Showing posts with label Report. Show all posts
Showing posts with label Report. Show all posts

Tuesday, 9 August 2011

Mitsubishi Heavy says merger talks with Toshiba: report (Reuters)


TOKYO Mitsubishi Heavy Industries (7011) President said his company does not intend to initiate merger talks with Hitachi (6501), the Mainichi Daily reported Monday, in the first public denial from his Manager.


"There is no truth that we are entering the talks at this time," Mitsubishi Heavy President Hideaki Omiya told the newspaper in an interview, referring to negotiations for a merger with Hitachi.


Leaders Mitsubishi Heavy, the leading manufacturer of heavy machinery of Japan, had remained silent since media reports on Thursday that the company and Hitachi have begun talks on what could lead to the merger of Japan's largest domestic.


A clear rift between the two surfaced almost immediately after the first news reports.


Hitachi Chief Executive Hiroaki Nakanishi told reporters early Thursday that his company would make an announcement later that day regarding relations on their merger talks. But Hitachi, later issued a statement denying the reported merger talks, and the announcement did not take place.


In a separate statement the same day, Mitsubishi Heavy said it had no intention of accepting a merger as reported by the media.


Sources told Reuters that Mitsubishi Heavy had taken into account a partial integration of their social infrastructure, including power generation systems, while Hitachi is looking at a full merger.


For Mitsubishi Heavy, there are strong doubts of a merger, because it would probably be the one that is swallowed their difference in size given.


"Hitachi has an annual turnover of 9 billion yen and Mitsubishi has 3 trillion ... Mitsubishi Heavy people proud to be a leader of the Group Mitsubishi and we don't want to be resumed, "said a Mitsubishi Heavy, who declined to be named.


In the interview with the Mainichi newspaper, Mitsubishi Heavy President Omiya said his company had "several meetings" with Hitachi, confirming that he had taken into account the integration of some of its operations, including social infrastructure systems.


But he has denied the possibility of an all-out merger of the two, saying that his company had no plan to establish a Preparatory Committee of the merger, as has been reported by some media, the paper said.


"We should not try to do everything by ourselves, when we venture into foreign markets such as internal market shrinks," was quoted as saying.


"If credit is available for both sides, we would like to bond with not only Hitachi but with foreign companies," he told the newspaper.


(Reporting by Taiga Uranaka; Editing by Chris Gallagher)



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Monday, 8 August 2011

AIG to sue BofA on mortgage bonds: report (Reuters)

(Reuters)-U.S. insurance giant American International Group (AIG.N) is planning to sue Bank of America (BAC.N) to recover more than 10 billion dollars in losses over 28 billion dollars in investments in mortgage-backed securities, the New York Times said, citing three people with knowledge of the complaint.

AIG's move adds the soaring investors seeking compensation for troubled loans that led to the financial crisis, the Times said.

The complaint alleges that Bank of America, together with his unit, Merrill Lynch and Countrywide Financial misrepresented the quality of mortgages into securities and sold to investors, the newspaper reported.

Bank of America is likely to dispute claims in suit, that AIG should be presented on Monday in New York State Supreme Court, the paper said.

Bank of America spokesman Lawrence Di Rita said NY Times that the revelations of mortgage securities were quite strong for sophisticated investors. Many of the lost value because loans fell said.

"Now you have a lot of investors and lawyers who are trying to recover losses from an economic crisis," Rita told the paper. The Bank hasn't seen dressed in AIG, NY Times said.

An AIG spokesman declined to comment on the paper. Bank of America and AIG could not immediately be reached for comment by Reuters.

(Reporting by doing nothing Prasad in Bangalore; Editing by Hans-Juergen Peters)


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Monday, 1 August 2011

Earnings preview: Pfizer to report on the 2° quarter (AP)

TRENTON, N.J. – Pfizer Inc., which reports second quarter results before the stock market opens Tuesday, will discuss some recent drug approvals, new data on some experimental drugs and intends to divest some of its non-core assets.

What to Watch for: drugmaker Pfizer, the world's largest by revenue, it needs some new great salesmen to compensate for intensifying competition. The cholesterol fighter 11 billion dollars annually, Lipitor, loses patent protection the U.S. 30 November — the largest ever drug patent expiration.

The creator of impotence pill Viagra and treat pain Lyrica also had some recent setbacks in drug development, and analysts can ask about those.

CEO Ian Read, who took over in December, will discuss his ongoing review of the business of New York-based Pfizer, including plans to spin off or sell its divisions of animal health and nutrition. The company also is selling their business, manufacture of medicine capsule for 2.4 billion dollars, in a deal set to close soon.

Reading will probably give an update on the integration of King Pharmaceuticals Inc., a manufacturer of pain medications and other products that Pfizer bought for $ 3.6 billion in March. He probably will discuss progress of Pfizer in increase sales in emerging markets, plus the ongoing cost cuts.

By buying Wyeth for $ 68 billion in October 2009, the company has worked to reduce annual costs by $ 4 billion to 5 billion. Plans to cut spending by about 20 percent next year, to about $8,25 billion.

Managers can see recent approvals of drugs, including a new use of cancer drug, Sutent for treating advanced pancreatic cancer. Tampering with amazing Painkiller Oxecta, an immediate-release drug containing Oxycodone, the active ingredient in OxyContin, was approved in the United States in June.

And blood clots that eliquis thinner has been approved in the European Union in May to prevent the blood in patients who have undergone surgery for hip replacement or knee. Pfizer and partner Bristol-Myers Squibb plan to seek U.S. approval this year. The companies also will seek approvals for much larger groups of patients at risk of fatal blood clots. That gives the blockbuster drug potential.

Pfizer also has recently applied for approval of lung cancer treatment crizotinib and axitinib, for treatment of most common type of kidney cancer and is revise the research data on them.

Down, the Food and Drug Administration on Friday said it would delay for 90 days a decision on the approval of sales of the pneumococcal vaccine Prevnar 13 children for adults aged 50 and over. The FDA called Pfizer presented new data from two studies of a major change to the application.

Prevnar 13, which protects against 13 common pneumococcal strains of bacteria and the original version, seven-strain, had combined sales of about 3.7 billion dollars last year, most of the sales generated by a vaccine. The delay could mean a loss of hundreds of millions of dollars.

Why it matters: Pfizer had four big-selling drugs get generic competition since last July, including Blockbuster Effexor for depression, Protonix for severe heartburn and Aricept for Alzheimer's disease symptoms. Sales were falling fast, and the same thing will happen to Lipitor from five months.

Despite an annual budget approaching search 10 billion, Pfizer has repeatedly had promising drugs fail in testing human in recent years. That problem and delayed price Pfizer stock, led the Council last December to oust predecessor Read, Jeffrey Kindler, who had temporarily shored up the company with the acquisition of Wyeth and intense cost cutting ever since. Reading must prove that a better strategy, one for the long term.

What is expected: analysts surveyed by FactSet expect, on average, earnings of 59 cents and 17.02 billion.

The year-ago quarter: Pfizer posted earnings of 31 cents, or 62 cents, excluding charges, on 17.33 billion.


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Switzerland, Germany, to sign the agreement with tax evasion: report (AFP)

Zurich (AFP)-Swiss and German Governments are to sign an agreement early next month by putting an end to a long dispute on tax evasion by Germans who maintain secret Swiss bank accounts, a report said Sunday.

According to the newspaper Sonntagszeitung, the two sides of the ink an agreement that will allow 10 August, income from dividends and interest on funds deposited in Swiss accounts to be taxed, the newspaper said.

Although the exact tax rate is likely to be concluded is still approximately 25-26 percent, the report added.

While the German press recently reported that Swiss banks may have to pay 10 billion euro to German tax authorities in compensation for tax evasion over the last decade, the actual amount would be about two billion Swiss francs (1.8 billion/$ 2.5 billion) in the context of the agreement, said Sonntagszeitung.

That agreement would not only allow the resolution of tax disputes between the two countries, but also legalize assets deposited in Swiss banks by German citizens and allow them to remain anonymous.

Also a similar agreement could be signed soon with the Government in London that would see the British tax authorities have paid about 500 million Swiss francs, told the newspaper.

German and Swiss Governments, whose ties have been inaciditi for some time the dispute, have negotiated an agreement on double taxation for several years, which in future should help identify evaders.

The German authorities have made the fight against tax evasion in Switzerland and Liechtenstein a higher priority in recent years, controversially paying data confidentiality stored on the stolen computer discs.

Tax officials say they recovered 1.6 billion euros last year from taxpayers that had been identified through the data.

Some Swiss banks have struck their own deal with the German authorities, the private Bank Julius Baer agreed in April to pay 50 million euros at the end of tax evasion probes against it and its employees.


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Sunday, 10 July 2011

Brazil is of the opinion on the introduction of the Auditor on a BRFoods report

SAO PAULO, July 8, Reuters) -Brazil's antitrust regulator, Cade, questions courts to an auditor for Brasil foods, a food processor to name a few, whose founding is Beingscrutinized by CADE for excess market power, could, Valor Economiconewspaper said on Friday.

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Saturday, 9 July 2011

Control objectives for August LAN-TAM ruling report

(SANTIAGO, July 8, Reuters) - Chile's antitrust Tribunal Isaiming a decision on the multibillion dollar merger OfChilean airline LAN and Brazilian carrier TAM in August, reaching a local newspaper reported on Friday.

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Thursday, 30 June 2011

Greece austerity vote: live report (AFP)

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1510 GMT: Jean-Claude Juncker, the chairman of the eurozone finance ministers, says the way is now open for Greece to receive its fifth EU-IMF loan installment, my colleagues report from Brussels.

1500 GMT: The emergency funds Greek MPs have cleared the way for by voting through a new austerity plan represent the fifth tranche of a 110-billion-euro aid package agreed last year with the EU and the IMF, and are needed to prevent Greece defaulting on its mammoth debts.

Such a default could have grave consequences not only for the 17-nation eurozone, something which Germany was a driving force in creating, but also for the global financial system.

Some observers have likened its potential impact to that of the late 2008 collapse of US investment bank Lehman Brothers, the single event which more than any other triggered the world's worst financial crisis since the 1930s.

1440 GMT: The austerity package passed by Greek lawmakers in Athens this afternoon has been demanded by the EU and the IMF to release emergency finance needed to keep Athens from defaulting.

It aims to cut 28.4 billion euros ($40 billion) from the government's spending gap by the end of 2015.

The plan includes tax rises hitting the lowest paid (estimated to raise some 15 billion), with the remainder coming from spending cuts -- including 6.4 billion euros just this year.

There will also be a massive wave of state sell-offs for utilities and other public assets including water -- with the goal of raising 50 billion euros.

1415 GMT: German Chancellor Angela Merkel has called on bankers to help rescue debt-ridden Greece, saying they "should lend a hand" to governments trying to hammer out a new rescue package, AFP colleagues report from Berlin.

"If you want to be able to continue working in stable countries, then lend us a hand and do so with a modicum of goodwill," Merkel said in a speech to bankers and members of her Christian Union coalition.

1403 GMT: The Greek vote for a new austerity package is a "vote of national responsibility", EU president Herman van Rompuy says, my colleagues report from Brussels.

1355 GMT: The euro edged higher as Greek lawmakers voted to approve a massive new austerity package demanded by international creditors.

At about 1340 GMT, the euro rose to $1.4382, compared with $1.4367 late in New York on Tuesday.

1347 GMT: US stocks gained after the Greek parliament approved the austerity plan designed to prevent a destabilizing default, shoring up confidence in Europe's financial system, my colleagues report from New York.

The Dow Jones Industrial Average rose 31.44 points (0.26 percent) to 12,220.13 in the first five minutes of trading.

1337 GMT: The full vote count is in: Greek lawmakers voted 155 to 138 for the hotly-disputed package to slash 28.4 billion euros ($40 billion) from the balance of government spending by 2015, in the first of a two-part vote to continue on Thursday aimed at unlocking emergency finance from the EU and the IMF.

1330 GMT: German Chancellor Angela Merkel has said Greek lawmakers voting to approve the austerity package is 'very good news', my colleagues in Berlin report her spokesman as saying.

1315 GMT: Greek Prime Minister George Papandreou's Socialists lost one vote among their 155 lawmakers in parliament, as expected, but also won backing from one opposition MP.

A second vote on the detail behind the new austerity package has still to be held tomorrow.

1306 GMT: Greek lawmakers have voted to approve a massive new austerity package demanded by international creditors, amid violent clashes between protesters and police firing tear gas outside the parliament in Athens.

An AFP count gave Prime Minister George Papandreou's government the 151 votes it needed to push through measures to save 28.4 billion euros ($40 billion) by 2015, and so unlock emergency finance from the EU and the IMF.

1246 GMT: To clarify previous post, voting started just after 3:35 pm Athens time (1235 GMT) on the massive austerity plan for Greece to save the country from default and the eurozone from contagion.

The 300-seat legislature was called to adopt a 28.4-billion-euro package of tax rises, spending cuts and privatisations demanded by international creditors the EU and IMF.

1242 GMT: Voting has begun on the new austerity package in the Greek parliament.

1238 GMT: Moments before lawmakers are to vote on the new austerity package, Greek Prime Minister George Papandreou adds that "there is no Plan B" to save Greece, evoking the threat that public salaries and pensions might go unpaid otherwise.

1230 GMT: Greece will do "everything to avoid default," Greek Prime Minister George Papandreou says.

1220 GMT: Greece's Finance Minister Evangelos Venizelos says that, after a refusal by opposition lawmakers from the extreme-right to left to back the government despite EU and IMF pressure, "all this criticism and these accusations are based on one thing only: the fact that this house's Socialist majority will assume its responsibility and vote the plan through."

1155 GMT: Greece's Finance Minister Evangelos Venizelos tells parliament he expects his narrow Socialist party majority to line up behind the whip and so win Greece's crucial austerity vote.

"The decision of PASOK (the governing party) has been taken to carry the vote," Venizelos said with voting, slightly delayed, set to begin after violent clashes outside the assembly between police and protesters.

1135 GMT: "You won't go far with all the people against you," Alexis Tzipras, head of the radical left opposition Synaspismos party shouts at the parliament building, my colleagues Hélène Colliopoulou and Catherine Boitard write from Athens.

1120 GMT: "I'm going home, there's too much tear gas, the crush in the crowd is unbearable," writes my AFP colleague Sylvia Michaelidou Fyrigou, who is taking shelter in the Syntagma underground station after police fired a salvo of tear gas to disperse a group approaching the parliament building in Athens.

1105 GMT: More from opposition conservative lawmaker Elsa Papadimitriou who has told the Greek parliament that she will vote for the government's austerity plans.

"Yes indeed," she said of which way she would cast her vote. "To act with patriotism is to support the consensus and cooperation... The plan is a solution, necessary... but budgetary asphyxiation and economic suicide are not," she added.

The government has a majority of five in the assembly.

Papadimitriou's decision makes the measures almost certain to pass even though one Socialist lawmaker repeated during the debate that he may vote against the package, in protest at plans to sell off part of the state's majority holding in the national electricity company.

1053 GMT: An opposition conservative lawmaker has told the Greek parliament that she will vote for a government austerity plans that has provoked clashes between police and protesters.

Elsa Papadimitriou told the floor shortly before voting was due to begin in the 300-seat assembly that she will back Prime Minister George Papandreou's plan to shave 28.6 billion euros from the national budget by 2015, as police fired tear gas at thousands of demonstrators massed outside.

1050 GMT: Police have fired tear gas at thousands of protesters massed outside parliament in Athens as the vote on a massive austerity package demanded by international creditors approaches.

Riot police began trying to disperse protesters just after 1:30 pm (1030 GMT), AFP correspondents there tell me.

Demonstrators had said they would try to breach barriers right round the parliament's Syntagma Square home.

-- Clashes between protesters and riot police in Athens worsened on Wednesday hours from a vote in parliament on austerity measures aimed at preventing a Greek debt default.

On the second day of a 48-hour general strike, demonstrators massed around the parliament as deputies readied to decide on a 28.4 billion-euro ($40.8 billion) package of taxes, spending cuts and sell-offs scheduled for around 2:00 pm (1100 GMT).

The measures are deemed crucial for Greece to secure international aid to stave off bankruptcy, which is threatening the stability of the eurozone.


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Wednesday, 29 June 2011

Special Report: migrants unrest China exposes generation fracture (Reuters)

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ZENGCHENG, China (Reuters) – In a backstreet pool hall in southern China's factory belt, young migrant workers gather around the tables, their eyes flitting between the worn green baize and the anti-riot police patrolling the grimy alleys.

The police search cars at roadblocks just outside in Dadun, an urban village in the city of Zengcheng, where sweatshops make so many millions of blue jeans that the city promotes itself as the "jeans capital of the world".

"Are you a plainclothes policeman?", one spiky haired migrant sitting on a moped outside the pool hall jokingly asks a visitor.

Weeks after workers rioted in anger over the manhandling of a 20-year-old pregnant migrant hawking wares on the street, resentment simmers and authorities are taking few chances. For three days, the migrants trashed and torched government offices, police vehicles and cars -- local symbols of authority -- before security forces overwhelmed them.

For a nation that will absorb hundreds of millions of rural migrants into cities over the coming decades, the riots that Wang inspired left an acrid taste of what could go wrong if the government mismanages this huge shift.

The ruling Communist Party, which celebrates its 90th anniversary on Friday, fought to power on the back of restive peasants. Now young migrants from the villages are making greater demands to be heard and respected in the cities.

"They look down on the outsiders, so we let them know we won't be bullied anymore," said a lanky 19-year-old migrant worker in Dadun, one of the many factory towns and villages that as made the Pearl River Delta, "the workshop of the world" in Guangdong province next to Hong Kong.

"People have been waiting a long time for a chance to get them back, they (security guards) discriminate against us," he said as he watched his friends hammer away on a street fighter video game called Killer in a games parlor.

Interviews with dozens of migrants in Dadun and other nearby factory neighborhoods revealed raw resentment of harassment and shakedowns from public security teams and local security guards.

Such treatment has gone on for years, they say, even as their material conditions have improved, especially in the past two years as a tightening labor market lifted wages.

But like a ripple of strikes across Guangdong last year, the Dadun riot revealed a younger new generation of migrants still impatient with their lot in cities that can treat them as burdens or threats, not the residents they want to become.

"The police treat you differently if you're a migrant," said Fang Wuping, a migrant worker in Dongguan, the vast manufacturing zone next to Zengcheng.

"I can understand why they have to keep an eye out here" he added, describing a recent bout of detention by wary police.

"But when you're singled out as a criminal like that, you get angry and think, 'What gives you the right?'"

This generation does not share the self-sacrificing ethos of their farmer parents. They are jacked into the World Wide Web, they text like their cohorts elsewhere in the world, and their walks through the streets of Chinese cities are a direct education in the gaps in income and privilege that irk them.

Nowadays when migrant workers finish work at factories across southern China's manufacturing belt, they slip into bleached jeans, bright T-shirts, and sequin-covered blouses that are a gaudy renunciation of rural dullness.

They disdain the plain blue jackets and canvas shoes their farmer-migrant parents usually wore and sport tattoos and dyed hair, proclaiming that this generation yearns for a future far from the villages where they were born.

"Our mentality is different from our parents'. We don't save money like they did," said Li Bin, a 20-year-old worker in Dongguan, who sported a mullet haircut and an earring.

"We spend it as we make it, spend it on ourselves -- restaurants, the Internet, karaoke. But in their time, people were simpler. They were saving money so they could come home."

"I'd never go back to farming," cut in Li's friend, Fang Wuping. "If you threatened to kill me, I wouldn't. If you're a farmer, people despise you, look down on you," he said.

China has 153 million rural migrants working outside their hometowns. By 2009, 58.4 percent of rural migrants were born in 1980 or after, and ninety percent of this "new generation" have barely ever farmed, a National Bureau of Statistics survey found.

VOLCANIC ERUPTIONS

Wang Lianmei, the pregnant woman who guards pushed to the ground trying to move her goods off the street, will almost certainly not become China's version of the vegetable seller in Tunisia whose mistreatment by a policewoman sparked protests that touched off the "Arab spring".

The Communist Party is armed with fast economic growth, a powerful security apparatus and an aura of public authority to shield it from such risks. Significantly, the unrest did not spread to other nearby towns crammed with migrant workers.

But like a ripple of strikes across Guangdong province last year, the Dadun riot revealed a strong undercurrent of discontent, said Huang Yan researcher at South China Normal University in Guangzhou, capital of Guangdong, who studies unrest among migrants in the Pearl River delta.

"This is like a volcano that is dormant for a long time until it finds a point to erupt from. I'm not saying that this is a volcano that will erupt across the entire country, but in areas where migrant workers are concentrated, there are accumulated tensions," Huang said.

The Party is the primary symbol of authority in a country whose people have scant legal or political channels to press grievances, especially against officials, police or bosses.

China's official trade union noted in a report last year that migrants are getting more assertive -- and more organized.

"The rights mentality of the new generation of rural migrant workers is already clearly different from the traditional rural migrants," it said.

"There are signs that their mode of defending their rights is shifting from individual to collective action," the report said, noting a survey that found over half of migrant workers born after 1980 said they would be willing to join in "collective action" to defend their personal interests.

China has become greatly concerned with collective action since February, cracking down on dissent in response to fears that the "Arab spring" could inspire challenges to its one-party rule, especially before the leadership succession late in 2012.

LOOKING FOR CHAIRMAN MAO

Not every migrant worker has heard of the pregnant hawker and the riot. But the incident resonated with those interviewed for this story.

Zheng Chao, 20, one of the young migrant workers milling about the recruitment stalls in a factory towns near Shenzhen, said he had heard of trouble in Zengcheng but not the details.

"It's normal here for people to take a beating inside the factory and outside," said Zheng, a shirtless 20-year-old from Hunan province.

"What we need is our own Chairman Mao. He was a migrant worker too," he joked. Mao Zedong, who was from rural Hunan, worked briefly as a library assistant in Beijing before embracing a career as a communist revolutionary.

Few people in China want to revisit the chaos of Mao's rule, although nostalgia about the Great Helmsman himself has grown recently. The frustrations of life on the fringe of urban prosperity is the kind of discontent Mao was able to channel in another era.

Four out of five of the roughly 50,000 people who live in Dadun are migrants. Wang Limin, an older migrant from Sichuan who runs his own jeans workshop, said it was the unrelenting discrimination and petty corruption with little legal recourse or help from police that was most dispiriting.

"For the entire day, they mess around with your money. If you go to apply for a residency permit, they say it's free at first, but then they ask for more and more money. They don't give you a free meal for nothing," Wang said at his workshop in Dadun.

"We just want to come here to work, but they manipulate us to death. If the security guards weren't here, things would be good," he added. "They mess with the migrants all the time."

Restive migrants are far from the only source of discontent in China.

The country saw almost 90,0000 "mass incidents" of riots, protests, mass petitions and other acts of unrest in 2009, according to a 2011 study by two scholars from Nankai University in north China. Some estimates go even higher.

By contrast, in 2007, China had over 80,000 mass incidents, up from over 60,000 in 2006, according to an earlier report from the Chinese Academy of Social Sciences.

Many of these outbursts sprang from farmers protesting land seizures, laid-off workers demanding better benefits, and decommissioned soldiers and rural teachers dismissed from jobs.

But the protests by migrant workers pose a tricky challenge for a government steering China toward bigger cities and fewer farmers.

China's urban population is projected to expand up to 400 million by 2040, Han Jun, a policy expert who advises the government said last year. That means cities will absorb 15 million new residents every year, many of them rural migrants.

They will need jobs, housing, hospitals and schools for their children. More will also hunger for the sense of dignity and belonging that the Dadun riot showed was missing for many.

"They don't want to live in the countryside or to farm. They imagine their future lives are in the cities, so their sense of relative poverty and deprivation is also stronger," said Cai He, a sociologist at Zhongshan University in Guangzhou, capital of Guangdong, who studies rural migrant workers.

"In recent years, rural migrants' wages have risen quickly, but after all this is a floating group," said Cai.

"It lacks roots ... in the cities, and lacks a sense of security, and it's also difficult for them to feel secure about their futures."

FALLING LEAF RETURNS TO ROOTS

At the prodding of the central government, local governments are trying to make it easier for migrants to send their children to state-funded schools, and get other social-welfare benefits.

The "City Garden" apartment complex in Dongguan, a factory-filled city next to Zengcheng, embodies the kind of life poor migrants yearn for. Its residents are skilled workers, such as Song Xiaoyong, a 34-year-old quality control technician.

"He'll be able to go to school here, but that's impossible for poorer families," Song said of his two-year-old son, who was cared for by his parents from the central province of Hubei.

Zhang Qin, a poor young migrant worker in Dadun from the poor, southwest province of Guizhou, said her two daughters were unlikely to get into any local school and she would probably send them back to her home village for schooling, a choice many migrant workers have to make.

"There's no money to be made back home. You have to work even harder," Zhang said as she worked with a pair of seamstress scissors trimming garments.

"Urbanizing" rural migrants so they can get schooling and welfare roughly equal to that of established city residents would cost the government about 80,000 yuan ($12,340) for each migrant, the recent government think tank study of rural migration said.

That does not even include housing, which is what worries Niu Xiaoling, a skinny 27-year-old from rural Sichuan in southwest China.

"To get a girl, you need a house and to have a career, but nowadays it's so expensive to pay for a home," Niu said. "Even in my village, a house would cost at least 100,000 yuan."

He and other frustrated migrant workers talk about moving to another part of China, where they might get better pay and the cost of living might be lower. But nobody wants to go back to home villages where off-farm work is scarce.

An old Chinese proverb says a falling leaf always returns to its roots. Wang Jiaoguang, a 48-year-old former farmer from Hunan province who works in south China's factory belt, says he's not so sure that applies to the younger generation.

"It's not good to know you have no roots anymore."

(Editing by Bill Tarrant)


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