en Biosynthesis of depsipeptides with a 3-hydroxybenzoate moiety and selective anticancer activities involves a chorismatase [Metabolism] By feedproxy.google.com Published On :: 2020-04-17T00:06:05-07:00 Neoantimycins are anticancer compounds of 15-membered ring antimycin-type depsipeptides. They are biosynthesized by a hybrid multimodular protein complex of nonribosomal peptide synthetase (NRPS) and polyketide synthase (PKS), typically from the starting precursor 3-formamidosalicylate. Examining fermentation extracts of Streptomyces conglobatus, here we discovered four new neoantimycin analogs, unantimycins B–E, in which 3-formamidosalicylates are replaced by an unusual 3-hydroxybenzoate (3-HBA) moiety. Unantimycins B–E exhibited levels of anticancer activities similar to those of the chemotherapeutic drug cisplatin in human lung cancer, colorectal cancer, and melanoma cells. Notably, they mostly displayed no significant toxicity toward noncancerous cells, unlike the serious toxicities generally reported for antimycin-type natural products. Using site-directed mutagenesis and heterologous expression, we found that unantimycin productions are correlated with the activity of a chorismatase homolog, the nat-hyg5 gene, from a type I PKS gene cluster. Biochemical analysis confirmed that the catalytic activity of Nat-hyg5 generates 3-HBA from chorismate. Finally, we achieved selective production of unantimycins B and C by engineering a chassis host. On the basis of these findings, we propose that unantimycin biosynthesis is directed by the neoantimycin-producing NRPS–PKS complex and initiated with the starter unit of 3-HBA. The elucidation of the biosynthetic unantimycin pathway reported here paves the way to improve the yield of these compounds for evaluation in oncotherapeutic applications. Full Article
en A peroxisome deficiency-induced reductive cytosol state up-regulates the brain-derived neurotrophic factor pathway [Metabolism] By feedproxy.google.com Published On :: 2020-04-17T00:06:05-07:00 The peroxisome is a subcellular organelle that functions in essential metabolic pathways, including biosynthesis of plasmalogens, fatty acid β-oxidation of very-long-chain fatty acids, and degradation of hydrogen peroxide. Peroxisome biogenesis disorders (PBDs) manifest as severe dysfunction in multiple organs, including the central nervous system (CNS), but the pathogenic mechanisms in PBDs are largely unknown. Because CNS integrity is coordinately established and maintained by neural cell interactions, we here investigated whether cell-cell communication is impaired and responsible for the neurological defects associated with PBDs. Results from a noncontact co-culture system consisting of primary hippocampal neurons with glial cells revealed that a peroxisome-deficient astrocytic cell line secretes increased levels of brain-derived neurotrophic factor (BDNF), resulting in axonal branching of the neurons. Of note, the BDNF expression in astrocytes was not affected by defects in plasmalogen biosynthesis and peroxisomal fatty acid β-oxidation in the astrocytes. Instead, we found that cytosolic reductive states caused by a mislocalized catalase in the peroxisome-deficient cells induce the elevation in BDNF secretion. Our results suggest that peroxisome deficiency dysregulates neuronal axogenesis by causing a cytosolic reductive state in astrocytes. We conclude that astrocytic peroxisomes regulate BDNF expression and thereby support neuronal integrity and function. Full Article
en The mitochondrial protein PGAM5 suppresses energy consumption in brown adipocytes by repressing expression of uncoupling protein 1 [Metabolism] By feedproxy.google.com Published On :: 2020-04-24T06:08:45-07:00 Accumulating evidence suggests that brown adipose tissue (BAT) is a potential therapeutic target for managing obesity and related diseases. PGAM family member 5, mitochondrial serine/threonine protein phosphatase (PGAM5), is a protein phosphatase that resides in the mitochondria and regulates many biological processes, including cell death, mitophagy, and immune responses. Because BAT is a mitochondria-rich tissue, we have hypothesized that PGAM5 has a physiological function in BAT. We previously reported that PGAM5-knockout (KO) mice are resistant to severe metabolic stress. Importantly, lipid accumulation is suppressed in PGAM5-KO BAT, even under unstressed conditions, raising the possibility that PGAM5 deficiency stimulates lipid consumption. However, the mechanism underlying this observation is undetermined. Here, using an array of biochemical approaches, including quantitative RT-PCR, immunoblotting, and oxygen consumption assays, we show that PGAM5 negatively regulates energy expenditure in brown adipocytes. We found that PGAM5-KO brown adipocytes have an enhanced oxygen consumption rate and increased expression of uncoupling protein 1 (UCP1), a protein that increases energy consumption in the mitochondria. Mechanistically, we found that PGAM5 phosphatase activity and intramembrane cleavage are required for suppression of UCP1 activity. Furthermore, utilizing a genome-wide siRNA screen in HeLa cells to search for regulators of PGAM5 cleavage, we identified a set of candidate genes, including phosphatidylserine decarboxylase (PISD), which catalyzes the formation of phosphatidylethanolamine at the mitochondrial membrane. Taken together, these results indicate that PGAM5 suppresses mitochondrial energy expenditure by down-regulating UCP1 expression in brown adipocytes and that its phosphatase activity and intramembrane cleavage are required for UCP1 suppression. Full Article
en COQ11 deletion mitigates respiratory deficiency caused by mutations in the gene encoding the coenzyme Q chaperone protein Coq10 [Lipids] By feedproxy.google.com Published On :: 2020-05-01T00:06:09-07:00 Coenzyme Q (Qn) is a vital lipid component of the electron transport chain that functions in cellular energy metabolism and as a membrane antioxidant. In the yeast Saccharomyces cerevisiae, coq1–coq9 deletion mutants are respiratory-incompetent, sensitive to lipid peroxidation stress, and unable to synthesize Q6. The yeast coq10 deletion mutant is also respiratory-deficient and sensitive to lipid peroxidation, yet it continues to produce Q6 at an impaired rate. Thus, Coq10 is required for the function of Q6 in respiration and as an antioxidant and is believed to chaperone Q6 from its site of synthesis to the respiratory complexes. In several fungi, Coq10 is encoded as a fusion polypeptide with Coq11, a recently identified protein of unknown function required for efficient Q6 biosynthesis. Because “fused” proteins are often involved in similar biochemical pathways, here we examined the putative functional relationship between Coq10 and Coq11 in yeast. We used plate growth and Seahorse assays and LC-MS/MS analysis to show that COQ11 deletion rescues respiratory deficiency, sensitivity to lipid peroxidation, and decreased Q6 biosynthesis of the coq10Δ mutant. Additionally, immunoblotting indicated that yeast coq11Δ mutants accumulate increased amounts of certain Coq polypeptides and display a stabilized CoQ synthome. These effects suggest that Coq11 modulates Q6 biosynthesis and that its absence increases mitochondrial Q6 content in the coq10Δcoq11Δ double mutant. This augmented mitochondrial Q6 content counteracts the respiratory deficiency and lipid peroxidation sensitivity phenotypes of the coq10Δ mutant. This study further clarifies the intricate connection between Q6 biosynthesis, trafficking, and function in mitochondrial metabolism. Full Article
en The mRNA levels of heat shock factor 1 are regulated by thermogenic signals via the cAMP-dependent transcription factor ATF3 [Metabolism] By feedproxy.google.com Published On :: 2020-05-01T00:06:09-07:00 Heat shock factor 1 (HSF1) regulates cellular adaptation to challenges such as heat shock and oxidative and proteotoxic stresses. We have recently reported a previously unappreciated role for HSF1 in the regulation of energy metabolism in fat tissues; however, whether HSF1 is differentially expressed in adipose depots and how its levels are regulated in fat tissues remain unclear. Here, we show that HSF1 levels are higher in brown and subcutaneous fat tissues than in those in the visceral depot and that HSF1 is more abundant in differentiated, thermogenic adipocytes. Gene expression experiments indicated that HSF1 is transcriptionally regulated in fat by agents that modulate cAMP levels, by cold exposure, and by pharmacological stimulation of β-adrenergic signaling. An in silico promoter analysis helped identify a putative response element for activating transcription factor 3 (ATF3) at −258 to −250 base pairs from the HSF1 transcriptional start site, and electrophoretic mobility shift and ChIP assays confirmed ATF3 binding to this sequence. Furthermore, functional assays disclosed that ATF3 is necessary and sufficient for HSF1 regulation. Detailed gene expression analysis revealed that ATF3 is one of the most highly induced ATFs in thermogenic tissues of mice exposed to cold temperatures or treated with the β-adrenergic receptor agonist CL316,243 and that its expression is induced by modulators of cAMP levels in isolated adipocytes. To the best of our knowledge, our results show for the first time that HSF1 is transcriptionally controlled by ATF3 in response to classic stimuli that promote heat generation in thermogenic tissues. Full Article
en AIG1 and ADTRP are endogenous hydrolases of fatty acid esters of hydroxy fatty acids (FAHFAs) in mice [Metabolism] By feedproxy.google.com Published On :: 2020-05-01T00:06:09-07:00 Fatty acid esters of hydroxy fatty acids (FAHFAs) are a newly discovered class of signaling lipids with anti-inflammatory and anti-diabetic properties. However, the endogenous regulation of FAHFAs remains a pressing but unanswered question. Here, using MS-based FAHFA hydrolysis assays, LC-MS–based lipidomics analyses, and activity-based protein profiling, we found that androgen-induced gene 1 (AIG1) and androgen-dependent TFPI-regulating protein (ADTRP), two threonine hydrolases, control FAHFA levels in vivo in both genetic and pharmacologic mouse models. Tissues from mice lacking ADTRP (Adtrp-KO), or both AIG1 and ADTRP (DKO) had higher concentrations of FAHFAs particularly isomers with the ester bond at the 9th carbon due to decreased FAHFA hydrolysis activity. The levels of other lipid classes were unaltered indicating that AIG1 and ADTRP specifically hydrolyze FAHFAs. Complementing these genetic studies, we also identified a dual AIG1/ADTRP inhibitor, ABD-110207, which is active in vivo. Acute treatment of WT mice with ABD-110207 resulted in elevated FAHFA levels, further supporting the notion that AIG1 and ADTRP activity control endogenous FAHFA levels. However, loss of AIG1/ADTRP did not mimic the changes associated with pharmacologically administered FAHFAs on extent of upregulation of FAHFA levels, glucose tolerance, or insulin sensitivity in mice, indicating that therapeutic strategies should weigh more on FAHFA administration. Together, these findings identify AIG1 and ADTRP as the first endogenous FAHFA hydrolases identified and provide critical genetic and chemical tools for further characterization of these enzymes and endogenous FAHFAs to unravel their physiological functions and roles in health and disease. Full Article
en Glucose availability but not changes in pancreatic hormones sensitizes hepatic AMPK activity during nutritional transition in rodents [Metabolism] By feedproxy.google.com Published On :: 2020-05-01T00:06:09-07:00 The cellular energy sensor AMP-activated protein kinase (AMPK) is a metabolic regulator that mediates adaptation to nutritional variations to maintain a proper energy balance in cells. We show here that suckling-weaning and fasting-refeeding transitions in rodents are associated with changes in AMPK activation and the cellular energy state in the liver. These nutritional transitions were characterized by a metabolic switch from lipid to glucose utilization, orchestrated by modifications in glucose levels and the glucagon/insulin ratio in the bloodstream. We therefore investigated the respective roles of glucose and pancreatic hormones on AMPK activation in mouse primary hepatocytes. We found that glucose starvation transiently activates AMPK, whereas changes in glucagon and insulin levels had no impact on AMPK. Challenge of hepatocytes with metformin-induced metabolic stress strengthened both AMPK activation and cellular energy depletion under limited-glucose conditions, whereas neither glucagon nor insulin altered AMPK activation. Although both insulin and glucagon induced AMPKα phosphorylation at its Ser485/491 residue, they did not affect its activity. Finally, the decrease in cellular ATP levels in response to an energy stress was additionally exacerbated under fasting conditions and by AMPK deficiency in hepatocytes, revealing metabolic inflexibility and emphasizing the importance of AMPK for maintaining hepatic energy charge. Our results suggest that nutritional changes (i.e. glucose availability), rather than the related hormonal changes (i.e. the glucagon/insulin ratio), sensitize AMPK activation to the energetic stress induced by the dietary transition during fasting. This effect is critical for preserving the cellular energy state in the liver. Full Article
en Inhibition of the polyamine synthesis enzyme ornithine decarboxylase sensitizes triple-negative breast cancer cells to cytotoxic chemotherapy [Molecular Bases of Disease] By feedproxy.google.com Published On :: 2020-05-08T03:41:14-07:00 Treatment of patients with triple-negative breast cancer (TNBC) is limited by a lack of effective molecular therapies targeting this disease. Recent studies have identified metabolic alterations in cancer cells that can be targeted to improve responses to standard-of-care chemotherapy regimens. Using MDA-MB-468 and SUM-159PT TNBC cells, along with LC-MS/MS and HPLC metabolomics profiling, we found here that exposure of TNBC cells to the cytotoxic chemotherapy drugs cisplatin and doxorubicin alter arginine and polyamine metabolites. This alteration was because of a reduction in the levels and activity of a rate-limiting polyamine biosynthetic enzyme, ornithine decarboxylase (ODC). Using gene silencing and inhibitor treatments, we determined that the reduction in ODC was mediated by its negative regulator antizyme, targeting ODC to the proteasome for degradation. Treatment with the ODC inhibitor difluoromethylornithine (DFMO) sensitized TNBC cells to chemotherapy, but this was not observed in receptor-positive breast cancer cells. Moreover, TNBC cell lines had greater sensitivity to single-agent DFMO, and ODC levels were elevated in TNBC patient samples. The alterations in polyamine metabolism in response to chemotherapy, as well as DFMO-induced preferential sensitization of TNBC cells to chemotherapy, reported here suggest that ODC may be a targetable metabolic vulnerability in TNBC. Full Article
en South-east Queensland poised to be digital leader: Cisco By www.smh.com.au Published On :: Fri, 14 Aug 2015 01:27:27 GMT 30,000 new jobs, $10 billion economy boost could be heading for SEQ. Full Article
en Memo to Australia Post: Sendle has arrived By www.smh.com.au Published On :: Mon, 17 Aug 2015 14:00:00 GMT From aspiring spaceship builder to CSIRO bigwig, James Chin Moody has taken an unlikely route to creating a parcel delivery start-up. Full Article
en Why we need to stop car crash 'women in tech' panels and actually break the glass ceiling By www.smh.com.au Published On :: Mon, 21 Sep 2015 13:04:36 GMT Women in tech panels seldom have anything to offer besides fortune-cookie wisdom and repackaged logic. Full Article
en How Australian public service's digital reforms will happen, according to the Digital Transformation Office By www.smh.com.au Published On :: Thu, 15 Oct 2015 08:31:11 GMT The millions of customers, the short deadline: how the public service's digital revolution will start. Full Article
en What it's like to be Australia's top tech talent By www.smh.com.au Published On :: Sat, 17 Oct 2015 13:15:29 GMT They're highly mobile, highly sought after, and tend to "upskill" off their own bat. The ball is most definitely in their court. Full Article
en Centrelink blocks 60,000 calls a day, blames smartphone apps By www.smh.com.au Published On :: Fri, 23 Oct 2015 07:05:35 GMT Centrelink blocked 22m phone calls last year, with smartphone apps blamed for inflating the figures. Full Article
en Australian companies targeted by identity thieves for tax frauds By www.smh.com.au Published On :: Tue, 10 Nov 2015 02:08:52 GMT Australian companies are having their identities hijacked by international criminals who use them to try to defraud the Australian Taxation Office. Full Article
en Open government data to public use, and Australia may start to catch up with the world By www.smh.com.au Published On :: Mon, 02 Nov 2015 13:15:00 GMT Public servants need to ditch the control and encourage entrepreneurship. Full Article
en Identity fraudsters attack Tax Office at least 11,000 times in one year By www.smh.com.au Published On :: Tue, 03 Nov 2015 13:55:23 GMT The ATO has been targeted more than 11,000 times by identity fraudsters attempting to steal tax refunds in 2014-15. Full Article
en Australian public service failing to share information: Public Sector Data Management report By www.smh.com.au Published On :: Tue, 08 Dec 2015 02:59:08 GMT A report has revealed stunning examples of public service inefficiency when it comes to releasing and managing data. Full Article
en Centrelink apologises for web welfare shutdown By www.smh.com.au Published On :: Tue, 15 Dec 2015 22:35:03 GMT Centrelink clients around Australia are furious over missing payments. Full Article
en Centrelink's IT meltdown hits the disability pension By www.smh.com.au Published On :: Mon, 21 Dec 2015 21:45:06 GMT Centrelink's tech woes disrupts Disability Pension medical crackdown. Full Article
en Centrelink wrongly hits 70,000 families with bills for up to $726 By www.smh.com.au Published On :: Thu, 07 Jan 2016 07:49:06 GMT Computer glitch blamed as welfare agency hits tens of thousands with bills for money that is not owed. Full Article
en Troubled myGov website to be taken from Human Services and given to Digital Transformation Office for streamlining By www.smh.com.au Published On :: Thu, 28 Jan 2016 12:30:00 GMT Malcolm Turnbull's DTO has been critical of myGov, now it has the chance to show it can do better. Full Article
en ACT government defends seeking access to Canberrans' metadata By www.smh.com.au Published On :: Sun, 31 Jan 2016 13:00:00 GMT The ACT government has defended its right to seek access to Canberrans' private phone and internet records without a warrant. Full Article
en Government acknowledges poor internet in Canberra's south but sticks to NBN plan By www.smh.com.au Published On :: Sun, 06 Mar 2016 13:00:00 GMT Minister for Communications acknowledges some areas of Canberra's southern suburbs have poor internet access. Full Article
en Recruitment drive for cyber security specialists will bring challenges for government By www.smh.com.au Published On :: Mon, 02 May 2016 19:51:02 GMT Fear government's cyber security recruitment drive will lead to job cuts. Full Article
en Government agencies name cybercrime as their top fraud risk: PwC By www.smh.com.au Published On :: Tue, 26 Jul 2016 14:15:00 GMT The 'typical' corrupt bureaucrat is a male, university-educated middle manager, aged 41 to 50. Full Article
en Governments should hack less, deliver better online services: Harvard IT expert By www.smh.com.au Published On :: Sat, 30 Jul 2016 13:30:00 GMT Western governments have established the international norm of online hacking and should not be surprised when foreign governments do the same. Full Article
en Centrelink apologises for new privacy breach By www.smh.com.au Published On :: Sat, 05 Nov 2016 06:37:10 GMT Rookie email error shares hundred of email addresses – twice. Full Article
en Is the Australian government agile and innovative? Not to those in the start-ups world By www.smh.com.au Published On :: Wed, 02 Nov 2016 04:25:22 GMT Public service departments "too nervous" to innovate, say start-ups. Full Article
en Digital Transformation Agency boss Paul Shetler resigns By www.smh.com.au Published On :: Sun, 02 Jul 2017 22:05:05 GMT Agile government takes a stumble as digital pioneer logs off after just six weeks. Full Article
en Digital government could become just more cost cutting, warns Internet Australia By www.smh.com.au Published On :: Sun, 04 Dec 2016 13:00:00 GMT Revolving door at digital agency must stop, says Labor. Full Article
en Can the government really protect your privacy when it 'de-identifies' public data? By www.smh.com.au Published On :: Mon, 05 Dec 2016 12:45:00 GMT We don't really know to how to use big data and protect personal information at the same time. Full Article
en Brisbane City Council IT contract faces potential $60 million blow-out By www.smh.com.au Published On :: Wed, 25 Jan 2017 05:49:06 GMT A $122 million Brisbane City Council IT contract will be renegotiated after a systems replacement program was delayed by 18 months, with a potential cost blow-out of up to $60 million. Full Article
en Centrelink debt debacle shows government is unprepared for digital revolution By www.smh.com.au Published On :: Mon, 06 Feb 2017 13:15:00 GMT The public service needs to embrace partnerships if it's to harvest big data's massive yields. Full Article
en ACT scientist teaches computers to police the border By www.smh.com.au Published On :: Sun, 02 Apr 2017 02:08:08 GMT A Canberra-based scientist is teaching computers to pick up suspicious activity at the border. Full Article
en Auditor-general exposes weaknesses in ACT government's IT systems By www.smh.com.au Published On :: Mon, 08 May 2017 02:35:19 GMT Electronic sexual health records and the births, deaths and marriages registry have been left exposed. Full Article
en How federal government departments are protecting Australians' data against cyber hack By www.smh.com.au Published On :: Mon, 15 May 2017 10:09:02 GMT Cyber Security Minister Dan Tehan says the government can't rule out vulnerabilities to cyber threats. Full Article
en Robot to greet visitors to Queensland government office By www.smh.com.au Published On :: Mon, 31 Jul 2017 08:51:06 GMT Visitors to two Queensland government offices in 1 William Street will be greeted by a robot, as part of a new trial. Full Article
en Labor to push for Senate inquiry into $10b government IT spend and tech wrecks By www.smh.com.au Published On :: Sun, 13 Aug 2017 14:01:00 GMT The probe would investigate a trail of blunders that have shredded the government's reputation. Full Article
en Construction of mega new IT data storage centre under way in Fyshwick By www.smh.com.au Published On :: Sun, 27 Aug 2017 14:00:00 GMT Fyshwick is set to get another massive IT data storage facility from 2018. Full Article
en FIFA 18 and Harry Potter play rescued from bots by Queensland start-up By www.smh.com.au Published On :: Sun, 31 Dec 2017 02:16:04 GMT The FIFA soccer game and Harry Potter and the Cursed Child have been protected from bots thanks to a Queensland start-up. Full Article
en Microsoft cloud targets critical government business in Canberra By www.smh.com.au Published On :: Mon, 02 Apr 2018 14:00:00 GMT Two new regions of Microsoft's Azure cloud will open in Canberra on Tuesday. Full Article
en Face scanning falls flat as part of digital credentials push By www.smh.com.au Published On :: Thu, 18 Jul 2019 01:14:02 GMT State government's facial recognition ID check is now required for those seeking solar rebates, but it failed 40 per cent of the time during the first two weeks. Full Article
en Smart Energy Council calls for state to abandon facial recognition By www.smh.com.au Published On :: Tue, 23 Jul 2019 01:27:04 GMT Some users have been brought to tears by 'broken' facial recognition software now required to approve solar rebate applications. Full Article
en Why China Should Be Wary of Devaluing the Renminbi By feedproxy.google.com Published On :: Thu, 29 Aug 2019 15:53:29 +0000 29 August 2019 David Lubin Associate Fellow, Global Economy and Finance Programme @davidlubin There are four good reasons why Beijing might want to think twice before using its currency to retaliate against US tariffs. 2019-08-29-Renminbi.jpg RMB banknotes. Photo: Getty Images The renminbi seems to be back in business as a Chinese tool of retaliation against US tariffs. A 1.5 per cent fall in the currency early this month in response to proposed new US tariffs was only a start. Since the middle of August the renminbi has weakened further, and the exchange rate is now 4 per cent weaker than at the start of the month. We may well see more of a ‘weaponized’ renminbi, but there are four good reasons why Beijing might be wise to think before shooting.The first has to do with how China seeks to promote its place in the world. China has been at pains to manage the collapse of its relations with the US in a way that allows it to present itself as an alternative pillar of global order, and as a source of stability in the international system, not to mention moral authority. This has deep roots.Anyone investigating the history of Chinese statecraft will quickly come across an enduring distinction in Chinese thought: between wang dao, the kingly, or righteous way, and ba dao, the way of the hegemon. Since Chinese thinkers and officials routinely describe US behaviour since the Second World War as hegemonic, it behoves Chinese policymakers to do as much as possible to stay on moral high-ground in their behaviour towards Washington. Only in that way would President Xi be able properly to assert China’s claim to leadership.Indeed, China has a notable track record of using exchange rate stability to enhance its reputation as a force for global stability. Both in the aftermath of the Asian crisis in 1997, and of the Global Financial Crisis in 2008, Chinese exchange rate stability was offered as a way of demonstrating China’s trustworthiness and its commitment to multilateral order.Devaluing the renminbi in a meaningful way now might have a different rationale, but the cost to China’s claim to virtue, and its bid to offer itself as a guardian of global stability, might be considerable.That’s particularly true because of the second problem China has in thinking about a weaker renminbi: it may not be all that effective in sustaining Chinese trade. One reason for this is the increasing co-movement with the renminbi of currencies in countries with whom China competes.As the renminbi changes against the dollar, so do the Taiwan dollar, the Korean won, the Singapore dollar and the Indian rupee. In addition, the short-run impact of a weaker renminbi is more likely to curb imports than to expand exports, and so its effects might be contractionary. An ineffective devaluation of the renminbi would be particularly useless because of the third risk China needs to consider, namely the risk of retaliation by the US administration. Of this there is already plenty of evidence, of course.The US Treasury’s declaration of China as a ‘currency manipulator’ on 5 August bears little relationship to the actual formal criteria that the Treasury uses to define that term, but equally the US had warned the Chinese back in May that these criteria don’t bind its hand. By abandoning a rules-based approach to the definition of currency manipulation, the US has opened wide the door to further antagonism, and Beijing should have no doubt that Washington will walk through that door if it wants to.The fourth, and possibly most self-destructive, risk that China has to consider is that a weaker renminbi might destabilize China’s capital account, fuelling capital outflows that would leave China’s policymakers feeling very uncomfortable.Indeed, there is already evidence that Chinese residents feel less confident that the renminbi is a reliable store of value, now that there is no longer a sense that the currency is destined to appreciate against the dollar. The best illustration of this comes from the ‘errors and omissions’, or unaccounted-for outflows, in China’s balance of payments.The past few years have seen these outflows rise a lot, averaging some $200 billion per year during the past four calendar years, or almost 2 per cent GDP; and around $90 billion in the first three months of 2019 alone. These are scarily large numbers.The risk here is that Chinese expectations about the renminbi are ‘adaptive’: the more the exchange rate weakens, the more Chinese residents expect it to weaken, and so the demand for dollars goes up. In principle, the only way to deal with this risk would be for the People's Bank of China (PBOC) to implement a large, one-off devaluation of the renminbi to a level at which dollars are expensive enough that no one wants to buy them anymore.This would be very dangerous, though: it presupposes that the PBOC could know in advance the ‘equilibrium’ value of the renminbi. It would take an unusually brave central banker to claim such foresight, especially since that equilibrium value could itself be altered by the mere fact of such a dramatic change in policy.No one really knows precisely by what mechanism capital outflows from China have accelerated in recent years, but a very good candidate is tourism. The expenditure of outbound Chinese tourists abroad has risen a lot in recent years, and that increase very closely mirrors the rise in ‘errors and omissions’. So the suspicion must be that the increasing flow of Chinese tourists – nearly one half of whom last year simply travelled to capital-controls-free Hong Kong and Macao – is just creating opportunities for unrecorded capital flight.This raises a disturbing possibility: that the most effective way for China to devalue the renminbi without the backfire of capital outflows would be simultaneously to stem the outflow of Chinese tourists. China has form in this regard, albeit for differing reasons: this month it suspended a programme that allowed individual tourists from 47 Chinese cities to travel to Taiwan.A more global restriction on Chinese tourism might make a devaluation of the renminbi ‘safer’, and it would have the collateral benefit of helping to increase China’s current account surplus, the evaporation of which in recent years owes a lot to rising tourism expenditure and which is almost certainly a source of unhappiness in Beijing, where mercantilism remains popular.But a world where China could impose such draconian measures would be one where nationalism has reached heights we haven’t yet seen. Let’s hope we don’t go there.This article was originally published in the Financial Times. Full Article
en Development Prospects in the Asia-Pacific: The Role of the Asian Development Bank By feedproxy.google.com Published On :: Wed, 04 Sep 2019 12:55:01 +0000 Research Event 25 September 2019 - 12:30pm to 1:30pm Chatham House | 10 St James's Square | London | SW1Y 4LE Event participants Takehiko Nakao, President, Asian Development BankChair: Champa Patel, Head, Asia-Pacific Programme, Chatham House The speaker will discuss development prospects in the Asia-Pacific and their implications for Europe and the UK. He will outline prospects for the region’s growth, the impact of the current US-China trade conflict as well as other challenges faced by the region. He will also discuss the future role of the Asian Development Bank and how it plans to support the further development of the region. Department/project Asia-Pacific Programme, Sustainable and Inclusive Growth, Trade, Investment and Economics Lucy Ridout Programme Administrator, Asia-Pacific Programme +44 (0) 207 314 2761 Email Full Article
en Petro-RMB? The oil trade and the internationalization of the renminbi By feedproxy.google.com Published On :: Wed, 04 Sep 2019 14:13:14 +0000 4 September 2019 , Volume 95, Number 5 Maha Kamel and Hongying Wang Read online In this article, we examine China's promotion of the renminbi (RMB) in international oil trade and explore its implications for the international currency system in the short and the long term. The article traces the rise of the RMB in international oil trade in recent years and provides an analysis of its impact on the internationalization of the Chinese currency. We argue that despite the increasing use of the yuan in oil trade in recent years, in the short term it is highly unlikely that a petro-RMB system will emerge to rival the petrodollar system. Unlike the petrodollar, which combines the qualities of a master currency, a top currency and a negotiated currency, China lacks the economic leadership and the political and geopolitical leverages to make the RMB a major petrocurrency. Although the emergence of the RMB-denominated Shanghai oil futures is an important development, the absence of highly developed financial markets and a strong legal system in China hinders its potential. In the long run, the RMB may take on a more prominent role in the international oil trade as China's weight as an oil importer rises. More importantly, the overuse of financial sanctions by the US government has begun to undermine the role of the dollar within and beyond the oil trade. In addition, the rise of alternative energy sources will diminish the centrality of oil in the world economy, thus reducing the significance of petrocurrencies—whether the dollar or the RMB—in shaping the international currency system. Full Article
en New Dimensions in Trade Law By feedproxy.google.com Published On :: Tue, 01 Oct 2019 10:25:01 +0000 Research Event 6 November 2019 - 9:15am to 4:15pm Chatham House | 10 St James's Square | London | SW1Y 4LE Event participants Speakers include:Dr Lorand Bartels, Reader in International Law; Fellow, Trinity House, University of CambridgeLaura Bannister, Senior Adviser on EU-UK Trade, Trade Justice MovementPeter Holmes, Fellow, UKTPO; Reader in Economics, University of SussexAndrew Hood, Partner, Regulatory & Trade, FieldFisher LLP At this event, which forms the second annual UK Trade Policy Observatory conference, there will be six presentations over the course of the day before concluding with a panel discussion and Q&A. This year’s conference will focus on the following legal areas of trade policy:Blockchain: Creating and Eliminating Trade in ServicesChina's Role in the International Trading SystemOfficial Export Support: Compliance and Competition ConcernsStrategic Litigation and Health Regulation: Implications for International Economic LawDevelopment, Labour Standards and Sustainability in Trade AgreementsRetaining Versus Reforming EU Food Safety Legislation: Selected Issues for a US-UK Trade NegotiationTo register for this event, please click here. Department/project Global Economy and Finance Programme, UK Trade Policy Observatory Full Article
en Rethinking 'The Economic Consequences of the Peace' By feedproxy.google.com Published On :: Mon, 07 Oct 2019 15:10:01 +0000 Members Event 25 November 2019 - 1:00pm to 2:00pm Chatham House | 10 St James's Square | London | SW1Y 4LE Event participants Professor Michael Cox, Associate Fellow, US and the Americas Programme, Chatham House; Director, LSE IDEASProfessor Margaret MacMillan, Professor of History, University of Toronto; Emeritus Professor of International History, University of OxfordDr Geoff Tily, Senior Economist, TUC; Author, Keynes Betrayed: The General Theory, the Rate of Interest and 'Keynesian' EconomicsChair: Dr Jessica Reinisch, Reader in Modern European History, Birkbeck University of London John Maynard Keynes' The Economic Consequences of the Peace has long been a key reference point in discussions about the Treaty of Versailles and its impact on Germany and Europe’s rehabilitation. A century after its publication, the relevance of Keynes’ thinking – not least the influence it had on public perception of the treaty itself – offers an insight into the impact of expert analysis on how political decisions are received in public and academic spheres.This panel discusses the author, the book and the controversy they have generated up to the present day. How relevant is Keynes’ polemic and how applicable is his European economic recovery plan to our current period of global dislocation? What is the role of experts in the formation and scrutiny of international politics? And how can contemporary politicians use Keynes’ comprehensive assessment of the intersection between political, social and economic realities and national idealism to inform their approaches to international relations? Members Events Team Email Full Article
en Could Brexit Open Up a New Market for Latin American Agriculture? By feedproxy.google.com Published On :: Tue, 08 Oct 2019 08:49:18 +0000 8 October 2019 Dr Christopher Sabatini Senior Research Fellow for Latin America, US and the Americas Programme @ChrisSabatini LinkedIn Anar Bata Coordinator, US and the Americas Programme The demand will be there, but a range of barriers are likely to limit growth in agricultural trade links between the UK and Latin America. 2019-10-08-Brazil.jpg An area of forest-pasture integration prepared to receive dairy cattle for feeding in Ipameri, Brazil. Photo: Getty Images. Currently 73% of all UK agricultural imports come from the EU. That heavy dependence sparked a report by the British parliament expressing concern about the UK’s food security in the immediate aftermath of Brexit.Meanwhile, Latin America’s agricultural powerhouses Brazil and Argentina only accounted for a total of 1.6% of the UK’s agricultural market across eight sectors in 2018. A growing relationship would seem to be an obvious fit post-Brexit – but a number of structural issues stand in the way.There is certainly scope for increasing Latin American agricultural exports to the UK given current trade patterns. Two of the main agricultural imports that the UK buys from the EU are meat products, representing 82% of UK imports in that category, and dairy products and eggs; 98% of UK’s dairy- and egg-related external supply came from the EU. In both these areas, Brazil and Argentina could have comparative advantages, including lower prices.But any improvement in agricultural trade links will depend on two factors: 1) how the UK leaves the EU: whether it crashes out, negotiates an easy exit or leaves at all; and 2) whether Latin American agricultural producers can improve their environmental practices and can meet the production standards established by the EU and likely maintained by a post-Brexit Britain.Some of the key issues that will affect this are:Tariff structuresOn the UK side, there is pressure by domestic agricultural producers to raise UK tariffs to allow them to expand their local market share. Yet, despite the pressures from local farmers, the UK has laid out two scenarios.In one case, the UK government has stated that in the event of a no-deal Brexit, tariffs will be lowered to 0%, but there is no firm commitment and this would likely be temporary. It is also unlikely that those would apply to all agricultural products. In the case of beef imports (of which Argentina and Brazil are major exporters), the UK has proposed that ‘no deal’ would bring a reduction on tariffs on a range of beef products of roughly half.Meanwhile, tariffs on EU imports could go up. Even if the UK establishes 0% tariffs on EU products, it’s possible that the EU will not reciprocate, instead choosing to revert to the World Trade Organization’s most-favoured-nation tariffs. To take one example of what that would mean, under existing most-favoured-nation tariffs on beef, the tariffs range from €6.80 per 100 kilograms of full bovine carcasses or half carcasses all the way up to €161.10 for 160 kilograms of prepared or preserved meat, including sausages.Free trade agreements between the EU and Latin American countriesThe EU has free trade agreements with the Central American bloc of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama; Mexico; Chile; and the Andean countries of Colombia, Ecuador, and Peru. In all those cases, the UK has expressed its desire to maintain its liberal trade framework with those countries.Even if the UK leaves without a deal and tariffs do increase on EU agricultural exports, though, these Western Hemisphere economies are unlikely to see a large boost in their food exports to the UK. Chile and other large fruit producers are already locked into the Chinese market. And the real agricultural powerhouses, Argentina and Brazil, are now part of the EU trade agreement with Mercosur.Since that agreement is not yet in force, the UK and Mercosur would need to negotiate a separate agreement. Such an agreement may be easier to ratify than the EU agreement since there is only one partner (the UK) for such a deal, but the likely change in government in Argentina after the 27 October elections may make it difficult to secure a deal on the Mercosur side.Some EU trade agreements also include arrangements for tariff rate quotas. An EU quota with Argentina, for example, allows more than 280,000 tonnes of lamb to be imported to the EU duty free from Argentina, among other countries. It is unclear whether these quotas will be maintained or even expanded by the UK post-Brexit. Phytosanitary standards and rules governing the treatment of animalsNon-tariff barriers concerning production practices could play a key role. The large UK consumer organization Which? raised the concern before parliament that in the scramble to replace EU food imports, the UK could diverge from EU standards on animal cloning, the use of growth hormones and hygiene in poultry production. Pressure to maintain those standards would likely exclude many products from South America.Beyond the regulatory barriers, there is also the possibility that UK consumers may reject agricultural products produced in less sustainable and humane conditions, or in countries (such as Brazil) that are seen by the public as abusing the environment.In short, an increase in Latin American agricultural exports to the UK market may not happen as easily or as quickly as some hope after Brexit. In fact, it may not happen at all. But if Latin American countries – Argentina and Brazil in particular – want to capture this potential new market, the first step both should be to improve their environmental profile and standards at both the government and producer level. Full Article