China's exports and imports fall

10 February 2012 Last updated at 07:39 GMT The manufacturing and export sectors are key drivers of growth in China China's exports fell in January, the first decline in more than two years, raising fresh concerns about the impact of a global slowdown on its economy.

Exports dipped 0.5% from a year earlier hurt by sluggish demand and factories being shut during the Lunar New Year.

Imports fell by 15.3%, resulting in a trade surplus of $27.3bn (£17bn) which was a six-month high.

The fall in imports comes as China has been trying to boost domestic demand in an attempt to offset slowing exports.

'Particular attention' Continue reading the main story

We believe the major drag and biggest risk to China's growth in 2012 is weaker external demand caused by the ongoing eurozone debt crisis”

End Quote Ting Lu Bank of America Merrill Lynch Analysts said while the closure of establishments during the Chinese New Year affected the numbers, the decline could not be attributed to the festival alone.

They said that the bigger-than-expected drop, especially in imports, was worrying as it gave an indication of slowing growth.

"The collapse of imports begs particular attention," said Ren Xianfeng of IHS Global in Beijing.

"A fall of over 15% in January cannot be entirely explained by the lunar calendar, and adds weight to the view that economic output is slower than headline indicators might suggest."

Earlier this month, the China Federation of Logistics and Purchasing reported that the import index for January fell to 46.9 from 49.3 in the previous month, showing slowing demand at home.

Despite these numbers, analysts said the dip was likely to be short-lived and imports may start to rise in the coming months.

'Biggest risk'

The export sector has been key to China's economic growth in the past few years as global firms have turned to Beijing to take advantage of its low-cost manufacturing.

However, a slowdown in the US and the eurozone, which are two of the biggest markets for Chinese goods, has seen the pace of growth of shipments slow in recent months.

China's surplus with major trading partners has been a hot political issue

The debt crisis in the eurozone and high rate of unemployment in the US have hurt consumer confidence and dented demand for Chinese goods.

Official figures on Friday showed that bilateral trade between China and the European Union fell more than 7% in January.

Analysts said the continuing debt issues in the eurozone were the biggest threat to China's growth.

"We believe the major drag and biggest risk to China's growth in 2012 is weaker external demand caused by the ongoing eurozone debt crisis," said Ting Lu of Bank of America Merrill Lynch in Hong Kong.

"Our European economists expect a moderate eurozone recession at -0.6% in 2012, while nobody knows the exact probability and severity of a collapse of the eurozone."

More pressure?

China's trade surplus has been a politically sensitive issue, especially with trade partners such as the US.

Businesses and policymakers have accused China of keeping the value of its currency artificially low in a bid to boost its foreign sales.

They have argued that China's high trade surplus has been detrimental to their economic growth.

The latest data comes ahead of Chinese Vice Premier Li Keqiang's visit to the US next week.

Analysts said the latest jump in the surplus was likely to result in added pressure on China, during the vice-premier's visit, to alter its export-led growth policy.

Network Rail pay chief to stay

10 February 2012 Last updated at 17:38 GMT Network Rail receives £4bn of taxpayer funding a year Network Rail has dismissed calls for the chairman of its remuneration committee to step down following the controversy over executive bonuses.

At a board meeting, some of the company's public members urged the company to appoint a "fresh face".

It follows a political row over bonuses at the taxpayer-subsidised company.

The members were unhappy at how the bonus issue was handled. Network Rail said the committee remained as it was with Steve Russell as boss.

Last week the company's executives announced they would not take bonuses worth as much as 60% of their salary.

'Pretty clear'

One of the members who attended Friday's meeting, David Pemberton, told BBC News: "The phrase that was used was that Steve Russell had 'done a good job' and would see it through to the end.

"The chairman and chief executive and Mr Russell sat side-by-side.

"It was pretty clear that they wanted him to stay to do the job. And Steve Russell said that he was determined to see this through."

Network Rail refused to comment on discussions inside the meeting. A spokesman said they "were not part of the formal business".

Originally the meeting had been scheduled to consider a new bonus scheme but those discussions have been postponed to a later date which has not yet been decided.

Network Rail was set up in 2002 as a replacement for Railtrack. It owns and operates the UK's rail infrastructure, receives £4bn of taxpayer funding a year and is guaranteed by the government.

De Beers annual profits jump 62%

10 February 2012 Last updated at 16:43 GMT Rough diamond prices jumped almost 30% last year Diamond producer De Beers has announced a surge in profits as Chinese and US shoppers snapped up its gems.

Underlying profits were up 62% last year to $698m (£443m).

But the firm warned that trading slowed down in the second half of 2011 and it says that trend is likely to continue this year.

In November, the mining giant Anglo-American agreed to buy out the Oppenheimer family, giving it a controlling stake in De Beers.

The company's chief executive is cautious about the prospects for 2012.

"I don't believe we will see a major crash, but there is certainly a lot of uncertainty," said Philippe Mellier, who took over at De Beers last year.

"On the other hand, all luxury goods appear to be holding very well, and as a result, the luxury goods companies are showing there is still strong demand."

In its annual report, the company said that the price of rough diamonds rose 29% last year.

Israel nationwide strike is over

12 February 2012 Last updated at 12:01 GMT The strike affected major transport hubs including Tel Aviv's Ben-Gurion International Airport Israel's main trade union federation has ended a five-day nationwide strike which closed government offices, the stock exchange and key transport hubs.

Histadrut began the protest on Wednesday to try to improve the pay and conditions of 250,000 contract workers.

The workers, often cleaners and security guards for the government, were paid less and had fewer rights than directly employed permanent staff.

The Israeli government has agreed to give them a 20% pay increase.

They will also become eligible for bonuses and have improved pensions and holiday pay.

Histadrut originally was pressing for the government to employ the workers directly, but has accepted the enhanced terms offered by the government.

A deal with private sector businesses that employ such contract workers was struck last week.

They agreed that employees who have worked full time for at least one year would be hired directly rather than through an employment agency.

At that time, the government held back from signing an improved deal, saying it could not take on so many new workers.

The strike had a wide-ranging impact, at one point putting Tel Aviv's Ben-Gurion International Airport out of action.

It also affected hospitals, banks, the national electricity company, as well as ports and the rail service.

The Israeli Chambers of Commerce put the cost of the action at about $100m (£63m) a day.

Dyson intends to create 300 jobs

12 February 2012 Last updated at 21:05 GMT James Dyson founded the engineering company in 1992 The engineering firm Dyson says it has made £1bn ($1.58bn, 1.19bn euros) turnover for the first time and will create 300 skilled jobs, around 8% of its workforce.

The firm, best known for its bagless vacuum cleaners, said sales rose by a quarter in 2011, with some markets growing by 30%.

The company's new chief executive, Max Conze, said 200 of the new jobs would be engineering positions.

At least 150 will go to graduates.

The Wiltshire-based group, founded by Sir James Dyson, employs 3,600 staff worldwide.

It was founded in 1992 and now sells machines, including hand dryers, in more than 50 markets.

Dyson designs its products in the UK but after initially making them in the UK, moved much of the manufacturing to Malaysia to cut costs.

It did not reveal its profit figure for the year. In 2010, the business made a profit of £210m on turnover of £887m.

Small business loan target missed

10 February 2012 Last updated at 16:01 GMT Under the government's Project Merlin deal, the banks agreed to increase lending significantly The five main UK banks have missed their Project Merlin target for lending to smaller firms, but exceeded the overall lending target, British Bankers' Association figures show.

The banks said they met their overall government-agreed commitments last year, with gross new loans of £214.9bn against a target of £190bn.

But £74.9bn was lent to smaller firms, less than the £76bn target.

The banks blamed the shortfall on fewer firms coming forward for credit.

A spokesman for the banks said demand for credit from small firms fell last year and "remains weak".

Under the government's Project Merlin deal, the five UK banks - Barclays, HSBC, Lloyds Banking Group, RBS and Santander UK - were to make it easier for smaller firms to access credit.

The collapse of many smaller businesses during the financial crisis was blamed on banks' refusal to lend to viable companies.

The £74.9bn the banks lent to small and medium-sized firms last year compares with £66bn in 2010.

'Challenging' conditions

The national chairman of the Federation of Small Businesses, John Walker, described the failure to hit the £76bn target for loans as "extremely disappointing".

"It is even more disappointing, given that the Project Merlin targets were set artificially low in the first place," he added.

"Now, more than ever, it is imperative that the government embraces plans for alternative sources of finance and puts in place its credit easing scheme."

A spokesman for the Merlin banks said: "This performance demonstrates the banks' commitment to providing businesses with the financial support they need to invest and grow and the significant progress made this year."

He cited last month's Bank of England Credit Conditions Survey, which said that the demand for credit from small businesses fell in three out of four quarters in 2011.

The spokesman said: "The banks' efforts to encourage customers to come forward with borrowing proposals are set against this overall challenging economic environment. The business demand for credit remains weak."