Modafinil - the time-shifting drug

The wonders of pharmacology keep appearing regularly, each new drug seemingly too good to be true. In recent times there have been several killer apps for the drug industry – chemical substances that replace depression with a happy disposition or bolster a flagging sex drive to royal command performance (with encore) levels. Prozac and Viagra provided benefits so compelling they have entered everyday language and have a global following. Now there’s another “drug-most-likely-to-succeed” – this one enables you to stay awake for 40+ hours with close to full mental capacity with few side effects

Modafinil improves memory, and enhances one's mood, alertness and cognitive powers. The drug has a smoother feel than amphetamines and enables the user to stay awake and alert for 40 hours or more. Once the drug wears off, you just have to catch up on some sleep.

Marketed as Provigil ', 'Aletec' and 'Vigicer', Modafinil is a psychostimulant approved by the US Federal Drug Administration for improving wakefulness in patients with excessive sleepiness associated with shift work sleep disorder, obstructive sleep apnea / hypopnea syndrome and narcolepsy.

Not surprisingly, a drug that enables people to stay awake for 40 hour periods at close to full mental capacity with no real side effects could quickly gain widespread usage as a time-shifting drug. Got a project to do, Particularly, when it is devoid of the jitteriness associated with most drugs commonly used in such circumstance such as dextroamphetamine, cocaine and the world's most popular drug, caffeine.

"Au natural", (without drugs) humans don't deal well with lack of sleep and thanks to our fast-paced lifestyle and ever-increasing job demands, sleep deprivation is a commonplace occurrence in modern culture.

Australian researchers recently found that people who drive after being awake for more than 17 hours performed worse than those with a blood alcohol level of .05 percent (the local blood alcohol limit). Tests the world over have found that sleep deprivation significantly reduces human performance capabilities, coordination, reaction time and judgment.

Twenty four hours without sleep is enough to reduce most humans to half their normal mental capacity and it declines rapidly from that point.

Not surprisingly, the military are showing the most interest in the drug.

A large part of battle fatigue is sleep deprivation. When the military is on the move, almost everybody is required to perform mission-critical tasks way after they should be asleep. From the personnel at command HQ to the soldiers at the front, two or three weeks of activity with just a few hours sleep per day is routine in combat situations.

For years the military has been exploring new methods to safely combat sleep deprivation and to prevent the associated degradation of performance.

A drug that can double the mental capacity and alertness of a fighting force has more than doubled its effectiveness.

On top of that, with military communications now in real-time, this is a drug that might keep a small fighting force in heavy contact going until the sky's open up and help arrives.

But likely candidates for the modafinil fan club aren't hard to find beyond the military, if the world's caffeine consumption is any indication.

Caffeine is a drug used across the planet for combating fatigue, restoring mental performance and enhancing exercise endurance. Caffeine occurs naturally in more than 60 plant species each contributing to a whopping global per capita consumption estimated at around 70 milligrams (mg.) per person per day some 20 years ago. That figure is growing.

More than half of all American adults consume 300 mg. or more of caffeine every day. Nine out of ten Americans consume caffeine every day.

The most prolific caffeine contributor is coffee, the second most valuable legally traded commodity on Earth (after oil) with annual global retail sales more than US$70 billion. Caffeine is also contained in tea, chocolate and caffeine-enhanced cold drinks such as Coca Cola, Pepsi Cola, Red Bull et al.

In recent times, the caffeine-enhanced softdrink market has burgeoned.

In 1970, the average american drank 36 gallons of coffee and 23 gallons of carbonated soft drinks. By the year 2000, coffee consumption had more than halved to 17 gallons and soft drinks had grown 130% to 53 gallons. Caffeine consumption has grown significantly and a large proportion of that caffeine was imbibed with the sole aim of performance enhancement.

Unfortunately, the benefits of caffeine are such that constant use builds immunity, leaving the jitteriness but not the enhanced performance and most of the world's habitual coffee consumption is used to stave off the effects of caffeine withdrawal. Modafinil does not appear to have such drawbacks, though users should be acutely aware that prolonged and regular use of the drug will lead to health issues.

Almost any profession requires being switched on (mentally alert) at least some of the time, and if it's good enough for the most scientifically-analysed elite warriors on the planet, we suspect it'll be good enough for all other armed forces personnel, emergency and rescue workers, police, firefighters, and doctors, who are faced with very long hours of making potential life and death decisions ... and all those who need or choose to work long hours in their profession, from truck and taxi drivers, through to computer programmers.

Sportspeople are another likely marketplace - at the June 2003 United States Track and Field Championships, a star studded field of athletes tested positive for modafinil including sprinters Kelli White, Chris Phillips, Calvin Harrison and Chryste Gaines, hurdlers Sandra Glover and Eric Thomas and hammer thrower John McEwen. Modafinil now attracts a two year ban from all elite sports, but can be expected to proliferate at any level where drug testing does not occur.

Then there will be those who will take Modafinil for recreational purposes - it just might be the ultimate party drug with the user awake, alert and balanced and no problems remembering what happened or what got said the next morning.

So how good is it? Researchers recently had the opportunity to compare a group of America's finest with and without modafinil.

The testing was done using elite F-117A Nighthawk pilots - an F117-A Nighthawk is one of those black triangular stealth attack aircraft used with surgical precision by the US airforce in all recent wars.

Just over 60 Nighthawks were built and only one F-117A unit exists - the 49th Fighter Wing, at Holloman Air Force Base, N.M. The single-seater can fly at high subsonic speeds for unlimited distances with air refuelling. On their first deployment to Kuwait in 1992, a group of F-117s flew non-stop for 18.5 hours, a record for single-seat fighters that stands today.

With the right pilot aboard, the Nighthawk is a formidable weapon - a precision-strike aircraft with exceptional combat capabilities particularly suited for penetrating high-threat airspace with its stealth and speed and hitting critical targets with surgical accuracy using laser-guided weapons.

During Operation Desert Storm the Nighthawk flew approximately 1,300 sorties scoring direct hits on 1,600 high-value targets in Iraq. At US$45 million each, the Nighthawk is one of America's most effective weapons. When the United States declares war on you, the chances are the Nighthawk will be the first to tell you hostilities have begun. It was the ONLY U.S. or coalition aircraft to strike targets in downtown Baghdad and it led the first Allied air strike on Yugoslavia in March, 1999.

Our test group was the people who fly these aircraft - people who push the limits of human performance day-today using one of the most expensive and sophisticated aircraft on the planet. For the records, the F117-A is built by Lockheed Aeronautical Systems, is powered by two General Electric F404 non-afterburning engines is 19.4 metres long, 3.9 metres high, weighs 23,625 kilograms and has a wingspan of 13.2 metres.

The Laboratory and simulator tests studied the effects of being awake for 40 hours on alertness and flight performance.

The tests were repeated every five hours to help track the pilots' level of fatigue by monitoring body and brain activities. One test is a one-hour flight simulator mission. Researchers looked at the aviators' ability to monitor flight gauges and calculate basic mathematical equations. They also monitored eye movements and changes in pupil size.

While no one crashed or even came close to crashing, researchers said flight precision most noticeably changed between 33 hours and 38 hours into the test.

Armed with this initial data, the scientists returned to Holloman a few months later for the modafinil study.

Scientists said that while the pilots were on the medication, their performance "significantly improved," especially after 25 hours without sleep. The pilots also sustained brain activity at almost normal levels despite their sleeplessness.

During the simulator tests, modafinil "significantly" reduced the effects of fatigue during flight manoeuvres, researchers said.

Under the influence of modafinil, flight performance degraded by 15 to 30 percent. Performance by pilots without the medication degraded by 60 to 100 percent compared to fully rested performance levels.

The results of the testing were heavily conclusive - modafinil was effective for reducing the impact of fatigue.

International biopharmaceutical company Cephalon owns the worldwide rights to Modafinil.

Modafinil is available in more than 20 countries and is marketed under the brand name PROVIGIL in the United States, United Kingdom, Ireland, Italy, South Korea, Belgium and Luxembourg. Modafinil is available in other countries under the brand names, ALERTEC, MODIODAL, MODASOMIL, MODAVIGIL and VIGIL.

Modafinil is listed as a Schedule IV drug under the Controlled Substances Act. Schedule IV drugs as a class have a lower abuse potential than drugs listed in Schedule II or III. Other examples of Schedule IV drugs include Ambien, Xanax and Ativan. Examples of Schedule II drugs include Actiq, morphine, methadone and methylphenidate (Ritalin). Examples of Schedule III drugs include anabolic steroids, codeine and hydrocodone with aspirin or Tylenol, and some barbiturates.

Cephalon recently announced that it has filed an application with the U.S. Food and Drug Administration (FDA) requesting marketing approval of a new proprietary form of modafinil for the treatment of attention- deficit/hyperactivity disorder (ADHD) in children and adolescents between the ages of six and 17.

Blood test determines severity of concussions

It wasn't so long ago that shaking off a knock to the head and getting back on the field was seen as a sign of toughness for sportspeople. But in recent years, increased awareness of the potential for long-term damage has put the seriousness of concussion in the spotlight. Researchers at Sahlgrenska Academy in Sweden have now developed a blood test that reveals the severity of a concussion and when it is safe for a player to return to the game.

Diagnosing the severity of concussion is notoriously difficult, with many concussions not producing any noticeable signs or symptoms. Neuropsychological tests are one of the most common diagnostic testsused by sporting team medical staff to ascertain whether a person is concussed, but researchers from Sahlgrenska Academy at the University of Gothenburg wanted to find a more definitive diagnostic test.

To this end, the researchers monitored and examined all the players in Sweden's top hockey league. Ice hockey is a notoriously violent sport, with 35 of the 288 players in the Swedish Hockey League sustaining a concussion just half way into the 2013 season. These 35 players were asked to provide blood samples directly after and during the days after they received a concussion. These samples were then compared to samples taken from two full teams before the season began.

The tests showed that concussed players had elevated levels of a special nerve protein, called tau, in the blood. By measuring the levels of tau in a standard blood test, the researchers say it is possible to determine the severity of a concussion one hour after the injury was sustained. Additionally, the test can predict with an even greater degree of accuracy which players would experience long-term symptoms and therefore need to rest for longer.

"In contact sports like ice hockey, boxing and American football, concussions are a growing international problem," says Henrik Zetterberg, Professor at the Institution for Neuroscience and Physiology, the Sahlgrenska Academy. "The stakes for the individual athlete are high, and the list of players forced to quit with life-long injury is getting ever longer.

"We hope that this method will be developed into a clinical tool for club physicians and others in sports medicine, and is used as a basis for the decision on how long the player should rest after a blow to the head. It could even be used in general in emergency medical care to diagnose brain damage from concussions regardless of how they happened."

Results of the study, which was conducted in collaboration with researchers at Luleå University of Technology, Sahlgrenska University Hospital and the US biotech firm Quanterix Corporation, appear in the journal JAMA Neurology.

Source: Sahlgrenska Academy

Departure Ep. 2: Frontiers - ASMR Sci-Fi Series

TRY ASMR. Some people believe ASMR is a residual response from early childhood, an echo of the calming, soothing effect of a mother's voice on an infant, coupled with the close, caring personal attention a parent can give.

"Good" gut microbes revealed as the key to dark chocolate's health benefits

It has long been known that eating chocolate, particularly dark chocolate, has numerous health benefits. Although various studies have backed this up, the exact reason as to why this is so has remained a mystery. Now researchers from Louisiana State University have provided the answer – gut microbes.

Presenting their findings at the 27th National Meeting & Exposition of the American Chemical Society (ACS), the researchers revealed that, unlike so-called "bad" bacteria in the gut, such as some Clostridia and some E. coli, that are associated with inflammation and can cause gas, bloating, diarrhea and constipation, "good" bacteria, such as Bifidobacterium and lactic acid bacteria, feed on dark chocolate to produce anti-inflammatory compounds.

John Finley, Ph.D., who led the world-first research into the effects of dark chocolate on the various types of bacteria in the stomach, says that when these anti-inflammatory compounds are absorbed by the body, they lessen the long-term risk of stroke by reducing the inflammation of cardiovascular tissue.

Using a series of modified test tubes as a model digestive tract that simulated normal digestion, the team tested three different cocoa powders. Cocoa powder, which is a key ingredient of chocolate, contains several antioxidant compounds and a small amount of dietary fiber, both of which are poorly digested and absorbed in the stomach but are feasted on by good microbes when they reach the colon. Using human fecal bacteria, the team subjected these non-digestible materials to anaerobic fermentation.

"In our study we found that the fiber is fermented and the large polyphenolic polymers are metabolized to smaller molecules, which are more easily absorbed," said Finley. "These smaller polymers exhibit anti-inflammatory activity."

Finley says that combining the fiber in cocoa with prebiotics, (non-digestible carbohydrates available in dietary supplements, but also found in food like raw garlic and cooked whole wheat flour that stimulate the growth and/or activity of bacteria in the digestive system), could also help convert antioxidant polyphenolics in the stomach into anti-iflammatory compounds, which he believes is likely to improve a person's health.

"When you ingest prebiotics, the beneficial gut microbial population increases and outcompetes any undesirable microbes in the gut, like those that cause stomach problems," he said. Finley added that combining dark chocolate with solid fruits, such as pomegranates and acai could also provide even greater health benefits.

Source: ACS,Gizmag

Discovery of body clock reset mechanism could help shift workers and jetsetters

The human body clock is the curse of any shift worker or traveler arriving in a new time zone. Although one's body clock can be adjusted by external cues, such as light – a factor that devices such as the Re-Timer and Litebook are designed take advantage of – the adjustment period can vary significantly for different people. Now researchers have discovered the mechanism that controls how easily such adjustments can be made.

Body, or circadian, clocks orchestrate daily rhythms in our physiology. When this internal clock is thrown out of sync, be it by working nights or taking an international flight, it can negatively affect our sleeping patterns and metabolism.

"We are not genetically pre-disposed to quickly adapt to shift-work or long-haul flights, and as so our bodies' clocks are built to resist such rapid changes," says Dr David Bechtold. "Unfortunately, we must deal with these issues today, and there is very clear evidence that disruption of our body clocks has real and negative consequences for our health."

Dr Bechtold led a University of Manchester team that worked with scientists from Pfizer on a series of experiments involving mice that focused on an enzyme known as casein kinase 1epsilon (CK1epsilon), which is a component of the body clock.

"At the heart of these clocks are a complex set of molecules whose interaction provides robust and precise 24 hour timing," says Dr Bechtold. "Importantly, our clocks are kept in synchrony with the environment by being responsive to light and dark information."

The team found that mice lacking in CK1epsilon were able to adapt to a new light-dark environment much faster than normal. The team followed up this finding by showing that drugs that inhibited CK1epsilon were able to speed up the adaption rate of normal mice. Importantly, faster adoption to the new environment reduced metabolic disturbances caused by the time shift.

"As this work progresses in clinical terms, we may be able to enhance the clock's ability to deal with shift work, and importantly understand how maladaptation of the clock contributes to diseases such as diabetes and chronic inflammation," says Dr Bechtold.

The team's discovery is published in the journal Current Biology .

Source: University of Manchester

Asia shares pare gains after weak China survey

Asian shares gave up earlier gains on Monday after the China HSBC flash manufacturing purchasing managers index (PMI) fell to an eight-month low in March.

The preliminary reading of 48.1 fell from February's final reading of 48.5, while the "flash" March index also showed new orders slid for a fourth consecutive month to 46.9 -- its lowest point since July 2013, while output fell to 47.3, the lowest since September 2012.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent after the China data's release after gaining as much as 0.5 percent.

Japan's Nikkei share average bucked the trend and gained 1.3 percent.

"The concerns around China's growth are likely to remain over the coming weeks as the slowdown in orders over the winter months and Chinese Luna New Year filter out," Eva Lucas, market strategist at IG in Melbourne, wrote in a note to clients.

The Australian dollar, a liquid proxy for China, fell around a quarter of a U.S. cent after the disappointing reading.

The yuan suffered its biggest weekly drop against the dollar last week as policymakers try to flush out hot money from the market.

Overall, appetite for risk remained somewhat suppressed as geopolitical tensions continued to simmer after NATO's top military commander said on Sunday Russia had built up a "very sizeable" force on its border with Ukraine, and Moscow may have a region in another ex-Soviet republic, Moldova, in its sights after annexing Crimea.

The euro edged away from a recent low hit against the dollar as traders continued to recalibrate expectations around U.S. monetary policy after Fed Chair Janet Yellen last week raised the prospect of an earlier start to interest rate hikes.

It was $1.3788 after hitting a two-week low of $1.3749 on Thursday.

Investors snapped up the greenback last week as they swiftly brought forward the risk of a U.S. interest rate hike early in 2015 after Yellen surprised markets by raising the prospect of such a move.

The dollar rose 0.2 percent to 102.495 yen, with the Japanese currency continuing to draw safe-haven bids as investors continued to fret over the crisis in Ukraine.

Currency markets were also keeping an eye on emergency talks between leaders of the Group of Seven leading nations scheduled to take place later in the session at The Hague, where the G7 will probably discuss how to exert further pressure on Russia and at what potential cost.

Three-month copper on the London Metal Exchange fell 0.8 percent to $6,429.75 a tonne in wake of the China data, erasing small gains from the previous session.

Spot gold dipped to $1,327.06 an ounce, still reeling from a sharp fall triggered by Yellen's comments last Wednesday. Russia's assurance last week that it had no plans to invade other parts of Ukraine has also taken some of the gloss off gold.

Crude oil held some distance above last week's low as fresh U.S. and European sanctions on Russia renewed fears of a supply disruption from the world's second largest oil producer.

Brent crude traded at $106.65 a barrel with supply disruption worries keeping it off a six-week trough of $105.41 hit on Thursday.

Source: Reuters

Central banker says defaults may be good for China markets - paper

(Reuters) - Some debt defaults could be positive for market discipline in China and help the wealth management products market develop in a more healthy way, an influential state-run newspaper on Monday quoted deputy central bank governor Pan Gongsheng as saying.

To help prevent systemic risk, "naturally occurring" defaults may be "conducive to strengthening market discipline constraints, correcting the behaviour of product issuers and investors, and also conducive to the healthy development of the wealth management market," the Shanghai Securities News quoted Pan as saying.

Earlier this month, loss-making Shanghai Chaori Solar Energy Science and Technology Co Ltd missed a bond interest payment, the first such domestic bond default of its kind and an event seen as a landmark for market discipline in the world's second-largest economy.

The Chaori default followed a series of near misses in recent years in which local governments stepped in at the last minute to rescue local champions.

Speaking at a March 13 news conference, Chinese Premier Li Keqiang signalled that the government would not ride to the rescue of every troubled investment by saying some loan defaults are "hard to avoid" in what he called a challenging economic environment.

Growth in Chinese corporate debt has been unprecedented. A Thomson Reuters analysis of 945 listed medium and large non-financial firms showed total debt soared by more than 260 percent to 4.74 trillion yuan (£471 billion) between December 2008 and September 2013.

China March HSBC flash PMI falls for fifth month in row

Activity in China's factories shrank for a fifth straight month in March as output and new orders both weakened, a preliminary private survey showed on Monday.

The flash Markit/HSBC Purchasing Managers' Index (PMI) fell to an eight-month low of 48.1 in March from February's final reading of 48.5.

A reading below 50 indicates a contraction while one higher than that shows expansion.

The preliminary March index showed new orders slid for a fourth consecutive month, to 46.9 -- its lowest point since July 2013, while output fell to 47.3, the lowest since September 2012.

New export orders grew for the first time in four months, suggesting that the mild slowdown China is facing, which has caused some jitters in global markets, has been driven primarily by weak domestic demand.

Another encouraging sign was a substantial increase in the employment sub-index, though the number remained below 50.

Chinese Finance Minister Lou Jiwei said in early March that a healthy labour market is more important than reaching the government's 2014 growth target of about 7.5 percent.

"Weakness is broadly-based with domestic demand softening further," said Hongbin Qu, chief economist for China at HSBC, in a comment accompanying the PMI data.

"We expect Beijing to launch a series of policy measures to stabilise growth. Likely options include lowering entry barriers for private investment, targeted spending on subways, air-cleaning and public housing, and guiding lending rates lower."

A string of weak economic indicators so far this year, including surprisingly weak exports in February, has reinforced concerns about a slowdown in the world's second-largesteconomy.

Premier Li Keqiang said last week that China will speed up investment and construction plans to ensure domestic demand expands at a stable rate.

The government has said it would like to reduce the economy's dependence on exports and enhance the role of domestic consumption, but it is unclear how much growth it might be willing to sacrifice to reach that goal.

The Chinese yuan hit a 13-month low on Friday, which traders and analysts attributed in part to attempts by the central bank to curb betting on the currency's appreciation. A weak yuan also helps exports, which stumbled in February.

The Markit/HSBC PMI is weighted more towards smaller and private companies than the official index, which contains more large and state-owned firms.

Both the final Markit/HSBC manufacturing PMI and the official manufacturing PMI for March are due on April 1.

Source: Reuters

WSJ: Apple in Talks With Comcast About Streaming-TV Service

        The Wall Street Journal reports,"Apple Inc.  is in talks with Comcast Corp.  about teaming up for a streaming-television service that would use an Apple set-top box and get special treatment on Comcast's cables to ensure it bypasses congestion on the Web, people familiar with the matter say.

The discussions between the world's most valuable company and the nation's largest cable provider are still in early stages and many hurdles remain. But the deal, if sealed, would mark a new level of cooperation and integration between a technology company and a cable provider to modernize TV viewing".

Apple's intention is to allow users to stream live and on-demand TV programming and digital-video recordings stored in the "cloud," effectively taking the place of a traditional cable set-top box.

Apple would benefit from a cable-company partner because it wants the new TV service's traffic to be separated from public Internet traffic over the "last mile"—the portion of a cable operator's pipes that connect to customers' homes, the people familiar with the matter say. That stretch of the Internet tends to get clogged when too many users in a region try to access too much bandwidth at the same time.

Apple's goal would be to ensure users don't see hiccups in the service or buffering that can take place while streaming Web video, making its video the same quality as Comcast's TV transmissions to normal set-top boxes.

Chinese internet giants move into the U.S.

As China’s e-commerce giant Alibaba prepares for an IPO in the U.S, other Chinese internet heavyweights are also considering IPO destinations, with America remaining a hot spot.

The titans of the world’s biggest Internet markets are lining up to take their battles to the U.S. Alibaba Group, JD.com, Weibo. Here in China you can’t get away from them.

JD.com. started as they go to place for electronics but now sells just about everything. It’s China’s second largest online retailer and has market leader, Alibaba, in its sights.

JD.com is investing in a massive logistics network, so its biggest challenge in the near-term may be profitability.

The Internet giant hitched its wagon to WeChat -- China’s most popular mobile messaging app. WeChat is owned by Tencent, which is already listed in Hong Kong. There’s talk that Tencent is considering an IPO for WeChat too.

WeChat started as a straight messaging service like WhatsApp but is quickly morphing into a one-stop mobile Internet shop.

Moments: it’s like a Facebook for sharing. Bank Card: link it to WeChat and spend away, even pay cab drivers. Games. It’s missing a good map app.

But it’s unclear how many of these innovations can actually make money. Tencent’s ad revenues are weak compared to international peers. Weibo is owned by New York-listed Sina and Alibaba’s also scooped up a stake. It’s been the microblog to beat and a force for change in China with hundreds of millions of users trading news and views.

So do these firms hold long-term promise for investors?

"2014 is going to be a year of mobile land grabs. So you’re a little bit more aggressive in terms of fighting for the users. After two years when China’s smartphone penetration reaches 70-80 percent, I think the market competition will be relatively more stabilized and we’ll see better revenue and earning growth for these companies," CLSA head of telecom and internet research Elinor Leung said.

All of China’s big Internet players are likely to benefit as the market’s blistering growth continues.

But expect some blood -- and red ink -- to be shed as the companies move into each others’ territory.

China: ZPMC completes first offshore drilling platform

Zhenhua Heavy Industries, also known as ZPMC, the world's biggest port machinery manufacturer, completed its first rig on Friday. It is the most advanced self-developed offshore drilling platform in the nation.

The rig, called KS Java Star 2, is the outcome of collaboration between ZPMC, formerly known as Shanghai Zhenhua Port Machinery Co, and Friede Goldman United Ltd, the US-based designer and service provider for drilling platforms.

ZPMC's parent China Communications Construction Co Ltd acquired Friede Goldman in 2010 for $125 million.

Built at a cost of US $165.65 million, the KS Java Star 2 is capable of working in water 300 up to feet deep. A notable feature is a cantilevered "envelope" that can provide accommodation for 110 persons.

The rig is owned by Singapore's KS Energy Ltd and will be delivered to Vietnam shortly to work on a contract there, according to Kris Wiluan, chairman and chief executive officer of KS energy.

About one-third of ZPMC's total orders were from marine engineering businesses last year. "And we are ambitiously looking forward to having more than half of our orders derived from marine engineering in the coming years," said Song Hailiang, chairman of ZPMC.

Source: ChinaDailyUSA

China's CCTV: Ukraine economy needs bailout

The ongoing Ukraine crisis has jolted the country's trade and energy markets. Ukrainian businessmen are going through hard times. Analysts say the economy needs bailout funds immediately.

The Seventh-Kilometer Market is the biggest outdoor market in Odessa, Ukraine. There are many independent traders at the market selling everything from pricey luxury goods to all sorts of cheap consumer products. But now, the market sits nearly empty because of the Ukraine crisis that started at the end of last year.

"It's a tough time to do business as the hryvnia has lost its value. That means that commodities prices keep rising these days. My business is down almost by half," a dealer said.

Apart from the vulnerable foreign exchange, oil prices are also a main issue facing businesses. Oil and gasoline prices have spiked on the unfolding Ukraine crisis, which has also driven up commodity prices. Importers worry that the tensions in Ukraine may affect domestic supplies.

"There are some problems with contract payments due to the existing Ukrainian foreign exchange crisis. The country's central bank has carried out the policy to restrict buying foreign exchange," said Professor Sergey Yakubovskiy at Odessa Mechnikov National University.

The European Commission has agreed to give nearly 500 million euros worth of trade benefits to Ukraine. Analysts say that's the only way to prop up the troubled country's economy.

PBOC: no grounds for large swings in the yuan

The recent drop in the yuan triggered speculation that China's central bank is depreciating the Renminbi on purpose. But newly released figures show the real reason.

The increase in funds outstanding for foreign exchange in February was 128 billion yuan, 71% lower than January's figure.

Industry insiders say the drop was due to the Chinese New Year holidays and volatility in external markets.

The yuan dropped over 1,000 basis points against the U.S. dollar since mid-February. The exchange rate is now at an 11-month low.

The central bank reiterates the yuan rate depends on the supply and demand of foreign exchange which is based on balance of payments. A PBOC spokesperson says as China has ample forex reserves, there are no grounds for large swings in the yuan.

Source: CCtv

China to ensure funding for urbanization

China's Ministry of Finance said on Wednesday that it will speed up reforms in the urbanization process, such as fiscal, taxation, investment and financing.

Vice Minister of Finance, Liu Kun, said they will ensure funding for urbanization by innovating financial services and opening up market entry.

He also said that China will encourage social capital to take part in infrastructure construction, prevent and resolve financial risks, and strengthen controls on local government's borrowing behavior.

"We will support urbanization through local government bonds, and allow local governments to have rights to borrow money at a suitable level. Meanwhile, we will also improve the system of local government bonds, and explore a financing measure that combines both general bonds and designated bonds," Liu said.

Source:  CCTV

Chinese New Year distorts Feb. FDI data

Growth in China’s foreign direct investment slowed significantly in February due to seasonal factors. Meanwhile, investment in the services sector grew quickly while investment in manufacturing slowed.

China drew 19.3 billion US dollars in foreign direct investment in the first two months of 2014, up 10.4 percent from the same time last year.

FDI in February grew 4.1 percent from a year earlier, slowing sharply from a 16.1 percent increase in January. Ministry spokesman says that the data for February alone was not released due to seasonal distortion caused by the Chinese New Year. FDI from Asian and US economies rose faster than average.

"FDI from 10 Asian economies rose 11.6 percent, FDI from the U.S grew 43.3 percent from the same period last year. Investment from the EU dropped close to 14 percent year on year." said Shen Danyang, Spokesman, Ministry of Commerce.

The government has shifted its focus on attracting FDI inflows to high-end manufacturing, services sector and energy saving industries. Investment into the services sector has shown faster growth rate.

"Investment in the services sector accounts for more than half of the total investment in the first two months of this year. China’s services sectors received 10.6 billion dollars in FDI, up 25 percent from the same time last year." said Shen Danyang, Spokesman, Ministry of Commerce.

Outbound direct investment by Chinese firms totalled 11.5 billion dollars in the January-February period, down 37.2 percent from a year earlier. The sharp drop was due to a high comparison base caused by oil and gas producer CNOOC’s 15 billion dollar acquisition of Nexen in early 2013.

Alibaba's U.S. IPO estimated at $15 bln

Chinese e-commerce giant Alibaba Group has decided to hold its long-awaited IPO in the United States. The decision ends months of speculation after a Hong Kong listing didn't push through last year. But right now neither the NYSE nor the Nasdaq would comment on where exactly Alibaba would list.

Analysts say Alibaba could raise up to 15 billion U.S. dollars in the IPO. That would be the highest profile public offering since Facebook's 16 billion dollar listing in 2012.

This is seen as the second wave of major Chinese internet IPOs - Weibo and JD.com are two other key internet firms heading for U.S. listings.

Alibaba said on its website it might consider a future A-share listing so Chinese investors can share in the growth.

Source: CCTV

Moody's: China's growth to remain strong

Credit ratings agency Moody's expects China's economic growth to slow to the 7 and 7.5 percent range in 2014-15. But Moody's warns rising debt at the local government and corporate level may drag on growth.

Moody's says in a report that investment will be less crucial to China's sustainable growth but will remain an important driver.

The report also says the possibility of the central government having to offer financial assistance to local governments may constrain sovereign creditworthiness.

Moody's has changed China's outlook from positive to stable, and affirmed China's government's bond rating of Aa3.

China urbanization level expected to reach 60% by 2020

China on Sunday unveiled an urbanization plan for 2014 through 2020. The blueprint, called The National New-type Urbanization Plan, aims to assist rural residents moving to cities in an orderly manner.

The plan aims to have permanent urban residents make up 60 percent of the population by 2020, also at that time, registered residents who hold "hukous" should account for about 45 percent.

The government hopes that raising the number of legitimate urban residents will boost consumption and the service sector. To fund the urbanisation drive, the State Council will allow local governments to issue municipal bonds.

Source: CCTV

Xinhua In-Depth News Analysis: U.S. weighs further options with Russia in response to Ukraine crisis

 The United States is mulling its next steps toward Russia as Moscow seems unperturbed by what many have described as tepid U.S.-imposed sanctions over the crisis in Ukraine.

The United States sharply criticized Russia for its actions in Crimea earlier this month, and U.S. President Barack Obama will head to the Netherlands next week to press European leaders to get on board with harsher sanctions on Russia while attending the 2014 Nuclear Security Summit.

So far, the U.S. sanctions have consisted mainly of asset freezes and restrictions on travel to the West for a handful of Russians. Obama's critics said the move has given a green light to Russia to do whatever it pleases, as thus far no harsh punishment has come from Washington.

Indeed, the Kremlin took to Twitter earlier this week to mock Obama, with Deputy Russian Prime Minister Dmitry Rogozin tweeting out: "Comrade @BarackObama, what should do those who have neither accounts nor property abroad? Or U didn't think about it?"

Others said there is very little the United States can do, believing that harsher sanctions are unlikely to force Russia to reverse course and pull out of Crimea, which last weekend voted overwhelmingly to separate from Ukraine and become part of Russia.

Those sentiments were echoed by former U.S. Defense Secretary Robert Gates, who holds a PhD in Russian and Soviet history. He said recently U.S. sanctions are unlikely to deter Russian President Vladimir Putin.

Experts said Washington is highly unlikely to take any sort of military action after more than a decade of conflicts in Iraq and Afghanistan and with a public averse to involvement in crises that do not directly involve the United States.

Republican Strategist Ford O'Connell held the same opinion, but told Xinhua that if Washington did take that route, it would be a coordinated NATO effort.

Still, there are whispers on Capitol Hill about possible arming forces in Ukraine, Latvia, Estonia and Poland, but whether that becomes official policy depends on what Putin does next, O'Connell said.

David Clark, chairman of the Russia Foundation, told Xinhua that measures aimed at the Russian banking system and the stability of the ruble could have an immediate impact on Russia's economic interests.

The United States could also damage Russian interests by making more gas available for export as liquefied natural gas, reducing European prices and dependency on the Russian oil giant Gazprom, he said.

Russia currently supplies around a quarter of Europe's oil and natural gas, not to mention 40 percent of economic powerhouse Germany's gas, and Moscow has a deep trade relationship witheurozone nations, which some experts said could make Europe hesitant to impose harsh sanctions.

David Adesnik, visiting fellow at the American Enterprise Institute, told Xinhua that Obama has made "poor decisions" that may have emboldened Putin.

Putin's actions in Ukraine may have in part been because of a perception of American weakness, he said.

Meanwhile, Russia's Deputy Foreign Minister Sergei Ryabkov told Russian media on Wednesday that while Moscow does not want to use the Iran nuclear talks as leverage, Russia may have to.

Putin could theoretically share advanced nuclear and missile technology, effectively giving Iran what the United States wants to deny it, but such a move would be risky, as no nuclear power wants to admit a new member to the club, Adesnik said.

"More plausibly, Russia could subvert the sanctions against Iran," he added.

CPC meeting underlines further reform

Participants at a meeting of the Communist Party of China (CPC) on Monday decided that deepening reform would help China reach its economic and social development targets this year.

The meeting of the Political Bureau of the CPC Central Committee was convened to discuss the government work report to be submitted for deliberation at the annual plenary session of the National People's Congress, the top legislature, in early March.

China achieved better-than-expected results last year, despite experiencing more difficulties than expected, according to the meeting.

Participants concluded that China will continue to implement a proactive fiscal policy and prudent monetary policy, stabilize and improve its macro-control policies, keep economic growth "within a rational zone" and elevate growth quality and efficiency in order to achieve this year's goals.

The country has a solid foundation to attain medium and high-speed economic growth in the near future, according to the meeting, presided over by General Secretary of the CPC Central Committee Xi Jinping.

A decision was made to strive for new breakthrough in major areas of reform, construct an open economy, push forward "high-level" opening up and foster new world-class competitive edges, with the emphasis on restructuring the economic system.

It was also decided that the role of domestic demand as a "major engine" to drive economic growth should be bolstered, agricultural modernization and reform should be advanced, and more efforts should be devoted to protect the environment and fight air pollution.

The meeting also stressed the importance of urbanization, innovation, healthcare reform, the development of education and cultural sectors, and improving people's living standards.

SOURCE:   XINHUA

Challenging GDP Obsession. China's leadership takes "big exam" Part II

CHALLENGING GDP OBSESSION

Within 24 hours on Dec. 17, 2013, a total of 18 cement plants in Hebei were demolished, just one of the ways the province is slashing overcapacity. The target is to reduce cement production by 60 million tonnes by the year of 2017.

Cuts are also in the offing in steel production (60 million tonnes), coal production (40 million tonnes) and flat glass (30 million weight boxes).

Setting these targets is no easy job. For years, increasing industrial capacity meant a better place in the regional GDP rankings, even though production may already have been redundant. This resulted in dwindling profits and aggressive pollution.

Changes to the mindset of provincial officials came out of the "mass-line" campaign, which is not only a moral movement but addresses pragmatic concerns.

At the criticism and self-criticism session in Hebei last September, Xi described how determination was the key to structural adjustment. "Do you think the GDP winner takes all? Does a higher ranking make problems seem more decent?" Xi asked. "Over a half of the ten cities with the most serious pollution are in Hebei. Strap yourselves in for some adjustments. That is what you owe the public and history."

Xi's demands might be challenging for local governments, but many officials are relieved to be freed from the yoke of GDP obsession, said Hebei Governor Zhang Qingwei.

"We believe green GDP is a long-term, fundamental solution," Zhang added.

Luquan, a small city in Hebei, was once dubbed a "city of cement" and boasted a cement production capacity of 50 million tonnes. With cuts to overcapacity, Luquan slashed four fifths of its cement output. As the cement industry wanes, information, logistics and recreational services wax.

In 2013 Luquan's industrial electricity consumption fell by 130 million kwh, thanks to cuts in production, but fiscal revenue did not shrink. On the contrary, it increased by 360 million yuan (58 million U.S. dollars).

Since Xi took over as CPC general secretary, the economy has been under pressure and doubts about the sustainability of growth have been heard from abroad.

"It is not impossible for China to secure a faster growth, but we are refraining from seeking it," Xi said. "We would rather take initiative and gear down a little to handle the matter of long-term development with a fundamental solution."

It is not just officials who have changed their perspective. Ordinary people are seeing things differently too.

On an inspection tour about poverty alleviation in December 2012, Xi told Tang Rongbin, a 70-year-old farmer from a Hebei mountain village, that confidence could turn sand into gold. "The General Secretary told me to pay attention to my grandson's education, as hope always lies with the next generation," Tang recalled.

The 70-year-old also sees hope for himself. "I have joined with other villagers and obtained a loan to raise cattle. Selling a calf can bring in about 15,000 yuan," he said.

Xi's visit and the ensuing campaign have brought about changes to the county in many aspects, said Hao Guochi, local Party chief in Fuping.

The most obvious one, he said, happened in people's minds.

The Strengh of People and Party

During its 65 years of power, the CPC has made China into the world's second largest economy, but the Party, with its 85 million members, is well aware that legitimacy does not spring solely from economic development.

According to the constitution of the CPC, "the Party has no special interests of its own, apart from the interests of the working class and the broadest masses of the people."

"Winning or losing public support is an issue that concerns the CPC's survival or extinction," Xi said in June last year. According to Xi, the mass-line is the "lifeline of the Party" and a "fundamental route of work."

The campaign requires the Party gives top priority to the interests of the people; maintains the closest possible ties with them; exercises power on their behalf; shows concern for them; and works in their interests.

An ardent advocate of the campaign, Xi has been to Hebei many times over the past year to learn about public concerns and stay in touch with the masses. For impoverished Fuping County, Xi's visit in Dec. 2012 has indeed been a game changer and the Party-people bond there has never been stronger.

"Xi came into my house, sat down and didn't care if the place was dirty at all," 69-year-old farmer Tang Zongxiu who lives in Luotuowan, a village in Fuping, said as she recalled the President's visit more than a year ago.

"He asked about how much we earned each year, whether we had enough to eat, whether we had enough to get through the harsh winter, how long it took for the kids to get to school and whether we had easy access to health care," Tang said.

Only about three hours from Beijing, Fuping County has been on a national poverty alleviation plan since 1994. Xi spent over 20 hours in the village and his visit has kindled hope that the county might make its way off that list before long, as an influx of funds followed the visit.

"The General Secretary knows life here is difficult," she said, adding that she was astonished by Xi's affability when they chatted to each other.

In like manner, a later visit to Tayuan in Zhengding County Xi not only brought joy to the hamlet, but also called back old memories.

Xi was Party chief of Zhengding County from 1983 to 1985. Many former county officials still remember him as the young man in his late 20s, who would squat down under the tree outside the government canteen just like all his colleagues and eat with everyone.

"The tide of time has not washed away his rustic charm," said Yin Xiaoping, current Party chief in Tayuan. "The General Secretary remains, by nature, one of the masses."

Mass-line means the CPC doing everything for the people, relying on people in every task, and putting the principal "from the masses, to the masses" into action. Nonetheless, a considerable distance does exist between the Party and the people.

Sun Ruibin, Party chief of the city of Shijiazhuang, the capital of Hebei, was embarrassed during a trip to a village in northern Hebei, where his visit literally surprised the locals.

"I remember one villager said 'Hey, I can barely see you these days. This time, I finally got you,'" Sun said, "It just struck me how distant I had been from the people I had vowed to serve."

The mass-line campaign should put an end to such embarrassing episodes.

The new leadership has repeatedly warned that alienating itself from the masses constitutes the biggest threat to the Party. Xi expects Party officials to reflect on the questions of whom they serve and rely on, and from whom they draw power during their daily work. Failing to answer these questions correctly will cut the Party off from the people, says Xi, just as if they were behind a glass wall.

As the Party constitution reads, the biggest political advantage of the Party lies in its close ties with the masses while the biggest potential danger for it as a governing party comes from its divorce from them.

To serve the people and meet their expectations, Hebei has solicited public opinion through interviews, questionnaires, e-mails and hotlines, and invited grass-root representatives to advise provincial officials on those issues. To date, authorities have received more than 460,000 suggestions from the public, and have tried to turn them all into concrete action.

Gao Feng, 63, a citizen of Shijiazhuang, was delighted when the rubbish heap in his neighborhood was turned into a public green space last summer, soon after locals complained online.

"I don't really understand the 'mass-line' campaign, but I know that the CPC has done good deeds for the people, and that's good enough for me," Gao said.

Source: Xinhua