Morning business round-up: UK exits recession

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

The UK economy emerged from recession in the three months from July to September, helped by the Olympic Games.

The economy grew by 1.0%, according to official gross domestic product figures (GDP), which measure the value of everything produced in the country.

The Office for National Statistics said that Olympic ticket sales had added 0.2 percentage points to the figures.

The economy had been in recession for the previous nine months and has still not recovered the levels of output seen before the financial crisis in 2008.

In company news, Spanish bank Santander has said its quarterly profits fell by more than 90% after taking provisions for bad property loans in its local market.

Net income fell to 100m euros (£81m) in the third quarter from 1.8bn euros in the same period last year, it said.

The bank also said that UK profit fell 21% to 337m euros in the three months.

So far this year, Santander has set aside 3.5bn euros for provisions for property losses - a problem facing all Spanish banks.

Shares of liquid-crystal display maker Sharp fell more than 6% on a report of a bigger-than-expected net loss for the April to September half-year period.

The Nikkei business daily said Sharp would post a net loss of 400bn yen ($5bn; £3.1bn).

In August Sharp had forecast a loss of 210bn yen for the same period.

Sharp has promised to sell off assets and trim its workforce by about 10,000 in an effort to return to profit.

And Hyundai Motor's profit dipped in the third quarter as strikes in the wake of a labour dispute during the period hurt its production.

Net profit was 2.17tn won ($2bn; £1.2bn) in the July to September quarter, down from 2.5tn won in the previous three months.

The strikes, which started in July, cut production by nearly 82,000 vehicles.

However, profit was up 13% from a year earlier and is expected to rise further as the dispute has since been resolved.

Media caption,
Biz Heads

WPP, the world's largest advertising group, has reduced its full-year outlook for the second time in two months, sending its shares lower.

The group said it had not done as well as it had hoped from Euro 2012, the Olympics and Paralympics and the US presidential campaign.

It now expects like-for-like revenue growth of 2.5% to 3% for the year. In August, it had forecast 3.5% growth.

Reported revenue in the third quarter rose 1.6% to £2.5bn, WPP said.

Singapore's High Court has sealed documents in a lawsuit centred on Royal Bank of Scotland (RBS), a trader and allegations of rate fixing.

RBS had fired its former trader Tan Chi Min over allegations of improperly influencing the setting of the London Interbank Offered Rate (Libor).

In his lawsuit, Mr Tan has alleged that he was being made a scapegoat.

RBS is one of many banks being investigated for the possible rigging of Libor, a key interbank lending rate.

Workers at India's Kingfisher Airlines have agreed to call off their strike after the cash-strapped carrier offered to pay three months of salary.

The staff have not been paid for seven months and there had been speculation they may not accept the airline's offer, made earlier this week.

Kingfisher's licence has been suspended amid concerns over finances and safety.

It still needs to submit a plan on how it intends to secure its future to get permission to fly again.

In the latest Business Daily podcast from the BBC World Service, Microsoft boss Steve Ballmer talks to the BBC's technology correspondent Rory Cellan-Jones about his new tablet computer and whether he is playing catch-up with Apple and Google.

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