Morning business round-up: Markets rise on US Fed move

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

European share markets have jumped after the US Federal Reserve moved to kick-start recovery by pumping more money into the economy.

In the UK, Germany and France stock markets opened higher, following rises in the US and Asia.

Banks led the markets higher, with RBS up 3.8% and Barclays up 4.5%. Other European banks made similar advances.

It followed the Fed's decision on Thursday to inject $40bn (£25bn) a month into the US economy.

The plan to buy up mortgage debt will continue until further notice, the Fed said. The central bank also kept interest rates at below 0.25%.

The aim is to reduce long-term borrowing costs for firms and households. On Wall Street on Thursday, the Dow Jones index closed up 1.55%. On Friday, Hong Kong's Hang Seng added 2.7% and Japan's Nikkei 225 rose 1.8%.

Media caption,
Biz Heads

In South Africa, workers at a Marikana platinum mine have rejected a pay offer from Lonmin management, dashing hopes for an end to their weeks-long strike.

The miners said the offer was well below the 12,500 rand ($1,513; £935) they were demanding.

The strikes have been marked by violent clashes, including the shooting dead of 34 miners by police.

The strike has spread to other gold and platinum mines in South Africa, a major exporter of precious minerals.

Production has been severely hit with several mines closed which, in turn, has pushed up platinum prices around the world.

The prices of most goods rose faster in August across the European Union (EU) compared with July, according to official figures.

The EU statistics agency Eurostat said inflation hit 2.7% last month, compared with 2.5% the previous month.

In the 17-nation eurozone, inflation also rose to 2.6% from 2.4% in July.

In Asia, India's inflation rate rose to a higher-than-expected 7.55% in August on a year earlier, official figures show.

Higher food prices were mainly behind the rise, which comes ahead of a Reserve Bank of India meeting on Monday to decide interest rate policy.

Analysts had expected the August inflation rate to be about 6.95%.

Rahul Bajoria, regional economist at Barclays Capital, said the "high" inflation number left central bank policymakers with a "tricky call".

Across the border in China, telecom firms Huawei and ZTE have denied US charges that some of their equipment has been installed with codes to help spying.

They have been accused of using these codes to relay sensitive information back to China.

Concerns over their association with the Chinese government and military have hurt the firms' expansion plans in the US.

The two are among the world's biggest makers of telecom networking equipment.

The BBC's Business Daily radio show on the World Service looks at the Fed's decision to pump £40bn into the economy in a bid to get Americans back to work.

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