Business

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:

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Last Updated at 17:37 GMT

Market index Current value Trend Variation % variation
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FTSE 100 7411.47 Down -27.03 -0.36%
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The OECD has warned that the eurozone and UK could be entering a recession, and has cut its global growth forecast.

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.

The International Monetary Fund (IMF) has denied it is in talks with Italy about a new bailout loan.

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.

China Investment Corporation (CIC), is keen to invest in infrastructure development in the UK and other developed countries.

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.

Qantas has said the industrial dispute with union members and rising fuel costs will dent its earnings for first half of the current financial year.

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.

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German industrial group Daimler is preparing to disband its ultra-luxurious Maybach car marque.

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.

Thailand's factory output fell by 35.8% in October after the country's worst flooding for 50 years.

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.

Global food giant Nestle says it has taken a major step to end child labour on cocoa farms supplying its factories.

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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