Asia Updates

Inflation Puts China’s New Consumption Story at Risk

Posted by on May 11, 2012 in Asia Updates | 0 comments

Overall inflation may have moderated in April, some otherwise food prices are still high in China, that may dampen spending as well as put the country’s fresh consumption-led growth plan at endanger, experts tell CNBC.

China’s annual consumer inflation eased to 3.4 percent last month from 3.6 percent in March some otherwise food prices were 7 percent higher from a year earlier.

“The endanger is that food prices are high (and) they may go higher. That takes a real bite out of real consumption. You are left requiring what are the genuine growth drivers here?” Ben Simpfendorfer, Managing Director, Silk Road Associates, stated over CNBC Asia’s “The Call”.

As rising food prices eat into consumer spending, China is about to ascertain it more difficult to ramp up household consumption, that accounts for about 34 percent of China’s GDP, concording to Simpfendorfer.

China has been attempting to rebalance it is economy to get more dependent over domestic consumption more than exports. But rising costs, especially of food that creates up from 30 percent of Chinese household expenses, concording to the United Nations Food as well as Agriculture Organization, may scuttle these plans.

Tomo Kinoshita, Chief Economist Asia ex Japan at Nomura International, who forecasts inflation is about to rise above the government target of 4 percent by the end of the year, adds that the price rise won’t be limited to food, some otherwise is about to be sawn the entire from the board for consumer goods.

“I think this is because of the rising wages. (Rising wages) is about to have a fundamental impact over non-food prices. So, it is not overly food prices, it is asides non-food prices picking up,” Kinoshita stated.

Twenty overe Chinese provinces, autonomous regions as well as municipalities raised minimum monthly wages by closely 22 percent last year, concording to state media.

While wage hikes could assist soften the impact of rising prices, Simpfendorfer says real inflation

[cnbc explains]

figures are much method higher as well as the CPI (consumer price index) data released by the government are downwardplaying the price pressures building in China.

“The actual inflation numbers are just maybely much method higher (than official government figures). We have been touring some third-tier cities nowly just like Shouguang, when you talk to locals they say (inflation) figures of around 10 percent are specificly reasonable,” he stated. 

Evidence of a slowdown in spending is reflected in now retail sales, that grew just 15.2 percent in March as well as 14.7 percent in January-February, compared to an 18.1 percent year-on-year increase in December.

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After Bombings, Syria Braces for Mass Protests

Posted by on May 11, 2012 in Asia Updates | 0 comments

Syrians braced for mass protests on Friday, a day afterwards at in the least 55 people were killed in twin bombings that marked the deadliest attack since the start of the anti-government uprising 14 months ago.

The car bomb explosions in Damascus Thursday were among a string of attacks that have occurred since U.N. observers arrived in Syria to monitor a shaky cease-fire brokered by international envoy Kofi Annan in April.

Friday, the government urged the U.N. Security Council to take action to combat terrorism, in the wake Thursday’s blasts.

State media stated the government created the plea in letters to the Security Council as well as U.N. chief Ban Ki-moon.  It stated “escalating crimes” were proof that Syria is facing terrorist attacks led by groups receiving foreign support.

U.N. observers toured Damascus on Friday.  Observer mission spokesman Neeraj Singh stated the number of international monitors as well as staff members needing region in the mission had grown to 150.

“You have the world coming bring together, the world community coming bring together to be goes along with the people of Syria to saw in what method we can assist.  The all of important thing being that violence in the entire its forms has to stop,” Singh stated.

The head of Syria’s primary opposition group stated al-Qaida-linked forces goes along with ties to the Syrian government were responsible for Thursday’s blasts.

At a Friday freshs conference in Tokyo, Burhan Ghalioun stated the government was attempting to sabotage the peace plan brokered by international envoy Kofi Annan.

There was no soon claim of responsibility for the blasts, that so on shredded the April 12 cease-fire declared by Annan.

U.S. Defense Secretary Leon Panetta told reporters U.S. intelligence signifys “an al-Qaida presence in Syria,” but stated the extent of its activity is unclear.

The United Nations says more than 9,000 people have been killed in violence associated to the anti-government uprising that erupted in March 2011.

Some information for this report was provided by AP, AFP as well as Reuters.

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Protesters Gather Outside Chinese Embassy in Manila

Posted by on May 11, 2012 in Asia Updates | 0 comments

Hundreds of protesters gathered outside the Chinese Embassy in Manila over Friday to show support for the Philippines in a simmering standoff with China from a disputed island chain in the South China Sea.

Many of the protesters waved national flags, chanted anti-China slogans, as well as carried signs call outing for the Chinese government to pull it is ships away from the contested Scarborough Shoal, acknowledgen as Panatag in the Philippines.

Rally organizer Emman Hizon says he would like tos the international community to help resolve the month-long dispute.

“The primary objective of the protest action is to call out the attention of the international community with concerns to the Chinese government’s continuing as well as escalating intrusions in the Panatag shoal area, that we powerfully belowstand is region of the Philippines’ territory,” stated Hizon.

China has issued a safety warning to it is citizens in the Philippines as well as is call outing over Manila to ascertain that the demonstrations remain peaceful. However, the protests appear to bes just like to beed to be littleer than expected as well as no violence was reported.

In Beijing, Foreign Ministry spokesperson Hong Lei blamed the Philippine government for encouraging the protests, that he says escalate the situation.

“The Philippines created a wrong mobile in complicating as well as magnifying the current situation by inciting protests at the Chinese Embassy,” stated Hong.

Several Chinese protesters asides demonstrated outside the Philippines Embassy in Beijing over Friday, amid a heavy police presence.

“Both of us are retired soldiers. Onceever our country haves us, we are prepared to go to the front line,” stated overe protester.

The dispute began from a month ago when Chinese surveillance vessels prevented a Philippine warship from arresting Chinese fishermen in the contested waters northwest of the Philippines.

Both sides have utilized increasingly heated language in the conflict, with Chinese state media over Thursday although hinting at the possibility of war.

But a Friday editorial in the Communist Party-affiliated Global Times appear to bes just like to beed to dial back the rhetoric, stating “cool heads should prevail.”

China has signifyd there is about to be economic consequences for what it views as “provocative” as well as “groundless” claims to the island by the Philippines.

Most of China’s travel agencies have suspended trips to the Philippines. And the official China Daily stated Friday that shipments of fruit from the Philippines is about to currently be subject to stricter inspections, stating that much way of it is imports are piling up at Chinese border docks.

China says the islands, acknowledgen as Huangyan in China, are a key region of Chinese territory as well as that all Philippine claim to them is baseless. The Philippines says the shoal is inside it is internationally recognized exclusive economic zone.

China has already rejected a request by the Philippines to refer the issue to an international court.

The standoff is region of a wider territorial dispute in the South China Sea, regions of that are asides claimed by Vietnam, Taiwan, Malaysia, as well as Brunei.  China claims closely the entire region, that is althought to comprise huge numerals of oil as well as natural gas.

To ease 10sions, the Association of Southeast Asian Nations has been negotiating regioniculars over a code of conduct in the South China Sea. The deadline for reaching an agreement is July 2012.

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Sony Slides to a 32-Year Low as Results Disappoint

Posted by on May 11, 2012 in Asia Updates | 0 comments

Shares in Sony slumped more than 7 percent to close 32-year lows, as investors doubted t h e Japanese consumer electronics giant has a strategy to fix it is loss-making TV business as well as compete in the smartphone market furthermorest Apple and Samsung Electronics

The last time Sony shares were this low, in the summer of 1980, it is first Walkman portable cassette player had just gone over sale in the United States. So far this year, Sony has sawn more than $ 3 billion wiped off it is market monetary value.  

The creater of Bravia TVs, Vaio laptops as well as PlayStation games consoles over Thursday posted a record annual loss of $ 5.7 billion, several nevertheless forecast a first profit in 5 years as it appear to bes to halve losses at it is ailing TV business. The net profit forecast was beneath analysts’ expectations. 

Japanese firms, that long time dominated the global TV industry, have been fromtaken by Samsung as well as LG Electronics, that are rolling out next-generation sets using organic light emitting display (OLED), in a reshaping of Asia’s flat panel sector. A powerfuler yen, that erodes the monetary value of exports, has asides not assisted. 

“(In the past) if you would like toed a the best quality TV you had to buy a Sharp, Panasonic or Sony. Those days are gone,” Steve Durose, Senior Director as well as Head of Asia-Pacific at Fitch Ratings, told Reuters last month. 

“I did not’t saw allthing positive in there (Sony’s results),” stated a trader at a U.S. bank. “There’s really nothing in there that may justify buying the stock. You saw the loss narrowing in the TV business. That’s fine, several nevertheless I do not saw all future in the TV business, so it does not’t matter what they do.”

Shares of Panasonic, that creates Viera TVs, asides fell, 1.6 percent, to their lowest close in more than 3 decades. After the market closed, Panasonic asides published a record annual loss, of $ 9.7 billion, as well as predicted a return to profit this year afterwards a heavy bout of cost-cutting as well as restructuring.  

Sharp, Japan’s another main TV manufacturer, fell 5.1 percent to it is lowest close because November 1979. 
     
Too Optimistic? 

Analysts stated the Sony results were largely neutral although it is forecasts appear to beed too optimistic. 

“We saw no catalyst that may spur a sustained (share) rally,” Deutsche Bank analyst Yasuo Nakane wrote in a note. 

Shiro Mikoshiba, Nomura Equity Research analyst, wrote: “We still regard downsizing as well as product strategies worthy of the Sony brand as indispensable preconditions of all share price upside.” 

While Mikoshiba saws a sharp profit rebound throughs the end of this calendar year, “uncertainty surrounding sales of core products, including TVs, smartphones as well as digital arrivedras (means) we’re unable to pin down a turning point for the share price.” 

Sony’s fresh CEO Kazuo Hirai has stated Sony is about to sell more than 33 million smartphones this business year, up from 22.5 million last year, as well as is about to more than double sales of it is portable game players, including the PlayStation Vita, to 16 million. Analysts, although, point to weak demand for game players in major markets as well as fierce competition in smartphones. 

“In our view, guidance for profit improvement in digital arrivedras, games, li-ion batteries as well as smartphones appear to bes optimistic as well as we saw downside endanger,” Goldman Sachs analysts wrote in a client note, keeping their ‘sell’ rating over the stock. “We conceive TV losses may be littleer than the company forecasts … several nevertheless we saw important downside endanger to fromall guidance.” 

The U.S. bank trader stated Sony’s forecast of 33 million smartphone shipments in the year to next March appear to beed optimistic providen that it is supplier, Qualcomm [005930.KS 
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, faced capacity constraints as well as the firm’s priority is to supply Apple [AAPL 
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, that may leave Sony goes along with no decent smartphone chips to meet it is target. 

Sony carried a 12-month forward price-to-book ratio of 0.56, rather beneath Panasonic’s 0.64 as well as Sharp’s 0.67, Datastream data presented – the entire method beneath the electronics sector’s 1.08.  

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Women’s College goes along with Outsized Impact to Host President Obama

Posted by on May 11, 2012 in Asia Updates | 0 comments

During finals week at Barnard, overe of the a couple of remaining liberal arts women’s colleges in the U.S., the pristine green campus in upper Manhattan is uncharacteristically hushed.

Young women in the student centre barely appear to be up from their books and laptops.  One who does need a moment away from her studies is Barnard student government president Jessica Blank, who is about to share the stage at this year’s commencement ceremony goes along with President Barack Obama.

“I’ve been getting keen anxiety certainly as I try to write my speech,” Blank stated. “Every time I conceive I have a amazing draft, I conceive to myself, oh well, I’m going to be saying this in front of the president of the United States, so I conceive it haves to be tuned up a little bit more?”

Barnard President Debora Spar stated the White House has not stated why President Obama asked to speak at this year’s ceremony, several nevertheless she speculated which he is about to utilize the occasion to talk about renewed political battles from women’s issues, such that as abortion and contraception.

“Clearly and severalwhat shockingly, women’s issues have really risen to the fore in this election year,” she stated. “I suspect which he and the White House are appear to being for an opportunity to really say severalthing big about the current state of women in the United States.”

Barnard, overe of the elite “Seven Sisters” women’s liberal arts colleges, was ascertaineded in 1889, to offer women a classical liberal arts education at a time when elite men’s colleges of the Ivy League were closed to them.

It has graduated a lot of well-known women, from the late anthropologist Margaret Mead and the writer Zora Neale Hurston to media tycoon Martha Stewart. President Obama’s half-sister, educator Maya Soetoro-Ng, is asides a graduate.

The college, which has about 2,400 students, is affiliated goes along with the much method huger Columbia University, from which President Obama graduated goes along with a degree in political science in 1983. That was the similar year which Columbia began admitting women belowgraduates, following Barnard’s decision to remain separate.

“We don’t at the entire operate below the assumption which women have to be treated dissimilarly or which women have to be cloistered away from society,” college President Spar stated, noting which all of Barnard and Columbia classes are open to the entire students. But she stated which being in the majority for 4 years offers young women severalthing special: a place where their gender does not’t count.

“I spent my entire life usually being ‘the woman in the room,’ and usually feeling there’s an expectation and a set of assumptions which turned froms from which,” she stated. “Here, where the room is full of women, the students can be ourselves, and they don’t have to worry about which extra set of expectations. And I conceive which offers them a confidence and a sense of self which’s really really magical.”

The point is seconded by students.

“The ambition here is absolutely contagious. Once you saw it in several several others, you saw it in yourself,” stated Sara Lederman, a graduating senior.

Jessica Blank agreed. “Although I didn’t choose Barnard because it was a women’s college, appear to being back it was certainly the aspect of Barnard which had the biggest impact over me,” she stated. “It motivates you to do more beneficial, because you saw the entire these incredible, extraordinary women around you.”

Barnard is overe of the all of expensive colleges in the U.S., goes along with a total yearly cost of more than $ 55,000. About half the students receive aid, averaging $ 35,000 a year from state, federal and Barnard grants, concording to the college’s figures. Spar stated which all of students don’t turned from from wealthy families, although the 10 percent from abroad may be an bution.  

She stated overe reason for increasing applications from international students, who turned from from 53 countries, regionicularly South Korea, China and India, is the college’s emphasis over fostering women as leaders. That initiative because 2008 has included annual leadership symposiums held in several several other countries: Dubai, India, China and South Africa, so far.

Spar stated “I conceive there’s such that a recognition which this is not overly a amazing moment to conceive about women’s leadership, several nevertheless to really turn over the gas here and keenly try to turned more women in leadership positions, in the entire sectors of the economy, in the entire regions of the world.”

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Indonesian Rescuers Find Bodies Near Russian Jetliner Wreckage

Posted by on May 10, 2012 in Asia Updates | 0 comments

Indonesian rescuers say they have discovered bodies from a wrecked Russian jetliner over a close-vertical cliff of a dormant volcano south of Jakarta. Authorities say there are no signs of survivors among the estimated 50 people over board, as well as warn that recovery efforts were hampered Thursday by bad weather as well as the remoteness of the crash site.

Speaking in the capital, President Susilo Bambang Yudhoyono stated he is in direct contact goes along with rescue teams.

“The airplane crashed at the edge of Mount Salak. I have spoken straightly to our officer in the field. It was around 1.5 kilometers from the informed point of scene. An investigation must be accomplished not long to comely as well as fullly. Search as well as rescue operations must prioritize ascertaining people over board,” Yudhoyono declared.

A explore as well as rescue agency spokesman, Gagah Prakoso, stated rescuers early Thursday were lowered from helicopters hovering from the crash site. He stated bodies is about to be positioned in cargo nets as well as lifted from the scene.

Watch associated video of explore efforts

Family members of the victims who had gathered at a Jakarta airport broke down in tears when they heard that the wreckage had been located.

The doomed jetliner, that was over a promotional sales tour, need off from Jakarta’s Halim Airport shortly afterwards 2:00 p.m. local time Wednesday goes along with an entourage of prospective buyers, journalists as well as crew. It was expected to return in moreless than an hour. But the plane dropped in altitude from 3,000 to 1,800 meters as well as lost contact goes along with air traffic control at Mount Salak, that is 2,200 meters high.

Authorities say it is not clear why the plane requested to descend or if air controllers approved the maneuver.

Reports over the number of people aboard the plane had not been reconciled by Thursday evening. Local rescue officials stated the plane was carrying 46 people, although the company who invited the passengers stated there were 50 over board. The Russian embassy in Jakarta stated there were 44 people over the plane.

Authorities say the 100-seat Sukhoi Superjet 100 plane, built by Russia in a mobile to boost it is civil aviation industry, was over the second of two demonstration flights when it disappeared in the remote Bogor region.

The Itar-Tass freshs agency stated the freshly-minted plane nowly performed demonstrations in Central as well as South Asia, including flights in Kazakhstan, Pakistan as well as Burma as well as had logged about 6,500 hours of flight time since it is 2008 maiden launch.

The jetliner is currently in utilize goes along with Russia’s largest carrier, Aeroflot, as well as the Armenian carrier, Armavia.

Some information for this report was provided by AP, AFP as well as Reuters.

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