Iran says to continue building at Arak nuclear site despite deal

Iran will pursue construction at the Arak heavy-water reactor, Foreign Minister Mohammed Javad Zarif was quoted as saying on Wednesday, despite a deal with world powers to shelve a project they fear could yield plutonium for atomic bombs.

France, one of the six powers that negotiated Sunday's landmark initial accord with Iran to curb its disputed nuclear program, said in response to Zarif's statement that Tehran had to stick to what was agreed in the Geneva talks.

The uncompleted research reactor emerged as one of several big stumbling blocks in the marathon negotiations, in which Iran agreed to restrain its atomic activities for six months in return for limited sanctions relief. The agreement is intended to buy time for talks on a final settlement of the dispute.

Source: Reuters

Japan October retail sales rise 2.3 percent year on year

Japanese retail sales rose 2.3 percent in October from a year earlier, data showed on Thursday, in a sign that consumer spending could be picking up.

That compared with the median forecast for a 2.1 percent annual increase, data by the Ministry of Economy, Trade and Industry showed.

Source: Reuters

Brazil raises interest rate back to double digits

Brazil raised interest rates on Wednesday for the sixth straight time, ending a short-lived era of single-digit borrowing costs that failed to reignite Latin America's largest economy and instead fed inflation.

The central bank's monetary policy committee, known as Copom, unanimously raised its Selic to 10 percent from 9.50 percent -- its highest level since March of 2012. All but two of the 62 analysts polled by Reuters last week expected the bank to hike rates by half a percentage point for the fifth straight time after a quarter percentage point increase in April.

The bank removed from its decision statement a previous reference to monetary policy setting inflation on a declining trend for next year. Analysts saw that as a sign the bank may slow the pace of future rate hikes.

"With the changes in the statement, the bank signals it has become more data dependent to decide between a 25 and a 50-basis-point hike in the next meeting," said Mauricio Molan, chief economist with Santander Brasil.

The removal of the word inflation in the statement was interpreted by some economists to mean the bank was now going to shift its focus to future activity, which has struggled to pick up.

South Korea October current account surges to record surplus

South Korea's current account surplus surged to a record high in October as exports grew more than imports, official data showed on Thursday, underscoring still-weak domestic demand while adding to upward pressures on the won.

Asia's fourth-largest economy posted a current account surplus of $7.92 billion in October on a seasonally adjusted basis, up sharply from a revised $4.93 billion surplus in September, the Bank of Korea data showed.

So far this year, the current account surplus has reached $58.26 billion before seasonal adjustment, on course for a record $63 billion surplus for the whole of the year as forecast by the central bank.

"The current account surplus will likely continue through next year, although the amount will decrease to 4 percent of gross domestic product from a 5 percent level (seen) this year," said Suh Dae-il, an economist at KDB Daewoo Securities.

South Korea's annual GDP product reached $1.13 trillion last year and will likely grow to nearly $1.2 trillion this year.

"The continued surplus will spur the won's appreciation, although the won needs stronger economic growth to break above the 1,000 mark (per dollar)," he added.

The won is up only 0.9 percent against the dollar this year to date but its strength has stood out in the second half of the year, rising a whopping 7.6 percent since the end of June to end Wednesday's onshore trade at 1,061.1.

Exports grew 4.4 percent from September to a record $50.17 billion on a seasonally adjusted basis, while imports rose by 1.9 percent to $43.92 billion, producing a goods account surplus of $6.25 billion, the central bank data showed.

Relatively weak imports reflected still-depressed domestic demand as households prefer to save more and pay back debt instead of spending on cars or homes.

Source: Reuters

Australia business spending shows life, in big relief

Australia's decade-long boom in mining investment is not slowing nearly as quickly as many feared, while other sectors are beefing up spending at a rate that should greatly ease concerns about the economic outlook.

A closely-watched report from the Australian Bureau of Statistics out on Thursday showed businesses had upgraded their spending plans for 2013/14 well above expectations, with even once-laggard industries grasping the spending nettle.

That will be a huge relief to the Reserve Bank of Australia (RBA) which has been betting the farm on investment spreading outside of just mining.

"It's consistent with other sectors starting to take over as drivers of the economy as the mining sector slows," said Shane Oliver, chief economist at AMP Capital Investors.

"In a year's time, we're probably looking at growth heading back to around 3 percent, which is more optimistic that what the RBA was expressing," he added. "Ultimately, it would also be consistent with it leaving rates on hold ahead of a possible rate hike sometime around September or October next year."

Source: Reuters

Yen, commodity currencies feel the heat in thin month-end trade

The yen languished at fresh lows against the euro and dollar early in Asia on Thursday on track for one of its worst monthly performance this year, while sterling climbed on more evidence of a stronger economic recovery at home.

Commodity bloc currencies, grouping the Australian, New Zealand and Canadian dollars, also fell heavily against the greenback after investors latched onto U.S. data showing an improving jobs market and more cheerful consumers.

Traders said the overnight session was influenced by month-end book squaring ahead of the U.S. Thanksgiving holiday. U.S. financial markets will be shut on Thursday, followed by a half-session for the U.S. bond market on Friday.

Source: Reuters

Construction accident at Brazil World Cup stadium kills two

Two workers were killed on Wednesday when a crane collapsed at the stadium hosting the opening match of next year's World Cup of soccer, causing damage to the exterior and renewing questions about whether Brazil will be ready to host the event on time.

Construction workers had been racing to finish the stadium in Sao Paulo, Brazil's biggest city, prior to a December deadline imposed by world soccer body FIFA.

Andres Sanchez, a former president for the Corinthians soccer club who is helping oversee construction, told reporters that a crane collapsed while lifting a piece of the stadium's roof into place, sending the piece tumbling down.

He said the cause of the accident was still unclear, adding that any possible delay to construction was "the least of our worries."

Odebrecht SA, the industrial conglomerate building the stadium, said it planned to restart work at the site on Monday, but the union representing the workers said construction could be frozen for up to 30 days while authorities investigate.

Two workers at the site were killed, Sanchez said, with no additional casualties. 

We are currently awaiting further details from the authorities, who are investigating this tragic accident," Valcke added.

Delays surrounding the World Cup have extended well beyond stadiums. Numerous public transportation projects have been canceled or shelved, and workers have toiled 24 hours a day, seven days a week to finish a new terminal at Sao Paulo's international airport on time.

Six stadiums were used in the Confederations Cup warm-up tournament in June, but several of them were delivered later than FIFA wanted.

Another six, including Itaquerão, are due to be delivered by the end of December but even then some work will remain. Itaquerão, which was due to be finished on schedule, did not plan to install 20,000 temporary seats until February.

The accident also casts further scrutiny on Brazil's building standards after a death and injuries in construction projects earlier this year. One stadium also faces an 18-month closure to repair flaws in the roof.

Source: Reuters

Japan's tourist towns covet casinos

Ageing and shrinking, Japan's country towns want to gamble away their economic and demographic woes.

With lawmakers planning to submit legislation soon to openJapan to casino gambling, likely in time for the 2020 Olympics, several small cities, hot spring towns and tourist destinations are pushing to get one of the coveted licences.

   Japan is one of the world's last untapped gaming markets and, with a wealthy population and proximity to China, could generate $15 billion annually.

Japan with a wealthy population and proximity to China, could generate $15 billion annually from casinos, industry experts say. That would make it the world's second-largest gambling destination after Macau.

So far, the cities of Tokyo and Osaka have garnered much of the attention, but even towns like Sasebo, a once-proud shipbuilding centre in southern Japan, and the ageing port city of Otaru to the north, are hoping to set up casinos to draw tourists, generate tax revenues and reverse demographic decline.

"Hot springs, Japanese cuisine, Mt. Fuji and geisha (female entertainers) - these traditional Japanese things alone are not enough," said Kanekiyo Morita, a hotel executive who has proposed a pyramid-shaped casino in Atami, a hot springs town in central Japan.

"Japan's population is rapidly declining and, for tourist towns, getting foreigners to visit is extremely important."

Source: Reuters

Argentina's YPF says Repsol deal will attract Oil Investment

"Signing a deal between Repsol and the Argentine state will provide the confidence necessary to form new alliances with potential investors and drive non-conventional exploration,"YPF chief Miguel Galuccio told Reuters on Wednesday.
  Argentina, stands to become a major oil and gas producer as well, if the government can attract the tens of billions of dollars it needs to exploit the Vaca Muerta (Dead Cow) shale formation.

YPF is the biggest stake-holder in Vaca Muerta. The company estimates the field contains 661 billion barrels of oil and 1,181 trillion cubic feet of natural gas, making it one of the biggest shale reserves in the western hemisphere.

Despite Vaca Muerta's vast potential, investment in the formation has come slowly so far.

Dow Chemical Co has signed on to invest up to $120 million in 16 Vaca Muerta gas wells, and U.S. oil company Chevron Corp  has agreed to invest $1.24 billion in the area.

To clinch the deals, Argentina has allowed the companies to export tax-free up to 20 percent of what they produce. Export revenue of companies that invest at least $1 billion over five years is exempt from government foreign exchange controls.

Source: Reuters

China's Shuanghui to bid for Spain's Campofrio

China's Shuanghui International Holdings plans to launch a counterbid for Spanish meat processor Campofrio , newspaper El Mundo said on Wednesday, citing sources close to a major financing deal for the Chinese group.

Campofrio, a household name in Spain whose products include hot dogs and canned ham, is the target of a 6.8 euros-per-share takeover offer from Mexican frozen food company Sigma AlimentosSGMAM.UL, valuing the company at 695 million euros ($943 million).

Shuanghui inherited a 37 percent stake in Campofrio when it bought U.S. pork producer Smithfield Foods for $4.7 billion earlier this year.

It said in September it planned to reduce the holding to less than 30 percent by December, below the threshold which would require it to make a full takeover bid under Spanish market rules, and giving it time to consider its options.

However, after signing an $8 billion credit line with the Bank of China on Wednesday to finance its international expansion, Spanish daily El Mundo said Shuanghui now plans to fight for control of Campofrio.

Source: Reuters

Spain's Repsol says board backs preliminary YPF deal

"The board of Spain's Repsol  unanimously agreed on Wednesday to start formal talks with Argentina over a compensation offer for assets Buenos Aires seized last year that could end an 18-month standoff between the two countries".

"Sources with knowledge of the matter have told Reuters that the deal is worth $5 billion (£3.07 billion), half of what Repsol was initially demanding after Argentina seized its majority stake in energy company YPF in 2012".

"With the aim of developing a preliminary agreement, Repsol has decided to start talks soon between its teams and the Argentine government to find a fair, efficient and quick solution to the controversy," Repsol said in a statement, without providing details of the offer.

It has hired an international investment bank to oversee the process.

  So any deal has significance beyond Repsol's own interests, particularly for Argentina as it seeks to restore investor confidence.

Argentine President Cristina Fernandez is trying to attract the billions of dollars needed to exploit the Vaca Muerta (Dead Cow) shale formation to help bolster central bank reserves drained in part by costly oil and gas imports.

"Signing a deal between Repsol and the Argentine state will provide the confidence necessary to form new alliances with potential investors and drive non-conventional exploration," YPF chief Miguel Galuccio told Reuters in an interview conducted by email.

Sources have said the settlement, which has the backing of the Argentine and Spanish governments, was likely to be in the form of U.S. dollar-denominated 10-year sovereign bonds rather than cash.

Repsol said its entire board voted to support the Spanish oil company's strategy and management team on Wednesday, with the exception of Pemex, which holds 9.4 percent of Repsol.

In a separate statement, Pemex said it voted against Repsol's current management "because it had not offered desirable results for the company and its shareholders", but said it would continue to work in support of the company's best interests.

Repsol's other main shareholders include Catalan lender La Caixa with 12 percent, indebted Spanish builder Sacyr  with 9.5 percent and Singapore state fund Temasek with 6.3 percent.

Source: Reuters

Nikkei closes in on 5-1/2 year peak as yen stumbles

Asian shares were in a buoyant mood, with Japanese stocks charging towards a 5-1/2 year peak on Thursday after the yen fell sharply on the back of relatively positive U.S. economic data.

U.S. jobless claims unexpectedly fell last week and the November Thomson Reuters/University of Michigan consumer confidence improved from a preliminary reading, while the Chicago PMI held up better than expected last month after surging in October.

A soft October durable goods report was the only dent to an otherwise upbeat set of figures.

"The U.S. economic data were very pro-tapering, despite the weakness in the durable goods data," Steven Englander, global head of G10 FX strategy at Citigroup, wrote in a note.

 Many investors expect the Fed will begin tapering in the first quarter of next year if the economy continues to improve.

"On tapering and USD, we have been struck by how much of the market continues to assign a very low probability of a December or January tapering," Englander said.

"Investors are focused on next week's labour market release, but the stronger than expected data suggests that some revision of probabilities is merited even going into the numbers."

The Nikkei is up 50 percent this year in local currency terms, outpacing a 26.7 percent jump in the U.S. S&P 500 and a 16 percent rise in the pan-European STOXX 600 index.

Investors have been using the yen as a funding currency for carry trades with the Bank of Japan committed to keeping ultra-loose monetary policy to shore up growth -- a contrast with the Fed which is moving towards a turn in policy.

Source: Reuters

US Market Close

U.S. stocks posted modest gains ahead of tomorrow's Thanksgiving holiday, on which all domestic markets will be closed. Equities found support from a profusion of mainly upbeat domestic reports, including an unexpected drop in jobless claims and a larger-than-forecasted upward revision to consumer sentiment. Treasuries were mostly lower following the domestic data, which also included a smaller-than-expected deceleration in regional manufacturing growth, and a fourth-straight month of improvement for Leading Indicators. Additionally, separate reports showed U.S. durable goods orders fell and mortgage applications dipped. On the equity front, Hewlett-Packard Co posted stronger-than-expected 4Q results, while CVS Caremark Corp announced an agreement to acquire Coram LLC, a business unit of Apria Healthcare Group Inc, for about $2.1 billion. The U.S. dollar was higher, while gold and crude oil prices were lower.
The Dow Jones Industrial Average (DJIA) was 25 points (0.2%) higher at 16,097, the S&P 500 Index increased 4 points (0.2%) to 1,807, while the Nasdaq Composite gained 27 points (0.7%) to 4,045. In light volume, 522 million shares were traded on the NYSE, and 1.5 billion shares changed hands on the Nasdaq. WTI crude oil fell $1.38 to $92.30 per barrel, wholesale gasoline gained $0.01 to $2.69 per gallon, and the Bloomberg gold spot price declined $4.44 to $1,238.41 per ounce. Elsewhere, the Dollar Index-a comparison of the US dollar to six major world currencies-was 0.2% higher at 80.74. 

Source;SCWHAB

Land prices rise in Japan's cities

Land prices in Japan's major cities continued their longest rising streak since the global financial crisis as demand for commercial and residential properties increased at most locations, a sign that the nation's economic recovery is taking root.

A government survey, released Tuesday. showed that land prices in the country's major urban areas increased in more than two-thirds of the places surveyed in the July-September period, underscoring a gradual but steady recovery trend in Japan's real-estate market.

After remaining dormant for years following the collapse of Japan's asset bubble in the early 1990s, the property market has been showing signs of life recently. The rising trend has likely been accelerated by Prime Minister Shinzo Abe's pro-growth policies, property buying in anticipation of a sales-tax increase next spring and Tokyo's successful bid for the 2020 Olympics.

"Shifts toward rising trends continue to be observed broadly," the survey said.

Improved economic sentiment resulting from the Bank of Japan's monetary-easing program-part of the prime minister's effort to revitalize the economy-and expectations for higher interest rates ahead are driving people to buy real estate, a land ministry official said. He played down the impact of residential buying in anticipation of April's sales-tax rise, saying the effects of so-called rush-demand are still limited.

The quarterly survey of residential and commercial land prices by the ministry showed that of 150 areas, mainly in Tokyo, Osaka and Nagoya, prices rose in 107 locations, up from 99 in the previous survey. Prices were flat in 34 areas, down from 41 in the previous survey, while they fell in 9 areas, down from 10.

Source: NewsOnJapan

The damage from typhoons in Japan in the 1990s was 35 times greater than what it was in the 1970s

Northern revelers swimming the balmy seas off Okinawa just before typhoon Haiyun struck the Philippines must have noticed the waters were warmer this year. Around 28 degrees Celsius, compared to an air temperature of 26 degrees Celsius. Great for a last bit of summer sun before the long winter in Tokyo but deadly for some of the peoples of the Pacific and their economies.

Tropical cyclones like Haiyun typically form over large bodies of relatively warm water. With record high temperatures this year, the oceans around the East Asian seas have supplied such warmth in abundance, generating megastorms, which have hit nations like the Philippines hard, both physically and economically.

Further misery from natural disasters seems unavoidable. And the wealthier islands of Japan -- the world's third-biggest economy - will also share the financial burden. Japan also bares the brunt of vicious typhoons, which are forecast to grow even stronger in the near future, according to experts.

Japan is located in the middle of what is known as Typhoon Alley. Reinsurer Munich Re reckons that, between 1980 and 2008, eight of the 10 costliest natural disasters in Asia were typhoons that hit Japan. To be sure, such high costs may be due to an increase in insurance policies taken out in Japan, says climate scientist Miguel Esteban at the University of Tokyo. "Japan has experienced severe physical damage and other, indirect economic consequences of these weather systems.

These include the loss in economic productivity due to downtime in the public transportation system or other important industries, such as ports," he wrote in a recent paper. Relying almost entirely on imports of food and energy, Japan Inc. is more vulnerable to the disruptive effects of natural disasters than other developed states.

According to a report on climate change by the U.K. Embassy in Japan, the cost of direct damage from typhoons in Japan in the 1990s was 35 times greater than what it was in the 1970s, while the cost of damage related to flooding was eight times as much.

If that weren't enough, the effects of climate change are expected to spawn "super-typhoons," packing winds faster than a bullet train in the second half of this century, say Japanese researchers.

Source: NewsOnJapan

Atlantic tuna quotas unchanged for 2014 despite Japan opposition

Annual fishing quotas for bluefin tuna in the East Atlantic and Mediterranean will remain unchanged in 2014, an international meeting on tuna fishing decided Monday, despite stiff opposition from Japan.

After marathon talks, a conference of the International Commission for the Conservation of Atlantic Tunas (ICCAT) concluded that the annual quotas would remain at 13,400 tons in the eastern Atlantic and 1,750 tons in the western Atlantic.Sergi Tudela, the head of fisheries in the Mediterranean for the wildlife conservation group WWF, said while the meeting was underway that Japan and other "contracting parties" had pressed for quotas to be increased by 400 tons.
Japan is the world's biggest consumer of tuna, which is highly prized in sushi restaurants.
Some 80% of Atlantic bluefin tuna fished out of the Mediterranean ends up in the Japanese sushi market.
Stocks of bluefin tuna are thought to have fallen by at least 85% in the Mediterranean and eastern Atlantic, where they come to spawn in the warmer waters, since the start of the industrial fishing era.
Fish stocks now seem to have stabilised, which a new scientific count is expected to confirm in February.

NewsOnJapan

US AND JAPAN flying planes over Chinese "ADIZ". Who is the Hawkish Hawk ?

Two unarmed U.S. B-52 bombers flew over disputed islands on a training mission in the East China Sea without informing Beijing while Japan's main airlines ignored Chinese authorities when their planes passed through a new airspace defense zone on Wednesday.

The defiance from Japan and its ally the United States over China's new identification rules raises the stakes in a territorial standoff between Beijing and Tokyo over the islands and challenges China to make the next move.

China published coordinates for an East China Sea Air Defense Identification Zone over the weekend and warned it would take "defensive emergency measures" against aircraft that failed to identify themselves properly. The zone is about two thirds the size of Britain.

"If the United States conducts two or three more flights like this, China will be forced to respond. If China can only respond verbally it would be humiliating," said Sun Zhe, a professor at the Center for U.S.-China Relations at Tsinghua University in Beijing.

"The concept of the paper tiger is very important. All sides face it."

China's Defense Ministry said it had monitored the entire progress of the U.S. bombers through the zone on Tuesday Asian time. A Pentagon spokesman said the planes had neither been observed nor contacted by Chinese aircraft.

Chinese Foreign Ministry spokesman Qin Gang, when asked how China would respond to future infractions of the zone, said the country would "make an appropriate response" that depended on the "situation and degree of threat".

Source: NewsOnJapan

Chinese Foreign Ministry No need to Panic about East China Sea "ADIZ"

Chinese Foreign Ministry spokesman Qin Gang said on Wednesday that there was no need for countries to panic over China's setup of the East China Sea Air Defense Identification Zone (ADIZ).

Qin made the remarks at a daily news briefing when asked to comment on Japanese media reports that Japan is considering expanding its ADIZ in the Pacific Ocean after China announced the establishment of its zone on Saturday.

"I have yet to learn the official news [about Japan's expansion of ADIZ]," Qin said.

He stressed that China's setup of the ADIZ is a justified act of self-defence, not one aimed at any specific country or target. "Relevant countries need not make a fuss, panic or relate themselves to it," according to the spokesman.

Asked if China will consider to establish a similar zone in the South China Sea, the spokesman said China will set up other ADIZs in due time after completing relevant preparations.

Source: Xinhua

Chinese ambassador to UN: China to defend airspace

When asked about Pentagon-confirmed reports that two U.S. military aircraft flew around the Diaoyu islands, China's ambassador to the United Nations, Liu Jieyi, said it is of China’s legitimate right to defend its airspace.

The Chinese Defense Ministry has already made it clear that the establishment of the sea air defense identification zone aims to set aside time for early warning of potential threats and helps defend the country's airspace.

"Well it’s natural, it’s indeed the right of every country to defend its airspace and also make sure that its territorial integrity, its sovereignty are safeguarded. This is a normal arrangement and I think the spokesperson from the Defense Ministry of China has already made that very clear," Liu said.

"I think you can check with that statement and find out why it is the right of China and indeed it is the right for countries to make sure that its sovereignty and its airspace is safe."

Source: Xinhua

Premier Li wants greater balance in Europe

 Chinese Premier Li Keqiang on Tuesday urged Central and Eastern European (CEE) countries to strive with China for all-dimensional, wide-ranging and multi-tier cooperation.

China and CEE countries are all emerging-market economies at similar phases of development, and they are all faced with the urgent task of restructuring their economies, innovating, and promoting competitiveness, Li said here when addressing the third China-CEE economic and trade forum.

Thus cooperation between China and CEE countries enjoys abundant opportunities and great potential, said Li, noting that their trade has withstood the impact of the international financial crisis and the European debt crisis and their practical cooperation has been brimming with vigor and vitality.

With the international economic situation undergoing profound and complex changes, China and CEE countries need to explore new ways to deepen their practical cooperation and expand their common interests, he added.

By doing so, Li said, China and CEE countries can beef up their cooperation in an all-dimensional, wide-ranging and multi-tier manner and accomplish all-win common development.

The premier proposed that China and CEE countries dedicate the next year to promoting trade and investment and work together to double their trade in five years.

China will host a series of programs, including a roundtable meeting of Chinese and CEE trade ministers and an exhibition of CEE products to accelerate the growth of China-CEE trade, Li said.

Beijing stands ready to increase the imports of competitive CEE products and encourage more Chinese tourists to visit CEE countries, added the Chinese premier.

Meanwhile, Li called for the launching of a number of large infrastructure projects, proposing to combine China's relatively mature and full-fledged industry of equipment manufacturing and the needs of CEE countries for infrastructure improvement.

In that way, China and CEE countries can steadily expand the scope and raise the level of their practical cooperation, said Li, adding that priority areas include high-speed and regular railway, nuclear and other forms of power, road, port and telecommunications.

The premier also suggested that China and CEE countries make full use of relevant financing mechanisms and encourage their financial institutions to set up branches in each other's jurisdictions and enlarge the scale of currency swap and local currency settlement.

Moreover, Li proposed that China and CEE countries boost corporate investment cooperation, work out a framework agreement on industrial investment, and rev up cooperation between Chinese and CEE small- and medium-sized enterprises.

He urged the governments, enterprises, think tanks and media of China and CEE countries to play their unique roles and work together to push China-CEE cooperation further forward more rapidly and steadily.

The premier stressed that China's development cannot be separated from cooperation with other countries, and the world's prosperity and stability need a growing and advancing China.

Although the global economic recovery remains anemic and the Chinese economy once encountered increasing downward pressure, China has adhered to the approach of pursing improvement on the basis of maintaining stability and endeavored to stimulate market vitality and corporate creativity.

China, added the premier, is fully confident in realizing the major goals of this year's socio-economic development and thus laying a solid foundation for the economic growth next year.

As the recently-held third plenary session of the 18th Communist Party of China Central Committee mapped out a comprehensive reform plan, China will further expand the scope of its opening-up, allow the market to play a decisive role in resource allocation, and realize a more efficient, balanced and sustainable development, Li said.

China is willing to share with Europe and the world the opportunities for common development, he said, adding that as long as China and CEE countries stick to the principles of mutual benefit, common development, mutual respect and equality, their cooperation will become increasingly promising and fruitful.

Li's Romanian counterpart, Victor Ponta, and 12 other CEE prime ministers attended the event at the palace of parliament, which drew more than 1,000 government officials and business leaders.

In his remarks to the forum, Ponta noted that CEE-China economic and trade cooperation is quite fruitful and laid a robust foundation for the development of CEE-China relations.

CEE countries, he added, will further improve their investment environment and promote their partnership and cooperation with China, so as to facilitate the sustainable development of both China and CEE countries.

CEE-China cooperation is an important component of Europe-China ties, and is conducive to the development both of Europe and of the Europe-China relationship, Ponta said.

CEE countries and China should seize the opportunities, respect and learn from each other, and work together to lift CEE-China cooperation and the Europe-China relationship to higher levels.

Following the forum, Li and leaders of 16 CEE countries visited an exhibition of China Railway Corporation and other infrastructure constructors and equipment manufacturers.

In front of a 21-meter-long model of Chinese high-speed train, which drew the interest of the CEE leaders, Li said that with mature high-speed rail technologies and rich construction experiences, China has marked competitive advantages and is fully capable of coping with different national conditions and meeting various market needs.

Infrastructure and equipment manufacturing constitute a pillar of China-CEE win-win cooperation, said Li, adding that the Chinese and CEE governments have the responsibility to foster a favorable environment for their enterprises to tap further into their potential and strengthen win-win cooperation.

Also on Tuesday, Li and leaders of 16 CEE countries attended the second China-CEE leaders' meeting.

Romania is the first leg of Li's ongoing two-nation foreign trip, which also includes an official visit to the CEE country.

Later he will travel to the Uzbek capital of Tashkent for a prime ministers' meeting of the Shanghai Cooperation Organization.

Source: Xinhua

ArtOnline: "El Jardin de Nuestros Recuerdos" Francisco Vilchez Peruvian painter Oil in canvas. Discover Talent

Italy's Silvio Berlusconi Ousted From Senate

Silvio Berlusconi lost his seat in Italy’s Senate, marking the culmination of nearly four months of political furor following his August conviction for tax fraud and dealing a body blow to the man who has dominated Italian politics for nearly two decades.

Italy’s Senate voted to strip Mr. Berlusconi of his seat, bringing to an end a procedure that was set in motion in August when the media mogul was convicted of tax fraud.

Source: the Wall Street Journal

Since 2008, Latin America is by far the fastest growing pharmaceutical market in the world

Getting older and wealthier by the day, Latin Americans increasingly visit their pharmacy. Since 2008, the region is by far the fastest growing pharmaceutical market in the world. By 2017, Brazil will become the fourth largest pharma market, behind the U.S., China and Japan. But, this impressive growth story is not a victory for multinationals. The real winners are Latin American generic drug makers and locally owned retailers.

In the course of two decades, Latin American generics have evolved from a nuisance to the international laboratories into the dominant force in most medication categories. The most accommodating market in the region is Argentina. Patents were only first legally recognized starting in 2000, so as a result, many international drugs marketed there carry no patent protection. Non-original drugs are classified as Biosimilars (not generics) and thus do not require proof of bioequivalence. Furthermore, data exclusivity, the most important step of protecting original formulas in developed markets, is not even recognized in Argentina. Argentina’s lax intellectual property protection has enabled the generic industry to thrive. Companies like Laboratorios Raffo, Driburg, Grupo Bago and Biosidus are some of the largest private sector employers in Argentina and the pride of Kirchner administrations, under whose favorable regulatory regime they have expanded.

Former Brazilian health minister, Jose Serra famously stood up to the international pharmaceutical industry in the 1990s by criticizing the lengthy patent protections of expensive HIV drugs. After winning their showdown with global pharma, Brazil began opening the regulatory door to more generics. Though considered more respectful of intellectual property rights than Argentina, Brazil nonetheless supports one of the world’s largest generic industries. EMS, Brazil’s largest drug laboratory, began producing generics in 2000, and today employs over 5,000 Brazilians and exports generics to 40 plus countries. Even Mexico, bound by the rigors of Nafta, has developed an impressive homegrown generics industry.

Generics can be as much as 70 percent cheaper than original drugs. Since medical prescriptions in Latin American countries must only list the medical name and not the brand name, pharmacists tend to recommend generics. In spite of their affordability, generics are mindful to incorporate a healthy margin for pharmacy retailers into their pricing structure.

The accessible prices of generics has helped unleash consumer demand for pharmaceuticals. Rising incomes and an aging population further bolsters medication volumes. The pharmacy retail sector is quickly evolving to meet demand. Chile was the first to modernize and consolidate its pharmacies. Farmacias Ahumada S.A. (Fasa), based in Santiago, is the largest drugstore chain in Latin America and one of the largest in the world in number of outlets, with a network of nearly 1,000 pharmacies in Chile, Peru, Brazil, and Mexico.

Consolidation is underway in other markets, most evidently in Brazil and Mexico where independents are losing ground to well-lit large size pharmacy chain stores modeled after U.S. and UK equivalents where a high percentage of sales come from OTC and non-medical related items. In Mexico and Brazil, the larger pharmacy chains are striving to stay ahead of the process and prevent foreign competitors from entering. The greatest threat to pharmacy chains comes from non-medical retailers like Walmart, who mastered the pharma product category in its U.S. stores and now sells more than 250 generics in its Mexican outlets. Almost one fourth of all pharmaceutical sales in Mexico today go through non-medical retailers including Superama, and Soriana, two of the largest supermarket chains.

Latin America’s $100 billion pharmaceutical industry is today dominated by Latin American firms. Brazilian, Argentine and Cuban generics producers already export their goods to other emerging markets in Asia, Africa and the mid-East. It may not be long before Latin American pharmacy giants do the same. Perhaps then, the multinational players will finally act upon the opportunities south of the Rio Grande.

Source: LATINTRADE

Peru exported 97,450 tons of citrus by the end of the 2013 season

The Procitrus guild informed that Peruvian citrus exports reached 97,450 MT, thus meeting the expectations of agricultural exporters, who had estimated this year's shipments would increase by 11% compared to last year.

In this regard, Sergio Castillo, president of the guild of citrus growers, reported that Britain was Peru's main destination, accounting for 33% of shipments. It was followed by the Netherlands with 23%, the U.S. with 20% and Canada with 12%. A total of 97,450 MT were sent until mid- September.

56% of shipments were of tangerines, 31% of tangelos, 10% of oranges and 3% of grapefruit and lemons. Prices increased 10% over the last year. "A kilogram of tangerines was sold at U.S. $0.80 FOB this season," he said.

However, he stressed that, just like avocados, the citrus campaign should have ended in August, but that shipments had continued for two more weeks as there were still late crops of orange in Ica and Lima. "With these shipments, we might even end the year with a 12% growth," he said.

"It was a campaign that met expectations. We managed to export the volumes that we planned to and grew by more than 10%. On the other hand, the local market has been good. Procitrus is paying special attention to the domestic market, as Peruvians consume 90% of what is produced in the country," he analyzed.

He also noted that there were no new phytosanitary problems during this campaign and that they were able to handle the pests and viruses that already existed. "There have been no new pests. We only had those that we already knew and we handled them. That's why Procitrus works with producers and we give them support on biological control and chemical fertilization advice in their fields," he said.

Finally, he projected that shipments would increase in 2014. "If there is no climatic anomaly in the coming months, there will be a good harvest for the next season. Moreover, the citrus for export that has been planted in the last four years, at least 1,500 new hectares, will be coming into production," he said.

" There will be more fruit available for that activity," he said, adding that they are also working with the National Service of Agrarian Health (Senasa) to establish phytosanitary protocols for entry of Peruvian citrus into Brazil, Korea, Japan and other Asian countries.

Source: Agraria.pe

EU: Cherries from Chile in short supply

EU: Cherries from Chile in short supply 

Untimely frosts during Chile's spring have led to diminished production of cherries from there. Subsequent low volumes have made for high prices, and European buyers are working hard to secure cherries from South America.

“We had a very late and very bad frost this spring, around the second week of September, that damaged flowers and setting fruit,” said SudFruit's Jacques Joubert. SudFruit is based in Argentina, but they source fruit from both Chile and Argentina for export to Europe. Joubert noted that the frost, which has also affected production of other crops throughout South America, has made it tough to find the fruit his clients want. Persistent demand combined with scarce supplies have made for high prices.

“Production of cherries from Chile has been down by 60 percent,” said Joubert. “Prices have been very good.” The price for a five-pound box of South American cherries in Europe, according to Joubert, is currently hovering around 60 dollars a box, though he noted that that same box of cherries would likely have brought twice that amount during the first week of the season. As it stands, he expects current prices to remain stable until after the first week of January, especially considering supplies from South Africa are not likely to satisfy pent-up demand.

“South Africa, which is another source of cherries, got a lot of early rains, so the cherries got too wet and there have been quality problems,” said Joubert. “So everyone's asking for cherries, but they can't find them.” Although prices remain high, Joubert explained that exporters in Argentina are having a tough time turning a profit because of circumstances relating to government policy about the exchange rate. While the cost SudFruit pays growers for their cherries climbs, Joubert said that government policy capping the current exchange rate has made it difficult for them. But despite the circumstances, Joubert said they'll continue to supply fruit to their existing customers and will welcome any new customers looking for cherries, even if they have to take a hit in the short-term.

“If there's a shortage now and I can supply clients,” said Joubert, “then I'm sure they'll be back when there's plenty of fruit.”

Source: Freshplaza

Peruvian mango export 2012/13 exceeds expectations

Peruvian mango export 2012/13 exceeds expectations

Around 105,000 tonnes of mangoes were grown for export in Peru in season 2012/13, reports the German Agrarmarkt Informations-Gesellschaft (AMI) on its website. This is 46% more than in the season before, according to the Peruvian union of mango exporters (APEM). In the Autumn of 2012 a harvest amount of 100,000 tonnes was expected for the export season from November 2012 until March 2013. These expectations were exceeded. Despite this, the harvest amount was still 19% lower than the high harvest amount in season 2010/11. 130,000 tonnes of mangoes were harvest in that year.

In Peru mangoes for export are currently grown on an area of 22,500 hectares. Unlike in the previous five to six years there are no plans to extend this area at the moment. For now the producers are focussing on improving to quality and productivity. According to Juan Carlos Rivera of the APEM union, the current supply is big enough to cover the demand. He says the market is in balance and an extension of the area is unnecessary at the moment. The production for export is mainly concentrated in the region Piura (74%). The regions Lambayeque (18%) and Ancash (8%) also play an important role.

 

The main export variety is Kent. This variety makes up around 90% of the export. The main sales markets for the export are the US, which is the destination for around 39% of the export amounts, followed by Holland 37%, Great Britain (10%) and Canada (5%).

  

Source:Freshplaza

iPhone 5S and 5C price drop: one Philippine telco lowers monthly fees, adds prepaid option

"The two telcos in the Philippines launched their post paid for the iPhone 5S and 5C earlier this month. But now Globe Telecom is being more aggressive and has dropped its price plans for both the new iPhone models. Plus, it’s now offering the same phones for prepaid users.

When Globe first revealed its iPhone plans, subscribers could get an iPhone 5C 16GB on a Php 1,599 ($37) monthly plan and the iPhone 5S 16GB at Php 1,999 ($46) monthly plan. The phones are locked on a 24-month contract. This is through its iPhone Forever Plan whereby users can trade-in their old phone and just add an additional sum depending on the value of the traded phone.

This time around, Globe has put its iPhone plans under the MySuperPlan offering, which lets subscribers customize their call, SMS and web data subscriptions. Consumers can now get an iPhone 5C 16GB at a Php 1,349 ($31) monthly fee. Breaking this down, users will have a monthly plan of Php 499 ($11) plus its monthly cash-out for the unit of Php 850 ($19) plan. Meanwhile, the iPhone 5S 16GB is repriced to a Php 1,799 ($41) monthly at Plan Php 999 ($23) and the unit’s monthly cash-out of Php P800 ($18).

The iPhone 5C postpaid bundle comes with 300MB of LTE surfing and free calls and texts. And the iPhone 5S is bundled with unlimited LTE surfing and free calls and texts. Its entire plan choices are already available on the Globe website for both the iPhone5c and iPhone 5s.

In comparison, its competitor Smart Communications is offering its iPhone 5C and 5S for Php 500 ($11) per month. However users have to pay a one-time cash out of Php 20,000 ($457) for the iPhone 5C and Php 23,800 ($544) for the iPhone 5S. Smart also has prepaid options under what it calls the Freedom Plan.

It’s a continuous battle between these two big telcos in the Philippines. Price is always a factor for consumers, of course, but they also need to look at whether the add-ons on these plans suit their needs.

Source:TECHINASIA

Chinese Market, the Promised land for Tequila

China has already developed a taste for French wine and Scotch whisky. Now, Mexico is asking the Middle Kingdom to give tequila a shot.

During his June visit to Mexico, Chinese President Xi Jinping signed a trade deal that lifted restrictions on imports of Mexico’s finest, 100 percent blue agave tequila. Along with efforts to boost Mexican pork shipments, the agreement strives to narrow a yawning trade gap that favors China 10 to 1 and represents the worst trade imbalance in Latin America.

If all goes according to plan, distillers will be the big winners, and some already have boots on the ground.

“We’re thinking tequila can easily become one of the biggest and most expensive imports into China, in spirits,” said William Jarod Webb, Asia field support director for Dos Lunas Spirits, LLC.

Webb boarded a plane to China two weeks before President Jinping arrived in Mexico. The game plan, he said, is to be the first horse out of the gate, and to replicate the success of fine cognac – China’s No. 1 imported liquor and a favorite among China’s well-healed and emergent professionals.

Mexico’s national tequila industry chamber forecasts exports to China will catch fire, hitting 2.6 million gallons of superior quality tequila in five years. That would make China its second largest market for 100 percent agave tequila after the United States, which imports about 13.7 million gallons a year.

The chamber plans to familiarize Chinese consumers with “sangritas” and “margaritas” through tastings later this year, and by placing bottles in prestigious clubs and restaurants.

Distillers also will have to contend with the lofty import taxes China slaps on luxury items. Webb, at Dos Lunas, estimated a bottle of the company’s reposado tequila, aged in oak barrels, would cost between $80 and $100 in China, about double U.S. prices. The distiller will eventually make its grand reserve bottles available in China too. Aged over 10 years in Spanish cherry wood barrels, its grand reserve tequila sells for $2,500 a bottle in the United States.

“What we have to do for these (export) figures to become a reality is work very hard in the market,” he said, “because 1.3 billion consumers have to get to know the drink. They have to see it… they have to try it.”

Source: Latin Trade

IMF: Sector-Level Productivity,Structural Change and Rebalancing in China

"While patterns of structural transformation across China´s provinces are broadly in line with international experience,one important difference is in labor productivity differentials between
services and the rest of the economy. Specifically the gap between labor productivity in the rest
of the economy and services has widened across China´s provinces as they have moved from low
to middle income,which is contrary to the trend observed in cross-country experience. Evidence from a panel of China´s provinces suggest that credit and labor market frictions have inhibited labor productivity growth in services relatively more than in the rest of the economy. Reducing these frictions
is essential for achieving the next level of China´s development,one in which the service sector will need to play a more prominent role as an engine of growth.The evidence also suggests that improving labor productivity in services will lift the consumption share of GDP,thereby advancing the needed rebalancing of domestic demand in China".

Source: IMF Working Paper

Janus Friis and Niklas Zennström, the duo who cofounded Skype.

Everyone in Silicon Valley knows the story of Janus Friis and Niklas Zennström, the Scandinavian duo who cofounded Skype.

Friis and Zennström first worked together at Tele2, a European telco, in the '90s. They then launched Kazaa, a file-sharing application, in 2001. Next came Skype, an Internet-calling app which drew on the same kind of peer-to-peer technology as Kazaa.

After selling Skype to eBay in 2005 for $3.1 billion, the two cofounded Atomico in 2006, as well as an online-video startup, Joost. They tussled with eBay after the company tried to sell Skype to a group of private investors, working their way into the deal  through a legal settlement and thereby profiting again when Microsoft bought Skype for $8.5 billion in 2011. Joost, meanwhile,was sold for a song.

As the Skype battle settled down, they raised a second fund of $165 million in 2010. Shortly afterwards, Atomico stopped describing itself as a venture fund cofounded by Zennström,and Friisand started giving Zennström sole credit. In June 2010, an article about the funding of Rdio, an Internet radio service, mentioned Zennström, Friis, and Atomico separately as investors. By November 2010, Friis was no longer listed as part of Atomico's "international network."

Both Zennström and Friis have employed early Skype employees in their subsequent ventures. The LinkedIn profile of one of them,Chris Burton, gives some clue as to the exact timing. In August 2008, he joined Atomico from Skype. In May 2010, he began two jobs: a project manager role at Rdio, and a technology consultant gig for Janus Friis. He ended work at Atomico in June 2010. In February 2011, he started working at Vdio, an as-yet-unlaunched online-video startup founded by Friis.

After GigaOm reported the launch of Vdio last fall, a rep for Atomico wrote in to the publication to note that Zennström was not involved.

Friis's website does not mention Atomico, displaying only the logos of Skype, Rdio, and Vdio. He did not respond to an email sent requesting comment.

Source: Business Insider