Biomass Joint Project

by

biofuelJapanese and Vietnamese research teams are cooperating on a joint project to develop a clean and renewable natural resource from biomass.

The project, named “Sustainable Integration of Local Agriculture and Biomass Industries,” started in October 2009 and is to last for five years. It will be worked on primarily by researchers from the University of Tokyo (UT) and the Ho chi Min City University of Technology (HCMUT).

According to Dr Phan Dinh, the projects’ goal is to develop methods to produce biofuels, in particular ethanol, from biomass, which is essentially agricultural waste. This project is jointly funded by the Japanese and Vietnamese governments.

Bears Take Over Indian Equities Due To Fear Of More Rate Hikes.

by

Bombay-Stock-Exchange1Indian stocks fell due to rising inflation and higher interest rates, causing the market to be bearish.

The Sensex, of the Bombay Exchange, finished the week down 3.22 percent at 18,395.97

The National Stock Exchanges’ 50-scrip S&P CNX Nifty closed 3.23 % down at 5,696.5 points last week.

Five stocks gained on the Sensex during the last week: ONGC, up 0.1% to Rs.1,135.60, SBI, up 3. % to Rs.2,618.55; Tata Steel , up 0.7% to Rs.635.90, NTPC, up 1.2% to Rs.191.80; and Reliance Infra, up 0.9% to Rs.724.20;

The 30-scrip benchmark stocks that lost the most were DLF, down 12.2 % to Rs.223.10; M&M, down 8 % to Rs.696.85; Hindustan Unilever, down 9.5 % to Rs.272.45 and Hero Honda, down 7.1 % to Rs.1,657.45.

Mitsubishi develops LNG Joint Venture

by

lngJapan’s largest investment house, Mitsubishi Corp., plan to invest in a liquefied natural gas (LNG) project valued at $2.8 billion through an Indonesian joint venture.

The investment will produce 2 million tons of LNG per year, starting in 2014. This project will bolster a decline in Indonesian LNG exports. Mitsubishi and Indonesia will share the expensive resource development costs.

Mitsubishi will have a 45 % stake in project. The joint venture will bring in another partner, Kogas, Korea Gas Corp, the largest purchaser of LNG, which will receive a 15 % stake. The name of the joint venture will be Donggi-Senoro LNG.

Donggi-Senoro project leader at Medco E&P in Indonesia, Lukman Mahfoedz, said that “The total investment includes infrastructure and land acquisition.”

Global Sources Says That Rising Chinese Prices Drive Away Buyers

by

chinese-pricesGlobal Sources conducted a survey of 385 business buyers. According to the survey, a majority of purchasers pay prices that are too high for Chinese products. Chinese exports are losing their competitive edge against lower-cost countries, especially for low-price goods.

Sixty-eight percent of those answering the survey said that the yuan’s appreciation has changed their sourcing strategy regarding Chinese goods.

One-third of respondents predict that the yuan to will rise to 6.5 to the U.S. dollar during the next half year.

In response to the rising yuan, 54 percent said that they will import from less expensive countries such as Vietnam and India. However, buyers will still purchase from China for goods that have short delivery schedules or detailed specifications.

Global Sources’ President of Corporate Affairs, Craig Pepples said that “Given the changing price point of China products, China exporters must work harder to market themselves and justify higher prices in terms of service, product quality or production volume.”

Inflation Linked Bonds Are The Hit In Asia

by

The head of Fidelity’s institutional business in Hong Kong, Carlo Venes, said that international inflation-linked bonds are becoming more sought after by professional investors in Asia. They want to protect themselves against inflation and to balance their portfolios with non-dollar based investments.

Some analysts predict that Western central banks are following monetary policies which are too risky. Other analysts predict that deflation will follow the International financial crisis.

Verns explained that “The dispersion of views on inflation is huge.” “You have the camp that believes still that the western world will be in a Japan scenario for a decade. You also have the view that with all the printing of money, and all the central bank support, there is risk that, all the money that now sits on corporate balance sheets in cash, will accelerate the risk of inflation picking up.”

China’s inflation went up to a 25-month high of 5.1% in last November.

First Branch of Chinese Bank Established In France

by

The first French branch of the Industrial and Commercial Bank of China (ICBC) was opened in Paris this Tuesday.

Industrial-and-Commercial-Bank-of-ChinaAt the inauguration, French Finance Minister Christine Lagarde and ICBC President Jiang Jianqing mutually pressed a button to symbolically launch the Chinese bank’s new subsidiary.

Lagarde said “France is very glad to welcome the biggest bank of the world, ICBC.”

Jiang said that the tremendous potential of mutual business transactions between France and China, which was over 40 billion U.S.D last year, stimulated companies to increase their mutual investments.

On Monday, the ICBC announced the establishments of five subsidiaries in Europe: in Madrid, Milan, Amsterdam, Brussels and Paris.
The ICBC global services are have operations in 28 regions and countries including 203 branches around the world.

Medical Innovation Moving To Emerging Economies

by

A PricewaterhouseCoopers report indicates that emerging countries like Brazil, India and China are emerging as leaders in medical innovation and may well surpass the U.S.

According to the report, medical technology innovators are more frequently going overseas to “seek clinical data, new-product registration and first revenue.” This may lead to a situation where Americans are the last to receive new medical technology. Emerging markets are quickly becoming “the leading markets for smaller, faster, more affordable devices that enable delivery of care anywhere and help bend the health-care cost curve downward.”

According to the report, the emerging nations are not hindered by “entrenched health-care system infrastructure that seeks to maintain the status quo.” The report’s co-author, a managing director at PwC, Christopher Wasden, said that it is important to “rethink our reimbursement system” to the medical tech industry. This may stimulate companies to stay in America.

GAIL Is Looking To Invest In US Shale Gas Businesses

by

Shale-gasIndian state-owned gas marketer GAIL? Ltd is searching to acquire shale gas companies in the US. Gail is prepared to invest approximately $400-500 million. The company has publicized a request for proposals (RFP) from bankers who are able to help it identify targets and to close a deal. The RFP was publicized last month.

GAIL is also prepared to partner with other oil and gas companies for its international shale gas aspirations.

“Acquiring a shale gas asset company in the US would give the company the opportunity and the competence to bid for shale gas assets in India, as and when they come up for auctions,” according to Edelwiess Securities analyst, Niraj Mansingka.

Japanese Banks Target Malaysia and Indonesia

by

Japanese banks are focusing on developing lending agreements In Malaysia and Indonesia, the fastest developing economies. Southeast Asia has a large population, a developing infrastructure and a many natural resources. Moody’s, noting Indonesia’s better debt position and it’s healthy economy, has acknowledged Indonesia’s potential by raising its rating.

Therefore, Japanese banks are creating deals with local lenders and are also enlarging their offices to increase their loan business in Malaysia and Indonesia. One of Japan’s largest banks, Sumitomo Mitsui Financial Group, will be expanding its employees in Malaysia from about 30 to approximately 100. In addition, it expects to increase employees in Indonesia from the present level of 200.

Manulife Issues RMB Savings-Iinsurance Plan

by

renminbiIn expectation of the increasing value of China’s currency, Manulife is launching several renminbi-based financial/insurance plans in Hong Kong. During the last five years, the RMB has increased twenty five percent against the dollar. Meanwhile, with China’s approval, Hong Kong has become the major offshore center for China’s currency. From January to November 2010, Renminbi deposits increased by 240% to Rmb2.2 trillion which is $32.9 billion.

Manulife’s first plan is a single-premium savings insurance plan which matures in five years and provides capital security and guaranteed returns. The yearly return is 1.8% in renminbi, which will probably increase in Hong Kong dollars if the renminbi’s upward trend continued.

Wang Yu-Ming, of Hong Kong Manulife Asset Management, says that developing foreign renminbi trade is a major priority: “China is anticipating that the renminbi will become one of the world’s future reserve currencies, and that in and of itself should make investors pay attention.”