Economy 'on fire' Down Under

Australia's economy sped ahead last quarter as a boom in business and government spending outstripped all expectations, reviving speculation interest rate could have to rise yet further to curb inflation.

IN BRIEF (Page 16)

Business International

Trichet forced into caution on rates

European Central Bank President Jean-Claude Trichet has made a habit out of telling investors what to expect on interest rates. Now markets are dictating the terms.

Wage drop hinders spending hike

Japan's wages fell at the fastest pace in three years, hampering an expansion in consumer spending.

Indian outsourcing is not a lost cause, at least it's not yet

A recent report looked at the finances of Indian computer-software companies through an unusual lens, examining what these superbly successful businesses might look like minus a favorable exchange rate.

Biz People

Akehurst gets bank position

IN BRIEF (Page 16)

Business International

'Cool hand Cayne' toughs out crisis

If Jimmy Cayne's card playing is any guide, don't expect the Bear Stearns chairman to make any rash or aggressive moves as the New York investment bank faces one of the worst crises in its history.

Retailer reports higher Q2 profit

Limited Brands Inc, the operator of Victoria's Secret and Bath & Body Works, on Wednesday (local time) posted a higher second-quarter net profit, helped by a $304 million gain from the sale of its Express apparel business.

Is it time for top CEOs to exercise a little pay restraint?

More than 100 US chief executive officers, including James Mulva of ConocoPhillips, Meg Whitman of EBay Inc and Jamie Dimon of JPMorgan Chase & Co, are sitting on unexercised-option paper profits of $6 billion, or $45 million each.