Greece passes austerity budget after clashes

ATHENS (AP) ― Greece’s lawmakers overwhelmingly approved next year’s austerity budget early Wednesday, extending tough spending cuts that have already left Greeks struggling as the country tries to slash its vast debts and tame a severe recession.With three parties, including the majority socialists and their rival conservatives, participating in Greece’s new coalition government, the budget was passed with a 258-41 majority in the 300-seat Parliament.“This is a difficult budget ... with ambitio

Dec. 7, 2011

ADB trims 2012 Asian growth forecast

East Asian economies face greater downside risks on global slowdownHONG KONG (AFP) ― The Asian Development Bank trimmed its 2012 growth forecast for emerging East Asian economies including China, as the eurozone turmoil threatens to drag the global economy back into crisis.The Manila-based bank on Tuesday cut its gross domestic product growth forecast to 7.2 percent for the 10-country Association of Southeast Asian Nations plus China, Hong Kong, South Korea and Taiwan, from 7.5 percent in Septe

Dec. 6, 2011

Australia cuts key rate to 4.25%

SYDNEY (AFP) ― Australia’s central bank cut interest rates to 4.25 percent Tuesday with the global economy continuing to pose risks despite expectations of strong domestic growth in the September quarter.It was the second month in a row the Reserve Bank of Australia has slashed rates by 25 basis points, having cut in November for the first time since April 2009 amid slowing inflation and fears of a major world economic downturn.Economists were split on whether they would move again ahead of a su

Dec. 6, 2011

Merkel, Sarkozy want new EU treaty

PARIS (AP) ― The leaders of France and Germany called forcefully Monday for a new European Union treaty that would automatically punish countries that use the euro if they violate existing limits on overspending.Stocks and the euro rose while European government bond yields dropped sharply as investors viewed the proposal for a closer fiscal union among the 17 countries as an important step to save the euro.Implementing treaty changes could take months, but a commitment to tighter coordination c

Dec. 6, 2011

Honda prays for disaster-free U.S. rebound

Honda Motor Co. says replenished vehicle inventory and new Honda and Acura models planned for the next 24 months will spur a U.S. sales rebound next year after natural disasters dashed its 2011 goals. Honda’s loss of some North American output in October and November due to parts shortages caused by floods in Thailand led to it being the only large automaker to post a U.S. sales decline last month as total sales jumped 14 percent. That came after six months of declines resulting from reduced aut

Dec. 5, 2011

Italy backs austerity as EU races to save euro

ROME (AFP) ― Italy kicked off a crucial week of economic diplomacy for the future of the euro with a draconian austerity package of cuts, taxes and pension reforms to be presented to parliament on Monday.The cabinet gave its go ahead to the crisis-busting plan on Sunday estimating that it would save 30 billion euros ($40.3 billion) but warning that it would not prevent the economy from slipping back into recession next year.“This is a decree to save Italy,” Prime Minister Mario Monti told report

Dec. 5, 2011

SAP to pay $3.4b for SuccessFactors

SAN FRANCISCO (AP) ― SAP said Saturday it is paying $3.4 billion to acquire SuccessFactors, a software company specializing in human resources tasks. It is the latest move in the escalating rivalry between SAP and Oracle Corp., and underscores the increased interest in technology companies that deliver software over the Internet, or in the so-called “cloud.”The deal calls for subsidiary SAP America Inc. to pay $40 per share in cash for SuccessFactors. That is a 52 percent premium over SuccessFac

Dec. 4, 2011

Honda recalls globally for air bag problems

TOKYO (AP) ― Honda Motor Co. is recalling 304,000 vehicles globally for air bags that may inflate with too much pressure in a crash, send metal and plastic pieces flying and cause injuries or deaths.Honda said there have been 20 accidents so far related to the problem, including two deaths in the U.S. in 2009.The Japanese automaker announced the recall Friday, which affects the Accord, Civic, Odyssey, Pilot, CR-V and other models manufactured in 2001 and 2002.The recall spans 273,000 vehicles in

Dec. 4, 2011

Toyota, BMW strike green-car technology pact

TOKYO (AFP) ― Automakers Toyota and BMW on Thursday struck a partnership to share eco-friendly technologies, including in the joint development of lithium-ion batteries for next-generation electric cars, the companies said.Under the deal, the German automaker will also provide diesel engines for Toyota as the Japanese auto giant looks to boost sales in Europe, where more than half of passenger cars are diesel powered.Toyota has struggled to boost its European market share with its gasoline-elect

Dec. 2, 2011

U.S. auto sales come in strong in November

DETROIT (AP) ― Americans are finally replacing the cars and trucks they held on to during the economic slump, giving a big boost to U.S. auto sales in November.Chrysler, Ford, Nissan and Hyundai were among the companies reporting double-digit gains from last November, which is normally a lackluster month because of colder weather and holiday distractions. This November, buyers were lured by good deals, improving confidence in the economy and the need to trade in older cars.“Consumers are just st

Dec. 2, 2011

Slowdown sparks scramble to shore up China growth

SHANGHAI (AP) ― Chinese leaders are scrambling to shore up flagging economic growth as exports weaken, abruptly reversing course after they spent two years struggling to cool an overheated expansion and surging inflation.In the latest sign the world’s No. 2 economy is weakening faster than thought, a business index released Thursday showed manufacturing contracted for the first time in nearly three years. A day earlier, Beijing eased credit curbs in a bid to spur business activity.Struggling to

Dec. 1, 2011