Car production rose sharply during May

Japanese industrial output increased 5.9% in May compared with the month before, the third consecutive monthly climb, according to official data.

The rise last month was the same as April’s revised figure, though less than analysts’ forecasts of 6.9%.

The output of cars, mobile phones and electronic devices was particularly strong as firms started to reverse earlier cuts in stock levels.

But analysts predict output could slow again, as the world downturn continues.

“Production has been rebounding sharply in response to earlier drastic cuts but the momentum is likely to slow in the months ahead,” said Hirohi Watanabe, an economist at the Institute of Research.

Manufacturers predict industrial output to rise by a 3.1% in June and climb 0.9% in July.

Japan, which is heavily depending on exports, entered a recession in the second quarter of 2008.

Despite the recent rise, industrial output in May was about 30% lower than it was in the same month last year.

And the growth predictions for the next two months would still put output at more than 20% lower year-on-year.

Deflation worries

The latest industrial output figures showed car production rose by 24.8% in May from the month before, and electronic parts production increased by 10.5%.

Firms in both sectors had cut the number of shifts workers are doing in an attempt to lower inventory levels, but they are now beginning to reverse that trend.

However, according to separate data from Japan’s Automobile Manufacturers Association, auto production in May was still down 41.4% from a year ago at 542,282 vehicles.

Last week, Ministry of Finance figures showed prices in Japan fell by the most on record last month, raising fears of a new episode of deflation.

Consumer prices fell 1.1% in May from the same month a year ago, the most since records began in 1970.

Umpires: N J Llong, N A Malcolm, B C Broad, C E Mack
West Indies: Gayle (C), Morton, Sarwan, Chanderpaul, DJ Bravo, DM Bravo, Ramdin (W), Bernard, Taylor, Rampaul, Benn
India: Karthik, Gambhir, R Sharma, Yuvraj, Dhoni (C/W), Y Pathan, Jadeja, Harbhajan, Kumar, RP Singh, Nehra

Saturday night was probably one of the worst feelings I have had as a rugby player.

To lose the Test series a week early is devastating. It is up there with the biggest disappointments of my career.

There is nothing worse than that ’should have, would have, could have’ feeling. That is how we felt last week and it is exactly the same this week.

Sometimes you come off the field and think in all fairness, they were the better side. But on Saturday we felt we deserved at least a draw in the end, not just for the boys who played but all those in the squad who have worked so hard in the last five weeks.

In the dressing-room afterwards there was just silence for a good 25 minutes. There were guys just sat there still in their kit, devastated.

The Lions were left “devastated” after losing to the last kick of the game

‘Geech’ spoke to us and said he was really proud of us, but apart from that we just didn’t know what to do or what to say.

It was just a numb feeling really, as tough as they come.

I got a text from Gethin Jenkins later from the hospital, where he had to have surgery on his damaged eye socket, asking how much more we have to take this season.

We have lost to a late drop-goal with Wales in the Six Nations decider with Ireland, and in a semi-final penalty shoot-out with Cardiff Blues in the Heineken Cup.

And now a last-minute penalty to lose a Lions series. We haven’t had much luck really.

I haven’t seen it again on TV but I remember on the pitch thinking it wasn’t a penalty.

It looked pretty innocuous, one of those 50/50 calls, as if it was happening in slow motion.

I feel sorry for Ronan O’Gara. He is obviously down but no-one is blaming him.

As soon as the ref gave a penalty, I knew what was coming. I was stood next to Stephen Jones as Morne Steyn lined up the kick and Steve said ‘there is no way he is going to miss this’. It just seemed like fate really, as if we weren’t supposed to win.

The crowd had been chanting his name during the game and he came on and nailed a couple of great kicks.

I feel sorry for Ronan O’Gara. He is a great guy and I have total respect for him. He is obviously down but no-one is blaming him. We should have tidied up the game before then.

I felt it was a massive turning point when it went to uncontested scrums. The front five were getting a rest at each set-piece rather than having to work.

Losing four players to injury in that second half is always going to affect you and having boys playing in unfamiliar positions in the last 10 minutes of a game that tight is not ideal.

In the second half they had most of the ball, but when Jaque Fourie scored that final try, I always felt we would score again and get back to at least a draw.

Steve nailed a great kick from the touchline and I thought we had done enough. We felt quite comfortable, but you have to give credit to the Springboks. At critical times, they nailed their kicks and took their tries well.

The momentum did change after Bryan Habana’s try but it would never have happened if Brian O’Driscoll had not taken such a hell of a whack before that.

He banged his head first in the same incident where Gethin cracked his cheekbone as they both tackled Habana.

Brian carried on playing but didn’t really know where he was after that. For him to keep going was incredible.

BRYN PALMER’S BLOG Whichever word you use to sum up the feeling after an extraordinary second Test against the Springboks, it was a horrible way to lose the series.

I was rooming with him and he was tucked up in bed by the time I got back on Saturday night.

We just went back to our hotel and had a few beers, feeling sorry for ourselves. It was quite sombre really, as it felt like half the side were in hospital.

It still hasn’t really sunk in yet. We still have one game to go but we have lost the series.

We are heading off on safari to get away for a bit, which is ideal. Hopefully we will enjoy that and then probably come back to training on Tuesday.

We still have a huge Test coming up. Obviously a few boys will be ruled out with injuries but there are others who can come in and do a job.

It is still a Lions Test against South Africa and we will give everything we can to win.

Even though the series might be over, we have gelled so well on and off the field, no-one wants to be part of a whitewash.

Five out of nine local staff from the UK embassy detained in Tehran have been released, Iranian officials say.

Iran’s media earlier said local employees at the UK mission were held over their role in protests against June’s disputed presidential election.

UK Foreign Secretary David Miliband has dismissed the allegations as baseless.

Separately, Iran’s top legislative body began a partial recount of the poll - a move rejected by defeated opposition candidate Mir Hossein Mousavi.

“Out of nine people, five of them have been released and the rest are being interrogated,” Iranian Foreign Ministry spokesman Hassan Ghashghavi said at a news conference, state television Press TV reported.

Iran’s Intelligence Minister Gholam-Hoseyn Mohseni-Ezhei on Sunday said “the British embassy played a crucial role in the recent unrest both through its local staff and via media”, Iran’s Irna news agency reported.

“We have photos and videos of certain local employees of the British embassy, who collected news about the protests.

“The embassy sent staff among the rioters to direct them in order to escalate the riots so that the rioters could file fabricated reports about the [rallies] to the world from various locations,” the Iranian minister added.

Britain has protested strongly over the arrests, which have now been been confirmed by the BBC. Mr Miliband described them as “harassment”.

The British foreign office has not said what the four staff still in custody do at the embassy, but the BBC understands that one of them has the job of reviewing local news sources and keeping abreast of political developments, our Middle East editor Jeremy Bowen in Tehran says.

He says that none of the nine who were detained has dual Iranian-British nationality.

Despite the releases, the fact that some employees are still being held means the issue remains a serious problem for the UK, our editor adds.

On Sunday, the European Union warned Iran that “harassment or intimidation” of embassy staff would be met with a “strong and collective” response.

Iran has repeatedly accused foreign powers - especially Britain and the US - of meddling after the 12 June election.

The poll was won by a landslide by incumbent President Mahmoud Ahmadinejad, but his opponents said the victory was achieved by massive fraud. Some 17 people are thought to have died in subsequent street protests.

In the fallout from the crisis, Tehran has expelled two British diplomats and the UK has responded with a similar measure.

However, Mr Ghashghavi said on Monday that “there is no plan at the moment to close any embassy or downgrade ties with them”.

Some 17 people are thought to have died in street protests after the disputed presidential poll, which the opposition complains was rigged.

At least 1,000 opposition supporters are reported to have staged a noisy rally outside a mosque in Tehran on Sunday evening before it was broken up by police and militia.

Riot police used tear gas and clubs to disperse the crowd outside the Ghoba Mosque, Iranian eyewitnesses said.

The report could not be independently verified because of reporting restrictions on foreign media.

Poll verdict due

In a separate development, Iran’s state TV said the recount had started on Monday in the capital Tehran as well as in the provinces.

Iran’s Guardian Council has offered to recount a random 10% of the votes from the election.

The process was expected to be completed later on Monday and the result would be announced shortly afterwards, al-Alam television said.

But Mr Mousavi insists the poll was rigged and therefore should be annulled.

On Sunday, Mr Mousavi met members of a committee set up by the Guardian Council to examine the disputed poll, Iran’s semi-official Fars news agency reported.

It said Mr Mousavi was expected to present his proposal on the issue, without giving any further details.