China manufacturing at 11-month low; Cisco buys Sourcefire for $2.37bn; World cold to India retail policy

1 China manufacturing at 11-month low (BBC) China's manufacturing activity fell to an 11-month low in July, hurt by a decline in new orders, according to a preliminary survey by HSBC.  The bank's Purchasing Managers' Index (PMI) fell to 47.7 from 48.2 in June. The PMI is a key indicator of activity in the sector and a reading below 50 shows contraction. This is the third month in a row that the HSBC reading has been below that level.

The data comes amid fears of a slowdown in China's overall economy. Data released earlier this month showed that China's economic growth slowed in the April to June period, the second straight quarter of weaker expansion. The world's second biggest economy grew by 7.5% compared to the previous year, down from 7.7% in the January to March period.

China's manufacturing and export sectors have been key drivers of its economic growth over the past decades. However, demand for China's exports has slowed recently, especially from key markets such as the US and Europe as they grapple with slowing economic growth.

2 Cisco buys Sourcefire for $2.37bn (San Francisco Chronicle) Cisco has said that it reached a deal to buy computer network security company Sourcefire for about $2.37 billion in cash. Under the terms of the agreement, Cisco will pay $76 cash for each of the Columbia, Md.-based company's shares.

Cisco said the addition of Sourcefire will boost its own cybersecurity offerings and speed development of its security strategy of defending, discovering, and remediating advanced threats. The deal also includes the assumption of outstanding stock awards and retention-based incentives. The companies valued it at about $2.7 billion.

Sourcefire was founded in 2001 and went public in 2007. In 2012, its revenue jumped 35% to $223.1 million.

3 World cold to India retail policy (Rajesh Roy in The Wall Street Journal) India could ease its policy on foreign investment in the multibrand retail sector, as the country has yet to receive any firm proposals from overseas supermarkets about 10 months after it allowed them to set up operations.

The Department of Industrial Policy and Promotion, which is part of the Trade Ministry, has proposed several changes to the policy to attract investors in the sector. India lifted a ban on foreign investment in supermarkets in September, allowing foreign companies to own as much as 51% of local joint ventures.

The department has suggested that foreign supermarkets should be required to make a minimum investment of $50 million in supply-chain infrastructure such as cold storage and warehouses. When the government announced the policy, it had said foreign companies must make half of their total investment in supply-chain infrastructure. The department also has proposed that the cabinet lift a provision that bans foreign retailers from setting up stores in cities with populations of less than one million.

In September, when India opened up the multibrand retail sector, the government positioned the policy change as a landmark economic overhaul that had the potential to bring in much-needed foreign capital, help tame food-price inflation and modernize the country's logistics industries. But critics argue that the introduction of foreign supermarkets to the sector would erode business at 12 million traditional retail vendors. The main opposition Bharatiya Janata Party has threatened to reverse the decision if the party comes to power.

Foreign retailers such as Wal-Mart and Tesco had shown interest in India's retail sector, enticed by the country's highly fragmented $500 billion market. But they have become cautious amid the lack of political unanimity, as well as concerns over rules such as the compulsory investment in supply-chain infrastructure and a requirement to source at least 30% of the products they sell from small local industries.