Business

Morning business round-up: China's economy slows

  • 18 October 2012
  • From the section Business

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

China's economy has slowed for a seventh quarter as problems in Europe and the US hurt demand for its goods.

The annual rate of growth was 7.4% in the third quarter, down from 7.6% in the previous three months.

However, there were signs that the world's second-biggest economy was now stabilising and rebounding.

China's industrial production rose by a more-than-expected 9.2% in September from a year earlier. That was up from 8.9% growth in August.

Retail sales, meanwhile, during the same month were 14.2% higher than a year earlier, signalling that domestic consumption was growing.

Japan's Prime Minister Yoshihiko Noda has ordered his cabinet to draw up fresh stimulus measures in a bid to spur economic growth.

Japan's growth has been hurt by falling demand for its exports amid a slowdown in key markets such as the US, eurozone and China.

At the same time, domestic consumption in Japan continues to remains subdued.

Mr Noda ordered the stimulus package to be compiled by next month, but did not give details on how big it would be.

BP is expected to receive an offer from Russian oil giant Rosneft worth $28bn (£17bn) for its stake in the Russian TNK-BP joint venture.

BP said in June that it was selling its half stake in TNK-BP following problems in relations with the Russian billionaires who own the rest of it.

The deal to buy BP's stake would make Rosneft the world's largest publicly traded oil company.

EU states are sharply divided over plans for banking union as their leaders gather in Brussels for a two-day summit.

The aim is to agree first on joint banking supervision, with the European Central Bank playing the lead role.

But the UK - the EU's main financial centre - wants safeguards to protect the powers of the Bank of England.

It and the other nine non-euro states are also concerned about voting rights in the proposed banking union.

Demand for winter clothing and school uniforms helped to increase UK retail sales in September, official figures show.

Sales volumes were up 0.6% last month, according to the Office for National Statistics (ONS), compared with a 0.1% fall in August.

The sales decrease in August had been blamed on people putting off shopping to watch the Olympics,

Compared with September 2011, the year-on-year figures show sales up 2.5%.

The latest Business Daily podcast from the BBC World Service considers the latest general strike in Greece, the country's 20th since the eurozone crisis got serious in 2010, and asks what do the strikers hope to achieve by bringing the country to a standstill?

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