Chinas inflation rate hits 4.5 percent in January
China s annual inflation rate hit 4.5 percent in January, the highest level in three months, data showed Thursday, after consumers splashed out on food and gifts over the Lunar New Year holiday.
The country s consumer price index, a key gauge of inflation, was higher than the 4.1 percent in December and ended five straight months of easing price pressures caused by government restrictions on lending and property purchases.
Analysts said the holiday, also known as the Spring Festival, was unusually early this year and had distorted the monthly data.
Retail spending typically soars during the week-long festival, the most important celebration in the Chinese calendar, as consumers ramp up spending on food, wine and gifts for family and friends.
Before January, inflation had eased for five months in a row after hitting a more than three-year high of 6.5 percent in July and analysts said the downward trend would likely resume in February as the economy continued to slow.
“It was inevitable that we would see some impact of the Lunar New Year holidays, which were in January this year but February last year, but it seems that this impact was bigger than expected,” said Brian Jackson, a senior analyst at Royal Bank of Canada in Hong Kong.
Analysts had expected inflation to rise 4.1 percent, according to a Dow Jones Newswires survey.
The market barely reacted to the data, with the Shanghai Composite Index up 0.37 points, or 0.02 percent, at 2,347.90 in late morning trade.
The rebound in inflation was driven by food prices, which soared 10.5 percent year-on-year in January compared with 9.1 percent in December, the National Bureau of Statistics said in a statement.
The producer price index, which measures the cost of goods at the farm and factory gate, rose an anaemic 0.7 percent in January compared with 1.7 percent in December, the statement said.
Bank of America-Merrill Lynch economist Lu Ting said the data was “significantly distorted” by the holiday “so investors definitely should not read too much into the inflation”.
There is mounting evidence that China s growth is slowing as the ongoing debt crisis in Europe and weakness in the United States hurts demand for Chinese exports, a key driver of the world s second-largest economy.
The International Monetary Fund this week warned that an escalation of Europe s fiscal woes could slash China s economic growth by half this year, and it urged Beijing to prepare stimulus measures in response.
But Chinese leaders have been very cautious about opening the credit valves for fear of reigniting inflation, which has the historic potential to trigger social unrest in the country of more than 1.3 billion people.
Late last year the central bank eased lending restrictions on banks and analysts expect similar moves in the coming months as authorities try to spur economic activity and prevent a damaging collapse in the property market.
Policymakers are also easing taxes and improving funding channels for small and medium-sized businesses which are huge employers but are often shunned by the major banks.
“There remains plenty of downward momentum in China, despite a moderation in the slowdown,” said Alistair Thornton, a Beijing-based analyst for IHS Global Insight.
“The property market remains in the throes of a correction, which is dragging down investment spending and spreading deflationary pressure (and) the eurozone will act as a drag on export growth this year.”
Asian stock falls on China inflation, Greece delays
Asian markets were mostly lower Thursday after marathon talks over Greece s massive debt ended without firm agreement as China s annual inflation rate hit a three-month high.
Tokyo dipped 0.38 percent, Sydney was down 0.40 percent and Seoul lost 0.64 percent in morning trade, after closing at a half-year high on Wednesday.
Hong Kong, which also reached a six-month high on Wednesday s Asian market rally, lost 0.51 percent while Shanghai shares were flat, up 0.02 percent.
Greek coalition leaders ended lengthy talks on austerity measures Wednesday, with one remaining point of disagreement — pensions cuts — keeping alive fears it may default, a result that would send shockwaves across the eurozone and beyond.
Agreement on new measures demanded by the European Union, the International Monetary Fund and the European Central Bank and on a debt writedown by banks would open the way for a second rescue package for Greece, and close a key chapter in the eurozone s debt crisis.
The money is vital to prevent Greece from defaulting on 14.5 billion euros ($19.2 billion) worth of payments to bond holders, due next month, as the country struggles under a 350-billion euro debt mountain.
Investors are now awaiting meetings of the European Central Bank and Bank of England on Thursday, with the focus firmly on what stand they will take on further stimulus for slowing regional economies.
China said annual inflation hit 4.5 percent in January, its highest level in three months, after slowing to 4.1 percent in December as government efforts to curb bank lending and surging property prices took effect.
The rise was mainly attributed to the Lunar New Year holiday last month.
Retail spending typically soars during the festival, the most important celebration in the Chinese calendar, as consumers splash out on food, wine and gifts for family and friends.
“The CPI (inflation) numbers will have a negative effect on the market. Continued high inflation means policy will continue to be tighter than the market had expected,” Chen Wei, an analyst at China Minzu Securities, told Dow Jones Newswires.
Before January, China s inflation had eased for five straight months after hitting a more than three-year high of 6.5 percent in July and analysts said the downward trend would likely resume in February as the economy slowed.
On Wall Street, the Dow Jones Industrial Average edged up 0.04 percent by the close Wednesday while the broad-based S&P 500 rose 0.22 percent and the tech heavy Nasdaq Composite added 0.41 percent.
The euro was under pressure in early Asian trade, hitting $1.3215 against the dollar before gaining ground to change hands at $1.3251 and 102.22 yen, from $1.3260 and 102.14 yen in New York late Wednesday.
The dollar was at 77.13 yen, edging up from 77.03 yen in New York.
New York s main oil contract, West Texas Intermediate (WTI) light sweet crude for delivery in March, gained 22 cents to $98.93 a barrel and Brent North Sea crude for March was up 20 cents to $117.40 in morning trade.
Gold was at $1,732.40 an ounce at 0350 GMT, little changed from New York on Wednesday.
Cricket: Dhoni ready to quit the leadership
Facing severe criticism for his unimpressive captaincy and performances in Test cricket, under-fire Mahendra Singh Dhoni has offered to quit the leadership role in the longer format of the game if the BCCI feels there is a better replacement waiting in the wings.
Dhoni said if somebody could do a better job than him in Tests, then he will be more than happy to step down as captain for the sake of the team.
“It (captaincy) doesn t belong to anyone. It s a position I hold, and it s an added responsibility. I always like to do well till I am in job but it s not something I want to stick to. If there is a better replacement, he can come in,” Dhoni said on Tuesday ahead of tomorrow s first Twenty20 game Australia.
“At the end of the day, you want India to perform. If there is someone who can do a better job, captaincy should be given to him. It s not something you have to cling on to,” said Dhoni as speculation grew over his Test future both as a batsman and captain.
Dhoni has lost seven straight Test matches abroad as captain and as a batsman, his stocks have really fallen low on foreign pitches.
While he made 220 at 31.43 from four Tests in England, he scored 102 from six innings of three Tests at 20.40 on the present tour.
“The responsibility was given to me three-and-a-half years ago. I am trying to fit into the shoes, get along with the team and perform well.”
Dhoni had earlier dropped hints during the Test series that he might leave Test cricket altogether by 2013 to make himslef available the 2015 World Cup.
“It s two years to 2013. I don t know whteher I would still be alive There would be IPL, Champions League, back-to-back series. It s not a calendar you can decide in advance or if there is a lot of rest,” Dhoni said.
“I would have to decide by 2013 but it s two years away. I can t say in 2014 that I am not playing next World Cup and give a player of 25-odd matches (a chance to prove),” he said.
Dhoni, however, made it clear that his journey as a Test cricketer was far from over but believed the decision was not entirely in his hands.
“I am still on my way (through the journey). I haven t reached anywhere. But it s not an individual who decides, it s others who decide whether you are good enough or not.”
“As a player, I am giving my 100%. I am still doing what I was doing. Test cricket is real cricket, but I am not discarding other formats. Every format has its own challenges,” he said.
The India captain made a tongue in cheek remark about the dressing room, which according to him is humming with the noise and bubble of the youngsters — much in contrast to the staid, sober and solemn environment when the seniors were around.
“Our one-day squad looks very different. It s lot more noisy and lift the dressing room atmosphere. People pull each other s legs and it s more lively. It s very, very different,” he said.
“It s like you have come from Kishore Kumar to Sean Paul It s that kind of difference. It s very noisy. It s a very different generation of players.
“As for me, I keep adjusting. A mix of everything is good. From classical to rap music of latest version,” he said.
The Dirty Picture team wins legal tussle against Silk Smitha’s brother
It may be recalled that Ekta Kapoor’s home production The Dirty Picture directed by Milan Luthria had found itself in the midst of a controversy a few weeks ago when V Naga Vara Prasad (brother of Silk Smitha) had sent a legal notice to the makers of the film for not taking permission from him before going ahead with the film. Vara Prasad was irked that the film projected his late sister Silk in an obscene manner.
The case was heard in the Andhra High Court and the Court has dismissed Vara Prasad’s writ petition yesterday and gave the makers of The Dirty Picture a clean chit to go ahead with the release as scheduled.
The Dirty Picture starring Vidya Balan, Naseeruddin Shah, Emraan Hashmi and Tusshar releases all over today.
Legal complaint filed against Big B in Australia
He may be the toast of Indian cinema, but this veteran actor has had his share of controversies over the years. Now, Amitabh Bachchan faces a serious legal
issue following a criminal complaint that was lodged by US-based Sikh human rights group for his alleged role in November 1984 anti-Sikh riots.
The complaint that was filed against Bachchan has been lodged under Australia’s “criminal code Act 1995″. The complaint was made by Sikhs for Justice (SFJ),
a US-based human rights organisation. Apparently, Amitabh Bachchan has been charged for allegedly giving the murderous calls – Blood for Blood / Blood stains
of Indira Ji must reach the homes of Sikhs – on October 31, 1984.
The 69-year old actor is currently in Sydney shooting for The Great Gatsby that co-stars Leonardo Di Caprio. He will also be honoured by the
Queensland University of Technology in Brisbane on Thursday where he will receive an honorary doctorate.
Aamir Khan fined Rs. 100 for driving in no-entry lane
Aamir Khan was fined Rs.100 for driving into a no-entry zone on Sunday. The actor was driving his BMW with his wife in Satara, when he took a wrong turn and entered a no-entry zone. It was then that the traffic police immediately stopped him and pointed out that he was driving on the wrong side. 
The incident occurred at Powai Naka, near the Shivaji Statue in the heart of Satara town, which normally witnesses heavy traffic.
Khan insisted on paying the fine and was issued challan of Rs. 100 by the cops.
SRK gets fresh notice from Maharashtra Costal Zone Management Authority
Shah Rukh Khan, who is busy with the release of his film Ra.One, may find himself in troubled waters, literally so, with a fresh notice being sent to him by the Maharashtra Costal Zone Management Authority (MCZMA) for flouting coastal regulatory zone (CRZ) norms with his latest construction behind his bungalow Mannat.
This comes after the actor was sent a notice a while ago for the apparent illegal construction of a six storied building within the grounds of his bungalow Mannat.
The said notice has been served, asking Khan to respond to the allegations of a six-storey structure on the plot without the permission of the MCZMA. The coastal body’s approval is needed as the Bandstand structure falls in the coastal regulatory zone (CRZ).
The complaint filed by Amit Maru further alleged that MCZMA’s permission was not obtained before the demolition of two heritage structures which existed on the plot. Also, the plot on which Mannat stands was earlier reserved for a public art gallery. The MCZMA’s permission was not obtained before the BMC approved a proposal to modify the reservation to residential purpose.
Harman’s long-delayed film gets new lease of life thanks to Genelia
It’s My Life just got a new lease of life. Thanks to the favourable reports and response to Genelia D’Souza’s performance in her new release Force, suddenly Harman Baweja’s long-delayed release, It’s My Life, has become an urgent issue with producer Boney Kapoor and director Anees Bazmee.
According to very reliable sources, Genelia’s success in Force is just the window that the producer and director were looking for to release It’s My Life. The film is being spruced up big time.
Says the source, “Genelia’s is the third-most important role in It’s My Life after Nana and Harman. Ways are being devised to enhance Genelia’s presence in the film. A song is being added to the film. Shankar-Ehsaan-Loy have been asked to create a sizzling new number for Genelia to sizzle to.”
Apparently, the Bon Jovi anthem ‘It’s My Life’ was being considered as the special add-on to the film.
But Shankar Mahadevan denies the Bon Jovi connection. “We are doing a new title song for It’s My Life. We’re exploring various possibilities. But Bon Jovi is not one of them.”
Anees admits the film is being spruced up. “We are definitely releasing the film finally on January 13. Yes we’re adding a song. I am not aware of how successful Genelia’s new film is. But yes, success of any kind does help the next picture, issmein koi shaq nahin hai.”
Esha Gupta signed opposite Emraan Hashmi for Jannat 2
Prachi Desai and Paoli Dam’s loss is Miss India International winner 2007, Esha Gupta’s gain. Esha Gupta’s looks and sex appeal have helped her get the lead role in Vishesh Films Jannat 2, a sequel to the 2008 super hit film Jannat.
The role in question is that of Emraan Hashmi’s wife in Jannat 2 and the films director Kunal Deshmukh wanted someone bold and sensual for the role. Prachi Desai was signed on for the role but the makers of the film apparently re-considered their decision to cast Prachi in the lead role, on the pretext that she was not as sensual as her role demanded her to be and Prachi too was not comfortable with her character and they parted ways amicably.
Mahesh Bhatt then recommended the Bengali actress Paoli Dam as she had the body language and the willingness to go all out for the film and met the requirements of the narrative. But Kunal seemed to be adamant on casting Esha right from the time he saw her as he felt she was perfect for the role. After a lot of discussions, Kunal managed to convince Mahesh Bhatt and co-producers Fox Star Studios.
Jannat 2 also stars Randeep Hooda and newcomer Imran Zahid. The music will be composed by Pritam. Esha will start shooting for the film in Delhi from October 7.
Sanjay Dutt gifts bike worth Rs. 25 lakhs to Ranbir Kapoor
Ranbir Kapoor’s birthday celebrations made headlines for the guest list of invitees who arrived at the do. However Sanjay Dutt, who has earlier proclaimed his affinity for the young star, made a dashing entry at the party to present the birthday boy with a special gift.
Dutt presented Ranbir with a red Harley Davidson bike worth approximately Rs. 25 lakhs. The two actors have been neighbours for years now and while Ranbir looks up to Dutt as an idol figure, Dutt has more than a liking towards him post offering him the lead role in the remake of his father’s film Mujhe Jeene Do.
So, the next time you see Ranbir zooming in and out of Pali Hill in a brand new bike, you know it’s given by none other than the Deadly Dutt.
