Morning business round-up: OECD in recession warning


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

The OECD predicted the eurozone economy would shrink in the fourth quarter by 1%, and by 0.4% in the first quarter of next year.

For the UK, the OECD's predictions are a 0.02% contraction this quarter, and a further 0.14% next.

It follows reports in Italy's La Stampa newspaper over the weekend that the IMF was preparing a 600bn euro ($794bn; £515bn) loan.

Despite the news, European markets opened up strongly on hopes that Italy may be thrown a lifeline.

However, ratings agency Moody's has warned that the crisis threatens the credit rating of all eurozone members.

Lou Jiwei, the head of CIC, wrote in the Financial Times that the fund was looking to participate in public-private-partnerships in the UK.

The British government has been seeking to upgrade infrastructure in a bid to boost growth.

The carrier said it expects a profit of between 140m Australian dollars ($137m; £89m) to A$190m during the period, down from A$417m last year.

The dispute led the grounding of the entire fleet of Qantas last month, affecting 70,000 passengers worldwide.

Media caption,
Biz Heads

The decision follows almost a decade of trying to make Maybach a profitable rival to Rolls Royce and Bentley.

Maybach will be replaced by new and more luxurious models from the Mercedes brand, which is also made by Daimler.

The floods hit seven of the country's largest industrial estates, which are a hub for component makers for the car and electronics industries.

Output of hard disk drives fell 52.4% in October, while production of electronics fell 45.5%.

Car production, which is based in eastern Thailand away from the floods, fell 61.3% due to parts shortages.

The firm, one of the world's largest chocolate producers, says it is going to work with the Fair Labor Association (FLA) on tackling the problem.

The FLA is set to examine Nestle's cocoa supply chains in Ivory Coast in January, the firm said in a statement.

This week's editions of Business Daily programmes report from the BRIC countries (Brazil, Russia, India and China). In the first edition, Nidhi Dutt reports from Mumbai on how the Indian nation is transforming itself into a powerful 21st century economy.

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