Archive for ‘Chindia Alert’

12/06/2015

India to Widen Its Growth Lead Over China, World Bank Says – India Real Time – WSJ

India will continue to be the world’s fastest growing big economy and expand its lead on China over the next two years, the World Bank said Wednesday.

The bank expects global growth to slow this year, only to rebound next year. However, it expects India’s gross domestic product expansion to accelerate to 7.4% this calendar year, 7.8% next year and 8.0% in 2017.

Over the same three years, the multi-lateral lender predicts China’s growth to slow from 7.1% this year to 7.0% in 2016 and 6.9% the year after that.

While, India’s GDP expansion was faster than China’s during the third quarter of last calendar year and the first quarter of this year, it looks as if 2015 will be the first full calendar year India has outpaced China in decades.

Much of India’s progress on paper has more to do with a radical and controversial rejigging of how it calculates GDP, economists say.

To continue to outpace China—and improve the lives of India’s own billion-person populace—the South Asian nation needs to work harder to revamp its economy and build infrastructure, the World Bank said.

“To the extent that credible reform agendas boost investor sentiment, they will also help create a virtuous cycle of stronger investment (including foreign investment) and output growth in the short term,” the bank said in its Global Economic Prospects Report. “If, however, reforms stall, this could result in significantly lower investment and growth than projected in the baseline.”

Meanwhile the other three BRICS countriesBrazil, Russia and South Africa—do not seem to be living up to the hype from the days that acronym was created.  The World Bank predicts that the Brazilian and Russian economies will both shrink this year while South Africa’s will only expand by 2%. Things will improve for the three economies in the next two years but even then, they will each only see their GDPs expand by 2.5% or less in 2017.

via India to Widen Its Growth Lead Over China, World Bank Says – India Real Time – WSJ.

09/06/2015

Police kill 12 Maoist rebels in Jharkhand | Reuters

The police killed 12 Maoist insurgents on Tuesday in a shootout with a group suspected of planning to extort money from mining contractors in Jharkhand, a spokesman said.

Map of India showing location of Jharkhand

Map of India showing location of Jharkhand (Photo credit: Wikipedia)

Police, acting on a tip-off, tightened up security on the route to the mines. When the group approached a checkpoint in vehicles, the police got out and opened fire.

“We have recovered the bodies of 12 rebels from the spot. This is a big achievement for us,” police spokesman S.N. Pradhan said by telephone from Ranchi, the capital of Jharkhand.

Jharkhand is among a dozen states fighting a four-decade old Maoist insurgency that the last government described as the country’s biggest internal security threat.

The Maoists say they are fighting for the rights of peasants and landless labourers. They routinely call strikes, attack government property and target politicians and police, mostly across swathes of rural India’s east and south.

Among the dead in the one-hour gun battle was a rebel leader with a 500,000 rupee ($8,000) bounty on his head. Police said he was wanted for planting an explosive device inside the corpse of a police constable in an incident two years ago.

The police, who suffered no serious casualties, were still searching for 10-12 rebels who fled the scene. It was not immediately possible to verify their account independently.

($1 = 64 rupees)

via Police kill 12 Maoist rebels in Jharkhand | Reuters.

09/06/2015

Modi to launch India’s biggest labour overhaul in decades | Reuters

Prime Minister Narendra Modi is preparing to launch India’s biggest overhaul of labour laws since independence in a bid to create millions of manufacturing jobs, at the risk of stirring up a political backlash that could block other critical reforms.

Prime Minister Narendra Modi waves towards his supporters during a rally in Mathura, May 25, 2015.  REUTERS/Adnan Abidi

Three officials at the central labour ministry told Reuters that the ministry was drafting a bill for the upcoming parliamentary session that proposes to loosen strict hire-and-fire rules and make it tougher for workers to form unions.

The changes, if approved by parliament, will be the biggest economic reform since India opened its economy in 1991, but it is likely to meet stiff opposition in parliament and from labour activists.

The prime minister enjoys a majority in the Lok Sabha, but not the Rajya Sabha, hobbling his ability to pass politically contentious measures.

That handicap has stymied his efforts to make it easier for businesses to buy farmland and convert Asia’s third-largest economy into a common market.

Rajiv Biswas, Asia-Pacific chief economist at IHS Global Insight, said Modi had little option but to push ahead with the measures.

“Without these reforms, the economy would stagnate, and frustrated investors would look elsewhere,” he said.

“You cannot make political opposition an excuse for not taking tough decisions.”

Since taking office in May last year, Modi has taken a series of incremental steps to make labour laws less onerous for businesses, but fear of a union-led political backlash made him leave the responsibility for unshackling the labour market with Indian states.

He let his party’s governments in Rajasthan and Madhya Pradesh take the lead in this area.

Encouraged by a successful and peaceful implementation of the measures in those states, the federal labour ministry now intends to replicate them at the national level, one of the ministry officials said.

Manish Sabharwal, one of the brains behind Rajasthan’s labour reforms and co-founder of recruitment firm Teamlease, said the federal administration would have been better off without attempting these changes.

“Let states carry out these changes and save your political energy for other policy reforms,” he said.

via Modi to launch India’s biggest labour overhaul in decades | Reuters.

09/06/2015

China’s greenhouse gases could peak early, easing climate fears | Reuters

China’s greenhouse gas emissions could peak by 2025, five years earlier than indicated by Beijing, a development that could help limit the mounting risks of global warming, a study by the London School of Economics (LSE) showed on Monday.

A coal-burning power station can be seen behind migrant workers as they walk carrying their shovels on the construction site of a water canal, being built in a dried-up river bed located on the outskirts of Beijing October 22, 2010. REUTERS/David Gray

The report, more optimistic about curbing the use of fossil fuels than a Chinese industry forecast on Monday, noted that China’s “coal consumption fell in 2014, and fell further in the first quarter of 2015”.

“China’s greenhouse gas emissions are unlikely to peak as late as 2030 – the upper limit set by President Xi Jinping in November 2014 – and are much more likely to peak by 2025,” the report said.

“They could peak even earlier than that,” write the authors Fergus Green and Nicholas Stern, both from the LSE’s Grantham Research Institute on Climate Change and the Environment and the Centre for Climate Change Economics and Policy.

China, the top emitter of greenhouse gases – that are linked to rising ocean levels, heat waves and downpours – said last year its emissions would peak “around 2030, with the intention to try to peak early”.

Wang Zhixuan, secretary general of the China Electricity Council, predicted in a research report on Monday that China’s emissions from the power sector would keep rising to 2030, spurred by lower prices of coal than natural gas.

The industrial association projected that coal-fired power capacity would rise next decade, to 1,450 gigawatts in 2030 from 1,100 in 2020.

The LSE authors estimated that China’s overall emissions could peak at the equivalent of between 12.5 and 14 billion tonnes of carbon dioxide a year by 2025, up from about 10 billion around 2012.

That earlier-than-expected high point would help the world get on track for limiting warming to a maximum of two degrees Celsius (3.6 Fahrenheit) above pre-industrial times, they wrote, as long as China introduced sweeping reforms from cities to public transport.

Group of Seven leaders were meeting in Germany on Monday to discuss issues including climate change and how to achieve the 2C target, which many experts say is fast slipping out of reach.

And senior negotiators from almost 200 governments are meeting from June 1-11 in the German city of Bonn to work on a U.N. deal due in Paris in December to limit temperatures.

via China’s greenhouse gases could peak early, easing climate fears | Reuters.

01/06/2015

Beijing public smoking ban begins – BBC News

Public smoking in China‘s capital, Beijing, is now banned after the introduction of a new law.


Embed from Getty Images

China has over 300 million smokers and more than a million Chinese die from smoking-related illnesses every year.

Smoking bans already existed in China, but have largely failed to crack down on the habit.

These tougher regulations, enforced by thousands of inspectors, ban lighting up in restaurants, offices and on public transport in Beijing.

Analysis: Martin Patience, BBC News, Beijing

Smoking in China often seems like a national pastime. The country consumes a third of the world’s cigarettes. More than half of men smoke. It’s seen by many as a masculine trait – women, in contrast, rarely smoke.

A common greeting among men is to offer a cigarette – the more expensive, the better. A carton of cigarettes also remains a popular gift.

Anti-tobacco campaigners say many smokers are simply unaware of the health risks of their habit. They accuse the authorities of being addicted to the tax revenues generated by cigarette sales and therefore not warning smokers about the dangers.

But now there are signs the government has changed its mind. In the past, China’s leaders such as Chairman Mao and his successor Deng Xiaoping were rarely seen without a cigarette in hand. But the current President Xi Jinping has bucked the trend: he’s quit. And he’s also banned officials from smoking in public in order to set an example.

via Beijing public smoking ban begins – BBC News.

01/06/2015

Pranab in Sweden, key pacts to be signed – The Hindu

President Pranab Mukherjee on Sunday arrived here on the first leg of his five-day state visit to Sweden and Belarus, the first ever by any Indian head of State, during which a number of key agreements on sustainable development, scientific research are likely to be signed.

Sweden's Crown Princess Victoria and Prince Daniel receive President Pranab Mukherjee at Arlanda airport, north of Stockholm.

On his arrival, Mr. Mukherjee was received by Crown Princess Victoria at the Arland airport. Later, he was received at the Royal Mews by the King Carl XVI Gustaf and Queen Silvia from where he was taken on a horse-drawn cortege to the Royal Palace, where the traditional welcoming ceremony took place.

Earlier in New Delhi, he was given a ceremonial send-off at Rashtrapati Bhavan by Prime Minister Narendra Modi, Vice President Hamid Ansari, Delhi Lieutenant Governor Najeeb Jung, External Affairs Minister Sushma Swaraj, Finance Minister Arun Jaitley and the three Service Chiefs.

During his three-day State visit in Sweden, the President will meet Prime Minister Stefan Lofven, the Speaker of the Swedish Parliament, and the Leader of Opposition, Anna Kinberg Batra besides number of meetings with the King and the Queen. The visit will focus on innovation, sustainable development, urban development and scientific research with both countries exploring ways to enhance mutual exchange in the areas of trade and science.

via Pranab in Sweden, key pacts to be signed – The Hindu.

29/05/2015

India Detains Pigeon Over Spying Fears – India Real Time – WSJ

Indian authorities detained a pigeon on Thursday on suspicion that it was dispatched from Pakistan to infiltrate the border.

The bird was found in Pathankot, a border town in the north Indian state of Punjab, with an address written in Urdu on its body.

Authorities in the town have scanned the pigeon and are trying to decipher other markings underneath its feathers, said Rakesh Kumar Kaushal, special superintendent of police in the town.

India and Pakistan share a long and disputed border. Officials in India said they had reasons to be suspicious about the bird.

“We are being cautious because this is a border area with military presence,” Mr. Kaushal said. “We have heard that pigeons with cameras on them fly and get an aerial view and no can tell from the ground.”

The white-feathered, gray-flecked pigeon landed on the roof of Ramesh Chand’s house on Wednesday evening. Mr. Chand, a barber, wanted to keep the bird as a pet so he started clipping the feathers on its wings to ensure it wouldn’t fly away, according to Mr. Kaushal.

“That is when he noticed some inscriptions under the left wing and tail,” and brought it in, Mr. Kaushal said.

Mr. Chand could not immediately be reached for comment.

A one-lined stamp on the wing appeared to name an address in the Pakistani city of Shakar Garh, which lies 12 miles west of Mr. Chand’s house in India, where the bird was found.

A “series of numbers” are printed alongside the address but they are not phone numbers, according to Mr. Kaushal.

The markings ruffled feathers. “That is when we talked to different agencies and officers,” he said. “They have come and seen the bird.”

The alleged avian interloper was also sent to two veterinarians to have its cavities inspected. It was also scanned and x-rayed to see if it had been used to transport surveillance devices across the border.

“We found no camera, no chips, no SIM cards,” he said.

Amit Kumar Mittal, the deputy inspector general of police in Pathankot said he suspected the bird was just a racing pigeon.

“So far there is no such case that shows it was a spy,” he said. The bird was being fed and cared for at a local police station in the area, he added.

Still, the numerical code on the bird’s wing along with an Urdu inscription on the tail is under investigation to rule out possibilities of espionage.

“If found to be a spy we will take action,” Mr. Kaushal said without elaborating. “If not, then we will make sure it has a good life.”

via India Detains Pigeon Over Spying Fears – India Real Time – WSJ.

29/05/2015

A Sneak-Peek Inside Gap’s First India Store – India Real Time – WSJ

Gap Inc. is going retro for its debut in India, wagering that its branded sweatshirts will be best-sellers thanks to their association with Bollywood.

“These will be the first to fly out from our store,” said Stefan Laban, senior vice president at Gap International, standing next to a wall of Gap-branded hoodies, shoulder bags and caps in the New Delhi outlet, which opens Saturday. “We’re especially going heavy on logos in India.”

A wall of Gap-branded sweatshirts gives the store a retro feel. Preetika Rana/The Wall Street Journal

The reason? Bollywood superstar Shahrukh Khan may have something to do with it. Fans of the actor went Gap-hoodie crazy when he sported the garment in 90s blockbuster, “Kuch Kuch Hota Hai.” The fact it wasn’t available in India added to the sweater’s cachet.

Oliver Kaye, who heads Gap’s business in India, says that hoodie wasn’t sponsored by Gap and credits the Indian actor for drumming up interest in the retailer two decades before it actually arrived here.

“India associates Gap with movie stars,” Mr. Kaye said. “There’s some amount of novelty attached to wearing a Gap shirt here.”

Another popular Indian actor, Kangana Raunat, wore a round neck Gap-emblazoned shirt in “Tanu Weds Manu Returns,” a romantic-comedy released earlier this month, further positioning the brand as aspirational for Indians. Ms. Raunat is expected to be the chief guest at the store’s opening this weekend. Gap says they didn’t pay her to promote the brand either.

Mr. Khan playing a college student in “Kuch Kuch Hota Hai.” Dharma Productions

Best known for its khaki pants and arsenal of denim jeans, the American retailer is playing up its colored pieces and bling for the Indian market. The company has been criticized elsewhere for a monochrome palette and is lagging behind fast-fashion players such as teen retailer Forever21 Inc. and Inditex Group Inc.’s Zara.

“Indians love color,” said Mr. Kaye,  pointing to a rack of shorts available in shades from fuchsia to aqua to florals. The designs were selected after hundreds of consumer interviews in India. Gap’s merchandise in India is priced between 799 rupees ($12) to 5,999 rupees ($94.)  That’s more or less in line with how it prices its garment in its home market in the U.S.

The company is focusing on color for the Indian market with saffron shirts…  Preetika Rana/The Wall Street Journal

…And fuchsia shorts. Preetika Rana/The Wall Street Journal

They’re also tuning up the bling with these sparkly tops.  Preetika Rana/The Wall Street Journal

The company has also identified a gap in the kids and babywear market in India. Nearly 40% of its store space is dedicated to its babyGap brand with everything from striped swimsuits for kids to hot pink sandals for toddlers.

“This space is extremely untapped,” Mr. Laban of Gap International said. “There’s really no competition in the Indian market when it comes to this segment.”

Gap is selling frocks and jumpsuits from its babyGap collection as it hopes to persuade parents to part with their cash. Preetika Rana/The Wall Street Journal

The company says it has spotted a gap in the children’s wear market in India.  Preetika Rana/The Wall Street Journal

Gap plans to open 40 stores in India in the next five years, with about five each in New Delhi and Mumbai. Arvind Lifestyle Brands, which brought Tommy Hilfiger and Calvin Klein to the country and now holds Gap’s franchise rights, expects the business to generate revenues worth one billion rupees ($156 million) by 2020. But quality real estate could be a challenge.

“There are very few quality malls in India. That’s definitely something we’re looking into as we plough ahead,” Ismail Seyis, who heads Gap’s franchise division, said. Real-estate consultancy JLL estimates that 70% of India’s 308 malls are struggling with anemic sales and high vacancy rates.

Gap comes to India six years after Zara and a few months ahead of Hennes & Mauritz AB’s planned autumn debut.

via A Sneak-Peek Inside Gap’s First India Store – India Real Time – WSJ.

26/05/2015

Coal-fired plants in Beijing on way out with new ban|Society|chinadaily.com.cn

Beijing will ban new coal-fired thermal power plants after the four existing ones are expected to be replaced by gas-fired plants by 2017, according to the municipal economic planner.


http://www.gettyimages.com/detail/137085643

The replacement is being made in an attempt to reduce coal consumption to achieve better air quality.

“The closure of the coal-fired power plants will greatly improve air quality, considering that 22 percent of air pollutants are from coal consumption,” said Zhang Wangcai, deputy director of the Beijing Development and Reform Commission’s Energy Bureau.

Two gas-fired thermal power plants have been operating since October and have reduced coal consumption by 3.95 metric tons annually, he said.

Beijing has also restricted coal consumption by companies and households for heating in the past two years by supplying them with gas or other cleaner fuels instead.

“By the end of this year, we will reduce coal consumption by 8 million tons,” Zhang said, adding that a reduction of 7.1 million tons has already been achieved.

Li Xiang, deputy head of atmospheric environment management at the Beijing Environmental Protection Bureau, said the reduction of coal consumption at the two power plants has been a major reason for the better air quality in the capital in the first four months of this year.

She said people in the capital have seen a distinct improvement in air quality in the first four months, during which there were 57 days when the quality was better than the national standard – eight days more than during the same period last year.

The concentration of PM2.5 – air particles of 2.5 micrometers or less in diameter that can penetrate the lungs and harm health – has been lowered by 19 percent and the number of days with serious pollution reduced by 42 percent year-on-year.

On Thursday, authorities launched efforts to reduce air pollution in support of the bid to host the 2022 Winter Olympics.

Zhang said the government will make further efforts to reduce emissions of air pollutants, including restricting coal consumption as planned, which will further improve air quality.

In addition to the two thermal power plants already operating, another will start working in July and a fourth will be ready to operate in November next year, he said.

By 2017, Beijing will have all its power generated by clean-energy gas, and coal consumption will be cut by 9.2 million tons annually – the equivalent amount used for the four coal-burning thermal power plants.

Gas consumption will increase to 24 billion cubic meters in 2017, of which 98 percent will be supplied through a variety of channels including foreign countries, Zhang said, adding that Beijing consumed 11.3 billion cubic meters of gas last year.

The Ministry of Environmental Protection released the list of air quality in April in the 74 major cities on Monday.

In April, seven of the 10 cities with the worst air pollution were in Hebei province, but the region of Beijing, Tianjin and Hebei province has witnessed a clear improvement in air quality, said Luo Yi, head of the ministry’s Environmental Supervision Bureau.

The PM2.5 concentration in the region has been reduced on average by 18.3 percent year-on-year and was 16.3 percent lower in April than in March, he said.

via Coal-fired plants in Beijing on way out with new ban|Society|chinadaily.com.cn.

26/05/2015

The Top 10 Successes of Narendra Modi’s First Year – India Real Time – WSJ

Opinions differ on what Indian Prime Minister Narendra Modi has accomplished in his first year but most observers agree he has been busy since taking over last May.

Opinions differ on what Indian Prime Minister Narendra Modi has accomplished in his first year but most observers agree he has been busy since taking over last May.

He’s been relentless, offering constituents of world’s largest democracy a constant flow of policy speeches, international trips, colorful photo opportunities and ambitious new programs.

His charismatic style of governing has had mixed results.

While he has had some failures–including his party’s defeat in the Delhi elections and its inability to calm concerns within minority communities as outlined in this accompanying post about Mr. Modi’s misses—he has also had some impressive successes.

Here are 10 that stood out:

More Foreign Direct Investment: There was no big-bang busting India open to international competition and deregulation in Mr. Modi’s first year, but the prime minister has to get credit for allowing more FDI in the insurance, defense and other sectors.

Diesel Deregulation: This politically unpopular move was delayed for years but Mr. Modi just ripped the Band-Aid off and freed up diesel prices to move with the global market, potentially saving the government billions of dollars.

Global Diplomacy: Though he made little headway with India’s biggest rival–Pakistan–Mr. Modi’s globetrotting brought the country closer to most of its other neighbors and raised the nation’s profile around the world. Getting President Barack Obama to India for Republic Day was a brilliant public relations coup even if the U.S. President voiced concerns about how India treated its minorities while here.

GDP Growth: Some time during Mr. Modi’s reign, India overtook China as the fastest- growing large economy in the world. Although most of the jump in GDP came from a reworking of how the number is calculated, the revised figure produced a new point of pride for many.

Direct Subsidy Payments: Replacing leaky, expensive-to-administer and badly-targeted subsidies with direct payments to the poor is a more efficient way to help the country’s needy. Mr. Modi started direct payments for cooking gas in some places and is hoping to expand them to subsidize food and fertilizer purchases for the poorest.

Coal and Telecom Auctions: Coal mining rights and telecommunications bandwidth were at the center of the biggest scandals that helped to sink the Congress party in general elections in 2014. Mr. Modi’s Bharatiya Janata Party did not shy away from putting them back on the block to help raise money for the government and kick-start growth in these crucial sectors.

Media Management: Prime Minister Modi starved the media of access at the same time as flooding the airwaves. Speeches broadcast on every news channel, a regular radio show, carefully curated photo opportunities in weird outfits and wonderful places and an unprecedented barrage ofsocial media messages through Facebook, Twitter and even Weibo in China have all been used to let the world know what Mr. Modi is doing and thinking.

Scandal Free: Of course it’s early in the game, but so far in his premiership, there has been no huge scandal to suggest that the latest people in power are more corrupt than the last batch.

This Outfit: When the prime minister greeted President Obama, wearing this dapper suit in January, he wrecked the Internet. Mr. Modi’s vanity pinstripes had the worldwide web buzzing for weeks after Mr. Obama left and then sold at auction for close to $700,000. The money went to charities that work to educate girls.

Mr. Modi hugs Barack Obama while wearing a pinstrip suit with his name in the stitching.

AFP/Getty

He’s been relentless, offering constituents of world’s largest democracy a constant flow of policy speeches, international trips, colorful photo opportunities and ambitious new programs.

His charismatic style of governing has had mixed results.

While he has had some failures–including his party’s defeat in the Delhi elections and its inability to calm concerns within minority communities as outlined in this accompanying post about Mr. Modi’s misses—he has also had some impressive successes.

Here are 10 that stood out:

More Foreign Direct Investment: There was no big-bang busting India open to international competition and deregulation in Mr. Modi’s first year, but the prime minister has to get credit for allowing more FDI in the insurance, defense and other sectors.

Diesel Deregulation: This politically unpopular move was delayed for years but Mr. Modi just ripped the Band-Aid off and freed up diesel prices to move with the global market, potentially saving the government billions of dollars.

Global Diplomacy: Though he made little headway with India’s biggest rival–Pakistan–Mr. Modi’s globetrotting brought the country closer to most of its other neighbors and raised the nation’s profile around the world. Getting President Barack Obama to India for Republic Day was a brilliant public relations coup even if the U.S. President voiced concerns about how India treated its minorities while here.

GDP Growth: Some time during Mr. Modi’s reign, India overtook China as the fastest- growing large economy in the world. Although most of the jump in GDP came from a reworking of how the number is calculated, the revised figure produced a new point of pride for many.

Direct Subsidy Payments: Replacing leaky, expensive-to-administer and badly-targeted subsidies with direct payments to the poor is a more efficient way to help the country’s needy. Mr. Modi started direct payments for cooking gas in some places and is hoping to expand them to subsidize food and fertilizer purchases for the poorest.

Coal and Telecom Auctions: Coal mining rights and telecommunications bandwidth were at the center of the biggest scandals that helped to sink the Congress party in general elections in 2014. Mr. Modi’s Bharatiya Janata Party did not shy away from putting them back on the block to help raise money for the government and kick-start growth in these crucial sectors.

Media Management: Prime Minister Modi starved the media of access at the same time as flooding the airwaves. Speeches broadcast on every news channel, a regular radio show, carefully curated photo opportunities in weird outfits and wonderful places and an unprecedented barrage of social media messages through Facebook, Twitter and even Weibo in China have all been used to let the world know what Mr. Modi is doing and thinking.

Scandal Free: Of course it’s early in the game, but so far in his premiership, there has been no huge scandal to suggest that the latest people in power are more corrupt than the last batch.

This Outfit: When the prime minister greeted President Obama, wearing this dapper suit in January, he wrecked the Internet. Mr. Modi’s vanity pinstripes had the worldwide web buzzing for weeks after Mr. Obama left and then sold at auction for close to $700,000. The money went to charities that work to educate girls.

Mr. Modi hugs Barack Obama while wearing a pinstrip suit with his name in the stitching. AFP/Getty

This Solo: Mr. Modi needed only a few minutes watching a Taiko drum performance during his visit to Japan before he grabbed the sticks and proved he could bash it out with the best of them.

via The Top 10 Successes of Narendra Modi’s First Year – India Real Time – WSJ.

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