Japan names Yukio Edano trade minister

Japanese Prime Minister Yoshihiko Noda has appointed Yukio Edano as trade minister, reports say, after the abrupt resignation of the previous incumbent.

Mr Edano gained prominence as the chief government spokesman after the earthquake and tsunami in March.

Yoshio Hachiro resigned as trade minister after calling the area around the tsunami-damaged Fukushima nuclear plant a "town of death", or ghost town.

The trade ministry is also responsible for the energy portfolio.

Mr Hachiro is reported to have rubbed his jacket against a reporter, saying "I will give you radiation," after visiting the plant - which is still leaking radioactive material - on Thursday.

Mr Hachiro's comments were widely seen as insensitive and prompted calls by opposition parties for him to resign.

Prime Minister Noda later said they were inappropriate and Mr Hachiro should apologise.

About 80,000 people have been evacuated from a 20km (13 mile) radius around the plant. Officials have warned that some areas may be uninhabitable for years because of radiation.

"Sad to say, the centres of cities, towns and villages around it are a town of death without a soul in sight," Mr Hachiro said at a news conference on Thursday.

He later apologised for the remarks and said he had been trying to convey the seriousness of the situation.

His departure is viewed as a major embarrassment for Mr Noda, who only took office at the end of August and was due to tackle the recovery effort from the disaster, correspondents say.

Mr Noda is Japan's sixth prime minister in five years.

His predecessor, Naoto Kan, was forced out of office because the opposition and many in his own party believed he had failed to show sufficient leadership in the crisis.

Mr Edano was the chief government spokesman under Mr Kan, responsible for informing the public about developments during the crisis.

In the days immediately after the disaster, he gave press conferences several times a day and became the public face of the government's response.

It is almost exactly six months since the devastating tsunami and earthquake hit Tokyo and north-eastern Japan, leaving some 20,000 people dead or missing, and triggering the nuclear crisis at Fukushima.

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Frankfurt motor show: Carmakers fear sales might weaken

Carmakers are offering smaller, more frugal cars than those they used to sell before the downturn

The world's leading carmakers will be showing off their latest models at the Frankfurt motor show this week.

The biennial show comes after a year of strong car sales that have helped revive the motor industry.

But the future seems less certain, not least since growth in car sales in China appears to be slowing.

Economic weakness and record debt levels in Europe and the US are also causing concerns.

"Even the German carmakers, that have enjoyed unprecedented financial and sales success so far in 2011, must be concerned about the storm clouds gathering over the global economy as a result of high public debt levels in the US and Eurozone," observed IHS Automotive analysts Tim Urquhart and Ian Fletcher in a note.

China's car market expanded some 30% during the 2010/11 fiscal year. That growth rate is now expected to slow to just 10-12% during this fiscal year.

The US and European markets are also expected to be soft in the months ahead, though as yet there is no talk of another recession.

"We don't want to bring about a crisis by talking about it, because we don't see one at the moment," said Friedrich Eichiner, BMW's chief financial officer.

Barclays Capital motoring analyst Michael Tyndall agreed.

"We're looking at slower growth and in Europe we're looking at some retrenchment in 2012, but nothing like the collapse we saw in 2008," he said
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Smaller cars
At the time, many carmakers cut back production and laid off workers, but most of them did all they could to maintain investment in future models
Consequently, the current models that will be unveiled at this week's show are both smaller and more fuel efficient than the cars they were making before the downturn.

Harmful emission levels have also been cut, with most carmakers now offering electric or petrol-electric hybrid alternatives to cars powered by conventional petrol engines.

Many carmakers are unveiling models designed for large cities. Small sports utility vehicles are also popular at the moment.

"We expect new models and premieres at the Frankfurt motor show to play a key role in giving a boost to new orders," said Juergen Karpinski, owner of Autschmitt Frankfurt.

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Global stock markets down on debt fears as euro falls

US shares staged a late recovery on Monday to post only their second positive close of the month.


Earlier, European and Asian markets fell on fears that Greece may default.

A series of news reports that Germany may be preparing for an "orderly default" by Greece also sent the euro lower.

German officials sought to shore up confidence on Monday, saying the stability of Greece and the euro was "the common goal".

Bank shares were hardest hit, with France's BNP Paribas closing down 12%.

Other French banks also fell amid rumours of a possible downgrade of their debt and concerns about their exposure to Greece and Italy.

London's FTSE 100 closed down 1.6%, France's Cac 40 dropped 4.0% and Germany's Dax lost 2.3%. The declines followed heavy falls in Asia, where Hong Kong ended 4% down.

But having spent most of the day in negative territory, the Dow Jones Industrial Average closed up 69.0 points, or 0.63%, at 11,061.1.

The euro fell to a 10-year low against the yen, and investors poured money into German bonds in a flight to safety.

The latest crisis of confidence in the markets came amid worries that Germany had lost patience with Greece - and other heavy indebted eurozone nations - and might not help future bailouts.

Germany's Economy Minister Philipp Roesler said in a newspaper article at the weekend that an "orderly default" by Greece could no longer be ruled out.

On Monday, adding to the tensions, the general secretary of German Chancellor Angela Merkel's junior coalition partner suggested that Greece could leave the eurozone.

"In the final analysis, one also cannot rule out that Greece either must, or would want to, leave the eurozone," Christian Lindner, the general secretary of the Free Democrats (FDP), said in a television interview.

This followed Friday's surprise resignation of the European Central Bank's (ECB) chief economist, Juergen Stark.

His departure was seen as a sign of divisions within the ECB and among eurozone leaders over what to do about Europe's debt crisis.

On Monday, a spokesman for Mr Roesler, who is also vice-chancellor, tried to dampen the impact of his newspaper comments.

"Our common goal is the stability of the euro and we want Greece to stay in the euro," the spokesman said.

At the same news conference, Mrs Merkel's spokesman said that Germany "assumes that Greece is doing everything it can" to implement strict austerity measures to battle its deficit woes.

"Our goal is quite clear: we want to stabilise the eurozone as a whole," he said.

But stock markets remained deep in the red, especially French banks' shares, which are among the most exposed to Greek debt.

France's two other big banks, Societe Generale and Credit Agricole, closed down 11%. In Germany, Deutsche Bank fell 7.3% and Commerzbank 8.3%.

UK banks escaped relatively lightly, helped by the release of the Vickers report on breaking up UK banks and a belief among some investors that the recommendations may be watered down.

HSBC closed down 2.4%, Lloyds dropped 1.6%, RBS fell 3.4%, and Barclays was 1.6% lower.

Investors flee

The euro fell to 104.09 yen, its lowest since June 2001. The euro was also down against the dollar.

Germany's cost of borrowing for 10-year bonds fell to historic lows on Monday, as investment funds fled riskier assets.

The yield - or interest rate - indicated by the price of German 10-year bonds fell to 1.709% from 1.770%.

Satoshi Tate, a currency dealer at Mizuho Corporate Bank, said: "We are watching Greece and only Greece.

"Conditions are getting very serious and everyone is worried how the issue will unfold," he added.

Marc Ostwald, market strategist at Monument Securities, added: "With German officials seemingly in destructive overdrive, as per all the public talk of preparing for a Greek default and even a Greek euro exit, markets can hardly be blamed for the latest charge for the bunker and tin hats."

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Chinese imports at record high as trade surplus narrows

China has been trying to rebalance its export dependent economy to sustain growth

China's imports hit a record monthly high in August, indicating a strong domestic demand despite concerns of a global economic slowdown.

Imports surged by 30.2% from a year earlier to $155.6bn (£98bn), government data released over the weekend showed.

Exports rose by 24.5% resulting in a trade surplus of $17.8bn, down from $31.5bn in the previous month.

The data comes at a time when China has been trying to boost domestic demand in a bid to rebalance its economy.

"August's export and import data showed China's economic growth is driven by domestic demand, not external demand and its growth is still very strong," said Li-Gang Liu of ANZ.

Growing demand

China's economic expansion in recent years has seen the rise of a more affluent middle class, with higher disposable incomes.

Continue reading the main story
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I expect Chinese export growth to be below 10% in the fourth quarter”
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Shen Jianguang

Mizuho Securities Asia
"Growth of the Chinese middle class is well documented and it is something that will continue to drive growth," Kelvin Tay of UBS told the BBC.

Analysts said the recent appreciation in the Chinese currency had also played its part as the purchasing power of consumers had gone up.

The yuan has gained more than 5% against the US dollar in the last 12 months.

"If you had 100 yuan a year ago, you could buy X amount of things, today it is X-plus," he explained.

Global concerns

China's push to boost domestic demand has been driven not only by efforts to rebalance its economy but also by fears that demand from its key markets may dip in the wake of a global slowdown.

While its exports registered robust growth in August, analysts said that things are likely to get tougher.

"The European debt crisis and slowing US growth will be reflected in China's export data in the next few months," said Shen Jianguang of Mizuho Securities Asia.
"I expect Chinese export growth to be below 10% in the fourth quarter," he added.

However, some analysts argued that a slowdown in the global economy may fuel a jump in Chinese exports.

They said China's biggest strength in manufacturing has been its low prices and in times of a slowdown, consumers are looking for more affordable goods which could prompt a surge in demand.

"Not many countries can make it as cheap as the Chinese," said UBS' Mr Tay.

Increased lending
Along with a rise in imports and exports, bank lending in China also quickened in August.

Chinese banks lent out 548.5bn yuan ($86bn; £54bn) during the month, more than forecast, despite government efforts to curb credit growth in the country.

China's central bank has raised interest rates five times since October last year and also increased the bank's reserve ratio requirement nine times during the same period in a bid to quell prices.

Data out last week showed the rate of inflation in China eased to 6.2% in August from 6.5% in the previous month
Analysts said the latest numbers showed that not only were the government's efforts to control inflation working, they were not having the negative impact on growth that many people had worried about.

"All the talk of demand being dented due to credit tightening is far-fetched," Mr Tay said.

However, Mr Tay warned the combination of an increase in lending and a rise in domestic demand may see the central bank raise the cost of borrowing again in a bid to keep price growth in check.

"Based on the numbers that we are seeing, it will be premature to rule out a rate hike," Mr Tay told the BBC.


That has led to a growth in domestic demand, which has translated into higher import numbers.

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Rock veterans win copyright fight

Sir Cliff Richard was at the forefront of the campaign to extend copyright

Musicians are set to receive royalties from sales and airplay well into their old age under a new EU ruling.
On Monday, the EU Council voted to extend the copyright on sound recordings from 50 to 70 years.

The move follows a campaign by artists like Cliff Richard as well as lesser-known performers, who said they should continue to earn from their creations.

Critics argue that many musicians will see little benefit, with most income going to big stars and record labels.

The change applies to the copyright on studio recordings, which is often owned by record labels, rather than the right to the composition, which is owned by the songwriters.

Under the 50-year rule, the copyright on songs by The Beatles, the Rolling Stones and The Who would have expired in the next few years.

That would have meant that anyone could have used and sold those songs in any way, and the performers and record labels would have ceased to receive royalties.

Rolling Stone Mick Jagger told the BBC that the EU's decision was "obviously advantageous" to musicians.

"Obviously the record business is not what it was, so people don't earn as much as they used to," he said. "[The royalties] can extend their lives and the lives of their families who inherit their songs."

Abba star Bjorn Ulvaeus added that one benefit was that he would retain control over how his compositions were used in the future.

"Now I won't have to see Abba being used in a TV commercial," he said. "And the thousands of lesser-known musicians around Europe who are enriching our life and culture can get the fair reward in return for their work that they deserve."

Announcing the ruling, the council of the European Union said: "Performers generally start their careers young and the current term of protection of 50 years often does not protect their performances for their entire lifetime.


"Therefore, some performers face an income gap at the end of their lifetimes."

The new law also includes a number of provisions designed to ensure that musicians see a fair proportion of the extra income, including a fund for musicians who signed away their rights when a recording was made.

The fund will be financed by record labels, who put aside a percentage of the benefits they get from the prolonged copyright.

There is also a clause to allow performers to renegotiate contracts with record labels after 50 years.

And artists will be able to regain the rights to a recording if their label has kept it in a vault and not made it available to the public.

John Smith, general secretary of the Musicians' Union, said it was a "brilliant moment".
"We were having to deal with quite old people who were saying: 'My music's been used for something else - it's been sampled, it's been used in a pop song, it's been used in an advert.' And we couldn't do anything for them."

Geoff Taylor, head of the BPI, which represents record labels, added that the ruling would "ensure that UK record labels can continue to reinvest income from sales of early recordings in supporting new British talent".

The move comes five years after the government-backed Gowers Report into copyright rejected the arguments for an extension.



It said change would "negatively impact upon consumers and industry", noting that the average level of royalties paid to performers from sales was "very low".


It also cited research by the University of Cambridge, which suggested that the benefits to artists would be highly skewed in favour of "a relatively small number of performers of successful older works".

In May, another government-commissioned report by Professor Ian Hargreaves said the effect of an extension to copyright would be "economically detrimental".

Jim Killock, executive director of the campaigning organisation the Open Rights Group, said there was "never any evidence it was going to do any good".

He said: "It puts money into the pockets of big labels. It's unlikely to benefit smaller artists and it will mean that a lot of sound recordings that are out of print will stay out of print."

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Saab faces unions' bankruptcy action

Victor Muller could be losing his battle to save Saab

Two Swedish unions have applied for Saab to be declared bankrupt because the troubled carmaker has been unable to pay wages to its workers.

Last week, Saab's application for protection from its creditors to help it avoid bankruptcy was rejected by a Swedish court.

At the time, unions said they could demand that Saab be declared bankrupt.

Saab has been trying unsuccessfully to get new funding to ensure the business's survival.

It has been struggling with falling sales and was forced to suspend production in April. Workers are still awaiting their August salaries.

"A bankruptcy application is a way to make sure that our members are not left without the money they have the right to," said Unionen boss Cecilia Fahlberg.

"This is not a situation that any member of Unionen wishes to be in."

Other unions could follow Unionen and Lederna in calling for Saab to be made bankrupt.

Chinese investment

Swedish Automobile, formerly called Spyker, bought Saab from US giant General Motors in January 2010.

Before the summer, Swedish Automobile announced that two Chinese firms would buy minority stakes in the company.

However, these deals have not yet had regulatory approval in either Sweden or China.

They also need to be approved by the European Investment Bank (EIB).

Under the agreements, Zhejiang Youngman Lotus Automobile plans to pay 136m euros ($186m; £117m) for a 29.9% stake, while Pang Da Automobile will pay 109m euros for 24%.

Analysts have cast doubt on whether the Chinese government will approve the investments.

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13 September 2011 Last updated at 05:11 GMT Share this pageEmail Print Share this page 66ShareFacebookTwitter.Rugby World Cup to boost New Zealand economy by $1.2bn

Visiting teams and fans are expected to boost the local tourism industry

The Rugby World Cup will boost New Zealand's economy by as much as $1.2bn (£756m) in the long run, according to a report by MasterCard.

It said it expected rugby-related spending by overseas visitors to total $654m during the event.

New Zealand's economy will also benefit from increased business activity and tourism, the report said.

95,000 international fans are expected during the course of the tournament.

"In terms of economic impact, the most important component is international visitors as they contribute money to the economy that would not have otherwise been spent in New Zealand," the report said.

Sporting economy

While the heavy influx of fans is likely to provide a boost to the local tourism industry, the biggest effect will be on sports-related economic activities.

The report said such activity could increase to $11.7bn by the end of the decade.

However the report said for that happen New Zealand will have to capitalise on the hosting of the World Cup to attract more such events to the country.

It will also need to enhance its reputation as a destination for sports tourism and continue domestic involvement in sports related activities.

New Zealand has been picked as the host of the 2015 FIFA U-20 world cup and also as a stopover port for the Volvo Ocean race in 2012.

Brand New Zealand?

Along with its direct economic benefits, the Rugby World Cup is also likely to boost the value of New Zealand as a brand.

According to the report, when New Zealand hosted the America's Cup sailing in 2000, it generated almost $75.3m in brand value for the country.

"The size, scale and appeal of the Rugby World Cup could mean that this figure will be eclipsed," the report said.

MasterCard said it expects the event to generate a brand value of as much as $209m for the country.

"This creates a huge opportunity to present New Zealand as a destination."

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