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Japan:Neuroscientists say they have succeeded in planting false memories in mice.

Neuroscientists say they have succeeded in planting false memories in mice.

Researchers include Japanese Nobel laureate Professor Susumu Tonegawa at the Massachusetts Institute of Technology and others from the RIKEN research center.

They say they have found a way to stimulate rodents' brain cells with light in order to reactivate prior memories.

The researchers put the mice in a chamber to form a memory of the place.

The mice were then introduced to a different chamber where they received a mild electric shock. At the same time, the researchers used light to activate the cells containing the memory of the previous chamber.

When the mice were placed back into the first chamber they froze in fear even though they had never received a shock there.

TPP ministers agree on tariff elimination rule on final day

Ministers of the 12 countries in the Trans-Pacific Partnership free trade negotiations agreed Sunday to uphold a basic rule of total tariff eliminations in wrapping up their three-day meeting on the Indonesian island of Bali toward the goal of reaching a deal by the year-end.

During their effort to compile work plans for advancing talks on contentious areas, the ministers discussed market access that covers tariff elimination rules and intellectual property rights among others, despite each country having its own sensitivities.On Japan's sensitive items, a ruling party lawmaker in charge told reporters after the meeting that Prime Minister Shinzo Abe's Liberal Democratic Party now plans to study the possibility of eliminating tariffs on the items that have been considered untouchable, including rice.
"We need to consider whether we can take them out or not" from the exceptional items in Japan's negotiation policy -- adopted in line with the party's proposal -- said Koya Nishikawa, head of the LDP's TPP committee, although adding it does not necessarily mean the party has removal in mind.
"If it doesn't hurt (Japan's agriculture), it would be up to the government to negotiate" and decide policies, Nishikawa said.

Source: NewsOnJapan

China, Thailand vow to advance bilateral, China-ASEAN ties

hinese President Xi Jinping and Thai Prime Minister Yingluck Shinawatra met here Sunday, pledging to further bilateral ties and China's relations with the Association of Southeast Asian Nations(ASEAN).

China-Thailand ties enjoy a solid foundation, huge development potential and a good prospect, Xi said during talks with Yingluck ahead of the 21st informal economic leaders' meeting of the Asia-Pacific Economic Cooperation(APEC) in the Indonesian resort island of Bali, slated for Monday and Tuesday.

China highly values its friendly relations with Thailand, and considers Thailand a significant cooperative partner in the region, Xi said.

Following the comprehensive strategic cooperative partnership forged last year, China-Thailand ties enter a new development stage, said Xi.

The two sides should maintain close exchanges, plan cooperation according to their own development needs, tap new growth points and push forward bilateral relations to a higher level, he said.

Construction of high-speed railway and water conservancy infrastructure are key projects concerning regional connectivity, Thailand's economy and the well-being of the Thai people, and thus should be highlighted among the priorities of cooperation projects, Xi said.

These projects can become symbols of China-Thailand friendship, he noted.

China-Thailand ties have been taking the lead among China's relations with ASEAN nations, setting an example for the region, said Xi.

China expects Thailand to fully play its role as coordinator of China-ASEAN relations, and actively promote mutual trust and cooperation between China and ASEAN, and jointly safeguard prosperity and stability in the region, said the Chinese president.

China supports Thailand's proposal to host the international meeting on the sustainable development in the Lancang-Mekong subregion, Xi said.

Yingluck, for her part, said Thailand hopes to strengthen exchanges with China, expand cooperation in such fields as trade and economy, investment and infrastructure construction, and effectively carry out the high-speed railway and water conservancy projects.

Thailand appreciates China's efforts to maintain reform and opening up and advance toward the great rejuvenation of the Chinese nation, she said.

China's economic development is very significant to Thailand and ASEAN, said Yingluck.

Thailand agrees with China on its principled proposals on China-ASEAN relations, and stands ready to join hands with China to boost ASEAN-China friendly cooperation and development, and safeguard regional peace and stability, she said.

Thailand supports China's proposal on the creation of an Asia infrastructure investment bank, and is ready to coordinate with China in this regard, said Yingluck.

Source: Xinhua

Chinese FM spokesman refutes Japanese concerns over maritime security

- A Chinese Foreign Ministry spokesman on Sunday rejected concerns raised by the Japanese side on the so-called maritime security and China's maritime activities.

Qin Gang made the remarks when asked by press ahead of the 21st informal economic leaders' meeting of the Asia-Pacific Economic Cooperation (APEC) in the Indonesian resort island of Bali, slated for Monday and Tuesday.

During an informal breakfast meeting of foreign ministers from APEC's sovereign members on Saturday, Japan's Foreign Minister Fumio Kishida reportedly raised concerns over maritime security and China's maritime activities.

Qin said China's Vice Foreign Minister Li Baodong responded at the scene that the APEC is an economic and trade cooperation forum, holding the tradition for many years of not introducing issues concerning political security and sensitive disputes.

An individual country made the hype solely for its own political objectives, which cannot be accepted by others and is doomed to fail, Qin quoted Li as saying.

Qin said there has been no problem with the freedom of navigation and maritime security in the region. The Chinese government always adheres to the position that the maritime security of all the countries should be safeguarded. China has vigorously participated in maritime security cooperation in the region, which is clear for all to see, he said.

The hype of the so-called maritime security issue is not conducive to the true efforts of safeguarding navigational freedom and security, Qin said.

Chinese, Australian leaders pledge to boost ties

Chinese President Xi Jinping and Australian Prime Minister Tony Abbott agreed here on Sunday to push forward bilateral ties and speed up free trade negotiation.

China and Australia are both major countries in the Asia-Pacific region, said Xi in a meeting with Abbott. "Their close cooperation would not only serve the fundamental interests of both countries, but also contribute to regional and world peace and development," he said.

China and Australia should consolidate "four bonds" in bilateral ties, said Xi.

The first bond is mutual trust. Both sides should respect each other's core interests and major concerns, objectively and rationally view each other's strategic intentions, achieve common progress amid inclusiveness and mutual learning, and seek win-win results through deepening cooperation, said Xi.

The second bond is economy and trade. Both countries should make efforts to achieve early and substantive progress of bilateral free trade agreement (FTA) talks, said Xi, adding that they can also expand cooperation in traditional areas such as energy and resources while exploring new cooperation areas such as infrastructure, information technology, energy conservation and environmental protection.

The third bond is people-to-people exchanges. China and Australia should strengthen exchanges in education, culture and between the two countries' youth, so as to deepen mutual understanding and friendship, said Xi.

The fourth bond is security. The two countries should continue to enhance military exchanges through their strategic defense consultation and navy visits, he added.

On regional cooperation, Xi said the Asia-Pacific region has maintained overall political stability, economic vitality and vibrant regional cooperation.

Countries in the region should focus on development and economic growth, said the Chinese president.

China and Australia may strengthen communication, coordination and cooperation through diplomatic and strategic dialogue mechanisms, said Xi, adding that his country stands ready to work with Australia to play a constructive role in ensuring that the upcoming APEC meeting would achieve its goals.

Abbott, for his part, said China's rise is a blessing to the world, not a challenge.

Australia's prosperity has benefited from cooperation with China, said Abbott, pledging to stay committed to boosting the "four bonds" of mutual trust, economy and trade, people-to-people exchanges and security, in order to develop even more robust bilateral relations and be a good friend of China.

Australia is ready to speed up the FTA negotiations with China, and welcomes Chinese enterprises to invest in Australia, Abbott said.

Australia wishes to enhance cooperation with China within the frameworks of the Group of Twenty and APEC, he added.

Japan casinos would get Vegas-style regulator

Japan would establish an independent gaming regulator modelled on the authorities that police casinos in Las Vegas and Singapore under a draft plan to legalise gambling in a market seen as potentially the second-largest in the world.

The policy outline, which was prepared by Japanese lawmakers who favour casinos and reviewed by Reuters, outlines broad standards for licensing and regulating casino operators and their partners.

After more than a decade of lobbying by lawmakers, a bill to legalise casino gambling is seen as having a good chance of passing in the coming months with the business-friendly Liberal Democratic Party in power and after Tokyo -- a likely casino host -- won the bid to host the Summer Olympics in 2020.

MGM Resorts International, Las Vegas Sands Corp , Melco Crown Entertainment and Wynn Resorts Ltd are among the global operators that have shown interest in developing a casino resort in Japan.

Among the concerns lawmakers who favour legalising casinos believe need to be addressed is what measures will be taken to keep out organised crime, known in Japan as the "yakuza." To address those concerns, the draft plan calls for the creation of an agency that would have control over the issuing of licences and the policing of gaming operations.

"The hurdles to enter the business should be set high. It should not be easy for anyone to get a licence and participate in the industry," the policy plan says. "With proper regulation and enforcement of the law, there is absolutely no reason for casinos to become hotbeds of criminal activity."

Details of the draft plan have not previously been reported.

Source: NewsOnJapan

Abe to seek to improve ties with China, S. Korea at regional summits

Prime Minister Shinzo Abe showed his intention Sunday to seek to improve Japan's soured relations with China and South Korea as he began a trip to Southeast Asia, where he will attend a series of meetings of Asia-Pacific leaders.

Abe also told reporters before his departure that he will encourage other leaders to make final efforts toward concluding within the year a trans-Pacific free trade agreement, despite the absence of U.S. President Barack Obama, who had canceled the trip because of the government shutdown in Washington."I want to exchange views" with South Korean President Park Geun Hye and Chinese President Xi Jinping "if circumstances permit," Abe said at Kansai International Airport before leaving for Bali, Indonesia, where the summit of the Asia-Pacific Economic Cooperation forum is scheduled on Monday and Tuesday.
He also said, "If Japan maintains stable friendly ties with China and South Korea, then it will benefit the region as a whole very much," and that he will keep sending a message to the neighbors that "doors for dialogue are open."
There is no publicized schedule, though, for Abe to meet with the Chinese and South Korean presidents in Bali and also in Brunei, which Abe will later visit for other meetings. Some Japanese officials say Japan's efforts to that end have so far failed to bear fruit.

Source: NewsOnJapan

Israel's Tech Start-Ups and Venture Finance Part II

"IBM has spent nearly $1bn (£640m) on four Israeli companies that all developed big data storage solutions: Storwize, XIV, Diligent and FileX. Earlier this year, Google acquired the mapping app Waze for more than $1 bn".

"The founders of Waze received their technical training in Israeli military intelligence. The giant Israeli tech firms Nice,Comverse,  and Check Point were all created by Unit 8200 alumni or based on technology originally developed by the unit".

Across the boulevard, Yaron Tal is Chief Technical Officer of 6Scan, a website security start-up he founded with ex-army buddies. A white-hat hacker (one that works for non-malicious motives), since the age of 12, he was running his own web security consultancy by the age of 17, before being head-hunted for Matzov, the army’s cyber-security unit.

“Entrepreneurs in Israel are unique,” he says. “Their approach to problems is different to others because the army is a huge incubator for innovation and entrepreneurship. The army gave us a few million dollars at the age of 18 and asked us to build technology and systems that address problems that only people 10 or 20 years older are dealing with in other parts of the world".

Another important driver of the tech scene is the fact that Israeli university students pay only about $3,100 (£2,000) a year in tuition fees. They emerge from military service and three years of studying with zero debt, eager to take a year off to pursue their dreams.

Recruiting to 6Scan became easy after they opened an office on the boulevard, according to Tal. “The street is full of start-ups. We talk together, help each other. There are no big companies here, which is great. We live very near the office. We love the vibe, the place, the other start-ups, the restaurants. It’s easier to bring developers to the company when you say it’s in Rothschild even though we don’t have much money to offer. We offer them equity and a good place to spend each day.”

Source: BBC

IMF: Christine Legard The Aftermath of the Great Recession 2008-9 Part II

Emerging markets and developing countries

  For de past five years they drove  the recovery and kept the global economy afloat—accounting for three-quarters of total growth.

  They are now in much better shape, with the exception of India and Malaysia, than in the crisis of the 80's and 90's, they have flexible exchange rates,higher International Reserves, and lower debts with respect of their GDP's.

  Over the past five years, capital flooded into emerging markets—partly due to loose monetary policy in the advanced economies. Bond inflows alone rose by over $1 trillion—more than 2 percentage points of GDP a year for the recipient countries. Now, with markets getting jittery over the perceived end of easy money, this financial tide is starting to recede.

   These countries are in another transition:

By IMF estimates, the turbulence in train since last May could reduce GDP by ½ to 1 percent in major emerging markets. Of course, some countries are more vulnerable than others.

  As it happens with advanced economies, different groups of emerging economies, face different

problems.

 For some,the priority is to ride out the turbulence as smoothly as possible. Currencies should be allowed to depreciate. Liquidity provision can help deal with dysfunctional market behavior.

 There is less room to maneuver,in countries with inflation pressures—such as Brazil, India, Indonesia, and Russia. Likewise, there is not much space left across many emerging markets for using fiscal policy, given high debt and deficits.

Some countries also need to knock down lingering barriers to long-term growth—pushing ahead with infrastructure investment in places like India and Brazil, deepening financial markets, and opening up local markets,ending non-tariffs proteccionist measures.

China needs to keep moving to a growth path based less on credit—which hit 180 percent of GDP this year—and more on higher productivity, higher incomes, and higher consumption. This means liberalizing interest rates, ramping up financial sector oversight, opening up protected sectors to private initiative, and further strengthening the social safety net.

This emerging market transition will not be fast or easy. These countries will likely spend the rest of the decade adjusting to the new reality.

Again, international collaboration is the only way forward.

Low income countries

These too are in the process of profound transition. In many cases, the developing countries of yesterday are poised to become to the frontier economies of tomorrow.

Sub-Saharan Africa is now the second most dynamic region in the world after developing Asia, and is getting ever closer to the beating heart of the global economy. Growth rates over the past several years have been around 5 percent.

So these countries need to take action, by having enough foreign and fiscal reserves to deploy when necessary, including by mobilizing more revenue. Beyond that, they need to make growth more inclusive—including by boosting public investment and making sure that all have access to decent healthcare, education, and finance.

Transition in the Financial Sector

There is a second fundamental transition taking place in the global financial sector, in parallel with the economic.

Under the old model, the financial sector took on outsized risk in pursuit of outsized rewards, causing outsized ruin—and precipitating the crisis we have been experiencing for the last five years.

How is this transition doing? In the IMF’s assessment, it remains a case of “mission not yet accomplished”.

  Yes, we have seen progress. The tougher capital standards, agreed under Basel III, are being implemented. We have agreement on new liquidity standards, and plans for a leverage ratio to keep excess risk in check.

   There is also an issue for the reform in the deratives market.At the end of last year, total outstanding derivatives amounted to $633 trillion, of which only $24 trillion were traded on organized exchanges. Adequate supervision of the remaining part requires countries and markets to speedily implement the agreed derivatives reforms.

   Another danger zone is shadow banking, which is attracting a lot of riskier activity. In the United States, the nonbanking sector is now twice the size of the banking sector. In China too, about half of the new credit extended so far this year has come through the shadow banking system.

Putting this all together in a globalized world is a headache. And yet, it must be done—nothing less than global financial stability depends on it.

Building a new financial sector is not the job of policymakers alone. It is also the responsibility of the financial industry.

Managing the New Transitions in the Global Economy

an Address by Christine Lagarde
Managing Director, International Monetary Fund