Economist - Biz this week

HSBC confirmed that it is in talks to take a majority stake in Dar Es Salaam Investment Bank of Iraq. Iraq had banned foreign banks for 35 years.

It was reported that US Airways and America West Airlines were close to finalising a planned merger. The deal is seen as vital to keeping US Airways afloat. Since 2001 it has twice sought bankruptcy protection.

Air France KLM posted its first full results as a merged company. The airline made a net profit of €351m ($445m) for the year ending March 31st.

Toyota confirmed plans to build its first gas-electric car outside Japan. Around 48,000 Camry hybrids will be made in the first year of production, starting in late 2006, at its plant in Kentucky.

America's commerce secretary, Carlos Gutierrez, said that an investigation into the surge of textile imports since the start of the year had concluded that quotas should be reintroduced on trousers, shirts and underwear from China. The quotas are expected to start at the end of May, before negotiations.

Japan's GDP grew at an annualised rate of 5.3% in the three months ending on March 31st. The increase beat most forecasts, and was explained by a rebound in private consumption, up 1.2% from the last three months of 2004.