According to The Australian Financial Review, Goldman Sachs Group has responded to the dramatic coking coal rally by saying higher prices for this year's best performing commodity may be here to stay.
Spot hard coking coal has more than doubled this year to trade above $US205 a tonne as a new Chinese government policy reduced the number of annual working days at its mines. Goldman, in a note dated Thursday, raised its 2017 price forecast by 64 per cent to $US135 a tonne and its 2018 estimate by 47 per cent to $US125. That compares to the current third-quarter contract price of $US92.50.
"We update our price forecasts in order to reflect a different environment," analysts Christian Lelong and Callum Bruce wrote in the report. "We see upside risks if current policies remain unchanged going into next year and the resulting shortage overwhelms the ability of producers in Australia and the US to respond."
The rally could add billions of dollars in earnings to the bottom line of struggling mining companies already reeling from years of suppressed prices for commodities like iron ore and copper.
China's output has fallen more than 10 per cent so far this year as President Xi Jinping's government ordered miners to lower output to the equivalent of 276 days of production, down from 330 days. China's imports of coking coal jumped 45 per cent in August to the highest in 13 months.
Still, the bank cautioned that higher prices will lead to a global supply response and China could move to relax their constraints on production days at mines.
The government's top planning agency decided in a meeting on Friday in Beijing to implement a plan to increase production, according to the people, who asked not to be identified as the information isn't public.
"Although low inventories and limited supply should support prices in the short term, higher prices could attract up to 20 million tons per annum of recently idled mining capacity," Goldman said. "The eventual adoption of a more flexible policy that allows Chinese production to partially recover should address any lingering shortages in 2017."
For now though, the big winners are likely to be producers outside of China.
"Higher asset values and a sharp improvement in profitability among global miners may not be the outcome that Chinese regulators had in mind," Goldman said. "The main beneficiaries of higher-than-expected seaborne demand are the US, Australia and Mozambique."

Ref: http://www.afr.com/business/mining/coal/goldman-resets-higher-its-coking-coal-price-forecasts-20160923-grnii9

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According to The Nikkei Asian Review, the Japanese government seeks to have researchers use artificial intelligence to streamline the development of new drugs, aiming to boost the nation's competitive advantage.
The health ministry plans to make such technology available to pharmaceutical companies in a few years. A self-learning AI will be developed starting in fiscal 2017 at the government-affiliated National Institutes of Biomedical Innovation, Health and Nutrition.
The AI will mine Japanese and foreign research papers and databases on new drugs for various conditions. It will then discover candidate compounds, commonly known as seeds, for animal and other testing whose results will add to the AI's knowledge.
The AI will be put to use in a drug discovery support network that includes the Japan Agency for Medical Research and Development, the Riken research institute, and the National Institute of Advanced Industrial Science and Technology. The health ministry will initially pour in 350 million yen (US$3.47 million) during the fiscal year starting April 2017, with budget requests to increase later.
AI is finding use in industries ranging from finance to manufacturing. For medicine, the University of Tokyo has been conducting clinical research with IBM since 2015 where an AI system studies oncology papers and provides assistance in cancer diagnosis. It takes nearly a month for human analysts alone to arrive at results, but it can be done in minutes with AI, professor Arinobu Tojo said.
Scientists look for revolutionary new drug candidates that can act on genes and proteins linked to such conditions as cancer and hepatitis C. But pinpointing promising compounds out of many choices and developing a single new drug is said to require at least a decade and tens of billions of yen or more. Success rates are also low.
Japan is still believed to be lacking in drug discovery capabilities compared with global peers. The health ministry sees a need to support researchers though a stepped-up public-private alliance.
Across the Pacific, AI-assisted pharmaceutical development has already taken off. Massachusetts startup Berg uses the technology to compare and analyze some 14 trillion data points from healthy cells and more than 40 types of cancer tissue, including pancreatic and brain tumors. The results have led to the discovery of a new cancer drug.
California startup Atomwise has found that two existing drugs may also work against the Ebola virus. The company's AI reportedly achieved in only a day a feat that would normally take years. Pharmaceutical spending accounted for a fifth of the 41.5 trillion yen that Japan shelled out for health care last fiscal year. Health insurance programs risk collapsing under the weight of cancer immunotherapy and other pricey new treatments, the medical community warns.

Ref: http://asia.nikkei.com/Tech-Science/Tech/Japan-tapping-AI-to-revolutionize-drug-development
 
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According to The Asahi Shimbun, robots may not be taking over yet, but they are becoming sufficiently advanced to guide passengers who need help at Tokyo’s Haneda Airport.
Hitachi Ltd. started running a demonstration experiment on the Emiew 3 robot in the Terminal 2 building of the airport in Tokyo.
The robot greets tourists at a dedicated counter and provides information on shops and facilities using an information display set up beside the counter. It can show, for example, the location of the nearest bathroom on the displayed map.
The robot provides a multilingual service, including in English, Chinese and Japanese.
Moving as fast as a human with wheels under each foot, the robot can also lead a tourist to the desired destination in the building.
The 90-centimeter tall Emiew 3 weighs 15 kilograms and is “mentally” powered by artificial intelligence to understand languages that people speak.
Hitachi is testing the robot to see if it can recognize speech sounds in a noisy environment and can move stably in different locations. The company aims to put it into practical use in fiscal 2018.

Ref: http://www.asahi.com/ajw/articles/AJ201609220009.html
 
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According to The Asahi Shimbun, a battery-powered train will make its debut in Japan on a Kyushu Railway Co. (JR Kyushu) line on 19 Oct, an effort that is not only environment-friendly, but will also help the company slash operating costs.
Able to run on nonelectric rail lines, the battery-powered train, nicknamed “Dencha,” will operate on a 10.8-kilometer route in Kita-Kyushu, linking Orio and Wakamatsu stations on the Chikuho Line, according to JR Kyushu.
The two-car train will make four round trips a day.
The battery train emits less carbon dioxide and requires less maintenance than existing diesel trains, so JR Kyushu intends to introduce additional battery trains for other nonelectric lines in the future, JR Kyushu officials said.
Dencha will run on an electric route between Nogata and Orio stations as an out-of-service train to charge its battery. It will operate on electricity stored in the battery on the nonelectric route connecting Orio and Wakamatsu with its pantograph folded.
Dencha can run up to 90 km on one battery charge alone.
Manufacturing a car for the battery train costs 230 million yen (US$2.26 million), about 100 million yen more than conventional trains, but maintenance costs are 40 to 50 percent less than for diesel trains.
Nonelectric railways account for 40 percent of all of JR Kyushu’s commercial lines. Many of its diesel trains are showing wear and tear after more than 40 years of service.
JR Kyushu plans to cut costs by replacing existing trains with Dencha so that its unprofitable rural lines can continue operations.
A similar effort has been made by East Japan Railway Co. (JR East), which began running a battery train in March 2014 on its Karasuyama Line in Tochigi Prefecture.
JR East also plans to introduce a new battery-powered model developed by using JR Kyushu’s technologies on the Oga Line in Akita Prefecture in spring 2017.

Ref: http://www.asahi.com/ajw/articles/AJ201609190002.html
 
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According to The Australian Financial Review, Bracco, a 4634 acre (1875 hectares) cattle grazing farm near Roma in south-west Queensland, has sold under the hammer for $4.575 million, indicating a 20 per cent uplift in values in the sector over the past 12 months.
The sale price equated to $987 an acre compared with $600 to $700 an acre being achieved 12 months ago, according to Colliers International's Trenton Hindman.
"This sale implies a big shift in the Queensland market and increased confidence from people to transact as we are out of drought and beef is producing great returns," said Mr Hindman, who was marketing the property on behalf of the Henricks family.
"Bracco is a high-quality, low-cost cattle operation and this was a great result for bare-basis freehold land without improvements. It benefits from the strategic location to multiple beef market outlets, just a short run to the Roma Saleyards.
The sale of the six paddock property to a central Queensland cattle operator will give confidence to other beef cattle property vendors this spring.
Shane McIntyre, national director of rural and agribusiness at Colliers International, said there were numerous factors that would "ensure the future of beef in the medium term" including an insatiable global appetite for protein, population growth and a wealthier world.
But agribusiness banking specialist Rabobank were more cautious, forecasting Australian cattle prices to remain high for the next six to 12 months, but warning they will then come under pressure as global beef production, and total animal protein production, increases.

Ref:http://www.afr.com/business/agriculture/livestock/queensland-cattle-farm-sale-shows-values-up-20-per-cent-20160916-grhurn
 
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According to The Australian Financial Review, The Star Entertainment Group has called for architects to design a new $500 million tower including a world-class Ritz-Carlton hotel at its casino in Pyrmont, Sydney.
The Star Entertainment Group chief executive Matt Bekier said growth in tourism, especially from Asia, influenced the decision to advance the development's plans.
"Sydney needs more quality hotels, and exciting entertainment and hospitality infrastructure to win its share of that [tourism] growth," Mr Bekier said. 
The development, first revealed in January, will include more than 220 premium hotel rooms and around 150 residences, bringing The Star's room inventory to more than 1000. Another 20 food and beverage venues will also be added.
"It will allow us to really enhance and increase our contribution to Sydney's tourism offering," Mr Bekier said.
The Star has already committed to $500 million of upgrades and improvements at The Star Sydney.
The tower project, pending approval, would be contained within the existing property holdings of the Sydney casino and include a six-star hotel component to be operated by The Ritz-Carlton.
The hotel and residence development is expected to be completed within three years once approvals have been given.
Rival casino operator, James Packer's Crown Resorts, expects to begin operating across the waterfront from The Star at the Barangaroo precinct in 2020.

Ref: http://www.afr.com/real-estate/the-star-seeks-designs-for-500m-ritz-carlton-tower-at-sydney-casino-20160915-grhjd3
 
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According to The Nikkei Asian Review, Japanese retail giant Aeon will invite foreign businesses to sign on as tenants at its malls in Japan, hoping to spice up its roster as competition intensifies.
Aeon Mall, which operates about 150 shopping centres across Japan, will aim to have the first location open next spring. A new dedicated department includes two staffers assigned to Chinese businesses and three to businesses from members of the Association of Southeast Asian Nations. Tenants from other areas, such as Europe and the U.S., will also be welcome.
A broad range of sectors will be considered, including restaurants, apparel, home products and services. In addition to major chains with an established presence in many countries, Aeon is interested in renowned small businesses from tourist sites.
Aeon Mall is negotiating arrangements with slightly over 30 companies now. By inviting multiple tenants at once, the company seeks to re-create the feel of an Asian-style "restaurant alley," for example.
Large Aeon malls in Asia have housed Japanese companies as tenants, facilitating their business development abroad. Now, Aeon hopes to do the same for foreign concerns in Japan.
Targeted candidates will include foreign companies that are interested in doing business here but hesitate because they lack knowledge of the norms and competitive landscape. To help deepen their understanding, Aeon will offer tours of its malls in Japan and abroad.
Depending on how the first locations perform, the company hopes to help these businesses expand to multiple sites.
The country's shopping centre market grew 4.5% in 2015 to 31 trillion yen (US$302 billion), according to the Japan Council of Shopping Centres. But on an existing-store basis, it treaded water.
While many new malls continue to open here, they are all similar, hosting the same nationally known apparel and restaurant brands.
The market's medium- to long-term outlook is also dim amid the shrinking Japanese population and the rise of online shopping.
"Mass-producing the same type of shopping mall will not lead to substantial growth going forward," Aeon Mall President Akio Yoshida said. Last year, the company opened a more experience-focused location with athletic and racetrack facilities. It will now capitalize on its international network to invite promising overseas businesses as tenants in hopes of standing out.

Ref: http://asia.nikkei.com/Business/Consumers/Aeon-to-add-foreign-flair-to-malls-in-Japan
 
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According to The Nikkei Asian Review, The Japanese government is looking to have one out of every five cars autonomous by 2030, as part of the "fourth industrial revolution" initiative to revitalize the economy.
A proposal containing that goal will be presented during Tuesday's meeting of a committee under the Industrial Structure Council, an advisory body within the Ministry of Economy, Trade and Industry. The committee will be tasked with coming up with a detailed course of action regarding regulatory reforms for driverless technology, health, manufacturing and people's livelihoods. The direction will follow the industrial structure vision compiled in April.
Currently, the government plans to permit self-driving vehicles in certain regions in 2020, aiming to give rise to a domestic market for completely automated vehicles by 2025. METI's new goal for 2030 provides a numerical target based on the objectives previously mapped out.
The government is looking to reduce deaths from traffic accidents to a tenth of 2015's 4,100-plus fatalities by 2030. The government also seeks to reduce the number of people with impaired access to transportation to a tenth of the current sum by the same year. Some 7 million people now fit that description, chiefly elderly people living in rural areas.
The METI committee will coordinate with the transport ministry to develop approaches for rewriting relevant laws. The committee will also submit proposals for proof-of-concept testing in fields such as self-driving trucks on highways.

Ref: http://asia.nikkei.com/Tech-Science/Tech/Japan-aims-to-make-20-of-autos-driverless-by-2030

​If you want to read this article in Japanese, please see the following link:
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According to The Australian Financial Review, Australian farmers are on track to harvest a record winter crop as weather conditions across the country boost production in every single state for the first time in nearly a decade.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has forecast record winter crop production of 46.1 million, the biggest since the monster 2011-12 crop of 45.7 million tonnes.
The ABARES forecast is underpinned by expectations for a record crop in Western Australia, where farmers are expected to produce a whopping 17.1 million tonnes and South Australia, which is tipped to produce 8 million tonnes, up from 7.2 million tonnes last year.
"Seasonal conditions in most cropping regions during winter were very favourable, and crops are generally in very good condition at the beginning of spring," said acting ABARES executive director Peter Gooday.
The bumper crop will lift the fortunes of the nation's grains handlers CBH Group, GrainCorp and Glencore, which collect, store and transport grain crops. It is the first time winter crop production will increase in every single state since 2007-08.
But there is a sting in the tail of the nation's farming success.
A record crop will add to swelling global stocks as farmers in the Black Sea region, the United States, Canada, and India also enjoy good growing conditions.
Rising global production is hurting wheat prices, which are hovering at a decade low.
The Food and Agriculture Organisation of the United Nations (FAO) increased its forecast for 2016-17 global cereal production late last week to nearly 2.56 billion tonnes, about 40 million tonnes more than 2015.
It is forecasting record global wheat production of 741 million.
Victorian grain grower Ross Johns said some farmers would consider storing and holding part of the crop.
Total summer production is forecast to rise by 28 per cent to almost 4.8 million tonnes.

http://www.afr.com/business/agriculture/crops/australian-farmers-set-for-a-record-winter-harvest-20160913-grf31j
 
​If you want to read this article in Japanese, please see the following link:
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According to The Asahi Shimbun, a chemical compound has been developed that can prevent the recurrence of colorectal cancer, a breakthrough that may lead to improved treatment for the common carcinoma.
The new substance can inhibit the activity of cancer stem cells, which are difficult to treat with conventional anticancer drugs and lead to cancer metastasis and recurrence, announced a team of researchers from the National Cancer Center and other institutes on Aug. 26.
The scientists are looking to commercialize the chemical as a new anticancer agent.
About 130,000 people develop colorectal cancer in Japan every year, meaning the carcinoma is the most common cancer in the nation.
Ninety percent of patients contract that type of tumor after their Wnt signaling--a command system for cells to control their proliferation--suffer from anomalies, causing cancer cells as well as cancer stem cells, which develop into cancer cells, to be produced and proliferate.
Tesshi Yamada, chief of the Division of Chemotherapy and Clinical Research of the National Cancer Center Research Institute, and his colleagues discovered an enzyme strongly associated with the signaling abnormalities.
They developed a new chemical that inhibits the proliferation of cancer cells by suppressing the activity of the enzyme.
After administrating the substance to mice with transplanted human colorectal cancer cells, the researchers found the expansion of tumors could be inhibited by 80 to 90 percent compared with nontreated mice.
According to the scientists, the new chemical blocked cancer stem cells’ ability to produce new tumors drastically, while existing anticancer agents are not effective in dealing with those cells.

Ref: http://www.asahi.com/ajw/articles/AJ201609100011.html

​If you want to read this article in Japanese, please see the following link:
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