Japan eyes big budget

TOKYO: The Japanese cabinet on Wednesday endorsed its first hike in the national budget in three years including a sharp rise in spending to build a missile defence programme. It is the first budget under prime minister Shinzo Abe, who has said his focus will be on stimulating growth and not the fiscal belt-tightening of his reformist predecessor Junichiro Koizumi. The cabinet approved a budget of $703 billion for the year beginning in April, the first rise in three years and a four per cent gain year-on-year. — AFP

US, Panama seal deal

WASHINGTON: The US said it had virtually wrapped up a FTA with Panama in what should be a major boost to bilateral commerce before the Panama Canal is expanded. The office of US trade representative said the pact was complete save for further talks on labour issues, which are gaining in trade prominence as the Democrats prepare to retake control of Congress next month. — AFP

Russia, EU ink pact

MOSCOW: Russia and the EU will sign an agreement to continue European meat imports to Russia from January 1, minister of Agriculture Alexei Gordeyev said on Tuesday, averting a threatened Russian import embargo on European meat. — AFP

Projects completion

MAKWANPUR: The five projects under the urban and environment programme currently being run in Hetauda Municipality with the support of the World Bank are at the final phase of their preparations. They include improvement in bus parks, solid waste management centre, sewerage construction, river control and improvement in drinking water facilities in the municipality. The World Bank is set to provide an amount worth Rs 250 million for these programmes. — RSS

Forex volatility in EU

BRUSSELS: Excess volatility in exchange rates can have a negative effect on economic growth, ECB president Jean-Claude Trichet said. “Excess volatility in exchange rates undermines growth,” Trichet said. The euro has recently risen sharply against the dollar to around $1.33. But ECB officials have declined to comment on the development directly. “All excess volatility in exchange rates is undesirable,” Trichet said. — AFP

BoE keeps rate steady

LONDON: Bank of England (BoE) policymakers voted unanimously to freeze British interest rates at a five-year peak of five per cent, minutes of their most recent meeting showed on Wednesday. All nine members of the central bank’s Monetary Policy Committee agreed to maintain the status quo on December 7, deciding against a third rate hike during 2006. The vote result tallied with analysts’ consensus forecasts. — AFP