Energy costs push German inflation rate up to 2.3%
Rising energy prices pushed German inflation up to 2.3% in 2011, according to official figures from Destatis.
The inflation rate compares with 1.1% in 2010 and 0.4% in 2009. It was the highest annual figure since 2008, when inflation was 2.6%.
It takes Germany outside the European Central Bank's target rate for eurozone inflation, which is close to, but below, 2.0%.
Excluding energy prices, inflation would only have been 1.3%.
Energy prices, including motor fuels, rose 10% in the year. Motor fuel and heating oil prices alone rose 13.9% in the year.
The figures come on the day of the European Central Bank's latest monthly interest rate decision.
Rates are expected to be left unchanged at 1.0%, following two consecutive months of cuts.
China inflation rate little changed at 4.1% in December
China's rate of inflation was little changed in December, despite government efforts to rein in prices.
Consumer prices rose 4.1% from the same month last year, the National Bureau of Statistics said. That is down from 4.2% in November.
For the full year, inflation was at 5.4%, well above government targets.
Analysts said that while inflation remains a concern for policymakers, price growth should slow further and more quickly in 2012.
Shifting to growth?
Jain Chang, China economist at Barclays Capital, said that there was usually a lift in prices in the month before and after the Chinese New Year, which is due to start on 23 January.
However, she said that the expectation was for price growth to continue moderating throughout 2012.
She added that China's policymakers were likely to remain cautious over inflation and were unlikely to significantly ease their monetary policy until it was clear that inflation was fully under control.
China had implemented tightening measures to rein in inflation, including cutting interest rates and increasing the amount of money banks must keep in reserve.
However, once inflation is brought under control, China will probably shift some policies towards underpinning domestic growth, especially as it is facing a number of external issues such as the eurozone debt crisis.
In fact China has already taken some small measures to bolster economic expansion, and in November it cut for the first time in three years the amount of cash banks need to keep in reserve .
China "will continue the policy easing cycle", said Zhiwei Zhang from Nomura.
Important year
Some analysts warned that any future boost to the economy may result in the rate of inflation accelerating again, and it may be a problem China just has to get used to.
Many economists attribute the run of high inflation over the last year to the stimulus measures China injected into its economy during the previous global financial crisis in 2008.
Fraser Howie, from CLSA Asia-Pacific Markets, said Chinese authorities will "be prepared to let inflation go up again because they are going to go after growth ultimately".
"It's a political handover year in China and that means they are going to want a strong economy," he added.
RBS to cut 3,500 jobs in investment bank shake-up
The Royal Bank of Scotland (RBS) has said it will cut a further 3,500 jobs, with most of them to happen this year.
The cuts are part of a reorganisation and shrinkage of its investment bank.
The losses, which will be split between its UK and international offices, come on top of 2,000 cuts announced earlier.
A further 950 jobs are also to go at Irish subsidiary Ulster Bank, split between 350 in Northern Ireland and 600 in the Irish Republic.
New focus
RBS' "wholesale banking" business, which provides services to large clients including investment banking services, will be split into separate "markets" and "international banking" divisions.
The new markets division - which comprises RBS' main trading activities - will focus on the bank's traditional strengths of debt, currency and money markets, the bank said in its statement.
The international banking division will provide services for the bank's biggest clients.
These will include corporate advisory services transferred from its investment bank - such as helping major companies borrow money by issuing bonds - as well as cash management and payments services.
The bank has already shed some 30,000 employees over the last two years, 22,000 of them in the UK.
Suicide Bombing Kills Afghan District Chief
Authorities in southern Afghanistan say a suicide car bomber has killed at five people, including a local district chief.
Provincial officials say the governor of Kandahar province's Panjwayi district was traveling in his car with his two sons when the bomber rammed a vehicle full of explosives into them. All three were killed in Thursday's blast.
Two of the district governor's guards were also killed in the explosion near Kandahar city.
Officials say nine police officers and a civilian were wounded.
On Wednesday, Kandahar's police chief escaped unharmed after a suicide bombing outside his office in Kandahar city.
There has been no claim of responsibility for either attack.
Taiwan President In Tough Re-Election Fight
Taiwan incumbent President Ma Ying-jeou says he is the only candidate in Saturday's election who can continue Taipei's strong and beneficial relationship with mainland China.
Speaking to foreign journalists in Taipei Thursday, President Ma emphasized his success in the reconciliation effort that has changed the nature of Taiwan's cross-strait relationship with China.
“Cross-strait relations is so important to Taiwan that we need someone with a very comprehensive set of mechanism which could properly deal with the niceties of the relations between the two sides. And we have been able to achieve peace across the Taiwan strait. Obviously we will continue to do that to make sure the peace will be a long lasting one.”
Mr. Ma faces an unexpectedly tough bid for re-election Saturday. His main challenger, Tsai Ing-wen of the Democratic Progressive Party, has exploited complaints by middle- and working-class Taiwanese that economic benefits of the president's embrace of China have largely passed them by.
Opinion surveys published a week ago indicated the incumbent clinging to a narrow lead, despite Tsai's relative inexperience in public office.
Taiwanese voters will also elect a new legislature on Saturday, with the ruling Nationalist Party trying to hold its 64-percent majority of the 113 seats. The Nationalists could use their majority to block the political process if they lose the presidency.
President Ma, who took office in 2008, has reached out to China by entering landmark talks with Beijing. The talks have produced a series of agreements designed to boost the island's economy while easing decades of tension with the mainland.
Tsai has campaigned for increased trade with China, but only if Beijing respects Taiwan's autonomy. Her government is also unlikely to renounce its goal of formally declaring independence.
Taiwan split from China amid civil war in 1949, but Beijing continues to regard it as part of its territory.
Japanese, S. Korean Nuclear Envoys Hold N. Korea Talks
Japanese and South Korean nuclear envoys held talks Thursday in Seoul, to explore further initiatives aimed at persuading North Korea to end its nuclear weapons program.
The meeting between Japanese negotiator Shinsuke Sugiyama and South Korean counterpart Lin Sung-nam comes just days before the duo travels to Washington for high-level nuclear consultations next week.
Last month, envoys from North Korea and the United States met in Beijing — just days before North Korea announced the death of longtime leader Kim Jong Il. Those talks, described by participants as positive, were aimed at persuading the North to rejoin a larger forum of countries seeking an end to Pyongyang's nuclear activities. North Korea quit the six-party nuclear talks involving the two Koreas, China, Japan, Russia and the United States in late 2008.
Western news reports had said the North was poised to announce an agreement with Washington to suspend its uranium enrichment program and accept international nuclear oversight of its nuclear activities, in exchange for urgently needed food aid.
Analysts say it is not yet clear whether Mr. Kim's successor and son, Kim Jong Un, will agree to suspend enrichment efforts.
Lakers beat Suns 99-83 to win 3rd in a row
Kobe Bryant scored 48 points - his fifth straight game with 25 or more - and the Los Angeles Lakers defeated the Phoenix Suns 99-83 Tuesday night to win their seventh straight at home and third in a row overall.
Bryant, the NBA's leading scorer, topped the 40-point mark for the first time this season, the first in the league to do so. He was 18 of 31 from the floor and made 12 of 13 free throws. Pau Gasol added 16 points and 12 rebounds.
Channing Frye scored 17 points, Marcin Gortat had 16 points and 12 rebounds, and Steve Nash added 13 points and eight assists for the Suns, who had their two-game winning streak snapped.
Shannon Brown scored Phoenix's first six points of the fourth quarter, twice drawing the Suns within one. He and Frye then hit consecutive 3-pointers that got the Suns to 83-82, but they were never able to take the lead in Brown's first game against his former team. He finished with 11 points.
The Lakers closed the game on a 16-2 run, including 10 in a row against a Suns team that is just behind them in the Pacific Division. Bryant had their final 10 points.
Phoenix led by one in the third and tied the game twice after that before getting outscored 11-6 to end the quarter trailing 73-68.
The Lakers led 46-40 at the break after allowing the Suns to erase most of their 12-point lead in the second quarter. The Suns got balanced scoring in a 15-2 run that drew them within one before Bryant and Gasol keyed a 9-2 spurt to end the first half, when Bryant scored 23.
Bryant scored 13 of the Lakers' final 15 points to put them up 25-19 in the first quarter after they trailed by nine.
FBI Report On ODB Released, Makes Sensational Allegations On Wu Tang
The FBI records on the late Ol’ Dirty Bastard have been released and charges that the rapper was involved in a variety of illict activities as a member of the Wu Tang Clan.
Gun.io obtained the records fairly easily as a request under the Freedom of Information Act.
The 90-page report outlines when ODB was robbed and shot while residing in the Kingston projects of Brooklyn, New York.
The document more thoroughly discusses the Wu Tang Clan’s alleged past in the streets.
It accuses that a number of illegal matters including “The WTC (Wu Tang Clan) is heavily involved in the sale of drugs, illegal guns, weapons possession, murder, carjacking and other types of violent crime.”
They also state that the crew had connections to murder, shootouts with the NYPD, connections to the Bloods gang and possession of illegal body armor.
Amber Rose Forgives Kim And Kanye
A week after calling Kim Kardashian a “homewrecker” and blaming her for ruining her relationship with Kanye West, Amber Rose has forgiven the reality TV star, according to TMZ.*
Rose said she felt bad about calling the reality star a “homewrecker” and forgives her.
“I forgive her … and I forgive Kanye too … it’s not a big deal, you know?”
She also said she acted on her emotions when she said everything she did about Kardashian last week, including that she cheated on ex-boyfriend Reggie Bush.
Sources close to Kardashian said she denied all the accusations.
Tamara Tunie’s Ex-Accountant Sentenced to Prison
Actress Tamara Tunie’s former accountant – the one who was accused of secretly opening a credit card in her name and writing checks without her knowledge, has been sentenced to a minimum of two-and-a-half-years behind bars.
Joseph Cilibrasi was accused of allegedly stealing $1.4 million from the “Law & Order: Special Victims Unit” star over the course of their 10-year partnership.
He pleaded guilty to a number of charges, including grand larceny, back in November and, on Tuesday, he was sentenced to two-and-a-half-years to seven-and-a-half-years in prison for the crime.
Tunie appeared in court for the sentencing.