Gold’s rally to a record may be related to investors seeking to protect themselves from a government defaulting on its debt rather than inflation, according to economists at Fathom Financial Consulting, Bloomberg reported. Gold’s advance of about 35 percent this year suggests the metal may be in a “micro-bubble” even though it’s hard to argue that there is a generalized asset bubble forming in the world economy, the London-based consultancy said.

Japan passed into law Monday a conditional moratorium on loan repayments by small businesses and home owners, a move that opponents say may lead to an increase in bad loans on the books of the country's banks, The Wall Street Journal reported. The bill, which has been in the works since the Democratic Party of Japan came to power in September, was passed by the upper house of Japan's parliament on Monday, according to a spokesman at the Japanese banking regulator the Financial Services Agency.

The cost of taking a stake in embattled Japan Airlines Corp might weaken the credit strength of AMR Corp, but the parent company of American Airlines would have more to lose if it allowed JAL to slip into an alliance with other carriers, Reuters reported. At stake is a share of JAL's lucrative Asian routes. Delta Air Lines and its SkyTeam partners have offered more than $1 billion to persuade JAL to defect from the rival Oneworld alliance.

Kangaroo Island Abalone has received a State Government grant of $270,000 to upgrade electricity infrastructure at its east farm, The KI Islander reported. The farm has been run solely on diesel generated power since 2005 and general manager Justin Harman said the new infrastructure could halve the company’s annual diesel fuel bill for that farm. The company spends about $250,000 a year on diesel. The innovative new system will connect the farm to the main electricity grid but have the capacity to disconnect it when the load reaches network limit on Kangaroo Island.

Newfoundland and Labrador Refining Corp., the Canadian company planning to build a C$4 billion ($3.8 billion) oil refinery on the country’s east coast, won a judge’s approval to exit bankruptcy and find a buyer or a partner for the project within two years, Bloomberg reported. Newfoundland Supreme Court Judge Robert Hall dismissed objections from BAE Newplan Group Ltd., a unit of SNC-Lavalin Group Inc., and Japan Steel Works Ltd., Kobe Steel Works Ltd. and IPS Services Inc., who had sought to have the Canadian company declared bankrupt.

Shares of Japan Airlines Corp. slid to a record low on Tuesday on growing investor worries that Asia's largest airline by revenue could face bankruptcy as it struggles to agree pension cuts, Reuters reported. The slide was also fuelled by news that trading house Mitsui & Co sold all its 11.7 million JAL shares, raising speculation other shareholders would follow suit.

In a related story, Japan Airlines said Tuesday it obtained government approval to receive up to $1.1 billion in emergency loans aimed at preventing the money-losing company from grounding flights, The Associated Press reported. JAL signed an agreement with the state-run Development Bank of Japan after receiving government approval, a company official said on condition of anonymity, citing policy. Asia's largest airline has pressed for a government bailout and mulled over massive job cuts and other restructuring steps to avoid collapse.

Japan's Minister of Land, Infrastructure, Transport and Tourism announced Tuesday that ailing Japan Airlines Corp., the nation's top carrier, can turn itself around despite share prices plummeting in recent weeks, Xinhua reported. "I still believe JAL can definitely rebuild itself if it carries out drastic restructuring, reviews its routes, replaces aging aircraft, and resolves the pension issue," Maehara said in a statement to the press on Tuesday.

Struggling carrier Japan Airlines Corp plans to propose cutting pension payments to its employees and retirees by an average of roughly 40 percent, a Japanese newspaper said on Saturday, Reuters reported. JAL President Haruka Nishimatsu will present the proposal at a meeting with retirees in Tokyo on Monday, the Mainichi Shimbun said without citing any sources. Whether the company will gain the support of at least two-thirds of its former employees needed to carry out such cuts to pension payments is unclear, Mainichi added.

Japan's transport minister said Friday that he hasn't heard from AMR Corp.'s American Airlines on the airline's intention to provide financial support to struggling carrier Japan Airlines Corp., Dow Jones reported. "No, we haven't (heard from American Airlines) ... There is no change in our policy to support JAL while (the Enterprise Turnaround Initiative Corp.) is implementing assessment of JAL's assets," Seiji Maehara, Japan's Minister of Land, Infrastructure, Transport and Tourism, said at a regular press conference. JAL has been talking to both American and Delta Air Lines Inc.