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Boosted by strong results from its retail-banking business, BNP Paribas S.A.'s second-quarter profit rose 31% to 2.1 billion euro from 1.6 billion euro a year ago. Revenue increased 12% to 11.2 billion euro.

According to Societe Generale S.A.'s chief executive Frederic Oudea, the new tax on banks proposed by European countries could hinder their economic recovery. Societe Generale will concentrate on lower-risk investments and growth through acquisitions in Eastern Europe.

Daimler AG, Renault S.A. and Nissan Motor Co. signed an agreement to jointly develop small cars and technology to improve fuel efficiency. The deal will lower the car markers' development costs while allowing them to expand outside their home markets more efficiently. Renault and Nissan will each acquire a 1.55% stake in Daimler, while Daimler will buy 3.1% of each Renault and Nissan.

Renault S.A. had plans to switch production of its Clio subcompact car to Turkey, but after a meeting with French President Nicolas Sarkozy, the car maker agreed to continue production of the model at the Flins plant near Paris. The French government has a 15% stake in Renault.

PSA Peugeot-Citroen and Mitsubishi Motors Corp. are discussing a partnership -possibly a capital tie-up- to further growth in their home markets and abroad. The companies are expected to collaborate in developing Mitsubishi's electric-vehicle technology, a potentially profitable segment.

After much prodding from the Russian government, Renault S.A. will participate in a 2-billion-euro aid package to rescue ailing Russian car maker OAO AvtoVAZ. Renault is not providing cash but technology and production machinery to help the Russian company develop a new entry-level vehicle. Renault has a 25% stake in AvtoVAZ.

Renault S.A., Nissan Motor Co. and the government of France will invest 600 million euro to form a joint venture to develop and manufacture electric-vehicle batteries. Production will start in mid 2012 and reach 100,000 units a year.

Jean-Dominique Senard, non-general managing partner of Cie. Generale des Etablissements Michelin, discusses how Michelin's future earnings and global tire demand are directly liked to GDP in major economies. Mr. Senard expects tire demand to remain sluggish in the near future although Michelin's production capacity has increased to 70% from a low of 30% earlier this year.

BNP Paribas S.A. will sell 4.3 billion euro in shares to raise funds to buy back a stake taken by the French government as collateral for bailout loans. The bank will repay 5.1 billion euro and 226 million in interest. Separately, UniCredit S.p.A. announced plans to raise 4 billion euro to shore up the bank's balance sheet.

After meeting with labor union representatives, tire manufacturer Michelin S.A. is expected to announce job cuts. A slump in automobile sales has affected Michelin's net profit which dropped 54% to 357 million euro in 2008. The company's first-quarter sales for this year dropped 14% to 3.5 billion euro.

Write-downs stemming from bad loans caused Societe Generale S.A. to report a first-quarter net loss of 278 million euro compared to a profit of 1.10 billion euro a year earlier. Standard & Poor's downgraded Societe Generale and reduced the bank's credit rating. Societe Generale increased first-quarter provisions to 1.35 billion euro from 598 million euro a year earlier.

Byline: YUKA HAYASHI AND SEBASTIAN MOFFETT; Miho Inada in Tokyo and Sudeep Reddy in Washington contributed to this article. TOKYO -- A week before its central bank governor steps down, [...]

Iron ore prices may go up as mining giants renegotiate their contracts. Brazilian firm Companhia Vale do Rio Doce S.A. obtained a 65% increase in price for its iron ore from steelmaking producers in South Korea and Japan, and Rio Tinto PLC has indicated it too might seek an increase. Rio Tinto is currently the focus of a $140 bil takeover bid by mining firm BHP Billiton Ltd. Together, Vale, Rio Tinto, and BHP supply over 70% of exported iron ore worldwide.

Japan's Fair Trade Commission and the European Union have together launched informal discussions as to whether a merger between Australian mining firms BHP Billiton Ltd. and Rio Tinto Ltd. would create an entity with excessive power over iron ore prices. BHP has sweetened its offer for Rio Tinto with an all-stock bid valued at $147.4 bil; however, Rio Tinto's board rejected it.

The credit market problems stemming from US subprime mortgage lending may only have a modest affect on Asia, according to analysts, due to Asia's lessening dependence on the American economy. Examples include growing investments in Indonesia's domestic markets and China's expansion of exports to countries other than the US.

Renault S.A. and Nissan Motor Co. are working to develop and produce a low-cost vehicle for the rapidly emerging market in India. The car, which would sell for approximately $3,000, is expected to help pull the two automakers out of a recent slump in sales.

The Bank of Japan is expected to announce a new monetary policy. The Central Bank has been successful in halting falling prices and is expected to offer a policy that successfully regulates interest rates and the money supply for increased economic growth. The Bank of Japan has a history of inconsistent economic policy decisions over the past 20 years.

Japan's Prime Minister Junichiro Koizumi is reforming the post office bank that has been traditional Japanese infrastructure. The post office had the role of supporting the less wealthy countryside, the economic policy is at the root of current elections.

Mitsubishi Heavy Industries Ltd. of Japan is considering acquiring Westinghouse Electric Corp. of the United States to strengthen its role as a builder of nuclear-power plants. The acquisition is worth approximately 200 billion Yen or $1.8 billion. The United States government is wary over energy independence with foreign corporations making bids for United States energy businesses.

The labor force of Japan is shrinking as the population decreases so last year a retirement age law was passed requiring Japanese companies by 2013 to hire those up to 65 years or rehire their retiring employees. This problem of a shrinking workforce is also an international concern, particularly in Italy and Germany.

Having much experience in dealing with tsunamis, Japan wants to be at the forefront of development and implementation of a tsunami early-warning system.

Poor international organization and communication were responsible for the high number of deaths and injuries from the Indian Ocean tsunami.

Crippled by consistently low prices for consumer goods and real estate, the Japanese economy has struggled with the effects of deflation for the past six years. However, with consumer spending apparently on the rise, the country seems to be seeing deflation stabilize, leading to predictions that economy is headed out of the dark economic days that have plagued it.