Business

Morning business round-up: Toyota in mass recall

  • 10 October 2012
  • From the section Business

What made the business news in Asia and Europe this morning? Here's our daily business round-up:

Toyota is voluntarily recalling more than seven million vehicles worldwide, including some Yaris, Corolla and Camry models, over faulty window switches.

It affects 1.39 million cars in Europe, 2.47 million in the US and 1.4 million in China.

Toyota is also recalling 459,000 vehicles in Japan, 650,000 in Australia and Asia, as well as hundreds of thousands from across the Middle East, and from within Canada and its other, smaller markets around the world.

The carmaker said there had been no reports of accidents, injuries or deaths as a result of the window problem.

A regulatory deadline is looming for UK defence firm BAE and Airbus-owner EADS, who must decide whether to proceed with their planned merger by 16:00 GMT.

The aerospace and defence deal looks likely to fall through, according to BBC business editor Robert Peston.

The UK, French and German governments have been holding talks to clear political objections over the merger.

The UK wants its counterparts to agree to limit their influence in the merged firm in order to maintain BAE's strong working relations with the US Pentagon.

Risks to global financial stability have increased in the past six months despite efforts by policymakers to make the financial system safer, according to the International Monetary Fund.

It said little progress had been made in making the system more transparent and less complex, and that confidence in it had become "very fragile".

The eurozone debt crisis remained the main cause of concern, the fund said.

On Monday, the IMF downgraded its forecast for global growth, predicting growth in 2013 to be 3.6%, down from 3.9% in its previous forecast in July. This included sharp downgrades for the UK, Brazil and India.

Canada has invoked a "national security exception" for hiring firms to build a secure communications network, allowing it to block those seen as a security risk.

Canada did not name any firms, but there is speculation the move may be targeted at China's Huawei.

Questions have been raised about Huawei's ties to the Chinese military, something the firm denies.

On Monday, a US panel said that Huawei posed a security threat to the country.

The governor of China's central bank has pulled out of the International Monetary Fund (IMF) and World Bank meetings being held in Japan.

The move comes amid an ongoing territorial dispute between the two countries.

Relations between the two soured after Japan said it had purchased disputed islands in the East China Sea claimed by both Tokyo and Beijing.

Yum Brands, which runs the KFC, Pizza Hut and Taco Bell restaurant chains, has seen third-quarter profits soar 23%, boosted by strong sales in China.

The firm has reported a net profit of $471m (£294m) in the three months to 8 September.

China contributed more than half of Yum's $3.6bn revenue during the period.

The latest Business Daily podcast from the BBC World Service hears from the Russian energy minister about how it is reshaping the energy market.

Around the BBC