Economy

Japan economy contracts

TOKYO: Japan is expected to report today that gross domestic product shrank in the second quarter of 2008, leaving Asia's largest economy teetering on the brink of recession, analysts said. But the downturn is expected to be relatively short and shallow, and Japan may yet escape a technical recession, which is defined as two or more consecutive quarters of economic contraction, they added. GDP probably shrank by about 0.6 per cent in the three months to June compared with the previous quarter, and at an annualised rate of 2.4 per cent, according to average market forecasts.

Islamic investment banks

KUALA LUMPUR: The number of syariah-compliant investment banks in the UK is expected to more than double to 10 within five years, Islamic lender Gatehouse said. The rise of banking that fulfil the requirements of Islamic law in the UK is being driven by government efforts to turn its capital into a global hub for the industry, said Samer Merhi, Gatehouse Bank executive director for institutional wealth management structuring and origination.

British inflation soars

LONDON: British 12-month inflation spiked to a 16-year high of 4.4 per cent in July as food prices surged, official data showed, scuppering hope of an interest rate cut to spur flagging growth. "A rate cut within the next couple of months looks well off the agenda," Capital Economics analyst Vicky Redwood said in response to the data. The 12-month figure marked the fastest annual rate of inflation since April 1992.

How to restart WTO talks

NEW DELHI: India urged developed nations Tuesday to return to the negotiating table to work out a new global trade deal but only if they are willing to give and not just look for what they can get. The latest round WTO talks fell apart in July.

Agencies