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The Chinese government has approved an application from Walt Disney to build a theme park in Shanghai, paving the way for the media company to establish a foothold in mainland China. With an estimated cost of US$3.5B, the park would be one of the biggest investments in China by an international company. “China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for the Walt Disney company in mainland China,” said Bob Iger, chief executive. Disney already has a theme park in Hong Kong but has long coveted a park in Shanghai, viewing the city as a perfect entry point for the mainland Chinese market. It has been in talks with officials in China for a decade but made its first official application to construct a park this year. A Shanghai park would raise the company’s profile in China, increasing its ability to cross promote and sell TV programming, films and consumer products that are based on its library of characters. Read more

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Signs of recovery after a difficult year sounded around the World Monday as manufacturers reported rising output and improved employment prospects in the USA, EuroZone and across Asia. From Bangkok to San Francisco, manufacturing sentiment has recovered quickly from the global recession last year, when World trade stopped dead and unsold inventories piled up in warehouses around the World. A year later, manufacturers reported that in October, output around the World was rising at the fastest rate in 5 years. The JPMorgan global composite purchasing managers’ index (PMI) rose to 54.4, up from 53 in September, the highest value since July 2004. The biggest surprise came in the USA, where the Institute for Supply Management’s factory index rose to 55.7 from 52.6 in September. The figure, well above market expectations, sent stocks in the USA and Europe North as it was seen as evidence that the recovery was stronger than previously thought. At the close of trading in Europe, the Eurofirst 300 index of European shares was 0.39% higher at 980.28, while the FTSE 100 index rose 1.2% to 5,105. The S&P 500 was up 0.7%. Read more

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On Monday Ford offered a glimmer of light a auto manufacturing in irons by reporting that it had made a US$1B profit in Q-3. The car maker also reported its North American arm returning to profitability after four-and-a-half years and raised its official view on its outlook, saying it was on course to be “solidly profitable” by 2011. Ford, the only one of the USA’s Big 3 auto makers to avoid bankruptcy this year, was aided by cost cutting, increased market share and the US government sponsored incentives such as the “cash for clunkers” program. Ford’s net income in Q-3 was US$997M, or 29 cents per share, compared with a net loss of US$161M, or 7 cents per share, in the same period Y 2008. Savvy market observers expected on average that Ford would post a loss of 13 cents per share. Read more

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The signs of an improving economy are on your kitchen or bathroom shelves, as US consumers are showing a willingness to pay a little more to get big-name brands, including Colgate toothpaste, Kellogg’s Frosted Flakes and Gillette Fusion shavers. That is good news for the economy and the multibillion-dollar companies that make those products and have been battling to keep shoppers from trading down to store brands to save money. Procter & Gamble Co., Colgate-Palmolive Co. Estee’ Lauder and Kellogg Co. all gave upbeat earnings reports last week and even stronger outlooks for Y 2010. “The strongest brands are the most resilient to economic stress and the first to bounce back as soon as consumers can pay for it because they don’t want to trade down,” said Allen Adamson, managing director of San Francisco-based branding firm Landor Associates. P&G said sales were rebounding faster than expected after a year of declines — and following price cuts to narrow gaps with cheaper competitors biting into its market share. P&G is an economic bellwether as the world’s largest consumer products maker and seller of a broad range that includes cleaners, baby, grooming and beauty products. Read more

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The US$ fell against most major currencies Thursday as US economic growth was stronger than expected in Q-3. Real gross domestic product (GDP) grew a 3.5% annual rate in Q-3, stronger than most expectations, according to the US Commerce Department. It was the 1st increase after 4 Q’s of contraction. The report indicated that US has emerged from its longest and deepest recession in the post-war period. US Senators agreed Wednesday to extend the tax credit for 1st time home buyers and to offer a reduced credit to some repeat buyers. Treasury Secretary Tim Geithner and Housing and Urban Development Secretary Shaun Donovan gave their support to the extension Thursday. The credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide, Geithner and Donovan said in a statement. The Euro has been sliding in previous sessions as weak economic reports hurt hopes for recovery. The single currency rebounded Thursday as risk appetite picked up. Read more

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International Business Machines Corp., the World’s largest computer-services company, will provide US employees with 100% coverage for primary care, a policy designed to curb health expenses. Beginning Y 2010, employees will no longer have to pay deductibles for visits to in-network doctors such as internists, general practitioners and pediatricians, Armonk, New York-based IBM said today in a statement. The company said it is one of the 1st US employers to adopt such a policy. The decision is aimed at encouraging employees to visit the doctor more often, so illnesses are treated before they become serious. IBM said the policy will cover about 80 percent of its 115,000 U.S. employees The other 20% belong to health maintenance organizations. “We believe in giving people incentives to get health care early and often,” said Marianne DeFazio, director of health- care benefits and strategy at IBM. “When people have no barriers to getting primary care, you catch things early and you prevent things.” Read more

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