Morning business round-up: Olympus chairman pleads guilty


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

Former Olympus chairman Tsuyoshi Kikukawa has pleaded guilty to charges of falsifying accounts, covering up losses of $1.7bn (£1.1bn), at the opening of his trial.

Two other former executives, as well as the camera firm itself, filed a guilty plea in Tokyo District Court.

The executives face up to 10 years in prison.

Some of China's richest people have felt the effects of economic slowdown in the country, with their wealth reducing in the past year, according to the Hurun Rich List.

China has 251 people worth $1bn (£616m) or more, 20 fewer than last year.

However, the number is still a huge increase compared with 2006, when there were only 15.

Diageo is reported to be trying to buy a 15% stake from Vijay Mallya, the man behind the Force India Formula One team and Kingfisher Airline, and 10% from other shareholders.

Mr Mallya, chairman of United Spirits, has been under pressure to raise capital to put into his airline.

Media caption,
Biz Heads

Foxconn has resumed production at its Taiyuan plant in Northern China, which was halted on Monday following a riot.

The company said that the one-day stoppage would not affect its output.

Foxconn is the world's largest contract manufacturer of electronics, making brands such as Apple, Microsoft, Nokia and Dell.

Workers at the plant said that the unrest had been sparked when a worker was severely beaten by security guards on Sunday evening.

Model maker Hornby has said it will not make a profit this year, due to disappointing sales of London 2012 merchandise and supply problems.

Lower-than-expected sales of Olympics products meant retailers cancelled repeat orders, it said. It also expects substantial disruption to production at a major supplier in China.

With consumer spending still depressed, the firm now only expects to break even in the 2012-13 financial year.

The latest Business Daily programme on the BBC World Service looks at the problems created by the political paralysis in India.

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