Hollingsworth Daily Post

• The US trade deficit was wider than expected in August, figures have shown, in the wake of record imports from China.US Commerce Department figures showed the gap between imported and exported goods grew by 8.8% to $46.4bn (£29bn).Imports from China grew 6.1% in August to a record $35.3bn. The US trade deficit with China also set a new record of $28.0bn.US exports to China remained essentially unchanged at $7.3bn.
• The US dollar has reached another fresh 15-year low against the Japanese yen at the end of trading in Tokyo.The dollar was worth as little as 81.12 yen at one stage, just above the post World War II low of 79.75 yen.The dollar's continued fall reflects speculation that the US Federal Reserve will expand its quantitative easing programme.But Japan's central bankers have also repeatedly threatened further action to curb the recent rises in the yen. A strong yen is hurting Japanese export companies, which are relied upon to spearhead a recovery in Japan's struggling economy.
• Mining company Rio Tinto says it has produced record quantities of iron ore in the past quarter, thanks to a surge in demand from China.47.6 million tonnes of the ore in the three months to September.China is continuing to import huge amounts of the ore for steel production.Rio Tinto's Australia-listed shares rose to a two-year high in response to the news.In London, its shares were up more than 1.5% in the first hour of trading.
• South Korea's central bank has kept interest rates on hold at 2.25% following its latest policy meeting.The decision came as a surprise as most economists had expected an interest rate rise to 2.5%.The Bank of Korea (BoK) had left the rate at a record low 2% for 17 months in response to the economic downturn, before raising it to 2.25% in July.The bank said it was not the right time to be raising the cost of borrowing in what is Asia's fourth-largest economy.
• More than one quarter of loans to Chinese local government are at risk of default, according to a report.About two trillion yuan ($300bn; £187bn), or 26% of the 7.66tn in loans to local authority financing vehicles, is at risk says state media.The figures, published in the official China Securities Journal (CSJ), were slightly higher than prior estimates which put 23% of these loans at risk.In 2009, banks lent heavily to regional financing vehicles for construction.
• Stationery and books chain WH Smith has reported better-than-expected profits - helped by a strong performance at its stores in airports, train stations and motorway service stations.Pre-tax profits were £89m in the year to 31 August, up 9% from last year.The profits rise came despite a 4% fall in like-for-like sales.At WH Smith's 516 stores at travel locations, profits increased by 10% after the retailer improved profit margins.
• All 50 US states have started a joint investigation into whether mortgage firms were wrong to repossess hundreds of thousands of homes.It follows allegations that the companies often mishandled documents when people behind on their mortgages had their houses taken from them.According to industry figures, more than 2.5 million US homes have been repossessed since December 2007.

BBC Business News 14 November 2010