Business

Morning business round-up: China bank lending falls

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

China's banks extended fewer new loans than expected in May as the country kept up its efforts to rein in rising prices.

Chinese banks lent 551.6bn yuan ($85bn; £52bn) in new loans, compared with 739.6bn yuan in April, according to the People's Bank of China.

One company which has benefited from a loan, though, is mining firm Kazakhmys.

It announced that it had reached an agreement with the China Development Bank to borrow $1.5bn (£920m) to help develop a large copper project in eastern Kazakhstan.

Japan's recovery from the earthquake and tsunami continues to be hampered by the disruption to power supplies.

Core machinery orders in Japan fell by 3.3% in April compared with the previous month, according to the latest data from the cabinet office.

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Volcanic ash from Chile has disrupted air travel in Australia and New Zealand for a second day.

Airlines including Qantas, Jetstar and Tiger suspended their flights to and from various parts of the region.

In other aviation news, Thai Airways has announced plans to acquire 37 new aircraft over the next six years at a cost of 118.6bn baht ($3.9bn; £2.4bn).

The airline will buy six Boeing and nine Airbus planes, at a cost of almost 50bn baht, and lease a further 22.

And in Europe, Electrolux, the world's second-biggest maker of home appliances, is to put up prices in Europe because of a rise in costs.

The firm said the costs of imported raw materials and transport had both risen sharply during the first few months of 2011.

Finally, Saab owner Spyker cars says it has reached agreement with two Chinese firms to invest a total of 245m euros (£214m, $350m) in the firm.

The car maker has been forced to stop production in Sweden because of financial difficulties.

And in today's Business Daily podcast, the programme looks at India's decision to build more power plants to meet its energy needs.

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