Morning business round-up: German inflation gains

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

Inflation in Germany, Europe's largest economy, rose by 2.3% in 2011 because of rising energy prices, according to official figures.

The inflation rate compares with 1.1% in 2010, and is the highest annual figure since 2008, when inflation was 2.6%.

The state-controlled bank will split the cuts between its UK and international offices.

In UK corporate news, Tesco stock dropped 10% after the retailer said it was "disappointed" by its seasonal trading in the UK.

The firm mostly sells Waitrose goods.

Home Retail Group, which owns retailers Argos and Homebase, said it will significantly cut this year's dividend.

Meanwhile, Malaysia's budget airline Air Asia X said it will end flights to Europe and India because of high fuel prices and weak demand.

Air Asia will end its flights to India in February and stop flying to London and Paris after the end of March.

media captionBiz Heads

In economic data, China's rate of inflation was little changed in December, despite government efforts to rein in prices.

And India's industrial production rebounded in November, easing concerns that monetary tightening was hurting growth.

Factory output grew 5.9% in November from a year earlier, a sharp turnaround from a 4.7% decline in October.

The latest edition of Business Daily asks: Do high salaries make people happy? Lesley Curwen examines executive pay after the boss of Apple was awarded a pay packet of $378m for last year.

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