China to become largest net oil importer before year-end

Energy-hungry China is expected to overtake the US to become the
world's largest net oil importer before the endof this year, according
to a report.
The report, quoting figures from the US Energy
InformationAdministration (EIA), said that"the US is still the largest
importer of oil, but not for much longer. While its net oil imports
are quickly falling, those of China, the world's second largest oil
consumer, are quickly rising."
Asian demand for Gulf Cooperation Council's (GCC) energy products will
remain robust as the regional industrial expansion continuesin spite
of the weak economic background, the report said.
South Korea is an important economic partner to the Gulf, acertain
level of competition exists among GCC countries to increase their
share of exports, though, currently Saudi Arabia leads exports more
than the rest of the Gulf to South Korea.
According to the report, China is not the only country headingthat
direction: India and newly industrialised economies like South Korea
and Taiwan are also quickly catching up.
Just under half of the world's top ten net oil importers come from
emerging Asia, it said, revealing that South Korea is the 6th largest
net oil importer.
Korea's energy consumption levels have increased over time and, given
that its production capacity is relatively low and rigid, its energy
imports have been rising, said the report.
According to the report, the GCC exports nearly twice as much to
emerging Asia than it does to the G3 nations comprising Colombia,
Mexico, and Venezuela.
Less developed Asian economies, such as Vietnam and Cambodia, are also
increasing their demand for the Gulf's energy products, as they
develop their industrial sectors, while the G3 is reducing its imports
from the GCC, as their industries stall and as they become more energy
self-sufficient.
Among the GCC countries, Saudi Arabia is the largest exporter to South
Korea and fifth at the global level. Saudi shipped $ 37.5 billion
worth of goods in the 12 months to July2013, followed by Qatar with$
26 billion, Kuwait with $ 18.4 billion and the UAE with $ 16.2
billion. Kuwait became South Korea's third largest exporter from the
GCC in 2011.
GCC comprises six gulf nationsnamely United Arab Emirates, Bahrain,
Saudi Arabia, Oman, Qatar and Kuwait.

Rupee breaches 68/dollar again

The rupee slid a little closer on Tuesday to a record low struck
against the dollar last week, as share markets weakened and investors
remained doubtful whether the government would act decisively to
restore confidence in the economy.
With crude oil prices rising dueto fears about a potential US military
strike on Syria, economists have called for an increase in subsidised
fuel prices to help address concerns over a record high current
account deficit and a fiscal deficit that is among the highest of all
the major emerging market economies.
Markets are keenly waiting to see how former International Monetary
Fund economist Raghuram Rajan will handle thedefence of the rupee once
he takes over as governor of theReserve Bank of India on Thursday,
having previously beeen an advisor to the finance ministry.
As elsewhere, traders were also cautiously waiting for US jobs data
due out on Friday that could effect expectations about when the
Federal Reserve will start tapering its monetary stimulus. The
prospect of less easy money from the United States has caused a exodus
from many emerging markets over the past few months, but India
hasfared worse than most because of its precarious deficits.
The RBI's rupee defence has so far rested largely on draining money
markets, but the rupee has still lost over 19.5% against the dollar
since the slide began in early May, and higher short term interest
rates have raised borrowing costs for struggling corporates at time
when the economy's slowdown has become more acute.
The partially convertible rupeebreached 68 per dollar in afternoon
trade on Tuesday, weakening from its close of 66.00/01 on Monday, and
not far from the record low of 68.85 hit on August 28.
The rupee was impacted by gains in the dollar on international markets
and falling domestic shares.
The broader Nifty fell more than 2% on Tuesday on profit-taking,
snapping a three-session winning streak to Monday when it ended at a
2-1/2 week high.
Technicals suggest the rupee could fall further after a periodof
relative range-bound trading since striking the record low last week.
Offshore traders see the rupee staying near the record low with
one-month contracts for non-deliverable forwards trading at 68.30.
India is suffering from a dearthof investment, and the measures taken
by the government so far have failedto convince investors to put more
money into an economy, which is growing at a dangerously slow pace
given India's demographics.
Subsidies
With a national election due byMay, there are doubts whetherPrime
Minister Manmohan Singh's minority government would be ready to take
unpopular steps like raising subsidised fuel prices. Earlier this
week, lawmakers derided a proposal from Oil Minister Veerappa Moily to
close petrol pumps at nights.
India has unveiled measures to curb gold imports and announced gradual
diesel pricehikes, but economists say more are needed.
"Small hikes in fuel are not going to make up for the losses of oil
companies. The government will have to raise prices to send a clear
signal toinvestors, because if they do not meet the fiscal deficit
target, it will be negative for the economy," said Rupa Rege Nitsure,
chief economist at Bank of Baroda.
Data released on Friday showed the economy had grown by a worse than
expected 4.4% in the April-June quarter, adding to fears that growth
this fiscal year willcome in below the decade low growth of 5.0%
notched in the fiscal year that ended in March.
Investors worry the government is more focused on expensive, populist
measures that will make it hardfor India to meet its target of
bringing the fiscal deficit down to 4.8% of gross domestic product
this fiscal year.
On Monday, the upper house of parliament approved a scheme, that will
cost an estimated $20 billion, to provide subsidised grains to the
poor.
"The government is trying to rationalise subsidies on one front, but
has also approved the food security bill simultaneously, raising
concerns over whether the government is really committedto meeting its
fiscal deficit target," Nitsure said.

Microsoft to acquire Nokia's handset business for $7.2bn

Reuters
Finland's Nokia, once the undisputed leader in mobile phones, has been
struggling to respond to the challenge from smartphone makers such as
Apple and Samsung.

HELSINKI:
Microsoft Corp onTuesday said it would buy Nokia's mobile phone
business for 5.44 billion euros, and the Finnish firmsaid its CEO,
Stephen Elop,would join Microsoft when the transaction closed.
Finland's Nokia, once the undisputed leader in mobilephones, has been
struggling to respond to the challenge from smartphone makers such as
Apple and Samsung.
Analysts say Elop's bold bet in 2011 to adopt Microsoft's untested
Windows Phone software has yet to pay off.
The deal is expected to close in the first quarter of2014 and is
subject to approval by Nokia's shareholders and regulatory approvals.
Nokia partnered in 2011 with Microsoft and uses Microsoft's Windows
software to run its mobile phones.
"It's a bold step into the future - a win-win for employees,
shareholders and consumers of both companies," Microsoft's outgoing
CEO, Steve Ballmer, said in a statement.
"Bringing these great teams together will accelerate Microsoft's share
and profits in phones, and strengthen the overall opportunities for
both Microsoft and our partners across our entirefamily of devices and
services."
Nokia said in a statement itexpected that Elop, along with senior
executives Jo Harlow, Juha Putkiranta, Timo Toikkanen, and ChrisWeber,
would transfer to Microsoft when the deal was concluded. It did not
say what roles they would take at Microsoft.
Nokia board chairman RistoSiilasmaa would take over CEO duties while
the Finnish firm looked for a new CEO, it said.
Elop, a Canadian hired by Nokia in 2010 from Microsoft, has been one
ofthe favourites to take over as Microsoft chief when Ballmer steps
down.

Way forward: A 'kill switch' could soon be installed in Samsung mobile phones and tablets which would allowthe devices to be disabled if they are stolen, it has emerged

A 'kill switch' could soon be installed in Samsung mobile phones and tablets which would allow the devices to be disabled if they are stolen. The new feature would allow the phone manufacturer to disable a stolen device even if a thief had tampered with the machine. It comes afterApple announced last month that its smartphones are to be installed with a similar switch. The authorities in South Korea- which are struggling to copewith an increase in gadget thefts - have asked the country's major technology makes - including Samsung - to begin installing the feature. Despite users currently being able to lock their screens to prevent strangers from gaining access to devices, thieves can work around this. They often hack into mobile phones to remove the barriers or instead replace SIM cards A kill switch would allow devices to be disabled by phone operators and manufacturers even if thieveshad taken this action. Apple announced last month that the capability will be added as part of the latest iOS update due out in the autumn. And the Mayor of London BorisJohnson is among politicians pushing all phone manufacturers to follow suit and do more to tackle phone theft. There were more than 100,000 'thefts from person' in the UK last year - an 8 per cent increase on 2011. Last month, pop singer Katie Melua had her iPhone 5 rippedfrom her by muggers as she walked from her Notting Hill studios.