China growth shows signs of pick-up from 13-year low
China's economy, the world's second largest, is showing signs of a rebound that could help it emerge from its worst economic period in 13 years.
According to the latest government figures, growth picked up to 7.9% in the final three months of 2012, from 7.4% in the previous quarter.
This was driven by state investment in infrastructure projects and efforts to get consumers and companies to spend.
Economic stability is seen as vital for China as its new leaders take over.
"It is obvious that the slowdown in the Chinese economy has halted for the moment," said Fraser Howie, an economist and co-author of Red Capitalism.
"But one has to be mindful that any recovery will be limited in its scope, not least because of the various headwinds that China is facing," he added.
"The new leaders, who take charge in March, will now have to find the right balance between trying to prevent the formation of a property bubble and keeping a healthy growth rate going."
That may prove tricky, not least because China's economic growth has slowed significantly from the highs of previous years, and analysts warn that state stimulus measures may wane.
On Friday, the statistical office reported that gross domestic product, the main measure of growth, increased by 7.8% in 2012, down from 9.3% in 2011.
That was the slowest annual rate of growth since 1999.
But it is still way above the anaemic growth rates experienced by most other major economies last year. Figures for the US, the world's largest economy, and Japan, the third largest, are expected to show growth of about 2%.
The 17 members of the eurozone are collectively expected to contract by about 0.4%.
Algeria oil industry: 'Dark cloud' over production
The situation with oil workers taken hostage in Algeria puts a "dark cloud" over the country's production, an international energy body has said.
Several hostages have been killed.
The International Energy Agency said that "political risk writ large" dominates much of the energy market, "and not just in Syria, Iran, Iraq, Libya or Venezuela".
The IEA also raised its forecast for global oil demand this year on the back of Chinese and US demand.
"The 16 January kidnapping and murder of foreign oil workers at the In Amenas gas field has cast a dark cloud over the outlook for the country's energy sector," it said.
"Production at the field was shut in, including an estimated 50,000 barrels per day of condensate."
The In Amenas field is operated as a joint-venture between Algeria's Sonatrach, Norwegian operator Statoil and UK energy giant BP.
The agency raised its forecast for global oil demand this year following greater demand in the last three months of 2012 by the two biggest economies in the world. The forecast is now 240,000 barrels per day more than its estimate in December, up to 90.8 million barrels per day - 1% more than in 2012.
Islamist militants are continuing to hold a number of hostages at a gas facility in the Algerian desert. One Briton was killed when militants ambushed a convoy on Wednesday.
BP said hundreds of workers from international oil companies had been evacuated from Algeria on Thursday and that many more would follow.
'Wrong' maple leaf on Canadian banknotes
Canada's new plastic banknotes feature Norway maple leaves, instead of the Canadian sugar maple leaf, according to botanists.
They argue the leaf shown features more sections and has a more pointed outline than the Canadian version.
The maple leaf is featured on the new C$20 (£13), C$50 and C$100 notes, which were introduced in November.
Bank of Canada officials say the image is a "stylised" leaf, created with the help of a botanist.
"I think it's just an after-the-fact excuse," said Sean Blaney, senior botanist at the Atlantic Canada Conservation Data Centre, who first brought the image to the attention of the broadcaster CBC.
The Norway maple, however, is a popular tree in central and eastern Canada, after being imported from Europe.
"It has naturalised to Canada," Mr Blaney said.
"This could not be confused with a native species of Canada," Julian Starr, a botany professor at the University of Ottawa, told the CBC.
The leaf on Canada's flag is stylised, but in such a way that it still looks like the native species, Mr Starr later told CTV.
In August, the Bank of Canada apologised for removing an image of an "Asian-looking" woman from the design of the new $100 bank note.
The polymer banknotes have also faced criticism for not working in many vending machines
Inauguration Day: Obama sworn in for second term
Barack Obama has officially been sworn in for his second term as US president in a small ceremony at the White House.
Mr Obama took the oath in the Blue Room to meet the 20 January date set out in the US Constitution.
Given this fell on a Sunday, a public inauguration with pomp and circumstance will take place on Monday.
Vice-President Joe Biden was sworn in for a second term at a small ceremony at his official residence earlier on Sunday morning.
Supreme Court Chief Justice John Roberts administered the oath of office to Mr Obama, witnessed by First Lady Michelle Obama and their daughters Sasha and Malia as well as some family members and reporters.
Resting his hand on a Bible used for many years by his wife's family, Mr Obama vowed "to preserve, protect and defend the Constitution of the United States".
He will repeat those words during Monday's public inauguration, in which he will also set out his plans for the next four years.
Mr Biden will also repeat his oath publicly on Monday.
Algeria Says Militants Captured, More Bodies Found at Gas Complex
Algerian security officials say a search of a desert gas complex raided by Islamists last week has led to the capture of several militants and the discovery of 25 more bodies, indicating the four-day hostage crisis was much deadlier than first thought.
The officials said Algerian special forces detained five militants at the complex of In Amenas in eastern Algeria on Sunday. They said the 25 bodies also discovered at the site likely included hostages who were among the hundreds of Algerians and foreigners working at the facility when the Islamists seized it on Wednesday.
Algerian security forces killed most of the hostage takers in an assault on Saturday. Algeria's state news agency said the militants executed seven hostages during that operation, while Algerian troops killed 11 of the kidnappers. In an earlier report on Saturday, the Algerian government put the official death toll of the siege at 23 hostages and 32 militants, but said the figures were expected to rise.
In a video released Sunday on an Islamist website, militant leader Mokhtar Belmokhtar claimed responsibility for the attack on the gas complex in the name of al-Qaida, saying 40 militants from Muslim and Western nations carried out the raid.
He said his group is ready to “negotiate” with the West if it stops what he called its “bombing of Mali's people” – a reference to French air and ground strikes against al-Qaida-linked rebels in the West African state, which borders Algeria.
Western powers backed the Algerian government's military response to the hostage crisis and its refusal to negotiate with the perpetrators.
British Prime Minister David Cameron said Sunday that responsibility for the killings “lies squarely” with what he called the “terrorists who launched this vicious and cowardly attack.” French President Francois Hollande welcomed what he described as Algeria's “most appropriate” response to “coldly determined terrorists.”
Algerian Communications Minister Mohamed Said said the Islamist assailants came from six nations. He said they had laid mines around the gas complex and security forces were trying to clear them.
Algeria has said an initial rescue operation at the facility freed 107 foreigners and 685 Algerians on Thursday. The foreign hostages included nationals of the United States, Austria, Belgium, Britain, Colombia, France, Japan, Malaysia, Norway, the Philippines and Romania. The complex is jointly run by Algerian, British and Norwegian firms.
British Prime Minister Cameron said three British hostages were confirmed dead, and another three were believed to have been killed. U.S. officials have confirmed the death of one American at the site.
The Japanese government said 10 of its citizens were unaccounted for at the site. It sent Japanese vice foreign minister Minuro Kiuchi to In Amenas on Sunday to find out what happened to them.
The U.S. State Department issued a travel advisory to Americans in Algeria, warning of credible threats of additional kidnappings attempts against Western nationals.
Rebels Accuse Burma Army of Ignoring Cease-Fire Order
Ethnic Kachin rebels in northern Burma say government troops are ignoring a cease-fire order that was supposed to go into effect Saturday.
President Thein Sein issued the order Friday to troops in northeastern Kachin state near the border with China. However, the rebel Kachin Independence Army said Sunday that attacks involving artillery and troops are continuing.
The fighting has marred optimism about Burma's political reforms, as it emerges from decades of military dictatorship.
Thein Sein urged international donor nations on Saturday to help in the development of the country's battered economy and in improving the living standards of its impoverished population. He assured them that the government was serious about ending armed ethnic conflicts.
3 Killed in Yemen Drone Strike
Officials in central Yemen say a drone strike has killed at least three militants.
Authorities said Sunday missiles fired from the unmanned aircraft successfully targeted a car, killing the suspected members of al-Qaida in the Arabian Peninsula.
One witness said the car was engulfed in flames.
Authorities in Yemen reported dozens of apparent U.S. drone strikes in 2012.
U.S.-backed Yemeni government forces have been fighting al-Qaida militants in the country for years.
Al-Qaida took control of parts of southern Yemen in 2011 during an uprising that ousted president Ali Abdullah Saleh.
Suspected militants have carried out suicide bombings and other attacks targeting Yemeni officials.
Fitch warns of risk to UK's AAA credit rating
The UK continues to risk losing its top AAA credit rating if it does not reduce its debt, a senior figure at Fitch Ratings has told the BBC.
David Riley reiterated that Fitch was unhappy that the chancellor said in the Autumn Statement that the Treasury would miss its 2015-16 target to start cutting the level of net debt.
Mr Riley said this had weakened the Treasury's "credibility".
The Treasury was not immediately available for comment.
Fitch has had the UK's AAA rating on "negative" outlook since March 2012, meaning that it is warning it may cut it.
Mr Riley, managing director of Fitch's global sovereigns division, told BBC Radio 4's World At One programme: "One of the factors that has been driving our negative outlook on the UK's AAA rating - and therefore poses a risk to the UK's AAA status - is the fact we have been consistently increasing our projection in terms of the level of government debt, and also pushing out the date and year when the debt will stop rising and start falling."
The UK's net sovereign debt was the equivalent of 68% of the country's annual economic output, or GDP, at the end of last year.
Mr Riley warned that if this was to rise to 100%, "in our view that is not really consistent with the UK retaining a AAA rating".
T&T economy has improved
Central Bank Governor Jwala Rambarran remained mum yesterday about whether Government’s declining approval ratings could affect economic confidence, but he was heartened to see a positive public perception that the local economy has improved.
Speaking at the Bank’s release of the Financial Stability Report (FSR) for December 2012, Rambarran said:
“I have no comments to make here regarding the performance of the Government, but I did note that, yes, the perception of the general public is that economic confidence has increased and the economy has improved. That is a significant improvement and I think that the more good or encouraging news that will filter into the course of this year, the perception will be boosted and that helps to bolster economic confidence."
Rambarran was referring to the Express poll, conducted by Market Facts and Opinion (MFO), that showed the population was unhappy with key aspects of the Government’s performance, including the Section 34 fiasco. Prime Minister Kamla Persad-Bissessar’s approval rating also took a hit, sliding from 54 per cent in 2011 to 38 per cent in 2012.
Regarding the economy, the poll found that almost three in ten saw an improvement—up from two in ten in 2011.
Their optimism seemed to be supported by the latest Central Bank data, which shows 1.5 per cent economic growth for the third quarter of 2012—a vast improvement over the 3.6 per cent decline in the second quarter.
Giving a preview of the Bank’s Economic Bulletin due for release at the end of the month, Dr Alvin Hilaire, chief economist and director of research at the Bank, said these third quarter results were “a glimmer of hope”, especially after several quarters of contraction in the energy sector.
The growth was not pervasive, he said, but increases in natural gas output boosted growth in the sector by 0.5 per cent. He added there were some weaknesses in oil production because of maturing oilfields and petrochemicals production was also slipping.
The energy sector had declined by 7.3 per cent in the second quarter because of ongoing maintenance work by several producers. On the non-energy side, Hilaire said there was about 2.1 per cent growth, with some growth activity seen in the construction sector.
The Bank and Rambarran maintained their “cautiously optimistic” outlook of 2.5 per cent growth for 2013.
Despite these positives, the FSR showed a slowdown in banks extending credit to businesses.
Private sector credit had increased by 4.7 per cent up to September 2012; business credit slowed to 1.6 per cent, compared to 5.0 per cent a year earlier.
“The commercial banking sector performed creditably despite prevailing economic conditions; although the system remained well-capitalised and highly liquid, overall profitability has been affected by the low interest-rate environment,” the report said.
“Weak growth domestic-wise–and in the Caribbean and internationally–has psychologically fed into the minds, I believe, of individuals and the private sector where the low confidence continues to resonate. How do we build back and regain confidence? Sometimes it is similar to ice melting–all it takes is really one step. There are a number of actions that have taken place over the last year and that will give the economy a boost, for example, the launch of the CLICO Investment Fund, which I think has put a lot of anxiety behind us,” Rambarran said.
Other highlights of the report include:
The non-banking sector has been more seriously affected by the slower pace of economic activity, with profitability dampened by the low interest rate environment;
Life insurance companies continued to exhibit positive performance in 2012, with the liability structure of the industry shifting over time towards more non-traditional business. Wealth-management products now accounted for 53 per cent of the industry, while ordinary life insurance fell to 34.4 per cent;
In the non-life sector, 2012 was underpinned by higher premium income from the property business, while motor vehicle business remained tepid. Foreign-used car sales expanded by 96.5 per cent, and the lower premiums paid for these cheaper vehicles appeared to have impacted the amount of premiums collected.
“The economy has shown a tremendous resilience in the face of the global fall-out and you have also seen our financial system remaining very resilient in the face of a harsher domestic environment. When you start to add some of those positives, there is enough to suggest our prospects are pretty favourable as we move forward for the rest of the year,” Rambarran said.
Germany's economic growth slows sharply in 2012
The German economy grew by 0.7% in 2012, a sharp slowdown on the previous year, preliminary figures show.
The figure was well below the 3% growth seen in 2011 and suggests the economy contracted in the fourth quarter.
"In 2012, the German economy proved to be resistant in a difficult economic environment and withstood the European recession," the federal statistics office Destatis said.
Some analysts believe the German economy will enter recession itself.
Destatis said economic activity "slowed down considerably" in the second half of the year, and particularly in the final quarter.
"The full-year growth figure [of 0.7%] implies a contraction of around half a percentage point in the fourth quarter," the office's top statistician Norbert Raeth said.
Last month, Germany's central bank, the Bundesbank, cut its growth forecast for this year to 0.4% and warned that the economy may have contracted in the final three months of 2012, and may do so again in first quarter of 2013.
The eurozone economy as a whole is already in recession, having contracted in both in the third and fourth quarters of last year.
Spending boost
For 2012 as a whole, Destatis said foreign trade was "very robust", with exports up 4.1% on 2011. Imports grew by 2.3%. The positive trade balance was "once again the main driving force for economic growth in Germany".
Household expenditure increased by 0.8%, while government spending was up 1%.
The figures also showed that while the service sector of the economy expanded, industry and construction contracted.
Destatis will publish official fourth-quarter growth figures on 14 February.