Asia shares creep higher, plenty of risk ahead

Asian markets,made guarded gains on Monday, encouraged that Wall Street was able to weather a seemingly disappointing U.S. jobs report, though there is more than enough event risk ahead to keep investors cautious.

Crucially, the new head of the Federal Reserve, Janet Yellen, delivers her first testimony to the House on Tuesday and the Senate on Thursday, and markets will be hoping for reassurance that policy will stay loose for a long time to come.

Japan's Nikkei crept ahead 1 percent on Monday to reach 14,650, moving away from last week's trough at 13,995.

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.2 percent, while Australian stocks added 0.7 percent.

Markets took their cue from Wall Street where the Dow ended Friday up 1.06 percent and the S&P 500 1.33 percent. The pan-European FTSEurofirst 300 had also risen 0.75 percent.

Japanese shares found further comfort in a softening yen with the dollar pushing up to 102.45 but meeting resistance around 102.60. The dollar was also a shade firmer on the euro at $1.3620, against $1.3635 late Friday.

Both stocks and the dollar had initially retreated when the U.S. payrolls report showed a rise of only 113,000 in January, well short of forecasts.

However, the damage was limited by a very strong household survey where a sharp jump in the number of people employed nudged the jobless rate down to 6.6 percent.

The mixed bag left Treasuries little changed with yields on 10-year notes a shade lower at 2.68 percent.

In commodities, oil prices extended their recent gains as persistently cold weather across the U.S. continued to eat into heating fuel stocks.

U.S. crude rose 27 cents to $100.14 a barrel, having reached its highest in six weeks, while Brent crude oil futures were steady at $109.55 a barrel.

Spot gold was also firm at $1,265.55 an ounce, but faces stiff resistance from $1,273 to $1,278.

Major U.S. data includes retail sales on Thursday where a flat result is forecasts due partly to bad weather and a rise in petrol prices.

In Asia, China releases trade numbers on Wednesday and consumer prices on Friday. 

The euro zone releases its first estimate of economic growth on Friday and forecasts favour a slim 0.2 percent increase in the fourth quarter, which would keep pressure on for more action from the European Central Bank.

ECB President Mario Draghi gives a speech on "Progress Through Crisis?" on Wednesday and markets will be sensitive to any hint of further accommodation to come.

Japan posts smallest current account surplus on record in 2013

posted its smallest current account surplus on record last year in a worrying sign that sluggish exports and the rising cost of energy imports will hamper economic growth.

The deteriorating external position is also bound to put the spotlight back on Japan's ability to service its huge debt, which at over twice the size of its economy is the worst in the industrialised world.

The Ministry of Finance data on Monday also showed the current account balance for December slid to the largest deficit on record as exporters have failed to reap the benefits of a weak currency.

Many policy makers expected a falling yen would push up exports and support theeconomy but lacklustre external demand and declining competitiveness have hampered the trade sector.

After stagnating for decades, the government's aggressive fiscal and monetary stimulus policies over the past year have seen the economy rebound.

Still, the uneven recovery may prompt officials to consider other options to keep economic growth on track, some analysts say.

"Gains in exports are weaker than I expected, reflecting declining competitiveness," said Hiroaki Muto, senior economist at Sumitomo Mitsui Asset Management Co.

"The current account can remain in surplus, but the surplus will be small. This is an economic headwind that could place pressure on the government and the Bank of Japanto respond."

For 2013, Japan's current account recorded a 3.3 trillion yen surplus, the data showed. This was the smallest surplus in comparable data available from 1985.

For 2013, Japan's current account recorded a 3.3 trillion yen surplus, the data showed. This was the smallest surplus in comparable data available from 1985.

Last year imports rose 15.4 percent versus a 9.0 percent gain in exports, the data showed.

In December, the current account deficit stood at 638.6 billion yen ($6.25 billion), against a median forecast for 707.7 billion yen.

The yen has fallen around 23 percent versus the dollar since late 2012 as Prime Minister Shinzo Abe's government embarked on a bold plan to end 15 years of deflation with expanded quantitative easing from the Bank of Japan.

Many in the government also expected the yen's fall to boost exports, but this has largely failed to materialise as Japanese companies are producing more goods outside of the country.

Japanese companies have also been losing market share to rivals from South Korea and other countries.

Years of fiscal stimulus to revive a stagnant economy and surging social welfare costs for a rapidly ageing population have led to Japan running a record 1,000 trillion yen ($10 trillion) in public debt.

The deteriorating current account balance has re-focussed attention on the debt pile and on Japan's ability to service it.

The increased debt-servicing cost forced Abe to go ahead with a scheduled two-stage sales tax hike from April this year, which is seen as a necessary first step in fixing Japan's tattered finances.

The economy is likely to boom until March as consumers rush to beat the sales tax hike, and many analysts agree with the BOJ's view that the pain from the higher tax will be temporary.

However, weak exports could mean that the rebound is slower than some economists anticipate.

Source: Reuters

Emerging markets output growth slows to 4-month low in January - HSBC

 Business activity across emerging markets expanded in January at the slowest pace in four months, dragged down by sluggish services sectors in the BRIC quartet of big developing countries, a survey showed on Monday.

HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys slipped for the second month running to 51.4 in January. It stayed under the 2013 average of 51.7 and well below the score of 64.1 posted last January.

But the monthly index remained above the 50 threshold which marks the difference between expansion and contraction.

Based on data from purchasing managers at about 8,000 firms in 17 countries, the survey showed signs of manufacturing and export revival in some countries but Chinese factory output fell below the 50 mark, Brazilian manufacturing growth slowed and output fell in Russia and Indonesia.

Growth was stronger in India, Poland, Taiwan and Mexico.

January services activity in the biggest emerging markets was at a six-month low. India and Brazil both posted declines, while growth rates in China and Russia were weak, HSBC said.

HSBC's global head of emerging markets research, Pablo Goldberg, said the data showed a clear divergence in recovery pattern between emerging economies.

"Among the winners, we have countries in a clear cyclical recovery that are being lifted by the improvement in the developed markets: Mexico, Poland and the Czech Republic," Goldberg said.

"By contrast, PMIs decelerated in Turkey, Brazil, Russia and Indonesia. These are among the countries where deteriorating external balances have prevented monetary easing or forced tightening."

Several emerging central banks such as Turkey, India, South Africa and Brazil have tightened monetary policy in recent weeks and many more are expected to follow suit, with severe consequences for economic growth.

Source: Reuters

Here comes the euro zone growth data

(Reuters) - The euro zone and its constituent parts will report fourth quarter economic growth numbers at the end of the week, offering policy makers at the European Central Bank a needed snapshot of the bloc's underlying strength.

Recent evidence has been mixed. There has been general improvement but a growing disparity between Germany and France, the currency union's largest economies.

Reuters polls suggest euro zone GDP will come in at 0.2 percent quarter on quarter for a year-on-year increase of just 0.4 percent. Germany's projected 0.3 percent quarterly rise, however, would translate to a relatively strong 1.3 percent for the year.

The ECB sat on its hands last week but gave a fairly clear steer that action could be taken next month if new internal forecasts show a further deterioration in inflation - falling so low as to trigger some concerns about deflation - and growth.

Bank President Mario Draghi pointedly flagged the Q4 gross domestic product data as crucial to the bank's thinking.

But what to do? A small interest rate cut from 0.25 percent to somewhere just above zero is hardly going to be a game changer and the ECB has already said it won't prime bankswith long-term cheap money again unless they commit to lend into the real economy.

Bank stress tests looming to check on the stability of the financial system. Those samebanks are also being told to deleverage and build up capital.

So while a case can be made for more cheap long-term loans, or LTROs, if banks do commit to pass the money on to businesses, it would not be straightforward for them.

The ECB has discussed ceasing to soak up money it spent buying sovereign bonds during the euro zone's debt crisis. Ending such "sterilisation" would inject about 175 billion euros of liquidity into the financial system. That would ease strains in euro zone money markets but probably do little to boost inflation, which the central bank wants.

That leaves printing money, or "quantitative easing", one of the ECB's last unbroken taboos. It is a long way off if it comes at all. But as Japan has shown, it's one of the few levers that could get prices rising again.

SOURCE: Reuters

China's listed firms bullish on 2013 results

A majority of listed firms that have released preliminary reports expect to perform better in 2013, the Shanghai Securities News reported Friday.

Among the 1,734 companies to release forecasts for last year, 1,000 expect better results: 821 anticipate rising profits and 179 reversals of previous losses.

Altogether 398 firms predicted increases of over 100 percent in net profits, led by special treatment (ST) shares such as Shenzhen International Enterprise Co., Ltd and Yihua Real Estate.

Firms marked as ST have had two consecutive years of net losses, which makes de-listing a high possibility.

Thanks to restructuring and asset transfers, most ST firms have reversed losses in 2013, the report said.

China's key stock index, the Shanghai Composite Index, lost over 6 percent in 2013.

Source: Xinhua

Australia's economic growth expected to strengthen in 2014: central bank

Economic growth in Australia is expected to pick up pace in 2014 due to a lower exchange rate and stronger activity in the housing and retail sectors, according to the central bank's forecast in the monetary policy statement released Friday.

In the latest statement, the Reserve Bank of Australia (RBA) revised its economic growth forecast for the year to December 2014 to between 2.25 percent and 3.25 percent, up slightly from the two to three percent forecast in the bank's November Statement on Monetary Policy.

The RBA says a number of indicators suggest Australia's GDP ( gross domestic product) growth is likely to strengthen a little in 2014 through to a pace that is still only trend at best.

"Growth is then expected to pick up to an above-trend pace by mid 2016," the RBA said in its quarterly statement on monetary policy.

"The outlook for the next year or so reflects the substantial fall in mining investment and planned fiscal restraint."

At the same time, low interest rates are stimulating prices and turnover in the established housing market and dwelling construction, the bank predicts.

"Over time, these conditions can be expected to lead to higher consumption growth and provide support for non-mining investment," the RBA said.

Resource exports will continue to contribute to output growth for some time with the completion of resource investment project, the bank says.

Source: Xinhua

British economy to grow by 2.5 pct in 2014: NIESR

The British economy will grow 2.5 percent in 2014 and 2.1 percent next year, after it achieved a 1.9-percent expansion last year, the fastest since 2007, a think-tank said Friday.

According to a press statement from the National Institute of Economic and Social Research (NIESR), unemployment in the kingdom will drop through the Bank of England's seven percent threshold early 2014.

Meanwhile, the inflation rate will be marginally above the two percent target this year before dropping below target in 2015, said the think-tank.

Driven by soaring domestic demand, especially consumer spending, the kingdom's economic recovery has become entrenched, said NIESR.

"We expect consumer spending to remain the key driver of recovery in 2014 and 2015, supported by continued buoyancy in the housing market," said NIESR.

Consumer spending contributed 1.6 percentage points to growth in 2013, despite the further fall in real consumer wages.

The performance of the British labor market, of which the latest unemployment rate fell to 7.1 percent, continues to be a welcome surprise, said the think-tank. Over the mid-term, however, the absence of productivity would limit real wage growth. NIESR forecast a gradual improvement in productivity, and warn that the continued stagnation poses a downside risk to the country's medium-term prospects.

NIESR also expect a fiscal surplus in 2018-19, alongside the public investment spending swelling.

"However, this reflects both a very sharp squeeze on government consumption, and continued low levels of public sector investment," NIESR said.

Source: Xinhua

LatAm leaders meet to boost trade

The 8th Summit of Latin American trade bloc Pacific Alliance kicked off Saturday in the northern Colombian city of Cartagena aiming to strengthen trade among member states with an agreement on tariff reductions.

Leaders from Chile, Colombia, Mexico and Peru are attending the three-day meeting, where a free trade agreement is expected to be signed eliminating tariffs on 92 percent of trade goods.

According to Colombia's Ministry of Foreign Affairs, President Sebastian Pinera of Chile, President Ollanta Humala of Peru, Mexico's President Enrique Pena Nieto, President Laura Chinchilla of Costa Rica and Colombia's President Juan Manuel Santos, will meet Monday to sign the Cartagena Declaration on Costa Rica joining the bloc, as well as the additional protocol.

The Columbian Air Force said Saturday that 1000 police and soldiers have been posted in Cartagena to ensure the security of the summit.

The Pacific Alliance, a trade bloc created on June 6th, 2012, by Chile,Colombia, Mexico and Peru to facilitate economic integration and build a free trade zone and visa-free travel area, currently represents 35 percent of Latin America's GDP, 50 percent of regional trade and a potential market of 212 million people.

Source: Xinhua

U.S. to keep anti-dumping duty on Chinese garment hangers despite protests

The U.S. government decided Friday to maintain an existing anti-dumping duty on steel wire garment hangers imported from China, despite Beijing's repeated calls for Washington to drop trade protectionism.

Six members of U.S. International Trade Commission (ITC) concluded unanimously in a ruling that revoking the current anti-dumping duty orders on Chinese hangers would likely lead to "material injury" to U.S. industries in a foreseeable future.

The verdict meant the duty margin on Chinese hungers will continue run from 15.83 percent to 187.25 percent.

The Chinese Ministry of Commerce has repeatedly urged Washington to honor its commitment against trade protectionism and maintain a free, open and just international trade environment.

It has been the first U.S. "sunset review" since August 2008, when the duty was introduced.

The Uruguay Round Agreements Act requires the U.S. Department of Commerce to conduct "sunset review" by revoking anti-dumping duty orders five years after the duties were introduced in the country, unless the department and the ITC determine the action would make material injuries to U.S. industries in the future.

Source: Xinhua

China vows to maintain appropriate liquidity

China's central bank said on Saturday that it will apply monetary policy instruments in the coming months to keep liquidity at an appropriate level and achieve reasonable growth in credit and social financing.

In a quarterly monetary policy report, the People's Bank of China said instruments including open market operations, changing the reserve requirement ratio, relending, and rediscounting will be adopted to manage liquidity in the banking system.

The central bank will also strengthen communication with the market and the public to stabilize expectations and ensure stable performance of the interest rate, according to the report.

China will continue to implement sound monetary policy in 2014 with a focus on making it more forward-looking, targeted and coordinated while carrying out policy fine-tuning in a timely and appropriate manner, according to the report.

Source: Xinhua

China renews support for new-energy cars(subsidies will be raised)

The Chinese government on Saturday announced measures to further promote the use of new-energy vehicles in an effort to save energy and cut emissions.

Subsidies for new-energy car buyers in 2014 and 2015 will be raised from previous levels set by a standard released in September 2013, according to a statement jointly issued by the Ministry of Finance (MOF) and three other government departments.

According to the standard, subsidies for new-energy passenger cars ranged from 35,000 yuan (about 5,730 U.S. dollars) to 60,000 yuan per vehicle in 2013, while buyers of new-energy coaches received subsidies of up to 500,000 yuan last year.

The standard also said that the country would lower the subsidies 10 percent this year from the 2013 level and by 20 percent in 2015.

The new statement made an adjustment that will lower subsidies by only 5 percent in 2014 and 10 percent in 2015 from the 2013 level.

The change came into effect on Jan. 1, 2014.

To enhance government support for new-energy vehicles, the subsidy policy, which was scheduled to be phased out at the end of 2015, will be extended, the statement said.

Source: Xinhua

China: UnionPay transactions surge in Spring Festival spree

China went on a holiday splurge during Spring Festival and transactions through UnionPay cards surged, the national bank card operator revealed on Saturday.

The total value of transactions at home and abroad through China UnionPay cards jumped 23 percent year on year to nearly 200 billion yuan (32.8 billion U.S. dollars) during the seven days of holiday from Jan. 31 to Feb. 6.

Card payments in supermarkets and shopping malls continued to lead the growth, up 22 percent and 27 percent, respectively.

Transactions in restaurants remained flat from a year earlier, with a notable drop in the single settlement value, suggesting consumption in the catering sector has been mainly driven by mundane events, the statement said, and partly a result of anti-corruption and frugality campaigns that have restricted high-end consumption.

In major overseas tourist destinations such as Japan and the Republic of Korea, UnionPay transactions continued to grow as more Chinese went abroad during the holiday.

China UnionPay is responsible for all bank card transactions on the Chinese mainland and has extended its reach to 142 countries and regions.

Source: Xinhua

Sino-Brazilian consortium wins power line tender in Brazil

 IE Belo Monte, a group which China's State Grid Corp. leads with a 51-percent stake, won the tender on Friday to build and operate a transmission line for the Belo Monte hydro-electric plant in northern Brazil.

The consortium, which also includes Brazil's state-owned Furnas (24.5 percent stake) and Eletronorte (24.5 percent stake), prevailed in the auction held at the Sao Paulo Stock Exchange, according to Brazil's National Electricity Agency (Aneel).

IE Belo Monte proposed to limit its annual revenue to 434.6 million reais (182.2 million U.S. dollars), 38 percent less than the ceiling established by the government, lower than that of two other competitors.

Aneel said the power line, a major national electricity project, would demand an estimated investment of 5 billion reais (some 2.1 billion U.S. dollars).

Belo Monte hydro-electric plant should begin operating in February 2015, generating some 12,500 direct jobs, Aneel said.

The power line will be 2,100 km long and will have the capacity to provide 4,000 megawatts (MW) electricity, linking the substations in the northern state of Para and southern state of Minas Gerais.

Source: Xinhua

Abe speaks on right to collective self-defense

Japan's Prime Minister Shinzo Abe says using the right to collective self-defense can be tolerated by reinterpreting the Constitution without amending it.

Abe was responding to a question from Yuichiro Hata, a senior member of the opposition Democratic Party at an Upper House committee meeting on Wednesday.Hata said members of a government expert panel on the issue support using the right and that the conclusion is obvious.

Source: NHK

Japan: Worker shortage hits construction sites

An acute shortage of workers is affecting construction sites as the number of laborers has fallen while construction orders have been on the rise.

The number of construction workers has fallen to about less than three-quarters of the peak in 1997. Meanwhile, construction orders in terms of workload volumes have been rising because of the economic recovery and preparations for the 2020 Tokyo Olympics and Paralympics.

Especially acute is the shortage of mold makers and scaffolding workers who, according to a construction industry official, "would need at least 10 years to become full-fledged artisans in their trade." About one-third of all construction companies believe that they cannot secure enough skilled construction workers for the time being.

Source: The Japan News

Leaked recording uncovers U.S. influence in Ukraine crisis( Who records what?, are Russia's ambitions different?)

The role of the United Nations in strife-torn Ukraine has merely been to encourage a peaceful end through dialogue, a UN spokesman said on Friday, despite what some think is indicated in an allegedly leaked, expletive-punctuated, recording of U.S. diplomats conversing by telephone.

"We can't comment on the purported leaks of others," said acting deputy UN spokesman, Farhan Haq, referring to the recording between U.S. Assistant Secretary of State Victoria Nuland and U.S. Ambassador to Ukraine Geoffrey Pyatt, discussing their choices in the opposition to the government in the Kiev crisis.

The alleged conversation that was posted on YouTube proves a turnabout for the United States in international espionage since the release by former defense contractor Edward Snowden of massive secret documents on U.S. spying, observers say.

The purported recording also pulls back the curtain on Washington's behind-the-scenes efforts in Ukraine, in contrast to its suggestions of Russia wielding its influence in the political crisis, experts say.

While the United States has not acknowledged authenticity of the Ukraine recording, it has pointed an accusatory finger at Russia for intercepting the call while commending its quality, according to widely published reports. At one point Nuland used a four letter word in referring to the European Union (EU) and has apologized for that, the reports said.

However, when asked about the recording and the role played by the world body, the UN spokesman referred back to earlier statements, including one from just a few hours earlier in the day about UN Secretary-General Ban Ki-moon's meeting with Ukrainian President Victor Yanukovych.

"The president briefed the secretary-general at length on the genesis of the crisis and recent developments," said a readout of the Friday meeting, which was issued here. "The secretary-general thanked the president for receiving his special envoy, Mr. Robert Serry, whom he dispatched to convey his interest and concern in developments and to express the UN's solidarity with Ukrainians."

"The secretary-general reiterated the urgency of ending the political crisis through dialogue and the need to prevent further violence," the readout said. "He said the United Nations stood ready to provide technical assistance if requested by both sides."

They met before the opening ceremony for the Winter Olympic Games in Sochi, Russia.

The purported recording of the U.S. diplomats apparently was made before Ban sent a special envoy to Kiev on Jan. 28-30.

"The objectives of Robert Serry in the Ukraine, again, are to convey the secretary-general's interests and concern in the developments in the Ukraine and to express our solidarity with the Ukrainians," Haq said. "Those were his objectives."

Serry is a former Dutch diplomat who worked in Ukraine before taking up his post as an international civil servant at the United Nations, Haq said. "So he's fairly knowledgeable about that."

What brought the United Nations into the kerfuffle over the alleged snooping on U.S. diplomats was the purported discussion about UN Undersecretary-General Jeffrey Feltman allegedly convincing Ban to dispatch Serry to Kiev.

Feltman is a former assistant U.S. secretary of state.

But Haq said, "Like. I'm saying, about Jeffrey Feltman of course for his part, he is an international civil servant. He works for the UN."

A transcript of the allegedly intercepted recording showed Nuland, the U.S. assistant secretary of state, telling Pyatt, the ambassador: "When I talked to Jeff Feltman this morning, he had a new name for the UN guy, Robert Serry."

Pyatt affirmed he was aware of Serry's mission and Nuland allegedly said of Feltman, "He's now gotten both Serry and Ban Ki- moon to agree that Serry could come in Monday or Tuesday. So that would be great, I think, to help glue this thing and to have the UN help glue it," apparently affirming the opposition members they support.

Then she allegedly indicated the move was being made regardless of EU's position, using an expletive.

Her attitude was seen as Washington's frustration with the EU, as protests have dragged on since November in Ukraine and killed at least six people.

Protests erupted in November in Ukraine after Yanukovych backtracked on a partnership agreement with the European Union, a path toward an eventual membership of the bloc, and instead accepted aid from Russia. The protests turned violent on Jan. 19, when radical activists attacked riot police with fireworks and petrol bombs.

Source: Xinhua

S. Korean Bloomberg sees Samsung, Hyundai's economic dominance for 10 more years

 Fears spread among South Koreans over their economy's heavy dependence on top two conglomerates after a local corporate data provider warned it.

On Jan. 13, CEO Score, an online corporate productivity evaluation site, announced a report that the ratio of combined revenues of Samsung Group and Hyundai Motor Group to GDP reached 35 percent in 2012, up from 23.1 percent in 2008.

The report terrified people as underperformance of the top two chaebols could result in overall economic slump, alerting policymakers to the need for a separate assessment of the economy after excluding business activities of the top two from total economic performance. Finance Minister Hyun Oh-seok admitted the need, saying that the ministry was appreciating economic concentration of Samsung and Hyundai.

Revenue of Samsung Electronics, the country's No. 1 company and a flagship unit of Samsung Group, equaled to 16.2 percent of GDP in 2012, according to the CEO Score. It was the highest among the world's top 20 economies in terms of GDP. The figures for the United States, China, Japan, Germany and France were far below 10 percent.

"Samsung and Hyundai's dominance will last over the next 10 more years," Park Ju-Geun, president of CEO Score, said in an interview with Xinhua Friday, at his office in Seoul filled with books on economics, politics, finance and statistics.

Park said it will take around 10 years to enhance economic constitution of South Korea, which has been bred by manufacturing exporters like Japan. Among global top 20 companies selected by the U.S. magazine Fortune, only manufacturers were Samsung Electronics of South Korea and Toyota Motor of Japan.

"It's true the economy depends on a couple of companies. It indicates the need for portfolio diversification from cars and smartphones to finance, pharmaceutical and energy sectors, not oppressing the current leading players," said Park.

BLOOMBERG OF KOREAN VERSION

Park is an expert on statistics and management analysis. When he worked for LG Electronics from late 1990s, Park was tasked with statistics-related projects, becoming the youngest master of Six Sigma Statistics in LG Group, South Korea's fourth-largest conglomerate.

When he moved to LG's strategic planning team, the South Korean tech giant was looking out for opportunities to become one of global top-tier companies. The statistical expert visited Cisco to learn its management planning, touring Toyota for manufacturing logistics, GE for personnel management and P&G for marketing.

Those careers became a cornerstone for Park to set up the CEO Score, founded in July 2012, which specializes in collecting, processing and analyzing raw data of companies that is totally different from statistical data.

"Statistics are biased as it involves a process of advancing and verifying a hypothesis. It also includes the sampling of raw data," said Park. "Big data, or raw data, does include no hypothesis and no prejudice. Big data analysis gets possible now thanks to technical development that reduces costs and time."

The founding story of the CEO Score was similar in some ways to that of Bloomberg News. Park was proposed by co-founder Ryu Tae- hyun, journalist and president of C&Media, to get into a new business, which incorporates journalistic element into big data analysis in a timely manner.

Something similar happened more than 20 years ago between Michael Bloomberg, former three-term New York mayor who founded Bloomberg News, and Matthew Winkler, former reporter at the Wall Street Journal and now Bloomberg's editor-in-chief. In this case, Bloomberg proposed to Winkler.

"What I'm pursing may not be the exact same as Bloomberg News, but my pursuit is not totally different from it," said Park, depicting his "directing point" as somewhere between academic research institutes and news media. He defined what the CEO Score will produce as in-depth reports based on timely analysis of big data.

"SAMSUNG KILLER"

With the timely analysis, the CEO Score has put Samsung in trouble several times. In addition to controversy over the economic concentration of conglomerates, especially Samsung, earlier last month, the corporate data provider rocked the country ' s No. 1 family-controlled chaebol with a report on its lackluster investment.

On Aug. 26, 2013, the CEO Score unveiled its raw data analysis that Samsung Group slashed its investment by 28 percent in the first half of last year, while Hyundai Motor Group, POSCO and Hyundai Heavy Industries lifted their investment. In consequence, combined investment of the country's top 10 conglomerates declined 8.2 percent.

The analysis came just two days before South Korean President Park Geun-hye holds her first luncheon meeting, since her inauguration in February, with chairmen of the top 10 conglomerates to ask them to boost investment and employment.

After the rollout of the CEO Score report, Samsung called an emergency press briefing, saying that it will keep its investment pledge in the second half. On Oct. 25, Samsung's future was struck by the report that the group's five new growth engines made little progress and even suffered losses.

"I'm not a Samsung killer. I really want to deny it," said Park. "Data doesn't tell a lie. We just analyzed it based on raw data. It's nonsense to call me as such due only to negative results," he added.

Last week, Park rolled out another report on Samsung, but this time, it must have delighted the group. The report said that the ratio of sales cost to revenue for Samsung Electronics fell below that of its archrival Apple in the third quarter of last year. The figures for Samsung and Apple were 59.8 percent and 62.5 percent respectively. It was far lower than Toyota's 75 percent or so.

It was a "marvelous" record given the sales cost ratio of global top 10 tech companies averaged between 60 percent and 70 percent, Park said, noting that Samsung is a set maker that builds factories and makes parts and products for itself unlike Apple, which farms out much of its responsibility for manufacturing products to China and Taiwan.

MORE RULEMAKERS

Despite the efficiency, Samsung's heavy dependence on smartphone business became risky to Samsung Group as well as to the South Korean economy. According to CEO Score, revenue in the IT & Mobile communications (IM) division, which makes smartphones, accounted for 54.1 percent of the total in Samsung Electronics last year, up from 26.6 percent four years earlier. For operating profit, the IM portion jumped to 68.4 percent in 2013 when the Galaxy smartphone maker posted record earnings.

"Samsung Electronics' concentration on its smartphone business raised possibility for damages to Samsung Group. Interdependency among the group's six electronic affiliates deepened further," said Park. Combined revenue in the six affiliates, including Samsung Display, Samsung SDI, Samsung Techwin, Samsung Electro- Mechanics and Cheil Industries, took up 58.3 percent of the group' s total in 2012, up from 53.3 percent in 2009.

Park said that Samsung must go the way of rulemakers, not remaining in the rank of players, recommending the diversification of business portfolios and following Philips and GE's suits. GE is famous for its diverse businesses, such as home appliances, power, energy and healthcare services, while Philips is known for consumer electronics, lighting and healthcare.

Samsung Group said in 2010 it will focus on five new growth engines, including medical equipment, biomedicine, light emitting diode (LED), solar cells and electric vehicle batteries. But, it showed little progress and even suffered losses in its future business portfolio.

"More rulemakers should come out in order to reduce the economy 's dependence on a couple of companies. Not a solution is seeking to kill the existing leaders like Samsung and Hyundai," Park said, adding that the government needs to provide policy support to local companies belonging to industries of a big scale such as energy, finance, pharmaceutical and food & beverage.

Source: Xinhua

Honda debuts XS1 Concept: It's compact, sporty, utilitarian; not quite an SUV

akihabaranews.

Japanese automakers are making a strong showing in the compact car segment of the 12th Auto Expo 2014, currently underway in New Dehli.

India's premier auto show is actualy Asia's largest, and the second largest in the world, and it was there that Honda released their vision of the compact segment's future. Designed around their new "M/M" philosophy (Maximum Man, Minimum Machine), the XS1 is a 'not for production' base model intended to set design cues for the Japanese maker's future compact cars.

It appears Honda wants the XS1 to be everything to everybody: it sports a...sporty exterior design, driver centric control layout, large sliding doors for easy access, and space for 7 people in 3 rows of seats that also fold away to expand luggage capacity… all in a compact body. There's no information on powertrain, but judging by Honda's recent lineup and other recent concepts, It would probably be quite eco friendly.

Masuzoe scores huge victory in Tokyo election

Former Japanese Health, Labor and Welfare Minister Yoichi Masuzoe, 65, scored a huge victory in the closely watched Tokyo governorship election on Sunday and now needs to tackle an array of issues facing the Japanese capital including social security.

Masuzoe, backed by the Tokyo chapters of Japan's ruling Liberal Democratic Party and New Komeito, the junior coalition partner of the LDP, defeated the 15 other candidates by garnering 2,112,979 votes. He was elected Tokyo governor for the first time.

Source: Jiji Press

Japan's rural-urban divide

The nation's rural communities are becoming more vocal about central government priorities.

An untold story is emerging in the mountains, farmlands, and forests of Japan.
 On March 11, 2011, disaster struck the island country: first in the form of one of the largest earthquakes to hit the island country and, second, a nuclear reactor meltdown.
 The disasters have forced the Japanese government to reconsider its position on energy and environmental planning.

But while considerable time has been dedicated to the ways in which Japan can surmount the questions of energy security in the post-Fukushima Daiichi era, a new story - not one cradled in the bright lights of Tokyo or Osaka, but instead in the ancient Japanese countryside - is being ignored. Rural communities throughout Japan are becoming increasingly vocal about an urban-rural divide that has been generally unquestioned for over 150 years. This newfound rural voice is pulsating throughout the countryside, speaking of environmental justice and an unfair urban bias in planning. As the Japanese government continues with ongoing energy and environmental planning debates in this new era, this voice is positioned to become increasingly loud.

Source: The Diplomat

Japan: Evacuation plan prepared for Mt. Fuji eruption

The prefectural governments of Shizuoka, Yamanashi and Kanagawa adopted the first comprehensive evacuation plan on Thursday to prepare for a possible eruption of Mount Fuji, Japan's highest peak.

The evacuation plan calls for 750,000 people leaving their homes in 14 municipalities in Shizuoka and Yamanashi due to lava and pyroclastic flows, as indicated in March 2013.In addition, 470,000 people, mainly in Kanagawa, would need to evacuate because of volcanic ash in the air, according to the latest plan.

Source: Jiji Press

China service sector slows

In a sign that growth in China continues to moderate, HSBC's services PMI for China came in at its lowest level since August of 2011. Analysts say seasonal factors and slower factory activities are likely culprits.

The survey showed last month's services PMI dropped to 50.7. That means the services sector is still expanding, but at a slower rate as new business growth fell to a seven-month low and service providers discounted the most in January since June of 2012.

Experts say government measures to curb extravagance also played a role in the dip as the index slid for a third straight month. Analysts say improvement depends on stronger manufacturing growth and government efforts to expand the services sector through reforms.

Source: CCTV

China's surplus gained through more balanced global trade

China gained additional foreign reserves last year through more balanced global trade. That's according to preliminary data from China's foreign exchange regulators.

China had a near 50 billion US dollar surplus on the current account in the fourth quarter of last year and an 81 billion US dollar surplus on its combined capital and financial accounts. Overall, the country posted a 189 billion dollar current account surplus for all of 2013 and a 243 billion US dollar surplus in its capital and financial accounts.

Experts say that China's foreign trade has become more balanced since its current account surplus peak back in 2008 that year, China's current account surplus as a percent of GDP came in at ten percent, but has since dropped to two percent in 2013, the lowest in nearly a decade.

Source: CCTV

Unified system to be established for Chinese urban, rural residents

China will establish a unified pension system for residents in both rural and urban areas to boost consumption, and labor mobility. That's according to a statement the State Council posted on its website Friday.

The statement says the funding will come from individuals, government and social institutions. The central government also will fully cover pension payouts in China's central and western areas, and will pay half of the pension in eastern regions. In addition, the government will also increase spending on pensions and improve management levels. The system now ties pension benefits to an individual's residency permit, which has discouraged many workers from seeking jobs outside their hometowns.

Source: CCTV

Google to own Lenovo stake

PC giant Lenovo's shares rose by more than one percent today on the back of news of Google’s massive investment in the company.

According to a disclosure on the Hong Kong stock exchange, Google will own a 5.94 percent stake in Lenovo valued at 750 million U.S. dollars as part of its recent acquisition of Motorola's handset division. Lenovo agreed last week to buy Motorola Mobility for 2.91 billion U.S. dollars in a cash and stock deal. Analysts say the agreement between Google and Lenovo ends the web giant's participation in the smartphone industry.

Source: CCTV

First Chinese bank opens in Peru

The world's largest bank by assets has launched operations in Peru, and it's Chinese. The Industrial and Commercial Bank of China or ICBC is looking to profit from the growing presence of Chinese companies in the Andean country.

Cutting the red ribbon, China's biggest bank made a discreet entry into Peru's financial market.

"This bank will start as a wholesale bank with Chinese companies and then will expand to serve Peruvian clients," said Daniel Schydlowsky, Peru superintendent of banks and insurance.

It's entry is a sign of China's increasing presence in Peru, especially in the mining sector. A small number of banks dominate Peru's banking sector, there's room for growth:

"We want to have a very good business and we have confidence. The important factor is the increasing investment between the two countries and also the increasing international treaties between the two countries. As the first Chinese bank we will take this opportunity to become a bridge - a financial bridge - between China and Peru," said Ma Xingjun, president of ICBC Peru.

Chinese demand for raw materials such as copper has made it Peru's biggest export market in recent years. Mining has begun at the Chinalco Mining Corporation's 4.8 billion dollar Toromocho copper mine.

And a consortium of Chinese firms, including China Minmetals Corporation, is the frontrunner to acquire a 5.9 billion dollar copper project Las Bambas from Glencore Xstrata.

The Industrial and Commercial Bank of China is the first Chinese bank to open in Peru but you won't be seeing branches on Lima's high streets just yet. This corporate bank will start with around 50 clients but consensus here is that the possibilities for expansion are huge.

Beyond mining, executives see growing potential in the fishing and energy sectors, but also agricultural exports to China.

"There are ample possibilities to develop new clients, what we must understand is that now we have a small capacity and that's our principal limitation at the moment while we develop more infrastructure," said Deuaro Patisias, deputy manager of corporate banking, ICBC Peru.

The ICBC is the first but likely not the last Chinese bank to set itself up in Peru.

Source: CCTV

Hong Kong shop vacancies rise

More and more shops remain empty in second-tier shopping streets in Hong Kong. That's as would-be tenants have been unable to meet demands for higher rents.

This is Percival Street in Causeway Bay – just a stone's throw away from Times Square and Russell Street, the priciest shopping area in the world. Percival Street isn't like what it used to be. More street-level stores here are now coming up vacant, like this one.

The situation is the same here in adjacent Foo Ming Street. About half of the street's 10 shop like this one are vacant or leased on short-term contracts.

Pak Sha Road and Lee Garden Road are both within striking distance of Times Square and they face the same vacancy issue. Property consultancy CBRE says the problem is most acute here in Causeway Bay, where rents have risen sharply in the past few years. Vacancy rates have picked up since the fourth quarter of 20-13, and it's particularly serious along the second-tier shopping streets.

Curiously, the top-tier shopping streets like here where Times Square is located don’t have the same vacancy problems. Why?

Because it's the luxury brands that want the most prime space of all. And they're the only ones that can afford it.

There used to be a day when those luxury brands would rent shops in the second-tier streets I just showed you, but that was a time when retail sales were much stouter.

Now that retail sales aren't as robust as before, the luxury brands have slowed expansion and are locating themselves only in the most prime shop spaces in Times Square.

The empty spaces along the second-tier shopping streets may not stay vacant for long, however. Some landlords have reportedly become more willing to accept lower rents. That's because as more shops stand empty, tenants start to get the better end of the stick and gain strong bargaining power. CBRE expects rents in the second-tier shopping streets to drop more than 10 percent this year while the costs of top-tier locations will stay firm.

China: Consumer spending rises amid frugality campaign

Chinese people spent more money during this lunar new year holiday than the last. The rise in retail sales came despite the government's campaign calling for frugality. Our reporter Wu Guoxiu spoke to an expert on the new year holiday economy.

Among the traditions in Chinese new year is giving gifts. This year, people favored less expensive gifts, without fancy packaging.

In some supermarkets, sales of traditional treats rose more than 20 percent, but fell off for luxury gift packs. People still went out, but spent less per meal. Restaurants hung banners to remind diners not to waste food.

"The government has been cracking down conspicuous consumptions, frugality campaign, if you don’t have to regift, there is no point to buy very expensive stuffs," said Xu Sitao from Economist Intelligence Unit.

Fireworks sales were also down. In Beijing, it was by half.

"I only bought one roll of firecrackers this year to help the environment, much less than last year," said a Beijing resident.

But the consumer market has actually not cooled down. Latest figures from the Ministry of Commerce show that in the one-week-long New Year holiday, the sales volume of China's retail and catering market rose to over six hundred and ten billion yuan, 13 percent higher than the same period last year. People this year stayed away from expensive gifts and dinners, preferring to spend their money on travel and leisure activities.

Besides domestic tours, the National Tourism Bureau says over 4.7 million Chinese travelled abroad during this holiday, 18 percent up from last year.

Cinemas also enjoyed a new year boom. Ticket sales in the first three days surpassed the entire new year holiday week last year.

" I don't want to overemphasize the importance of government policy. In the end, people's consumption is going to be driven by people's disposable income, wealth," said Xu Sitao.

For many, frugality doesn't mean doing without. Frugality means spending wisely--no matter how much or how little you have.

China's Jan. CPI expected to edge lower to 2.3%

Markets are eagerly awaiting the latest flurry of Chinese data. The country's January inflation gauge is due to released by the National Bureau of Statistics next week.

Analysts predict that annual inflation may edge lower to 2.3 percent in January from 2.5 percent in December. That's mainly due to expectations of sufficient food supplies during the Lunar New Year holiday. Meanwhile, analysts say that a warmer-than-usual winter also has depressed agricultural prices which leads to less price pressure for food.

Source: CCTV 

ART-Dance danza. PINA BAUSCH. Tribute by her dancers.

               
                                           Tribute to Pina by her dancers.