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International Business News
Special Opec meeting
in February: Iran
AFP, Tehran
Iran's Opec representative Mohammad Ali Khatibi said on Monday that the organisation would hold an extraordinary meeting in Kuwait in February, state television website reported.
"The extraordinary meeting of die Organisation of Petroleum Exporting Countries is due to be held next month in Kuwait," Khatibi was quoted as saying.
"The exact date has not been fixed yet and no invitation has been sent to die members either," he added.
World oil prices rose in Asian trade late on Monday, fuelled by the continuing conflict in die Middle East after Israel stepped up its military onslaught on Gaza.
New York’s main contract, light sweet crude for February delivery, was up 1.21 dollars to 47.55 dollars a barrel in die afternoon. Brent Nordi Sea crude for February delivery was trading 81 cents higher at 47.72 dollars. •
Despite the spike in prices, analysts said the rally was likely to be unsustainable because of low energy demand caused by a weak global economy.
Last month, Opec agreed to cut output by 2.2 million barrels per day but prices continued to fall afterwards.
Iran, die organisation's number two producer, which was supportive of a serious supply cut at the previous meeting, had not decided on any move yet.
Berlin to work on new stimulus package
AFP, Berlin
Germany's fractious coalition was due Monday to hammer out a second stimulus package worth tens of billions of euros (dollars) to prevent Europe's economic powerhouse suffering its worst postwar recession.
The stage is set for a difficult meeting, however, with Chancellor Angela Merkel's CDU/CSU conservatives and the centre-left Social Democrats (SPD) divided on how best to respond to the sharp slowdown.
The aim of the meeting at the chancellery in Berlin from 2.00 pm (1300 GMT) is to whittie down the various proposals on the table into the basis for discussions for a second meeting next Monday, the government said last week.
Merkel says the first package was worth over 30 billion euros (40 billion dollars) but critics accuse the government of exaggerating its efforts and say it represents only 12 billion euros' worth of new spending.
After pressure from firms, experts, politicians on all sides and other countries -- Merkel has been dubbed "Madame Non" in some European quarters -- Berlin appears to have got the message.
China to give auto sector a boost
AFP,Shanghai
China will announce measures in the first quarter to keep its slowing auto sector growing at about 10 percent annually during the global economic slowdown, state media reported Monday.
The proposed measures include encouraging automotive companies to merge, reducing taxes on low-emission cars and ordering government agencies to buy domestic-made cars, Shanghai Securities News reported, citing unnamed sources.
The National Development and Reform Commission has submitted its proposals to the State Council, or Cabinet, for approval, and details are expected to be announced in the coming weeks, the newspaper said.
Premier Wen Jiabao said on Friday plans for the auto and steel sectors had been devised and were being reviewed, the state Xinhua news agency reported.
"These plans are aimed at current practical problems and long-term development of the industries as well," Wen said, adding plans for other sectors would follow.
Thai inflation falls in December on oil prices
AFP, Bangkok
Thailand's annual inflation rate fell sharply to 0.4 percent in December due to cooling oil and consumer products prices, the commerce ministry said.
The figure was down from November's figure of 2.2 percent, it said in a statement.
However, the kingdom's inflation rate in 2008 stood at 5.5 percent, up from the 2007 rate of 2.3 percent, mainly due to surging world oil prices in the first half, which have now dropped back.
The ministry said a six-month package introduced by the government in August had helped to lower the cost of living. The new government of Prime Minister Abhisit Vejjajiva has indicated that it will extend the measures.
"Lower oil prices have caused lower product prices, but if the six-month measures had been lifted the inflation rate could have risen," said Siripol Yodmuangcharoen, permanent secretary at the ministry.
Core inflation, which excludes volatile food and energy prices, rose 2.4 percent year-on-year.