Morning business round-up: IAG cuts 4,500 jobs at Iberia

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

British Airways-owner IAG has announced 4,500 job cuts at Iberia as part of a widely anticipated restructuring of the Spanish carrier.

Iberia is cutting its 156-strong fleet by 25 aircraft, and reducing 15% of its network capacity, with the airline focusing on the most profitable routes.

The plan aims to stem Iberia's cash losses by mid-2013 and raise profits by at least 600m euros ($766m; £479m).

IAG also revealed a 30% drop in pre-tax quarterly profits to 221m euros.

Diageo will eventually get a 53.4% stake in Indian liquor baron Vijay Mallya's United Spirits.

Diageo, whose brands include Johnnie Walker whisky, Guinness beer and Smirnoff vodka, is raising its stake in India's fast-growing drinks market.

China has reported encouraging economic data, indicating that growth in the world's second-largest economy may be rebounding.

Industrial production, retail sales and fixed-asset investment all rose more than expected in October, from a year earlier.

Meanwhile, the inflation rate fell, giving room to policymakers to employ stimulus measures to support growth.

Factory output rose 9.6%, while retail sales jumped 14.5%, indicating that domestic demand was holding up.

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Biz Heads

The bank issued a statement after the Daily Telegraph newspaper said it was at the centre of a major investigation by the UK's chief tax authority, HM Revenue and Customs.

HSBC said it was investigating "an alleged loss of certain client data in Jersey as a matter of urgency".

HMRC said it had "received the data and we are studying it".

An international trade dispute over bananas dating back two decades has finally been settled.

The European Union and 10 Latin American countries signed an agreement to formally end eight separate World Trade Organization (WTO) cases.

The head of the WTO, Pascal Lamy, called it a truly historic moment.

The formal agreement followed the EU agreeing in December 2009 to gradually reduce the tariffs on Latin American bananas.

The latest Business Daily podcast from the BBC World Service considers whether a legalised drugs industry could bring in new taxes to boost the public purse.

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