Morning business round-up: Italy's borrowing cost soars


What made the business news in Asia and Europe this morning? Here's our daily business round-up:

The Italian government's borrowing cost has risen in early trade as fears grow over political uncertainty in Rome.

It is feared that Italy, the eurozone's third biggest economy, could become the next victim of the debt crisis. PM Silvio Berlusconi faces a crunch vote on public finance on Tuesday.

The gap between German and French debt widened to a record high since the euro was created in 1999. Italy's borrowing costs also surged.

Investors are worried that a Greek default will spread financial contagion to other highly indebted nations.

Worries over the Greek economy are forcing businesses to look at a future without the euro.

German tour operator Tui has asked hotels in Greece to sign new contracts spelling out how the company will pay its bills if Greece leaves the eurozone and starts using a new currency.

A spokesman for the company confirmed it had written to hoteliers after the letter had been reported in German newspaper Bild.

In the letter, Tui said it was entitled to pay in whatever currency was in use.

The much-feted Boeing Dreamliner plane has seen its first glitch since entering production.

An All Nippon Airways domestic flight was forced to make a second landing approach at Okayama airport in Japan, after a warning light showed the landing gear had not fully deployed.

The plane, carrying 249 people, eventually landed safely, ANA said.

The 787 Dreamliner made its first commercial flight on 26 October, from Tokyo to Hong Kong.

Media caption,
Biz Heads

Chinese firms have agreed to increase their censorship of internet content as authorities seeks greater control over the medium.

The heads of 39 companies including Baidu and Alibaba agreed to "curb rumours" and the spreading of "harmful information", official media reported.

Chinese authorities has often been accused of censoring online material to maintain control over its population.

Indonesia's economy continued to grow rapidly - despite a weak global economic outlook - helped by domestic spending and investment.

Gross domestic product rose 6.5% in the three months to September, compared to a year earlier, the Central Bureau of Statistics said.

Indonesia's economy grew at its fastest annual rate for six years in 2010.

The latest edition of Business Daily speaks to Janet Henry, the chief European economist at HSBC, about the future of the euro after last week's turmoil.

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