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Morning business round-up: Nokia and Apple settle row

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

Nokia and Apple have agreed a technology licensing agreement that ends the long-running legal dispute between the two firms.

Nokia said Apple had agreed a one-off payment, the value of which was not disclosed, and ongoing royalties to use its technologies. Apple said the deal covered both companies' patents.

Nokia sued Apple for patent infringements in 2009 and extended the action in December last year. Apple had countersued, accusing Nokia of infringing its patents.

As expected, the International Monetary Fund has shortlisted two candidates to take over from Dominique Strauss-Kahn as as managing director.

French Finance Minister Christine Lagarde and Governor of the Bank of Mexico Agustin Carstens will fight it out for the top job.

Mr Strauss-Kahn resigned after he was arrested in the US last month on charges of an alleged sexual assault. He has denied the charges.

Moving to Asia, China has reported its highest level of inflation in almost three years, despite the government's efforts to rein in rising prices.

Consumer prices rose by 5.5% in May, compared with the same month last year, according to the National Bureau of Statistics. Food prices continued to be the biggest factor as they surged by 11.7%.

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Analysts warned that prices are likely to rise even further.

India also reported a rise in its rate of inflation, raising expectations of a further rise in interest rates.

The wholesale price index rose by an annual rate of 9.06% in May, up from 8.66% in April.

The rise was driven partly by an increase in the price of manufactured goods, with the rate of food and fuel inflation both falling. The Indian central bank will announce its next decision on interest rates on Thursday.

Back to company news, Honda has become the second major Japanese carmaker in a week to warn of dramatically lower profits due to reduced production resulting from March's massive earthquake.

It forecast net profits of 195bn yen ($2.4bn) for the year to the end of March 2012, down 64% on the 534bn yen the company made last year.

Revenue would be 8.3 trillion yen, down from 8.9tn yen, Honda said.

Last week, rival Toyota said profits would fall by a third this year.

Glencore, the world's largest commodities trader, has reported a sharp rise in profits and revenue thanks to strong demand for grain and oil.

Net profit for the first three months of the year was $1.3bn, up 47% on the $886m the company made a year earlier. Revenue was up 39% to $44.2bn.

These are the first results Glencore has published since becoming a publicly-listed company last month.

In today's Business Daily podcast, the programme looks at whether Asia's model of economic growth is broken.

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