Ukraine President Denounces European Union Pact, Calls for New Terms. And Russia still longing for its former U.S.S.R.

  According to an article published on the Wall Street Journal,"while some powerful businessmen seemed to publicly lean toward the demonstrators, Mr. Yanukovych offered an amnesty for those who were arrested during the crackdown and promised a moratorium on the use of force, but he rejected opposition demands that he resign or call early elections and took a hard line on the EU deal, calling it "not only bad but against the interests of Ukraine."

Two days after promising the EU's top foreign policy envoy that he would sign the accord, Mr. Yanukovych said that the Ukrainian officials who negotiated the pact for Kiev would be investigated "and held responsible."

Mr. Yanukovych said the EU pact couldn't be signed unless new terms were reached that minimized what he said would be the negative impact on Ukraine's economy.

The 63-year-old president has been maneuvering between the EU and Russia as he looks for the best way to salvage Ukraine's recession-hobbled economy and shore up billions of dollars in external financing to avoid a default. The government has depleted its foreign currency reserves by propping up the exchange rate of the hryvnia.

Western leaders have urged Ukraine to sign up for International Monetary Fund aid and the EU trade and political-association pact. Russia has suggested Ukraine join a trade union it has formed with other former Soviet republics. Russia could also reduce the price it charges Ukraine for natural gas and thus alleviate pressure on its finances.

Mr. Yanukovych's about-face on the EU deal brought tens of thousands of protesters into the streets of the capital, where they have set up a camp in the main square surrounded by makeshift barricades. Police have twice attacked the demonstrators in unsuccessful efforts to drive them off.

Protesters supporting Mr. Yanukovych have also arrived in the Ukrainian capital, where mass demonstrations on both sides were expected this weekend. The atmosphere was tense: Many worry there could be clashes between the opposing camps or provocations designed to give police a reason to take control.

U.S. Assistant Secretary of State Victoria Nuland subsequently made an appearance on the Kiev square and handed out food. A number of European leaders, including Germany's foreign minister and the EU's foreign policy chief, have also visited, moves that have drawn fire from Russia.

Russian Prime Minister Dmitry Medvedev  on Friday described the visits by Western officials as "crude intervention in the internal affairs of a sovereign state." Mr. Medvedev urged Ukraine to overcome a "tectonic split" that he said threatens its existence.

His comments came a day after Russian Deputy Prime Minister Igor Shuvalov presented Ukraine's dilemma as a choice between east and west in comments to Russia's Itar-Tass news agency. He said there is "no possibility to arrange a special format" for Ukraine that will allow it to develop eastward and westward simultaneously.

"Ukraine itself determines a status that is most suitable to it: Whether it will continue talks with the EU on a free-trade zone or seek closer economic ties with Russia," Mr. Shuvalov said. "We shall support whatever decision Ukraine makes."

The richest Chinese authors in 2013

  Source:  Xinhua

With an annual income of 25.5 million yuan (US$4.19 million) in copyright royalties, fantasy novelist Jiang Nan topped the 2013 China’s 60 Richest Writers List released by Huaxi Metropolitan Daily on Dec. 5.

China’s first Nobel Literature Prize laureate Mo Yan is behind Jiang Nan, and children book writer Zheng Yuanjie, who was number one last year, ranked the third.

The 60 writers on the list have earned a total of 34 million yuan (US$5.6 million) last year. Wu Huaiyao, founder of "China Richest Writer" list said: "According to the book's price and selling records, the 60 writers had made 3 billion yuan a year; their works have created lots of job opportunities."

China Sets Its 2014 Economic Goals

    According to a report from the Wall Street Journal,"the statement released by the Central Economic Work Conference, the meeting of top leaders, said that China's policy makers faced the "core task" of ensuring stable growth amid continuing economic headwinds and troubles with domestic security".

"The conference comes about a month after a conclave of senior Communist Party officials, called the Third Plenum, set out a blueprint for longer-term reforms. On Friday, the leaders said they would maintain "the spirit" of the plenum, but their focus was on tackling more immediate problems".

"Local governments have been among the big drivers of debt, borrowing heavily to finance infrastructure and real-estate projects that are frequently mired in debt".

"The statement called resolving local debt problems "an important economic task," and said Beijing would "strictly control the process by which governments' raise debt."

Signaling that the central government didn't envision a large bailout, the statement added "every level of government will be responsible for their own debt."

Another reason for the debt buildup is borrowing by firms, often state-owned, despite huge production gluts in industries such as steel, solar energy components and shipbuilding. Over the past few years, as the economy has slowed, many companies are finding there isn't enough demand to keep all their production lines running or their workers employed. Often with the political support of local government, the firms have borrowed to avoid major layoffs.

The leaders pledged to "unswervingly resolve industrial overcapacity"—a pledge that Beijing has made before and failed to carry out. For instance, steel capacity has increased in recent years even as factories have been underutilized.

But Ms. Wang, the UBS analyst, said the leaders signaled more resolve this time by adding that they would also focus "on re-employment of people laid off from industries with overcapacity." Beijing usually does all it can to avoid layoffs, which it fears could lead to social unrest.

Even so, the statement doesn't make clear how much risk Beijing is willing to take to tackle debt and overcapacity. The statement stressed the need for "stable" growth. although a slowdown in credit is likely to lead to a slowdown in GDP growth.

Economists have been looking for signs of whether China would maintain a 7.5% growth target for next year, unchanged from this year, or dial back the target to 7%. A lower growth target would signal that the leadership would press harder to resolve structural problems.

But the document sent mixed messages. Ms. Wang thought the leadership was signaling a 7% target while, RBS analyst Luis Kuijs thought it indicated 7.5%''.

Execution of Kim Jong-un's uncle raises fears of instability in North Korea

North Korea's brutal purge and execution of KimJong-un's uncle  has raised fears of instability in a state with a nuclear weapons programme and a willingness to ratchet up regional tensions.

Jang Song-thaek was accused of everything from plotting a coup to instigating disastrous currency reforms and dishing out pornography in a report issued by the official news agency KCNA early on Friday morning. It denounced him as "worse than a dog" and "despicable human scum".

The Rodong Sinmun newspaper showed him handcuffed and held by uniformed guards in the courtroom of the special military tribunal that found him guilty of treason.

Experts were divided on whether his violent end indicated that Kim was consolidating his power ruthlessly – or that powerful groups within the elite were jockeying for power.

Before his ousting Jang was one of the North's most powerful figures and was regarded as a mentor to the youthful leader. But even his marriage to Kim's aunt – whose situation remains unclear – was not enough to save his life.

The culmination of Jang's fall from power, first heralded by the announcement that he had been stripped of his posts and expelled from the Workers' party, was announced in thundering, vitriolic state media reports in unprecedented fashion.

In Pyongyang, people crowded around subway station billboards displaying the morning paper and news of the execution, Associated Press reported. Others sat quietly and listened as a radio broadcast piped into the subway listed Jang's crimes.

Source: theguardian

UNESCO-certified Japanese cuisine losing its popularity at home

Busy lifestyles have led to a booming fast food industry, threatening "washoku."

Japan's traditional cuisine, washoku, received UNESCO designation as an Intangible Cultural Heritage of Humanity earlier this month. Though the term washoku refers to the culture of Japanese food - including its time-consuming preparation and even the way it should be eaten - it is often embodied by a healthy combination of rice, fish and locally sourced vegetables.

Washoku's intricacies may be a major cause for its declining popularity in Japan, as busy office workers and impatient youngsters opt for the instant gratification of fast food.

"Annual rice consumption in Japan has fallen 17 percent over the last 15 years," said the Tokyo Times. "Fast-food can now be found anywhere. It attracts customers with cheap prices and fast service."

A study published in the journal EuroMonitor International found that the Japanese fast food industry grew by 4 percent last year. Aside from Japan's ubiquitous McDonalds and Kentucky Fried Chicken outlets, the market for convenience store fast food - often in the form of fried snacks and "bento" lunch boxes - expanded by 8 percent in 2012.

"As Japan has an ageing population and the number of single-person households is likely to grow, the demand for home meal replacements, including convenience store fast food, will increase," the study reported.

Japan's notoriously long work hours certainly contribute to the popularity of eating on the go. The country coined the term karoshi, or death by overwork, with some victims alleged to have worked 14-hour shifts seven days a week. With more than 50,000 convenience stores operating in Japan, a quick and easy meal can often be had just around the corner.

As more and more young people in Japan are exposed to bold international cooking, their taste buds may begin to lose an appreciation for washoku's understated mixture of sweet, sour, salty and bitter - a flavor palate that's called umami in Japanese.

Source: NewsOnJapan

Japan kanji of the year is 'ring' after Olympics bid

The annual "kanji" Chinese character of the year in Japan went to "ring" on Thursday, after Tokyo's successful bid to host the 2020 Olympics, often referred to in local print media as "five rings."

In an event televised nationally, the top monk at world-famous Kiyomizu Temple in the ancient capital of Kyoto drew the character with a large calligraphy brush, whose bristles were the size of a bowling pin, on a huge piece of paper.The character, which can be read either as "rin" or as "wa" depending on the context, was chosen following months of positive coverage by the media and acclamation from business for Tokyo's successful bid to host the summer Games.
The 19th annual event was organised by a private association that tries to promote use and knowledge of kanji, the characters that came to Japan from China more than 1,000 years ago, and one of three writing systems for Japanese.

Source: Strait Times

Low interest rates to continue well into 2015, Bank of England speech indicates

"Interest rates will stay low until Britain enjoys a prolonged period of strong growth, a Bank of England policymaker has said in a speech indicating that historically cheap credit will remain in place well beyond next year".

Spencer Dale, the Bank's chief economist, "said the weakness of the UK economy and the threat of further shocks to the world economy meant Threadneedle Street would want to see a combination of strong growth, low unemployment and rising incomes before raising rates".

"His trinity of targets is likely to be welcomed by mortgage payers given the flurry of reports that the Bank will be forced to raise rates next year to calm the current growth spurt.

The likelihood is that while growth has already begun to accelerate, wages are unlikely to begin rising above the rate of inflation until 2015 and only consistently by 2016 when the Bank expects unemployment to fall to its target of 7%".

Addressing a group of business leaders, Dale said the recent optimism could not be taken for granted.

"Events of the past few years may colour and contaminate business behaviour for many years," he said. In particular, he suggested that "the reluctance today of some companies to borrow from their banks may be less a lack of demand and more a breakdown of trust", which adversely effects "the efficient functioning of our economy".

Source: theguardian

Natural-Gas Prices Heat Up

   According to a report from the Wall Street Journal,"the big chill gripping the U.S. is heating up the natural-gas market. Prices climbed to a two-and-a-half-year high on Thursday as one of the coldest autumns in more than a decade has kept stoking demand for the heating fuel".
"The run-up has helped investors who bet that gas prices would rise once temperatures fell. But it is bad news for utilities, which use gas to fuel power plants but are prevented in many states from immediately passing higher prices along to consumers. If the rally is sustained, it will spell relief for producers, which have struggled with low prices for years as output has soared".

"As cold weather set in across the Midwest and Northeast in November, utilities have been forced to use more gas, sending prices up more than 26% since Nov. 1. The added demand has sapped supplies. Gas in storage dropped by 81 billion cubic feet last week to their lowest level for this time of year since 2008, the Energy Information Administration said Thursday.

Natural-gas futures rose 7.2 cents, or 1.7%, to $4.409 per million British thermal units Thursday, the highest price since July 2011. Natural gas is the best performer this year among the 22 commodities in the Dow Jones-UBS Commodity Index.

Investors say gas could keep climbing for as long as the cold spell lasts—potentially through December, according to some forecasters. Supplies are down from a year ago, while demand is rising as power plants switch from coal to gas.

"There's a lot of people that are getting bullish at these levels," said Jason Williams, a commodity broker for Coquest, a brokerage in Dallas. "People are worried about supply." He said he thinks prices can rise another 10% by the end of the year.

The sharp gains reflect a rare instance of tightening supplies in a market that has seen record-high production in recent years. A domestic shale-gas boom, driven by technology breakthroughs including hydraulic-fracturing and horizontal-drilling techniques, has boosted U.S. output, overwhelming demand and filling underground storage caverns around the country. Even after recent gains, gas prices remain well below the average price of more than $6/mmBtu seen in the mid-2000s, before shale production took off.

Now these caverns and storage facilities are being drained. Supplies are down 7.2% from a year ago, according to the EIA.

Other forces are driving up demand as well. Years of cheap gas have prompted many power plants to switch from coal to gas as their main source of energy. Additionally, vehicles that run on natural gas have become more popular".

UN official says desertification deserves more attention

Desertification and land degradation would affect lives of ordinary people and cause many global problems including terrorism, thus deserved more attention from all stakeholders, said a top UN official in an interview with Xinhua on Thursday.

"Clearly, I cannot say that it has been done enough," said Monique Barbut, Executive Secretary of the United Nation Convention to Combat Desertification (UNCCD), "the (desertification) affected land are getting bigger and bigger."

According to the Bonn-based UNCCD secretariat, about 12 million hectares of productive drylands become infertile due to desertification and drought. Over 2 billion people live in the drylands where desertification and drought are enduring challenges. About 90 percent of them are in developing countries, mostly in the rural areas where land is their primary source of livelihood.

Barbut said that there is a misperception that land restoration is only good for the few people to whom the land belongs.

"It is not a local problem, it is a global problem," she said, "if you think in terms of global food security, less land that you have somewhere would also impact the price of food in another place."

In her opinion, the problem of desertification and land degradation was even one of causes of terrorism.

"If you see today the conflicts in north Mali and other areas, why don't we talk about the root cause of terrorism in those region?" Barbut said.

"What will happen if there is no more land to cultivate and no more water for the population there ... Most of those people are trying to survive ... if they have nothing, then they are left into hands which are maybe not so nice."

The new executive secretary admitted that it is a pressure for her that UNCCD did not draw as much attention as UNFCCC, another UN convention for climate change.

"It is the poor child," said Barbut, adding that given the misperception about the global impact of desertification, the phenomenon is understandable, but it is in her plan to raise public awareness of desertification through cooperation with media.

"People like to talk about what is concerning them most," she said, "If you bring food and water everyday to the table of the ones living in cities, they do not see that the problem of land degradation, of water scarcity is a big problem."

The official said there should be more big "flagship projects" as the Green Great Wall in China, a vast forestation project aim to cover 4.07 million square km by 2050, in order to show that "things that can be done".

"China is a very good example, because it's one of the rare country which is restoring more land than it is degrading," she said.

According to the executive secretary, the success of desertification combating relies on the collaboration internationally, as well as inside individual countries.

"Different ministries should be working together, it can't be agriculture ministry dealing with that, it can't be ministry of environment alone, or only energy ministry," Barbut said.

Besides, a better use of current resources and a change of developing pattern are essential in this process. She warned that there are many countries which clearly "not in the right way to develop and use their land".

Source: Xinhua

Stanley Fischer, tapped for Fed job, Has Activist Past

    According to an article published today at the Wall Street Journal,"Mr. Stanley Fischer's record shows he has supported an activist central bank in the past to help the economy, even though he has expressed some skepticism about the Fed's vigorous efforts to spur growth and bring down unemployment in recent months".

''In 1977, Mr. Fischer wrote a seminal research paper laying out the case for an activist monetary policy to counter short-run economic downturns. The paper was a counterpunch at University of Chicago economists who saw government intervention as ineffective and became a key part of his world view as a policy maker''.

''Mr. Fischer taught at Chicago in the early 1970s, but with the 1977 paper he became a leader in the "New Keynesian" academic movement, which accepted some Chicago arguments but still saw a role for government intervention.

In the 1990s, as the deputy director of the International Monetary Fund, Mr. Fischer helped build what came to be known as the "Washington Consensus" on economic policy, which called for flexible exchange rates, free capital flows between countries and balanced budgets.

Critics on the right said the IMF was too quick to intervene in countries jarred by market instability during this period. Critics on the left said the IMF demanded overly harsh policies, such as interest-rate increases and spending cuts in economies in Latin America, Asia and Russia when it did intervene to stabilize them.

In one instance Mr. Fischer persuaded reluctant finance ministry officials to buy corporate bonds to ease volatile swings in Israeli corporate debt markets spurred by real estate companies with activities in distressed housing markets abroad.

"We believed that more intervention would be bad for the economy and send a bad signal to the markets," said Yoram Ariav, a former director general of the Israeli finance ministry. "He wasn't a decision maker, but we adopted his view. It was his knowledge and experience, because he was very calm."

Mr. Fischer wasn't universally beloved in Israel.

His most consistent detractor, Yaron Zelekha, a former accountant general in the Israeli Finance Ministry, said Mr. Fischer didn't raise interest rates soon enough, thus contributing to a real-estate bubble in Israel".

Shlomo Maoz, chief economist at the Excellence investment house, said Mr. Fischer's efforts to restrain the housing market by tightening controls on mortgage lending had a minimal impact.

Speaking at a conference in Israel earlier this week, Mr. Fischer said Israeli authorities should be more focused on the export market, which would have been hurt by interest rate hikes, than housing.

"It is not possible to manage the economy, and interest rates, and the exchange rate, solely to address the needs of the housing market," he said, according to the "Globes" Israeli business publication, which sponsored the conference''.

Putin's annual address confident in foreign policy, firm on domestic issues

 Rather than to be sensational, Russian President Vladimir Putin's annual state of nation address on Thursday featured pragmatic confidence and determination in unveiling pains and gains in domestic and foreign affairs in the past year, local experts say.

Noting Moscow's positive role in diplomacy over the Iran nuclear issue and the Syria crisis, Putin said Russia aspired to become a global leader without imposing its values by force to anyone.

He said Russia's actions on these issues have been resolute, well-judged and reasonable, and that Russia has never put either its own interests and security or global security in danger, which is the way a mature and responsible power should act.

"Putin wants Russia to be among the countries which shape the world order not by imposing someone's model of development, but through finding consensus," Fedor Lukyanov, chief editor of the Russia in Global Affairs magazine, told Xinhua.

In 2013, Lukyanov said, Russia has demonstrated that it had more capabilities to pursue its policy than some countries that are more or less militarily or economically superior to it.

"Russia's consistency in Syrian and Iranian problems, its courageous behavior in (Edward) Snowden's saga have gained Moscow very serious respect in the world," he said. "Russia showed that peaceful diplomacy could be a resource more important than military power."

Firm as he has always been, Putin said Moscow would not allow anyone to achieve military superiority over it, saying "Russia will respond to any challenges, both political and technological ones."

He even said the defense spending would reach 23 trillion rubles (about 705 billion U.S. dollars) in the next decade.

Meanwhile, it by no means indicated that Putin was belligerent, said Andrei Kortunov, director of the Russian International Affairs Council.

"Global leadership is a combination of a country's military might and its ability to influence the global and regional events by diplomatic means," Kortunov said.

He believes Moscow was ready for joint work with all its partners to provide equal and undivided security for all, to achieve what Putin called "shared success."

The experts agreed that Putin chose to unveil domestic economic and ethnic problems "as frankly and brutally as he can."

On one hand, he complained that the reforms set in a series of Presidential decrees signed last May have been taking " unacceptably long," saying, "Either something is being done to cause a negative response in society, or nothing is being done at all."

On the other hand, he declined to revise the goals of Russia's socio-economic development set in the May decrees, urging for " real work ... and clearly set budgets and other priorities."

"Putin slammed the federal government for poor work but he also, in effect, has shifted the burden of implementing these decrees to the regional heads," Yuri Malev, professor in the Moscow State Institute for International Affairs, told Xinhua.

"He said certain programs were not within responsibility of the federal centers and made it clear that the federal government isn' t going to allocate money in the current conditions," Malev said.

The expert said governors who gathered in the Kremlin replied with "defensive laugh" when Putin made the remarks. The president immediately fended off by saying "there is nothing funny."

The experts believe that there will be no drastic shuffle in Putin's diplomacy, famously known as judo diplomacy, but the faltering economy and other social problems may continue to drag his leg.

Source: Xinhua