27 Nov 2016

Japan plans world’s fastest supercomputer

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Presently, Sunway TaihuLight supercomputer, remains the world’s most powerful computer.

Japan plans to build the world’s fastest-known supercomputer in a bid to arm the country’s manufacturers with a platform for research that could help them develop and improve driverless cars, robotics and medical diagnostics.

The ministry of economy, trade and industry will spend 19.5 billion yen ($173 million) on the previously unreported project, a budget breakdown shows, as part of a government policy to get back Japan’s mojo in the world of technology. The country has lost its edge in many electronic fields amid intensifying competition from South Korea and China, home to the world’s current best-performing machine.

In a move that is expected to vault Japan to the top of the supercomputing heap, its engineers will be tasked with building a machine that can make 130 quadrillion calculations per second—or 130 petaflops in scientific parlance—as early as next year, sources involved in the project told Reuters.

At that speed, Japan’s computer would be ahead of China’s Sunway Taihulight that is capable of 93 petaflops. “As far as we know, there is nothing out there that is as fast,” said Satoshi Sekiguchi, a director general at Japan’s ‎National Institute of Advanced Industrial Science and Technology, where the computer will be built.

The push to return to the vanguard comes at a time of growing nostalgia for the heyday of Japan’s technological prowess, which has dwindled since China overtook it as the world’s second-biggest economy.

Prime Minister Shinzo Abe has called for companies, bureaucrats and the political class to work more closely together so Japan can win in robotics, batteries, renewable energy and other new and growing markets.

Deep learning

In the area of supercomputing, Japan’s aim is to use ultra-fast calculations to accelerate advances in artificial intelligence (AI), such as “deep learning” technology that works off algorithms which mimic the human brain’s neural pathways, to help computers perform new tasks and analyze scores of data.

Recent achievements in this area have come from Google’s DeepMind AI program, AlphaGo, which in March beat South Korean professional Lee Seedol in the ancient board game of Go.

Applications include helping companies improve driverless vehicles by allowing them to analyze huge troves of visual traffic data, or it could help factories improve automation. China uses the Sunway Taihulight for weather forecasting, pharmaceutical research, industrial design, among other things.

Japan’s new supercomputer could help tap medical records to develop new services and applications, Sekiguchi said. The supercomputer will be made available for a fee to Japan’s corporations, who now outsource data crunching to foreign firms such as Google and Microsoft, Sekiguchi and others involved in the project said.

The new computer has been dubbed ABCI, an acronym for AI Bridging Cloud Infrastructure. Bidding for the project has begun and will close on 8 December. Fujitsu Ltd, the builder of the fastest Japanese supercomputer to date—the Oakforest-PACS, capable of 13.6 petaflops, declined to say if it would bid for the project. The company has, however, said it is keen to be involved in supercomputer development.

Source: http://www.livemint.com/Science/tvHE1Qa3EshJdFSkiqCoxK/Japan-plans-worlds-fastest-supercomputer.html

19 Nov 2016

Philippines fastest-growing economy in developing Asia

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The Philippine economy grew at its fastest pace in three years last quarter, underscoring the nation’s resilience to global risks as investment surged and consumers spent more.

Gross domestic product increased 7.1% from a year earlier, the Philippine Statistics Authority said in Manila on Thursday. The median estimate of 15 economists surveyed by Bloomberg was 6.7%.

Compared with the previous quarter, GDP rose 1.2%, in line with economists’ estimates

Undeterred by risks such as Donald Trump’s protectionist ambitions and President Rodrigo Duterte’s rants against the US, the Philippine economy is set to expand more than 6% until 2018 to rank among the fastest-growing in the world, accordng to economists surveyed by Bloomberg.

Last quarter’s growth exceeded China’s 6.7% and Vietnam’s 6.4% in the same period. India, which posted growth of 7.1% in the second quarter, is yet to publish GDP data for the three months through September.

Gifted with a young population and backed by $50 billion of revenue from remittances and outsourcing, the Philippines is getting an additional boost from Mr Duterte’s $160-billion infrastructure plan aimed at creating jobs. Projects include at least $1 billion of contracts to build an airport and a railway to transform a former US military base into a commercial hub.

Philippine stocks rose a second day, climbing as much as 2.2%. They were up 1.1% as of 1101am in Manila.

The peso was little changed at 49.32 per dollar.

“Philippines will remain an outperformer in the region,” said Rahul Bajoria, a senior economist at Barclays Plc in Singapore. “It is domestically driven, with consumption holding up quite well and the fiscal spending being planned. The global risks we’re seeing including to trade won’t fundamentally alter its prospects.

“In the short term at least, we expect the economy will continue growing at a decent pace,” Gareth Leather, senior Asia economist at Capital Economics Ltd in London, said in a note. “The foundations are in place for growth to remain strong, but recent political events, both in the US and domestically, have made the outlook much less certain.”

“Putting money on infrastructure-related stocks is the smart bet and it’s exactly what I am doing,” said John Padilla, who helps manage about $9.1 billion at Metropolitan Bank & Trust Co, the Philippines third-largest money manager. “This growth poses now more challenge for President Duterte to keep the pace. It supports the view that Philippines needs infrastructure to sustain this growth.”

Household spending, which makes up about 70% of GDP, rose 7.3% from a year earlier. Government spending gained 3.1% and investment surged 20%.

Source: http://www.bangkokpost.com/news/asean/1137576/philippines-fastest-growing-economy-in-developing-asia

18 Nov 2016

Over 8,100 wilful defaulters owe Rs 76,685 crore to banks

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Public sector banks (PSBs) have reported 16 per cent rise in number of wilful defaulters at 8,167 who collectively owe them Rs 76,685 crore at the end of March 2016.

Public sector banks (PSBs) have reported 16 per cent rise in number of wilful defaulters at 8,167 who collectively owe them Rs 76,685 crore at the end of March 2016.

As against the previous year, there is 16 per cent rise in wilful defaulters owing over Rs 25 lakh each to 8,167 from 7,031 at the end of March 2015. However, dues to the bank have increased to 28.5 per cent to Rs 76,685 crore in 2015-16 from the earlier Rs 59,656 crore.

To recover loans from such defaulters, banks have filed 1,724 FIRs with a total outstanding of Rs 21,509 crore in 2015-16. The conviction rate in all these cases was only 1.14 per cent.

Last fiscal, banks recovery efforts in such cases yielded Rs 3,498 crore.

There were 129 wilful defaulters who borrowed loans in excess of Rs 100 crore amounting to Rs 28,525 crore from PSBs as on June 30, 2016, Minister of State for Finance Santosh Kumar Gangwar told the Lok Sabha in a written reply.

To bring down NPAs, he said, RBI has formulated guidelines for early recognition of financial distress for recovery from borrowers.

“Before a loan account turns NPA, banks are required to identify stress in the account under three sub-categories of Special Mention Account (SMA),” he said.

Banks are required to report credit information on borrowers having aggregate exposure of more than Rs 5 crore to Central Repository of Information of Large Credits (CRILC), he said.

“As soon as an account is reported by any of the lenders to CRILC as SMA-2, Joint Lenders’ Forum (JLF) is to be mandatorily formed if the aggregate exposure of lenders is more than 100 crore,” he said.

In a separate reply, Gangwar said banks have seized property worth Rs 64,519 crore during 2015-16 as against Rs 54,060 crore in the previous fiscal.

These properties were seized by invoking the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

Source: http://www.financialexpress.com/industry/banking-finance/over-8100-wilful-defaulters-owe-rs-76685-crore-to-banks/449342/

11 Nov 2016

PM Narendra Modi, Shinzo Abe sign landmark India-Japan Civil Nuclear Deal

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Prime Minister Narendra Modi, today met with Japan Prime Minister Shinzo Abe and signed the Civil Nuclear Deal between India and Japan. PM Narendra Modi, after signing the deal said, “Our strategic partnership is not only for the good & security of our own societies. It also brings peace, stability & balance to region.” PM Modi added, “I wish to thank Prime Minister Abe for the support extended for India’s membership  of the Nuclear Suppliers Group.”

This move comes after six years of negotiation. After the Fukushima Nuclear Power Plant disaster, the nuclear deal negotiations were halted due to political resistance in Japan.

After many years, the deal was signed today on November 11. This nuclear treaty will bring Japan’s export nuclear technology to our country, and it will be a necessary step towards India’s nuclear deals with the US, France and other countries.

Soon after hitting the demonetization masterstroke in India, Prime Minister Narendra Modi left for his second visit to Japan in order to seal the civilian nuclear deal between the two countries. This is Modi’s fourth visit to Japan over the last decade (twice as PM and twice as Gujrat Chief Minister).

Soon after landing in Japan, Modi tweeted, “Reached Japan. Looking forward to fruitful deliberations that will boost economic and cultural ties between India and Japan.”

Statement from the Press:

Commenting on the issue, a top Japanese government official said, “Terrorism, which has been an outlier subject in Japan’s national discourse, was brought closer home in July, when seven of our own — five men and two women, who were associated with the Japan International Cooperation Agency — were killed in a terrorist attack in Dhaka.

Both the countries are expected to sign around 10 different agreements which highlight issues like skill development, culture etc. Nevertheless, the prime focus of this meet was the possible signing of the civilian nuclear deal that was initiated in June 2010 but got stuck after the Fukushima disaster in December 2015.

Commenting on the possible signing of the deal, Kumao Kaneko, a former Japanese diplomat and negotiator on nuclear issues, said that the NTP has been a treaty of “convenience and expediency”. Though India adheres to NPT principles, but has not inked the treaty yet. By signing the agreement, Japan is doing the correct thing, however, the Abe government will have to work hard in the Diet (Japan’s parliament) to get the naysayers on board.

Source: http://www.financialexpress.com/world-news/pm-narendra-modi-shinzo-abe-sign-india-japan-civil-nuclear-deal/443823/

11 Nov 2016

Rs 500, Rs 1000 notes ban: A bonanza that can help govt to recapitalise banks

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If those with black money do not convert all their R500/1,000 notes to new ones for fear of the taxman discovering their hoards, the government could reap a rich bonanza.

 

Assume that, of the R14 lakh crore worth of R500/1,000 notes, R2 lakh crore are not converted, but are burned. With R2 lakh crore less of currency to redeem, RBI’s currency liabilities will reduce by this amount.

 

This effectively allows the central bank to print a broadly similar amount of fresh money without it affecting anything.

 

This can, theoretically, be parked in a contingency fund and later transferred to the profit and loss account and, over a period of time, given to the government — effectively then, the government can get a windfall to recapitalise banks.

 

This is what the chief economic advisor meant when he said, on Thursday, that the demonetisation could be seen as a transfer of black assets from private individuals to the government — the size of the transfer depends on how much currency is not converted and that, in turn, depends on the size of the black economy.

The accounting operation, of course, is a technical one and involves reducing the asset side of RBI’s balance sheet to match the reduction in the liabilities side — this is done by increasing the ‘net non-monetary liabilities’ which, since they appear on the assets side, will appear with a negative sign

(see graphic for details of RBI balance sheet).

 

 

Source: http://www.financialexpress.com/industry/banking-finance/rs-500-rs-1000-notes-ban-can-bonanza-help-govt-to-recapitalise-banks/443393/

10 Nov 2016

Demonetisation move negative for near term economic activity: Goldman

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The government’s announcement to demonetise Rs 500, Rs 1,000 notes to curb black money is positive for banking system liquidity but is negative for near term economic activity, says a report.

“The announcement to curb informal circulation of money is likely to be positive for banking system liquidity as well as medium-term fiscal resources and financialization, but negative for near-term economic activity,” Goldman Sachs said in a report released today.

The report said from an economic standpoint, this reform is likely to have material implications across money supply, consumption spending, fiscal policy and eventually inflation.

The pace of increase in currency in circulation had risen significantly over the past year to 17.3 per cent yoy in October 2016, contributing to nearly 20 per cent of the overall increase in money supply over the same time period.

“With individuals depositing their cash at bank accounts, we think M3 growth is likely to switch away from currency into bank deposits over the next month,” it said.

Nearly 10 per cent of total household financial assets are held in currency, higher than those held in equities and debentures.

It said the reform is a positive step over the medium-term as it increases transparency, accountability and shifts more transactions through electronic mediums and the banking system.

The undeclared cash when exchanged at banks over the next few months with an associated identity card, may be tracked by tax authorities and help increase the tax base of the economy, which is currently running below the regional average.

“This could help the government bring the fiscal deficit down to 3 per cent in the financial year 2017-18 from the budgeted 3.5 per cent in in the financial year 2016-17.”

The report said over the medium term, as more transactions take place via the banking system, the RBI should be able to bring the banking system liquidity to net neutrality more smoothly and consequently improve the effectiveness of monetary transmission.

From the growth perspective, the reduction in currency in circulation is likely to be negative for short-term consumer discretionary spending.

In particular, cash-heavy sectors such as jewellery, restaurants, food and beverages, transport, among others are likely to witness a drop in sales.

These sectors account for nearly 50 per cent of overall household spending. This places some downside risks to near-term growth, in our view.

Gold import demand is also likely to be impacted as a result of reduced end-consumer jewellery demand.

It said from the markets perspective, these measures should be positive for the rupee bond market.

Source: http://economictimes.indiatimes.com/articleshow/55355362.cms

8 Nov 2016

With GST on its way, India rises to second spot on global biz optimism index

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India improved its ranking by one spot in a global index of business optimism, with policy reforms and Goods and Services tax (GST) expected to become a reality soon, says a survey.

According to the latest Grant Thornton International Business Report, India was ranked second on the optimism index during the third quarter (July-September 2016).

Indonesia took the top spot, with the Philippines coming in third.

India was ranked third during the April-June period after being on top for two consecutive quarters.

“The improvement in the optimism ranking in the recent past clearly reflects that the reform agenda of the government and its efforts on improving the climate for doing business are having an impact,” Grant Thornton India LLP Partner – India Leadership Team Harish H V said.

High business optimism was also complimented by the rise of employment expectations. India regained its top position on this parameter, from second position in the April-June period, while profitability expectations also moved up.

“…all the programs and initiatives of the government as well as its focus on building relationships with all major economic powers has made India a bright spot in the global economy,” Harish said, adding the recent push for GST augurs well and should give a further boost to business optimism.

While India continues to be amongst the top five countries citing regulations and red tape as a constraint on growth, for the first time in the year, the country’s ranking on this parameter has dropped from second to fourth.

As per the survey, 59 per cent of the respondents have quoted this as an impediment in the growth prospects compared to 64 per cent in the previous quarter.

The report is prepared on the basis of a quarterly conducted global business survey of 2,500 businesses across 36 economies.

Meanwhile, in terms of revenue expectations, India slipped to third position from top in the previous quarter.

In spite of the downturn, India is much ahead of China where only 30 per cent respondents expect an increase in revenue, whereas in India, 85 per cent respondents have voted in favour of increasing revenue.

The survey further noted that 68 per cent of respondents have voted for an upsurge in selling prices. On this parameter too, China lags India with only 10 per cent of respondents expecting an upsurge in selling prices. The global average is 19 per cent.

Globally, business optimism stands at net 33 per cent, rising 1 percentage point from the previous quarter but falling 11 percentage points over the year.

“Political events such as Brexit and the US presidential election understandably rattle the global economy and test the resilience and elasticity of businesses worldwide. In general, businesses do not like uncertainty, and that is what is happening,” Grant Thornton Global CEO Ed Nusbaum said.

Source : http://economictimes.indiatimes.com/articleshow/55277143.cms