($8.4bn; £5.1bn).
In Spain, which accounts for a third of its revenues, Telefonica says customer numbers are up despite the recession.
Telefonica Europe chief executive Matthew Key told the BBC that both the consumer and commercial market are showing signs of recovery there.
In the UK, the firm has lost its rights to exclusively sell the iPhone. Mr Key said they would still sell the phone, but also concentrate on other new products such as the Palm Pre.
He added that Telefonica was keen to expand the O2 brand in Germany where he said the brand is only third or fourth in the market.
In Latin America, Telefonica has 170 million customers and it expects the market to continue growing strongly.
A strong performance in Latin America helped to lift net income by 0.3% to 5.6bn euros ($8.4bn; £5.1bn).
In Spain, which accounts for a third of its revenues, Telefonica says customer numbers are up despite the recession.
Telefonica Europe chief executive Matthew Key told the BBC that both the consumer and commercial market are showing signs of recovery there.
In the UK, the firm has lost its rights to exclusively sell the iPhone. Mr Key said they would still sell the phone, but also concentrate on other new products such as the Palm Pre.
He added that Telefonica was keen to expand the O2 brand in Germany where he said the brand is only third or fourth in the market.
In Latin America, Telefonica has 170 million customers and it expects the market to continue growing strongly.
Surprise rise in Australian jobs
Australia's economy created more jobs than expected in October, with 24,500 more people finding employment.
It is the second monthly gain in a row and has led analysts to speculate that interest rates will be increased in December to 3.75% from 3.5%.
In October, Australia became the first G20 country to raise rates since the global recession began, and it raised rates again earlier this month.
The news sent the Australian dollar to a 15-month high.
One Australian dollar was worth 93.33 US cents.
The unemployment rate saw a slight increase to 5.8%, but overall it has remained fairly steady since March.
"These are very strong numbers," said Felicity Emmett, senior economist at RBS.
"Employment is up over 60,000 in just two months and the jobless rate might peak below 6%... that's amazing," she said.
It is the second monthly gain in a row and has led analysts to speculate that interest rates will be increased in December to 3.75% from 3.5%.
In October, Australia became the first G20 country to raise rates since the global recession began, and it raised rates again earlier this month.
The news sent the Australian dollar to a 15-month high.
One Australian dollar was worth 93.33 US cents.
The unemployment rate saw a slight increase to 5.8%, but overall it has remained fairly steady since March.
"These are very strong numbers," said Felicity Emmett, senior economist at RBS.
"Employment is up over 60,000 in just two months and the jobless rate might peak below 6%... that's amazing," she said.
Oil rise 'could derail recovery'
The International Energy Agency (IEA) has warned that the recent rise in the price of oil "risks derailing the recovery" if it continues.
The IEA says that oil demand itself will also rebound much more slowly if price rises continue in 2010.
The oil price has risen more than 70% this year and is trading at about $77 a barrel, after falling on Thursday.
The IEA also warned that signs of renewed economic growth around the world remained "tentative".
The price of oil fell $2.43 to $76.85 a barrel on Thursday after a bigger than expected rise in weekly US oil supplies.
'Risk'
In its monthly report, the agency said China was driving demand and revised upwards its forecasts. In 2010, it predicts a 1.6% increase in demand to 86.2 million barrels a day.
The IEA said that in the US, "the 'real' economy, as opposed to the financial one is struggling to recover" and added that if the government withdrew its stimulus spending measures, the economy could "choke again... and cast further gloom on an already depressed job market".
Graph of oil prices to date in 2009
It added that economies in developed countries were still fragile, and that demand for oil in those nations was dropping away when prices hit $80 a barrel.
"If prices keep rebounding, there's a risk to the global economy as a whole, even to some of those economies in the Far East and even the Middle East," said David Fyfe, the head of the IEA's oil industry division.
However, the IEA also said global oil demand would grow in the fourth quarter of this year, the first year-on-year increase in fuel use since the second quarter of 2008.
And it raised global oil demand forecasts for 2009 by 210,000 barrels to 84.8 million barrels a day.
Meanwhile, the IEA said that oil producing cartel OPEC pumped more oil in October than in September.
The IEA says that oil demand itself will also rebound much more slowly if price rises continue in 2010.
The oil price has risen more than 70% this year and is trading at about $77 a barrel, after falling on Thursday.
The IEA also warned that signs of renewed economic growth around the world remained "tentative".
The price of oil fell $2.43 to $76.85 a barrel on Thursday after a bigger than expected rise in weekly US oil supplies.
'Risk'
In its monthly report, the agency said China was driving demand and revised upwards its forecasts. In 2010, it predicts a 1.6% increase in demand to 86.2 million barrels a day.
The IEA said that in the US, "the 'real' economy, as opposed to the financial one is struggling to recover" and added that if the government withdrew its stimulus spending measures, the economy could "choke again... and cast further gloom on an already depressed job market".
Graph of oil prices to date in 2009
It added that economies in developed countries were still fragile, and that demand for oil in those nations was dropping away when prices hit $80 a barrel.
"If prices keep rebounding, there's a risk to the global economy as a whole, even to some of those economies in the Far East and even the Middle East," said David Fyfe, the head of the IEA's oil industry division.
However, the IEA also said global oil demand would grow in the fourth quarter of this year, the first year-on-year increase in fuel use since the second quarter of 2008.
And it raised global oil demand forecasts for 2009 by 210,000 barrels to 84.8 million barrels a day.
Meanwhile, the IEA said that oil producing cartel OPEC pumped more oil in October than in September.
Porsche confirms big annual loss
German sports carmaker Porsche has confirmed it made a big full-year loss, largely due to its unsuccessful attempt to take over Volkswagen.
Porsche abandoned its long-running attempt to buy VW, Europe's largest carmaker, this summer, despite building a 51% stake in the company.
Instead, Porsche is set to become the 10th VW brand under a deal due to be completed by the end of 2011.
Porsche released a profit warning in July saying it had made a big loss.
The company reported a pre-tax loss of 4.4bn euros ($6.5bn; £3.9bn) for the year to the end of July, against an 8.6bn euros profit the previous year.
It did not release a net profit figure.
Taking out the impact of the VW takeover attempt, Porsche said it remained the "most profitable automobile manufacturer in the world".
Porsche had to build up major debts to get a 51% stake in VW, only to fall short of the required 75% when it could not raise more funds due to the impact of both the global credit crunch and the slump in global car sales.
Porsche abandoned its long-running attempt to buy VW, Europe's largest carmaker, this summer, despite building a 51% stake in the company.
Instead, Porsche is set to become the 10th VW brand under a deal due to be completed by the end of 2011.
Porsche released a profit warning in July saying it had made a big loss.
The company reported a pre-tax loss of 4.4bn euros ($6.5bn; £3.9bn) for the year to the end of July, against an 8.6bn euros profit the previous year.
It did not release a net profit figure.
Taking out the impact of the VW takeover attempt, Porsche said it remained the "most profitable automobile manufacturer in the world".
Porsche had to build up major debts to get a 51% stake in VW, only to fall short of the required 75% when it could not raise more funds due to the impact of both the global credit crunch and the slump in global car sales.
Russian economy growing strongly
Russia's economy grew by 13.9% between July and September compared with the previous quarter, the country's federal statistics agency has said.
The strong growth provided evidence of the country's recovery from a severe economic downturn.
The Russian economy, which is heavily reliant on oil exports, was one of the worst hit by the global downturn.
The rebound in the oil price since the start of this year has helped the economy to recover.
Compared with the same three months a year ago, however, the Russian economy shrank by 8.9%.
Fragile recovery
Earlier on Thursday, Russian President Dmitry Medvedev said his government had succeeded in stabilising the economy.
"But the revival in the markets remains weak and unstable. And the most dangerous thing now is to calm down. We have to continue realising the anti-crisis plan and be ready to implement new measures," he cautioned.
Analysts also argued that the recovery was fragile and heavily dependent on the oil price.
"The main driver of the recovery was the increase in oil and metal prices and the trickle down effect on production in those supporting industries," said Chris Weafer at Uralsib.
"The recovery is very dependent on the global economy rather than domestic factors. If the rest of the world [contracts], then Russia's economic revival would stall and possible reverse."
The strong growth provided evidence of the country's recovery from a severe economic downturn.
The Russian economy, which is heavily reliant on oil exports, was one of the worst hit by the global downturn.
The rebound in the oil price since the start of this year has helped the economy to recover.
Compared with the same three months a year ago, however, the Russian economy shrank by 8.9%.
Fragile recovery
Earlier on Thursday, Russian President Dmitry Medvedev said his government had succeeded in stabilising the economy.
"But the revival in the markets remains weak and unstable. And the most dangerous thing now is to calm down. We have to continue realising the anti-crisis plan and be ready to implement new measures," he cautioned.
Analysts also argued that the recovery was fragile and heavily dependent on the oil price.
"The main driver of the recovery was the increase in oil and metal prices and the trickle down effect on production in those supporting industries," said Chris Weafer at Uralsib.
"The recovery is very dependent on the global economy rather than domestic factors. If the rest of the world [contracts], then Russia's economic revival would stall and possible reverse."
Intel and AMD settle legal rows
US chip maker Intel has agreed to pay rival AMD $1.25bn as part of a deal to settle all outstanding legal disputes between the two companies.
The two firms said the settlement covered all anti-trust litigation and patent disputes.
"While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes," the two firms said.
AMD's shares closed up 21% following the announcement.
'Step closer'
"While it pains me to write a cheque at any time, in this case I think it was a practical settlement," said Intel's chief executive Paul Otellini.
"It was a good compromise between the two companies, and in many ways it was a small multiple of the potential damages that could be awarded in a jury trial."
Under the terms of the deal, the two firms have agreed a five-year cross licensing agreement, with each agreeing to give up claims of breaching previous agreements.
AMD's chief executive, Dirk Meyer, said the deal created a more level playing field and the company was now "one big step closer to achieving our bold vision".
Competition regulators in Asia, Europe and the US have all taken action against Intel because of complaints by AMD.
Europe's competition spokesman, Jonathan Todd, said he had taken note of the settlement, but that it did not change Intel's duty to comply with European competition law.
Customers 'bullied'
Intel makes 80% of the microchips that power personal computers.
One of the cases filed in Delaware in the US accused Intel of using its market dominance to get customers to buy from them instead of AMD.
Douglas McIntyre, analyst at 24/7 Wall street, said AMD's case was pretty strong in alleging that Intel "bullied customers using its huge market share". He added that AMD should have got a better price for shareholders.
As a result of the settlement, Intel updated its fourth-quarter financial forecasts. It now expects spending to be about $4.2bn - up from $2.9bn.
The two firms said the settlement covered all anti-trust litigation and patent disputes.
"While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes," the two firms said.
AMD's shares closed up 21% following the announcement.
'Step closer'
"While it pains me to write a cheque at any time, in this case I think it was a practical settlement," said Intel's chief executive Paul Otellini.
"It was a good compromise between the two companies, and in many ways it was a small multiple of the potential damages that could be awarded in a jury trial."
Under the terms of the deal, the two firms have agreed a five-year cross licensing agreement, with each agreeing to give up claims of breaching previous agreements.
AMD's chief executive, Dirk Meyer, said the deal created a more level playing field and the company was now "one big step closer to achieving our bold vision".
Competition regulators in Asia, Europe and the US have all taken action against Intel because of complaints by AMD.
Europe's competition spokesman, Jonathan Todd, said he had taken note of the settlement, but that it did not change Intel's duty to comply with European competition law.
Customers 'bullied'
Intel makes 80% of the microchips that power personal computers.
One of the cases filed in Delaware in the US accused Intel of using its market dominance to get customers to buy from them instead of AMD.
Douglas McIntyre, analyst at 24/7 Wall street, said AMD's case was pretty strong in alleging that Intel "bullied customers using its huge market share". He added that AMD should have got a better price for shareholders.
As a result of the settlement, Intel updated its fourth-quarter financial forecasts. It now expects spending to be about $4.2bn - up from $2.9bn.
TV networks boost Disney profits
Walt Disney has surprised analysts by posting better-than-expected profits for the three months to 3 October.
Net income came in at $895m (£540m) for the quarter, an increase of 18% on the same period a year earlier. Revenue rose by 4% to $9.7bn.
Strong performance at the entertainment giant's media division, which includes the ESPN and ABC television networks, helped to drive overall sales.
Earlier on Thursday, Disney announced two top executives were switching jobs.
At the end of this year, chief finance officer Tom Staggs will swap roles with Jay Rasulo, chairman of the group's parks and resorts division.
"Although last year was a difficult one, I am pleased with the way our businesses have responded to the downturn," said Disney chief Robert Iger.
Media networks saw a 14% rise in revenue, while consumer product sales fell by 12%.
Revenue at the group's resort parks also dropped, as visitors spent less during the downturn.
Net income came in at $895m (£540m) for the quarter, an increase of 18% on the same period a year earlier. Revenue rose by 4% to $9.7bn.
Strong performance at the entertainment giant's media division, which includes the ESPN and ABC television networks, helped to drive overall sales.
Earlier on Thursday, Disney announced two top executives were switching jobs.
At the end of this year, chief finance officer Tom Staggs will swap roles with Jay Rasulo, chairman of the group's parks and resorts division.
"Although last year was a difficult one, I am pleased with the way our businesses have responded to the downturn," said Disney chief Robert Iger.
Media networks saw a 14% rise in revenue, while consumer product sales fell by 12%.
Revenue at the group's resort parks also dropped, as visitors spent less during the downturn.
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