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China HSBC December manufacturing PMI at highest since May 2011
Activity in China's vast manufacturing sector hit its fastest pace in December since May 2011, a survey of private factory managers showed, with a sub-index for new orders pointing to continued strength in the new year.
The final reading for the HSBC Purchasing Managers' Index rose to 51.5 in December, well above the preliminary reading of 50.9 published in the middle of the month and November's final reading of 50.5.
A complementary December survey by China's National Bureau of Statistics, due to be published on Tuesday, is expected to show similar signs of manufacturing strength. Economists polled by Reuters expect the official PMI to show a rise to 51.0 from 50.6 in November, expanding at its fastest pace in eight months.
The HSBC PMI rose above 50, the line that demarcates accelerating from slowing growth, in November for the first time in more than a year.
The survey results fit with a growing consensus that the Chinese economy revved back up in the fourth quarter, after growth slowed for the seventh consecutive quarter to 7.4 per cent in the third.
A sub-index tracking new orders showed even more room for optimism, rising to 52.9, its highest level since January 2011.
"Such a momentum is likely to be sustained in the coming months when infrastructure construction runs into full speed and property market conditions stabilise," Hongbin Qu, HSBC's chief economist for China, wrote in a note accompanying the survey.
"This, plus Beijing's reiteration of keeping pro-growth policy in place into the coming year, should support a modest growth recovery of around 8.6 per cent year-on-year in 2013, despite the ongoing external headwinds."
In another sign of factory-sector growth, a sub-index tracking output rose to its highest level since May 2011.
The improving economic picture seems primarily linked to domestic demand, as China's export sector continues to grapple with a slowdown in its biggest markets. A new export orders sub-index retreated below 50 in December, after rising into expansionary territory in November for the first time in seven months.
"Infrastructure and housing are picking up, so related sectors like steel and cement are picking up," said analyst Zhang Zhiwei from Nomura International in Hong Kong.
"It's more driven by investment than consumption."
UPTICK
China is on course to achieve growth of 7.7 per cent in 2012, according to forecasts in a benchmark Reuters poll, the slowest full year of expansion since 1999.
While that is way above the world's other major economies, it is below the roughly 10 per cent annual growth seen for most of the last 30 years.
The final reading for the HSBC Purchasing Managers' Index rose to 51.5 in December, well above the preliminary reading of 50.9 published in the middle of the month and November's final reading of 50.5.
A complementary December survey by China's National Bureau of Statistics, due to be published on Tuesday, is expected to show similar signs of manufacturing strength. Economists polled by Reuters expect the official PMI to show a rise to 51.0 from 50.6 in November, expanding at its fastest pace in eight months.
The HSBC PMI rose above 50, the line that demarcates accelerating from slowing growth, in November for the first time in more than a year.
The survey results fit with a growing consensus that the Chinese economy revved back up in the fourth quarter, after growth slowed for the seventh consecutive quarter to 7.4 per cent in the third.
A sub-index tracking new orders showed even more room for optimism, rising to 52.9, its highest level since January 2011.
"Such a momentum is likely to be sustained in the coming months when infrastructure construction runs into full speed and property market conditions stabilise," Hongbin Qu, HSBC's chief economist for China, wrote in a note accompanying the survey.
"This, plus Beijing's reiteration of keeping pro-growth policy in place into the coming year, should support a modest growth recovery of around 8.6 per cent year-on-year in 2013, despite the ongoing external headwinds."
In another sign of factory-sector growth, a sub-index tracking output rose to its highest level since May 2011.
The improving economic picture seems primarily linked to domestic demand, as China's export sector continues to grapple with a slowdown in its biggest markets. A new export orders sub-index retreated below 50 in December, after rising into expansionary territory in November for the first time in seven months.
"Infrastructure and housing are picking up, so related sectors like steel and cement are picking up," said analyst Zhang Zhiwei from Nomura International in Hong Kong.
"It's more driven by investment than consumption."
UPTICK
China is on course to achieve growth of 7.7 per cent in 2012, according to forecasts in a benchmark Reuters poll, the slowest full year of expansion since 1999.
While that is way above the world's other major economies, it is below the roughly 10 per cent annual growth seen for most of the last 30 years.
DoT wants spectrum in 800 MHz band to be put on sale next year
The Department of Telecom is in favour of auctioning spectrum in the 800 MHz band in the next round of sale scheduled for next year. This band, used for CDMA-based mobile services, found no takers in the auction that was held in November.
Some of the existing GSM players, including Vodafone, had recently expressed interest in this band and may bid if the base price is reduced. Since 800 MHz band is close to the GSM airwaves, it can be used by incumbent 2G players to offer data services.
DoT has told the Empowered Group of Ministers that spectrum in this band should also be sold by reducing the reserve price. The other option, according to the DoT, is to seek fresh recommendations from the Telecom Regulatory Authority of India but that would take at least 6 months to complete. In a note to the EGoM, the department said the TRAI would have to hold open house and conduct consultation process which could take time. Therefore, the spectrum should be sold without referring it to TRAI again.
DoT has followed a similar approach for finalising the auction rules for selling unsold spectrum in the 1800 MHz used for GSM mobile services. In addition, the DoT has made a blueprint to sell airwaves in the 900 MHz spectrum, which is currently used for 2G.
The DoT has proposed to put nearly 24 slots of spectrum on sale in the next round of auction. This includes 12 slots each in the 1800 MHz and 900 MHz bands. If the EGoM agrees to sell bandwidth in the 800 MHz band also, then, there will be 3 more slots up for grabs.
Each slot is of 1.25 MHz and operators will be allowed to buy at least four slots. Bidders will be permitted to buy up to 25 per cent of all spectrum assigned in different bands. The auction is scheduled to be held before March and the Government expects around Rs 25,000 crore from the sale.
This is a change from the recent auction that failed to attract aggressive bids because the Government had restricted the amount of spectrum to just eight slots with a rider that no player can acquire more than five slots. The base price was also high. As a result, there were no bids for the four circles of Delhi, Mumbai, Rajasthan and Karnataka in the GSM band.
Under the new plan, the DoT has reduced the reserve price by 30 per cent for the GSM bands. It has also put more spectrum on the block besides allowing operators to buy more than five slots as long as they do not corner more than 25 per cent of all spectrum available.
More spectrum
The DoT plans to put 15 MHz of spectrum in 1800 MHz band in Delhi and Mumbai for auction at a reserve price of Rs 485.15 crore and Rs 474.92 crore a block, respectively. In the previous auction, the Government had put only 10 MHz for auction divided into eight blocks of 1.25 MHz each for Rs 693.06 crore in Delhi and Rs 678.45 crore in Mumbai.
Some of the existing GSM players, including Vodafone, had recently expressed interest in this band and may bid if the base price is reduced. Since 800 MHz band is close to the GSM airwaves, it can be used by incumbent 2G players to offer data services.
DoT has told the Empowered Group of Ministers that spectrum in this band should also be sold by reducing the reserve price. The other option, according to the DoT, is to seek fresh recommendations from the Telecom Regulatory Authority of India but that would take at least 6 months to complete. In a note to the EGoM, the department said the TRAI would have to hold open house and conduct consultation process which could take time. Therefore, the spectrum should be sold without referring it to TRAI again.
DoT has followed a similar approach for finalising the auction rules for selling unsold spectrum in the 1800 MHz used for GSM mobile services. In addition, the DoT has made a blueprint to sell airwaves in the 900 MHz spectrum, which is currently used for 2G.
The DoT has proposed to put nearly 24 slots of spectrum on sale in the next round of auction. This includes 12 slots each in the 1800 MHz and 900 MHz bands. If the EGoM agrees to sell bandwidth in the 800 MHz band also, then, there will be 3 more slots up for grabs.
Each slot is of 1.25 MHz and operators will be allowed to buy at least four slots. Bidders will be permitted to buy up to 25 per cent of all spectrum assigned in different bands. The auction is scheduled to be held before March and the Government expects around Rs 25,000 crore from the sale.
This is a change from the recent auction that failed to attract aggressive bids because the Government had restricted the amount of spectrum to just eight slots with a rider that no player can acquire more than five slots. The base price was also high. As a result, there were no bids for the four circles of Delhi, Mumbai, Rajasthan and Karnataka in the GSM band.
Under the new plan, the DoT has reduced the reserve price by 30 per cent for the GSM bands. It has also put more spectrum on the block besides allowing operators to buy more than five slots as long as they do not corner more than 25 per cent of all spectrum available.
More spectrum
The DoT plans to put 15 MHz of spectrum in 1800 MHz band in Delhi and Mumbai for auction at a reserve price of Rs 485.15 crore and Rs 474.92 crore a block, respectively. In the previous auction, the Government had put only 10 MHz for auction divided into eight blocks of 1.25 MHz each for Rs 693.06 crore in Delhi and Rs 678.45 crore in Mumbai.
Kingfisher Airlines should clear Rs 300cr dues before restarting operations: Airports Authority of India
In a major blow to grounded Kingfisher's plans to restart operations, the Airports Authority of India (AAI) has refused to give its nod to the airline to do so without first recovering dues of Rs 300 crore.
The AAI conveyed this to the Directorate General of Civil Aviation (DGCA) on Thursday when the regulator sought its views after getting a new plan from Vijay Mallya's nearly bankrupt airline earlier this week.
"AAI chairman V P Agrawal has written to DGCA chief Arun Mishra that Kingfisher can't be allowed to restart operations unless it first clears its dues. Once it does that, Agrawal told the DG, the airline can be allowed to fly on cash-and-carry basis," said sources.
Kingfisher owes about Rs 300 crore to AAI, out of which cheques for Rs 127 crore have bounced. "Lessors of Kingfisher want to repossess four Airbus A-320s. AAI has asked the lessors to cough up Rs 70 crore before they can be allowed to do so," said sources.
The worries of companies that have leased planes to Kingfisher are growing as government agencies have started impounding aircraft because of the dues. The service tax department recently impounded an aircraft for this reason.
Aviation minister Ajit Singh and DGCA sources have made it clear that the new plan submitted by Kingfisher does not have any concrete financing roadmap for the cash-strapped airline.
A top official said that the airline's promoters are making desperate efforts to somehow get their licence back (which expires on Monday) so that they may be able to sell it off to someone.
"Who will invest in a grounded airline that has collective debt and losses of over Rs 15,000 crore and an unpaid workforce of over 3,000 employees? The plan given by Kingfisher has nothing concrete in terms of recapitalization," said an official.
Also the aviation ministry is likely to take a tough stand on Kingfisher this time as its earlier soft handling had drawn flak. The airline was forced to declare a shutdown on October 1, a day after its employees refused to attach step ladders or aerobridges to aircraft.
The DGCA later issued a notice to it and then suspended its licence - which is expiring on Monday.
The AAI conveyed this to the Directorate General of Civil Aviation (DGCA) on Thursday when the regulator sought its views after getting a new plan from Vijay Mallya's nearly bankrupt airline earlier this week.
"AAI chairman V P Agrawal has written to DGCA chief Arun Mishra that Kingfisher can't be allowed to restart operations unless it first clears its dues. Once it does that, Agrawal told the DG, the airline can be allowed to fly on cash-and-carry basis," said sources.
Kingfisher owes about Rs 300 crore to AAI, out of which cheques for Rs 127 crore have bounced. "Lessors of Kingfisher want to repossess four Airbus A-320s. AAI has asked the lessors to cough up Rs 70 crore before they can be allowed to do so," said sources.
The worries of companies that have leased planes to Kingfisher are growing as government agencies have started impounding aircraft because of the dues. The service tax department recently impounded an aircraft for this reason.
Aviation minister Ajit Singh and DGCA sources have made it clear that the new plan submitted by Kingfisher does not have any concrete financing roadmap for the cash-strapped airline.
A top official said that the airline's promoters are making desperate efforts to somehow get their licence back (which expires on Monday) so that they may be able to sell it off to someone.
"Who will invest in a grounded airline that has collective debt and losses of over Rs 15,000 crore and an unpaid workforce of over 3,000 employees? The plan given by Kingfisher has nothing concrete in terms of recapitalization," said an official.
Also the aviation ministry is likely to take a tough stand on Kingfisher this time as its earlier soft handling had drawn flak. The airline was forced to declare a shutdown on October 1, a day after its employees refused to attach step ladders or aerobridges to aircraft.
The DGCA later issued a notice to it and then suspended its licence - which is expiring on Monday.
Vista-based Tata mini SUV project reportedly gets the green light
The Mahindra Quanto has most definitely set the cash registers ringing for Mahindra. A sub-four meter utility vehicle for the price of a mid-size sedan, surely that’s a proposition India has latched on to very easily.
The “elder brother” Tata Motors has been eying new segments to stage a comeback in the auto market after recent launches Aria and Nano didn’t go to script.
Reuters reports that Tata Motors has started working on a compact SUV based on the Indica Vista’s X1 platform to rival the likes of Mahindra Quanto, Premier Rio and Ford EcoSport. This will be the Indian automaker’s biggest product development program after the ultra low cost Nano. The automaker has summoned huge resources to ramp up the R&D work on the new compact SUV.
We have heard rumors about Tata Motors developing a ‘CS version’ of the Tata Sumo in recent weeks. The idea is to launch a smaller Sumo variant that will be shorter than four meters and thus will enjoy considerable tax benefits.
However, this new development suggest that Tata Motors has also decided to build a new compact SUV from scratch, that will carry a different branding.
The “elder brother” Tata Motors has been eying new segments to stage a comeback in the auto market after recent launches Aria and Nano didn’t go to script.
Reuters reports that Tata Motors has started working on a compact SUV based on the Indica Vista’s X1 platform to rival the likes of Mahindra Quanto, Premier Rio and Ford EcoSport. This will be the Indian automaker’s biggest product development program after the ultra low cost Nano. The automaker has summoned huge resources to ramp up the R&D work on the new compact SUV.
We have heard rumors about Tata Motors developing a ‘CS version’ of the Tata Sumo in recent weeks. The idea is to launch a smaller Sumo variant that will be shorter than four meters and thus will enjoy considerable tax benefits.
However, this new development suggest that Tata Motors has also decided to build a new compact SUV from scratch, that will carry a different branding.
Smartphone apps to send SOS alert
A smartphone application which enable a user to send SOS alerts with the information of location to family and friends in any emergency situation has been launched by MindHelix Technosol.
The smartphone application 'Sentinel' can call friends and family in case of danger on the press of a button. It works in multiple scenarios even without triggering an alert manually, a company release said.
The application can send out alerts even if the attacker forcefully destroys the phone. As the call, SMS and email are sent from and Internet server, the application triggers an alert even if the user is not connected to the Internet by sending SMS with location to the server, it said.
The alerts consist of the last known location, time and direction with tracking information to see live data from the phone and pinpoint the location of the phone, Christin Emmanuel George, CEO of MindHelix Technosol said.
Sentinel can improve personal security, but that is just one of the features. Senior citizen can alert their doctors or parents who want to ensure the security of their children can use it, according to Christin.
MindHelix Technosol has created the Citizen Interaction/ Feedback tool for Delhi Police, the Know Your Police Station initiative.
The smartphone application 'Sentinel' can call friends and family in case of danger on the press of a button. It works in multiple scenarios even without triggering an alert manually, a company release said.
The application can send out alerts even if the attacker forcefully destroys the phone. As the call, SMS and email are sent from and Internet server, the application triggers an alert even if the user is not connected to the Internet by sending SMS with location to the server, it said.
The alerts consist of the last known location, time and direction with tracking information to see live data from the phone and pinpoint the location of the phone, Christin Emmanuel George, CEO of MindHelix Technosol said.
Sentinel can improve personal security, but that is just one of the features. Senior citizen can alert their doctors or parents who want to ensure the security of their children can use it, according to Christin.
MindHelix Technosol has created the Citizen Interaction/ Feedback tool for Delhi Police, the Know Your Police Station initiative.
Reliance’s offer: Unlimited usage of Facebook Messenger at Rs 16 only
According to Tech2, Reliance has launched a new plan for all prepaid users. This plan will let them make unlimited usage of the Facebook Messenger app at Rs 16 per month only.
The offer is valid for Reliance GSM subscribers across the country. The Facebook Messenger Plan has a validity period of 30 days from the date of recharge and the plan is auto-renewed every 30 days unless you unsubscribe.
The Facebook messenger app is available for Android, BlackBerry and iOS users. Recently Facebook gave Android users in India the option to download the app and log in with just their name and mobile number. Previously you needed a Facebook account to use the app.
The Facebook Messenger App is currently at number 5 in the top free Android apps.
The offer is valid for Reliance GSM subscribers across the country. The Facebook Messenger Plan has a validity period of 30 days from the date of recharge and the plan is auto-renewed every 30 days unless you unsubscribe.
The Facebook messenger app is available for Android, BlackBerry and iOS users. Recently Facebook gave Android users in India the option to download the app and log in with just their name and mobile number. Previously you needed a Facebook account to use the app.
The Facebook Messenger App is currently at number 5 in the top free Android apps.
No fear of losing internet freedom till Jan 15: Experts
There is no need to get scared about losing internet freedom, at least till January 2015. That's the view of top telecom policy watchers, who closely monitored the World Conference on International Telecommunications (WCIT) of the International Telecommunication Union (ITU) that ended in uncertainty earlier this month in Dubai.
Policy experts say the changes affecting internet users in India, if any, would be slow and minor with little or no changes existing laws and governments largely retaining their current control. The resolutions are not binding and member-states are free to opt out of it. India is yet to ratify the treaty that lays out a broad framework on international co-operation over telecommunication resources.
The ITR (International Telecom Regulations), decided by the ITU were last updated in 1988 when the internet, as we know it today, did not exist. And the hullabaloo was caused by the proliferation of internet in the intervening years had created a lot of complications and misgiving among nation states. The Dubai conference also included alarmed internet evangelists who feared that the meeting would result in UN control of the internet. But with the US, the UK and several other countries vehemently refusing to sign on the dotted line, most decisions have been withheld till January 2015 when the treaty is expected to be ratified.
Says Anja Kovacs of Internet Democracy Project, "India still has to decide whether to sign or not. If India does sign the treaty in the end, the immediate impact on the internet within the country is likely be small, however, since...most provisions now integrated in the ITRs (International Telecom Resolutions) are already part of local laws and regulations in some form or the other."
Even before the WCIT could begin in Dubai, opinion was polarized on what it could or could not do to internet freedom. Behind closed doors, countries such as Russia and China had been lobbying for a greater control of the internet, via the ITU, which is a part of the United Nations Development Group. Hard proof came with the revelations of a collective called WCIT Leaks. India was reported to be in support of the treaty, finding itself in the company of regimes like Azerbaijan. Sources in the Department of Telecom (DoT) who were present at the Dubai meet said on condition of anonymity that their focus is on equitable distribution of IP addresses in the world through multilateral meetings.
Some countries have argued against the expansion of the ITU's powers to include the internet, saying it will hamper freedom of expression, free flow of ideas and access to online content with the governments and the UN deciding on an online code of conduct. Google started a "campaign" to mobilize opinion against the inclusion of the internet in the treaty. Several mainstream American publications such as New York Times also approached the resolutions warily. Forbes called it "The Internet Cold War."
Others believe no real change in online freedoms will come of this treaty, and that control over content will remain largely nationalized rather than be decided by the UN. Milton Mueller, a US-based researcher in the field of "political economy of information and communication" and Harvard law school professor Jack Goldsmith tried to debunk the "hysteria" and "phobia" surrounding the meet and resolutions with their blog posts.
Chinmayi Arun, a professor from the National Law School, Bangalore, was present at the Dubai conference as a civil society representative from India. Assessing the internet implications of the treaty, if and when ratified by India, Arun sees little reason to be worried with even "better access to telecom services to the disabled "as part of a larger bargain". However, it is not all sweetness and light. Privacy, it appears, is a matter of contention not with the international telecom regulations, but the ITU's interventions in other areas. "Other activities of the ITU, such as its new standard on deep packet inspection could potentially affect privacy," says Pranesh Prakash, policy director at the Bangalore-based Center for Internet and Society. Deep packet inspection is a form of electronic surveillance.
Policy experts say the changes affecting internet users in India, if any, would be slow and minor with little or no changes existing laws and governments largely retaining their current control. The resolutions are not binding and member-states are free to opt out of it. India is yet to ratify the treaty that lays out a broad framework on international co-operation over telecommunication resources.
The ITR (International Telecom Regulations), decided by the ITU were last updated in 1988 when the internet, as we know it today, did not exist. And the hullabaloo was caused by the proliferation of internet in the intervening years had created a lot of complications and misgiving among nation states. The Dubai conference also included alarmed internet evangelists who feared that the meeting would result in UN control of the internet. But with the US, the UK and several other countries vehemently refusing to sign on the dotted line, most decisions have been withheld till January 2015 when the treaty is expected to be ratified.
Says Anja Kovacs of Internet Democracy Project, "India still has to decide whether to sign or not. If India does sign the treaty in the end, the immediate impact on the internet within the country is likely be small, however, since...most provisions now integrated in the ITRs (International Telecom Resolutions) are already part of local laws and regulations in some form or the other."
Even before the WCIT could begin in Dubai, opinion was polarized on what it could or could not do to internet freedom. Behind closed doors, countries such as Russia and China had been lobbying for a greater control of the internet, via the ITU, which is a part of the United Nations Development Group. Hard proof came with the revelations of a collective called WCIT Leaks. India was reported to be in support of the treaty, finding itself in the company of regimes like Azerbaijan. Sources in the Department of Telecom (DoT) who were present at the Dubai meet said on condition of anonymity that their focus is on equitable distribution of IP addresses in the world through multilateral meetings.
Some countries have argued against the expansion of the ITU's powers to include the internet, saying it will hamper freedom of expression, free flow of ideas and access to online content with the governments and the UN deciding on an online code of conduct. Google started a "campaign" to mobilize opinion against the inclusion of the internet in the treaty. Several mainstream American publications such as New York Times also approached the resolutions warily. Forbes called it "The Internet Cold War."
Others believe no real change in online freedoms will come of this treaty, and that control over content will remain largely nationalized rather than be decided by the UN. Milton Mueller, a US-based researcher in the field of "political economy of information and communication" and Harvard law school professor Jack Goldsmith tried to debunk the "hysteria" and "phobia" surrounding the meet and resolutions with their blog posts.
Chinmayi Arun, a professor from the National Law School, Bangalore, was present at the Dubai conference as a civil society representative from India. Assessing the internet implications of the treaty, if and when ratified by India, Arun sees little reason to be worried with even "better access to telecom services to the disabled "as part of a larger bargain". However, it is not all sweetness and light. Privacy, it appears, is a matter of contention not with the international telecom regulations, but the ITU's interventions in other areas. "Other activities of the ITU, such as its new standard on deep packet inspection could potentially affect privacy," says Pranesh Prakash, policy director at the Bangalore-based Center for Internet and Society. Deep packet inspection is a form of electronic surveillance.
Instagram's reversal is no big victory
Instagram has made a full retreat from proposed changes to its terms of service that seemed to give it new ways to make money from its users' photos.
But was this a "win" for users? A closer look shows that even without the planned changes, things are pretty much staying the same.
CEO Kevin Systrom wrote on the company's blog late Thursday that it was never the intention to sell the pictures its 100 million users take each day to advertisers or other third parties. Right now, Instagram has no real revenue sources. The service is free.
Systrom said the company would revert to the old terms of service, which has left plenty of folks scoring this one as a victory for privacy and user rights.
Well, not quite.
The old terms were, in fact, roughly the same - just less concise. They state that Instagram "may display advertisements and promotions ... on, about, or in conjunction with your (photos)."
They also say, "You hereby grant to Instagram a ... royalty-free ... license to use the Content that you post ... subject to the Service's Privacy Policy."
The emphasis is mine, but in case anyone is keeping score, that's another way of saying "without compensation," which is primarily what upset users about the proposed change in terms.
But was this a "win" for users? A closer look shows that even without the planned changes, things are pretty much staying the same.
CEO Kevin Systrom wrote on the company's blog late Thursday that it was never the intention to sell the pictures its 100 million users take each day to advertisers or other third parties. Right now, Instagram has no real revenue sources. The service is free.
Systrom said the company would revert to the old terms of service, which has left plenty of folks scoring this one as a victory for privacy and user rights.
Well, not quite.
The old terms were, in fact, roughly the same - just less concise. They state that Instagram "may display advertisements and promotions ... on, about, or in conjunction with your (photos)."
They also say, "You hereby grant to Instagram a ... royalty-free ... license to use the Content that you post ... subject to the Service's Privacy Policy."
The emphasis is mine, but in case anyone is keeping score, that's another way of saying "without compensation," which is primarily what upset users about the proposed change in terms.
Apple supplier seeks hi-tech future
TAIPEI, TAIWAN: Hon Hai Precision Industry, Apple Inc's biggest manufacturing partner, is seeking to transform itself into a technology firm and leave behind the low-margin contract business that has made it one of the world's biggest makers of other firms' products with revenues expected to top $101 billion this year.The company's chairman, Terry Gou, told reporters after the annual shareholders meeting in Taipei on Wednesday that Hon Hai was not going to build its own brand, but would instead look to grow through technological prowess.
"We are a high-tech manufacturer, not a traditional contract maker," said Gou, the billionaire founder of the company, which started out making plastic radio knobs and is now the flagship unit of the huge Foxconn group.
"We will not give up the manufacturing business. Global players are giving up this market so there are plenty of opportunities left for us," he added, noting that the firm is in cooperation talks with a number of top Japanese hi-tech firms, including Sharp, Canon and Hitachi.
The contract manufacturing business, a mainstay of Taiwan's economy, is being pressured by rising labour and other costs that are squeezing already paper-thin margins and prompting makers to think of new ways to grow. Hon Hai's operating margin fell to 2.87 percent in 2010 from 5.43 percent in 2005.
Hon Hai has faced higher costs ever since it sharply raised wages in China following a series of suicides at its plants last year that critics blamed on poor working conditions
Last week at the Computex computer show in Taiwan, Ray Chen, president of Compal, the world's second-largest contract laptop maker, said there was "no choice" but to change the contract manufacturing business model.
"We'll have to move up the ladder and come up with more innovative products to lift margins and average selling prices," Chen told Reuters at the show. "That is why we have been trying to focus on innovation and R&D."
Hon Hai's Gou also laid out a number of other measures the company is taking to ensure future growth, including considering becoming a holding company and improving efficiency and productivity.
Gou sees completing new factories in China and moving existing plants to inland China as also contributing to a surge in revenue and profits over the next year. He will also focus investment on BRICS countries, he said.
"This is a year for solidifying our base. Next year will definitely be a harvest year," Gou said.
Hon Hai unit Foxconn International Holdings Ltd, the world's top contract cell phone maker, said last month it expects a "dramatic improvement" in its 2011 results, helped by demand for smartphones.
Analysts say Hon Hai is moving in the right direction.
"It's doing the right thing for the long term," said Arthur Hsieh, analyst at UBS.
"But whether it can grow its operating profit still needs time to observe, because there are many uncertainties such as macro-economic conditions and its plant relocation progress."
The company is also likely to see better revenues next year, with companies like Apple unlikely to be able to find other suitable makers and given that Hon Hai was one of the first contract makers to raise wages, so it has already taken some hits to earnings.
"What Terry Gou said was largely in line with my expectations because I'm also expecting the second half to be better," said Calvin Huang, analyst at Daiwa Securities.
"In a way, it's suffered before anybody else by raising wages and shifting its factories and so, it will start recovering before others."
The Foxconn group made headlines last year after reports emerged.
"We are a high-tech manufacturer, not a traditional contract maker," said Gou, the billionaire founder of the company, which started out making plastic radio knobs and is now the flagship unit of the huge Foxconn group.
"We will not give up the manufacturing business. Global players are giving up this market so there are plenty of opportunities left for us," he added, noting that the firm is in cooperation talks with a number of top Japanese hi-tech firms, including Sharp, Canon and Hitachi.
The contract manufacturing business, a mainstay of Taiwan's economy, is being pressured by rising labour and other costs that are squeezing already paper-thin margins and prompting makers to think of new ways to grow. Hon Hai's operating margin fell to 2.87 percent in 2010 from 5.43 percent in 2005.
Hon Hai has faced higher costs ever since it sharply raised wages in China following a series of suicides at its plants last year that critics blamed on poor working conditions
Last week at the Computex computer show in Taiwan, Ray Chen, president of Compal, the world's second-largest contract laptop maker, said there was "no choice" but to change the contract manufacturing business model.
"We'll have to move up the ladder and come up with more innovative products to lift margins and average selling prices," Chen told Reuters at the show. "That is why we have been trying to focus on innovation and R&D."
Hon Hai's Gou also laid out a number of other measures the company is taking to ensure future growth, including considering becoming a holding company and improving efficiency and productivity.
Gou sees completing new factories in China and moving existing plants to inland China as also contributing to a surge in revenue and profits over the next year. He will also focus investment on BRICS countries, he said.
"This is a year for solidifying our base. Next year will definitely be a harvest year," Gou said.
Hon Hai unit Foxconn International Holdings Ltd, the world's top contract cell phone maker, said last month it expects a "dramatic improvement" in its 2011 results, helped by demand for smartphones.
Analysts say Hon Hai is moving in the right direction.
"It's doing the right thing for the long term," said Arthur Hsieh, analyst at UBS.
"But whether it can grow its operating profit still needs time to observe, because there are many uncertainties such as macro-economic conditions and its plant relocation progress."
The company is also likely to see better revenues next year, with companies like Apple unlikely to be able to find other suitable makers and given that Hon Hai was one of the first contract makers to raise wages, so it has already taken some hits to earnings.
"What Terry Gou said was largely in line with my expectations because I'm also expecting the second half to be better," said Calvin Huang, analyst at Daiwa Securities.
"In a way, it's suffered before anybody else by raising wages and shifting its factories and so, it will start recovering before others."
The Foxconn group made headlines last year after reports emerged.
Italian Open leader is solid as a Rock
TURIN: Britain's Robert Rock is well placed to record his first European Tour win at the Italian Open, the week before he is due to make his US Open debut.
The 34-year-old, in his 10th year on tour, fired a four-under 68 in the second round on Friday to lead by a stroke at Royal Park on 12-under 132.
Rock led playing partner and fellow Englishman Chris Wood (69) and Dutchman Joost Luiten (67) by one shot.
Italians Matteo Manassero (68), Francesco Molinari (68) and Lorenzo Gagli (66) were a further stroke back on 134 along with Frenchman Gregory Bourdy (68) and Britons Gary Boyd (65) and Rhys Davies (68).
Frenchman Victor Dubuisson carded a best-of-the-week 62 to finish in a group of players on 135.
Rock is looking to better three second places. One of those was a losing playoff in the 2009 Irish Open to Shane Lowry.
"It would be nice to get the monkey off my back next week," Rock told Reuters, "but being realistic to finally win a title this week would be great.
"It's been a long time on the European Tour only getting a very few opportunities to win."
A dramatic recent improvement in his putting has helped Rock qualify for the US Open and his performance on the greens was again good at Royal Park.
"I just want it to stay with me this week and next," he added. "I know my long game can stand up to it but I've been worried about the putter."
While Rock was delighted to be in pole position, Italian teenager Manassero was as gloomy as the thunderstorm which held up play for 80 minutes in the afternoon after missing a series of makeable putts on the drenched greens.
"It's really annoying being two behind. I left so many shots out there, at least six," said Manassero.
Rock and Wood had an exciting three-ball with Australian Marcus Fraser who produced a hole in one at the fourth.
"He also just missed out on a car for another hole in one at the 15th by about a foot," said Wood.
The 34-year-old, in his 10th year on tour, fired a four-under 68 in the second round on Friday to lead by a stroke at Royal Park on 12-under 132.
Rock led playing partner and fellow Englishman Chris Wood (69) and Dutchman Joost Luiten (67) by one shot.
Italians Matteo Manassero (68), Francesco Molinari (68) and Lorenzo Gagli (66) were a further stroke back on 134 along with Frenchman Gregory Bourdy (68) and Britons Gary Boyd (65) and Rhys Davies (68).
Frenchman Victor Dubuisson carded a best-of-the-week 62 to finish in a group of players on 135.
Rock is looking to better three second places. One of those was a losing playoff in the 2009 Irish Open to Shane Lowry.
"It would be nice to get the monkey off my back next week," Rock told Reuters, "but being realistic to finally win a title this week would be great.
"It's been a long time on the European Tour only getting a very few opportunities to win."
A dramatic recent improvement in his putting has helped Rock qualify for the US Open and his performance on the greens was again good at Royal Park.
"I just want it to stay with me this week and next," he added. "I know my long game can stand up to it but I've been worried about the putter."
While Rock was delighted to be in pole position, Italian teenager Manassero was as gloomy as the thunderstorm which held up play for 80 minutes in the afternoon after missing a series of makeable putts on the drenched greens.
"It's really annoying being two behind. I left so many shots out there, at least six," said Manassero.
Rock and Wood had an exciting three-ball with Australian Marcus Fraser who produced a hole in one at the fourth.
"He also just missed out on a car for another hole in one at the 15th by about a foot," said Wood.
Think beyond the conventional
For Plus Two students who want to explore beyond the regular engineering courses, there are plenty of opportunities and unique courses offered by premier institutes.
Plus Two students face a series of entrance examinations from the day they complete their public examinations. Parents are a worried lot. What next? This is the biggest question. Is it not time to come out of the conventional mindset? The choice of courses must be left to students based on their aptitude.
In engineering, there are umpteen number of job-oriented courses beyond the conventional streams of civil, electrical, electronics and communication, chemical and mechanical.
Career prospects are bright in the following areas: petrochemical, fire engineering, safety, mining, textile, nanotechnology, biomedical engineering, design, fashion and space technology.
For mining, Indian school of Mines (ISM), Dhanbad (www.ismdhanbad.ac.in), should be the obvious choice. Established in 1926 and located in a mineral-rich belt of India, ISM is known for its unique expertise in Mining Engineering, though other branches of studies are also available there now.
The Central Electro Chemical Research Institute (CECRI), Karaikudi (www.cecri.res.in), established in 1953, is one of the largest electrochemical laboratories in the world and conducts UG, PG and research programme in the fields of electrochemical science and technology including nanotechnology.
National Fire Service College, Nagpur (www.nfscnagpur.nic.in), offers B.E. in Fire Engineering. Cochin University of Science and Technology (Cochin www.cusat.ac.in) also offers a Fire and Safety Engineering course.
There is an exclusive Institute for Petroleum in Dehradun. The Indian Institute of Petroleum Dehradun (www.iip.res.in), has state-of-the-art facility to impart courses related to petroleum and trains students to meet the industrial requirements.
Sree Chitra Tirunal Institute for Medical Sciences & Technology, Thiruvananthapuram (www.sctimst.ac.in), is an institute of national importance in the health care industry. It is known for fusion of medical science and technology. Doctors, engineers and health care scientists find suitable courses and openings in this institute.
The National Institute of Fashion Technology (www.nift.ac.in), a premier institute, has 15 centres in the country and offers B.Des. and B.F.Tech. (Apparel Production). It also offers courses in textile and leather design, technology, management and merchandising.
The National Institute of Design (www.nid.edu), Ahmedabad, is internationally acclaimed as one of the foremost multi-disciplinary institutions in the field of design education and research. As per the Business Week, USA, NID is listed as one of the top 25 European and Asian programmes in the world.
Indian Institute of Space Technology (www.iist.ac.in), Thiruvananthapuram, is Asia's first space institute and the first in the world to offer UG, PG, doctoral programmes with specific focus on space science, technology and applications. It offers B.Tech. (Avionics Engineering). ”
Plus Two students face a series of entrance examinations from the day they complete their public examinations. Parents are a worried lot. What next? This is the biggest question. Is it not time to come out of the conventional mindset? The choice of courses must be left to students based on their aptitude.
In engineering, there are umpteen number of job-oriented courses beyond the conventional streams of civil, electrical, electronics and communication, chemical and mechanical.
Career prospects are bright in the following areas: petrochemical, fire engineering, safety, mining, textile, nanotechnology, biomedical engineering, design, fashion and space technology.
For mining, Indian school of Mines (ISM), Dhanbad (www.ismdhanbad.ac.in), should be the obvious choice. Established in 1926 and located in a mineral-rich belt of India, ISM is known for its unique expertise in Mining Engineering, though other branches of studies are also available there now.
The Central Electro Chemical Research Institute (CECRI), Karaikudi (www.cecri.res.in), established in 1953, is one of the largest electrochemical laboratories in the world and conducts UG, PG and research programme in the fields of electrochemical science and technology including nanotechnology.
National Fire Service College, Nagpur (www.nfscnagpur.nic.in), offers B.E. in Fire Engineering. Cochin University of Science and Technology (Cochin www.cusat.ac.in) also offers a Fire and Safety Engineering course.
There is an exclusive Institute for Petroleum in Dehradun. The Indian Institute of Petroleum Dehradun (www.iip.res.in), has state-of-the-art facility to impart courses related to petroleum and trains students to meet the industrial requirements.
Sree Chitra Tirunal Institute for Medical Sciences & Technology, Thiruvananthapuram (www.sctimst.ac.in), is an institute of national importance in the health care industry. It is known for fusion of medical science and technology. Doctors, engineers and health care scientists find suitable courses and openings in this institute.
The National Institute of Fashion Technology (www.nift.ac.in), a premier institute, has 15 centres in the country and offers B.Des. and B.F.Tech. (Apparel Production). It also offers courses in textile and leather design, technology, management and merchandising.
The National Institute of Design (www.nid.edu), Ahmedabad, is internationally acclaimed as one of the foremost multi-disciplinary institutions in the field of design education and research. As per the Business Week, USA, NID is listed as one of the top 25 European and Asian programmes in the world.
Indian Institute of Space Technology (www.iist.ac.in), Thiruvananthapuram, is Asia's first space institute and the first in the world to offer UG, PG, doctoral programmes with specific focus on space science, technology and applications. It offers B.Tech. (Avionics Engineering). ”
Finally, an E coli answer: It was the sprouts
After a month of searching and testing thousands of vegetables, simple detective work trumped science in the hunt for the source of the world’s deadliest E. coli outbreak. The culprit: German-grown sprouts.
Health officials announced on Friday that sprouts from a farm in northern Germany caused the outbreak that has killed 31 people, sickened nearly 3,100 and prompted much of Europe to shun vegetables.
“It was like a crime thriller where you have to find the bad guy,” said Helmut Tschiersky-Schoeneburg, head of Germany’s consumer protection agency.
Health officials said they tracked the bacteria’s path from hospital patients struggling with diarrhea and kidney failure, to the restaurants where they had dined, to specific meals and ingredients they ate, and finally back to a single farm.
There are more questions to answer, including what contaminated the sprouts in the first place: Was it tainted seeds or water, or nearby animals? The answer is still elusive.
Still, it was little surprise that sprouts were the culprit. They have been blamed in least 30 food poisoning cases over the past 15 years in the U S and a large outbreak in Japan in 1996 that killed 11 people and sickened more than 9,000.
While sprouts are full of protein and vitamins, their growing conditions and the fact that they are mostly eaten raw make them ideal transmitters of disease. Cultivated in water, they require heat and humidity, precisely the same conditions E. coli needs to thrive. Sprouts have abundant surface area for bacteria to cling to and washing won’t help if the seeds themselves are contaminated.
“E coli can stick tightly to the surface of seeds used to grow sprouts and they can lay dormant on the seeds for months,” said Stephen Smith, a microbiologist at Trinity College in Dublin. Once water is added to make them grow, the bacteria can reproduce up to 100,000 times.
Interviews with thousands of patients, mostly women ages 20 to 50 with healthy lifestyles, led investigators to conclude initially that salads could be the problem. .
Health officials announced on Friday that sprouts from a farm in northern Germany caused the outbreak that has killed 31 people, sickened nearly 3,100 and prompted much of Europe to shun vegetables.
“It was like a crime thriller where you have to find the bad guy,” said Helmut Tschiersky-Schoeneburg, head of Germany’s consumer protection agency.
Health officials said they tracked the bacteria’s path from hospital patients struggling with diarrhea and kidney failure, to the restaurants where they had dined, to specific meals and ingredients they ate, and finally back to a single farm.
There are more questions to answer, including what contaminated the sprouts in the first place: Was it tainted seeds or water, or nearby animals? The answer is still elusive.
Still, it was little surprise that sprouts were the culprit. They have been blamed in least 30 food poisoning cases over the past 15 years in the U S and a large outbreak in Japan in 1996 that killed 11 people and sickened more than 9,000.
While sprouts are full of protein and vitamins, their growing conditions and the fact that they are mostly eaten raw make them ideal transmitters of disease. Cultivated in water, they require heat and humidity, precisely the same conditions E. coli needs to thrive. Sprouts have abundant surface area for bacteria to cling to and washing won’t help if the seeds themselves are contaminated.
“E coli can stick tightly to the surface of seeds used to grow sprouts and they can lay dormant on the seeds for months,” said Stephen Smith, a microbiologist at Trinity College in Dublin. Once water is added to make them grow, the bacteria can reproduce up to 100,000 times.
Interviews with thousands of patients, mostly women ages 20 to 50 with healthy lifestyles, led investigators to conclude initially that salads could be the problem. .
Tips to make your browser secure
MUNICH: Web browsers are the key to the internet. Without them the internet is an impenetrable black box.
Browsers may be among the most commonly used applications, but they also offer the greatest number of attack options for dangerous content on the net. To keep viruses, worms and other malware away from your computer when surfing, it's crucial to configure your browser for security.
The firewall on a DSL router is a good first step for protecting the computer during surfing, says Marco Rinne from the computer portal chip.de. But that doesn't hold true if your browser is out of date: “Internet Explorer 6 and 7 or Firefox 2 no longer satisfy current security standards,” he says. For optimal protection, he therefore urges users to keep their browsers updated.
There are numerous security tools already present in Firefox and Internet Explorer. The pop-up blocker, for example, prevents more than just annoying ads. It also throttles other windows that can be used to sneak malicious software onto PCs. Phishing filters protect personal data against theft.
Firefox offers additional configuration options under the Settings item in the Security tab of the Options dialog box: this includes the ability to block risky or forged websites. It's also a good idea to prohibit websites from installing add-ons on their own. Similar settings are possible under Internet Explorer in the Security tab of the Internet Options dialog box, accessible from the Tools menu.
Computer owners should also activate all options for warning against attacks, advises Markus Linnemann, managing director of the Institute for Internet Security (ifis) at the Polytechnic University of Gelsenkirchen in Germany. This applies in particular to warnings about suspicious content to be displayed using ActiveX, Flash, or JavaScript.
Yet the warning mechanism on most browsers alone isn't usually enough, Linnemann says. Those who wish to be especially careful can, for example, use the Firefox add-on 'No Script,' which blocks all active content of a website by default and allows the user to decide which should be permitted. The problem is that most users are unable to determine which content represents a threat to their computer, Rinne msays. http://timesofindia.indiatimes.com/tech/personal-tech/computing/Tips-to-make-your-browser-secure/articleshow/6118586.cms
Browsers may be among the most commonly used applications, but they also offer the greatest number of attack options for dangerous content on the net. To keep viruses, worms and other malware away from your computer when surfing, it's crucial to configure your browser for security.
The firewall on a DSL router is a good first step for protecting the computer during surfing, says Marco Rinne from the computer portal chip.de. But that doesn't hold true if your browser is out of date: “Internet Explorer 6 and 7 or Firefox 2 no longer satisfy current security standards,” he says. For optimal protection, he therefore urges users to keep their browsers updated.
There are numerous security tools already present in Firefox and Internet Explorer. The pop-up blocker, for example, prevents more than just annoying ads. It also throttles other windows that can be used to sneak malicious software onto PCs. Phishing filters protect personal data against theft.
Firefox offers additional configuration options under the Settings item in the Security tab of the Options dialog box: this includes the ability to block risky or forged websites. It's also a good idea to prohibit websites from installing add-ons on their own. Similar settings are possible under Internet Explorer in the Security tab of the Internet Options dialog box, accessible from the Tools menu.
Computer owners should also activate all options for warning against attacks, advises Markus Linnemann, managing director of the Institute for Internet Security (ifis) at the Polytechnic University of Gelsenkirchen in Germany. This applies in particular to warnings about suspicious content to be displayed using ActiveX, Flash, or JavaScript.
Yet the warning mechanism on most browsers alone isn't usually enough, Linnemann says. Those who wish to be especially careful can, for example, use the Firefox add-on 'No Script,' which blocks all active content of a website by default and allows the user to decide which should be permitted. The problem is that most users are unable to determine which content represents a threat to their computer, Rinne msays. http://timesofindia.indiatimes.com/tech/personal-tech/computing/Tips-to-make-your-browser-secure/articleshow/6118586.cms