By Martin J Young
Following all the hype of the Consumer Electronics Show in Las Vegas last week, Apple aficionados had their turn at the Macworld Conference and Expo in San Francisco this week. The world's most comprehensive Macintosh OS event was expected to draw over the 40,000 attendees that turned up for last year's event. Naturally the highlight was the appearance of chief executive Steve Jobs, whose keynote address featured a number of new Apple releases, including an impressively thin MacBook Air notebook.
The ultra-slim computer, only 0.16 inches at its thinnest point, and 0.76 inches at its thickest, boasts 2GB of RAM, a 13.3 inch LED-backlit widescreen and a custom-built 65 nanometer mobile Intel 1.8 GHz Core 2 Duo CPU. It will retail at US$1,800 when it ships in two weeks. As impressive as the new laptop looks its specifications, screen size and lack of optical drives slot it into the mediocre category when compared with high-end PC notebooks, it's a shame the price tag isn't mediocre too.
There were also a number of updates to the iPhone and iPod. ITouch software updates will improve mapping features, offer more-customizable home screens, and better Gmail integration. The iPod updates enable it to display Adobe PDF and Microsoft Word and Excel files, Google Maps and a stock and market tracking program.
A wireless backup device called a "Time Capsule" was also announced by Jobs who stated, "Bring Time Capsule home, plug it in, click a few buttons on your Macs and voila - all the Macs in your house are being backed up automatically, every hour of every day." The unit, a wireless N base station with a 500 GB or 1 TB hard drive and a number of additional ports, is expected to retail next month for $300 and $500 for the terabyte version.
The other major announcement was that iTunes will now start renting out movies following a deal with studios including 20th Century Fox, The Walt Disney Studios, Warner, Paramount, Universal Studios, Sony Pictures Entertainment, MGM, Lionsgate and New Line Cinema. Movie rentals will cost $2.99 for library titles and $3.99 for new releases in a move that puts iTunes in competition with Microsoft, which offers movie rentals through the Xbox 360. The movies can be ordered from and played on the iPhone, iPod and through the Apple TV interface.
Google meanwhile announced that it will redesign its iPhone suite, offering faster load times and an improved user interface. Gmail and Calendar functions have been improved with more emphasis on streamlining tabs and the touch-screen operation of the software. Pre-fetching and auto-complete functions were introduced, enabling messages to appear as soon as they arrive. IGoogle gadgets will also now find a home on the iPhone; at present available only to the US market, Google plans to expand them internationally later this year. IGoogle offers "the ability to create a personalized iGoogle page that gives you at-a-glance access to key information from Google and across the web".
Internet
MySpace, one of the world's largest social networking websites claiming 70 million users, has agreed with attorneys from 49 US states to take new measures to protect teenagers and children from sex offenders online. Four categories of principles are hoped to be made into industrywide standards; these include reviewing of all content uploaded to the site, hiding from public view profiles of 14- to 17-year olds, and enforcement of the site's minimum age of 14.
Other principles include more education and free parental software, and increased communications with people that report abuse on the site. Parents will be able to submit email addresses if they don't want their children using the site and adults will need to show proof that he or she knows a child user in order to contact that child.
MySpace also intends to improve collaboration with law enforcement, with a 24-hour hotline to "enhance the ability of law enforcement officials to investigate and prosecute Internet crimes". The introduction of an "Online Safety Task Force" will also assist with these goals.
Internet growth continued unabated last month, with an additional five million new websites making a bottom line of over 150 million. Last year Netcraft’s web server survey estimated that the Internet has grown by more than 50 million websites last year, topping the previous growth record of about 30 million sites in 2006. The popularity of blogs accounted for the majority of this increase, with an estimated 25 million sites in the survey. According to Netcraft, which monitors host and server activity, the web has grown by 48% since December 2006 and although this is an impressive figure it does not compare to the runaway growth figure of 160% recorded in 2000.
Hardware
Three of the largest makers of hard drives are rumored to be in talks over a joint venture dedicated to the market. Hitachi, Toshiba and Fujitsu would own equal parts in the company, according to Cnet; they would combine their hardware sectors and storage system infrastructures. It has been suggested that if this proposal materializes it will do so before the start of the business year in Japan on April 1.
AMD plans to make public the specs for its new dual core R680 graphics card this month. January 23 will be the release date of the card, which has two graphics processors and will allow quad processor configuration in CrossFire mode on certain motherboards.
Intel has put back the release of their quad Core 2 Extreme QX9770 processors for high end desktops to February or March instead of January. The 3.2GHz CPU will be replacing Intel’s Core 2 Extreme QX9650, launched last year.
Martin J Young is an Asia Times Online correspondent based in Thailand.
Monday, January 21, 2008
China steps up inflation fight
By Olivia Chung
HONG KONG - The Chinese government now appears to see inflation as public enemy No 1 as it continues to take various measures to curb price increases with an eye to recent history that shows public discontent can soon grow to crisis proportions if the cost of daily necessities gets out of hand.
Steep inflation - 18.5% in 1988 rising to more than 25% in 1989 - was one reason people joined the 1989 student-led demonstrations at Tiananmen Square that ended with the bloody June 4 crackdown.
In the most recent inflationary period, mainland residents can buy only half the portion of basic necessities such as pork they bought previously with the same amount of money, as their income fails to go up proportionally.
"If I lived alone, I would stay away from meat shops. But for the sake of my family, I am forced to buy pork," a retired film projectionist named Yu who lives in Yunfu city, in southern Guangdong province, said on the phone.
The 70-year-old man has a clear picture of how prices of the country’s major foodstuffs have risen sharply in recent months.
"The price of pork has jumped to 18 yuan (US$2.50) per kilogram these days from 12 yuan in September, price of peanut oil has almost doubled to 13 yuan a kilogram from 7 yuan and even a pack of 250 ml milk has increased to 2.5 yuan from 2 yuan," Yu said. "Now I buy more chicken instead [of pork] as its price has gone down recently."
Yu is unlikely to take to the streets in protest at his rising food bill. Younger folk with growing families, students disillusioned with other aspects of life in China and workers getting by on limited wages might be less restrained as their already tight budgets come under pressure.
Yi Xianrong, economist of the Chinese Academy of Social Sciences (CASS), said Beijing recognizes the danger that an economic problem can turn into a political and social issue.
According to a report by the Hong Kong-based Information Center for Human Rights & Democracy, more than 1,000 workers at the Sinopec Qilu Petrochemical Company in Zibo, in the northern province of Shandong have staged a sit-in protest since December 3 to demand a pay rise to cope with rising food prices. The center did not say whether the company was negotiating with workers.
The price rise of the country’s major foodstuffs can be traced back to May last year, when pork prices doubled in only three months.
In early September, the price of pork and other basics eased a bit after the government had encouraged farmers to raise more pigs by making efforts to guarantee their incomes and benefits. Farmers had been reluctant to raise more pigs partly because an outbreak of blue ear disease had killed according to some reports more than 70,000 animals. Xue Liang, spokesman of the Ministry of Agriculture, said on August 23 that officials seeking to curb spread of the disease had destroyed a further 175,000 pigs. The government said in November it had brought the outbreak under control.
The outbreak came amid increasing demand for meat by a population benefiting from the country's growing economy. The average Chinese consumed 39.6 kilograms of pork in 2006, almost double the 20kg consumed per person in 1990. The pork market increased about fourfold to 25 million tons from 6.2 million tons during the period, according to China Meat Association data.
Despite increased supplies, China now also faces the prospect of further increases in living costs as global prices of crude oil and food surge. Prices of the country’s foodstuffs, which carry a 33% weight in the country’s consumer price index (CPI), rose 18.2% in November from a year earlier, pushing the CPI up 6.9% that month, the fastest pace since December 1996. Utility prices including water and electricity rose 5.6% year-on-year in the same month.
Compared with November, prices of major food, including refined grain, edible oil and pork, continued to rise in December, the National Development and Reform Commission (NDRC), China’s top planning agency, said in a statement posted on its website on January 9. December CPI data will be released on January 25.
Full-year inflation in 2007 could be 4.8%, according to Wang Tao, the head of economic and strategy for Greater China at Bank of America. The China Academy of Social Sciences (CASS) has forecast a 4.5% increase. CASS, a central government think-tank, said on January 11 the CPI could rise to 5.8% if the government fails to work out effective control policies.
The government among other measures raised interest rates six times last year. Most recently, on January 13 it increased the maximum fine for companies that collaborate on prices to manipulate the market or disobey government-ordered price freezes to one million yuan from 300,000 yuan, effective immediately.
The revision to a 1999 regulation came after a State Council, or cabinet, executive meeting presided over by Premier Wen Jiabao on January 9, which said it would not allow the prices of fuel, gas, electricity, tap water, heating, public transportation and entrance tickets to tourist destinations to be raised in the near future.
To implement the new policy, the NDRC on January 16 initiated price controls on a package of products, including grain, edible oil, meat, milk, eggs and liquefied petroleum gas, after increases in price the soybean oil climbed 58% and lamb 51% in the first half of this month from a year ago.
The continued intervention in the market to curb price increases for daily necessities has raised concern that prices will go up even more sharply when the temporary measures end.
The measures have "aroused worries among financial industry players that their biggest concern for this year was not the overheating economy nor external economic challenges triggered by US subprime problem, but policy lapse," (ie expiry of the price restrictions), said Bei Duoguang, managing director of China International Capital Corporation.
Bei also expressed worries over "the sudden measures" announced by the State Council, saying this was the first time the government has adopted price intervention measures since 1993. The administrative measures "should be used only when financial and monetary policies cease to be effective," he said.
The recent administrative measures might indicate that monetary polices were losing their usefulness. "Though the combined force of monetary and administrative means has an immediate effect, it will have serious negative impact in the long term," he said. "China exports will be boosted by the unfairly low prices of resources, which will create a negative impact on China's resources and environment."
Yi Xianrong, a senior economist and finance professor with the CASS, rejected the suggestion that the temporary price intervention indicated that the macro-economic control measures were losing efficacy. They had, however, distorted the relationship between demand and supply, which could later contribute to an upsurge in the prices of basics and have a bigger negative impact on the society, he said.
Yu Chuxing, manager of an art institution in Guangzhou, capital of Guangdong province, said efforts to stabilize market prices are certainly welcome by consumers, particularly those who have no stable jobs or were low-income migrant workers. But he echoed Yi’s concerns that prices would surge once the administrative curbs were no longer in force.
Credit Suisse chief economist Dong Tao said in a research note that given a freeze on prices of energy, utilities and other public services, the CPI in December likely moderated towards 6% year-on-year, compared with 6.9% in November. That, however, would almost entirely be due to the higher price increases seen the previous year, with CPI gaining 2.8% year-on-year in December 2006, from 1.9% in the previous month.
"We do not think the moderation in year-on-year CPI indicates any easing in inflation in China,'' he said. "We expect food inflation to stabilize at around 6-9% year-on-year over the first half of 2008, but with nonfood inflation picking up."
The first casualty of the Beijing’s decision to intervene to halt rising prices was mainland energy and food shares, with oil, fertilizer and power stocks falling sharply.
For example, on January 10, the day after the State council meeting, declining Hong Kong-listed stocks included China Petroleum & Chemical Corp (Sinopec), which fell as much as 8.5% before ending 6.43% lower at HK$10.76; fertilizer maker China BlueChemical, down 6.85% to HK$5.44, and Sinofert Holdings, down 10.21% to HK$7.39.
Jun Ma, chief economist at Deutsche Bank Hong Kong, wrote on January 17 that mainland food and beverage (F&B) companies such as China Resources and Lianhua Supermarket Holdings will be negatively affected.
The research note said the bank expected CPI inflation to moderate from 6.9% year-on-year in November to 6.5% year-on-year in December before rising to around 7% in January, as food prices continued to increase.
Olivia Chung is a senior Asia Times Online reporter.
HONG KONG - The Chinese government now appears to see inflation as public enemy No 1 as it continues to take various measures to curb price increases with an eye to recent history that shows public discontent can soon grow to crisis proportions if the cost of daily necessities gets out of hand.
Steep inflation - 18.5% in 1988 rising to more than 25% in 1989 - was one reason people joined the 1989 student-led demonstrations at Tiananmen Square that ended with the bloody June 4 crackdown.
In the most recent inflationary period, mainland residents can buy only half the portion of basic necessities such as pork they bought previously with the same amount of money, as their income fails to go up proportionally.
"If I lived alone, I would stay away from meat shops. But for the sake of my family, I am forced to buy pork," a retired film projectionist named Yu who lives in Yunfu city, in southern Guangdong province, said on the phone.
The 70-year-old man has a clear picture of how prices of the country’s major foodstuffs have risen sharply in recent months.
"The price of pork has jumped to 18 yuan (US$2.50) per kilogram these days from 12 yuan in September, price of peanut oil has almost doubled to 13 yuan a kilogram from 7 yuan and even a pack of 250 ml milk has increased to 2.5 yuan from 2 yuan," Yu said. "Now I buy more chicken instead [of pork] as its price has gone down recently."
Yu is unlikely to take to the streets in protest at his rising food bill. Younger folk with growing families, students disillusioned with other aspects of life in China and workers getting by on limited wages might be less restrained as their already tight budgets come under pressure.
Yi Xianrong, economist of the Chinese Academy of Social Sciences (CASS), said Beijing recognizes the danger that an economic problem can turn into a political and social issue.
According to a report by the Hong Kong-based Information Center for Human Rights & Democracy, more than 1,000 workers at the Sinopec Qilu Petrochemical Company in Zibo, in the northern province of Shandong have staged a sit-in protest since December 3 to demand a pay rise to cope with rising food prices. The center did not say whether the company was negotiating with workers.
The price rise of the country’s major foodstuffs can be traced back to May last year, when pork prices doubled in only three months.
In early September, the price of pork and other basics eased a bit after the government had encouraged farmers to raise more pigs by making efforts to guarantee their incomes and benefits. Farmers had been reluctant to raise more pigs partly because an outbreak of blue ear disease had killed according to some reports more than 70,000 animals. Xue Liang, spokesman of the Ministry of Agriculture, said on August 23 that officials seeking to curb spread of the disease had destroyed a further 175,000 pigs. The government said in November it had brought the outbreak under control.
The outbreak came amid increasing demand for meat by a population benefiting from the country's growing economy. The average Chinese consumed 39.6 kilograms of pork in 2006, almost double the 20kg consumed per person in 1990. The pork market increased about fourfold to 25 million tons from 6.2 million tons during the period, according to China Meat Association data.
Despite increased supplies, China now also faces the prospect of further increases in living costs as global prices of crude oil and food surge. Prices of the country’s foodstuffs, which carry a 33% weight in the country’s consumer price index (CPI), rose 18.2% in November from a year earlier, pushing the CPI up 6.9% that month, the fastest pace since December 1996. Utility prices including water and electricity rose 5.6% year-on-year in the same month.
Compared with November, prices of major food, including refined grain, edible oil and pork, continued to rise in December, the National Development and Reform Commission (NDRC), China’s top planning agency, said in a statement posted on its website on January 9. December CPI data will be released on January 25.
Full-year inflation in 2007 could be 4.8%, according to Wang Tao, the head of economic and strategy for Greater China at Bank of America. The China Academy of Social Sciences (CASS) has forecast a 4.5% increase. CASS, a central government think-tank, said on January 11 the CPI could rise to 5.8% if the government fails to work out effective control policies.
The government among other measures raised interest rates six times last year. Most recently, on January 13 it increased the maximum fine for companies that collaborate on prices to manipulate the market or disobey government-ordered price freezes to one million yuan from 300,000 yuan, effective immediately.
The revision to a 1999 regulation came after a State Council, or cabinet, executive meeting presided over by Premier Wen Jiabao on January 9, which said it would not allow the prices of fuel, gas, electricity, tap water, heating, public transportation and entrance tickets to tourist destinations to be raised in the near future.
To implement the new policy, the NDRC on January 16 initiated price controls on a package of products, including grain, edible oil, meat, milk, eggs and liquefied petroleum gas, after increases in price the soybean oil climbed 58% and lamb 51% in the first half of this month from a year ago.
The continued intervention in the market to curb price increases for daily necessities has raised concern that prices will go up even more sharply when the temporary measures end.
The measures have "aroused worries among financial industry players that their biggest concern for this year was not the overheating economy nor external economic challenges triggered by US subprime problem, but policy lapse," (ie expiry of the price restrictions), said Bei Duoguang, managing director of China International Capital Corporation.
Bei also expressed worries over "the sudden measures" announced by the State Council, saying this was the first time the government has adopted price intervention measures since 1993. The administrative measures "should be used only when financial and monetary policies cease to be effective," he said.
The recent administrative measures might indicate that monetary polices were losing their usefulness. "Though the combined force of monetary and administrative means has an immediate effect, it will have serious negative impact in the long term," he said. "China exports will be boosted by the unfairly low prices of resources, which will create a negative impact on China's resources and environment."
Yi Xianrong, a senior economist and finance professor with the CASS, rejected the suggestion that the temporary price intervention indicated that the macro-economic control measures were losing efficacy. They had, however, distorted the relationship between demand and supply, which could later contribute to an upsurge in the prices of basics and have a bigger negative impact on the society, he said.
Yu Chuxing, manager of an art institution in Guangzhou, capital of Guangdong province, said efforts to stabilize market prices are certainly welcome by consumers, particularly those who have no stable jobs or were low-income migrant workers. But he echoed Yi’s concerns that prices would surge once the administrative curbs were no longer in force.
Credit Suisse chief economist Dong Tao said in a research note that given a freeze on prices of energy, utilities and other public services, the CPI in December likely moderated towards 6% year-on-year, compared with 6.9% in November. That, however, would almost entirely be due to the higher price increases seen the previous year, with CPI gaining 2.8% year-on-year in December 2006, from 1.9% in the previous month.
"We do not think the moderation in year-on-year CPI indicates any easing in inflation in China,'' he said. "We expect food inflation to stabilize at around 6-9% year-on-year over the first half of 2008, but with nonfood inflation picking up."
The first casualty of the Beijing’s decision to intervene to halt rising prices was mainland energy and food shares, with oil, fertilizer and power stocks falling sharply.
For example, on January 10, the day after the State council meeting, declining Hong Kong-listed stocks included China Petroleum & Chemical Corp (Sinopec), which fell as much as 8.5% before ending 6.43% lower at HK$10.76; fertilizer maker China BlueChemical, down 6.85% to HK$5.44, and Sinofert Holdings, down 10.21% to HK$7.39.
Jun Ma, chief economist at Deutsche Bank Hong Kong, wrote on January 17 that mainland food and beverage (F&B) companies such as China Resources and Lianhua Supermarket Holdings will be negatively affected.
The research note said the bank expected CPI inflation to moderate from 6.9% year-on-year in November to 6.5% year-on-year in December before rising to around 7% in January, as food prices continued to increase.
Olivia Chung is a senior Asia Times Online reporter.
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