Japan in surprise economy boost

Industrial output in Japan rose in March for the first time in six months, according to government figures.

Production rose by 1.6% in March compared with February, after months of dramatic decline.

The larger-than-expected increase is being seen as a sign that the country's plunge in production and exports may be nearing an end.

The world's second biggest economy has been hit hard by the global downturn, sliding into a sharp recession.

These are grim times for Japan's economy but the latest figures from the government show a small improvement.

But the new figures are a sign that the strategy of Japan's manufacturers - to mothball production lines, reduce shifts and lay off staff - may be working.

With stockpiles of unsold goods diminishing some factories are starting to come back to life.

Japan has been hit badly by the downturn because worldwide demand has collapsed for its cars and electronics.

The increase follows figures earlier this month showing that exports have also risen slightly, although shipments are still running at just over half the levels of a year ago.

A government survey of manufacturers showed they expect industrial production to continue to rise, by 4.3% during April and by 6.1% in May.

Chrysler approaches key deadline

Chrysler is just hours away from a deadline that could force it to file for bankruptcy protection.

Continuing efforts to restructure the business focus on persuading its main lenders to write off its debts, but reports say these talks have stalled.

Chrysler is also continuing discussions to form an alliance with Fiat, another key demand of the US government.

President Barack Obama said Chrysler could emerge stronger afterwards if a bankruptcy filing proved necessary.

"It would be a very quick type of bankruptcy and they could continue operating and emerge on the other side in a much stronger position," he said.

Government assistance

The US government has told the carmaker it would be given a further $6bn (£4bn) of vital state loans if the restructuring is completed by 30 April. So far Chrysler has managed to persuade its main union to back the restructuring and agree a cost-cutting deal.

The sticking point remains whether the carmaker can persuade its main lenders to accept $2bn in cash in exchange for writing off all of Chrysler's $6.9bn secured debt.

The company, the smallest of the US "Big Three" carmakers after General Motors (GM) and Ford, secured a $4bn loan from the US government in January, and has since gained $500m more.

GM has also received multi-billion government loans. While Ford has yet to require any money, the government has agreed to give it financial support, should it be needed.

All three firms have seen sales slump in their home market as the recession has intensified.

Rupee bounces back by 47 paise vs dollar

The Indian rupee on Wednesday bounced back by 47 paise to close at 50.04/05 against the dollar, in the midst of firm equity markets and a weak US currency overseas.

Fresh capital outflows amid dollar selling by foreign banks also helped the rupee recovery.



At the Interbank Foreign Exchange (Forex) market, the local currency resumed higher at 50.26/28 a dollar and moved up further to settle the day at 50.04/05, a rise of 0.93 per cent over its previous close of 50.51/52 per dollar.



It moved in a range of 50.04 and 50.30. In the last two sessions, the rupee had dropped by 71 paise or 1.43 per cent.



A sharp recovery in the Indian equity markets mainly helped the rupee rise.



The dollar's weakness against its major rivals also boosted rupee sentiment, a forex dealer said, adding that foreign banks were seen selling dollars on expectations of further fall in the American currency.