US ECONOMY GROWING MODERATELY
The US economy continued to grow moderately in December, but the weak housing market was still acting as a brake, says the Federal Reserve.
In its latest Beige Book report, the US central bank said the manufacturing sector continued to enjoy the biggest upturn, while retailers saw a rise in sales over Christmas.
The Fed said the housing sector remained subdued across the US. The data showed the US economy grew by 2.6% between July and September.
However, this annualised level is too low to tackle the country's continuing high level of unemployment.
The most recent figures showed that the US jobless rate totalled 9.4% in December.
The Fed is now continuing to buy $600bn (£381bn) of bonds to help stimulate the economy.
Meanwhile, interest rates remain at between 0% and 0.25%.
Federal Reserve Chairman Ben Bernanke warned last week that the US economy recovery would continue to be slow.
The central bank's Federal Open Market Committee next meets to discuss interest rates on 25-26 January.
It was a major downturn in the US housing market that sparked the global financial crisis in 2007, as it revealed substantial bad US mortgage
debt.
debt.Toyota has agreed to pay a fine in the US of $32.4m
Toyota agreed to pay a fine in the US of $32.4 over its handling of millions of cars recalls. This is the second biggest fine Toyota will pay to the US authorities. They say that it was “pleased to have resolved these legacy issues", but did not admit any violations of US law. Toyota has recalled 10 million cars since last year. The latest fine in 2005 concerning steering defects in nearly One Million Cars ,
"These agreements are an opportunity to turn the page to an even more constructive relationship with the [US] National Highway Safety Administration [NHSA] and focus even more on listening to our customers and meeting their high expectations for safe and reliable vehicles," said Steve St Angelo, Toyota's chief quality officer in North America.
Defects in the cars
Last year in September, Toyota recalled about 4 million cars after the fears that the accelerator pedal could get stuck on the floormat.
This year in January, it recalled about 2.3 million cars to fix the faulty accelerator pedals
In August, it recalled 1.1 million Corolla and Matrix models having a problem with the engine control system .
In October, 1.5 million cars were taken back as there were brake and fuel pump detects
THE ANNOYING ONION
Food Inflation has touched double digits again in India as it reaches 12.13%. And onions have been blamed.
Onions are a basic ingredient in many Indian dishes - soaring prices in the past have sparked unrest. Prices have jumped to 70 rupees ($1.55; £0.99) per kg from 35 rupees last week.
As a measure to keep the prices from fluctuating, the Government of India has banned onion exports. . The ban is until 15 January and India is importing onions to ease shortages. Agriculture Minister Sharad Pawar told reporters in Delhi, on Tuesday, that the situation would be back to normal in two to three weeks.
Imports of onions have begun arriving in India from its neighbour and rival Pakistan, officials say.As many as 13 truckloads carrying dozens of tonnes of onions had crossed the border at Wagah to supply northern Indian markets, a senior customs official in Amritsar told the Press Trust of India.
THE PROBLEM
Indian onion crops have been damaged by unseasonal rains in the bulk producing western states of Maharashtra and Gujarat and in southern states.
Prabhakar Bodke, a Maharashtra onion farmer was quoted saying -
"It is going to be hard for us till August or September next year unless the government steps in to ensure a good price"The Government indeed needs to take steps to help improve the condition and they need to do it quickly.
