Vietnam joins Russia-led free trade zone www.rt.com

World Bank expects 6.4% growth of Asian economies www3.nhk.or.jp

Japanese firms seek business opportunity in Iran www3.nhk.or.jp

IMF warns of financial stability risks www.bbc.com

Hitachi Construction to buy Australia’s Bradken for $528 million www.mining.com

Hitachi Construction Machinery, the world’s No.1 maker of mammoth excavators, has made a $528 million offer (A$689 million) to acquire Australian mining supplier Bradken Ltd.

China to reach target in cutting coal overcapacity by year-end www.mining.com

China’s effort to cut surplus capacity in the coal industry and, at the same time, manage pollution in most of its major cities, are paying off earlier than anticipated, with the world’s largest producer of the commodity anticipating it will reach its targets by year-end, which is earlier than planned.

Toyota launches 'baby' robot for companionship www.bbc.com

A palm-sized robot that can hold conversations will go on sale in Japan next year, developer Toyota has announced.
Kirobo Mini, who was 10cm (4in) high, had been designed to provide companionship, the company said.
And it could tailor conversations to include comments about journeys based on data from its owner's vehicle.
It also has childlike attributes, but a robotics expert told the BBC a robot could not be a substitute for a child.
"He wobbles a bit, and this is meant to emulate a seated baby, which hasn't fully developed the skills to balance itself," Fuminori Kataoka, Kirobo Mini's chief design engineer, told the Reuters news agency.
"This vulnerability is meant to invoke an emotional connection."
Prof Dr Kerstin Dautenhahn, from the school of computer science at the University of Hertfordshire, said the "cute" robot may appeal to young people.

Aeon brings Japanese sensibilities to Myanmar food shopping www.asia.nikkei.com

YANGON -- Japanese supermarket giant Aeon has become the first foreign retailer to enter Myanmar since the 2011 transition to civilian rule, a development that could herald change in a retail industry still dominated by traditional markets.

Aeon signage, a familiar sight to Japanese consumers, made its Myanmar debut Friday in a largely middle-class area along a major road in Yangon's North Okkalapa district. The store packs some 8,000 products into a relatively compact 613 sq. meters of sales-floor space. The lineup includes about 80 items imported from Japan, including selections from Aeon's Topvalu private brand. About 70% of the products are imported from Thailand or elsewhere, with the remaining 30%, mainly fresh foods, coming from Myanmar.

A slice of Japan

Upon entering the store, the first thing that catches the eye is a refrigerated case featuring neatly wrapped packages containing three or four slices of melon or watermelon, priced at 600 kyat to 800 kyat (47 cents to 63 cents).

"Foods from Japan like cup noodles can be eaten quickly and easily," a worker at a beverage plant noted. The 24-year-old praised the low prices, as well as the store's thoughtfulness in offering small servings of fruit that can be polished off before they go bad.

Refrigerated products are a rare sight in Myanmar supermarkets, since quality control is difficult. Produce is typically sold by the piece. Refrigerators are also relatively uncommon in households, so if a customer buys a watermelon, for example, it is usually eaten all at once. The Aeon store offers small packs of sliced fruit, meat and fish, giving customers the option of Japanese-style shopping -- buying only as much as they need, when they need it.

Another peculiarity is prepared foods such as boxed meals, which are almost unheard of in Myanmar supermarkets or convenience stores. Ahead of the supermarket opening, Aeon set up a central kitchen in Yangon, where about 10 Myanmarese staffers cook food tailored to local tastes. A lunch box with curry, rice and salad costs 1,280 kyat, while rice balls with pork or other fillings go for 550 kyat. By comparison, a noodle dish from a local vendor typically costs around 800 kyat.

Aeon announced in August a joint venture with Creation Myanmar Group of Cos., a local company which operates 14 supermarkets in the country under the Orange brand. The venture, Aeon Orange, aims to open 10 or so stores in five years. "This is a milestone in transplanting the Japanese values of convenience, security and safety," Aeon Orange President Yoshimitsu Kawato enthused.

An industry in transition

Modern retail is still a work in progress in Myanmar. Local player City Mart Holding, established in 1996, runs about 40 supermarkets in the country. But these stores serve mostly upper- and middle-class consumers in urban areas. Most people still turn to traditional public markets, known as zei. Modern retailers such as supermarkets account for just 10% or so of the retail industry.

Kremlin-Owned Rosneft Cleared to Privatize Russian Oil Giant Bashneft www.themoscowtimes.com

State-owned energy giant Rosneft will be able to take part in the privatization of Bashneft, Russia's First Deputy Prime Minister Igor Shuvalov has announced.

Rosneft's participation in the deal has been the subject of fierce debate in Russia. Although the company is not directly controlled by the Kremlin, the Russian state owns a 50.8 percent stake in the firm through its parent company, Rosneftegaz.

Both presidential aide Andrei Belousov and Deputy Prime Minister Arkady Dvorkovich have opposed the idea, with Belousov even labeling the idea “absurd.”

Prime Minister Dmitry Medvedev even agreed to postpone the prizatization because he and President Vladimir Putin could not decide on whether to grant Rosneft access to the deal. One government official said that Rosneft CEO Igor Sechin had “put a lot of pressure” on the government to grant him the permission he needed.

A turning point came when President Putin told Bloomberg that the Russian budget depended on selling Bashneft to the highest bidder- and that the state should not discriminate against any market participant.

One senior official revealed that Rosneft had promised to outbid its competitors, but declined to reveal the exact amount of the bid. The government has already given the 50.08 percent stake a preliminary value of from 297 billion ($4.7 billion) to 315 billion rubles ($5 billion).

Sechin has justified Rosneft's bid by claiming that the company will experience “significant synergy” — adding up to 160 billion rubles to the value of the company — by buying the Bashneft stake.

This is significant due to the 19.5 percent stake which the Russian government holds in Rosneft— although the Kremlin has planned to sell the shares for some time. Under Sechin's proposed scheme, Rosneft would first purchase Bashneft for a higher price than other bidders, thereby putting more money into the government coffers and raising the Rosneft's value. Only then would the government sell its 19.5 percent stake in Rosneft.

The Finance Ministry has budgeted 382 billion rubles ($6.1 billion) in privatization revenues in 2016, factoring in the sale of diamond company Alrosa as well as Bashneft. Yet the privatization of the Rosneft stake at this higher price could generate as much as an additional $11 billion of revenue.

Senior Rosneft managers stand to benefit from the plan as well. According to the Rosneft website, CEO Igor Sechin owns a 0.1273 percent share in the company, Deputy Chairman of the Board Matthias Warnig holds 0.0009 percent, Independent Director Donald Humphreys owns 0.0021 percent, and Management Board members Yury Kalinin, Didier Casimiro, Peter Lazarev, Eric Lion, Yury Narushevich, Zeljko Runje, and Andrei Shishkin own 0.0019 percent, 0.0043 percent, 0.0042 percent, 0.0051 percent, 0.00006 percent, 0.0036 percent, and 0.0036 percent respectively.

Yet the plan also has potential sticking points. Rosneft currently has a great deal of liquidity, but some are already concerned about where the money to buy the Bashneft stake will come from. “There should definitely be no state money in any form used in the deal,” one senior official warned.

New asset management giant in Asia www3.nhk.or.jp

Japan's Mizuho Financial Group and major life insurer Dai-ichi Life Holdings have set up a new company to integrate their asset management services. Asset Management One is one of the biggest firms of its type in Asia.