Today’s top stories from Report on Business :

Apple unveils the ‘iPad’

Apple Inc. AAPL-Q chief executive officer Steve Jobs today launched the iPad tablet, a device meant to fall between a smart phone and a laptop that can browse the Web and offer books, movies, games and other applications. “If there’s going to be a third category of device, it’s going to have to be better at these kinds of tasks,” Mr. Jobs said.

Apple is also launching an iBooks store. The iPad is 1.3 centimetres thick with a touch screen at 24.6 centimetres diagonally. A basic 16-gigabyte model will cost $499 (U.S.), and prices run to $829 for a 64-gigabyte 3G version. Read the story

Related : The iPod gives way

Fed holds rates steady

The Federal Reserve held interest rates near zero this afternoon and vowed again to keep them there for an “extended period,” but one member of the rate-setting panel is changing his tone. All in all, the U.S. central bank provided a more optimistic outlook for the economy, noting that activity is picking up and the “deterioration” in the jobs market is easing.

“Housing spending is expanding at a moderate rate but remains constrained by a weak labour market, modest income growth, lower housing wealth, and tight credit,” the Fed said.

Notable in the statement was the fact that one of the members of the committee, Thomas Hoenig, voted against, believing that “economic and financial conditions had changed sufficiently that the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted.”

TD Securities economics strategist Millan Mulraine said he saw nothing to change the bank’s projection for an interest rate hike until early next year but “given the objection of (Federal Reserve Bank of Kansas) president Hoenig to the continued use of the reference to keeping rates ‘exceptionally low’ for an ‘extended period,’ we believe that the Fed may perhaps begin tinkering with the wording of the statement to prepare markets for the eventual rate hike, though not necessarily at the next meeting.” Read the story

Toyota shares plunge

Toyota Motor Corp. shares fell in U.S. trading today and troubles related to an accelerator pedal problem spread to other companies. Shares of CTS Corp. CTS-N , supplier of the pedal, plunged, and stock in AutoNation and Group 1 Automotive also declined. Avis Budget Group, meanwhile, said it was removing 20,000 Toyota vehicles from its rentals. Toyota has recalled eight models and, in an unprecedented move late yesterday, halted sales to fix the pedals, prompting a suspension of production at six North American plants. CTS is based in Elkhart, Ind., and the problem part was manufactured at its plant in Mississauga, Ont., according to a report Toyota gave the U.S. National Highway Traffic Safety Administration last week. Read the story

Geithner denies AIG secrecy

Treasury Secretary Timothy Geithner today denied he played a role in withholding information about deals that sent billions of taxpayer dollars from the bailout of American International Group Inc. AIG-N to major banks. When President Barack Obama nominated the then-New York Fed chief, “I withdrew from monetary policy decisions … and day-to-day management of the New York Fed,” Mr. Geithner told a congressional panel. But his claims drew skepticism from members of the House Committee on Oversight and Government Reform. “Many people, including people of this committee, have a hard time believing Secretary Geithner entered into an absolute cone of silence,” said California Rep. Darrell Issa, the committee’s top Republican. Read the story

Japanese exports surge

Japan’s exports are surging but its growing dependence on China could hold that growth in check. Japanese exports rose 12.1 per cent in December – greater than expected and the first year-over-year increase since before the crisis. But that was largely due to the fact that more than half were bound for other Asian countries. Government data also showed that China has overtaken the United States as Japan’s leading export market, which could be an issue as China moves to cool its fast-growing economy. Economists told the Reuters news agency that change will have some impact on Japan but that its export growth will probably keep its economy moving.

Bankers warn on new regulations

Bank leaders attending the World Economic Forum warned today that new regulations governing financial institutions threaten to cripple the global recovery. At Davos, Peter Levene, the chairman of Lloyd’s, called for “good regulation, better regulation, but not more regulation,” while Deutsche Bank chairman Josef Ackermann warned that “the pendulum might have swung too far.” Bankers also warned of different countries adopting different rules, creating uneven playing fields across the globe. On the other side are those who believe even stronger regulation is needed. “Obama’s proposals on banking regulation are finally going in the right direction … but they are not enough,” said economist Nouriel Roubini. Read the story

ICBC curbs lending

China’s biggest bank said today it will no longer roll over some loans, though it stressed it was not halting lending. Reports from Beijing said the move by Industrial and Commercial Bank of China is the latest sign of the government’s campaign to curb credit growth. Given that Chinese companies tend to borrow for short periods, Reuters said, ICBC’s directive is tantamount to calling in loans. “ICBC will not rush to lend, nor will it stop lending,” ICBC said. “In the first 20 days of January this year, due to concentrated capital demand from ongoing projects, the bank’s credit offering was a bit fast but was still below that of the same period last year.”

From today’s Report on Business

Cheapest shipping route across Canada? Try the U.S.

N.B. Power CEO resigns amid spat over sale of assets

Obama steps up fight on deficit