Jobless rate in Eurozone at record high; China's asset hunt; India and the world's tallest statue

1 Jobless rate in Eurozone at record (Jack Ewing in The New York Times) The economic recovery in the euro zone is feeble. Employment continues to suffer. And the patient is likely to be getting around on crutches for months if not years to come. That was essentially the prognosis from two key economic indicators published this week and from economists assessing the latest conditions. The number of people out of work in the countries using the euro currency rose slightly in September, while inflation fell more than expected — both signs of a weak economy.

Neither indicator necessarily contradicts other more positive economic news recently, notably an end to the recession in Spain. But the data, which showed euro zone unemployment stuck at a record high of 12.2 percent and inflation at its lowest level in four years, served as a reminder that a long convalescence lies ahead for Europe. 

The unemployment rate is an especially critical economic indicator in Europe. Years of austerity and joblessness have fed radical political parties and strained democracy throughout the euro zone. The longer that record unemployment persists, the harder it will be for political leaders to contain discontent and push through changes in labour regulations and other rules that are needed for the region to grow more strongly. 

The jobless rate was the same as August’s, which was revised up to 12.2 percent from 12 percent. But the absolute number of jobless people in the 17 countries in the euro area rose by 60,000 to a total of about 19.5 million, according to Eurostat.  Employment often takes a long time to respond in an upturn. Ms. Diron, the Ernst & Young adviser, said it could be six months or more before euro zone unemployment started to fall, because companies first try to extract more production out of existing employees before they hire new ones. 

There remains a huge gulf between economic performance in Austria and Germany, which had the lowest unemployment rates, and Greece and Spain, which had the highest. Unemployment in Austria was unchanged at 4.9 percent in September, and in Germany the rate fell to 5.2 percent from 5.3 percent. 

http://www.nytimes.com/2013/11/01/business/international/jobless-rate-in-europe-stays-at-record-12-2.html?ref=business

2 China's asset hunt (Khaleej Times) Cash-rich Chinese business groups are increasingly being seen as saviours by not just African nations eager for fresh investments, but even by Western governments, bankers and businesses, who are welcoming both state-owned and private entities with open arms. Governments and domestic business groups around the world have traditionally eyed foreign investors with suspicion. But the continuing economic slowdown, especially in Europe, has led to a sea change in the attitude of many towards organisations (including corporates, sovereign wealth funds and private equity funds) with deep pockets.

The biggest beneficiaries of this gradual change in perception have been Chinese firms. According to the Heritage Foundation, a US-based conservative think tank, China’s outbound investments have shot up from a mere $10 billion in 2005 to a hefty $42 billion in the first six months of 2013. China’s foreign investments are expected to top $170 billion in just four years, making it the world’s second-largest foreign investor after the US, overtaking even Japan.

While conservatives in the US and Europe fear the ‘takeover’ of  Western assets by the Communist Party of China  (which is seen as the ultimate owner of its state-owned conglomerates), many Western leaders are laying out the red carpet for these firms. Britain’s Treasury chief George Osborne, who recently wrapped up a visit to China, even offered to allow Chinese companies acquire majority ownership in nuclear power projects in the UK. Britain is eager for Chinese firms to invest in infrastructure projects and even in the country’s banking sector.

Sitting atop a humungous pile of foreign exchange — its reserves shot up by a whopping $163 billion in the third quarter of this fiscal, touching a record $3.66 trillion — China is busy investing in assets around the globe. The Asian giant initially invested in acquiring energy and mining assets in Africa and Latin America, but with declining returns on its cash pile, its appetite for Western stocks, corporate debt and real estate has grown enormously.

http://khaleejtimes.com/kt-article-display-1.asp?xfile=/data/editorial/2013/November/editorial_November2.xml&section=editorial

3 India and the world's tallest statue (BBC) Work has begun in India on what is billed as the "world's tallest statue" after Chief Minister Narendra Modi laid the foundation stone in the western state of Gujarat. The statue of Sardar Vallabhbhai Patel, one of India's independence heroes, is being erected on a river island. At 182m (597ft), it would be twice as high as New York's Statue of Liberty. 

But critics say the statue's 20.63bn-rupee ($336m) price tag is much too expensive. The memorial would be called the "Statue of Unity". Officials say the statue is expected to be ready in 42 months. Thursday is Patel's 138th birth anniversary. Sardar Patel, generally called the "Iron Man of India", played a major role in the country's fight for independence from British rule. He was a close friend and ally of Mahatma Gandhi and became the first home minister of independent India.

Correspondents say the statue is viewed as a direct challenge by Mr Modi, the prime ministerial candidate for India's main opposition Bharatiya Janata Party (BJP), to appropriate the mantle of Patel, who was associated with the governing Congress party. Earlier this week, Mr Modi said that Patel would have been a much better choice than Jawaharlal Nehru as India's first prime minister. The comment was seen as a dig at the country's Nehru-Gandhi dynasty, led by Congress party chief Sonia and her son Rahul, who are descended through Nehru. The family has ruled for most of India's post-independence history.

Narendra Modi is a controversial figure who has been credited for bringing prosperity and development to the state of Gujarat but who has also been accused of complicity in some of the worst religious riots in recent Indian history. Mr Modi has always denied any wrongdoing.

http://www.bbc.co.uk/news/world-south-asia-24753802