Asian shares edge to two-week high on China optimism

Asian shares edged to a two-week high on Tuesday, adding to the previous day's hefty gains on China's economic reform plans, while the dollar was hobbled by expectations the U.S. Federal Reserve will keep its stimulus a little longer.

MSCI's broadest index of Asia-Pacific shares outside Japan  added 0.2 percent, building on Monday's 1.4 percent rally fed by a sharp jump in Chinese stocks and heading for a fourth straight day of gains.

China's CSI300 Index surged 3.3 percent on Monday, its biggest one-day rise in two months, to hit a four-week peak. The index took a breather on Tuesday, slipping 0.4.

In Tokyo, the Nikkei  fell 0.8 percent, further moving away from a six-month high hit on Friday, with a trader saying domestic investors continued to cash in recent gains.

The yen was up 0.4 percent at 99.64 yen to the dollar, adding to a 0.2 percent rise overnight to end a two-day run of losses.

The euro rose 0.1 percent to $1.3515, not far from a two-week high of $1.3542 reached on Monday. Against a basket of major currencies, the dollar .DXY eased 0.2 percent to 80.661, languishing near a more than one-week low of 80.565 reached on Monday.

As the dollar weakened on expectations that the Fed will continue its bond-buying campaign under incoming chief Janet Yellen, the 10-year U.S. Treasuries yield slipped to below 2.70 percent.

Source: Reuters

Shanghai, Chongqing plan on property tax

Property taxes have been levied on home owners in a trial basis in Shanghai and Chongqing since 2011. The two cities now plan to fully implement the tax and have released details on how much property owners will have to pay each year.

The property tax code has many criteria that will exempt a large number of home owners but require those who own large properties to pay more.

The property tax rate in Shanghai will float between zero-point-four percent and zero-point-six percent of the average square-meter value of property for the year. In Shanghai this year the tax will only be imposed on property valued at more than 27,000 yuan per square meter.

The city of Chongqing will charge the tax on property with a market value of more 12,000 yuan per square meter, but will exempt many smaller homes and long-term home owners. People who purchased property of more than 180 square meters after 2011 will pay more.

Source:  CCTV

Samsung Galaxy Round to be first flexible phone?

The name of the first-ever flexible screen-toting smartphone might just have leaked online, ahead of its debut later this month.

According to sources cited by South Korean site Asiae, Samsung will opt for the name 'Galaxy Round', which we’re guessing alludes to the curved effect of the display.

The report, which puts the phone's asking price at $900, also claims that it's spec sheet will closely resemble the Galaxy Note 3 and that it will be made in very limited quantities.

This chimes with earlier leaks that claimed this was down to low production yields for the screen tech, as well as Samsung's wariness of overcommitting to technology that has yet to be properly tested with the public.

JK Shin, co-CEO at Samsung Electronics, is reputed to have told Korean press sorts to expect the tech giant’s first flexible smartphone this week.

The company, which was joined by LG in making a firm announcement about flexi-screen tech earlier today, has been touting bendy phones as concept devices at trade shows for years.\

Source: USwitch

Abe's ASEAN diplomacy driven by rivalry with China

Less than a year after taking office last December, Japanese Prime Minister Shinzo Abe has achieved his goal of visiting all 10 member countries of the Association of Southeast Asian Nations, driven by rivalry with China in the region.

During his weekend visit to Cambodia and Laos, his final two destinations for the target, Abe clarified his country's aim of regaining ground lost to China in Southeast Asia in both economic and security terms.China traditionally has strong ties with Laos and has deepened its relations with Cambodia through economic assistance. For Cambodia, China is now a bigger aid donor than Japan.

Source: Jiji Press

China may be seeking better relations with Japan

China may be opting for improving relations with Japan. The Japanese government is analyzing the country's moves to see if that is the case.

China's President Xi Jinping announced a basic policy on diplomacy at a meeting with senior members of the ruling Communist Party last month. The policy included a statement saying that China will regard good relations with neighboring countries as important.Japanese government officials say they want to see whether China really intends to improve relations with Japan.

Source: NewsOnJapan

Aljazeera :Japan is showing the world that stimulus works

More than five years after the financial crisis hit its peak, the world is still far from recovering the ground lost. Tens of millions of people in the wealthy countries of North America and Europe remain unemployed or underemployed as a result of the collapse of the housing bubbles that drove their economies before the crisis.

This downturn has robbed workers of the opportunity to have a decent job and the income necessary to raise their children. It has also resulted in trillions of dollars of lost output. Millions of workers who could have been employed improving our infrastructure, making our homes and businesses more energy efficient or better educating our children have instead been left idle.

According to the dominant strand of economic thinking in policy circles, if not also academia, this suffering was necessary because of the sins associated with the inflation of credit bubbles in the lead-up to the crisis. Their bursting threw budgets out of whack, causing large government deficits. The conventional wisdom in Brussels, London and Washington is that governments must focus on reducing their budgets in order to reduce their debt to more normal levels and lay the basis for renewed growth.

Source:  Aljazeera 

Japan Inc. profits double as cost-cutting CEOs set recovery pace

Japanese companies that made tough decisions about exiting businesses, closing factories and revamping management led a doubling of corporate earnings last quarter to the highest level since 2007.

Net income jumped to about 5.5 trillion yen ($55 billion) at more than 1,280 of the largest listed non-financial firms, the most since a credit meltdown sparked a global recession six years ago, based on data compiled by Bloomberg. Profit climbed from 2.25 trillion yen a year ago, the fastest jump since 2010.

Companies showing profit surges include Panasonic Corp. (6752), which has cut 71,000 jobs; Mazda Motor Corp. (7261), which is shifting car production to Mexico; and Toyota Motor Corp. (7203), which overhauled management and halted new factory construction. The gains, also fueled by a weaker yen, contrast with disappointing results at firms such as Sony Corp. (6758), which resisted calls to spin off assets or close money-losing businesses.

"Companies that made efforts to cut costs and restructure before the yen started to weaken are the ones really showing growth," said Tetsuro Sugiura, chief economist at Mizuho Research Institute. "Japanese companies had fallen back in global competition because they weren't able to cut businesses and cut people or were late in doing this."

Panasonic has undergone one of the more dramatic makeovers, shifting its focus from consumer electronics to alternative power products such as solar panels and batteries. The company, once a leading television maker along with Sony and Sharp Corp. (6753), plans to stop making plasma TVs by March.

Source: NewsOnJapan

Method developed to screen out versatile iPS cells

A Japanese research team says it has developed a method to screen out iPS cells that are particularly good at differentiating into body cells.

The finding could help enhance the safety of regenerative therapy that uses these types of reprogrammed stem cells.Experts have learned that some iPS cells are adept at differentiating, while others are not and are prone to turning cancerous later on.
A research group from Kyoto and Kobe Universities compared the 2 types of cells.
They found that 3 particular genes were active in iPS cells that are not good at differentiating.

Source: NewsOnJapan

China cuts size of PLA, opens industry to civilian firms

Military reforms have been approved by China's leaders during last week's Third Plenum of the 18th CPC Central Committee. Reforms aim to build an army that "obeys the Party's command, is capable of winning battles and has a sound work style".

China has announced plans to cut the size of its 2.3 million strong army by reducing the number of non-combat personnel.

China will also adjust various services formations, as well as the ratio of army officers to soldiers.

The blueprint for reforms also mentioned enhancing the joint operation system and cooperation among various military services, to meet the country’s security demands.

Another focus is speeding up building of new combat units, and incorporating them in the defense system.

China also plans to reform its defense industrial systems, and to welcome more civilian companies within the tightly controlled defense industry.

Source:  CCTV

Chinese president meets former U.S. president Clinton

Despite ups and downs, China-U.S. relations have generally moved toward the right direction and yielded fruitful results, Xi said. "With the joint efforts of generations of Chinese and U.S. leaders, our relationship has become a skyscraper. We need to work together to do more to help the relationship."

"President Barack Obama and I have reached an important consensus on building a new type of relationship between major countries, which is a strategic decision in the fundamental interests of the two countries and two peoples," Xi said.

He said the two sides are enhancing cooperation in politics, trade, ecology and people-to-people and cultural exchanges and will work together to cope with challenges regarding climate change and energy security.

As long as both sides adhere to the principles of establishing a new type of relationship between major countries, respect each other and achieve win-win cooperation, bilateral ties will have broader prospects, Xi noted.

The development of bilateral ties requires the support and participation of people from all walks of life in the two countries, Xi said, expressing hope that Clinton and the Clinton Foundation will make contributions and lead more people to devote themselves to bilateral cooperation.

Clinton said he cherished the bilateral ties, which feature sincerity, mutual trust and constructive cooperation. He expressed congratulations on the success of the Third Plenary Session of the 18th Communist Party of China (CPC) Central Committee and voiced support for China's comprehensive and deepening reform.

The U.S. and China should strengthen cooperation and tackle global challenges together, Clinton said, adding that he and his foundation are willing to promote bilateral cooperation in health, new energy, ecology and environment, climate change as well as cooperation in Africa.

Source:  CCTV

Evolving art: Majestic Strandbeest sculptures come to life on the beach

How many artificial animals can you encounter on a seaside walk? More than one if you frequent the Dutch coastline where Theo Jansen's moving artworks amble along with the help of their rudimentary senses. The complex wind-powered skeletal constructs that Jansen calls "Strandbeests," or beach beasts, are designed to stay on the beach and live off the sea breeze.

Created entirely from ordinary plastic tubes without any electronics, Jansen has through numerous evolutionary experiments equipped them with ingenious sensing mechanisms that can detect water, avoid obstacles and hammer the animal into the sand before a storm. Giving them the ability to migrate is the next principle he's attempting to master with his newest creature, the Plaudens Vela (fluttering sail beast), which will be a big step forward towards his final goal of creating a completely independent artificial animal.

Undertaking the task of manually evolving a new form of life isn't a challenge anyone would take up lightly, but Jansen was hooked when he tried to replicate the creatures that evolved within a program he designed years ago. Settling on cheap plastic tubes as his raw material, he began constructing his beasts through computer generated designs initially, and entirely freeform later on.

By adding recycled PET bottles, pumps and valves to these skeletons and through the clever use of air pressure, Jansen has managed to give his creations something akin to muscles, nerves and even a type of analog brain capable of reacting to its environment. With each species he evolves more senses and principles, refining them further in newer creatures and consigning the unsuccessful ones to the bone yards.

The Animaris Gubernare had a rolling plastic stomach on the ground which stored compressed air but turned out to be an evolutionary dead-end since it was too heavy for the animal to move around with. Herds of the creatures grew smaller as he began fine tuning senses on individual animals. A working sand feeler was the highlight of the Animaris Protinus, while the Animaris Adulari used a wagging nose and tail to help it sense the hard sand it could walk on.

"They are blind and deaf and they have to navigate somehow," Jansen tells us. "You can do a lot with compressed air. They have a sort of tongue, which is a long tube and as soon as air pressure is in there, it can feel if the sand is even or uneven, i.e. if it is hard sand or soft sand. It steers away from the soft sand, towards the sea."

Source: Gizmag

The market Opportunities around the Internet of Things

The market opportunities around the Internet of Things (IoT) are substantial foong with a video of Adam discussing the opportunities and a very cool IoT Infographic from Wind River. Let me know how you’re approaching IoT. – Valerie Scarsellato, aka @Intel_Chick, Marketing Specialist, ISG

Val: So, first things first, how should businesses approach IoT?r Intel, McAfee, and Wind River, along with their ecosystem and the industry at large. But in a practical sense, how should businesses approach IoT? How can they start optimizing their processes and how do they ensure security? I recently caught up with a couple of experts to find out: Adam Burns, Director of Strategic Planning and Business Development of Intelligent Solutions at Intel, and Santhosh Nair, General Manager, Intelligent Systems Group at Wind River. Check out their great insights below, al

Adam Burns: I think the first thing really for businesses to think about is the top business problem they want to solve. What are they going to do to get meaning out of their data and what business problem is it solving for them? Given that, they should ask what systems they need to connect and instrument or what new capabilities to put in place to optimize or even transform their business.

Santhosh Nair: I would encourage businesses to start thinking about the best way to connect the wealth of new applications, systems, and devices to what can be complex networks. How can they use information from machines for better decision-making? How can information be exchanged among siloed institutions, systems, and applications? How can the operational efficiencies of IoT-enabled systems be scaled for higher profit potential? And how can successes and lessons learned be leveraged more broadly across multiple vertical markets?

Operators and device or system manufacturers have very different perspectives on the opportunities created by the IoT, but all are looking to develop solutions that will scale efficiently, increase average revenue per device, and create competitive differentiation, while responding to the needs of specific vertical industries.

Val: In terms of practical business processes, how can businesses optimize their processes with IoT?

Adam Burns: I think there’s really two sides of the coin here. With business optimization, we see a lot of interested customers asking about what they can do with the business they have TODAY. For example, how do they take advantage of streamlining logistics and doing predictive maintenance on high value assets they have in place? That’s close to their core and they see an immediate impact of the bottom line.

The other side of the coin is really the new services and new opportunities possible with IoT; what we call business transformation. The technology is flexible enough that once they can collect data, once they know how to deploy analytics and turn that data into value, it opens up an array of new service opportunities and companies can start to partner and really drive new compelling opportunities in that way.

Santhosh Nair: The compelling driver behind connecting smart devices via IoT is, as is often the case, economic advantage. For example, it typically costs at least three times more for a human being than a device to service a machine, read a utility meter, or adjust the heating and cooling to manage energy usage in a building. Another important driver is the real-time demand for Big Data to make faster and more precise decisions. Across multiple industrial sectors for example, I’m seeing IoT producing two key operational benefits to optimize business processes:

Real-time analytics: Enabling predictive maintenance and self-diagnostics, real-time analytics are performed autonomously by intelligent machines and devices in IoT. For example, systems can extend the life of components that are near failure by reducing mechanical load.
Adaptive analytics: Converting the vast data sets generated by IoT into a source of rich and actionable information, adaptive analytics can help identify the trends that will transform businesses and enable large-scale, real-time decision making.

Val: Security is obviously a requisite as companies move into IoT. How should businesses approach the security question?

Adam Burns: When I think about it from a user perspective, if I’m going to start controlling a device based on the data it provides, I need to be absolutely sure that the device is trusted and the data could be trusted. And so when you think about security, you think about making sure it connects properly and making sure it’s only running the applications that I know are okay. Then I go into the whole path of protecting data from the device to the cloud and ensuring the services I’m offering have integrity. It’s just absolutely critical when you think about the internet of things in action; I can’t control devices if I can’t trust them.

Santhosh Nair: Security is a key differentiator for IoT, and security vulnerabilities are a roadblock for adoption. Security at both the device and network levels is critical to the operation of IoT. The same intelligence that enables devices to perform their tasks must also enable them to recognize and counteract threats. Fortunately, this does not require a revolutionary approach, but rather an evolution of measures that have proven successful in IT networks, adapted to the challenges of IoT and to the constraints of connected devices.

The last point I’ll make is that security should not be thought of as an add-on to a device, but rather as integral to the device’s reliable functioning. On the software side, security controls need to be introduced at the operating system level, take advantage of the hardware security capabilities now entering the market, and extend up through the device stack to continuously maintain the trusted computing base.

Alibaba doubles down on NFC payments as Alipay partners with major Chinese retailer

Alibaba, the Chinese internet giant that’s quickly expanding into financial services, announced on Saturday that it would partner with Yintai, a major Chinese retailer, to offer NFC payments in its retail stores through Alibaba’s Alipay e-wallet.

Jinghua reports that starting tomorrow, Alipay users can go to any one of Yintai’s 37 properly-equipped retail stores and purchase products simply by opening the Alipay e-wallet app on their phones, and swiping it above a sensor.

The move, Alibaba’s first major extended foray into offline payments, is no surprise. Last week, Alibaba announced that Alipay’s e-wallet app had racked up 100 million registered users. The revelation came after the company’s record-smashing online sales on Singles Day. 

Given the relative newness of NFC, it’s likely that only the app’s most loyal users use the service to complete online transactions.

Alibaba’s most notable move in the finance sector this year has been Yuebao, a money market fund thatlaunchedinJune and now hasUS$5.9 billion in assets from 13 million users. Jack Ma, Chairman of Alibaba, has been vocal about his company’s ambitions  to fill voids that Chinese state-owned banks have historically left open.

Boeing's fuel-efficient 777X features folding wings

Boeing has launched its newest airliner, the 777X, at the 2013 Dubai Airshow. The aircraft is designed with folding wing-tips that will increase wingspan and, as a result, fuel efficiency without limiting access at airports.

Boeing says the 777X will be both the largest and most efficient twin-engine jet in the world. The wings are based on those of the 787 Dreamliner and will stretch to 233 feet (71 m) when extended. The company says that a GE9X engine, built by GE Aviation, will contribute to overall fuel savings.

"The airplane will build on the market-leading 777 and will provide superior operating economics," says Boeing Commercial Airplanes President and CEO Ray Conner. "The airplane will be 12 percent more fuel efficient than any competing airplane." The company has already received a reported 342 orders for the new aircraft.

The 777X was launched with two siblings – the 777-9X and the 777-8X. Boeing states that the 9X will have a range of more than 8,200 nautical miles (15,185 km) and the lowest operating cost per seat of any commercial airplane, whilst the 8X will offer a range of more than 9,300 nautical miles (17,220 km). Production is due to begin in 2017, with the first deliveries in 2020.

Source: Boeing, Zigmag

Space: MAVEN heads for Mars

Today, a new attempt at learning the mysteries of early Martian history came a step closer to an answer. At 1:28 pm EST, NASA’s unmanned Mars Atmosphere and Volatile EvolutioN (MAVEN) probe launched from Space Launch Complex 41, Cape Canaveral Air Force Station, Florida atop a United Launch Alliance Atlas V rocket. It’s the first step in a mission to study the Martian upper atmosphere and learn more about the history of the planet’s climate.
The Atlas V rocket lifted off on schedule, with the RD-180 engine producing 860,200 lb of thrust. After first stage separation, the Centaur upper stage ignited 4 minutes and 18 seconds into the flight. Its first burn completed, the Centaur coasted until 2:09 pm EST before firing its RL-10 engine again to send MAVEN on its way to Mars.
MAVEN’s one-year mission begins in September of next year, when it goes into Martian orbit. Its purpose is to study the history of the Martian atmosphere and the processes that affect it, such as the rate of atmosphere loss, how the upper atmosphere interacts with the solar wind, and the ratios of various isotopes. These will later be compared with similar measurements taken by the Curiosity rover on the Martian surface.

Source: Gizmag

China's home prices in major cities continue to rise

Home prices in China's major cities continue to climb--according to data from the National Bureau of Statistics . 65 out of 70 posted a month-on-month rise in new home prices in October. But the pace of rises last month-- 0.6% eased from the 0.7% in September.

Big cities like Beijing, Shanghai, Guangzhou and Shenzhen recorded price jumps--17.8 percent for Shanghai, and 16.4 percent in Beijing. Over 20% for Guangzhou and Shenzhen. Wenzhou was the only city with a price drop -- 1.5 percent.

As part of China's reform plans, legislation for property tax will be rolled out and there will be changes to make it easier for farmers to sell their land, which should ease the demand supply issues in the market.

Source:  CCTV

Architecture: Cut lighting energy costs by brightening up rooms with Natural Light.

Researchers at the University of Cincinnati have developed technology that could help cut lighting energy costs by brightening up rooms with natural light. The SmartLight system is designed to direct sunlight into dark, dingy rooms located within the bowels of buildings without requiring the installation of new wiring, ducts, tubes or cables. It also allows excess light to be harnessed and centrally stored to provide energy for electric lighting on cloudy days.

The heart of the system are tiny electrofluidic cells measuring just a few millimeters wide that are filled with fluid that has optical properties as good as or better than glass. The surface tension of this fluid can be rapidly manipulated to transform the cells into lenses or prisms to control the sunlight passing through them. This manipulation is powered by photovoltaics embedded in the cells and requires 10,000 to 100,000 times less power than is used by a traditional incandescent lightbulb.

The cells are formed into a narrow grid that is positioned near the top of a window and can be used to direct sunlight onto the ceiling to provide ambient room lighting, focused toward special fixtures for localized workspace lighting, or transmitted across the room just below the ceiling to another previously "light-locked" room that has been fitted with its own electrofluidic grid.

"You're using space that's entirely available already," says Jason Heikenfeld who developed the system with Anton Harfmann. "Even if I want to retrofit to existing architecture, I've got the space and the ability to do so, and you don't need something mechanical and bulky, like a motor whirring in the corner of your office steering the light. It just looks like a piece of glass that all of a sudden switches."

Instead of wall switches, the SmartLight system would be controlled via a smartphone app that would allow users to set their lighting preferences and the system would automatically adjust the room's brightness accordingly. The team says that because the individual cells are able to react to changing light levels so rapidly, the SmartLight system can ensure constant light levels throughout the day.

The pair envisages functionality extending to using a smartphone's geolocation data to allow the system to automatically adjust the lighting when a person enters or leaves a room or to communicate with Wi-Fi-enabled light fixtures to alter the lighting when a person switches seats.

Because a typical sunny day would produce plenty of surplus light, the system could direct this to a centralized energy-harvesting and –storing hub within a building to power electrical lighting at night or on cloudy days. The stockpiled energy could also be used for other electrical applications, such as heating and cooling.

Although the pair are currently seeking funding to attract the attention of government or industry partners to help bring the SmartLight system to market, Heikenfeld says that much of the technology required to make SmartLight commercially viable already exists.

"We're going to look for some substantial funds to really put a meaningful program together," says Heikenfeld. "We've already done a lot of the seed work. We're at the point where it would be a big, commercially driven type of effort. The next step is the tough part. How do you translate that into commercial products?"

Heikenfeld and Harfmann recently presented a research paper on their SmartLight system at the CasaClima International energy forum in Italy.

Source: Gizmag,University of Cincinnatti.

WSJ: Taking Care of China Inc.

    According to a report from the Wall Street Journal,"China's Reform Plan treads softly on China's biggest state-owned companies, who many say are rife with overcapacity, corruption and distortions that disadvantage private-sector players. The aim seems to be not to loosen the grip of the state-owned enterprises to create a level playing field, but to make them work better to maintain the Communist Party's hold on power".
  There was no initiative to reduce the role of state-owned enterprises in the economy, as some hoped.

 "Not all is lost. The plan envisions state-owned companies boosting dividends so that 30% of after-tax profit—up from around 15%—goes to the government purse by 2020. Much of that income would be redistributed to households, rather than kept bottled up with bloated state companies.

 The national social-security fund could gain cash and end up with larger equity stakes in companies. While still cozy, a government fund serving as a shareholder with a motivation to boost profit rather than conduct policy would be an improvement".

"Broader reforms, if implemented, will attempt to make state-owned companies more efficient and profit-oriented".

"Elimination of price controls on commodities could clear out unneeded players and remove supply bottlenecks.

State-owned enterprises make up more than 80% of the value of Chinese-listed companies, so exposure to Beijing's policies are part of the game.

Much will hang on whether the reform plans are followed through with actions".

Dow Surpasses 16000 as U.S. Stocks Climb

   According to a Wall Street Journal Report,"the Dow Jones Industrial Average topped 16000 for the first time, extending a rally fueled by the combination of steady economic growth and central-bank stimulus".

"The blue-chip index rose as much as 0.4% to 16030 shortly after the open, but slipped below that benchmark in late-morning trading. Recently, it climbed 39 points, or 0.2%, to 15999. The Dow is up 22% since the start of the year and up 144% from its post-financial crisis lows.

The S&P 500 index added one point, or 0.1%, to 1799, reversing an early gain that sent the index above 1800 for the first time. The Nasdaq Composite Index fell three points, or 0.1%, to 3983.

While corporate earnings have been tepid of late, profits are still rising fast enough to support share prices, said Doug Cote, chief market strategist at ING Investment Management, which oversees $190 billion.

"Fundamentals are driving this market with help from our friends at the Fed," Mr. Cote said. 

On Monday, U.S. stock investors took their cue from overseas markets. In Asia, Chinese stocks rallied after the Chinese government announced a broad outlook for economic reform.

Optimism about growth in China filtered through to European markets as well. Germany's central bank said in a monthly report that there is a good chance the momentum of Germany's economy, the engine for growth in Europe, will accelerate in the coming months.

But many investors acknowledged that stocks are rising in an atmosphere of trepidation. Monday's intraday gains weren't particularly big, and volume was light, traders said.

Market analysts are divided on the future direction of the stock indexes, some argue that profits are growing fast enough to support share prices,plus a little help from the Fed's expansive monetary policy. While others think that market participants have become rather complacent about risk.

Japan's Banks Find It Hard to Lend Easy Money

   According to an article published on the Wall Street Journal,"the economy doesn't necessarily get better just because of monetary easing," says Mr. Takeda. "And you don't borrow just because rates are low."

"The economy doesn't necessarily get better just because of monetary easing," says Mr. Takeda. "And you don't borrow just because rates are low."

"In this semi-industrial prefecture of 1.9 million midway between Osaka and Hiroshima, the dearth of borrowers illustrates the reality behind Japan's economic-policy experiment: It is easier to increase the money supply than to get people to put the cash to work".

The problem is more acute in regions like Okayama, away from the big urban centers and global companies that have driven the country's recovery so far.

But decades of shrinking demand and falling wages have spooked potential borrowers. As borrowing dwindled, financial firms put more money in the safety of low-yielding government bonds. Currently, Japanese banks hold around 142 trillion yen, or about $1.4 trillion, in government bonds—roughly 14% of the market—versus about 2% in the U.S.

 Central bank has doubled bond purchases, buying the equivalent of 70% of new issues. It is an attempt to literally crowd banks and other investors out of the market and force them to put their money to work in other ways—through loans or investments in real estate, for example—to help stimulate the economy.

The move, though, is squeezing Japanese financial institutions, especially smaller ones, which say there is simply nowhere else they feel comfortable putting their money.

The tide of money released, along with fiscal spending, has weakened the yen, attracted outsiders to Japan's markets, bolstered exporter earnings and lifted some consumer spending—albeit much of it on one-off, feel-good luxuries. In the first six months of the year, Japan's economy had even expanded faster than those of its developed-country peers.

Too few European banks have been wound down - EBA's Enria

Too few European banks have been wound down over the past few years, the chairman of the European Banking Authority (EBA), Andrea Enria was quoted as saying in an interview published on Monday.

Enria told German daily Frankfurter Allgemeine Zeitung national governments were tending to want to keep their lenders operational rather than let them fail, which has slowed the process of repairing the banking sector.

"I am convinced that too few banks in Europe have been wound down and disappeared from the market so far. It has been fewer than 40 institutes, in the United States by comparison there were about 500," he said.

The EBA, Europe's top banking regulator, is preparing tests on the finances of top lenders, potentially paving the way for further multi-billion euro fundraising measures by banks deemed shaky.

Source: Reuters

Virtual virtuosity: Mercedes-Benz AMG Vision Gran Turismo

One of PlayStation’s most enduring titles, Gran Turismo, will launch version 6 on the eve of its 15th anniversary next month with a smattering of spectacular new rides. Mercedes-Benz is one of the manufacturers to have fully engaged its marketing engine for the launch and is helping kick-off the virtual exercise with a spectacular 585 hp virtual concept named the AMG Vision Gran Turismo.
Gran Turismo is one of the most enduring and respected driving series of any platform, not just Play Station. The levels of realism seen in the series has proven so effective that actual GT driving programs have created some of the best drivers in their respective classes. But without the beautifully rendered racers the series is nothing, which is where Mercedes-Benz steps in with its hyperbolic racer.

Based loosely on Mercedes-Benz gull-winged SLS (with elements that are also reminiscent of the Dodge Viper, Aston Martin One 77 and Bugatti Veyron), the Vision GT is outfitted (virtually) with a twin-turbocharged AMG V8 capable of 585 hp and 800 Nm (590 lb.ft) of torque. Weighing in at a scant 1,385 kg (3,053 lb) should give the concept a significant advantage against virtual Prius’ and others on track.

The sensual, muscular and suitably exaggerated design is built around an aluminum space frame with key elements in carbon fiber; because even in the virtual world, one can never have enough carbon fiber in the diet.

Mercedes-Benz notes the interior has influences from Formula 1 but with proper concept treatments such as a floating instrument panel above the steering wheel and F1 seats integrated into the footwell.

One key detail that remains distinctively Mercedes is the retro styled grille treatment. Reminiscent of the grille from the firm’s famous 1952 300 SL, the Vision GT’s frontal area features LED lights that can alter patterns throughout the race. The design is actually an extension of the diamond grille introduced into Mercedes new A-class vehicles.

Mercedes-Benz AMG Vision Gran Turismo concept will be a part of the initial GT6 release with other designs introduced over time via online updates.

A 1:1-scale model of the Mercedes-AMG Vision Gran Turismo will be unveiled at the opening of the new Mercedes-Benz Research & Development Center in California this week, but unfortunately this design looks set to remain a virtual reality.

Source: Mercedes Benz

Algorithm could drastically improve the performance of hearing aids

Despite some advances that have been made in the field, one of the continuing problems with hearing aids is the fact that they amplify background sound along with peoples' voices.
Researchers at The Ohio State University, however, may have a solution. They've developed a noise-filtering algorithm that's been shown to improve test subjects' recognition of spoken words by up to 90 percent.

In tests of the technology, 12 partially-deaf volunteers removed their hearing aids, then were asked to identify as many words as they could in recordings of speech obscured by background noise. They then took the test over, this time listening to the same recording after it had been "cleaned up" using the algorithm.

Their word comprehension increased by an average of 25 to almost 85 percent in cases where the speech had previously been obscured by random "background babble" (such as the noise produced by other peoples' voices) and by 35 to 85 percent when it had previously been obscured by more consistent "stationary noise" (such as the sound of an air conditioner).

When 12 students with full hearing listened to the speech obscured by noise, they actually scored lower than the first group did when listening to the enhanced speech. "That means that hearing-impaired people who had the benefit of this algorithm could hear better than students with no hearing loss," says Prof. Eric Healy, who is leading the research.

The algorithm was created by a team led by Prof. DeLiang "Leon" Wang. It is currently being commercialized, and is available for licensing from the university. Ultimately, it is hoped that it could find use in tiny digital hearing aids, or perhaps even in systems where the user's smartphone performs all the processing, then transmits the audio wirelessly to a paired earpiece.

Source: Gizmag

Ministry of Science and Tech in Vietnam pours $110 million into startups

 The Ministry of Science and Technology in Vietnam has secured $110 million, in a program called FIRST, mostly from the World Bank to pump into Vietnamese startups.

The FIRST program specifically aims to “foster scientific research, improve and advance the use of technology, encourage creativity, and ignite technology business for the purpose of improving the economy.” The program will last from 2014 until 2019 and it is not clear yet where specifically this money will go. $10 million had to be put up by the IDT investment fund , whose money is tied closely to investors in Kazakhstan and Russia.

For those not in the know, Russian investors have played an increasingly significant role in Vietnam’s startup ecosystem with big investments in search engines such as CocCoc and Wada, which both spent over $15 million each in the last two years on securing Vietnam’s search engine market. This project will allow them to be even closer to their customers.

It’s rumored that some of the $110 million will go to building an accelerator in Vietnam, but details have not been released yet. According to head minister Nguyen Quan, the ministry believes leveling up Vietnam’s technology ecosystem will be seminal to bringing Vietnam’s economy back in gear.

Source: TECHINASIA

Big Ethanol is losing support as its costs and harm grow.

  According to a report from the Wall Street Journal,"the Environmental Protection Agency announced that for the first time it is lowering the federal mandate that dictates how much ethanol must be blended into the nation's gasoline. It's about time. It's been about time from the moment the ethanol mandate came to life in the 1970s".

"The 16% reduction is a modest pullback, which EPA says will hold ethanol blends in gasoline at the standard 10% (E10). But we hope this is a precedent-setting victory. After 35 years of exaggerations about the benefits of renewable fuels, the industry has lost credibility".

"For years the biofuels lobby has boasted that its product was a green alternative to emissions from oil and gas. But a growing body of scientific evidence is showing that ethanol consumes so much energy and fertilizer, and requires planting so much marginal cropland, that the impact on air quality is at best neutral and on water quality may be negative".

"A report released earlier this year by the National Research Council concluded: "Although it may seem obvious that subsidizing biofuels should reduce CO2 emissions because they rely on renewable resources rather than fossil fuels, many studies we reviewed found the opposite." Environmental outfits such as the Environmental Working Group and the Sierra Club now oppose ethanol subsidies".

Since 1978 when the first "gasohol" subsidies were enacted, renewable fuel production tax credits have drained the Treasury of almost $40 billion. 

About 40% of corn production is now used not for food or livestock feed, but for fuel. This has raised the price of corn, and a 2009 study by the Congressional Budget Office found that in some years ethanol has raised retail food prices by 5% to 10% for everything from corn flakes to ground beef.

''EPA hopes to prevent a 2014 replay of the biofuels fiasco that hit the gasoline market this year. 

Despite a lack of demand, the ethanol lobby wants government to force a blend of E15 or higher on millions of consumers and force car makers to adapt their fleets to a fuel that offers less octane per mile traveled and no environmental benefit.

The EPA's modest reduction is a nod in the direction of market and technological reality. 

Democrats and Republicans who don't bow to Big Ethanol should unite to repeal the mandate for the good of consumers, business and the environment".

China: Zhengzhou city modifies household registration reform

More than 300 million migrant workers in China are living in cities without permanent residence cards and without the right to basic social services. Ten years ago, Zhengzhou, the capital of central China's Henan Province, launched a major reform of the household registration system, but was soon overwhelmed.

The traffic light is green, but you never seem to reach it. That’s what it’s like to drive in Zhengzhou today. Ten years ago the there were two million people here. But after a looser household registration controls in 2003 its population exploded.

“In August 2003, the government introduced a scheme that gave migrants household registration if they had relatives in the city. The registered population shot up by 150,000 in a year. The rapid population increase took its toll on public services.” Liu Daoxing, vice president of Henan Provincial Academy of Social Sciences, said.

It’s not just the roads that can’t cope. Schools became overcrowded, with classrooms in some primary schools packed with more than 90 children, double the normal size. Social welfare and insurance programs were also stretched with many newcomers eligible for government subsidies.

"Our school used to be a rather small one 10 years ago. In 2005, each class swelled to more than 90 students. So we had to expand it. Now 95% students are the children of migrant workers in our school.” Li Shuling, principal of Liulin No. 4 Primary School, said.

After eight months, Zhengzhou restored some of its restrictions on new registrations and returning to temporary residential permits. But it remained relatively open. In November this year, the city started issuing new temporary city residence cards. People who have them are entitled to education and other public services.

“Anyone who applied for the new residence card is entitled to at least 9 public services same as the locals. They can rent a public housing. Their children can go to school without paying more. And they can sign for the local’s driving school and register their new cars as well. ” Liu Jing with Zhengzhou Municipal Public Security Bureau said.

32-year-old Huang Yunguang was the first to get his new residence card. Like 3.4 million other migrants in the city, he decided to settle down, and raise a family here. The greater number of basic public services the new card entitles him to gives him confidence to live in the city.

“I’ve already bought an apartment here. What made me really happy is that my kids will have the same opportunity as local children to go to school. I can register my car as well. It’s more fair than before. ” Huang Yunguang, principal of Kindyroo International Early Childhood Development Academy, said.

China’s urbanization rate hit 52 percent in 2012. However, only 27 percent of the national population has an urban registration entitling them to residential welfare in the city. More than 300 million migrant workers have to go without. They want more reform of the residence-permit system and expansion and the right to basic public services.

Reporter: “Zhengzhou’s household registration reform was seen as one of the most drastic in China. It’s a mark of social progress, but it can only succeed if the infrastructure and facilities have been put into place.”

China: Opening-up state-owned sectors to private capital

On top of the government’s reform agenda is to open up more state-owned sectors including finance, telecoms and the railway industry to more private investment. Our reporter Guan Xin explored the trend of how internet companies are now venturing into the financial sector, and concluded that while the trend of freeing up China’s financial market is inevitable, the road will be bumpy.

A bold step into the financial sector hopefully one in the right direction.

Several well-known private companies have pushed into the financial industry, a sector long guarded by the state.

"Our goal is to provide investment service with an easy and fast experience. Everyone should be able to invest. Financial products should not have high threshold and stay far away from ordinary people." Liu Chao, Financial Business Dept. Manager of Alibaba Small & Micro Financial Services Group said.

Traditional banks, mostly state-owned ones, however, may view them as a threat. Particularly troubling to state banks is the competitive return that these new players offer on deposits.

Competing directly with state firms, especially with the likes of ICBC, the world’s biggest bank, seems like a daunting task for private firms. Despite the positive reaction from the market, private internet finance could find itself mired in regulation if it steps too far into the territory.

After the intervention of the Chinese Securities Regulatory Commission, Baidu took the "8% guaranteed annual return" out from its marketing slogan.

"Constraints are not a problem. To me constraints sometimes mean opportunities." Gu Yunling, Chief Risk Officer of Turbo Financial Group said.

Despite lacking clear rules, the government still has good reason not to stamp out the green shoots of the industry just yet.

The new trend draws great attention, not just for the future of online financing, but for the life of private business in China and the calibre of real reform currently underway. But the foray of internet companies into the financial sector despite huge risks, is living proof that the opening up of predominately state-owned industries to private capital is an inevitable trend.

Source:  CCTV