Powerful business lobbying bodies on Thursday sued the Obama administration, seeking to strike down recent rules intended to prevent corporate tax avoidance through so-called inversions. 
 
In a rule adopted in April, the US Treasury sought to prevent American companies from moving overseas to reduce their tax burdens, often through reverse mergers. The pharmaceutical giant Pfizer that month abandoned plans for a merger with Botox producer Allergan, based in Ireland, as a result. 
 
In a complaint filed in US District Court in Texas, the US Chamber of Commerce and the Texas Association of Business accused the Obama administration of attempting to re-write US tax laws while bypassing the legislature, which is controlled by Republicans and hostile to the measure. If the rule is allowed to stand, &quot;it is not just mergers that will suffer, it is the rule of law, and the certainty and stability required for effective commerce,&quot; the complaint said. 
 
In a statement, US Chamber President, Tom Donahue, said the Treasury and Internal Revenue Service had &quot;ignored the clear limits of a statute, and simply rewrote the law unilaterally.&quot; 
 
The Treasury Department said on Thursday it had acted within its powers to address what lawmakers had failed to. 
 
&quot;In the absence of congressional action, Treasury proposed regulations to eliminate tax benefits for companies that acquire multiple US firms over a short period of time,&quot; the department said. 
 
&quot;This action was based on strong policy interests and clear legal authority. We will continue to defend these regulations, which will help slow the erosion of our corporate tax base.&quot; 
 
According to the rule adopted in April, companies formed in tax inversions can be subject to higher taxes if the newly formed company does less than 25 per cent of its business in the foreign country where it is incorporated, or if the shareholders in the old American parent company end up owning at least 60 per cent of the new foreign parent. 
 
(AFP)

The US Treasury, in a rule adopted in April, has sought to prevent American companies from moving overseas to reduce tax burden

Powerful business lobbying bodies on Thursday sued the Obama administration, seeking to strike down recent rules intended to prevent corporate tax avoidance through so-called inversions. In a rule adopted in April, the US Treasury sought to prevent American companies from moving overseas to reduce their tax burdens, often through reverse mergers. The pharmaceutical giant Pfizer that month abandoned plans for a merger with Botox producer Allergan, based in Ireland, as a result. In a complaint filed in US District Court in Texas, the US Chamber of Commerce and the Texas Association of Business accused the Obama administration of attempting to re-write US tax laws while bypassing the legislature, which is controlled by Republicans and hostile to the measure. If the rule is allowed to stand, "it is not just mergers that will suffer, it is the rule of law, and the certainty and stability required for effective commerce," the complaint said. In a statement, US Chamber President, Tom Donahue, said the Treasury and Internal Revenue Service had "ignored the clear limits of a statute, and simply rewrote the law unilaterally." The Treasury Department said on Thursday it had acted within its powers to address what lawmakers had failed to. "In the absence of congressional action, Treasury proposed regulations to eliminate tax benefits for companies that acquire multiple US firms over a short period of time," the department said. "This action was based on strong policy interests and clear legal authority. We will continue to defend these regulations, which will help slow the erosion of our corporate tax base." According to the rule adopted in April, companies formed in tax inversions can be subject to higher taxes if the newly formed company does less than 25 per cent of its business in the foreign country where it is incorporated, or if the shareholders in the old American parent company end up owning at least 60 per cent of the new foreign parent. (AFP)

US Big Business sues Obama administration over corporate tax rules

Already hamstrung by the battle to compete with online rivals, Britain&#39;s major clothing retailers now risk a hit to sales and profits from the higher costs and plummeting consumer confidence that have followed the vote to leave the European Union. 
 
A month after that vote, clothing sellers are nursing big share price falls and contemplating the cost of the depreciation in the Pound versus their most important currency, the US Dollar. 
 
At the same time, consumer confidence has recorded one of the biggest drops in over two decades. With consumer spending accounting for three quarters of Britain&#39;s gross domestic product any drop would have huge implications for the economy. 
 
While a few retailers with big overseas earnings could benefit from the currency move, such as luxury brand Burberry, online fashion retailer ASOS and discount chain Primark, those that will struggle are likely to be British-focused and with already tight margins. 
 
&quot;It was already a tough market,&quot; Andy Street, managing director of John Lewis, Britain&#39;s biggest department store chain, said earlier this month, while Steve Rowe, CEO of Marks &amp; Spencer, the nation&#39;s biggest clothing retailer, described confidence as &quot;fragile&quot;. 
 
While steps by clothing retailers to protect themselves from volatility in foreign exchange rates through hedging will provide some breathing space on the currency issue, the hit to confidence is the more immediate threat, as Britons typically curtail clothes shopping in hard times. 
 
Market researcher Nielsen polled shoppers after the Brexit vote and found 41 per cent planned to change their spending habits to save on household expenses, with clothing and expensive grocery brands in their sights. 
 
In common with all British retailers, clothing sellers were already grappling with intense competition from online-only players and the cost inflation implications of the government-mandated minimum pay rate, the national living wage, as well as increased business rates. 
 
Official data today showed UK clothing sales were falling even before the referendum. Sales volumes in the three months to June were 5 per cent lower than a year earlier, the worst performance for any calendar quarter in 25 years, and in sharp contrast to a buoyant picture for most other categories of retail. 
 
Now clothing retailers also have to deal with a sharply depreciated Pound.&nbsp;Sterling has taken the brunt of market concern since the Brexit vote on June 23, falling to a 31-year low and trading below $1.28 on July 6 against $1.50 the day before the referendum. 
 
With the bulk of British clothing retailers&#39; goods sourced from Asian suppliers and paid for in Dollars, a weaker Pound has a major impact on their buying costs. 
 
Britain&#39;s biggest clothing retailers, including M&amp;S, Next and John Lewis, are hedged up to 18 months ahead, meaning that if Sterling stays depressed the main impact will not start to be felt until the second half of their 2017-18 financial year. 
 
Sportswear retailer Sports Direct is the notable exception, being unhedged for Sterling-Dollar for its 2016-17 year. Its share price is down 32 per cent since the vote. 
 
Clothing companies would normally be expected to hedge for the second half of 2017-18 and beyond, now and over the next few months.&nbsp;But with foreign currency markets volatile, the treasury departments of firms are reviewing their hedging policies. 
 
They face a dilemma, explained a senior banker with several major British retailers as clients, because as UK interest rates look set to be cut there is a risk Sterling could fall further.&nbsp;&quot;Now might not be the right time to do it, equally waiting might not be the right thing to do,&quot; he said. 
 
That unease was echoed by a person with knowledge of the situation at a FTSE 100 clothing retailer.&nbsp;&quot;You don&rsquo;t want to be making a decision in July to hedge for 18 months time, because nobody knows what&rsquo;s going to happen. You could put yourself in a worse position,&quot; said the person, adding that only the brave would start hedging now. 
 
Faced with higher sourcing costs one solution could be to pass those costs on to consumers through higher prices.&nbsp;However, in an already weak market shoppers will have little appetite for inflation, and in the case of M&amp;S, raising prices would run counter to Rowe&#39;s stated strategy of bringing them down to cure the firm&#39;s perceived uncompetitiveness. 
 
The average price of clothing has fallen by 15 per cent in the last 10 years, according to official UK data.&nbsp;The key for clothing retailers will be their ability to mitigate the cost increases they face. 
 
&quot;There are a number of things that we can do in terms of the sourcing side of things,&quot; said Helen Weir, M&amp;S&#39; chief finance officer, noting the firm imports 1 billion to 1.5 billion Pounds ($1.31-$1.97 billion) worth of goods each year in Dollars. 
 
Options include changing the mix of sourcing countries and further increasing the proportion of direct sourcing from factories, cutting out middlemen.&nbsp;Also there might be scope to re-negotiate better terms with suppliers as Asian currencies have depreciated against the Dollar. 
 
Bankers say more radical options would require a cultural shift at retailers.&nbsp;They could pursue &quot;dual pricing&quot;, where they negotiate part payment for supplies in different currencies from the Dollar, for example using the Chinese Renminbi. 
 
Retailers could also collaborate more on ordering, shipping and warehousing to seek economy of scale savings.&nbsp;But efficiencies might be more difficult to achieve than in previous years. 
 
&quot;Companies have already materially improved their gross margins through better buying and efficiencies on the supply side,&quot; said Ernesto Bisagno, senior analyst at ratings agency Moody&#39;s. 
 
Ultimately the clothing sellers with the biggest margins will be best able to weather the storm.&nbsp;Here, Next, Britain&#39;s most successful clothing retailer of the last decade, is the stand-out stock, with an operating margin for 2015-16 of 20.8 per cent, according to Reuters data. 
 
That dwarfs M&amp;S on 7.4 per cent, which is diluted by half of its business being in the lower-margin food sector, Debenhams on 5.8 per cent (for 2014-15), Sports Direct on 9.4 per cent and Primark on 11.9 per cent (for its most recent quarter). 
 
Led by Simon Wolfson, who was among the leading business supporters of Brexit, Next should be well prepared. With some foresight, he had warned in March that 2016 could be its toughest year since 2008. 
 
(Reuters)

Clothing retailers fear volatility in foreign exchange rates, and Britons typically buy less clothes in hard times

Already hamstrung by the battle to compete with online rivals, Britain's major clothing retailers now risk a hit to sales and profits from the higher costs and plummeting consumer confidence that have followed the vote to leave the European Union. A month after that vote, clothing sellers are nursing big share price falls and contemplating the cost of the depreciation in the Pound versus their most important currency, the US Dollar. At the same time, consumer confidence has recorded one of the biggest drops in over two decades. With consumer spending accounting for three quarters of Britain's gross domestic product any drop would have huge implications for the economy. While a few retailers with big overseas earnings could benefit from the currency move, such as luxury brand Burberry, online fashion retailer ASOS and discount chain Primark, those that will struggle are likely to be British-focused and with already tight margins. "It was already a tough market," Andy Street, managing director of John Lewis, Britain's biggest department store chain, said earlier this month, while Steve Rowe, CEO of Marks & Spencer, the nation's biggest clothing retailer, described confidence as "fragile". While steps by clothing retailers to protect themselves from volatility in foreign exchange rates through hedging will provide some breathing space on the currency issue, the hit to confidence is the more immediate threat, as Britons typically curtail clothes shopping in hard times. Market researcher Nielsen polled shoppers after the Brexit vote and found 41 per cent planned to change their spending habits to save on household expenses, with clothing and expensive grocery brands in their sights. In common with all British retailers, clothing sellers were already grappling with intense competition from online-only players and the cost inflation implications of the government-mandated minimum pay rate, the national living wage, as well as increased business rates. Official data today showed UK clothing sales were falling even before the referendum. Sales volumes in the three months to June were 5 per cent lower than a year earlier, the worst performance for any calendar quarter in 25 years, and in sharp contrast to a buoyant picture for most other categories of retail. Now clothing retailers also have to deal with a sharply depreciated Pound. Sterling has taken the brunt of market concern since the Brexit vote on June 23, falling to a 31-year low and trading below $1.28 on July 6 against $1.50 the day before the referendum. With the bulk of British clothing retailers' goods sourced from Asian suppliers and paid for in Dollars, a weaker Pound has a major impact on their buying costs. Britain's biggest clothing retailers, including M&S, Next and John Lewis, are hedged up to 18 months ahead, meaning that if Sterling stays depressed the main impact will not start to be felt until the second half of their 2017-18 financial year. Sportswear retailer Sports Direct is the notable exception, being unhedged for Sterling-Dollar for its 2016-17 year. Its share price is down 32 per cent since the vote. Clothing companies would normally be expected to hedge for the second half of 2017-18 and beyond, now and over the next few months. But with foreign currency markets volatile, the treasury departments of firms are reviewing their hedging policies. They face a dilemma, explained a senior banker with several major British retailers as clients, because as UK interest rates look set to be cut there is a risk Sterling could fall further. "Now might not be the right time to do it, equally waiting might not be the right thing to do," he said. That unease was echoed by a person with knowledge of the situation at a FTSE 100 clothing retailer. "You don’t want to be making a decision in July to hedge for 18 months time, because nobody knows what’s going to happen. You could put yourself in a worse position," said the person, adding that only the brave would start hedging now. Faced with higher sourcing costs one solution could be to pass those costs on to consumers through higher prices. However, in an already weak market shoppers will have little appetite for inflation, and in the case of M&S, raising prices would run counter to Rowe's stated strategy of bringing them down to cure the firm's perceived uncompetitiveness. The average price of clothing has fallen by 15 per cent in the last 10 years, according to official UK data. The key for clothing retailers will be their ability to mitigate the cost increases they face. "There are a number of things that we can do in terms of the sourcing side of things," said Helen Weir, M&S' chief finance officer, noting the firm imports 1 billion to 1.5 billion Pounds ($1.31-$1.97 billion) worth of goods each year in Dollars. Options include changing the mix of sourcing countries and further increasing the proportion of direct sourcing from factories, cutting out middlemen. Also there might be scope to re-negotiate better terms with suppliers as Asian currencies have depreciated against the Dollar. Bankers say more radical options would require a cultural shift at retailers. They could pursue "dual pricing", where they negotiate part payment for supplies in different currencies from the Dollar, for example using the Chinese Renminbi. Retailers could also collaborate more on ordering, shipping and warehousing to seek economy of scale savings. But efficiencies might be more difficult to achieve than in previous years. "Companies have already materially improved their gross margins through better buying and efficiencies on the supply side," said Ernesto Bisagno, senior analyst at ratings agency Moody's. Ultimately the clothing sellers with the biggest margins will be best able to weather the storm. Here, Next, Britain's most successful clothing retailer of the last decade, is the stand-out stock, with an operating margin for 2015-16 of 20.8 per cent, according to Reuters data. That dwarfs M&S on 7.4 per cent, which is diluted by half of its business being in the lower-margin food sector, Debenhams on 5.8 per cent (for 2014-15), Sports Direct on 9.4 per cent and Primark on 11.9 per cent (for its most recent quarter). Led by Simon Wolfson, who was among the leading business supporters of Brexit, Next should be well prepared. With some foresight, he had warned in March that 2016 could be its toughest year since 2008. (Reuters)

British clothing retailers face Brexit double whammy

The cottage cheese crackles like popcorn, emits a greyish smoke and finally goes up in flames, burning for an impressive ten minutes, like a well-oiled torch. 
 
The noxious experiment, filmed and posted last month by Russian news website Fontanka, concluded that some dairy sold around Saint Petersburg does not actually contain any milk and is &quot;good only for filling kerosene lamps&quot;. 
 
Though authorities closed one factory making the combustible cheese, the problem of milkless dairy, meatless sausages and other questionable products worry both government agencies and Russian shoppers amid a recession and a food embargo that left shelves empty of Western food imports. 
 
&quot;We decided to show that it&#39;s a systematic problem,&quot; said Fontanka reporter Venera Galeyeva, on the quest to expose other fake foods since her cheese-burning video went viral. 
 
&quot;The problem is not one specific producer. Globally the problem is that Russia does not have enough milk.&quot; 
 
Moscow has enforced an embargo on imports of most foods from the West since August 2014 in retaliation for Western sanctions imposed on Moscow over its involvement in the Ukraine conflict. 
 
On Friday Prime Minister Dmitry Medvedev officially signed off on extending the embargo until the end of 2017. 
 
Closing the market off from European parmesan and brie has created a booming domestic industry, but as milk production has not grown, many producers are forced to get creative, misleading consumers. 
 
&quot;There is a milk deficit,&quot; said Vadim Semikin of the Institute for Agriculture Market Studies, giving a rough estimate of eight million tonnes last year. 
 
At the same time, palm oil imports grew by 25 per cent in 2015, he said, and companies use it to substitute for milk. 
 
&#39;Falling quality&#39; 
 
Russia has claimed that the embargo is a good opportunity to support the country&#39;s agriculture. 
 
On Thursday, Medvedev argued that extending it for another 18 months was dictated by the &quot;need to create comfortable and predictable conditions for our farmers&quot;. 
 
But the government&#39;s own analytical department concluded in April that Russian consumers have been the losers, observing a trend of &quot;falling quality&quot; of products and &quot;appearance of fake cheese products on the market.&quot; 
 
In a sign of the scope of the problem, Russia&#39;s agriculture watchdog this year began to publish a &quot;List of Honest Ones&quot; of companies which actually use milk and cream to make their dairy foods. 
 
Others use anything from water to &quot;starch, chalk, soap, baking soda, lime&quot; and even plaster to dilute and conserve milk, the watchdog said last week, scandalising the milk industry. 
 
&quot;Most domestic producers take advantage of the non-competitive market and don&#39;t rush to make good products,&quot; said Irina Tikhmyanova, spokeswoman for Roscontrol, a consumer protection NGO. 
 
Sixty per cent of 46 Russian dairy products tested by the group were recently shown to contain surrogates, she said. For meat products, the figure was even higher. 
 
Though recent polls showed that people are noticing food quality go down, many Russians still embrace the embargo. 
 
In a June poll by Levada centre independent pollster, 40 per cent of respondents said they were against allowing European products into Russia - up from 31 per cent in March 2015. 
 
Galeyeva of Fontanka said Russians with shrinking disposable incomes would just have to keep buying fake cheese as prices grow. 
 
&quot;When you have just 300 Rubles ($4.70) to feed your family for the week, you won&#39;t be so picky,&quot; she said. 
 
(AFP)

Rising problem of milk-less dairy, meatless sausages and other questionable products amid recession and an embargo on Western food imports

The cottage cheese crackles like popcorn, emits a greyish smoke and finally goes up in flames, burning for an impressive ten minutes, like a well-oiled torch. The noxious experiment, filmed and posted last month by Russian news website Fontanka, concluded that some dairy sold around Saint Petersburg does not actually contain any milk and is "good only for filling kerosene lamps". Though authorities closed one factory making the combustible cheese, the problem of milkless dairy, meatless sausages and other questionable products worry both government agencies and Russian shoppers amid a recession and a food embargo that left shelves empty of Western food imports. "We decided to show that it's a systematic problem," said Fontanka reporter Venera Galeyeva, on the quest to expose other fake foods since her cheese-burning video went viral. "The problem is not one specific producer. Globally the problem is that Russia does not have enough milk." Moscow has enforced an embargo on imports of most foods from the West since August 2014 in retaliation for Western sanctions imposed on Moscow over its involvement in the Ukraine conflict. On Friday Prime Minister Dmitry Medvedev officially signed off on extending the embargo until the end of 2017. Closing the market off from European parmesan and brie has created a booming domestic industry, but as milk production has not grown, many producers are forced to get creative, misleading consumers. "There is a milk deficit," said Vadim Semikin of the Institute for Agriculture Market Studies, giving a rough estimate of eight million tonnes last year. At the same time, palm oil imports grew by 25 per cent in 2015, he said, and companies use it to substitute for milk. 'Falling quality' Russia has claimed that the embargo is a good opportunity to support the country's agriculture. On Thursday, Medvedev argued that extending it for another 18 months was dictated by the "need to create comfortable and predictable conditions for our farmers". But the government's own analytical department concluded in April that Russian consumers have been the losers, observing a trend of "falling quality" of products and "appearance of fake cheese products on the market." In a sign of the scope of the problem, Russia's agriculture watchdog this year began to publish a "List of Honest Ones" of companies which actually use milk and cream to make their dairy foods. Others use anything from water to "starch, chalk, soap, baking soda, lime" and even plaster to dilute and conserve milk, the watchdog said last week, scandalising the milk industry. "Most domestic producers take advantage of the non-competitive market and don't rush to make good products," said Irina Tikhmyanova, spokeswoman for Roscontrol, a consumer protection NGO. Sixty per cent of 46 Russian dairy products tested by the group were recently shown to contain surrogates, she said. For meat products, the figure was even higher. Though recent polls showed that people are noticing food quality go down, many Russians still embrace the embargo. In a June poll by Levada centre independent pollster, 40 per cent of respondents said they were against allowing European products into Russia - up from 31 per cent in March 2015. Galeyeva of Fontanka said Russians with shrinking disposable incomes would just have to keep buying fake cheese as prices grow. "When you have just 300 Rubles ($4.70) to feed your family for the week, you won't be so picky," she said. (AFP)

Russia's food embargo creates counterfeit dairy industry

The deaths of 14 Nepali guards in Afghanistan have highlighted the Himalayan nation&#39;s role as supplier of security forces to the world, an industry fuelled by poverty and built on the centuries-old reputation of its Gurkha troops for courage and loyalty. 
 
While the number of Gurkha soldiers Britain recruits annually in the impoverished nation has fallen in recent years, global demand for Nepalis as private security guards remains high. 
 
&quot;Everyone wants a Gurkha to protect their assets -- from a billionaire in Hong Kong to private firms in Kabul,&quot; said Mahesh Shrestha, Nepal country manager for British security giant G4S. 
 
&quot;Gurkhas have always been a big craze as far as the market for security (personnel) is concerned,&quot; Shrestha told AFP. 
 
The industry provides lucrative jobs for retired Gurkhas as well as former Nepal army and police staff willing to risk their lives in conflict zones around the world. 
 
Nepalis were first recruited overseas by the British East India Company after the Anglo-Nepali war that ended in 1816. 
 
Impressed by their bravery, the British struck a deal to hire their former foes as soldiers, using Gurkha troops to crush riots in 19th-century India and fight for Britain in World Wars I and II. 
 
The Gurkhas&#39; World War I exploits also secured the Himalayan kingdom&#39;s sovereignty via a 1923 treaty between Nepal and Britain. 
 
Famed for their ferocity and skillful use of razor-sharp curved kukri knives, the Gurkhas have fought in every British conflict for the last two centuries. 
 
More than 45,000 have died in action. 
 
They have also enlisted in the Singapore police force and the Indian army, whose former chief of staff Sam Manekshaw is reported to have said: &quot;If a man says he is not afraid of dying, he is either lying or is a Gurkha&quot;. 
 
Today, private security firms seek to trade on that reputation when they advertise their recruitment of Nepalis -- including non-Gurkhas -- to prospective clients. 
 
As a result, Nepalis enjoy a virtual monopoly in the private security sector in countries like Malaysia, where companies are only allowed to hire them or locals as guards. 
 
&quot;Thanks to the Gurkhas&#39; fame... people think Nepalis are loyal, honest, hardworking men who can survive anywhere and cope with tough conditions,&quot; G4S&#39;s Shrestha said. 
 
Fuelled by desperation 
The hillside towns the Gurkhas come from are islands of relative prosperity in Nepal thanks to salaries and pensions which are substantially higher than local wages. 
 
Thousands of young men apply to join the British Gurkhas each year, but only around 230 make the final cut. Their tests include a 4.6-kilometre (2.9-mile) race up a steep hill while carrying a basket packed with rocks. 
 
The British army now employs around 2,500 Gurkhas, down from an all-time high of 112,000 during World War II, and many have taken jobs as security guards in conflict zones like Afghanistan, where 14 Nepalis working for the Canadian embassy were killed in a bomb attack this week. 
 
They are more expensive than Afghan security, but are seen as more reliable and their physical similarity allows them to blend in better than other foreigners. 
 
&quot;Young Nepali males don&#39;t really have many options at home and so they seek dangerous jobs overseas... because of their desperation,&quot; journalist Kunda Dixit told AFP. 
 
Nepali migrant workers play a critical role in propping up the country&#39;s economy: their remittances make up about 30 percent of gross domestic product. 
 
Authorities say some 3,300 Nepalis currently work in Afghanistan as security guards but accurate figures for the total number employed across the world are hard to come by. 
 
Despite the dangers, commentators say the deaths this week will do little to stop other Nepalis from venturing into war zones in desperate pursuit of work, as the country struggles to recover from last year&#39;s massive earthquake. 
(AFP)

Famed for their ferocity and skillful use of razor-sharp curved khukri knives, Gurkhas fight for the British, Indian and Nepalese armies

The deaths of 14 Nepali guards in Afghanistan have highlighted the Himalayan nation's role as supplier of security forces to the world, an industry fuelled by poverty and built on the centuries-old reputation of its Gurkha troops for courage and loyalty. While the number of Gurkha soldiers Britain recruits annually in the impoverished nation has fallen in recent years, global demand for Nepalis as private security guards remains high. "Everyone wants a Gurkha to protect their assets -- from a billionaire in Hong Kong to private firms in Kabul," said Mahesh Shrestha, Nepal country manager for British security giant G4S. "Gurkhas have always been a big craze as far as the market for security (personnel) is concerned," Shrestha told AFP. The industry provides lucrative jobs for retired Gurkhas as well as former Nepal army and police staff willing to risk their lives in conflict zones around the world. Nepalis were first recruited overseas by the British East India Company after the Anglo-Nepali war that ended in 1816. Impressed by their bravery, the British struck a deal to hire their former foes as soldiers, using Gurkha troops to crush riots in 19th-century India and fight for Britain in World Wars I and II. The Gurkhas' World War I exploits also secured the Himalayan kingdom's sovereignty via a 1923 treaty between Nepal and Britain. Famed for their ferocity and skillful use of razor-sharp curved kukri knives, the Gurkhas have fought in every British conflict for the last two centuries. More than 45,000 have died in action. They have also enlisted in the Singapore police force and the Indian army, whose former chief of staff Sam Manekshaw is reported to have said: "If a man says he is not afraid of dying, he is either lying or is a Gurkha". Today, private security firms seek to trade on that reputation when they advertise their recruitment of Nepalis -- including non-Gurkhas -- to prospective clients. As a result, Nepalis enjoy a virtual monopoly in the private security sector in countries like Malaysia, where companies are only allowed to hire them or locals as guards. "Thanks to the Gurkhas' fame... people think Nepalis are loyal, honest, hardworking men who can survive anywhere and cope with tough conditions," G4S's Shrestha said. Fuelled by desperation The hillside towns the Gurkhas come from are islands of relative prosperity in Nepal thanks to salaries and pensions which are substantially higher than local wages. Thousands of young men apply to join the British Gurkhas each year, but only around 230 make the final cut. Their tests include a 4.6-kilometre (2.9-mile) race up a steep hill while carrying a basket packed with rocks. The British army now employs around 2,500 Gurkhas, down from an all-time high of 112,000 during World War II, and many have taken jobs as security guards in conflict zones like Afghanistan, where 14 Nepalis working for the Canadian embassy were killed in a bomb attack this week. They are more expensive than Afghan security, but are seen as more reliable and their physical similarity allows them to blend in better than other foreigners. "Young Nepali males don't really have many options at home and so they seek dangerous jobs overseas... because of their desperation," journalist Kunda Dixit told AFP. Nepali migrant workers play a critical role in propping up the country's economy: their remittances make up about 30 percent of gross domestic product. Authorities say some 3,300 Nepalis currently work in Afghanistan as security guards but accurate figures for the total number employed across the world are hard to come by. Despite the dangers, commentators say the deaths this week will do little to stop other Nepalis from venturing into war zones in desperate pursuit of work, as the country struggles to recover from last year's massive earthquake. (AFP)

Gurkhas to guards: Nepalis doing dangerous jobs abroad

A sustained government spending on infrastructure like roads, railways, power and housing will propel India into the league of top global steel consuming nations in the next 10 years, said&nbsp;a top official of domestic steel giant SAIL&nbsp;. 
 
&quot;If you look at the massive infrastructure push by the government, even going by conservative estimates, steel demand will grow a lot. India will equal the global per capita consumption&nbsp;in 10 years,&quot; SAIL Chairman P K Singh told PTI. 
 
Per capita steel consumption in India, the world&#39;s third largest producer of the metal, stood at 59.4 kg per person in 2014, against a global average of 216.6 kg, data from industry body World Steel Association showed. 
 
The chief of India&#39;s largest steel producer added the country is at a &quot;take-off stage&quot; and all the &quot;requisite ingredients&quot; are in place, only a little push from the government was needed, which is now on its way. 
 
&quot;Look at the road sector, more highways are being built, which means more steel will be used. Similarly, in Railways more tracks are to be laid and we expect a huge jump in spending there. Power sector is also expanding, which again will boost demand for the metal,&quot; Singh said. 
 
According to him, the government&#39;s &#39;Housing for all&#39; is a novel initiative that will give impetus to steel demand. In automobiles, too, demand is rising for commercial vehicles as well as passenger cars which will further aid steel sector. 
 
According to a report by the Working Group on Steel for the 12th Five Year Plan period, the potential of raising per capita steel consumption in India is being supported by several factors. 
 
An estimated infrastructure investment of USD 1 trillion, projected growth in manufacturing at 11-12 per cent, rise in urban population, emergence of rural market for steel buoyed by projects such as Bharat Nirman, Pradhan Mantri Gram Sadak Yojana are prominent ones among them, it had said. 
 
Singh, however, cautioned against the rising overcapacity in steel across the globe, especially in China. 
 
&quot;We have to be cautious about the excess capacity in the world and in China. Some countries are dumping their products in India at cheaper rates and adversely impacting the health of domestic producers. Steel industry is of strategic importance and is the barometer of growth,&quot; he said. 
 
India is the &quot;only growth area&quot; globally and everyone is trying to get a &quot;share of this pie&quot;, Singh said adding that government needs to watch out for dumping of steel products so that domestic firms can participate with full vigour in the &#39;Make in India&#39; programme. 
 
He welcomed the imposition of a provisional minimum import price (MIP) on 173 steel products and hoped that government will continue with it beyond August, when it expires. 
 
As per government data, steel imports declined by 41 per cent to 0.546 million tonnes (MT) in May this year compared to the year-ago period. This was triggered by MIP and other measures like safeguard and anti-dumping duty. 
 
In April too, steel imports were down 15.5 per cent year- on-year at 0.654 MT 
 
(PTI)

Per capita steel consumption in India, the world's third largest producer of the metal, stood at 59.4 kg per person in 2014

A sustained government spending on infrastructure like roads, railways, power and housing will propel India into the league of top global steel consuming nations in the next 10 years, said a top official of domestic steel giant SAIL . "If you look at the massive infrastructure push by the government, even going by conservative estimates, steel demand will grow a lot. India will equal the global per capita consumption in 10 years," SAIL Chairman P K Singh told PTI. Per capita steel consumption in India, the world's third largest producer of the metal, stood at 59.4 kg per person in 2014, against a global average of 216.6 kg, data from industry body World Steel Association showed. The chief of India's largest steel producer added the country is at a "take-off stage" and all the "requisite ingredients" are in place, only a little push from the government was needed, which is now on its way. "Look at the road sector, more highways are being built, which means more steel will be used. Similarly, in Railways more tracks are to be laid and we expect a huge jump in spending there. Power sector is also expanding, which again will boost demand for the metal," Singh said. According to him, the government's 'Housing for all' is a novel initiative that will give impetus to steel demand. In automobiles, too, demand is rising for commercial vehicles as well as passenger cars which will further aid steel sector. According to a report by the Working Group on Steel for the 12th Five Year Plan period, the potential of raising per capita steel consumption in India is being supported by several factors. An estimated infrastructure investment of USD 1 trillion, projected growth in manufacturing at 11-12 per cent, rise in urban population, emergence of rural market for steel buoyed by projects such as Bharat Nirman, Pradhan Mantri Gram Sadak Yojana are prominent ones among them, it had said. Singh, however, cautioned against the rising overcapacity in steel across the globe, especially in China. "We have to be cautious about the excess capacity in the world and in China. Some countries are dumping their products in India at cheaper rates and adversely impacting the health of domestic producers. Steel industry is of strategic importance and is the barometer of growth," he said. India is the "only growth area" globally and everyone is trying to get a "share of this pie", Singh said adding that government needs to watch out for dumping of steel products so that domestic firms can participate with full vigour in the 'Make in India' programme. He welcomed the imposition of a provisional minimum import price (MIP) on 173 steel products and hoped that government will continue with it beyond August, when it expires. As per government data, steel imports declined by 41 per cent to 0.546 million tonnes (MT) in May this year compared to the year-ago period. This was triggered by MIP and other measures like safeguard and anti-dumping duty. In April too, steel imports were down 15.5 per cent year- on-year at 0.654 MT (PTI)

India to equal world per capita steel consumption in 10 years

DETROIT (Reuters) - Automotive industry executives are less interested in pursuing acquisitions this year as compared to the last year. They prefer deals that minimize political or technology risks, according to a new survey by Ernst and Young. 
 
About 52 per cent of senior auto industry executives that were surveyed said they planned to pursue an acquisition within the next 12 months, down from 59 percent in October 2015 and 70 percent in April 2015, Ernst and Young found. The consulting and accounting firm said it surveyed more than 100 senior auto industry executives for its twice yearly Automotive Capital Confidence Barometer.&nbsp; 
 
&quot;They are trying to spread out and minimize their risk,&quot; Mark Short, global automotive and transportation industry leader for Ernst and Young&rsquo;s transaction advisory services, told Reuters. Those risks can be political, economic and technological, he said. 
 
Some recent high profile automotive deals, including Toyota Motor Corp`s investment in Uber Technologies Inc [UBER.UL], reflect automakers` efforts to get a foothold in new technology or business models, such as self-driving cars and ride hailing. 
 
The United States, the UK, Germany, India and Brazil are the top countries targeted for investment among auto executives surveyed, Ernst and Young found. 
 
&ldquo;For the first time in a very, very long time China&rsquo;s not in our top five market destinations for deals,&rdquo; Short said. 
 
Auto makers and suppliers poured money into China as it grew to become the world&rsquo;s largest auto market by vehicle sales. Now, there is concern that the Chinese economy may be slowing. 
 
In Brazil, vehicle sales are slumping with the rest of the economy, but assets &ldquo;are very, very cheap,&rdquo; Short said. 
 
Companies are doing &ldquo;a lot of scenario planning&rdquo; for the possibility that British voters will opt to exit the European Union, Short said. So far, Ernst and Young has not seen potential deals get put off because of uncertainty over Britain&rsquo;s future in the EU, he said. 
 
About a third of executives surveyed said they are looking for alliances with other companies to make money from underused assets or reinforce research and development. Short said automotive companies and technology companies can ally themselves to explore ventures without committing significant cash.

utomotive industry executives are less interested in pursuing acquisitions this year as compared to the last year. They prefer deals that minimize political or technology risks, according to a new survey by Ernst and Young.

DETROIT (Reuters) - Automotive industry executives are less interested in pursuing acquisitions this year as compared to the last year. They prefer deals that minimize political or technology risks, according to a new survey by Ernst and Young. About 52 per cent of senior auto industry executives that were surveyed said they planned to pursue an acquisition within the next 12 months, down from 59 percent in October 2015 and 70 percent in April 2015, Ernst and Young found. The consulting and accounting firm said it surveyed more than 100 senior auto industry executives for its twice yearly Automotive Capital Confidence Barometer. "They are trying to spread out and minimize their risk," Mark Short, global automotive and transportation industry leader for Ernst and Young’s transaction advisory services, told Reuters. Those risks can be political, economic and technological, he said. Some recent high profile automotive deals, including Toyota Motor Corp`s investment in Uber Technologies Inc [UBER.UL], reflect automakers` efforts to get a foothold in new technology or business models, such as self-driving cars and ride hailing. The United States, the UK, Germany, India and Brazil are the top countries targeted for investment among auto executives surveyed, Ernst and Young found. “For the first time in a very, very long time China’s not in our top five market destinations for deals,” Short said. Auto makers and suppliers poured money into China as it grew to become the world’s largest auto market by vehicle sales. Now, there is concern that the Chinese economy may be slowing. In Brazil, vehicle sales are slumping with the rest of the economy, but assets “are very, very cheap,” Short said. Companies are doing “a lot of scenario planning” for the possibility that British voters will opt to exit the European Union, Short said. So far, Ernst and Young has not seen potential deals get put off because of uncertainty over Britain’s future in the EU, he said. About a third of executives surveyed said they are looking for alliances with other companies to make money from underused assets or reinforce research and development. Short said automotive companies and technology companies can ally themselves to explore ventures without committing significant cash.

Auto executives going soft on acquisitions, says E&Y.

After a break of 20 years,&nbsp;Afghanistan&#39;s first&nbsp;cementfactory is once more clanking noisily in the countryside near Kabul as crushed-up limestone rocks rattle along a battered conveyor belt to the newly restored kiln.

In an area desperately short of industry and jobs, workers hope the relaunch of the plant, built by Czech engineers in 1957 and shut by the Taliban in 1995, heralds the revival of an industry shattered by decades of war and destruction.

&quot;By selling our products and improving the factory&#39;s production, we can avoid having our young generation go abroad,&quot; said Amir Mohammad. &quot;If there are job possibilities, they can stay with their families and look after their children.&quot;

But the outdated state-owned plant 75 km (47 miles) outside Kabul also shows how far there is to go before that promise can be achieved and there are serious questions whether the plant has a viable future unless it is thoroughly modernised.

Jabal Saraj, which now employs 150 workers, is a small factory with daily capacity of 100 tonnes and equipment that is at least 40 years out of date, the U.S. Geological Survey said in a 2011 report.

&quot;We&#39;ve tried our best and got the factory running using its old machinery,&quot; said Abdul Wakil, one of a group of former workers who have returned to help get the plant working again. &quot;As long as we have electricity, it will work.&quot;

Talks with a private operator to develop a separate, larger plant at Jabal Saraj have run for months, but for now, the government has decided the old plant still serves a purpose, a spokesman for the country&#39;s mines and petroleum ministry said.

&quot;This old factory is useful and has a profitable production capacity,&quot; Mohyaddin Noori added. &quot;It provides job opportunities.&quot;

Afghanistan&#39;s only other major&nbsp;cement&nbsp;manufacturer, the Ghori&nbsp;cement&nbsp;plant, has daily capacity of more than 1,000 tonnes, but domestic industry is dwarfed by the millions of tonnes of imports from neighbours, including Pakistan and Iran.

That fierce competition makes it tough to find domestically produced&nbsp;cement&nbsp;in Kabul&#39;s main wholesale markets, even despite the fact that domestic&nbsp;cement&#39;s bulk and relatively low cost should penalize foreign&nbsp;cement, trucked in hundreds of miles.

&quot;We have only Pakistani&nbsp;cement,&quot; said trader Ershad Shinwari. &quot;Afghan-made&nbsp;cement&nbsp;is not coming to us.&quot;

Demand for building materials has fallen sharply since international forces left in 2014 but the market has not collapsed and director Mohammadi hopes for domestic growth.

&quot;There is huge demand for&nbsp;cement&nbsp;in&nbsp;Afghanistan,&quot; he said. &quot;We&#39;ve got the factory working, so it will give investors a chance.&quot;

For the moment, however, Jabal Saraj relies on government subsidy to survive. The economics may be tough, but it is people nearby who are mainly looking for work.

&quot;We ask the other countries to help this factory and provide new machinery to replace the old machines,&quot; said plant worker Wazir Mohammad.

&quot;It will be very useful for our people as long as there is poverty in&nbsp;Afghanistan&nbsp;and everyone suffers insecurity.&quot;

After a break of 20 years,?Afghanistan's first?cementfactory is once more clanking noisily in the countryside near Kabul as crushed-up limestone rocks rattle along a battered conveyor belt to the newly restored kiln. In an area desperately short of industry and jobs, workers hope the relaunch of the plant built by Czech engineers in 1957 and shut by the Taliban in 1995.

After a break of 20 years, Afghanistan's first cementfactory is once more clanking noisily in the countryside near Kabul as crushed-up limestone rocks rattle along a battered conveyor belt to the newly restored kiln. In an area desperately short of industry and jobs, workers hope the relaunch of the plant, built by Czech engineers in 1957 and shut by the Taliban in 1995, heralds the revival of an industry shattered by decades of war and destruction. "By selling our products and improving the factory's production, we can avoid having our young generation go abroad," said Amir Mohammad. "If there are job possibilities, they can stay with their families and look after their children." But the outdated state-owned plant 75 km (47 miles) outside Kabul also shows how far there is to go before that promise can be achieved and there are serious questions whether the plant has a viable future unless it is thoroughly modernised. Jabal Saraj, which now employs 150 workers, is a small factory with daily capacity of 100 tonnes and equipment that is at least 40 years out of date, the U.S. Geological Survey said in a 2011 report. "We've tried our best and got the factory running using its old machinery," said Abdul Wakil, one of a group of former workers who have returned to help get the plant working again. "As long as we have electricity, it will work." Talks with a private operator to develop a separate, larger plant at Jabal Saraj have run for months, but for now, the government has decided the old plant still serves a purpose, a spokesman for the country's mines and petroleum ministry said. "This old factory is useful and has a profitable production capacity," Mohyaddin Noori added. "It provides job opportunities." Afghanistan's only other major cement manufacturer, the Ghori cement plant, has daily capacity of more than 1,000 tonnes, but domestic industry is dwarfed by the millions of tonnes of imports from neighbours, including Pakistan and Iran. That fierce competition makes it tough to find domestically produced cement in Kabul's main wholesale markets, even despite the fact that domestic cement's bulk and relatively low cost should penalize foreign cement, trucked in hundreds of miles. "We have only Pakistani cement," said trader Ershad Shinwari. "Afghan-made cement is not coming to us." Demand for building materials has fallen sharply since international forces left in 2014 but the market has not collapsed and director Mohammadi hopes for domestic growth. "There is huge demand for cement in Afghanistan," he said. "We've got the factory working, so it will give investors a chance." For the moment, however, Jabal Saraj relies on government subsidy to survive. The economics may be tough, but it is people nearby who are mainly looking for work. "We ask the other countries to help this factory and provide new machinery to replace the old machines," said plant worker Wazir Mohammad. "It will be very useful for our people as long as there is poverty in Afghanistan and everyone suffers insecurity."

Hopes and fears for jobs as Afghan cement factory reopens

industry-0

Industry, News on Industry, stories on Industry, articles on Industry, Industry stories at Wion, Industry news, Industry latest news

industry 0