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International Business News
India car sales edge higher in March
AFP, New Delhi
Indian passenger car sales growth edged higher in March from a year earlier but commercial vehicle sales plummeted, reflecting a worsening economy, industry figures showed Wed nesday.
Car sales rose by one percent in March to 129,358 units from the same month last year, according to data released by theSociety of Indian Automobile Manufacturers (SIAM).
But sales of trucks and other commercial vehicles, which reflect changes in industrial activity and are seen as a pointer to the economy's overall health, slid by 26.22 per cent in March to 41,881 units.
Motorcycle and other two-wheeler sales jumped by 3.65 percent to 654,017 units in March from a year earlier as buyers looked for cheaper transport.
Total vehicle sales climbed in March by 1 09 percent to 893,934 units from the same month last year.
For the financial year to March 31,2009, domestic passengercarsales rose by 1.31 percent to 1,219,473 units.
The growth is a far cry from the car industry's strong expansion in previous years when India’s economy, growing by nine percent-plus, created a breed of prosperous newr buyers.
Worries about unemployment, high borrowing costs and stricter loan conditions as a result of the global financial crisis have hit demand for passenger cars.
US unemployment may top 10pc by year-end
AFP, Washington
A US Federal Reserve regional head, Richard Fisher, said Wednesday that the US unemployment rate could exceed 10 percent by the end of this year.
"I expect the unemployment rate to continue rising to a level that could surpass 10 percent by year-end," Fisher, the president and chief executive of the Federal Reserve Bank of Dallas, said in a speech in Tokyo.
Fisher also estimated that the world's largest economy contracted in the first quarter of 2009 at a pace "very similar" to the previous quarter, according to the prepared text.
Official data showed US gross domestic product (GDP) shrank at an annual rate of 6.3 percent in the 2008 fourth quarter. Last week Fisher suggested that pace would continue or even accelerate in the first quarter.
The unemployment rate in the economy, struggling in a second year of recession, rose to 8.5 percent in March, its highest level since November 1983.
In its latest forecasts published in February, the Fed projected the jobless rate between 8.5 percent and 8.8 percent by the end of the year.
The Dallas, Texas Fed is one of the 13 regional branches of the US central bank. Fisher is not a member of the central bank's policy-setting Federal Open Market Committee.
Japanese firm sparks row over weekend work
A Japanese cellphone maker accused of coercing employees into working for free on weekends during the recession said Wednesday that it would pay them overtime, blaming a breakdown in communications.
Uniden Corp, said nearly 100 of its 280 headquarter employees in Tokyo had turned up for work on two Saturdays since last month, responding to its call for more hard work.
But even in a country known for its long work hours, the idea of spending the weekend on the job was too much for some, who complained to a labour watchdog.
The mobile telephone maker put it down to a miscommunication.
"At the board meeting, the management decided to ask for more cooperation from employees to help the company's performance, which is in (a) slump," a spokesman said.
"That policy was conveyed to some employees too strongly, as certain department chiefs sounded coercive," he said, adding that the employees would be paid for their extra hours.
Thailand cuts interest rate by 25 basis points
Al P, Bangkok
The Bank of Thailand cut the key interest rate by 25 basis points to 1.25 percent Wednesday to help spur the economy amid the global financial downturn, an official statement said.
It is the fourth cut since December as the central bank tries to boost Thailand's lacklustre economy, which is officially forecast to shrink by two to three percent this year.
Assistant bank governor Duangmanee Vongpradhlp said the bank's Monetary Policy Committee decided to cut the rate because the world situation was continuing to cause a marked contraction of both major and regional economies.
"In addition, the severity and duration of the crisis remains highly uncertain, which would affect the Thai economy through contraction of exports while private domestic demand remains weak," she said in official statement.