World Bank Projects China Growth Above Official Target at 7.6%

China to meet growth targets in 2014, says the World BankREUTERS

China's economy would meet its official growth target of 7.5% for 2014, although the pace of growth would moderate over the medium term in line with the country's continued economic transformation, according to the World Bank.

In its latest assessment of China's economy, the bank said China's growth would decline to 7.6% in 2014 and 7.5% in 2015 from 7.7% in 2013.

The Chinese government had earlier set its yearly economic growth target at 7.5% for the third time as it aims to achieve stable and balanced growth in the long run while implementing much needed reforms.

Meanwhile, the International Monetary Fund is expecting China to grow by around 7.5% in 2014 and then slow to around 7% in 2015.

China Economic Update, JuneWorld Bank

China is presently the world's fastest-growing major economy with annual gross domestic product growth rates averaging 10% for the last 30 years.

However, its economic growth has slowed down recently due to increasing exposure to foreign markets. In 2013, the economy expanded 7.7%, the lowest pace in more than a decade.

In the first quarter, the economy expanded at a pace of 7.4%, the lowest in 18 months due to weak domestic and international demand.

"The slowdown in the first quarter reflected a combination of dissipating effects of earlier measures to support growth, a weak external environment, and tighter credit, especially for real estate," the World Bank said.

Nevertheless, "robust consumption, a recovery of external demand, and new growth supporting measures, including infrastructure investments and tax incentives for small and medium-sized enterprises," in the recent periods helped the economy.

The bank noted that a disorderly deleveraging of local government debt, an abrupt change in the cost of, or access to, capital for sectors such as real estate, and weak growth in advanced countries still raise tensions.

The bank added that the country should undertake fiscal and financial sector reforms, which were part of the government's reform agenda outlined in November 2013, in order to avoid medium term risks. The measures include effectively managing the shadow banking system and reducing local government debt.

"In the medium term, these policy measures will improve the quality of China's growth – making it more balanced, inclusive and sustainable and lay the foundation for sound economic development," said Karlis Smits, senior economist at the World Bank.

Samsung Heirs Face Whopping $6bn Inheritance Tax Bill at 50% Korean Rate

A file photograph of Samsung Electronics chairman Lee Kun-heeReuters

The heirs of Lee Kun-hee, chairman of Korean electronics giant Samsung, are facing a huge and unavoidable inheritance tax bill, as the 72-year-old is not likely to return to the company due to ill health.

His son Jay Lee, who is expected to be the heir apparent, and two daughters, Boo-jin and Seo-hyun, could face an inheritance tax bill of about $6bn (£3.6bn, €4.4bn), taking into account South Korea's tax rate for the ultra-rich at 50%, Reuters reported.

Lee Kun-hee's assets are mostly held in shares of Samsung Electronics and Samsung Life insurance, which currently have a market value of about 13tn won ($12.7bn). The likely tax bill for the Lee family would be about 6tn won, more than triple the 1.7tn won that South Korea collected in inheritance taxes in 2012.

Even at the great tax expense, the Lee family is expected to retain the shareholdings as they are crucial to keep management control of Samsung group's various affiliates, according to analysts.

"Without inheriting Chairman Lee Kun-hee's shares, the Lees will not be able to retain both ownership and control two generations from now," brokerage E*Trade Korea said in a report.

"The typical strategy is to adjust the amount of assets before death, take advantage of deductibles that are legally permitted or gift assets to push down the inheritance tax bill in advance. But at 6 trillion won, deductibles don't have much meaning," Reuters quoted as saying Ku Sang-su, a certified public accountant at law firm Jipyong.

"Once Chairman Lee passes, there aren't many options to reduce the inheritance tax."

Lee Kun-hee was admitted to hospital in May following a heart attack, and his condition is said to be gradually improving.

The heirs are forced to pay the bill also due to possible public condemnation on dodging.

From the Samsung group, Samsung Everland Inc, a key holding company within the group, and IT solutions affiliate Samsung SDS have announced initial public offerings. The deals are expected to help the heirs pay the looming inheritance tax bill, along with tightening their grip on the conglomerate.

Lee's three children hold big stakes in Samsung Everland and Samsung SDS, acquiring them at prices far below market value in various deals during the 1990s.

In connection with deals, Lee Kun-hee was charged with breach of trust and tax evasion in 2008-2009 trials, and was given a three-year jail sentence, but was freed following a presidential pardon.

The heirs may also reduce the tax burden by increasing dividends from affiliates and seeking a multi-year payment plan, according to analysts

Underwater Iron Man Suit To Help in Search for World's Oldest Computer

Exosuit, the world's most advanced robotic diving suit, is to be deployed in the hunt for an Antikythera mechanism.Exosuit

A robotic diving suit that acts as a "wearable submarine" is to be used in the search for the world's oldest computer.

The Exosuit was originally designed for diving in New York's waste water treatment plants but will now be deployed in the Aegean Sea in an archeology expedition to locate an Antikythera mechanism, believed to be lost in a Roman shipwreck over 2,000 years ago.

The $1.5 million (£895,000) suit is the world's most advanced robotic diving suit and operates with Iron Man-like thrusters to propel and manoeuvre the diver at depths of up to 1,000 feet.

Scuba divers in standard suits are currently limited by their air supply and the long decompression times required to resurface.

The Exosuit's compression and oxygen systems offer divers complete protection from the ocean's pressure with up to 50 hours of life support.

"It's basically a wearable submarine," said Phil Short, a specialist taking part in the dive. "The pressure inside is no different from being in a submarine or in fresh air. We can go straight to the bottom, spend five hours there and come straight back to the surface with no decompression."

The suit uses articulated joints and claw manipulators to allows divers to maintain the dexterity needed to perform delicate tasks.

"It's like chopsticks," Short said. "The first time you use them, you get covered in food. Then you start to get proficient. One drill we've been doing is to use one set of manipulators to open a folding knife attached to the other, then lock it and close it."

The first saltwater trials took place last month at the Woods Hole Oceanographic Institution (WHOI) in Massachusetts, ahead of a planned dive to the Mediterranean shipwreck in September.

The underwater excavation attempt will take place on the same site that fragments of an Antikythera mechanical device - an anologue computer designed to predict astronomical positions and eclipses - was retrieved from a century ago. Archeologists believe that another device is still submerged with the wreck.

Egypt: Writer Karam Saber Sentenced to Five Years in Jail for Atheist Book

Karam SaberKaram Saber Twitter profile

Activist and writer Karam Saber has been sentenced to five years in jail in Egypt for writing a book considered by the authorities as promoting atheism in the country.

When the author published "Where Is God?" -- a collection of short stories about poor farmers in Egypt -- in 2011, some citizens from Beni Sueif filed a legal complaint alleging the work promoted atheism and contradicted religious precepts.

Saber rejected the accusations, but the court in Beni Sueif sentenced him to jail and fined him EGP1,000 (£83) – the maximum sentence – for contempt of religion.

Hamdy Al-Assiuti, one of the members of Saber's defence team, said the court disregarded the evidence submitted by Saber's lawyers.

Human Rights Watch (HRW) has urged the Egyptian government to revoke the sentence and repeal laws violating freedom of expression.

"Rather than prosecuting Karam Saber for giving voice to poor farmers, authorities should bring Egypt's laws into harmony with its new constitution and international obligations" said Joe Stork, deputy Middle East and North Africa director. "Freedom of expression is at the heart of a tolerant, democratic society."

According to article 98 of the Egyptian Penal Code, "exploiting religion in spreading, either by words, in writing, or in any other means, extreme ideas for the purposes of inciting strife, ridiculing or insulting [the Abrahamic faiths] or a sect following it, or damaging national unity", is punishable with prison sentences of between six months to five years and fines of EGP500-1,000.

However, article 19 of the International Covenant on Civil and Political Rights (ICCPR), to which Egypt is a state party, upholds the right to freedom of expression.

According to the United Nations Human Rights Committee, which interprets the ICCPR, "prohibitions of displays of lack of respect for a religion or other belief system, including blasphemy laws, are incompatible with the Covenant".

Stork concluded: "Although Egyptian authorities claim blasphemy laws maintain social peace, they often have the opposite effect.

"Prosecuting people for beliefs peacefully expressed validates, rather than combats, intolerance."

Standard Chartered Suspends Some Metal Financing After Qingdao Port Probe

Qingdao port in north-east China is investigating amounts of metals stored at the port(Reuters)

Standard Chartered has suspended new metal financing to some Chinese customers following an investigation into trade financing at the port of Qingdao, according to Reuters sources.

Banks and trading houses are reassessing their exposure in the wake of the probe.

A Standard Chartered client was told by the bank that it had stopped giving "inventory financing" to any new deals and that the bank would not roll over its deals when they expired, Reuters reported.

A Singapore-based source who trades physical copper and ships it to China told Reuters that the bank had stopped financing new deals.

"It's official. Right now they don't renew financing deals...and stop financing new deals," said the source.

A Standard Chartered spokeswoman said the bank was monitoring events in Qingdao but did not comment on its financing arrangements.

The South Africa-based Standard Bank Group announced on Wednesday it had launched an investigation into irregularities at Qingdao port.

"Standard Bank Group is not yet in a position to quantify any potential loss arising from these circumstances," it said in a statement.

The bank added it will work with the local authorities as part of its investigations.

Bloomberg reported that the port is counting industrial metals held in warehouses in a bid to determine whether the amounts match those pledged to banks as collateral for loans. The probe comes amid concern that some metals have been counted multiple times, according to Bloomberg sources.

Shares in Qingdao port are due to list on the Hong Kong stock exchange on Friday.

Brazilian Tribe Has World's Highest Suicide Rate

Guarani tribe in Mato Grosso do Sul state, Brazil, has the highest suicide rate.Reuters

The world's suicide rate is highest among Brazil's Guarani tribe, a new study reveals.

The study by Indigenous Missionary Council (CIMI) suggests that at least 72 Guarani people committed suicide in 2013, the highest number of suicide recorded in 28 years.

Most of the Guarani people, who hanged themselves were aged between 15 and 30 years with some as young as 12 years old.

"They have no future, no respect, no work and no land to plant and live. Choose to die because they are actually already dead inside," a Guarani man said.

Guarani people are one of the first communities contacted by Europeans in South America about 500 years ago. They live in the southern Brazilian state of Mato Grosso do Sul.

According to the study, in the period between 1986 and 1997, 244 deaths by suicide were recorded among the Guarani, a number that has almost tripled in the last decade with 684 cases reported between 2000 and 2013.

The main cause for the suicide by Guarani people has been the loss of their ancestral lands, according to tribal rights group Survival International.

Their lands are being used for setting up sugarcane plantations and cattle ranches to meet the needs of Brazil's biofuel market.

Most recently, the Coca-Cola Company was dragged into the tribe's land conflict as the beverage giant sources sugar from Bunge, which buys sugar cane from five farms located on the Guarani lands.

"Coca-Cola is contributing to the destruction and misery of the Guarani Indians because it is buying sugar from a company which sources sugar cane from land stolen from the Guarani. Let my relatives, the Guarani, live!" Amazon Indian Nixiwaka told Survival.

China Chops off Mountain Tops to Make Room for More People

A woman walks out of her cave home on the outskirts of Yan'an, northwest China's Shaanxi provinceReuters

China has taken to cutting off the tops of mountains in order to accommodate its increasing population.

According to a report in Nature, local governments started removing the tops of mountains about 10 years ago in order to fill valleys so there is more land to build upon.

However, the report said moving land in this way could be dangerous – no research was carried out to establish the effect on the environment, economics or the effectiveness of techniques used.

Mountain moving has taken place in cities including Chongqing, Shiyan, Yichang, Lanzhou and Yan'an, with the Yan'an project doubling the city's current area through the creation of 78.5sq/km of flat land.

However, the deposits of silt found in Yan'an can subside when wet which could lead to structural collapse.

The report warns: "Without cooperation, the land-creation campaigns could drain local and national economies and irrevocably damage watercourses and ecosystems."

Land creation, it says, is akin to "performing major surgery on Earth's crust" and while it has been done in the past, never before on such a great scale. It has already created water and air pollution, soil erosion and the destruction of forests and farmlands.

Yan'an is surrounded by mountains and to make space it is chopping the tops off.Google Earth

"Many land-creation projects in China ignore environmental regulations, because local governments tend to prioritise making money over protecting nature," the report said.

"When air pollution associated with the Lanzhou project became visible in April 2013, work was halted pending an environmental assessment. Four weeks later, construction resumed because of mounting costs to the local government and contractors. The assessment has yet to be completed."

The authors said there is insufficient research into land creation and the assumption of economic benefits is not necessarily true.

They said China should invite US experts that have practical experience of moving land to participate in the projects, while the government must "accelerate research efforts urgently":

"We call on the Chinese government to accelerate research efforts urgently. With good guidance, land creation could proceed with fewer risks and more benefits.

"Economists need to assess the costs and benefits of land creation projects and suggest ways to reduce the risks before these projects begin. Where high economic risks and low profitability are predicted, projects should not proceed even if they are technically feasible, at least for now. Where there is no profit, governments should be dissuaded from going ahead."

Citing an ancient Chinese fable, The Foolish Old Man who Removed the Mountains, the authors conclude: "As in the ancient fable, China is moving mountains. Until we know more about the consequences, we urge governments to seek scientific advice and proceed with caution."

Hot Shots Photos of the Day: Grasshopper Burger, England v Ecuador, French Open

Grant and Mitchell, two chimpanzee brothers at ZSL Whipsnade Zoo, celebrate their 18th birthday with another chimp. They were named by EastEnders actress Pam St Clements after she visited the Zoo on the day both chimps were born. They received presents filled with their favourite foods, including banana and grapesZSL Whipsnade Zoo

Chef Luke Venner presents a gold and caviar-enriched lobster roll that sells for $160 (£95.50) at BLT Fish restaurant in New YorkReuters

A patron shows a grasshopper burger piled high with dried crickets and mealworms during a 'Pestaurant' event in Washington, DCAFP

Activists wearing masks depicting G7 leaders protest against wealth inequality outside the European Council building in Brussels. The leaders depicted are (L-R) Japanese Prime Minister Shinzo Abe, British Prime Minister David Cameron, German Chancellor Angela Merkel, Canadian Prime Minister Stephen Harper, French President Francois Hollande, US President Barack Obama and Italian Prime Minister Matteo RenziReuters

Thai soldiers dance with residents at a military event organised to 'return happiness to the people' at Victory Monument, the site of recent anti-coup rallies in BangkokAFP

Leon Gautier, 91, attends a ceremony in Colleville-Montgomery, France. Gautier landed on the beach in Ouistreham with French Captain Philippe Kieffer's green berets commando unit special forces on June 6, 1944Reuters

D-Day veteran Paul Butler, 88, from Oxfordshire, walks past a mural in Arromanches-les-Bains on the Normandy coastReuters

Brazilian artist Jambeiro paints a mural of Hulk pulling Brazil to victory at the 2014 World Cup in Rio de JaneiroReuters

Frank Lampard and Rickie Lambert of England check on injured Alex Oxlade-Chamberlain during the international friendly match against Ecuador in Miami Gardens, FloridaGetty

Rafael Nadal of Spain returns the ball to his compatriot David Ferrer during their men's quarter-final match at the French Open tennis tournament. Nadal now faces Andy Murray in the semi-finalsReuters

A worker uses a rope to move through a pile of empty plastic bottles at a recycling workshop in MumbaiReuters

Investigators inspect the scene of a US military jet crash in Imperial, California. The AV-8B Harrier jet crashed in a Southern California desert town, damaging homesReuters

An anti-government protester uses a makeshift shield during a protest against President Nicolas Maduro's government in CaracasReuters

A mother who fled from fighting in Slovyansk, holds her baby in their temporary accommodation in the town of Nizhnaya Krinka in eastern UkraineReuters

Scotland Yard detectives move a tent onto an area during the search for missing British girl Madeleine McCann in Praia da Luz, PortugalReuters

Many Alibaba Employees Set to Become Millionaires After $41bn IPO Windfall

Alibaba

A large number of employees at Chinese e-commerce giant Alibaba are set to become millionaires following the company's New York listing, which could be the largest initial public tech offering so far.

Reuters reported that Alibaba is counselling its employees on how to deal with their huge windfall earnings, warning them against squandering money on luxury goods.

The company is expected to have a valuation of more than $150bn (£90bn, €110bn) after its US IPO. With a 26.7% shareholding through stock options and other incentives, former and current Alibaba employees could unlock about $41bn once they are free to sell their shares some time after the IPO.

Bankers and financial planners told Reuters that some employees have enquired if BMW sells cars in Alibaba's corporate orange. Meanwhile, others may invest the windfall gains in North American property and tech start-ups in the home country.

Alibaba has been preparing employees for years on how to effectively manage the windfall, as a sudden share sale by employees could push the company into chaos. It also has concerns that employees may quit the company for other options with substantial amounts at hand.

"It may be difficult for us to continue to retain and motivate these employees, and this wealth could affect their decisions about whether or not they remain with us," the company said in its IPO prospectus.

Former Chief Operating Officer Savio Kwan was among the counsellors who talked to employees about leadership, personal development and business goals.

"One thing Jack (Ma) and Savio did was from the early days prepare employees for the effects of having wealth," Reuters quoted as saying Porter Erisman, a former Alibaba vice-president.

"I remember Savio giving a speech about what money means, and he encouraged people to think of money as something that offered more choices. Those choices don't have to be material goods."

India Likely to Ease Rules for Foreign Online Retailers in July Budget

Foreign e-commerce comapnies such as eBay could sell their own products in India under the proposed reforms.Ebay

India is likely to ease rules for foreign online retailers, allowing them to sell their own products in addition to sourcing from third parties, as the e-commerce sector is expected to contribute up to 4% to the country's economy.

Reuters reported that the new reform will be announced along with the upcoming budget in July – the first one by the newly-formed government led by Prime Minister Narendra Modi.

Foreign e-commerce giants such as Amazon and eBay operate in the country as sales platforms, and are not allowed to sell products they have sourced themselves. The new rules would pave the way for global retailers to bring their supply chain, and cheaper goods, into India.

Government officials expect that a more robust online retail sector would spur manufacturing and consumption in the country, people privy to discussions within the government told Reuters. That would help revive the economy, which has recently been experiencing a growth slowdown.

"Most stakeholders support FDI (foreign direct investment)," a senior government official told Reuters, referring to e-commerce. "We have pitched for opening it up completely."

E-commerce represents just under 1% of India's gross domestic product (GDP) at present, but the share is expected to increase up to 4% by 2020, according to industry surveys.

The move to open up the online retail market to foreign players comes as Asia's third-largest economy is finding it hard to allow foreign direct investment in the brick-and-mortar retail sector.

Valued at about $500bn (£299bn, €367bn), India's retail market is one of the biggest and most price sensitive in the world, and foreign retailers are trying to capitalise on the ever-increasing spending power of the country's consumers.

The ruling Bharatiya Janata Party (BJP) had earlier said in its election manifesto that it would scrap the previous government's measure to allow majority foreign ownership in multi-brand retail.

International retail giants such as Wal-Mart and Tesco, who announced their plans to invest in India, are already facing trouble due to lack of clarity in FDI laws. The BJP is likely to clearly state its intent to stop FDI in supermarkets.