Cement giants discuss mega merger; UK new car sales at 10-year high; South Korea's struggle with suicides

1 Cement giants discuss mega merger (BBC) The world's two largest cement makers are in advanced talks to merge into a company that would have a stock market value of more than $30bn euros. A deal between France's Lafarge and the Swiss Holcim group would be the industry's biggest ever merger. However, the proposed tie-up could face a lengthy competition inquiry from regulators as the new company would be dominant in Europe and the US.

In statements on Friday, the companies emphasised that no agreement had yet been reached, and that there was no guarantee of a deal. But they pointed to a "strong complementarity" and "cultural proximity" between their operations. A merger would allow the companies to cut costs, trim debt and reduce the sector's global overcapacity. Although the firms have overlapping operations in Europe, Lafarge is strong in Africa and the Middle East, whereas Holcim is almost absent. Holcim is strong in Latin America, where Lafarge is not established.

http://www.bbc.com/news/business-26896155

2 UK new car sales at 10-year high (Julia Kollewe in The Guardian) New car sales leapt in March to record their biggest month in a decade, fuelled by demand for the new 14 registration plate. The Society of Motor Manufacturers and Traders said new car registrations, a proxy for sales, rose 17.7% to 464,824 last month. Since the move to twice-yearly plate changes in 1999, only March 2004 saw higher registrations, of 466,954.

The society's chief executive, Mike Hawes, said "Given the past six years of subdued economic performance across the UK, there is still a substantial margin of pent-up demand that is contributing to a strong new and used car market. We expect the market to continue to perform positively for the rest of the year, albeit at a more modest rate." Sales for the first three months of 2014 stood at 688,122, up 13.7% from the same period last year.

Howard Archer, the chief UK and European economist at IHS Global Insight, described the figures as "extremely good news for the car industry and a significant boost to first-quarter growth prospects for the overall economy".

http://www.theguardian.com/business/2014/apr/04/new-car-sales-march-growth

3 South Korea's struggle with suicide (Young-ha Kim in The New York Times) As the author of the novel “I Have the Right to Destroy Myself,” I’m often asked why I think South Korea’s suicide rate is so high. The protagonist in my story is a professional “suicide counselor” who is hired to help clients plan and execute their own deaths. I started writing the novel in 1995, a time when South Korea’s annual rate of suicide was much lower than the average of the other industrialized nations. But it soared in the wake of the 1997 Asian financial crisis — and it has been getting worse ever since. 

When the novel was published in 1996 no one, including me, would have thought that suicide could become such a scourge. South Korea has had the highest suicide rate in the industrialized world for eight consecutive years; 14,160 people committed suicide in 2012, an average of 39 people per day and a 219 percent increase from the 6,444 suicides in 2000. It’s the No.1 cause of death for people between the ages of 10 and 30. For people in their 40s, suicide is the second most common cause of death, after cancer. Among the older generations, the numbers are even more bleak. 

According to research by the department of Family Medicine at Hallym University, some 60 percent of people who attempt suicide are suffering from depression. Yet too many people in South Korea have outdated views of psychological illness. Many people who seek psychiatric treatment are afraid of doctors keeping records. 

Satisfactory explanations for the root causes of the epidemic are hard to come by. For the elderly, many analysts cite the breakdown of the traditional family unit, and the poor economy. Among the youth, the pressure over college entrance examinations is often blamed. And for the middle-aged, it’s uncertainty about the economy. But no matter what the age, too many South Koreans see suicide as a viable escape from the stresses of modern life. That attitude has to change. 

On the national level, the government is starting to address the problem. But the effort is still too weak: The total national budget for suicide services is close to $7 million. By comparison, Japan spends more than $130 million on suicide programs, and they have seen strong results for their efforts. Today, I could never write a suicide-filled novel like “I Have the Right to Destroy Myself.” I would be too afraid of inspiring others to kill themselves. I look forward to the day when a writer like me can once again comfortably use suicide as the stuff of fiction. 

http://www.nytimes.com/2014/04/03/opinion/south-koreas-struggle-with-suicide.html?src=rechp&_r=0

Interest rates to stay at historic lows; Why Apple won't be what it was under Steve Jobs; India's female kingmakers

1 Interest rates likely to stay at historic lows (Phillip Inman in The Guardian) A slower-than-expected recovery across the global economy will keep interest rates in rich countries at historic lows for several years, the International Monetary fund has warned in its World Economic Outlook. Interest rates will rise gently over the next couple of years in response to higher GDP growth, but will likely be pegged back by a stuttering performance by Europe and slower growth in China, the Washington-based organisation said.

The gloomy diagnosis will dismay savers, who have seen the value of their savings whittled away by inflation since the financial crisis. Savers are seen as the big losers from the financial crash, which forced central banks to slash rates to almost zero to prevent commercial and residential borrowers from going bust in large numbers. The IMF blamed the Asian savings glut alongside a longstanding demand for safe haven assets and a lack of investment opportunities, especially in the developed world for the persistence of low interest rates across the world.

It said that while the 2008 financial crisis had exacerbated the problem, low interest rates stretched back 30 years and many of the fundamental drivers will remain in place when the crisis is a distant memory. It has been known for many years that the accumulated savings of Asian workers, western pension savers and the oil rich countries in the Middle East have outstripped the capacity of the world economy for investment. Many economists have highlighted how savers cannot find enough productive industries in which to invest and have increasingly come to rely on buying government bonds to supply an income.

http://www.theguardian.com/business/2014/apr/03/imf-slow-economic-recovery-interest-rates-historic-lows

2 Why Apple won't be what it was under Steve Jobs (Richard Feloni in San Francisco Chronicle) Former Wall Street Journal reporter Yukari Iwatani Kane caused quite a stir in the Apple blogging world with her book, " Haunted Empire: Apple After Steve Jobs". It paints a picture of a company settling into a kind of ideological stasis since the death of its revolutionary leader.

Apple under Steve Jobs had an unparalleled run of success. From the iPod to the iPhone to the iPad, Jobs was almost perfect in his product delivery. But nothing lasts forever. At some point a company runs out of ideas, or the competition improves, or its execution comes up short. Apple was going to bump up against the law of averages even with Jobs around. With him gone, it's going to be even harder to continue its excellence.

Kane quotes Harvard Business School professor Gautam Mukunda, who explains that not even Apple is immune to what he calls "business physics." Mukunda's theory is that businesses cannot grow forever, and that at some point they have to plateau. Jobs transformed Apple from a has-been into a giant by introducing the world to brilliantly designed and revolutionary products and marketed them on stage with mesmerizing presentations that only he could deliver. Now, under the leadership of CEO Tim Cook, Mukunda said: "Apple can be an excellent ordinary company or a genuinely extraordinary one. But it can't be both."

Of course, Apple is far from doomed. It has $146 billion in cash. It's not going to suddenly have to shut down operations. But, if it goes sideways like Kane predicts, it will be as good as done. In the technology industry, if you're not making giant moves, you're as good as toast.

http://www.sfgate.com/technology/businessinsider/article/Here-s-Why-Apple-Will-Never-Be-What-It-Was-Under-5374048.php

3 India's female kingmakers (Dawn) The makeup of India’s next government could lie in the hands of a trio of women who command a massive following in their regional heartlands, including a populist former movie star known as “Mother” to supporters. Known more for their charisma than policies, Jayalalithaa Jayaram, Mamata Banerjee and Mayawati are likely to play pivotal roles in coalition negotiations, after India’s marathon general election which begins Monday.

Narendra Modi is the frontrunner but his party is not expected to win an outright majority, underlining the growing support for regional parties. It is now three decades since any party won more than 50 percent of seats in parliament. In particular, analysts say Jayalalithaa, chief minister of Tamil Nadu state, could play the role of kingmaker for Modi after telling her supporters it is time for a change in New Delhi.

If Jayalalithaa is the queen of the south, Banerjee and her Trinamool Congress party rule the roost in West Bengal and its capital Kolkata. Her decision to pull her 18 lawmakers out of the national coalition in 2012 over cuts in fuel subsidies left the Congress-led government reeling. This time round, Trinamool’s share of West Bengal’s 42 seats is expected to be nearer 30. Known as Didi (“Elder Sister”), analysts say it is hard to guess which way Banerjee will jump after results on May 16.

While Banerjee is seen as a big sister, Mayawati is known as the “Dalit Queen” or “Behenji” after a colourful career as champion of India’s lower caste dalits — former untouchables. Mayawati, whose Bahujan Samaj Party (BSP) has 21 seats in the current Lok Sabha, says India will be “ruined” if Modi comes to power. But she has previously cut a deal with the BJP which enabled her to be chief minister of Uttar Pradesh, India’s largest state.

N. Sathiya Moorthy, a Chennai-based analyst at the Observer Research Foundation, said the three women had much in common. “Definitely their image, their fighting spirit, their charisma, and their administrative skills to a great extent, have left them in good stead across the board when it comes to voting.”

http://www.dawn.com/news/1097283/amma-didi-behenji-indias-female-kingmakers

IMF fears 'years of sub-par growth'; Germany approves first minimum wage; Russia leads shopping mall building resurgence; India's geriatric politicians; Amazon leads in home entertainment

1 IMF fears 'years of sub-par growth' (BBC) The global economy could be heading for years of "sub-par growth", according to the head of the International Monetary Fund. Christine Lagarde warned that without "brave action" the world could fall into a "low growth trap". She said the global economy would grow by more than 3% this year and next, but that market volatility and tensions in Ukraine posed risks. Ms Lagarde also urged more action to tackle low inflation in the eurozone.

She called on the European Central Bank (ECB) to pursue "more monetary easing, including through unconventional measures".  She added, "There is the emerging risk of what I call 'low-flation', particularly in the euro area". "A potentially prolonged period of low inflation can suppress demand and output, and suppress growth and jobs."

The IMF's managing director said that global economic signs were positive overall, but that "without sufficient policy ambition, the world could fall into a medium-term low-growth trap". She called for governments to reform labour markets to encourage job creation, and for more public investment such as transport and communications networks in rich and emerging countries.

http://www.bbc.com/news/business-26861903

2 Germany approves first minimum wage (BBC) German Chancellor Angela Merkel has approved the country's first minimum wage, at 8.50 euros an hour ($11.75), to start in 2015. At the moment, the country is one of seven in the 28-nation EU without a minimum wage level. Germany has relied on trade unions and business groups to fix pay instead. Mrs Merkel's conservative Christian Democrats approved the change as part of a power-sharing deal with the Social Democrats (SPD).

Parliament is expected to debate the proposal this summer. It will then move to the upper house for approval in September. Economists said higher wages in Europe's biggest economy could help people spend more and stimulate the economy, promoting economic growth. The SPD's labour market policy spokesperson, Katja Mast, said: "Labour has got its dignity back with a fair payment of 8.50 euros, whether in the East or West and with no industry exceptions."

 

But the wage does not cover minors, interns, trainees or long-term unemployed people for their first six months at work. Some employers, such as those using temporary or seasonal, workers, will have two years to phase in the new minimum wage. For the rest of Germany's employers, the regulations will come into effect on 1 January 2015. The wage will be reviewed annually from 1 January 2018. 

http://www.bbc.com/news/business-26851906

3 Russia leads shopping mall building resurgence (Julia Kollewe in The Guardian) Russia is spearheading a resurgence of mall building across Europe, with nearly 100 new shopping centres springing up in the space of a little over two years, according to a new report. Across Europe there were 110 new malls, 44 of them in Russia, which is expected to get a further 50 by the end of 2015.

The rash of new developments means Russia is poised to overtake the UK as the country with the second-most mall space in Europe by the end of this year. Holding the largest development pipeline, Russia may even contend for the top spot – eclipsing France – should most of the projects come good.

http://www.theguardian.com/business/2014/apr/02/russia-leads-shopping-mall-building-resurgence-europe

4 India's geriatric politicians (Neeta Lal in Khaleej Times) Should politicians have a retirement age? With general elections looming large on the horizon, this question is currently engaging the world’s largest democracy. The proponent of the idea – senior minister of India's ruling United Progressive Alliance (UPA) Jairam Ramesh – has advocated that all those holding political offices should retire at 70 years, and segue gracefully into playing an advisory role.

Perhaps the minister had his own party – the 127-year-old Indian National Congress – in mind while making the suggestion. The Congress creaks with pensioners. From prime minister Manmohan Singh (who is 81) to Rishang Keishing, 94, four times chief minister of Manipur, this is one geriatric club. In fact the average age of the UPA ministerial Cabinet is 66 years, the oldest in the world! For this, the dynastic tendencies of the entrenched Congress party leadership – which has dominated the Indian political landscape for over a century -- is mainly to blame. 

The elderly are clogging other political formations as well. Lal Krishan Advani of the Opposition BJP is 88. Other BJP stalwarts – Rajnath Singh, Arun Jailtely and Sushma Swaraj -- are all sexagenarians. Narendra Modi, 63, is being touted as the `young face’ of his party. In a country where 50 per cent of the population is below the age of 24 years, having aged leaders is a serious liability. For a young and vibrant democracy, politicians need to be in sync with its citizenry’s thoughts. This breathes fresh new ideas and enthusiasm into governance and administration.

The moot point is: If a retirement age is applicable to top government and private officials, and even Supreme Court judges, why not politicians? Age limits exist for a reason: to encourage the induction or ascension of new talent, weed out the potential for entrenched privilege, and ensure that the leadership reflects the changing times. All excellent reasons why it’s time to impose a retirement age on India’s silver-haired politicos. Besides, retirement from active politics doesn’t mean you have to stop serving the people. The Hindu philosophy divides life into four periods. A 75-year-old, in his Vanprastha period, is expected to devote himself to serving the society, without looking for profit. 

http://www.khaleejtimes.com/kt-article-display-1.asp?xfile=data/opinion/2014/April/opinion_April4.xml&section=opinion

5 Amazon leaps into home entertainment (Jennifer Saba & Deepa Seetharaman in Sydney Morning Herald) Amazon has made a play for the increasingly crowded home entertainment arena by unveiling a set top box that allows streaming of online video content in the US. The Amazon Fire TV device ($99) device runs Google's Android operating system and will offer Netflix, Hulu and other streaming channels in addition to the company's own service, Amazon Prime.

The announcement comes as the online retailer faces increasing pressure to boost its bottom line after years of furious growth. The device is one of several initiatives by Amazon, one of the world's largest online retailers. It is investing heavily in building centres worldwide to expand its same-day delivery service. Earlier this week, Amazon approved six original television shows. If Fire TV takes off, it could shape the way consumers shop online. Fire TV viewers may eventually be able to use their remote to buy a product directly off a commercial, analysts said, as Amazon's multimedia and online retail businesses become more integrated.

Tech leaders such as Microsoft and Apple are vying for space on the TV, the traditional family entertainment centre and where people used to spend most of their leisure time. That has changed with the advent of the smartphone and tablet. While the company tried to one-up existing streaming boxes with voice-activation and games, some remained doubtful the Fire TV will make waves.

http://www.smh.com.au/digital-life/digital-life-news/amazon-leaps-into-home-entertainment-with-fire-tv-20140403-zqq06.html

China manufacturing stays weak; Why Europe's young aren't rioting any more; In three years, 150,000 dead in Syria; How India's Left has fallen off the radar

1 China manufacturing stays weak (BBC) Official data from the Chinese government showed that manufacturing expanded slightly in March. A final reading of the official purchasing managers' index (PMI) was 50.3 in March, up from an eight-month low of 50.2 in February. Any reading above 50 indicates expansion. However, a separate survey by HSBC and Markit saw a contraction in Chinese manufacturing activity, with a reading of 48.0 - the lowest since July. The figures underscore a growing concern among investors, analysts and government officials that the Chinese economy is slowing.

Last week, China's premier Li Keqiang acknowledged that there were "difficulties and risks", as rising debt and ongoing pollution problems cloud China's economic outlook. Separately, a long-awaited tax increase took effect in Japan on Tuesday. It is the country's first tax increase since 1997.The move, which will see sales tax rise from 5% to 8%, is intended to combat the country's rising debt as its population ages. Prime Minister Shinzo Abe has said the move is necessary, even though many analysts have warned it could lead to a slowdown in the world's third-largest economy.

http://www.bbc.com/news/business-26830391

2 Why Europe's young aren't rioting any more (Costas Lapavitsas & Alex Politaki in The Guardian) In 2008, young people were at the forefront of protests in Greece, a country with a long tradition of youth participation in social and political movements. Several commentators at the time spoke of a "youth rebellion". In late 2009 it became clear that Greece had been living through a period of false prosperity and was in effect bankrupt. The country fell into the tender embrace of the troika – the EU, the IMF and the European Central Bank.

Then there was nothing. As economic and social disaster unfolded in 2012 and 2013, the youth of Greece became invisible in social and economic life. The young have been largely absent from politics, social movements and even from the spontaneous social networks that have dealt with the worst of the catastrophe. On the fifth anniversary of the events of 2008, barely a few hundred young people demonstrated in Greek urban centres. There was no tension, no passion, no spirit, just tired processions repeating well-known slogans. Where were the 17-year-olds from five years ago?

Similar patterns can be observed in several other European countries, though perhaps not as extreme. Where are the youths of Portugal, France and Britain? The answer seems to be that the European youth has been battered by a "double whammy" of problematic access to education and rising unemployment, forcing young people to rely on family support and curtailing their independence. Uncertain about the future, worried about jobs and housing, the youth of Europe shows no confidence and trust in established political parties. The left, traditionally a home for the radical strivings of young people, has lost its appeal.

The double whammy appears to have sapped the rebellious energy of the young, forcing them to seek greater financial help from parents for housing and daily life. This trend lies at the root of the current paradox of youth in Europe. There is little extreme poverty, and the young are relatively protected and well-trained, but their labour is not valued, their dreams of education are denied and their independence is restricted.

Frustration is mounting among both young people and their parents. But if those who make policy refuse to acknowledge the problem, major change could be delayed for a long time. The result would be a massive accumulation of sullen anger across Europe, with unpredictable outcomes. Those who care for social development had better take notice.

http://www.theguardian.com/commentisfree/2014/apr/01/europe-young-people-rioting-denied-education-jobs

3 In three years, 150,000 dead in Syria (Johannesburg Times) More than 150,000 people have been killed and more than a half million wounded in Syria's three-year conflict, which has also displaced millions of people and devastated the economy. The Syrian Observatory for Human Rights said on April 1 that at least 150,344 people had been killed since March 2011 on both sides of the conflict. The toll from the Britain-based group, which relies on a network of contacts inside Syria, includes 51,212 civilians, among them 7,985 children.

At least half a million more people have been wounded, according to the International Committee of the Red Cross. The Observatory says 17,000 people are missing and "tens of thousands" are held in regime prisons. The United Nations now identifies Syrians as the world's largest refugee population, with the UN High Commissioner for Refugees saying 2.6 million Syrians have registered as refugees in neighbouring countries in the Middle East. More than 992,000 of them are in Lebanon. Another 6.5 million have been displaced within Syria itself.

According to the United Nations the situation is "critical," with 40 percent of hospitals destroyed and 20 percent of the others not functioning properly. Syria's economic output has fallen by around 45 percent, while the local currency has lost 80 percent of its value. Oil minister Suleiman al-Abbas said in mid-February oil production has plunged by 96 percent since the start of the uprising.

http://www.timeslive.co.za/world/2014/04/01/150000-dead-in-syria-s-three-year-conflict

4 How India's Left has fallen off the radar (Jawed Naqvi in Dawn) Where is India's left today? The last we heard, the communists were seeking a tie-up with Tamil Nadu Chief Minister Jayalalitha. The former movie star is expecting to sweep the polls in her state. Not only did Jayalalitha dissolve the short-lived bonding with the left in Tamil Nadu, she heaped humiliation on them by dialling up their bête noire in West Bengal, the state’s Chief Minister Mamata Bannerji.

Someone asked Aam Aadmi Party leader Arvind Kejriwal whether he would try to forge an alliance with Jayalalitha. “Were there no corruption charges against her?” he asked, in the process subtly underscoring his own watchword of probity. That’s how the left used to speak of bourgeois politics; not any more though. They have generally had a very good assessment of the pervasive opportunism their regional allies from previous experiments have gone on to embrace.

Perhaps that’s why the Communist Party of India-Marxist, the principal vanguard of the Left Front, is chary of holding forth about a third alternative this time around. Yet they have the closest of ties with the Samajwadi Party, which had replaced the left in the UPA II after supporting a civilian nuclear deal with the US. The Samajwadis stirred the communal pot in Muzaffarnagar.

Two or three things matter to India’s mainstream left without generating enthusiasm among its supporters. They include issues on which it is seen as coming close to the right-wing state. The left is perceived as according primacy to the decimation of the Maoists in Chhattisgarh even ahead of their fight against the BJP’s communal fascism. Maoism is an existential issue for the left and there can be arguments on both sides about how to move forward. The other issue is the left’s perceived alienation from the Muslim masses. Apparently this is being corrected by seeking out Saifuddin Chodhury, a former comrade who has credit with secular Muslims of West Bengal. That still doesn’t explain why the left has fallen off the radar, nor why it let the AAP step into its enormous if faded shoes.

http://www.dawn.com/news/1096921/righting-the-left