Archive for July, 2015

27/07/2015

China Stocks Make Sharpest Daily Fall Since 2007 – China Real Time Report – WSJ

China stocks made their sharpest daily percentage decline since 2007, as worries mount that authorities are pulling back on its measures to prop up the market. As WSJ’s Chao Deng reports:

The Shanghai Composite Index ended down 8.5% at 3725.56, its second-straight day of losses and worst daily percentage fall since February 27, 2007. China’s main index is up 6% from its recent low on July 8, but still off 28% from its high in June.

The smaller Shenzhen Composite fell 7% to 2160.09 and the small-cap ChiNext Closed 7.4% Lower at 2683.45

Analysts say the selling came as investors fear the government is curbing its buying of blue-chip stocks—and could even be testing whether the market can support itself.

“The previous support from the government funds is apparently unsustainable,” said Jacky Zhang, an analyst at BOC International. “They may withdraw support today to test whether the market has recovered its resilience. The government wants to use state funds to stabilize the market, not to prop it back to 5,000 point overnight.”

via China Stocks Make Sharpest Daily Fall Since 2007 – China Real Time Report – WSJ.

27/07/2015

How Police and the Indian Army Are Dealing With Punjab Attack: In Pictures – India Real Time – WSJ

At least three gunmen stormed a police station in northern India near the border with Pakistan Monday, killing six people—including two policemen—and injuring seven others, in a standoff that continued hours later, a senior Indian counterterrorism official said.



It is such terrible news and I always think back to seeing Roger and Hilary at their home and having a picnic in their garden. They are/were such lovely people. I had the greatest repsetc for Roger and I am only sorry that I didn’t stay in touch.

Punjab police fired to counter the attack on Monday. Agence France-Presse/Getty Images

H.S. Dhillon, head of intelligence for Punjab state police, said the attackers were suspected to have crossed the Indian frontier early Monday.

The deadly incident comes as hostilities between India and Pakistan have worsened in recent weeks, even after a meeting of the countries’ premiers earlier this month sparked hopes of a thaw.

Indian army personnel stood in Dinanagar town, July 27, 2015. Narinder Nanu/Agence France-Presse/Getty Images

India has long accused Pakistan of harboring and aiding militant groups that launch attacks on India, particularly in the northern state of Jammu and Kashmir. Pakistan denies allegations that it supports militant activities against India.

Army personnel take position in Dinanagar town, July 27, 2015. Narinder Nanu/Agence France-Presse/Getty Images

But Monday’s killings were unusual, analysts said, because they occurred in Punjab, where militant attacks have in the past two decades been rare, and could signal an expansion of militancy beyond Kashmir.

Punjab police took position during the attack. Narinder Nanu/Agence France-Presse/Getty Images

Police personnel took aim during the attack. Narinder Nanu/Agence France-Presse/Getty Images

The gunmen, who were wearing military uniforms, opened fire on a bus in Punjab’s Gurdaspur district before heading to the local police station, according to Mr. Dhillon and an eyewitness. The attackers exchanged fire with police inside the station and a standoff that continued into Monday afternoon, Mr. Dhillon said.

via How Police and the Indian Army Are Dealing With Punjab Attack: In Pictures – India Real Time – WSJ.

25/07/2015

Should Britain Pay Reparations to India? Shashi Tharoor Says Yes, Narendra Modi Praises Him, What Do You Think? – India Real Time – WSJ

Should Britain pay reparations to its former colonies, including India? An articulation of why the former holder of empire should make amends, or at least say sorry, for two centuries of colonial rule, has sent a video of Indian law maker Shashi Tharoor viral and opened up a debate in India.

In a 15 minute speech given during a debate at the Oxford Union in the U.K., telegenic and floppy-haired Mr. Tharoor, who is a former foreign minister and a onetime under-secretary-general at the United Nations, argued that “Britain’s rise for 200 years was financed by its depredations in India.”

Speaking in favor of the motion, the opposition Congress party politician said that India’s share of the world economy when the British arrived was 23% but by the time they left it had slipped to 4% because “India had been governed for the benefit of Britain. Britain’s rise for 200 years was financed by its depredations in India.”

“In fact, Britain’s industrial revolution was actually premised upon the de-industrialization of India,” he added.

The YouTube clip of the Congress politician’s oration has been watched more than 1.5 million times since it was uploaded last week, making it one of the most-viewed clips from the Oxford Union, a prestigious debate chamber at the University of Oxford.

A video of Jack Gleeson, an actor explaining to the chamber why he left the Game of Thrones, has over two million views as does one of Sepp Blatter, the FIFA president, impersonating Portuguese soccer player Cristiano Ronaldo.

Others to have appeared at in the red-walled debate chamber in the recent past include Google’s Executive Chairman Eric Schmidt, former U.S. Senator John Edwards, former Australian Prime Minister Kevin Rudd and onetime South African President F.W. De Klerk.

Indian social media lit up with praise for Mr. Tharoor’s eloquence and ability to take on the British establishment: Opposing speakers in the debate included Sir Richard Ottaway, a politician with the United Kingdom’s right-wing Conservative party.

Indian Prime Minister Narendra Modi, who belongs to Congress’s rival the Bharatiya Janata Party, praised Mr. Tharoor for the speech.

via Should Britain Pay Reparations to India? Shashi Tharoor Says Yes, Narendra Modi Praises Him, What Do You Think? – India Real Time – WSJ.

22/07/2015

Airbus China plant plans to deliver first A330 plane in 2018 | Reuters

Airbus’ (AIR.PA) China plant is expected to deliver its first A330 wide-body passenger jet in 2018, one of the European planemaker’s Chinese partners said on Wednesday.

A worker uses a drill to screw bolts into the wing of an A320 plane that is under construction at the Airbus factory located in the northern Chinese city of Tianjin September 14, 2010.  REUTERS/David Gray

Airbus earlier this month signed an agreement to establish an A330 ‘cabin completion center’ in the northeastern Chinese city of Tianjin, where the firm already has a final assembly plant for smaller A320 jets.

The agreement was signed with the Aviation Industry Corp of China [SASADY.UL] and the Tianjin Port Free Trade Zone. Airbus hopes the increased presence in China would lead to more demand for the profitable but ageing wide-body A330 jets.

In a statement posted on its website, the Tianjin Port Free Trade Zone, said it expects construction of the plant to be completed by the fourth quarter of 2017, with the first plane to be delivered to customers in early 2018.

The plant will help further China’s goal of building its own jets to cater to what is expected to become the world’s biggest air transport market. Currently it depends mostly on imported jets from Airbus and Boeing (BA.N).

Facilities for cabin decoration, painting, and flight testing of the A330 series would also be established in the next 10 years, the Tianjin Port Free Trade Zone said.

The agreement to build the A330 plant, which will be capable of fitting out 2 planes a month, came after China placed an order for 45 A330 aircraft worth at least $11 billion, together with provisional purchases of another 30 planes.

via Airbus China plant plans to deliver first A330 plane in 2018 | Reuters.

22/07/2015

India’s Labor Force – WSJ

India’s urban women are four times less likely to be in paid work than their male counterparts with the most educated being the least likely to participate in the workforce, the latest figures from India’s labor ministry show.

Meanwhile in rural India, women are marginally more likely to have a job – the ratio of male to female participation in the workforce is 2.6 to 1.

Here are some more findings from the survey.

39%

The proportion of women who have received vocational training were not part of the workforce in 2013/14.

Although women were not asked to give reasons in the survey, Jayan Jose Thomas, an assistant professor of economics at the Indian Institute of Technology in New Delhi and an expert on India’s labor market and industry, said women often face discrimination at work in rural and urban India, including unequal pay.

In urban India, there were also concerns for women’s safety, traveling to and from work and in the workplace. Pushing the figures higher, women who chose to be homemakers were counted as unemployed.

“When you look at the figures for women, you understand the real employment situation in India. You see a huge mismatch,” said Mr. Thomas.

Indian women’s participation in the workforce falls as their education level rises, according to research by Mr. Thomas.

Labor-force participation by women in 2009-10 showed nearly 55% of women with post-graduate level education had not joined the workforce. Most women who didn’t join the workforce said “they are attending to domestic duties.”

524 rupees

The average daily wage for a man educated beyond high school working in an Indian city. That is the equivalent of $8. For women, average earnings were 391 rupees a day.

12 million

The number of people who enter India’s workforce each year. Some argue India’s rigid labor laws, which make it harder to fire employees, may be the reason employers are reluctant to hire full-time staff but Mr. Thomas says, despite official figures showing otherwise, the growth of India’s workforce has stagnated from lack of investment in infrastructure.

Government investment in basic infrastructure, like setting up power plants, needs to take place before the country can realize Indian Prime Minister Narendra Modi’s “Make In India” drive, which seeks to supercharge the country’s manufacturing growth, according to Mr. Thomas.

“India’s infrastructure shortage is so high that you cannot expect private investment to kick-start industrial growth. You need public sector to do the work first,” Mr. Thomas said. “Major initiative has to come from the government.”

5.5 million

Jobs created in India every year. Even though 12 million people join India’s workforce every year, the number of new jobs is much lower. Mr. Modi’s government has set a target of creating 400 million jobs by 2020 to try and narrow the gap.

6.8 %

The proportion of India’s population signing up for vocational training in the country. Among those who successfully train, a large proportion – 75% – find employment.

via India’s Labor Force – WSJ.

22/07/2015

Kind of Blue: China’s Air Pollution Not as Terrible as Before – China Real Time Report – WSJ

If you’re living in China and have the vague impression that the skies have been bluer than usual this year, it’s not just wishful thinking.

According to an analysis released Wednesday by Greenpeace East Asia, China’s air is not as awful as it used to be. Among 189 cities examined by the environmental nonprofit, PM2.5 levels in the first half of 2015 were down an average of 16% compared to the same period last year. Only 18 cities saw their levels of PM2.5 increase.

Health experts say that small particles such as PM2.5 are particularly worrisome for human health, given their ability to creep deep into the lungs and aggravate heart or lung disease.

“I think this is the first time I’ve seen a massive reduction on PM2.5 concentrations at a national level,” said Dong Liansai, Greenpeace East Asia energy and climate campaigner. In recent years, the frequent grey pall and onset of periodic “airpocalyses” have helped discourage tourism to Beijing and have spurred expats and locals alike to leave for more oxygen-rich environments.

In the country’s notoriously smoggy capital, residents have seen PM2.5 levels drop by 15.5%, with levels of sulfur dioxide – which can contribute to respiratory problems — experiencing a still more precipitous drop of 42.6%, the group said. The capital has been making a concerted push to clean up its skies, closing or relocating 185 firms in the first half of this year, according to the Beijing government. Since last July, the city has also shuttered three of its four coal-fired power plants.

Mr. Dong said the bump in clean air doesn’t appear to be just a blip. He credited more aggressive government standards on emissions and efforts to shutter its dirtiest factories. He also cited the government’s 2013 air pollution control plan, which mandates that by 2017, certain regions must reduce their PM2.5 levels by as much as 25% compared to 2012 levels.

Compared with the rest of the world, the Middle Kingdom’s air still ranks as wretched: the average PM2.5 level in the 385 cities ranked by the group was 53.8 µg/m3, more than five times the World Health Organization’s recommended annual mean.

To keep skies blue-hued for events such as last November’s APEC summit, the city periodically shuts down nearby factories and orders cars off the streets. Such a strategy has in the past paid health dividends for residents. A recent study found that women pregnant during the 2008 Beijing Olympics—when the Chinese government worked aggressively to keep air pollution down for a seven-week period—gave birth to heavier, and presumably healthier, babies.

via Kind of Blue: China’s Air Pollution Not as Terrible as Before – China Real Time Report – WSJ.

21/07/2015

Indian Companies Invest Billions, Create Thousands of Jobs in the U.S. – The Numbers – WSJ

As India attempts to thaw its business environment and attract the interest of foreign companies, a hundred Indian firms have together made investments worth more than $15 billion in America, according to the findings of a new survey by the Confederation of Indian Industries and audit firm Grant Thornton International Ltd.

The findings, which were released in a report titled “Indian Roots, American Soil” on Tuesday, suggest that Indian companies in the U.S., most operating in the information-technology sector, have created thousands of jobs there and show a growing interest in hiring more American workers in the next few years.

Indian outsourcing companies in the U.S. have in recent months been criticized for depending too much on foreign staff — H1-B visa holders – instead of hiring locals.

The 100 Indian companies surveyed are spread across all 50 U.S. states, the report said. Here are the main numbers from the report.

91,000

The survey says Indian firms have created more than 91,000 jobs in the U.S., most of them concentrated in New Jersey, where they have hired over 9,000 people. In California, more than 8,000 people work for Indian companies.

$15.3 billion

The total value of tangible investments – for example in real estate or equipment — made in the U.S. by the surveyed companies. Texas has received the largest amount — almost $3.85 billion from 17 Indian companies, most in the information-technology and telecom sectors. The report didn’t give a timeframe for these investments.

40%

The percentage of surveyed companies that do information-technology business is 40%. The report also highlights the emergence of Indian companies in the pharmaceutical and manufacturing sectors, which each accounted for 14% of the firms surveyed.

84%

That’s the proportion of companies in the survey that plan to make more investments in the U.S. in the next five years. California, New Jersey, New York and Texas are the “most promising states for expected future investment,” the report said.

90%

The forecast for hiring local U.S. employees is also encouraging, the survey reveals. Almost 90% of the companies responded positively when asked if they foresaw hiring locally in the coming five years.

via Indian Companies Invest Billions, Create Thousands of Jobs in the U.S. – The Numbers – WSJ.

21/07/2015

Traveling on India’s Roads Is Getting More Dangerous – The Numbers – WSJ

Traveling on India’s roads is getting more dangerous. In 2014 there were 141,526 deaths due to road accidents in the country, up from 137,423 a year earlier.

Prime Minister Narendra Modi’s government is set to introduce the Road Transport and Safety Bill in the upcoming 18-day session of Parliament, which starts Tuesday.

It would be India’s first separate legislation to govern road safety. Counter-intuitively, the legislation would reduce penalties for offenses such as drunken driving or speeding, but road-safety campaigners say that would make the law more likely to be enforced.

Until then, some numbers from the National Crime Records Bureau that show how safe it is (or isn’t) to travel on India’s roads.

39.2%

The percentage of India’s accidental deaths in 2014 that were the result of traffic accidents.

May

The month in 2014 in which the most traffic accidents were reported in India. Accidents that month accounted for 9.2%, or 44,106 out of 481,805 of the total traffic accidents that year.

3 p.m. – 9 p.m.

The time the largest number of traffic accidents were reported in 2014, making up a total of 34.2% of traffic accidents that year.

2.9%

Amount fatalities from road accidents increased by in 2014, from a year earlier. Road accidents overall increased by 1.8% in 2014.

31.39%

Percentage of road accidents in India in 2014 where at least one person died.

Two wheelers

Type of vehicle most often involved in fatal road accidents. More than one in four (26.4%) of accidental deaths on roads involved motorbikes, scooters and other two wheelers, followed by trucks and lorries at 20.1%, cars at 12.1% and buses at 8.8%. The statistics do not say if this included bicycles.

National highways

Roads which saw the highest number of accidents, contributing to 27.5% of total road accidents. These roads makes up just 1.58% of India’s total road network. State highways had a share of 25.2% of total accidents. The national highways also saw the most fatal accidents – accounting for more than 32.5% of the total deaths on India’s roads in 2014.

Uttar Pradesh

The state with the most road traffic accident deaths in India in 2014 –16,284. Perhaps not surprising, since it is India’s most-populous region. The state was closely followed by Tamil Nadu at 15,190 deaths and Maharashtra at 13,529 deaths.

Speeding

The cause of most road accidents in India in 2014–accounting for 36.8% of total accidents, causing 48,654 deaths and injuring 181,582 people. Dangerous, careless driving or overtaking caused 137,808 road accidents, the data showed, resulting in 42,127 deaths and injuring 138,533 people. Poor weather caused 3.2% of road accidents, while driving under the influence of drugs or alcohol contributed to 1.6% of total road accidents

via Traveling on India’s Roads Is Getting More Dangerous – The Numbers – WSJ.

19/07/2015

Farmer suicides in Karnataka – The Hindu

Is it falling prices? Is it a glut in production? Or are farmers just falling into debt because of aspirational spending? Whatever the reason, Karnataka is again facing the spectre of rising suicides

“Crop loans are difficult to get, but large personal or consumption loans are easily available. This is the surest way to push farmers into deep debt, from which they are unable to recover because their earnings cannot keep pace with agricultural costs.” Photo: K.Bhagya Prakash

Krishna, 32, a farmer in Singamaranahalli, about 30 km from Hunsur in Mysuru district, consumed pesticide and died in the first week of June. The sesame farmer with three acres of land could not survive the debt trap he was in. He had defaulted on repayment to a local cooperative bank, fallen into the clutches of moneylenders, the water table had dropped, and his borewells had run dry. Having lost all hope of repaying the loans, he decided to end it all.

In the last fortnight alone, 50 farmers have committed suicide in Karnataka. The State Agriculture Minister Krishna Byre Gowda admits “it is alarming”. What is puzzling is that cases of farmer suicides had actually dropped over the last two years and have now suddenly begun to increase from mid-June onwards.

The suicides point to two things: first, a serious agrarian crisis shaped by an increase in cultivation costs and a decline in agricultural income, which is pushing farmers into a debt trap; and second, the sociological pressures that farmers face because of the disparity between their income and those in urban areas.

Vivek Cariappa is an organic farmer from Mysuru. He talks of the insecurity among farmers because neither the State nor institutional mechanisms have been able to address the crisis.

It is difficult to get crop loans, he says, but loans for consumption goods like cars, or personal loans for weddings and festivals are easily available. It is the surest way to push farmers into debt.

In Panakanahalli in Mandya district, Mahesh took a loan for his sister’s marriage. In Kestur village of Chamarajanagar district, Nanjundaiah borrowed Rs. 30,000 from a bank and Rs. 4 lakh from moneylenders to get his daughters married. Both farmers were unable to repay the loans and committed suicide.

The problem is also sociological: Farmers who aspire to the lifestyle of salaried persons end up taking loans, sometimes at 60-80 per cent interest rates, and become prey to loan sharks.

“ There is a serious agrarian crisis with an increase in agricultural costs and a decline in earnings. There is also sociological pressure ”

For most farmers across the State, what were once considered luxury items such as cars have now become aspirational necessities. Kurubur Shanthakumar, President of the State Sugarcane Growers’ Association, talks of how he followed his father’s footsteps and became a farmer, but his son wanted to study in Mysuru. This ended up costing Shanthakumar a sizeable sum of money. The pressure is most severe in areas close to the big urban centres of Mysuru and Bengaluru, but is true in general all over, points out G.K. Veeresh, former chairman of the State government’s committee that studied farmer suicides in 2002.

Then, mono-cropping had been seen as a major cause for suicides. Mr. Veeresh talks about how farmers had a tendency to focus on a single crop if it had seen commercial success. The problem was, when it failed, they faced total collapse. More than land holding, says Mr. Veeresh, crop planning is the bigger issue. Farmers must be educated to see the long-term benefits of “multi crop-multi income” farming.

But this time around, the farmers who committed suicide don’t appear to have stayed with one crop. Yes, some sugarcane farmers have faced a major crisis after sugar factories, mostly owned by powerful politicians, defaulted on payments, but they have not accounted for the majority of suicides.

T.N. Prakash, Chairman, Karnataka Agriculture Price Commission, speaks of the urgent need to address the issue of rising input costs when incomes stay stagnant. One suggestion Mr. Prakash makes is interesting. He says that the Agriculture Price Commission could instead become a commission for agricultural cost, prices and farmer’s incomes, which would give it more authority to implement suitable measures.

Another reason could be a glut in production. Mr. Cariappa and Mr. Shanthakumar point out that the State, despite having records of the area under sugarcane cultivation and the crushing capacities of sugar mills, has turned a blind eye to excessive cultivation. This has kept prices low enough to benefit the sugar mills owned by politicians.

This glut is true for cotton, tobacco and other crops as well. Excess production helps processing industries, as it ensures that the prices of raw materials stay low and they profit from it. There is also “mass hysteria” when a farmer commits suicide, and it may result in others taking the same step. Politics over farmer suicides and the wide publicity they get tend, in a way, to “glorify” suicides and worsen the situation, says Mr. Veeresh.

via Farmer suicides in Karnataka – The Hindu.

13/07/2015

China says 75 percent of cities failed to meet air standards in June | Reuters

Nearly 75 percent of China’s big cities failed to meet air quality standards in June, the environment ministry said on Monday, an improvement over the same month last year, as the country continues to wage “war on pollution.”

General view of downtown Shanghai on a hazy night January 25, 2015. REUTERS/Aly Song

Nineteen cities met air quality standards every day, the Ministry of Environmental Protection said in a statement on its website (www.mep.gov.cn), compared to five at the same time last year.

Air quality in the capital Beijing was subpar on almost 60 percent of the days in June and saw levels of PM2.5 – particulate matter with a diameter of 2.5 micrometers that can penetrate deep into the lungs – rise 11 percent compared to the same period last year.

Amid growing public disquiet about smog and other environmental risks, China said last year it would “declare war on pollution” and it has started to eliminate substandard industrial capacity and reduce coal consumption.

Last year, nearly 90 percent of China’s 74 big cities failed to meet air quality standards.

The state standard is 35 micrograms of PM2.5 per cubic meter, but the government does not expect to bring the national average down to that level before 2030.

In April, the vice minister for environmental protection announced a two-year inspection campaign to root out fake air quality data and accused some local governments of manipulating the data to meet national standards.

via China says 75 percent of cities failed to meet air standards in June | Reuters.

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