Change of world economy and Super Powers... Predictions!

China and Japan plan direct currency exchange agreement

China has been pushing for the yuan to become an alternate reserve currency along with the US dollar for a while. China and Japan have unveiled plans to promote direct exchange of their currencies in a bid to cut costs for companies and boost bilateral trade.

The deal will allow firms to convert the Chinese and Japanese currencies directly into each other.

Currently businesses in both countries need to buy US dollars before converting them into the desired currency, adding extra costs. It is the latest step by China as it seeks a more global role for the yuan.

"Given the huge size of the trade volume between Asia's two biggest economies, this agreement is much more significant than any other pacts China has signed with other nations," Ren Xianfang of IHS Global Insight was quoted as saying by the Bloomberg news agency.

China is Japan's biggest trading partner. According to the Japan External Trade Organization, trade between the two countries stood at 26.5tn yen ($339bn; £218bn) in 2010. For more details please click here...

Brazil economy overtakes UK, says CEB

A large part of Brazil's economy relies on the production of commodities

Brazil has overtaken the UK as the world's sixth largest economy, an economic research group has said.

The Centre for Economics and Business Research (CEBR) said its latest World Economic League Table showed Asian countries moving up and European countries falling back.

The CEBR also predicted that the UK economy would overtake France by 2016.

It also said the eurozone economy would shrink 0.6% in 2012 "if the euro problem is solved", or 2% if it is not.

CEBR chief executive Douglas McWilliams told BBC Radio 4's Today programme that Brazil overtaking the UK was part of a growing trend.

"I think it's part of the big economic change, where not only are we seeing a shift from the west to the east, but we're also seeing that countries that produce vital commodities - food and energy and things like that - are doing very well and they're gradually climbing up the economic league table," he said. For more details of this story click here...

Current top ten best world economies...

Samsung buys Sony's entire stake in LCD joint venture

Sony's TV business has been hurt by slowing global demand and a strong Japanese currency. Samsung Electronics has agreed to buy out Sony's entire stake in their liquid crystal display (LCD) joint venture. The Korean electronics maker said it will pay Sony 1.08tn won ($939m; £600m) in cash for its stake. The move comes as Sony has been restructuring its TV business, which has been making a loss for the past seven years.

Samsung, meanwhile, has gone on to become the world's largest maker of TVs and flat screen panels. "Under the agreement, Samsung will acquire all of Sony's shares of S-LCD Corporation, the two companies' LCD panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung," Samsung Electronics said in a statement. For more details on this story click here...