Foreign Briefs
Eurozone industrial production dips 0.4%
Official figures show that industrial production across the 17 European Union countries that use the euro fell by 0.4% in January. Eurostat, the EU's statistics office, added Tuesday that production for durable consumer goods in the eurozone fell by 1.4%, with capital good manufacturing dropping by 1.2%. Among the eurozone member countries that reported production figures, Germany registered a 0.4% decline, France a drop of 1.2% and Finland a fall of 4.1%. The 17-country eurozone is currently stuck in a recession and is not expected to recover until the latter part of this year. Unemployment in the region is at an alltime high of 11.9%. Industrial output across the wider 27-member EU also fell by 0.4% for January, Eurostat added.
Panel says no cover-up attempt by Japan nuke plant
An independent panel says the operator of Japan's tsunami-crippled nuclear plant misinformed investigators and blocked inspection of key equipment last year, but that there was no cover-up attempt. The case involves a parliamentary probe of equipment at the Fukushima Daiichi nuclear plant's Unit 1 reactor. A member of the investigative team said investigators had to scrap an inspection of the reactor's emergency cooling equipment, accusing plant operator Tokyo Electric Power Co. of falsely saying the building was dark and dangerous. After the incident caused an outcry from lawmakers and the public, TEPCO commissioned a panel to look into the matter. On Wednesday, the panel attributed the problem to a TEPCO official's misunderstanding of the situation at Unit 1, and said TEPCO wasn't trying to hide the equipment from the inspectors.
Zara owner Inditex sees 2012 net profit up 22%
Spanish clothes retailer Inditex, which owns the Zara store chain, has posted a 22% increase in net profit in 2012 thanks to growth in eastern Europe and in online sales in Canada and China. Inditex said Wednesday that profit for last year grew to €2.36 billion ($3.08 billion). Sales were up by 16% to €15.9 billion. The company opened 482 stores in 2012, making for a total worldwide of 6,009. It said it also planned to open a Zara online store in Russia before the end of 2013. Founded in 1975 by Amancio Ortega, Inditex operates eight brands including Massimo Dutti, Bershka, Pull & Bear and Oysho. Inditex's shares were down 3.3% at €104.85 in morning trading in Madrid.
Commerzbank to raise €2.5 billion in new capital
Germany's Commerzbank says it will raise €2.5 billion by issuing new shares and repay part of the government support it got when it was bailed out. The country's No. 2 lender said Wednesday that the share issue would let it repay government holdings known as silent participations. That will reduce the stake held by a government agency from 25% to 20%. Commerzbank head Martin Blessing said the bank was repaying the state holdings over which it had control ahead of schedule. Commerzbank needed government help during the financial crisis that followed the collapse of US investment bank Lehman Brothers in 2008. It has since struggled with losses on government bonds and is winding down its ship finance and commercial real estate businesses.