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Air India saves Rs 400cr in restructuring driveAir India has saved Rs 400 crore in six months of restructuring, reports CNBCTV18, quoting sources. Full international bookings for DecemberJanuary are also helping the beleaguered public carrier.Source: Moneycontrol Top Headlines | 24 Nov 2009 | 8:24 am Maruti stops production of Versa, to launch new MUVMaruti says a new production line is likely to be set up at the Manesar unit, which will have a capacity of 3 lakh units per year.Source: Moneycontrol Top Headlines | 24 Nov 2009 | 8:20 am Sun TV to raise advertisement rates from Jan 1Broadcaster Sun TV Network Ltd said on Tuesday it plans to raise advertisement rates for some of its channels from Jan. 1, 2010.Source: Moneycontrol Top Headlines | 24 Nov 2009 | 8:00 am Now, cars may get dearerAutomakers are poised to hike prices of automobiles, not once but twice. Sources tell CNBCTV18 that auto manufacturers may increase car prices but 510% in January and another round of price hike may follow in April 2010.Source: Moneycontrol Top Headlines | 24 Nov 2009 | 7:16 am Subir Gokarn takes charge as RBI deputySubir Gokarn on Tuesday took over as the deputy governor of the Reserve Bank of India, the RBI said in a statement.Source: Moneycontrol Top Headlines | 24 Nov 2009 | 7:11 am BSE to launch faster feed next weekThe Bombay Stock Exchange, whose data pipelines are burdened by the need to carry pricing of more stocks than any other bourse, will next week launch a feed that is several times faster than its existing offering, a top official said.Source: Moneycontrol Top Headlines | 24 Nov 2009 | 7:11 am Govt invites bankers to manage NTPC stake saleThe government has invited proposals from merchant bankers to manage the government\'s proposed 5% stake sale in leading utility NTPC, which could fetch about USD 1.9 billion at current market prices.Source: Moneycontrol Top Headlines | 24 Nov 2009 | 7:11 am Aegis Logistics, Essar Oil to cross sell fuelAegis Logistics said on Tuesday it has entered into a strategic alliance with Essar Oil to cross sell fuel through their retail outlets.Source: Moneycontrol Top Headlines | 24 Nov 2009 | 7:11 am Whirlpool may raise product prices by 2% across categoriesIn an exclusive interview with CNBCTV18, Shantanu Dasgupta, VP Corporate Affairs and StrategySouth Asia, of Whirlpool Corporation, spoke on the latest developments in the company.Source: Moneycontrol Top Headlines | 24 Nov 2009 | 7:02 am DCB to use Rs 81cr QIP proceed in mortgage biz, SMEIn an interview with CNBCTV18, Murali M Natrajan, MD and CEO of DCB spoke about the companys recent funding raising activity and the road ahead.Source: Moneycontrol Top Headlines | 24 Nov 2009 | 5:48 am MTS launches high speed broadband services in RajasthanSistema-Shyam, which offers its mobile telephony services under the brand name of MTS, today launched its high speed data services with a downloading rate of little as 10 p/MB in three cities of Rajasthan-- Jaipur, Jodhpur and Bhiwadi.Source: HindustanTimes.com - Top Business News Headlines | 24 Nov 2009 | 3:44 am More careful exit from easy policy must - RBIMUMBAI (Reuters) - Exit from the accomodative monetary policy stance has to be done carefully and strategically, Reserve Bank of India's newly appointed deputy governor said after joining office on Tuesday.Source: Reuters: Money News | 24 Nov 2009 | 3:20 am BSE Sensex provisionally closes down 0.6 pctMUMBAI (Reuters) – The BSE Sensex provisionally dropped 0.6 percent on Tuesday as investors took profits in stocks such as Reliance Industries and ICICI Bank after a recent rally.Source: Reuters: Money News | 24 Nov 2009 | 3:18 am Jindal Steel unit to set up 1,600 MW power plantMUMBAI (Reuters) - Jindal Steel & Power said on Tuesday its unit Jindal Power will be setting up a 1,600 MW hydro power plant on the tributary of Subansiri river in the north-eastern state of Arunachal Pradesh.Source: Reuters: Money News | 24 Nov 2009 | 2:58 am Maruti stops production of Versa, to launch new MUV - Moneycontrol.com
Source: Business - Google News | 24 Nov 2009 | 2:56 am Britain's Lloyds announces further job losses - Moneycontrol.com
Source: Business - Google News | 24 Nov 2009 | 2:52 am No strong inflow measures now - PM adviserNEW DELHI (Reuters) - India can absorb nearly $100 billion of dollars in capital inflows, nearly double for what is on track this year, before it needs to take strong restrictive measures, one of the prime minister's top advisers said on Tuesday.Source: Reuters: Money News | 24 Nov 2009 | 2:40 am Gold eases to spur slight demand pick-upMUMBAI (Reuters) - Gold eased from their record highs on Tuesday, triggering a slight pick-up in wholesale demand in the middle of wedding season, but a weaker rupee weighed on traders' sentiment, dealers said.Source: Reuters: Money News | 24 Nov 2009 | 2:38 am Learning from the Indian billionaire list - Reuters India
Source: Business - Google News | 24 Nov 2009 | 2:32 am NSE joins Twitter clubNew Delhi: The National Stock Exchange (NSE) has joined the fast-growing ‘Twitterati´ club, and to start with the bourse has begun posting live quotes of its benchmark index Nifty on the micro-blogging website Twitter. With this, NSE has become the first Indian bourse—and so far the only one—to have a presence on Twitter, which has become a favoured short-messaging social networking website and can be accessed through mobile phone and internet. Outside India, exchanges and indices having established their presence on Twitter include Nasdaq of the US and London Stock Exchange’s FTSE. NSE currently posts quotes of its Nifty index, including the current level as also the highs and lows, every 10 minutes during the market hours and plans to expand its presence to other information for investors over the time. In just about a week of its launch, the NSE has already registered about 1,600 followers for its ‘tweet´ messages, which are capped at a maximum of 140 characters per post. So far, about 500 tweets have been posted on the exchange’s page on the Twitter. An exchange official said that the NSE has distinguished itself from other bourses with its presence on Twitter. The exchange aims to add some more indices and tools on the social networking site on coming period. “To start with, it’s a live ticker of Nifty only, but it will change over the time. Through Twitter, an investor can be in touch with the market,” the official said. With Twitter, the investors can reach the NSE with their mobiles only and need not log onto Internet through computers. Twitter is a free social networking and micro-blogging service that enables a user to send and read messages known as tweets. Tweets are text-based posts of up to 140 characters. A user can send and receive tweets through the Twitter website or short message service (SMS) on mobile phone. NSE’s rival Bombay Stock Exchange (BSE), the oldest bourse in Asia, is yet to join Twitter, but recently launched a redesigned version of its website. Source: Tech News - Livemint.com | 24 Nov 2009 | 2:28 am Rupert Murdoch courts trouble if he blocks Google on newsRupert Murdoch has spent months complaining that Google is ruining the newspaper business, and now he wants to do something about it.Source: Daily News & Analysis: Money News | 24 Nov 2009 | 2:14 am Nifty lackkustre; M&M, Maruti, Bharti up - Economic Times
Source: Business - Google News | 24 Nov 2009 | 2:11 am No dearth of foodgrains for PDS: Pawar - Indian Express
Source: Business - Google News | 24 Nov 2009 | 2:09 am GMDC, Ashapura Minechem, Unitech: India Capital's top picks - Moneycontrol.com
Source: Business - Google News | 24 Nov 2009 | 2:08 am Suzuki to build Thai small-car plant for 2012 startSuzuki Motor Corp said it would build a factory in Thailand with the capacity to manufacture 100,000 small cars a year after receiving government approval for the project.Source: Daily News & Analysis: Money News | 24 Nov 2009 | 2:05 am HP triples stock buyback plan, profit up 14 pctA strong performance in China and improved profit margins in its services business helped boost quarterly earnings.Source: Daily News & Analysis: Money News | 24 Nov 2009 | 2:02 am BSE to roll out websites in regional languages - Times of India
Source: Business - Google News | 24 Nov 2009 | 1:56 am BSE to roll out websites in regional languagesLeading bourse Bombay Stock Exchange will soon roll out websites in many regional languages including Marathi, Tamil and Punjabi, a senior official said.Source: India Business News | Business News - Times of India | 24 Nov 2009 | 1:30 am Asia shares slip as risk shunnedHong Kong: The dollar recouped some of its overnight losses on Tuesday, while Asian shares slipped as investors shrugged off upbeat US home sale data and took light profits on recent rallies. Financial bookmakers expected shares in Europe to open lower while US equity futures were down 0.2%. The dollar recovered ground as investors in Asia grew more cautious ahead of a string of US economic data this week and the start of the Christmas shopping season on Friday after the US Thanksgiving holiday, which will be a key test of consumer confidence. The dollar gained 0.3% against a basket of major currencies after falling in New York where the market took comments by a senior US Federal Reserve official on Sunday as further evidence the central bank would maintain its very low interest rate policy for some time. Trading at 75.272, the dollar index was above a 15-month low at 74.679 reached last week. Dealers in Tokyo said some investors were closing dollar short-positions ahead of the Thanksgiving holiday. Asian shares slid, despite a solid performance on Wall Street after data showed existing home sales reached their highest level in two-and-a-half years, as profit taking set in. The Shanghai market was worst hit with the dollar-denominated B-share index plunging more than 8% by mid-afternoon as investors gave up on hopes for government measures to support the market. Such speculation, including one that China might merge B shares with an international board being set up for foreign firms to list in Shanghai, had sparked a near 20% market rally earlier this month. The MSCI index of Asia Pacific stocks traded outside Japan fell 0.6% but it has already rallied 66% this year, leading some investors to question whether data is strong enough to justify further gains at this stage. “I think everyone has been waiting for a downturn for so long and it hasn’t come. There’s a bit of nervousness out there, you’ve got gold at record levels,” said Martin Angel, a dealer at Patersons Securities in Australia, where shares slid 0.7%. Revised third-quarter US GDP data and a US consumer confidence report later on Tuesday will give more clues on the strength of the world’s largest economy. Sales at US retailers on Friday after the holiday could yield vital clues to the recovery power of American consumers, whose spending accounts for more than two-thirds of the economy. They could also signal whether Asian exporters can expect a rush of late orders before Christmas. Shares in Japan fell 1% as a firm yen hit exporters shares and investors worried about the economy. Japanese stocks show a striking divergence with their Asian peers. While the MSCI Asia Pacific ex-Japan is only just below a 14-month high and sitting on gains of nearly 70% this year, the MSCI Japan languishes at a seven-month low and is negative for the year. Policy uncertainty is helping depress sentiment. Japanese finance minister Hirohisa Fujii said on Tuesday that demand was weak and fiscal policy alone could not revive it, putting pressure on the Bank of Japan to respond to deflation and fanning a policy dispute between the government and the central bank. “The Bank of Japan is asleep at the wheel as usual,” banking minister Shizuka Kamei told reporters. Japan Airlines was one of the biggest losers, tumbling 8.4%, hitting a record low at one point, on fears the struggling carrier could face bankruptcy. As the dollar steadied, gold retreated to $1,166 an ounce as investors booked profits after the precious metal scaled a record high at $1,173.50 on Monday. Traders, however, said sentiment remained bullish, underpinned by expected prolonged weakness in the dollar which makes bullion cheaper for holders of other currencies and boosts its appeal as an alternative asset. Investors were also taking profits on the Australian dollar, which succumbed to a wave of profit taking from stellar gains before the year ends. A trader with a US bank said hedge funds had been among the biggest sellers of the Aussie in recent days. Oil prices were little changed at around $77.60 a barrel ahead of a weekly inventory report due later from the American Petroleum Institute. Source: Home - Livemint.com | 24 Nov 2009 | 1:23 am Oil above $77 in holiday-thinned tradeSingapore: Oil eased on Tuesday to hover above $77 a barrel, weighed down by a firmer greenback, but trade thinned ahead of the Thanksgiving holiday and weekly US data that could show rising crude stocks in the world’s top oil user. The dollar trimmed losses as Tokyo stocks failed to follow up a stronger day on Wall Street, prompting some to buy the dollar back, and as some investors closed dollar-short positions before the Thanksgiving holiday. A weekly report, due later from the American Petroleum Institute (API), which is likely to paint a more bearish picture of US energy demand, could offer more trading cues in a holiday-thinned week. With a slew of economic data due this week, including November consumer confidence and revised US third-quarter gross domestic product figures on Tuesday, as well as the minutes of the Fed’s last policy meeting, traders will be scouring the numbers for signs of improvement in the world’s largest economy. “Crude has come off a fraction this morning due to a stronger dollar, but it’s nothing dramatic, and not a lot is going to happen ahead of the Thanksgiving holiday,” said Peter McGuire, managing director of Commodity Warrants Australia. “The market is basically in a holding pattern, awaiting more data.” US crude for January delivery eased 30 cents to $77.26 a barrel by 12:30pm, after settling up 9 cents at $77.56 on Monday. London Brent crude fell 14 cents to $77.32. While oil is up about 74% this year, it is still down 47% from its July 2008 high over $147 a barrel. A Reuters survey of analysts forecast US inventory data to show a 1.6 million barrel build in crude stocks for the week to 20 November, as production rebounded from Gulf of Mexico disruptions caused by Tropical Storm Ida. Product stocks were also seen higher ahead of the release of the weekly report by the American Petroleum Institute at 2:00am. Oil markets have looked toward broad economic data this year for signs of a global recovery that could boost flagging fuel demand. At 7:00pm, the US Commerce Dept will unveil its revised estimate of third-quarter GDP growth. Economists forecast a 2.9% annualised pace of growth, compared with a 3.5 percent rate in the first Q3 estimate. A US consumer confidence reading for November will also be released by the Conference Board at 8:30am. Economists expect a reading of 47.7, steady versus October’s level. US stocks snapped a three-day losing streak on Monday as stronger-than-expected home sales data fueled optimism while a weaker dollar boosted commodity-linked stocks. Investors have been buying into commodities in a bid to hedge against the dollar’s weakness and to guard against concerns an ultra-easy monetary policy could lead to a jump in inflation as the world economy rebounds. Prices were also supported by forecasts of a colder-than-expected US winter early next year and tension surrounding Iran’s air defence war games on Sunday. Private weather forecaster WSI Corp said on Monday the US Northeast, the world’s top consumer of heating oil, would have a warmer December than normal, followed by colder than usual temperatures in January and February. Iran’s war games came a day after senior officials from six world powers said they were disappointed the country had not accepted proposals meant to delay its potential to make nuclear weapons, with US President Barack Obama warning there could be a package of sanctions within weeks. Source: Home - Livemint.com | 24 Nov 2009 | 1:14 am Subir Gokarn takes charge as RBI deputyMUMBAI (Reuters) - Subir Gokarn on Tuesday took over as the deputy governor of the Reserve Bank of India (RBI), the RBI said in a statement.Source: Reuters: Money News | 24 Nov 2009 | 1:10 am Indian markets trading weak in afternoon sessionIndian equities were trading weak mid-afternoon Tuesday, with a key index fluctuating in a narrow range after dropping some 200 points from the day's high.Source: IndiaeNews.com: Business News | 24 Nov 2009 | 1:00 am Nooyi for active role of US business community in India s developmentNoting that India's rapid growth is a critical engine of global economy, PepsiCo chief Indra Nooyi has said the business community in the US was eager on playing an active role in the country's future economic development.Source: HindustanTimes.com - Top Business News Headlines | 24 Nov 2009 | 12:22 am BSE to launch faster feed next weekMUMBAI (Reuters) - The Bombay Stock Exchange, whose data pipelines are burdened by the need to carry pricing of more stocks than any other bourse, will next week launch a feed that is several times faster than its existing offering, a top official said.Source: Reuters: Money News | 24 Nov 2009 | 12:22 am Anil Ambani present in SC for gas row hearingAnil Ambani was on Tuesday present in the Supreme Court for the ongoing hearing of the gas row between his group RNRL and his brother's RIL.Source: HindustanTimes.com - Top Business News Headlines | 24 Nov 2009 | 12:11 am Sensex down 68 pts Nifty falls below 5 100 ptsThe Bombay Stock Exchange benchmark Sensex declined by 68.60 points to 17,111.58 points. It had gained about 395 points in the past two sessions.Source: HindustanTimes.com - Top Business News Headlines | 24 Nov 2009 | 12:07 am Liberhan report tabled in LS along with ATRNew Delhi: The Liberhan Commission Report on Babri Masjid demolition and Action Taken Report on it was on Tuesday tabled in Lok Sabha. The English version of the report was tabled by home minister P Chidambaram during Zero Hour a day after the leakage of the findings set off a political storm. The decision to table the report of the Commission was taken at a meeting of the Union Cabinet chaired by finance minister Pranab Mukherjee in the absence of Prime Minister Manmohan Singh, who is away in the United States. The Commission, headed by Justice M.S. Liberhan, probed the Babri Masjid demolition in 1992 and submitted its findings to the government on June 30 this year after an inquiry spanning nearly 17 years. Publication of excerpts of the report had sparked a furore with the main opposition BJP accusing the government of “selectively leaking” the report which is believed to have indicted top BJP leaders L.K. Advani, Murli Manohar Joshi and other functionaries for the demolition of the structure. Congress had hit back saying the whole nation knows that the BJP had shed “crocodile tears” after its senior functionaries had watched people causing destruction and mayhem. Source: Home - Livemint.com | 24 Nov 2009 | 12:05 am No immediate impact on RIL from Lyondell offer: Fitch - Moneycontrol.com
Source: Business - Google News | 24 Nov 2009 | 12:00 am Marketmen give thumbs-up to Reliance proposalMumbai, Nov. 23 Reliance Industries Ltd (RIL) was among the top gainers on the bourses as the scrip rose on the back of last week’s news of the company submitting a non-binding cash offer to take a controlling interest in chemicals makerSource: Business Line - Home Page | 24 Nov 2009 | 12:00 am Credit card volumes shrink as banks turn cautiousMumbai, Nov 23 With many banks closing inactive and unproductive accounts in their credit cards portfolio, the total credit card base in India could shrink by 8 per cent to 2.26 crore by March-end 2010 compared with 2.47 crore as of March-endSource: Business Line - Home Page | 24 Nov 2009 | 12:00 am Govt may do away with lock-in period for FDI in real estateSetting the stage for easier FDI norms in the real estate sector, the Government is considering a proposal to do away with the three-year lock-in stipulation for repatriation of foreign investments in SPV projects.Source: Business Line - Home Page | 24 Nov 2009 | 12:00 am JSW Energy to raise Rs 2,700 cr through IPOMumbai, Nov. 23 JSW Energy, a wholly-owned subsidiary of the JSW Group, plans to raise Rs 2,700 crore through an initial public offering. The issue is scheduled to open on December 7 and close on DecemberSource: Business Line - Home Page | 24 Nov 2009 | 12:00 am Indian Bank (Rs 171.4): BuyWe recommend a buy in Indian Bank stock from a short-term perspective. It is evident from the charts of the stock that it has been on an intermediate-term up trend from its March low of Rs 63. In mid-September, it conclusively broke out of aSource: Business Line - Home Page | 24 Nov 2009 | 12:00 am Active monsoon conditions over south TN, KeralaNorth-East monsoon has been active over south Tamil Nadu and Kerala during the last 24 hours ending Monday morning, according to an update from the Chennai MetSource: Business Line - Home Page | 24 Nov 2009 | 12:00 am Punjab, Haryana buck all-India rice decline trendNew Delhi, Nov. 23 The country’s kharif rice production may be down almost 18 per cent this year – 69.45 million tonnes (mt) against last year’s 84.58 mt.Source: Business Line - Home Page | 24 Nov 2009 | 12:00 am Mission aims to bring solar power to grid price levels by 2022The Jawaharlal Nehru National Solar Mission — ‘Solar India’ — envisages bringing about price parity between solar and grid power by 2022 when the Mission ends.Source: Business Line - Home Page | 24 Nov 2009 | 12:00 am Reliance opts for consent route to settle RPL insider-trading issueReliance Industries has filed for consent terms with SEBI to settle the regulator’s proceedings against it for alleged insider trading in shares of Reliance Petroleum in late 2007.Source: Business Line - Home Page | 24 Nov 2009 | 12:00 am Day Trading GuideInitiate fresh short-position if DLF declines below Rs 364, with tight stop-loss. The stance stays positive as long as ICICI Bank trades above Rs 902 utilise dips to buy the stock with stiff stop-loss. WeSource: Business Line - Home Page | 24 Nov 2009 | 12:00 am BSE CEO says preparing for listingMUMBAI (Reuters) - The Bombay Stock Exchange is preparing for a listing and hopes to cut over-reliance on revenues from cash equity trading in two years, Madhu Kannan, the chief executive of Asia's oldest bourse, said on Tuesday.Source: Reuters: Money News | 23 Nov 2009 | 11:56 pm Govt invites bankers to manage NTPC stake saleMumbai: India has invited proposals from merchant bankers to manage the government’s proposed 5% stake sale in leading utility NTPC, which could fetch about $1.9 billion at current market prices. The proposals must be made by 3 December, the government said in an advertisement in the Economic Times newspaper. The invitation is also for a 10% stake sale in unlisted state power producer Satluj Jal Vidyut Nigam. The government had approved in October the stake sale in NTPC and Satluj, which analysts have said reflects the country’s resolve to speed up reforms and raise more resources for social schemes. The government has also said unlisted state firms making profits in the past three consecutive years should list, and all profitable, listed state firms must have at least 10% of their shares in public hands. Birla Sun Life Insurance estimates possible stake sales in state firms can fetch the government $18 billion over the next 15 to 20 months. Divestment, raising foreign investment limits in insurance and opening up the pensions sector are the key challenges faced by the Congress Party-led coalition since its re-election in May, even as it strives to cut fiscal deficit and accelerate growth amid a global slowdown. Source: LatestNews-Home - Livemint.com | 23 Nov 2009 | 11:52 pm Gold nears record highs; profit-taking seenIndia gold futures traded near their record highs on Tuesday helped by a weaker rupee, making the dollar-quoted asset expensive, analysts said.Source: India Business News | Business News - Times of India | 23 Nov 2009 | 11:51 pm Govt invites bankers to manage NTPC stake saleMUMBAI (Reuters) – The government has invited proposals from merchant bankers to manage the government's proposed 5 percent stake sale in leading utility NTPC, which could fetch about $1.9 billion at current market prices.Source: Reuters: Money News | 23 Nov 2009 | 11:45 pm Den Networks lists at Rs 195 on BSE - Hindu Business Line
Source: Business - Google News | 23 Nov 2009 | 11:38 pm BSE to roll out websites in regional languages soonMumbai: Leading bourse Bombay Stock Exchange will soon roll out websites in many regional languages including Marathi, Tamil and Punjabi, a senior official said on Tuesday. “BSE will soon roll out language websites...At present we have websites in Hindi, English and Gujarati... We will create more in Marathi, Tamil, Telegu and Punjabi,” the official said without wanting to be named. Maharashtra Navnirman Sena (MNS) last week submitted a memorandum to the exchange deputy chief executive officer Ashish Chauhan asking him for inclusion of Marathi in the BSE website. Meanwhile, market regulator SEBI said in a statement the reports suggesting that MNS has asked it to provide Marathi as an option on its website were erroneous. “SEBI does not have any officer with designation deputy chief executive officer or by the name of Ashish Kumar Chauhan. Sebi has neither relaunched its website recently nor does it have a Gujarati website.” Source: Home - Livemint.com | 23 Nov 2009 | 11:37 pm Obama aims to reassure PM on US-India tiesWashington: President Barack Obama hosts Indian Prime Minister Manmohan Singh on Tuesday for talks considered critical to showing Washington’s commitment to New Delhi in a region where its rivals, China and Pakistan, are US priorities. Obama’s challenge will be to ease the emerging Asian power’s concerns that it is slipping down his foreign policy agenda, dominated recently by efforts to craft a new war plan in Afghanistan and curb Iran’s nuclear ambitions. India hopes for a clear message from Obama that he intends to sustain momentum in improving diplomatic and economic ties that deepened under his predecessor, George W. Bush.  Prime Minister Manmohan Singh shakes hands with Nancy Pelosi, Speaker of the US House of Representatives, at Capitol Hill in Washington on Monday. PTI photo “This is a show of respect for the value that we’ve put on that relationship,” Obama’s press secretary, Robert Gibbs, said. The US-India summit will focus heavily on efforts to enhance economic links that have blossomed since India’s market reforms in the early 1990s. Two-way trade grew to nearly $50 billion last year from just $5 billion in 1990, turning the United States into India’s largest trading partner. The two leaders are also expected to try to narrow their differences over climate change and seek to speed up completion of a 2005 civilian nuclear deal that has yet to be implemented. While Washington and New Delhi have moved beyond the chilly relations of the Cold War era, sore points remain between the two giant democracies. Indian suspicions centre on US ally Pakistan -- which many in India blame in part for Islamist violence such as the 2008 attack on Mumbai -- and Obama’s increased focus on the relationship with China, another old India rival. But a senior US official insisted “any notion in India of us tilting in one direction or another is a misperception.” Tensions As Obama decides on the deployment of thousands of additional troops to an increasingly unpopular war in Afghanistan, Washington wants to keep tensions low between nuclear-armed India and Pakistan, which have fought three wars since Independence in 1947. The US hope is that the Pakistani army can devote more resources to fighting Islamic militants who threaten the stability of Pakistan as well as of neighbouring Afghanistan. “The more India and Pakistan lessen tensions, the easier it is for each to do what has to be done,” the administration official said as Obama prepared to announce a new Afghanistan strategy as early as next week. While the official said Obama and Singh would agree to boost cooperation on counterterrorism, India is likely to press the United States for a tougher line on Pakistan, which it accuses of sheltering militants like the ones that hit Mumbai. Reflecting continuing mistrust, Singh said in a CNN interview coinciding with his visit that Pakistan’s goals in Afghanistan were not necessarily those of the United States. Singh is also likely to bring up China, a rising Asian giant that has a long-running border dispute with India. Obama’s visit to China last week drew heavy criticism at home that he has been too conciliatory toward Beijing, the largest holder of US government debt. Washington, however, regards a strong India as a useful counterweight to an increasingly assertive China in the balance of power in Asia. While it remained unclear what if anything might be announced on Tuesday regarding a still-unfinished US-India nuclear accord, several modest energy deals will be signed. Those will include what will be billed as “Green Partnership,” a set of agreements on clean energy and climate change technology plus a $300 million investment fund. Expectations were low, however, for bridging the US-India divide before next month’s climate summit in Copenhagen. Source: Home - Livemint.com | 23 Nov 2009 | 11:16 pm Anil Ambani marks presence in Supreme CourtIndustrialist Anil Ambani Tuesday marked a surprise presence in the Supreme Court where a dispute is being heard over supply of gas to his group company Reliance Natural Resources Ltd (RNRL) from Reliance Industries Ltd (RIL), led by his brother Mukesh Ambani.Source: IndiaeNews.com: Business News | 23 Nov 2009 | 11:04 pm Sensex starts weak, down 0.23 percent in morning tradeA key Indian equities index gave up its gains Tuesday morning after opening in the green and was ruling on a flat note in early trade -- about 0.23 percent down from its previous close.Source: IndiaeNews.com: Business News | 23 Nov 2009 | 11:02 pm Over 30,000 private buses off Kerala roadsOperators of more than 30,000 private buses in Kerala struck work Tuesday, demanding an increase in the minimum fare charged from commuters.Source: IndiaeNews.com: Business News | 23 Nov 2009 | 11:00 pm Loose rate policies suit Asia, for now: ADB chiefNew York: Asia’s speedy economic recovery relative to the rest of the world is not yet strong enough to withstand tighter monetary policy, Asian Development Bank president Haruhiko Kuroda said on Monday. “You see, at this stage the economic recovery, even if not fragile, (is) not so solid. So monetary policy will continue to be expansionary for some time,” Kuroda told Reuters in an interview before a speech at Columbia University. “That might encourage some asset markets to overreact, so to speak. But at this stage, it is not advisable for monetary authorities to tighten monetary policies,” he said. The ADB expects developing Asian economies on average to grow 3.9% this year and 6.4% next year. The so-called Group of Three or G3 -- Japan, the United States and the euro zone -- are projected by the bank to contract 3.7% this year and grow 1.1% in 2010. Kuroda said inflationary pressures remain low and in fact are not rising in many countries, allowing them to keep interest rates low. But when they do start to take away the monetary and or fiscal stimulus, there is no compelling reason for Asia do so all at once. “It all depends on country circumstances... No need for emerging economies to exit in a synchronized manner, or fiscal and monetary policy exits at the same time.” Kuroda said. Who tightens first? Kuroda pointed to South Korea’s measures to reign in real estate prices as careful management that has allowed them to hold off on raising interest rates. South Korea’s top state-run research agency, the Korea Development Institute (KDI), said the government should phase out emergency policy measures after predicting Asia’s fourth-largest economy would grow 5.5% next year. For India, Kuroda noted that while the country managed the crisis and its own fiscal situation relatively well, the nation’s high deficit will probably result in it being among the first to start removing stimulus measures. “If you look at the macro figures, then India’s fiscal situation is not so good. India’s fiscal deficit in relation to GDP is quite high. I think once the economic recovery is solidified, probably the government would exit,” he said. India’s fiscal deficit is forecast to rise to 6.8% of GDP in the year through March 2010, a 16-year high, compared with 6.2% in the previous year. This is a result of fiscal stimulus measures as well as the economic downturn, which cut government revenues. Separately, Kuroda reiterated that emerging economies may not benefit from having free floating currencies. “Generally, I think for emerging economies, free-float won’t provide the best basis for their economic engagement with the global market... That does not mean that all emerging countries need or should adopt heavily managed float systems,” Kuroda said. “Many emerging economy currency markets are thin, shallow, and subject to large fluctuations if left completely free. So some sort of management is necessary and appropriate.” Source: Home - Livemint.com | 23 Nov 2009 | 10:40 pm Markets edge lower; Reliance, ICICI downMumbai: Indian shares were down 0.2% on Tuesday as traders took profits in stocks such as ICICI Bank and Reliance Industries after the market had rallied more than 8% this month. “Some consolidation is required now,” said Ajay Parmar, head of institutional equities at Emkay Global. “Valuations are looking expensive, but at the same time the inflow of local money as well as international money is very strong,” he said. By 11:35am, the 30-share BSE index was trading down 0.22% at 17162.08, with two-thirds of its components declining. The 50-share NSE index was down 0.1% at 5095.60. The benchmark has jumped 78% in 2009, boosted by foreign portfolio inflows of more than $15 billion. In the broader market, gainers outpaced losers in a ratio of 1.5:1 on volume of 93 million shares. Reliance slipped 0.6% to Rs2,182.80, after the energy giant rose 3.3% on Monday following its offer to buy a controlling interest in US-based bankrupt petrochemicals company LyondellBasell. Private-sector bank ICICI was down 1.1% at Rs906.45 after it had risen 3.5% over two sessions. Hindalco Industries shed nearly a% to Rs132.50 after sources said the aluminium maker raised $600 million through sale of shares. It had opened a share sale on Monday at Rs130.90 each. Leading utility vehicle maker Mahindra & Mahindra climbed 2.7% to Rs1,070, after the head of its defence systems unit said it would bid for domestic defence projects worth $3.5 billion over the next seven years. Source: Home - Livemint.com | 23 Nov 2009 | 10:39 pm Anil Ambani present in SC for gas row hearing"My presence in the Hon'ble Supreme Court today reflects my deepest regard for our judiciary," Anil said in a brief statement to the media.Source: India Business News | Business News - Times of India | 23 Nov 2009 | 10:36 pm JAL slides to record low on bankruptcy fearsTokyo: Shares of Japan Airlines Corp fell as much as 9.5% to a record low on investor worries the struggling airline could face bankruptcy if it cannot secure an agreement from its pensioners for benefit cuts. JAL, Asia’s largest airline by revenue, asked retirees and employees on Monday to accept an average 40% cut to their pension payouts and warned a failure to agree on cuts could push it to a court-led restructuring. The stock price slide also follows news that Mitsui & Co had sold its entire stake of 11.73 million shares in JAL during the six months to 30 September. A spokesman for the trading house did not say why it unloaded its shares, less than half of one% of the company. JAL shares were down 7.4% at 88 yen after falling as low as 86 yen, their lowest since a relisting in 2002. The stock has lost more than half its value this year and is down 14% since the close on 17 November after Transport Minister Seiji Maehara rattled investors by saying bankruptcy was still a possibility. “Maehara has said that bankruptcy is not entirely ruled out, and many retirees appear to disagree with the pension cuts,” said Takashi Ushio, head of investment strategy division, Marusan Securities. No one at JAL was immediately available for comment. Source: World Business - Livemint.com | 23 Nov 2009 | 10:30 pm JAL slides to record low on bankruptcy fearsTokyo: Shares of Japan Airlines Corp fell as much as 9.5% to a record low on investor worries the struggling airline could face bankruptcy if it cannot secure an agreement from its pensioners for benefit cuts. JAL, Asia’s largest airline by revenue, asked retirees and employees on Monday to accept an average 40% cut to their pension payouts and warned a failure to agree on cuts could push it to a court-led restructuring. The stock price slide also follows news that Mitsui & Co had sold its entire stake of 11.73 million shares in JAL during the six months to 30 September. A spokesman for the trading house did not say why it unloaded its shares, less than half of one% of the company. JAL shares were down 7.4% at 88 yen after falling as low as 86 yen, their lowest since a relisting in 2002. The stock has lost more than half its value this year and is down 14% since the close on 17 November after Transport Minister Seiji Maehara rattled investors by saying bankruptcy was still a possibility. “Maehara has said that bankruptcy is not entirely ruled out, and many retirees appear to disagree with the pension cuts,” said Takashi Ushio, head of investment strategy division, Marusan Securities. No one at JAL was immediately available for comment. Source: LatestNews-Home - Livemint.com | 23 Nov 2009 | 10:30 pm Sensex down 68 points, Nifty falls below 5,100 pointsThe Sensex today lost over 68 points in opening trade as funds and retail investors preferred to book profits amid weak Asian markets.Source: India Business News | Business News - Times of India | 23 Nov 2009 | 10:07 pm Rupee drops on weak Asian cuesMumbai: The partially convertible Indian rupee weakened on Tuesday as lower Asian shares and a stronger dollar overseas soured sentiment. At 9:25am, the rupee was at Rs46.63/64 per dollar, 0.4% below its Monday’s close of Rs46.465/475. Dealers said they would wait for the local sharemarket open for further direction. Some month-end dollar demand was also seen in the market, they said. Oil is India’s biggest import and refiners are the largest buyers of dollars in the local currency market. Dollar demand from refiners and importers tends to peak at the end of each month, when they make payments. “We continue to watch the rupee within 46-47 in the short term. This range will hold good till EUR/USD trades within 1.4750-1.5050 while the stock market trades in consolidation mode within 16,500-17,500,” J. Moses Harding, head of global markets at IndusInd Bank, wrote in a daily note. “The strategy for importers would be to buy 12-month dollars on overshoot to 47.00-47.25 while exporters to sell 12-month receivables at 48.25-48.40,” he said. The dollar trimmed losses on Tuesday as Tokyo stocks failed to follow up a stronger day on Wall Street, prompting some to buy the dollar back, and as some investors closed dollar short-positions before the Thanksgiving holiday. The index of the dollar against six majors was up 0.2%. Most Asian units were weaker compared to the dollar. At 8:25am, the MSCI index of Asian stocks ex-Japan was down 0.5% while the Nifty India stock futures traded in Singapore were marginally lower. Indian shares are expected to open flat to lower tracking weak Asian markets, but the losses are likely to be limited as cash-rich foreign funds look for investment. Foreign buying of more than $15 billion worth of local shares has helped lift the rupee off a record low of 52.2 hit in early March and continues to be a key factor driving the rupee. One-month offshore non-deliverable forward contracts were quoted at 46.64, little changed from the onshore spot rate. Source: Home - Livemint.com | 23 Nov 2009 | 9:12 pm Wall St rises as home sales feed optimismNew York: US stocks snapped a three-day losing streak on Monday as stronger-than-expected home sales data fueled optimism while a weaker dollar boosted commodity-linked stocks. Sales of previously owned US homes rose to their highest level in more than 2-1/2 years last month. That helped to ease concerns about the sector generated last week when another report showed housing starts fell sharply in October. Monday’s data went some distance to reassure investors who have pared positions as they fret about the economy. Stocks rallied broadly, with all 10 S&P sectors showing strong gains. The Dow industrials reached a new 13-month high but volume was light, which some investors read as a lack of conviction. “We had one bad (housing) start number and people were so willing to talk about a double-dip (recession),” said Jim Paulsen, chief investment officer at Wells Capital Management. “The great bulk of the evidence says there’s definitely been a recovery going on in housing, and today certainly adds to that.” The Dow Jones industrial average gained 132.79 points, or 1.29%, to end at 10,450.95. The Standard & Poor’s 500 Index rose 14.86 points, or 1.36%, to 1,106.24. The Nasdaq Composite Index added 29.97 points, or 1.40%, to close at 2,176.01. US stocks have moved erratically, often in low volume, in recent weeks. “If you’re bearish, there’s a piece of data every couple of weeks that you can lash onto, and if you’re optimistic, you’ll find something to be encouraged about,” said Robert Stimpson, portfolio manager at Oak Associates in Akron, Ohio Among home builders, D.R. Horton rose 2.8% to $10.66 and MDC Holdings Inc gained 1.1% to $30.92 after the National Association of Realtors said existing home sales jumped 10.1% in October. The US dollar fell 0.7% against major currencies after St. Louis Federal Reserve President James Bullard said on Sunday that the Fed should extend its mortgage-related assets purchase program. The comments fueled expectations that interest rates would remain low for an extended period. The slide in the dollar helped lift commodity stocks as gold hit a record $1,170.55 an ounce and copper rose to levels not seen for 14 months, helped also by expectations of recovery. Newmont Mining Corp rose 2.1% to $53.34. The Dow Jones US industrial metals and mining index added 0.8%. A weaker dollar increases dollar-denominated commodity prices as local manufacturers demand more dollars for their products, and it helps boost US export earnings. News that US President Barack Obama’s healthcare reform plan cleared an important Senate vote over the weekend helped push The Morgan Stanley Healthcare Payor index up 3.6%. The AMEX Pharmaceutical index rose 1.2%. On the downside, Ciena Corp shed 8.9% to $12 after it agreed to buy the optical networking and ethernet equipment businesses of bankrupt Nortel Networks On the New York Stock Exchange, volume was anemic, with only about 980 million shares changing hands, well below last year’s estimated daily average of 1.49 billion. On the Nasdaq, volume was light, with about 1.86 billion shares traded, below last year’s daily average of 2.28 billion. Advancing stocks outnumbered decliners on the NYSE by a ratio of more than 3 to 1. On the Nasdaq, more than two stocks rose for every one that fell. Source: LatestNews-Home - Livemint.com | 23 Nov 2009 | 8:58 pm Rupee weakens in line with lower Asian unitsThe rupee weakened on Tuesday as broadly weaker Asian sharemarkets and currencies weighed on sentiment, while the dollar's gains against major units also hurt.Source: India Business News | Business News - Times of India | 23 Nov 2009 | 8:56 pm Mahindra & Mahindra arm to bid for $3.5bn defence projectsThe defence systems unit of India's top vehicle maker Mahindra & Mahindra will bid for domestic defence projects worth $3.5 billion over the next seven years, its chief executive said on Monday.Source: India Business News | Business News - Times of India | 23 Nov 2009 | 8:24 pm CEO of Infosys backoffice service unit quitsBANGALORE (Reuters) - The chief executive of Infosys Technologies' business process outsourcing arm, which employs about 16,000 staff, has quit.Source: Reuters: Money News | 23 Nov 2009 | 8:07 pm Analysts cautious on RIL-Lyondellbasell dealSee it more as an opportunistic, valuation-led than a strategyic one, says LB should be valued $12 billion or less.Source: Daily News & Analysis: Money News | 23 Nov 2009 | 7:53 pm Gold set to glitter over Rs 18,000 soonGrowing worries about inflation, weakness of the US dollar and increasing demand during the current wedding season have combined to take gold prices to record levels almost every day.Source: India Business News | Business News - Times of India | 23 Nov 2009 | 5:35 pm Sebi accuses RIL of rigging RPL stock priceSebi has issued a notice to Reliance Industries charging it with rigging share prices of its subsidiary Reliance Petroleum to make a profit of Rs 513 crore in November 2007.Source: India Business News | Business News - Times of India | 23 Nov 2009 | 4:42 pm How Asians think, feel & choose brands?When the entire world was caught in the downturn spiral, some Asians economies, including India and China, were still churning out healthy growth numbers.Source: Daily News & Analysis: Money News | 23 Nov 2009 | 4:05 pm Helping SMEs adopt ICT to compete & growThe micro, small and medium enterprises (MSME) landscape has reshaped significantly in the last few years, thanks to increasing competition, technology development and cost pressures, among other factors.Source: Daily News & Analysis: Money News | 23 Nov 2009 | 3:57 pm Nagarjuna Cons may raise funds for Dubai planInfrastructure major Nagarjuna Construction Company (NCC) is likely to raise funds from banks or institutions to complete its property development project in Dubai.Source: Daily News & Analysis: Money News | 23 Nov 2009 | 3:55 pm Hero Group talks with Proton called off?A Hero Group spokesperson did not return calls seeking to confirm the group's position vis-a-vis a stake-buying deal with Proton.Source: Daily News & Analysis: Money News | 23 Nov 2009 | 3:28 pm JSW Energy, J-Power of Japan talking allianceJSW Energy, the power company from the JSW Group, is in talks with J-Power, Japan's largest coal-based thermal power producer, to build power plants in India.Source: Daily News & Analysis: Money News | 23 Nov 2009 | 3:28 pm NTPC moves power min for early supply of gas from RIL'This will ensure availability as well as supply of gas to NTPC,' chairman and managing director R S Sharma wrote in a letter to power secretary Harishankar Brahma.Source: Daily News & Analysis: Money News | 23 Nov 2009 | 3:26 pm ArcelorMittal plans plant in Ktaka for Rs 30k crWhile South Korea's biggest steelmaker Posco has announced it would set up a Rs 60,000-crore steel plant in Karnataka, the world's largest steel company ArcelorMittal has approached the state government about setting up a plant worth Rs 30,000 crore.Source: India Business News | Business News - Times of India | 23 Nov 2009 | 1:10 pm Power items from China face dutyThe government is considering imposing safeguards duty on import of power generation equipment from China to protect domestic manufacturers such as state-run Bhel, heavy industries minister Vilasrao Deshmukh said on Monday.Source: India Business News | Business News - Times of India | 23 Nov 2009 | 1:05 pm Tokio may pay a premium for 26% in life JV with Edelweiss - Economic Times
Source: Business - Google News | 23 Nov 2009 | 1:00 pm Delhi high court to start arbitration centre on 25 NovNew Delhi: The Delhi high court will set up an arbitration council on 25 November along the lines of the Singapore International Arbitration Centre to provide a more “cost-effective” and “efficient” solution for companies, which usually have to go overseas to settle disputes. The centre will work under the aegis of the Delhi high court and operate from within its premises, according to a press release. The primary objective of the initiative, spearheaded by the chief justice of the Delhi high court A.P. Shah, is to bring more transparency and reliability to arbitration and quicken the process by institutionalizing it, the press note added.  Positive signal: The Delhi high court. The council will work under the aegis of the high court and operate from its premises. Arvind Yadav / Hindustan Times “It’s a very positive move on the part of the judiciary and has dispelled the notion that the judiciary in India does not support arbitration,” said Sumeet Kachwaha, partner at law firm Kachwaha and Partners. It will mean the end of the ad hoc nature that prevails, Kachwaha said. Senior counsel Dushyant Dave, member of the International Council of Commercial Arbitration (ICCA) and part of the committee set up by justice Shah on the arbitration centre, feels vindicated. “It will send a positive signal to foreign investors who were wary of making India as the arbitration centre earlier. Since the arbitration centre would work under the Delhi high court, proceedings would exude more independence and credibility,” Dave said. Further, it will enable the centre to have a pool of arbitration experts not only from the legal community but also engineers, architects, chartered accountants and others. “Today, when we have 35 million cases pending in the courts, alternate dispute resolution, or arbitration, would ease pressure on the courts,” Dave said. Source: LatestNews-Home - Livemint.com | 23 Nov 2009 | 12:24 pm Oprah’s exit opens wide range of possibilitiesThere is no single replacement for Oprah Winfrey. That’s not necessarily a statement about the dominance of her 24-year-old television institution, The Oprah Winfrey Show. Rather, it is the reality of television syndication. When Winfrey leaves the broadcast airwaves in two years, a stable of talk shows will vie to fill her former time slot on more than 200 stations across the US. Individual stations are bound to place differing bets, drastically reshaping the daytime TV landscape. As with NBC and Jay Leno earlier this year, the television chess board is being rearranged by a talk show host. Even before Winfrey announced last Friday that 2011 would be the right time to step off her broadcast stage, TV executives were jostling on behalf of Ellen DeGeneres, Dr Mehmet Oz, Dr Phil McGraw and other hosts who aim to benefit from the syndication shake-up. ©2009/The New York Times Source: LatestNews-Home - Livemint.com | 23 Nov 2009 | 11:47 am Shared supercomputing and everyday researchPortland, Oregon: For decades, the world’s supercomputers have been the tightly guarded property of universities and governments. But what would happen if regular folks could get their hands on one? The price of supercomputers is dropping quickly, in part because they are often built with the same off-the-shelf parts found in PCs, as a supercomputing conference here last week made clear. Just about any organization with a few million dollars can now buy or assemble a top-flight machine.  Affordable technology: The Jaguar supercomputer at the Oak Ridge National Laboratory in Tennessee, the world’s fastest, links thousands of mainstream chips from AMD. AP These advances are pulling down the high walls around computing-intensive research. A result could be a democratization that gives ordinary people with a novel idea a chance to explore their curiosity with heavy computing firepower— and maybe find something unexpected. The trend has spurred some of the world’s top computing experts and scientists to work towards freeing valuable stores of information. The goal is to fill big computers with scientific data and then let anyone in the world with a personal computer, including amateur scientists, tap into these systems. “It’s a good call to arms,” said Mark Barrenechea, the chief executive of Silicon Graphics, which sells computing systems to labs and businesses. “The technology is there. The need is there. This could exponentially increase the amount of science done across the globe.” The notion of top research centres sharing information is hardly new. Some of the earliest incarnations of what we now know as the World Wide Web came to life so that physicists and other scientists could tap into large data stores from afar. In addition, universities and government labs were early advocates of what became popularized as grid computing, where shared networks were created to shuttle data about. The current thinking, however, is that the labs can accomplish far more than was previously practical by piggybacking on some of the trends sweeping the technology industry. And, this time around, research bodies big and small, along with brainy individuals, can participate in the sharing agenda. For inspiration, scientists are looking at cloud computing services such as Google’s online office software, photo-sharing sites and Amazon.com’s data centre rental programme. They are trying to bring that type of Web-based technology into their labs and make it handle enormous volumes of data. “You’ve seen these desktop applications move into the cloud,” said Pete Beckman, the director of the Argonne Leadership Computing Facility in Illinois. “Now science is on that same track. This helps democratize science and good ideas.” With $32 million from the energy department, Argonne has set to work on Magellan, a project to explore the creation of a cloud-computing infrastructure that scientists around the globe can use. Beckman argued that such a system would reduce the need for smaller universities and labs to spend money on their own computing infrastructure. Another benefit is that researchers would not need to spend days downloading huge data sets so that they could perform analysis on their own computers. Instead, they could send requests to Magellan and just receive the answers. Even curious individuals on the fringe of academia may have a chance to delve into things like climate change and protein analysis. “Some mathematician in Russia can say, ‘I have an idea’,” Beckman said. “The barrier to entry is so low for him to try out that idea. So, this really broadens the number of discoverers and, hopefully, discoveries.” The computing industry has made such a discussion possible. Historically, the world’s top supercomputers relied on expensive, proprietary components. Government laboratories paid vast sums of money to use these systems for classified projects. But over the last 10 years, the vital innards of supercomputers have become more mainstream, and a wide variety of organizations have bought them. At the conference, undergraduate students competed in a contest to build affordable mini-supercomputers on the fly. And a supercomputer called Jaguar at the Oak Ridge National Laboratory in Tennessee officially became the world’s fastest machine. It links thousands of mainstream chips from Advanced Micro Devices (AMD). Seven of the world’s top 10 supercomputers use standard chips from AMD and Intel, as do about 90% of the 500 fastest machines. “I think this says that supercomputing technology is affordable,” said Margaret Lewis, an AMD director. “We are kind of getting away from this ivory tower.” While Magellan and similar projects are encouraging signs, researchers have warned that much work lies ahead to free what they consider valuable information for broader analysis. At the Georgia Institute of Technology, for example, researchers have developed software that can evaluate scans of the brain and heart, and identify anomalies that might indicate problems. To advance such techniques, the researchers need to train their software by testing it on thousands of body scans. But it is hard to find a repository of such scans that a hospital or a government organization such as the National Institutes of Health is willing to share, even if personal information can be stripped away, said George Biros, a professor at the Georgia Institute of Technology. “Medical schools don’t make this information available,” he said. Bill Howe, a senior scientist at the eScience Institute at the University of Washington, has urged research organizations to reveal their information. “All the data that we collect in science should be accessible, and that’s just not the way it works today,” he said. Howe said high school students and so-called citizen scientists could make new discoveries if given the chance. “Let’s see what happens when classrooms of students explore this information,” he said. ©2009/THE NEW YORK TIMES feedback@livemint.com Source: Tech News - Livemint.com | 23 Nov 2009 | 11:46 am Hedge funds bet on my $76,000 with greed That’s roughly what Japan owes for each of its 126 million inhabitants. This amount has some hedge-fund investors piling on the Japan trades. The bad news for Asia’s biggest economy is that many such bets are against it. The focus is on the risk of a yen plunge because of a different $76,000 figure: the cost of insuring trades on Japan’s massive debt. Does all this mean the great yen crash analysts have predicted for years is imminent? Hardly. The cost of hedging against losses on $10 million of Japanese bonds with credit default swaps soared this month to at least $76,160 a year from $37,000 in August. The increase corresponds with the policies of a new government considering record spending and borrowing amid falling tax revenue. The jump in debt-protection costs has a certain logic as Japan’s debt heads toward 200% of gross domestic product (GDP). That’s by far the largest in the industrialized world. Many traders say Japan is more likely to renege on debt than the US is. Last month, former International Monetary Fund chief economist Simon Johnson told the US Congress that debt is out of control and said there is a real risk that Japan could end up in a major default. Even so, a near-term yen crash is a reach. Reports in the local media that finance minister Hirohisa Fujii’s tolerance for a stronger currency may be running out are fuelling speculation that Japan will intervene in markets. Here, though, it’s worth asking why Japan hasn’t already done that. Japan spent the equivalent of the annual GDP of Greece in the 15 months through March 2004 to cap the yen. It was like mobsters whacking a rival now and again. For years after that, it didn’t intervene to weaken the currency. Finance ministry officials only had to hint they were unhappy with the yen’s level, and markets would fall back in line. When the US subprime mess snowballed into a global meltdown, everything changed. As the dollar fell, the yen had nowhere to go but up. And up it went. The yen has risen around 25% against the dollar since January 2008, and Japan had to accept it. It’s all about the dollar, not the yen. What can Japan do about it? A key reason members of the G-7 and G-20 aren’t coming to Japan’s rescue is agreement that the dollar needs to weaken. It’s about facilitating a badly needed rebalancing of global growth. The reserve currency is printed by a US government that depends on imported capital to finance its excesses. The world relies on the excesses of the US consumer. That unhealthy codependence must end and a weaker dollar is crucial. Monitoring the global economy these days is like trying to work out an M.C. Escher drawing. Little makes sense in a world where the US is nationalizing key industries, China’s economy is a role model and gold costs at least $1,100 an ounce. The yen is among those absurdities. The combination of near-zero interest rates, unprecedented debt levels, a sinking savings rate and deflation should be devastating for any currency. And while a government default is extremely unlikely, credit downgrades can’t be ruled out. The spectre of lower ratings should be negative for the yen. Japan’s aging population and stagnant birthrate has traders questioning whether it can repay that $76,000 per person worth of debt. That figure will only grow in the years ahead as the workforce shrinks. The surreal nature of government policies only adds to the disorientation. China’s undervalued currency, which is exacerbating global imbalances, comes to mind. Debt managers in the US seem to be competing with their Japanese peers to test the tolerance of credit rating firms in 2010. This is where we are, though. Were the US growing soundly and getting its fiscal act together, a weaker yen would be a safe bet. Japan could intervene in markets, yet it might fail. It would embolden speculators to drive the yen higher. That possibility explains why Japan has been holding its fire. Japan certainly could use some help fighting deflation. The domestic demand deflator, a measure of price levels that excludes the cost of imports, fell 2.6% in the third quarter from a year earlier. It was the biggest drop since 1958 and eclipsed a 4.8% jump in growth. You can bet Prime Minister Yukio Hatoyama and Fujii are wondering how to weaken the yen. Hedge-fund managers, too. It will be easier said than done in today’s world. Respond to this column at feedback@livemint.com Source: LatestNews-Home - Livemint.com | 23 Nov 2009 | 11:46 am Shared supercomputing and everyday researchPortland, Oregon: For decades, the world’s supercomputers have been the tightly guarded property of universities and governments. But what would happen if regular folks could get their hands on one? The price of supercomputers is dropping quickly, in part because they are often built with the same off-the-shelf parts found in PCs, as a supercomputing conference here last week made clear. Just about any organization with a few million dollars can now buy or assemble a top-flight machine. Affordable technology: The Jaguar supercomputer at the Oak Ridge National Laboratory in Tennessee, the world’s fastest, links thousands of mainstream chips from AMD. AP These advances are pulling down the high walls around computing-intensive research. A result could be a democratization that gives ordinary people with a novel idea a chance to explore their curiosity with heavy computing firepower— and maybe find something unexpected. The trend has spurred some of the world’s top computing experts and scientists to work towards freeing valuable stores of information. The goal is to fill big computers with scientific data and then let anyone in the world with a personal computer, including amateur scientists, tap into these systems. “It’s a good call to arms,” said Mark Barrenechea, the chief executive of Silicon Graphics, which sells computing systems to labs and businesses. “The technology is there. The need is there. This could exponentially increase the amount of science done across the globe.” The notion of top research centres sharing information is hardly new. Some of the earliest incarnations of what we now know as the World Wide Web came to life so that physicists and other scientists could tap into large data stores from afar. In addition, universities and government labs were early advocates of what became popularized as grid computing, where shared networks were created to shuttle data about. The current thinking, however, is that the labs can accomplish far more than was previously practical by piggybacking on some of the trends sweeping the technology industry. And, this time around, research bodies big and small, along with brainy individuals, can participate in the sharing agenda. For inspiration, scientists are looking at cloud computing services such as Google’s online office software, photo-sharing sites and Amazon.com’s data centre rental programme. They are trying to bring that type of Web-based technology into their labs and make it handle enormous volumes of data. “You’ve seen these desktop applications move into the cloud,” said Pete Beckman, the director of the Argonne Leadership Computing Facility in Illinois. “Now science is on that same track. This helps democratize science and good ideas.” With $32 million from the energy department, Argonne has set to work on Magellan, a project to explore the creation of a cloud-computing infrastructure that scientists around the globe can use. Beckman argued that such a system would reduce the need for smaller universities and labs to spend money on their own computing infrastructure. Another benefit is that researchers would not need to spend days downloading huge data sets so that they could perform analysis on their own computers. Instead, they could send requests to Magellan and just receive the answers. Even curious individuals on the fringe of academia may have a chance to delve into things like climate change and protein analysis. “Some mathematician in Russia can say, ‘I have an idea’,” Beckman said. “The barrier to entry is so low for him to try out that idea. So, this really broadens the number of discoverers and, hopefully, discoveries.” The computing industry has made such a discussion possible. Historically, the world’s top supercomputers relied on expensive, proprietary components. Government laboratories paid vast sums of money to use these systems for classified projects. But over the last 10 years, the vital innards of supercomputers have become more mainstream, and a wide variety of organizations have bought them. At the conference, undergraduate students competed in a contest to build affordable mini-supercomputers on the fly. And a supercomputer called Jaguar at the Oak Ridge National Laboratory in Tennessee officially became the world’s fastest machine. It links thousands of mainstream chips from Advanced Micro Devices (AMD). Seven of the world’s top 10 supercomputers use standard chips from AMD and Intel, as do about 90% of the 500 fastest machines. “I think this says that supercomputing technology is affordable,” said Margaret Lewis, an AMD director. “We are kind of getting away from this ivory tower.” While Magellan and similar projects are encouraging signs, researchers have warned that much work lies ahead to free what they consider valuable information for broader analysis. At the Georgia Institute of Technology, for example, researchers have developed software that can evaluate scans of the brain and heart, and identify anomalies that might indicate problems. To advance such techniques, the researchers need to train their software by testing it on thousands of body scans. But it is hard to find a repository of such scans that a hospital or a government organization such as the National Institutes of Health is willing to share, even if personal information can be stripped away, said George Biros, a professor at the Georgia Institute of Technology. “Medical schools don’t make this information available,” he said. Bill Howe, a senior scientist at the eScience Institute at the University of Washington, has urged research organizations to reveal their information. “All the data that we collect in science should be accessible, and that’s just not the way it works today,” he said. Howe said high school students and so-called citizen scientists could make new discoveries if given the chance. “Let’s see what happens when classrooms of students explore this information,” he said. ©2009/THE NEW YORK TIMES feedback@livemint.com Source: LatestNews-Home - Livemint.com | 23 Nov 2009 | 11:46 am Rupee gains the most in Asia as expansion seen spurring inflowsMumbai: The rupee gained the most in more than a week on speculation economic growth prospects in the region will encourage overseas investors to increase holdings of the nation’s stocks. Ownership of Indian equities by funds based abroad climbed to a record $15.3 billion (Rs71,145 crore) as of 20 November, data from the Securities and Exchange Board of India (Sebi) showed. The benchmark Bombay Stock Exchange’s sensitive index rose to the highest in a month on Monday. The dollar fell against most major currencies, while the price of gold rose to an all-time high. The tide is swaying away from the dollar because of fundamental reasons and that is helping the rupee, said Jai Prakash Israni, a currency trader in Mumbai at state-owned Andhra Bank. There is no reason why the rupee will not rally in the near term. The rupee gained 0.4% to 46.48 per dollar in Mumbai, according to data compiled by Bloomberg. The rupee may advance to 46.25 this week, Israni said. The local currency has strengthened 3.6% this quarter, the best performance in Asia. Economic reports this week may show rising export orders in Taiwan and faster growth in the Philippines, according to Bloomberg surveys of economists. Gold has advanced 34% this year as the Dollar Index, a gauge of the currency’s value against six major trading partners, fell 7.4%. The most accurate forecasters predict the greenback will extend its drop as the world’s lowest borrowing costs, rising unemployment and a record $4 trillion of government bond sales between 2009 and 2010 weigh on the dollar. Offshore contracts indicate bets the rupee will trade at 46.49 to the dollar in a month, compared with expectations of 46.66 at the end of last week. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Non-deliverable contracts are settled in dollars rather than the local currency. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 23 Nov 2009 | 11:45 am World stock markets rise sharply as gold touches record highLondon: World markets rose sharply Monday amid further hopeful signs about the economic recovery. Commodity stocks led the charge, particularly in London, after gold hit record high amid renewed dollar weakness. European stocks tracked their Asian counterparts higher, with the FTSE 100 index of leading British shares up 88.99 points, or 1.7%, at 5,340.40. Germany’s DAX rose 91.74, or 1.6%, at 5,754.89 and the CAC-40 was 57.24, or 1.5%, higher at 3,786.60.  Extra shine: The falling dollar has made gold more attractive to foreign investors; as a result, commodity stocks are heavily in demand. Toru Hanai / Reuters Sentiment in Europe was buoyed by data indicating that the economic recovery is gathering pace in the 16 countries that use the euro. The monthly composite purchasing managers index—a broad gauge of business activity in the manufacturing and services sector—rose to 53.7 in November from October’s 53. Any reading above 50 indicates expansion and the bigger the difference from 50 the greater the expansion. The figures confirmed that the recession in the eurozone ended in the third quarter, though growth was a muted 0.3%. “November’s rise suggests that the eurozone economy has gained a bit more momentum in Q4, but the recovery remains of the steady, rather than the spectacular, variety,” said Ben May, European economist at Capital Economics. Much of Monday’s activity centred on commodity stocks as the price of gold rose 1.7% to a new record of $1,167.35 (Rs54,281.76) an ounce (1oz is 28.35g). Gold has garnered renewed support as the recent rally in the dollar ran out of steam after US Federal Reserve official James Bullard said the central bank should continue to buy mortgage-backed securities after the March expiration date. Any suggestion that the Fed will maintain its extraordinary monetary policy measures for longer than previously anticipated heaps pressure on the dollar—by late morning London time, the euro was up 0.8% at $1.4971. The falling dollar makes gold more attractive to international investors and as a result, commodity stocks were heavily in demand, particularly on London’s FTSE 100, where a number of resource companies are listed—near the top of the leaderboard were Eurasian Natural Plc, Xstrata Plc and Rio Tinto Plc. Attention later will focus on US existing home sales figures for October. Analysts are hopeful the figures will not disappoint after a mixed series of housing data recently, and are forecast to have risen around 2.5% to an annual rate of 5.7 million units. Kelly Olsen in Seoul, South Korea contributed to this story. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 23 Nov 2009 | 11:45 am JSW Energy IPO to open 7 December, targets Rs2,700 croreMumbai: JSW Energy Ltd, the power generation unit of the JSW group, plans to raise Rs2,700 crore through an initial public offer that will be open 7 December through 9 December, said Sajjan Jindal, vice chairman, JSW Steel Ltd, in Mumbai on Monday. He did not disclose the extent of equity dilution, saying it would be clear once the price band for the offer is announced on 3 December. The issue has been graded by rating agency CARE Ltd as Grade 4, indicating above-average fundamentals. JM Financial Consultants Pvt Ltd, Kotak Mahindra Capital Ltd., ICICI Securities Ltd., IDFC-SSKI Ltd., JP Morgan India Ltd., SBI Capital Markets Ltd., Morgan Stanley India Ltd. and IDBI Capital market Services ltd are the book running lead managers to the issue. Source: LatestNews-Home - Livemint.com | 23 Nov 2009 | 11:44 am Lyondell debt a concernIn an initial thumbs up to Reliance Industries, which placed a non-binding cash bid for a controlling interest in LyondellBasell last week, its shares went up 3.3 per cent on the Bombay Stock Exchange and closed at Rs 2,195 today.Source: Business Standard | Front Page Headlines | 23 Nov 2009 | 11:43 am Mittal plans 6 mt plant in KarnatakaInvestment likely to be Rs 30,000 crore.Source: Business Standard | Front Page Headlines | 23 Nov 2009 | 11:41 am Sebi showcause back to haunt RILAmended notice asks why firm shouldnt be barred from mkts.Source: Business Standard | Front Page Headlines | 23 Nov 2009 | 11:40 am Bhopal Gas Tragedy | A tragic businessBhopal: Jahar Lal doesn’t remember the night of the Bhopal gas tragedy, but he can’t forget it either. He was born on the side of a road, as his mother fled from the poisonous gases that swept through old Bhopal. When she finally reached a hospital with her newborn son, the doctors there christened him Jahar, or poison. The name stuck. He doesn’t like his name much. He has often thought of changing it but, he says, “It’s the name I’m famous by.” It draws 10-15 people every month to his small jhuggi in the mud-spattered lanes of Oriya basti. Click here to view a slideshow of some of the businesses that have sprung up in the aftermath of the gas leak in Bhopal More has been written on the Bhopal gas tragedy than any other disaster in India. In the 25 years that have elapsed, activists and government officials have surveyed the affected areas numerous times; curious tourists have wandered through the bastis in search of survivors’ tales; and journalists from around the world have scoured Bhopal for stories. Also Read our previous stories in this series The intense attention has, in its wake, created a network of attractions and occupations that survive on the memories, sites and effects of the disaster. “There’s a whole chapter on me in Dominique Lapierre’s book,” says Gangaram, a gnarled old man, as we walk through the Oriya basti in search of Jahar Lal. He was also affected by the disaster and now survives on a few part-time jobs.  When we get to him, Jahar Lal is playing cards with a few friends. His clothes are threadbare, his sandals broken and he’s thin as a stick. He might be an attraction, but it hasn’t brought him much money. He works as a construction labourer for the 10-12 days he manages to get work. But, he complains, he gets tired easily, suffers from a chronic cough and can’t put on any weight. The people of the basti are used to visitors, but a gaggle of kids still collects around us. Has the attention he’s got made a difference to his life? “People have been coming to see me for 10 years now, but nothing has happened,” he says. Someday, he hopes, someone will read one of the articles and give him a job. As we leave, Jahar Lal comes up to us and asks if we can spare Rs100 for “some medicines”. A few kilometres away, Sanjay Verma is taking a foreign television crew through Arif Nagar, a shanty sprawl that sits by what used to be the solar evaporation pond of Union Carbide. He is their translator-cum-guide. Sanjay lost seven members of his family in the tragedy, and grew up in an orphanage in Bhopal. He has taught himself fluent English, and now shows visitors the sites associated with Union Carbide. He is pursuing a degree in business economics, but has been guiding people for nearly four years now. On average, he takes 100 visitors around every year. It’s a good source of income for him. His charges are Rs700 per day, but often “people give me much more than that”. His English has also improved significantly in the process. It was initially very difficult for him to return to the sites associated with his personal tragedy, but now he has gotten used to it. “I feel that information on Bhopal needs to be passed on,” he says. Most media crews he takes to the factory, he adds, are horrified that the factory remains the way it was 25 years after the disaster. But not everyone in this small network suffered in the tragedy. For every person that did suffer, there is another for whom this is a quick business opportunity. Mac is a resident of Bhopal who refuses to give me his real name. When we spot him, he is tearing down the dirt road in front of Jaiprakash Nagar with Miguel Legault, a photojournalist, perched precariously on his two-wheeler. He claims to work in the pharmaceutical industry. He’s shown six people, including a Korean tourist, around affected areas such as Annu Nagar and Blue Moon Colony this year. “More often than not,” he says, “I’m the driver, guide and translator. I even get them a bottle of beer when they ask for it.” In return he gets “some kind of gifts”. His motives, he claims, are not monetary. He wants to break the stranglehold that a few non-governmental organizations have on tragedy-related work. “Most of them get a lot of money through donations but promote a few people like Rashida Bee (profiled in Monday’s Mint story),” he says. “But this was a tragedy for everyone in Bhopal, not just a few people.” His endeavour, he says, is to show people the neglected aspects of the tragedy. Mac seems to have forgotten that I’d seen him and Miguel briefly at Rashida Bee’s the previous day. How do people find him? “You come to Bhopal and tell anyone that you want to see the Union Carbide factory, and you’ll find Mac,” he says cryptically. Travel agencies in Bhopal also seem to have caught on to the opportunity. When I called him up, Rakesh Chopra of Radiant Travels Pvt. Ltd, one of the larger travel agencies in the city, said that he could easily arrange a guide for these areas. “We’ve shown many tourists these sights,” he says. A guide would cost Rs1,750 per day. The biggest gains of this “industry”, however, have gone to the hundreds of dubious doctors, jhola chaap doctors as they are known in local parlance, who’ve set up shop along Chhola Road, a stone’s throw away from the factory. Every third establishment on the road is a clinic. They sit cheek by jowl with tea shops, butchers and grocery stores. The garishly lit, matchbox rooms that they work from are crowded with a steady stream of patients. A bewildering number of them have degrees in Ayurveda. Anil Tiwari claims that he is the only qualified doctor among the 85 who practise on this 2km stretch of road. “Doctors here get Ayurveda degrees since they’re easy to get, but all of them prescribe allopathic medicines,” he says. The majority of patients at the clinics seem to have a similar roster of problems— breathlessness, body aches, skin rashes and eye problems. They say that their problems started after the gas tragedy, but a number also blame severe groundwater contamination. “These quacks earn Rs1-2 lakh per month,” says Dr Tiwari, “and they pump patients full of steroids.” P.D. Israni of Israni Dawakhana, was giving a woman an injection when I walked in. He claims to have a bachelor in Ayurvedic medicine and surgery (BAMS) and tells me that he only prescribes medicines according to his qualifications. His charges per patient are Rs10-20. When I ask him about the injection he was giving, he turns defensive. “What can I do if the patient asks?” A hundred metres down the road, outside the Singhai Clinic, which advertises the services of Dr Singhai, BSc, BAMS, Ayur-Ratan, a patient is complaining. He shows me a prescription that consists of a series of codes that only the in-house chemist understands. The medicines he takes out of a small plastic packet are allopathic, but none has a name. A similar story is repeated at every clinic in the area. Patients who are entitled to free treatment at government hospitals don’t go there since the wait can often be long and the paperwork complicated. Some of them have also misplaced their “gas cards” and haven’t been able to get new ones made. They’re left with no alternative but to go to these clinics, they say. K.K. Dubey, director of the Kamala Nehru Hospital, a government hospital for the gas-affected, confirms that such clinics are scattered across the affected wards. “The government has done nothing to control them,” he says. The Bhopal gas tragedy seems to be becoming a small business. And as the 25th anniversary of disaster comes up, the profits are looking good. This is the third part of a series. Tomorrow: The satirical side. akshai.j@livemint.com Source: Home - Livemint.com | 23 Nov 2009 | 11:39 am BCCI finds no takers for team sponsorshipNew Delhi: It’s akin to a match being called off without a ball being bowled. The Board of Control for Cricket in India (BCCI), the richest sporting body in the country, may have overestimated the price companies are willing to pay to get their name on the uniforms of Sachin Tendulkar and Mahendra Singh Dhoni when playing for the country. The board has been forced to indefinitely postpone the meeting of its marketing committee scheduled for 24 November to decide the next sponsor of the national cricket team, after there were no bidders for the rights, estimated at around Rs800 crore. “The meeting for the tender opening for team sponsorship rights for the period January 2010 till December 2013 has been postponed,” said Sauravh Kachroo, administrative officer, media committee, BCCI. Kachroo declined to comment on the reason for this but added that the decision had been taken by the board’s secretary, N. Srinivasan. Srinivasan declined to comment on the meeting, and said: “We still have to work on some details. We will evaluate the bids received on the 25th (of November).” A BCCI member admitted that the poor response from potential sponsors has left the board with little choice but to keep the bidding window open. He did not want to be identified as he’s not authorized to speak to the media. The surprise waning of interest in national team sponsorship comes at a time when data indicates that the Indian Premier League, BCCI’s popular Twenty20 league, has gained at the expense of other forms of the game. IPL, which is played by clubs, received 40% of the estimated Rs1,200 crore advertising revenue devoted to sports this year, according to media buying agency GroupM India Pvt. Ltd. That has put the squeeze on other cricketing events such as the Champion’s League, the Champion’s Trophy and the Twenty20 World Cup, which have all suffered. Their television viewership, too, has declined. With Sahara India Pariwar’s four-year sponsorship contract coming to an end on 31 December, BCCI had issued a tender earlier this month inviting interested firms to submit their bids between 2 November and 24 November. With BCCI expecting Rs3-3.5 crore for each of the approximately 240 matches to be played in the next four years, advertisers expect to have to pay as much as Rs700-800 crore for the rights, compared with the Rs313 crore that Sahara bid in 2005. BCCI had earlier told Mint that it was expecting a minimum bid of Rs400 crore for the next four years, but an executive from Sahara pointed out, speaking on condition of anonymity, that the eventual payout is likely to be much higher. That’s because the contract is signed for a certain number of matches and the sponsor ends up paying more if the team plays more matches. “The number of cricket matches have gone up. We bid Rs313 crore for the rights, but more matches were added and we ended up paying Rs435 crore at the end of four years,” he said. “Even though BCCI is saying there will be 120-170 matches, the cricket calendar is booked for at least 240 matches.” Advertisers are not willing to play ball. “Yesterday (Sunday) was the last day for companies to submit their bids to BCCI, but I don’t think anyone even picked up a bid because of the high sponsorship fees attached,” said a senior executive at a telco who spoke on condition of anonymity. The telco had initially expressed interest in acquiring the rights when BCCI issued the tender, but the asking price attached forced the company to pull out. Mint has learnt that companies such as Bharti Airtel Ltd, Samsung India Electronics Pvt. Ltd, LG Electronics India Pvt. Ltd, Nike India Pvt. Ltd, Coca-Cola India and PepsiCo India Holdings Pvt. Ltd have decided to not bid for the rights. “It’s too expensive and we don’t know if it’s worth Rs800 crore,” said a PepsiCo executive who did not want to be identified. “Everyone is pulling out because it is too expensive,” added a senior executive from Coca-Cola who, too, did not want to be identified. Even Sahara, which has sponsored the team since the beginning of this decade, isn’t willing to pay what BCCI expects. “If the BCCI expects Rs800 crore, we are not in,” said the Sahara executive. priyanka.m@livemint.com Source: Home - Livemint.com | 23 Nov 2009 | 11:30 am Wave of debt payments facing US governmentWashington: The US government is financing its more than $1 trillion (Rs46.5 trillion) annual borrowing with IOUs on terms that seem too good to be true.  Rising costs: Shoppers in a US mall. Americans find themselves in two deep holes: as debt-laden consumers, whose personal wealth sank in the crisis; and as taxpayers, whose govt debt has almost doubled in two years. Karen Bleier / AFP But that happy situation—a result of interest rates dropping to extraordinary lows even as the government has had to borrow more and more—may not last for long. Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed. Even as treasury officials are racing to lock in today's low rates by exchanging short-term borrowings for long-term bonds, the government faces a payment shock similar to those that sent legions of overstretched homeowners into default on their mortgages. With the national debt now topping $12 trillion, the White House estimates that the government’s tab for servicing the debt will top $700 billion a year in 2019, up from $202 billion this year, even if annual budget deficits shrink dramatically. Other forecasters say the figure could be much higher. In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan. The potential for rapidly escalating interest payouts is just one of the wrenching challenges facing the US after decades of living beyond its means. The surge in borrowing over the last year or two is widely judged to have been a necessary response to the financial crisis and the deep recession, and there is still a raging debate over how aggressively to bring down deficits over the next few years. But there is little doubt that the US’ long-term budget crisis is becoming too big to postpone. Americans now have to climb out of two deep holes: as debt-loaded consumers, whose personal wealth sank along with housing and stock prices; and as taxpayers, whose government debt has almost doubled in the last two years alone, just as costs tied to benefits for retiring baby-boomers are set to explode. The competing demands could deepen political battles over the size and role of government, the trade-offs between taxes and spending, the choices between helping older generations versus younger ones, and the bottom-line questions about who should ultimately shoulder the burden. Circumstances have postponed the day of reckoning to some degree, and a strong economic recovery could again ease the pressure, but as the prospect for a rapid escalation in government interest payments suggests, it will be hard to avoid it forever. “The government is on teaser rates,” said Robert Bixby, executive director of the Concord Coalition, a nonpartisan group that advocates lower deficits. “We’re taking out a huge mortgage right now, but we won’t feel the pain until later.” So far, the demand for treasury securities from investors and other governments around the world has remained strong enough to hold down the interest rates the US must offer to sell them. Indeed, investors have been so hungry for the relative security of treasury bills and bonds that the government’s average interest rate on new borrowing last year fell below 1%. For short-term IOUs such as one-month treasury bills, its average rate was only sixteen-hundredths of a per cent. “All of the auction results have been solid,” said Matthew Rutherford, the US treasury’s deputy assistant secretary in charge of finance operations. “Investor demand has been very broad, and it’s been increasing in the last couple of years.” Administration officials and many economists contend it would have been a mistake to prevent the deficit from surging last year. If the government had not tried to rescue the economy with both higher spending and tax cuts, they say, the economic crisis and the budget damage would have been far worse. The problem, many analysts say, is that record government deficits have arrived just as the long-feared explosion begins in spending on benefits under health and social security. The nation’s oldest baby-boomers are now approaching 65, setting off what experts have warned for years will be a fiscal nightmare for the government. “What a good country or a good squirrel should be doing is stashing away nuts for the winter,” said William H. Gross, managing director of the Pimco Group, the giant bond management firm. “The US is not only not saving nuts, it’s eating the ones left over from the last winter.” ©2009/THE NEW YORK TIMES Source: World Business - Livemint.com | 23 Nov 2009 | 10:13 am Edelweiss in life insurance JV with Tokio MarineEdelweiss Capital, a leading diversified financial services company, will be setting up a life insurance company with Japan headquartered Tokio Marine Holdings, Inc. The new company will be called Edelweiss Tokio Life Insurance. They have earmarked Rs 550 crore for Phase-I of the venture, reports HT Correspondent.Source: HindustanTimes.com - Top Business News Headlines | 23 Nov 2009 | 10:01 am JSW Energy plans Rs 2 700 crore IPOReturning to the primary market after a gap of almost 15 years, Sajjan Jindal-led JSW Group is launching an IPO for its power company JSW Energy Limited to raise Rs 2,700 crore through 100 per cent book building. The issue would open on December 7 and close on December 9, reports HT Correspondent.Source: HindustanTimes.com - Top Business News Headlines | 23 Nov 2009 | 9:59 am Tata Housing to foray into new marketsTata Housing, after receiving phenomenal response for its low-cost housing project at Boisar, 120 km away from Mumbai, now plans to launch similar projects in tier I and tier II cities, its chief executive said, reports Lalatendu Mishra.Source: HindustanTimes.com - Top Business News Headlines | 23 Nov 2009 | 9:47 am FM to look at issues specific to regionsFinance Minister Pranab Mukherjee is keen on focusing on local issues such as region-wise credit needs, disbursements and status of banking infrastructure at the forthcoming zonal meetings with public sector bank heads, reports Mahua Venkatesh.Source: HindustanTimes.com - Top Business News Headlines | 23 Nov 2009 | 9:42 am RIL denies SEBI charge in REL petro stake saleMarket regulator SEBI is understood to have asked RIL as to why it should not be barred from accessing the market in relation to violation of insider trading norms —a charge that has been denied by the company.Source: HindustanTimes.com - Top Business News Headlines | 23 Nov 2009 | 9:38 am New Van to replace Maruti VersaThe country's largest car maker, Maruti Suzuki India (MSI), on Monday said it will launch a new van within this fiscal to replace its MPV Versa, which it has stopped making.Source: HindustanTimes.com - Top Business News Headlines | 23 Nov 2009 | 9:35 am China wants special visa policy for its workers in IndiaChina has asked for a 'special policy' for its labourers to help businesses of the two sides finish ongoing projects in India, a top Chinese official said here Monday.Source: IndiaeNews.com: Business News | 23 Nov 2009 | 9:05 am Introduce courses on cyber security in schools: Ankit FadiaIndian authorities should introduce courses on cyber security in schools and colleges besides setting up police cyber cells manned by tech-savvy officers in all cities to prevent online attacks, cyber security expert Ankit Fadia said here Monday.Source: IndiaeNews.com: Business News | 23 Nov 2009 | 9:04 am India to promote safety of women and child visitorsWith an eye to the Commonwealth Games 2010, India will soon launch an initiative to create awareness about providing a safe and friendly environment to foreigners, especially women and children.Source: IndiaeNews.com: Business News | 23 Nov 2009 | 9:02 am South Asian Petrochem drops project with Japanese firmCity-based South Asian Petrochem Monday said it has dropped a project to build a polycarbonate plant in association with Asahi Kasei Chemicals Corp of Japan due to the global slowdown.Source: IndiaeNews.com: Business News | 23 Nov 2009 | 9:01 am Deora, Pawar to meet Tuesday over ethanol supplyPetroleum Minister Murli Deora and Agriculture Minister Sharad Pawar will meet Tuesday to discuss the issue of supply of ethanol for blending with petrol.Source: IndiaeNews.com: Business News | 23 Nov 2009 | 9:00 am Wipro to hire more locals in US for Atlanta operationsGlobal software major Wipro Technologies is expanding its US operations and will hire about 1,000 people, including more locals, at its Atlanta development facility, the IT bellwether said Monday.Source: IndiaeNews.com: Business News | 23 Nov 2009 | 7:07 am
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