Morning business round-up: Japanese growth

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

Japan's economy contracted less than expected in the last quarter, showing stronger signs of recovery from the deadly tsunami.

The economy shrank by an annualised rate of 1.3% in the three months to the end of June, the Cabinet Office said. It shrank 0.3% from the previous quarter.

Most forecasters were expecting drops of about 2.6% and 0.9%.

Those figures helped Asian markets close higher and the rises were reflected in Europe.

European shares consolidated gains made on Friday after debt fears in the eurozone and the US caused turmoil on global markets last week.

Paris's Cac 40 and Frankfurt's Dax indexes were up 1% in early trading, while London's FTSE 100 climbed 0.5%.

Cathay Pacific has said it may delay a global marketing campaign, after photographs of crew members allegedly engaging in a sexual act were published.

The airline was due to launch the campaign in September.

Its tagline was "meet the team who go the extra mile to make you feel special".

Media caption,

Biz Heads

World markets have entered a "new danger zone", the president of the World Bank has warned.

Robert Zoellick said investors had lost confidence in the economic leadership of several key countries.

Speaking at the Asia Society's annual dinner in Sydney, he also said that the global economy was going through a "multi-speed recovery".

Business confidence among UK firms is falling, two surveys have suggested.

The Business Trends optimism index from accountants BDO fell to 95.1 in July from 95.6 in June.

The Chartered Institute of Personnel and Development (CIPD) said that more employers planned to cut jobs than increase staffing levels in the third quarter.

Today's Business Daily programme from the BBC World Service looks at whether financial markets have lost faith in politicians' ability to handle their economies.

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