Jet fuel prices cut by 3.7%

State-run oil companies have announced a slash of 3.7 per cent in prices of Aviation Turbine Fuel (ATF), the tenth reduction since September which comes into effect from last midnight.

ATF prices in Delhi were slashed to Rs 29,158 per kilolitre from Rs 30,288 per kilolitre. After this Rs 1,130 a kilolitre reduction, jet fuel is priced at early 2005 levels.



In country's financial capital Mumbai, ATF rates came down by Rs 1,191 per kl to Rs 29,985 per kl on Sunday.



ATF prices had peaked to Rs 71,028.26 per kl in Delhi in August 2008 on account of global crude oil prices touching historic high of 147 dollars a barrel. But they have since been slashed every month till October and twice in November.


State-run Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum revise ATF rates on the 1st and 16th of every month based on the average international jet fuel rates in the preceding fortnight

Europe hit by economic slowdown

European economies contracted in the fourth quarter of last year, with some countries registering the worst figures in decades, official data shows.

The eurozone economy shrank by 1.5% in the previous quarter and 1.2% on the year, Eurostat said.

Germany's economy shrank by 2.1% compared with the previous quarter, its worst quarterly performance since 1990.

France shrank by 1.2%, initial data shows, while Italy registered a drop of 1.8%, the steepest drop since 1980.

The data puts pressure on the European Central Bank to cut interest rates.

In the whole of 2008, the economy in the 15 countries using the euro grew by 0.7% against the previous year, Eurostat said. Slovakia joined the eurozone on 1 January 2009, making it a 16-country club.

The Dutch economy shrank 0.9% during the quarter while the Austrian economy eased by 0.2%, the first drop in nearly eight years. In the same quarter, Portugal's economy contracted by 2% on the previous quarter and 2.1% on the previous year.

"These are huge contractions in Europe, the largest in living memory in most cases," said Ken Wattret, economist at BNP Paribas.

Companies have cut investment and exports have dropped as the global recession has taken hold.

European companies hit by the slowdown include Air-France KLM, which reported a third-quarter operating loss on Friday, and Michelin, whose final-year profits fell as the crisis in the global car industry took its toll on the tyre maker.

The decline in demand for cars was further highlighted by data released on Friday.

The number of new cars sold in Europe in January was down 27% compared with January 2008, the European carmakers' association, Acea, said.

G7 pledges to avoid protectionism

Leading industrial countries have pledged to avoid protectionism as they battle the global economic crisis.

Finance ministers at a G7 meeting in Italy said raising barriers to free trade would make the downturn worse.

Hours earlier, the US Congress approved an $787bn economic recovery plan that includes a 'Buy American' clause.

G7 ministers said stabilising the world economy and financial markets was their priority. They said they would work together to support growth and jobs.

The 'Buy American' clause has raised fears that protectionism could be growing in the world's largest economy.

But in a statement after the meeting, new US Treasury Secretary Timothy Geithner dismissed such concerns.

"All countries need to sustain a commitment to open trade and investment policies which are essential to economic growth and prosperity," he said.

Ministers also called for urgent reform to the International Monetary Fund, saying the crisis had shown weaknesses in the world financial system.

"We agree that a reformed IMF, endowed with additional resources, is crucial to respond effectively and and flexibly to the current crisis," the ministers' statement said.

Other points included:

* Praise for recent economic moves by China;
* Help for banks; and
* The need for a speedy end to the Doha talks on world trade

The G7 comprises the US, the UK, Japan, Germany, France, Italy and Canada.

The BBC's correspondent at the meeting says it was billed as a meeting to discuss the broad issues of the economic crisis, not to decide major policy initiatives - and that's what it was.

Britain's Chancellor of Exchequer (Finance Minister), Alistair Darling, said it was a stepping stone to a meeting in London in April of the G20 group, which also includes big emerging economies such as China and India.

Japan's economy in quarterly dive

Japan's economy contracted by 3.3% in the last quarter of last year - its worst showing since the oil crisis of the 1970s, official figures show.

It comes as the country faces its worst economic crisis since the end of World War II, said Economic and Fiscal Policy Minister Kaoru Yosano.

The slowdown in the world's second-biggest economy is steeper than in the US or Europe.

Japan has been hit particularly hard by falling global demand for its products.

Exports, particularly of electronics and cars, have slumped and production has been slashed.

Consumers have cut back too, alarmed by rising unemployment.

Now the government has confirmed that in October to December last year Japan's gross domestic product fell by 3.3%.

It is the equivalent of an annual decline of 12.7% - the worst figures since the 1970s.

Worst since war

"This is the worst economic crisis in the post-war era. There is no doubt about it," Mr Yosano said at a news conference.

"The Japanese economy, whose growth is heavily dependent on exports of automobiles, machinery, and IT equipment, was literally battered" by the global downturn, he said.

He said the government would consider new stimulus measures to aid the economy.

"Japan alone won't be able to recover. The economy has no border. It is our responsibility to rebuild the domestic economy for other countries," he added.

Prime Minister Taro Aso is hampered in his response by a divided parliament and a fractious ruling party.

There were reports over the weekend that he is considering another stimulus package of government spending worth 20 trillion yen ($218bn; £152bn).

But the latest opinion poll has showed fewer than 10% of people support the prime minister, who must call a general election by September.