Morning business round-up: Eurozone growth sluggish


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

The economy of the 17-nation eurozone grew by 0.2% between July and September compared with the second quarter, according to official data.

For the 27-nation European Union, GDP was also 0.2% higher in the third quarter.

Figures showed that the German economy grew by 0.5% in the quarter, while the French economy grew by 0.4%.

In a review, publicly released on Tuesday, the IMF said that banks were robust enough to withstand isolated shocks.

But not, it said, combined exposure to credit, property and currency risks.

The IMF has urged reforms, including allowing banks to rely more on market mechanisms such as interest rates.

Mario Monti, a former EU commissioner, has said he will "act with urgency".

But the PDL party of outgoing PM Silvio Berlusconi and the centre-left Democratic Party are seeking concessions in return for support.

Italy has to borrow at high rates of interest as lenders worry that the government may not repay its debts.

Mr Ermotti has been acting chief since September, when Oswald Gruebel stood down after the scandal emerged.

In September, London-based UBS trader Kweku Adoboli was arrested and charged with fraud and false accounting.

UBS also named former Bundesbank president Axel Weber as chairman, replacing Kaspar Villiger.

Media caption,
Biz Heads

The rate of Consumer Prices Index (CPI) inflation in the UK fell slightly to 5% during October, down from a rate of 5.2% the month before.

Falls in the price of food, air transport and fuel helped to push the inflation rate lower.

Despite the drop, the rate still remains well above the Bank of England's target of 2%.

Retail Prices Index (RPI) inflation - which includes mortgage interest payments - also fell to 5.4% from 5.6%.

The airline said it made a loss of 4.69bn rupees ($93m; £58m) during the period, compared with 2.31bn rupees last year.

The loss comes amid cashflow problems for the carrier that have seen it cancel hundreds of flights.

The airline said higher fuel costs hurt its earnings during the period.

The profits for the half-year to 30 September are 23% up on 2010, as the group reported a 16% rise in same-store retail sales.

The firm said it remained committed to a 15% increase in retail space - mostly in new markets, such as China.

About 19% of Burberry's retail and wholesale revenue now comes from emerging markets.

For another angle on the business news, the latest podcast of Business Daily looks at the flaws in Japan's corporate culture - and talks to the former president of scandal-ridden Olympus about how a "desire for harmony" can backfire.

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