Morning business round-up: Obama warns over stalemate

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

US President Barack Obama has said it would be "inexcusable" for lawmakers to fail to reach a budget that would fund the government to September. Mr Obama spoke after he and Congressional leaders were unable to reach a budget deal on Tuesday.

Meanwhile, policy makers at the US Federal Reserve differed last month over the course future monetary policy should take. Minutes of the Fed's March meeting revealed that some members thought the central bank should move to tighter conditions before the year end.

Debt-hit Portugal has successfully raised about 1bn euros ($1.4bn) after the government was forced to tap the financial markets to raise money to re-pay loans. However, analysts said the rates the country is paying were unsustainable for an economy that is seeing virtually no growth.

The head of the International Monetary Fund (IMF) has said Spain has no need for an international financial rescue. In an interview with the Spanish newspaper El Pais, Dominique Strauss-Kahn said: "I don't believe that the Spanish government needs any type of financial aid". The comments are being seen as a vote of confidence that austerity measures imposed by Madrid could be working.

Toyota's credit rating has been put under review by the ratings agency Moody's, which said it may downgrade the Japanese car giant. Moody's said the company's profits are likely to be hit by the impact of the 11 March earthquake and tsunami.

Media caption,

Biz Heads

Asia's developing economies are expected to grow by just under 8% in 2011, according to the Asian Development Bank (ADB). In its annual Asian Development Outlook, it predicted that the region would expand solidly over the next two years.

In the UK, Honda has said it is to halve production at its factory in Swindon from Monday because of a shortage of parts coming from Japan. However, the company added that it was confident the 22,500 fewer cars that would be built as a result could be made up by the year end.

German bank Commerzbank has said it will repay 14.3bn euros ($20.4bn) in state aid by June. However, as part of the complex restructuring, the German government will retain its 25% stake in the bank.

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