China's overseas investment nearly triple in Q3

China's overseas investment in non-financial sectors nearly tripled in the third quarter from the same period last year, the government said Tuesday, as the Asian giant rebounded from the global crisis. Investment in mining, manufacturing and other non-financial sectors reached 20.5 billion dollars from July to September, up 190.4 percent on- year, the commerce ministry said in a statement on its website. That compared with a total of 32.9 billion dollars pumped into overseas non-financial sectors in the first nine months of 2009 , an increase of 0.5 percent on the same period a year ago, it said.

Dollar world's strongest currency: Japan ministar

Japan's finance minister said Tuesday that the dollar was still the world's strongest currency and it was natural for Tokyo to keep large stockpiles of the greenback. "It is clear that the dollar is still the world's strongest currency," Finance Minister Hirohisa Fujii said at a press conference. "It is a matter of course that the country keeps its foreign exchange reserves in a strong currency." This in turn "also supports the dollar," he added. Japan has the world's second-largest forex reserves after China. Tokyo gives no breakdown of the currencies, but most are believed to be held in dollars as a result of past intervention to sell the yen against the greenback. Fujii said countries should not seek to artificially weaken their currencies to boost the competitiveness of their exports, but also reiterated that he was not necessarily in favour of a stronger yen.

World's biggest cruise ship offers activity extravaganza

The world's biggest and most expensive cruise ship ever built, Oasis of the Seas, is to be handed over to the Royal Caribbean cruise line today at the Finnish shipyard where it was constructed. At a cost of some 900 million euros (1.3 billion dollars), the mammoth vessel offers a world of luxury and a plethora of on-board activities for its 6 ,360 passengers and 2 ,000 crew. STX Finland, a subsidiary of South Korean shipbuilder STX, will hand over the vessel to the US-based cruise company at a ceremony in Turku today, and the ship will set sail on its four-night maiden voyage from the US port of Fort Lauderdale to Haiti on December 1. Royal Caribbean has called the ship its "most innovative and imaginative ship yet, (where) entertainment areas have become neighborhoods at sea." Catering to the traditional older crowd of cruise ship travellers as well as to young families, the Oasis of the Seas aims to be more of an activity centre than a traditional cruise ship that merely sails from port to port.

Indian's jet airways reports loss, shares plummet

Jet Airways, India's second-biggest domestic airline, reported Tuesday a second-quarter net loss blamed on low air traffic, a strike by pilots and overcapacity. The airline posted a net loss of 4.06 billion rupees (88 million dollars) for the quarter ending September, from a loss of 3.84 billion rupees a year earlier. Jet shares fell 36.4 rupees or 9.05 percent to 365.8 on the Mumbai stock exchange on Tuesday. "The company suffered losses mainly from lower yields, due to intense competition and overcapacity," Jet executive director Saroj Dutta said in a statement to the Mumbai stock exchange. Revenues for the quarter fell 25 percent to 23.2 billion rupees. Jet said disruptions in September due to a pilots' strike also contributed to the losses. Jet's pilots went on a five-day walk-out, taking mass sick leave after the management sacked two senior pilots for setting up an unrecognised trade union. Thousands of Jet customers were forced to change their travel plans in one of the biggest aviation disruptions in India in recent years, affecting hundreds of domestic and international services.

Oil higher

Oil prices rose slightly on Tuesday as traders paused for breath after sharp falls the previous day and kept an eye on a strengthening dollar. New York's main contract, light sweet crude for delivery in December, added nine cents to 78.77 dollars a barrel. Brent North Sea crude for December rose 12 cents to 77.38 dollars in early London deals. Crude oil fell sharply on Monday as the dollar rose and on expectations of easing violence in Nigeria, whose crude production has been ravaged by militant attacks. The New York contract 1.82 dollars and London Brent tumbled 1.66 dollars on Monday.

Asian market tamble

Asian markets tumbled on Tuesday as a heavy fall on Wall Street overnight caused nervousness among investors ahead of a slew of corporate results, while a stronger dollar hit commodities firms. Tokyo fell 1.45 percent, Hong Kong 1.86 percent and Sydney 1.59 percent. The biggest loser of the day was Shanghai, which dumped almost three percent. Mumbai fell 2.31 percent on fears interest rates will go up soon despite the central bank keeping them at record lows on Tuesday. TOKYO: Down 1.45 percent. The Nikkei-225 fell 150.16 points to 10 , 212.46. HONG KONG: Down 1.86 percent. The Hang Seng Index finished 420.14 points lower at 22 , 169.59. SYDNEY: Down 1.59 percent. The S&P/ASX 200 slipped 76.8 points to 4 ,753.5. SHANGHAI: Down 2.83 percent. The Shanghai Composite Index, which covers both A and B shares, fell 88.11 points to 3 , 021.46. SEOUL: Down 0.46 percent. The KOSPI lost 7.58 points at 1 , 649.53. TAIPEI: Down 0.14 percent. The weighted index fell 11.06 points to 7 , 657.34. SINGAPORE: Down 0.81 percent. The Straits Times Index fell 22.12 points to 2 , 694.50. BANGKOK: Up 0.38 percent. The Stock Exchange of Thailand rose 2.71 points to close at 714.54. KUALA LUMPUR: Flat. The Kuala Lumpur Composite Index edged up 0.38 points to 1 ,260. 30. JAKARTA: Down 1.72 percent. The Jakarta Composite Index lost 42.51 points to 2 , 425.20. MANILA: Down 0.20 percent. The composite index fell 5.79 points to 2 , 935.74. MUMBAI: Down 2.31 percent. The 30- share Sensex fell 387.1 points to 16 ,353.4.

Shanghai luxury hotel market heats up

The world's leading luxury hotels are rushing to expand in Shanghai ahead of next year's World Expo, with hopes high for the upscale travel sector in the Chinese financial hub despite the global downturn. The opulent Peninsula, the only new building on the main part of Shanghai's historic Bund in 60 years, just opened, embracing the city's Jazz Age heyday with a chauffeur-driven 1934 Rolls Royce Phantom and a Great Gatsby-esque pool. The Peninsula's owner, Hongkong and Shanghai Hotels Limited, is making a return to the "Paris of the East" where it was founded after a 60- year absence, but it is facing stiff competition. Ritz Carlton is building a second hotel here, Hyatt already has three landmark properties and Shangri-La is expanding from one to four hotels. Conrad, Jumeirah, Waldorf Astoria and the legendary Peace Hotel -- managed by Fairmont -- are all also preparing to enter the fray, with work done or nearly completed on each property. "Is it madness?" asked Graham Kiy, general manager of the two-hotel Zendai complex designed by star Japanese architect Arata Isozaki. A member of the Leading Hotels of the World, the complex is due to open in September 2010. "The luxury travel sector itself has always been less affected by economic downturns. Luxury travel is a little bit down, but not as depressed as the three-star and four-star sectors," Kiy said. He said occupancy at five star hotels was currently at 50-55 percent overall, rising to 60- 65 percent at hotels with better locations. The surge in luxury hotel openings -- which will add nearly 3 ,900 five-star rooms -- is linked to Expo 2010 , which Shanghai will host next year. Seven million visitors, most of them Chinese, are expected to flood into the city. "We're sure Expo will bring benefits to Shanghai in terms of visitors and media attention, but 2011 will be tough because there will be an oversupply of luxury hotels," Kiy said. China has weathered the economic crisis better than any other travel market, said Philip Ho, Asia Pacific vice president for Leading Hotels of the World, whose latest property, the PuLi Hotel and Spa, just opened in Shanghai. He points to research his company conducted earlier this year indicating that while globally more than 40 percent of people had cancelled vacations due to economic constraints, only 15 percent had done so in China and Hong Kong. Fifty percent of Chinese and Hong Kong respondents to the luxury firm's survey said they would not change their travel habits due to the downturn and nearly 80 percent said they would not downgrade from five-star hotels. "While the world has gone into a recession, China has not gone into a recession," Ho said. The number of high net worth individuals in China surpassed the number in Britain last year to become the fourth largest in the world, according to research published by Merrill Lynch this month. China passed France in 2007. China now has more than 364 ,000 people with more than one million dollars in liquid assets, the investment bank said. That is a key figure for the luxury hotel sector, executives say -- and one that puts them at ease. "China's a very big market and there's a place for everybody and everything," said the Peninsula's general manager Paul Tchen. "With our arrival, we're providing another option ... Choice itself is a luxury."

Profits soar at China's Baidu.com

China's leading search engine company Baidu has reported a sharp
increase in profits but warned revenue would be hit by moving to a
new advertising system. The warning sent the firm's shares more than
10 % lower in after-hours trading in New York. Net income between July
and September came in at 492.9 m yuan ($72.2 m; £44.1 m), up almost
40 % on the 350 m yuan recorded in the same period last year. Baidu
has more than 60 % of the China's search engine market. It plans to
phase out its current advertising system and replace it with a new
Phoenix Nest system later this year. "We feel that in the first
quarter there will be a material impact from the switch," the company
said. But analysts said the new system would benefit the firm in the
long run. "It is just short-term pain, the long term fundamentals of
the company are still strong," said Dick Wei at JP Morgan.

Copier sales slide knocks Canon

Canon has announced a fall in profits of more than 50 % despite
digital camera sales holding up well in the downturn. The company is
blaming a 22 % drop in overall sales on a reduced demand for new
photocopiers. Net profit between July and September was 36. 7 bn yen
($399 m; £244 m), down by 54 % on the 83 bn yen the company made in
the same period last year. Meanwhile, Toshiba says it expects to earn
a first-half operating profit thanks to cost cutting. The Japanese
technology giant is expecting to have earned an operating profit of 2
bn yen in the six months to September, instead of a previously
forecast loss of 30 bn yen. Toshiba says it has cut costs in its
microchips, digital media and power systems operations. The company
now expects its annual net loss to be about 58 bn yen, 28 % smaller
than a previously forecast loss of 80 bn yen. Toshiba is due to
announce its full interim results on Friday.

Honda profit hit by falling sales

Honda's profits for the July to September period more than halved
after car sales continued to fall during the global economic
downturn. Net profit came in at 54 bn yen ($587 m; £359 m) for the
quarter, down 56 % on the 123.3 bn yen recorded a year earlier.
Japan's second-largest carmaker said the strong yen had contributed
to a fall in sales in overseas markets. But the fall in profits was
less than had been expected, and the carmaker tripled its full-year
profit forecast. Honda says it will now make a net profit of 155 bn
yen for the year to the end of March, up from its previous forecast
of 55 bn yen. It also raised its full-year sales forecast, to 3.4
million cars from 3.29 million cars. Despite the increase in
projected future sales, revenue in the third quarter fell by 27 %
from a year ago. This was largely due to falling car sales in
overseas markets. Sales in Japan have been less affected, largely due
to government tax breaks and incentives on hybrids such as the new
Honda Insight. "Honda's numbers came in a bit better than forecast
and the biggest factor seems to be the year-on-year reduction in
production costs," said Andrew Phillips at KBC Securities.

Wind turbine maker's profits soar

Vestas, the world's largest wind turbine maker, has reported a big
jump in quarterly profits after increasing deliveries of turbines.
Net profit for July to September came in at 165 m euros ($246 m; £150
m), up 70 % on the 97 m euros recorded a year ago. Revenue rose to
1.81 bn euros from 1.76 bn euros a year ago. Vestas workers staged a
sit-in protest at its site in the Isle of Wight this summer, after
the firm shut the factory there with the loss of 425 jobs. Improving
prospects Vestas also reiterated its full-year sales forecast on
expectations of further new orders. It added that "market prospects
are beginning to improve". The results were better than analysts had
expected and shares in Vestas rose 8.5 % in Frankfurt. "Both the
third quarter and their expectations are extremely positive," said
Christian Nagstrup at Jyske Bank.

US consumer confidence takes hit

US consumer confidence fell sharply and unexpectedly in October as
fears about future job prospects increasingly preyed upon Americans.
The closely-watched Consumer Confidence Index from the Conference
Board business organisation slipped to 47.7 from a revised 53.4 in
September. Analysts were expecting the index to be unchanged or even
to rise slightly. Separately, a leading US index has found that house
prices rose by more than expected in August. Spending fears The
disappointing consumer confidence figures hit US shares, with the Dow
Jones index down by 24 points, or 0.2 %, at 9843.93 soon after the
figures were released. Rising unemployment played a "major role" in
knocking confidence, the Conference Board said. Figures released
earlier this month showed that the US jobless rate rose to a fresh
26- year high in September of 9.8 % The figures also cast doubt on
how strong Christmas holiday spending will be this year. "Consumers
remain quite pessimistic about their future earnings, a sentiment
that will likely constrain spending during the holidays," said Lynn
Franco, research director at the Conference Board. Consumer spending
accounts for about 70 % of overall economic activity in the US, so
weak spending in the run up to Christmas could have serious
implications for the US economy. An index reading of 90 in the
Confidence Index is the minimum to indicate a healthy economy. Tax
credits However, there was better news from the US property market.
The Standard & Poor's/Case Shiller Home Price index rose by 1.2 % in
August compared with July, although prices remained 11.4 % lower than
in August 2008. But analysts were not getting carried away by the
figures, suggesting that some of the recent rises in house prices
could be down to temporary tax credits. "The picture so far is that
prices have bottomed and are beginning to revive on a broad basis,"
said Pierre Ellis at Decision Economics. "The question is whether it
will be sustainable with a lack of employment growth and the
potential expiration of the first-time home buyer credit."