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International Business News
Britain on course to exit deep recession
AFP, London
The deep recession in Britain is easing, official data showed on hiesday. boosting hopes that the nation will soon join other major economies in returning to growth before the end of 2009.
British output contracted 0.6 percent in the second quarter compared with activity in the first three months of 2009, better than die previous estimate of minus 0.7 percent, the Office for National Statistics (ONS) said.
Gross domestic product shrank 5.5 percent between April and June compared with GDP in the second quarter of2008.
The 12-month figure, unchanged from die previous estimate made in August, marked the biggest drop since records began in 1955.
"Today's data offers further indications that we are likely to see growth in the third quarter" and an end to Britain's deep recession, said Charles Davis, an economist at independent consultants, the centre for economics and business research (cebr).
IHS Global Insight analyst Howard Archer commented: "Matters have moved on appreciably since the second quarter with the key question being has the economy returned to growth in the third quarter?
"We suspect that it has, and are looking for expansion of around 0.3 percent quarter-on-quarter."
Strike forces Air India to suspend ticket sales
AFP, Ntw Delhi
Air India said on lUesday that about half of its international flights had been cancelled due to a strike by pilots and announced a suspension of new bookings.
Nine out of 21 international flights and 37 out of 177 domestic flights were scrapped, spokesman Jitender Bhargava said, after pilots in three major cities called in sick for the fourth day after talks to end the dispute broke down.
"We have stopped taking bookings temporarily till mid-October," Bhargava told AFP "This is to make sure inconvenience to passengers is avoided and we have surety of flights operating."
Overnight talks between the company and the nonunionised senior pilots, who are protesting a slash in performance-based incentive pay, failed to make headway with about 180 pilots reporting sick on Tuesday, Bhargava said.
An earlier statement by Air India said the pilots' refusal to accept bonus cuts was "unacceptable" and that "all options are being kept open."
But chairman and managing director Arvind Jadhav told reporters there was no chance of a lockout and urged pilots who had called in sick to "come back quickly and restore normalcy for the benefit of the passengers.”
Taiwan may ease controls on high-tech investment in China AFP, Taipei
Taiwan is close to easing curbs on local firms investing in high-tech companies in China, the island's economics minister said Tuesday, in a sign of improving ties despite recent spats with the mainland.
The long-standing controls on investment in China are now under government review and could be relaxed before the end of2009, Shih Yen-hsiang told parliament.
"The discussions will not take a long time. We expect there will be a conclusion before year's end," he said in response to a question from a lawmaker.
The lifting of restrictions referred to by Shih would apply to high-tech industries in particular, said Huang Hsien-lin, an economics ministry official.
The Commercial Times earlier Tuesday also reported plans by the ministry to allow Chinese investors to buy stakes in Taiwanese flat panel and microchip makers.
Calls for easing controls on high-tech investment in the mainland have been mounting among local industry players as they claim their competitors from South Korea and Japan have been stepping up activity there.
European economic confidence rises again: EU survey
AFP, Brussels
European business and consumer confidence firmed in September for a sixth month running, an EU survey showed on Tuesday, building on recent encouraging news for Europe’s struggling economies.
The European Commission's economic sentiment indicator for the 16 nations using the euro single currency rose to 82.8 points in September from a revised 80.8 in August, continuing a climb away from a record low 64.6 points in March.
However the rise remains below long-term averages and was the smallest recorded over the last six months.
In the 27-nation EU, the indicator rose to 82.6 points from a revised 81.0 points in August.
Among the biggest EU nations, Erance and the Netherlands saw the biggest rises, up 4.7 and 4.6 points respectively, while Germany posted a moderate increase of 1.5 points.