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Experts play matchmakers; debate ideal PSU bank fitsS Narayan, former Finance Secretary, Joydeep Sengupta, Partner at McKinsey and AK Purwar, former Chairman of SBI debate the perfect PSU bank fits and the road ahead for the sector.Source: Moneycontrol Top Headlines | 28 Nov 2009 | 7:11 am Force India stick with Sutil and Liuzzi for 2010Germany\'s Adrian Sutil and Italian Vitantonio Liuzzi will drive for Force India again in 2010, the Formula One team said on Friday.Source: Moneycontrol Top Headlines | 28 Nov 2009 | 6:32 am IBA agrees on second pension option, wage hikeThe Indian Banks Association has finally signed a wage agreement with the United Forum of Bank Unions (UFBU) the union, which covers officers and clerical staff.Source: Moneycontrol Top Headlines | 28 Nov 2009 | 5:13 am Audit would hurt economic prospects: Bernanke!Federal Reserve Chairman Ben Bernanke said on Friday congressional proposals to audit the Fed and strip it of regulatory powers as part of post-crisis reforms could damage prospects for economic and financial health in the future.Source: Zee News : Business | 28 Nov 2009 | 5:03 am US stocks plunge on Dubai`s debt woes!US stocks slumped during a shortened trading day Friday amid a debt crisis in Dubai that sparked similar sell-offs in other world markets.Source: Zee News : Business | 28 Nov 2009 | 5:03 am Bank of America amends pay for senior executives!Bank of America Corp, the largest US bank, amended on Friday the compensation agreements of two senior executives, following a review by the pay czar.Source: Zee News : Business | 28 Nov 2009 | 5:03 am Honda city sells 50,000 units in 12 monthsHonda city one of the most popular cars in the Indian market has crossed record sales by selling 50,000 units in just 12 months.Source: Moneycontrol Top Headlines | 28 Nov 2009 | 4:00 am Recession hits steel scrap supply in 2009, 2010Global scrap supply will fall in 2009 as the economic downturn hits recycling activity and next year the developed world\'s recovery will be key for scrap availability.Source: Moneycontrol Top Headlines | 28 Nov 2009 | 3:21 am Tata Motors in profit as Jaguar`s outlook brightensTata Motors reported a return to operating profit for its British Jaguar Land Rover unit as cost cuts begin to bear fruit and new models attract buyers.Source: Moneycontrol Top Headlines | 28 Nov 2009 | 3:21 am Valecha Eng board raising up to $20 millionValecha Engineering said on Friday its board has approved raising up to USD20 million via equity or debt from Indian or overseas markets.Source: Moneycontrol Top Headlines | 28 Nov 2009 | 3:21 am Indian bond yields up on profit taking, RBI talkIndian federal bond yields snapped a twoday losing streak on Friday and ended higher on profit taking ahead of the weekend, also supported by slightly hawkish words from the Reserve Bank of India governor.Source: Moneycontrol Top Headlines | 28 Nov 2009 | 3:21 am \'Abu Dhabi banks have big Dubai exposure\'Abu Dhabi Commercial Bank has at least 8 to 9 billion dirhams exposure to Dubai World and related entities, which will require the bank to book more provisions.Source: Moneycontrol Top Headlines | 28 Nov 2009 | 3:21 am RBI says loans to govt nil in week ended Nov 20India\'s federal government did not borrow any funds from the central bank in the week ended November 20, the Reserve Bank of India said in its weekly statistical supplement on Friday.Source: Moneycontrol Top Headlines | 28 Nov 2009 | 3:21 am Abu Dhabi to 'Pick and Choose' Dubai Debt Support, Reuters Says - Bloomberg
Source: Business - Google News | 28 Nov 2009 | 3:20 am India Studying Impact of Dubai's Debt Delay Plan - Bloomberg
Source: Business - Google News | 28 Nov 2009 | 3:20 am Gold rises by Rs 90, silver jumps Rs 600 a kgGold prices rose by Rs 90 per 10 gram and silver rates jumped by Rs 600 a kg in the bullion market here on fresh buying on Saturday, a day after the precious metal crashed on concerns over Dubai debt crisis.Source: India Business News | Business News - Times of India | 28 Nov 2009 | 3:10 am Dubai crisis will not affect NCCL: MurthyThe twin tower project NCC Harmony, covering 2.3 million square feet of built-up area at the DuBiotech free-zone is the first project by the company in Dubai.Source: Daily News & Analysis: Money News | 28 Nov 2009 | 3:08 am Abu Dhabi to aid Dubai "case by case" - officialABU DHABI (Reuters) - Abu Dhabi, capital of the United Arab Emirates and one of the world's top oil exporters, will "pick and choose" how to assist its debt-laden neighbour Dubai, a senior Abu Dhabi official said on Saturday.Source: Reuters: Money News | 28 Nov 2009 | 2:47 am British firm Atlantis mulls tidal power project in GujaratLondon/New Delhi: British energy company Atlantis Resources has said it is assessing the viability of a 100 MW tidal power project in Gujarat. The company has particular interest in the Gulf of Kutch and the Gulf of Khambhat areas, according to the information available on the company website. Earlier in the day, the British daily ‘The Times’ also has reported that Atlantis has “forged a deal with Gujarat, under which the company will establish the feasibility of developing tidal power projects.” India has more than 7,240 km of coastline and is scrambling to tackle a gaping power deficit but has yet to establish a single tidal power project, the daily said. Tidal current power is a form of clean energy, which is generated through the gravitational attraction between the sun and moon, creating high and low tides. Tidal current energy takes the kinetic energy in these tidal currents and converts it into renewable electricity. Moreover, demand for electricity in India is likely to increase more than five-fold by 2030 the report said citing a study by McKinsey. Source: LatestNews-Home - Livemint.com | 28 Nov 2009 | 2:43 am India won't be affected much by Dubai: Pranab MukherjeeFinance minister Pranab Mukherjee said the impact cannot be much, as our stake is small and the amount involved compared to the world economy is miniscule.Source: Daily News & Analysis: Money News | 28 Nov 2009 | 2:35 am India won’t be affected much by Dubai crisis: PranabChandigarh: Dubai’s debt crisis will not affect India much but the government is keeping a close watch and will act to prevent any fallout, the finance minister said on Saturday. “The impact cannot be much as our stake is so small and the amount involved compared to the world economy is miniscule,” Pranab Mukherjee told reporters in the northern city of Chandigarh, where he was delivering a lecture. “Watchful and effective intervention at the appropriate time can avert some immediate crisis,” he said. Indian stocks and the rupee were rattled on Friday after Dubai’s woes stoked fears over corporate exposure to a key trading partner and that foreign funds would lose their appetite for risk. The United Arab Emirates (UAE), of which Dubai is part, is the second-biggest export destination for India and accounts for 10-12% of India’s inward remittances. Mukherjee said the emirate’s problems could force a return of Indian citizens, who make up more than 40% of the UAE’s population. Stimulus unsustainable Mukherjee said the stimulus measures that buoyed the economy in the wake of the financial crisis were unsustainable and the government would have a roadmap by December to consolidate its fiscal position over the next five years. The firefighting policies by Asia’s third-largest economy have contributed to a bulging of the fiscal deficit to a projected 6.8% of GDP for 2009-10. “This level of fiscal expansion can only be a short-term response and is unsustainable on a long-term basis,” Mukherjee said in his speech. Prime Minister Manmohan Singh has said India would likely wind down its stimulus measures next year. The Reserve Bank of India has already started what it calls the first phase of the exit from its easy monetary policy, worried about inflationary pressures. India’s economy was set to grow at 6-7% in the financial year to March and the government was efforting a return to the 9% growth rate seen before the crisis clipped the pace of expansion, Mukherjee said. The worst of the financial crisis seemed to be over and there would not be a lasting impact on India’s development outlook over the medium to long term, he said. “The caveat is a sustained recovery of the developed countries from the current crisis,” he said. Mukherjee also said the central bank had intervened in the forex markets to stabilize the rupee after the crisis. Source: LatestNews-Home - Livemint.com | 28 Nov 2009 | 2:17 am India won't be affected much by Dubai - Pranab MukherjeeCHANDIGARH (Reuters) - Dubai's debt crisis will not affect India much but the government is keeping a close watch and will act to prevent any fallout, the finance minister said on Saturday.Source: Reuters: Money News | 28 Nov 2009 | 2:12 am CAT calling - last minute tips for the exams - Moneycontrol.com
Source: Business - Google News | 28 Nov 2009 | 2:01 am India won't be affected much by Dubai crisis: PranabFinance minister Pranab Mukherjee said Dubai's debt crisis will not affect India much but the govt is keeping a close watch. The problem could force a return of Indian citizens, who make up over 40% of UAE's population.Source: India Business News | Business News - Times of India | 28 Nov 2009 | 2:00 am UAE central bank says closely monitoring Dubai crisisABU DHABI (Reuters) - The central bank of the United Arab Emirates is closely watching events stemming from the Dubai debt crisis to ensure no harm results for the national economy, a spokesman for the central bank said on Saturday.Source: Reuters: Money News | 28 Nov 2009 | 1:42 am G7 monitoring Dubai fallout: Canadian finance ministerCanadian finance minister Jim Flaherty said the Canadian banking regulator sees little or no impact in Canada from Dubai's request for a standstill on payments.Source: Daily News & Analysis: Money News | 28 Nov 2009 | 1:13 am Indian bond yields up on profit taking, RBI talk - Moneycontrol.com
Source: Business - Google News | 28 Nov 2009 | 1:10 am Sensex down 2.29 percent from last weekLosses in Indian equities were widespread this week, prompted first by profit booking and then in a big way by a debt default fear on the part of Dubai World. Benchmark indices fell sharply in the last two trading days in sync with bourses across the world.Source: IndiaeNews.com: Business News | 28 Nov 2009 | 1:01 am Sensex, Nifty down by over 2% breaking a string of three-week rallyMarkets fell by more than 2% breaking a string of three-week rally after the key indices Sensex and Nifty hit recent lows on heightened worries that Dubai's debt crisis may impact adversely the financial system.Source: India Business News | Business News - Times of India | 28 Nov 2009 | 12:52 am Stocks fall more than 2% on weekMumbai: Markets fell by more than 2% breaking a string of three-week rally after the key indices Sensex and Nifty hit recent lows on heightened worries that Dubai debt crisis may impact adversely the financial system. The BSE 30-share index Sensex plunged to a three-week intra-day low of 16,210.44 points on Friday as global markets were rattled by Dubai problem, raising fears about the capital outflows and corporate exposure. Eventually, the market bounced to end just above the 16,600 strong support level, propelled by a massive salvage operation from domestic institutional investors. The Sensex settled at 16,632.01 points on Friday, down 389.84 points, or 2.29% from last weekend’s close. Similarly, the National Stock Exchange’s Nifty also ended below 5,000 level at 4,941.75, netting a loss of 110.70 points, or 2.19%, from its previous weekend’s close. Hitech Securities director Sanjay Bhambri said the market has shown greater resilience and is expected to be much higher than the levels seen in this week. The market has strong support at 16,600 level but gets resistance above 17,000 mark. During the week, the market witnessed high volatility as investors roll over positions to December series at the end of the expiry of November contract of the Futures & Options. Markets still seem bullish with the government setting a priority for reforms in insurance sector in the winter Parliament session. It has also ruled out withdrawal of economic stimulus packages for one year and imposition of tax to curb the capital inflow. However, the rising inflation is seen as one of the impediments for the market surge as higher inflation could prompt monetary action. India’s largest private sector firm - Reliance Industries - was down about 1% on its ex-bonus price this week. Realty stocks bore the brunt of selling. Realty major DLF fell by 6.44%. India’s largest private sector lender ICICI Bank dropped by 5.13% and largest public sector commercial bank SBI by 3.99%. IT stocks too tumbled after their recent rally. Infosys Technologies dipped by 4.09%, Wipro by 3.86% and TCS by 3.13%. During the week, trading volumes on BSE and NSE were almost steady at Rs23,833 crore and Rs78,979 crore against last week’s turnover of Rs24,992 crore and Rs77,082 crore respectively. Auto stocks such as Hero Honda spurted further by 5.70% and Maruti Suzuki by 1.40%. Hindustan Unilever gained 2.62% and ACC 3.32%. Source: Home - Livemint.com | 28 Nov 2009 | 12:50 am Weekly review: Sensex down 2.29% from last week - Sify
Source: Business - Google News | 28 Nov 2009 | 12:42 am Pimco: Dubai triggers 'overdue correction' in stocksNEW YORK (Reuters) - Rising fears of a possible debt default at a Dubai state-owned conglomerate is the catalyst for an "overdue correction" in equities and risk assets, the chief executive of top bond fund manager Pimco said in an interview on Friday.Source: Reuters: Money News | 28 Nov 2009 | 12:35 am Cox and Kings sets IPO price at Rs330 per shareThe IPO, that closed on November 20, was subscribed 6.31 times, according to data on the National Stock Exchange.Source: Daily News & Analysis: Money News | 28 Nov 2009 | 12:31 am Canada's Flaherty says G7 monitoring Dubai falloutTORONTO (Reuters) - The Group of Seven countries has discussed the potential fallout on the global financial system from Dubai's delayed debt payments, Canadian Finance Minister Jim Flaherty said on Friday.Source: Reuters: Money News | 28 Nov 2009 | 12:25 am Cox and Kings sets IPO price at 330 rupees/shareMUMBAI (Reuters) - Travel operator Cox and Kings (India) Ltd has fixed a price of 330 rupees ($7.07) a share for its initial public offering, a company statement said on Saturday.Source: Reuters: Money News | 28 Nov 2009 | 12:17 am Sufficient room for banks to cut lending rates further: SubbaraoThe Reserve Bank of India is studying the likely impact of Dubai World's financial crisis on India, the Governor, Dr D. Subbarao,Source: Business Line - Home Page | 28 Nov 2009 | 12:00 am Bank employees get one-time pension optionAfter bargaining hard for over two years, bank unions and the Indian Banks' Association (IBA) on Friday finally agreed to the ninth bipartite wage settlement with effect from November 1,Source: Business Line - Home Page | 28 Nov 2009 | 12:00 am Dubai crisis rocks realty stocks in the morning sessionThe roller-coaster movement of the Indian realty stocks on Friday can be attributed to mixed investor sentiment on account of the debt crisis in Dubai, saidSource: Business Line - Home Page | 28 Nov 2009 | 12:00 am Markets this weekThe bourses opened the week on a positive note. Strong Asian cues and a spike in Reliance Industries, owing to its offer to take controlling stake in LyondellBasell Industires led the rally on Monday. The Sensex advanced 158 points, to end atSource: Business Line - Home Page | 28 Nov 2009 | 12:00 am Lower JLR losses, stake sale in arms rev up Tata Motors consolidated netSource: Business Line - Home Page | 28 Nov 2009 | 12:00 am TCS to hire about 25,000 in 2010-11Indicating a revival of business opportunities, Tata Consultancy Services (TCS) has said that it will recruit about 25,000 people inSource: Business Line - Home Page | 28 Nov 2009 | 12:00 am Market cuts losses after Govt allays Dubai fearsThe domestic stock market buckled for the second consecutive day on Friday fearing the Dubai World debt crisis might lead to a repeat of last year's Lehman Brothers' episode that sent world marketsSource: Business Line - Home Page | 28 Nov 2009 | 12:00 am M.P., U.P. plantings help wheat area rise 5.1%Progressive area under wheat is up 5.1 per cent this year on the back of aggressive planting by farmers in Madhya Pradesh (M.P.) and Uttar PradeshSource: Business Line - Home Page | 28 Nov 2009 | 12:00 am Core sector grows 3.5% in OctThe six ‘core' infrastructure industries have registered a 3.5-per cent year-on-year growth during October, compared to the 4.1 per cent and 7.8 per cent levels of the preceding two months and the 2 per cent for OctoberSource: Business Line - Home Page | 28 Nov 2009 | 12:00 am NRI remittances seen rising in short-termThe $60 billion-odd Dubai debt crisis could spark an increase in remittances from Dubai, in the short term, as uncertainty and nervousness spook the NRIs confidence in local banks inSource: Business Line - Home Page | 28 Nov 2009 | 12:00 am PM for emission cut target with equitable burden-sharingPort of Spain: Pushing for a legally binding substantive outcome at the Copenhagen climate change meet, Prime Minister Manmohan Singh on Saturday said India is willing to sign on to an ambitious global target for emission reduction or limiting temperature increase if it is accompanied by an equitable burden-sharing paradigm. He denounced attempts by some developed nations to junk the Kyoto Protocol on greenhouse gas emissions and said climate change “is becoming the pretext for pursuing protectionist policies under a green label” which would be rejected by India and other developing nations In a strongly-worded intervention at the Commonwealth Heads of Government Meet (CHOGM) here, Singh said, “it is unfortunate that the global discourse on climate change has become enmeshed with arguments about maintaining economic competitiveness or level-playing fields.” Singh disapproved of attempts by some developed countries to lower expectations from the December Summit on Climate Change, saying the negotiations should not be pre-empted and effort should be made to achieve as much convergence as possible. “If the outcome at Copenhagen diminishes rather than enhances the implementation of the UNFCCC (UN Framework Convention on Climate Change) in respect of the specific components of mitigation, adaptation, finance and technology, it would represent a serious setback, no matter how we seek to characterize this result,” the Prime Minister told the Summit of 53 former British colonies. Source: LatestNews-Home - Livemint.com | 27 Nov 2009 | 11:34 pm Fed's Bernanke: Audit would hurt economic prospectsCongressional proposals to audit the Fed and strip it of regulatory powers as part of post-crisis reforms could damage prospects for economic recovery.Source: Daily News & Analysis: Money News | 27 Nov 2009 | 11:14 pm Fed's Bernanke - Audit would hurt economic prospectsWASHINGTON (Reuters) - U.S. Federal Reserve Chairman Ben Bernanke said on Friday congressional proposals to audit the Fed and strip it of regulatory powers as part of post-crisis reforms could damage prospects for economic and financial health in the future.Source: Reuters: Money News | 27 Nov 2009 | 9:27 pm SGCCI to hold dinner party for Gujarat CMLeading businessmen and industrialists, prominent doctors, advocates, social workers, politicians have been invited for the party.Source: Daily News & Analysis: Money News | 27 Nov 2009 | 9:26 pm 'Gujarat is biggest market for scooters in country'Mahindra Group expects Gujarat sales to boost its national sales.Source: Daily News & Analysis: Money News | 27 Nov 2009 | 9:25 pm Survival-tactics search begins at ConfluenceFirst day of IIMA's biz summit attracts around 700 participants.Source: Daily News & Analysis: Money News | 27 Nov 2009 | 9:13 pm DNA Futsal extravaganza kicks off with a bang today16 teams will battle for glory at St Xavier's, Loyola Hall.Source: Daily News & Analysis: Money News | 27 Nov 2009 | 9:05 pm Tribals call 12-hour shutdown in south OrissaA tribal group has called for a 12-hour shutdown in south Orissa Saturday, officials said. The Chasi Mulia Adibasi Sangha (CMAS) is protesting against the killing of two tribal youths in police firing last week in Orissa's Koraput district.Source: IndiaeNews.com: Business News | 27 Nov 2009 | 9:00 pm Gujarat urban co-operative banks get saffron washBJP-backed candidates elected to all 21 director's seats.Source: Daily News & Analysis: Money News | 27 Nov 2009 | 8:59 pm arcelormittal plans steel plant in state - Times of India
Source: Business - Google News | 27 Nov 2009 | 4:54 pm RBI tells banks to reveal exposure to Dubai - Economic Times
Source: Business - Google News | 27 Nov 2009 | 3:28 pm Banks, world leaders play down Dubai debt threatDUBAI/LONDON (Reuters) - World leaders expressed confidence in the global economic recovery on Friday despite fears about a debt default by Gulf emirate Dubai, while major banks played down their exposure to the debt.Source: Reuters: Money News | 27 Nov 2009 | 2:49 pm Wall St Week Ahead: Jobs data eyed, but Dubai is the wild cardNEW YORK (Reuters) - Dubai, jobs data, Black Friday results and a chance for Congress to throw fireballs at Fed chief Ben Bernanke: The U.S. stock market's path to glory is fraught with peril next week.Source: Reuters: Money News | 27 Nov 2009 | 2:31 pm ANALYSIS - Dubai debt woes may hit U.S. property marketNEW YORK (Reuters) - Dubai's debt woes could further unhinge an already fragile U.S. commercial real estate, as it illustrates the importance of that tiny country to global investors in an increasingly interconnected world.Source: Reuters: Money News | 27 Nov 2009 | 1:37 pm Reliance cuts SMS rates to one paiseThe new tariff war between telecom service providers will now be in the area of SMS services. Reliance Communications set the ball rolling on Friday by reducing SMS charges to one paise per SMS from the current 50 paise.Source: HindustanTimes.com - Top Business News Headlines | 27 Nov 2009 | 1:26 pm October exports dip just 6.6%, sops on way - Economic Times
Source: Business - Google News | 27 Nov 2009 | 1:14 pm Dubai brings down worldStock markets around the world cracked as Dubai sent tremors of uncertainty. The worst afflicted were emerging markets — Hong Kong, SKorea were down almost 5 per cent, Australia and China 2 per cent. India’s stock markets remained relatively less affected. Dubai default | Should India worry? | Govt optimisticSource: HindustanTimes.com - Top Business News Headlines | 27 Nov 2009 | 1:08 pm Tata Motors in black, posts Rs 22cr profitTata Motors Ltd, the Indian truckmaker that owns Jaguar Land Rover, turned to a profit in the second quarter after it cut costs at the luxury car unit.Source: India Business News | Business News - Times of India | 27 Nov 2009 | 12:55 pm Reliance Capital to buy Quant CapitalAnil Ambani group's financial services arm Reliance Capital said it will acquire brokerage and equity research firm Quant Capital.Source: India Business News | Business News - Times of India | 27 Nov 2009 | 12:50 pm RCOM takes on rivals with 1 paise per SMS scheme - Economic Times
Source: Business - Google News | 27 Nov 2009 | 12:48 pm Core sector grows 3.5%The index of key infrastructure industries expanded by 3.5% in October on better performance by refined petroproducts, electricity generation and finished steel.Source: India Business News | Business News - Times of India | 27 Nov 2009 | 12:47 pm Tata Motors back in profit lane, clocks Rs 22-cr net - Economic Times
Source: Business - Google News | 27 Nov 2009 | 12:46 pm Exports dip 6.6% in OctoberCommerce minister Anand Sharma said the fall in India's merchandise exports has come down to a single digit in October than previous month's as global demand has been picking up.Source: India Business News | Business News - Times of India | 27 Nov 2009 | 12:44 pm JLR on road to revivalEighteen months after Tata Motors took over beleaguered luxury brands, Jaguar and Land Rover, a strategy of cost-cutting and pushing sales have helped the UK labels to post an operating profit of 41 million (Rs 314.55 crore) during the reporting quarter ending 30 September 2009.??The losses in Jaguar and Land Rover (JLR) shrank to 60 million (Rs 460.32 crore) in the reporting quarter as against a loss of 240 million (Rs 1841.28 crore) in the corresponding period, said theSource: Business Standard | Front Page Headlines | 27 Nov 2009 | 12:34 pm Bank employees get 17.5% wage hike, pension benefitBanks and unions today settled on a 17.5 per cent hike in the salary of 702,000 public sector employees, besides agreeing to make 332,000 serving and retired employees eligible for pension. State Bank of India employees association representatives, however, walked out of the wage settlement.Source: Business Standard | Front Page Headlines | 27 Nov 2009 | 12:31 pm Market watching UAE funds' stake in Indian cosFunds managed by entities based in the UAE have invested in a whole host of Indian firms, notably in private sector banks.Source: India Business News | Business News - Times of India | 27 Nov 2009 | 12:30 pm 'Large-scale job losses unlikely'Vayalar Ravi, the minister for Overseas Indian Affairs tried to allay fears of job losses in Middle east due to the Dubai crisis.Source: India Business News | Business News - Times of India | 27 Nov 2009 | 12:27 pm India Inc dispels Dubai debt fearsStock markets skidded today, commodity prices took a beating, Kerala panicked and even Bollywood worried as Dubais $60-billion debt woes sparked fears over corporate and bank exposure to the crisis. Indian companies and banks played down the impact, saying the exposure was not significant.Source: Business Standard | Front Page Headlines | 27 Nov 2009 | 12:27 pm Flying to Dubai may get cheaperTour operators say that Dubai's financial troubles could lead to packages becoming cheaper this winter.Source: India Business News | Business News - Times of India | 27 Nov 2009 | 12:23 pm The Goa you never sawA few kilometres inland from the clichéd beaches and bustling restaurants of Goa, a vast industrial landscape unfolds. The greens and blues give way to shades of brown spread over dusty, terraced hills. And the sounds of wind and water are replaced by the mechanized hum of machines. “Iron ore mining is not something people associate with Goa,” says photographer Tom Parker, who spent a few months this year photographing mining operations in the state. But if you look around, you would see signs of it— from enormous dumper trucks to ore-laden barges—almost everywhere. It is, quite contrary to expectation, the largest economic activity in Goa, bringing in revenue of at least Rs2,000 crore a year. The annual production is 30 million tonnes, most of which is exported, and it accounts for around half of India’s iron ore exports. Click here to view a slideshow of photographs of iron ore mining in Goa Seventy-six iron ore mines of various companies, of which Sesa Goa Ltd and Fomento are the largest, are scattered over an area of 700 sq. km in the Bicholim, Sanguem and Satari talukas. All of them are opencast, created by carving entire hillsides into giant terraces that extend in all directions. The mining season starts after the monsoon in October and extends to mid-May. The process is highly mechanized, employing a little more than 4,000 people, mostly from the coastal belts of West Bengal and Orissa. The state’s ore is low-grade, and requires extensive cleaning and sorting before it is transported to piers on rivers such as the Mandovi and Zuari. A network of barges then transports it to ships— largely Chinese, Japanese and Korean—that are anchored 5km out at sea since they’re too large for most Goan ports. The sheer size and scale of the industry is spectacular. It also brings it a lot of criticism. But, says Parker, his goal was only to document this surprising industrial facet of Goa, “it’s for people to interpret the photographs”. Photographs by Tom Parker Tom Parker has photographed a range of industries across India in collaboration with the Confederation of Indian Industry. His book, This is Modern India, will be launched in January. For more information on his book, go to www.thisismodernindia.com Source: LatestNews-Home - Livemint.com | 27 Nov 2009 | 12:23 pm RCom sets 1 paisa SMS fee, extends the tariff warNew Delhi: Per paisa” may be the new buzz phrase of the telecom sector. Opening a new front in the tariff war raging across the sector, Anil Ambani-promoted Reliance Communications Ltd slashed its SMS (short message service) rates to 1 paisa per message on Friday. “All Reliance Mobile customers, regardless of the tariff plans they have for voice and data services, can avail of the 1p/SMS plan by subscribing to a standard tariff voucher of Rs11 per month,” a statement from the company said. Additionally, the firm offers a plan of Re1 per day for unlimited SMSes. At present, the lowest SMS rate in the market is being offered by Tata Teleservices Ltd’s GSM-based mobile services provide, Tata Docomo, which charges 1 paisa per character. The average SMS rate in India is between 40 paise and 60 paise per message. “This move will spell disaster, but it also shows that the worst is still not over. Cracks are starting to appear and the the companies are getting desperate to acquire subscribers to ensure that when consolidation happens in the next six-nine months they will get a good valuation,” a Mumbai-based analyst with an international brokerage firm said on condition of anonymity, as he is not authorized to speak to the media. “Reliance has not been able to get much traction from their Simply Reliance offer and the GSM (global system for mobile communications) offerings did well only till June. Now with the Dubai issue, funding is also short and if that does not get resolved, then the consolidation will happen within the next six months, otherwise within nine months.” On 20 November, India’s largest mobile phone services provider, Bharti Airtel Ltd slashed its roaming charges by around 60% for both incoming and outgoing. The firm also launched “pay per second” plans for international calls on 24 November. According to Bharti’s new roaming plan, mobile customers could make and receive calls across the country at 60-80 paisa per minute depending on whether they were calling within Airtel’s network or another network. India’s third largest mobile phone service provider by subscribers, Vodafone Essar Ltd, has also decided to match the 60% cut in roaming charges announced by Bharti. “The final nuances are being worked out. The reduced roaming rates will be announced by Saturday,” a Vodafone-Essar official told NewsWire18. The spokesperson for Vodafone Essar denied that the firm had anything to offer at present. On Monday, Tata Docomo, announced that while roaming, subscribers could receive and take calls across India at 1 paisa per second. The rate would apply across all 15 circles where the telco has launched GSM services, regardless of which network or type of phone the call is made to. India’s telecom sector added 16.67 million mobile subscribers in October to take the total to 488.4 million mobile subscribers. Bharti still leads the pack with 113.21 million subscribers followed by Reliance with 88.21 million mobile subscribers. Vodafone Essar is close behind with 85.82 million mobile subscribers. Tata Teleservices is at present the sixth largest mobile phone firm by subscribers with 50.66 million subscribers having added the maximum of 11 million in the last three months since the beginning of the tariff war. NewsWire18 contributed to this story. shauvik.g@livemint.com Source: Home - Livemint.com | 27 Nov 2009 | 12:11 pm Quick Edit | Fire and ice in DubaiThe sandstorm in Dubai has hit financial markets in most parts of the world. It is tough to assess right now how serious the West Asian emirate’s debt problems are. But the past 48 hours should hopefully act as a reminder to investors and analysts that while the worst may be over for the world economy, the recovery is still fragile. Financial markets have been on a roll since March, first growing in confidence and now almost dangerously sanguine. Most traders and investors have not bothered to ask themselves a simple question: If the crisis is indeed over, then why are central banks and governments still continuing with their stimulus programmes? Dubai World, the emirate’s investment company, is now staring at a default. It has told creditors it needs time to pay back the $60 billion it owes them. Iceland tumbled into near bankruptcy in 2008 after the collapse of its three largest banks. The columnist Thomas Friedman famously called it a hedge fund with glaciers. Is Dubai a hedge fund with sand dunes? Source: Home - Livemint.com | 27 Nov 2009 | 12:11 pm As China takes the lead, India may also unveil climate goalsBeijing: India is being strategically pushed into announcing voluntary targets to curb its carbon footprint as China makes moves to lead developing nations in negotiating a major climate deal in Copenhagen next month.  Tackling numbers: Minister of state for environment Jairam Ramesh. Harikrishna Katragadda / Mint The minister said he told Wen that India is also looking at outcomes and emissions/energy intensity. “We have the numbers. We have done the homework,” said Ramesh. “There is a lot of room for reducing energy and emissions intensity in India without jeopardizing 7-8% GDP (gross domestic product) growth. Whether, how and when we announce, has to be decided.” India’s targets will be lower than China’s. “By 2020, China will be where India is today in terms of emissions intensity,” said Ramesh. Carbon intensity is the amount of carbon dioxide emitted per unit of economic growth. This week, China promised to cut 40-45% of its carbon intensity below 2005 levels by 2020. The Chinese leadership has taken charge and invited negotiators from India, South Africa, Brazil and Sudan to Beijing on Saturday, to strategize for Copenhagen when nations will plan targets to curb manmade emissions that cause global warming. “Clearly, this is part of a new Chinese leadership-cum-publicity relations exercise,” said Ramesh. India’s approach too will be domestic and voluntary.  Singh is considering an invitation to attend the Copenhagen conference, Ramesh was cited as saying by PTI. “Our Prime Minister has received the invitation to go to Copenhagen. He has been invited to attend the summit of the heads of state on December 18,” Ramesh said. On 18 November, China’s foreign minister Yang Jiechi wrote a three-page letter on climate change to his Indian counterpart S.M. Krishna. India and China will not accept absolute emission cuts. But Ramesh emphasized it was time for India to move from talk to quantifying outcome in energy or emissions intensity. China is ahead of India in plans to mitigate climate change impact and is working on reducing energy intensity by 20% of 2005 levels by 2010. PTI contributed to this story. feedback@livemint.com Source: Home - Livemint.com | 27 Nov 2009 | 12:11 pm Dubai realty debacle: Indian firms say they are unaffectedBangalore / New Delhi: Four years ago, when developer Niranjan Hiranandani and his son Darshan announced the 23 Marina skyscraper project in Dubai, the emirate was the place to be in. The city had turned into a construction site, its skyline was dotted with yellow cranes, and Indian developers and investors were lining up for a share of the pie.  Looming uncertainty: An undated handout photo of Marina residences at ‘The Palm Jumeirah’ development, also known as Palm Island, built by property developers Nakheel PJSC in Dubai, United Arab Emirates. Bloomberg Dubai was shaping itself into a modern trading hub with mega real estate projects such as the Palm Islands—three man-made islands extending into the sea. But it took a big hit during the downturn as demand waned and credit became scarce. It’s now dotted with incomplete skyscrapers. Also See Dubai’s Domino Effect (Graphics) On Wednesday, the emirate said it would ask creditors of Nakheel PJSC, the builder of the Palm Islands, and Dubai World, the state-owned investment conglomerate that led the emirate’s expansion, to agree to a standstill on billions of dollars of debt as a first step towards restructuring. Only a few Indian companies have said they have exposure to Dubai. New Delhi-based Omaxe Ltd had in June 2008 set up a subsidiary, Rohtas Holdings (Gulf) Ltd, for its real estate operations in Dubai. It planned to construct two residential projects in the Palm Islands at a cost of Rs2,850 crore. Omaxe said it may consider exiting the projects as it had not yet got possession of the land from Nakheel, though it has paid about Rs40 crore as its first instalment. Its shares fell 2.25% to Rs93.25 on the Bombay Stock Exchange on Friday. “Omaxe has still not gained any rights from master developer, Nakheel, for development,” said Rohtas Goel, chairman and managing director, Omaxe. “We may exit keeping in view the current real estate markets both in Dubai and India.” Sheth Estate (International) Ltd, a subsidiary of Mumbai-based Sheth Developers Pvt. Ltd, entered Dubai in 2005 and has five ongoing residential and commercial projects worth $545 million (Rs2,545 crore), but Jitendra Sheth, director, finance and marketing, said the firm has not slowed its projects and construction was going on. The property market contributes 38% to Dubai’s economy. Since September 2008, property rates in the emirate have crashed by at least half, resulting in Nakheel and Emaar Properties PJSC, Dubai’s two realty czars, being stuck with incomplete mega projects. Last November, newspaper Emirates Business 24/7 reported that Nakheel and its affiliate Limitless Llc, controlled by Dubai World, would halt property sales until Dubai’s real estate market improved. Projects by Indian realty firms, too, were struck. “We were planning to start the (second) project but we will wait for another six months. India is the safest place to invest in given the current circumstances,” said Hiranandani, who also heads Hircon International Llc, a joint venture between Hiranandani Developers and Dubai’s ETA Star Property Developers Llc. G. Nandagopalan, project co-ordinator, Kap (India) Projects and Construction Pvt. Ltd, recalls having to return home this March after he lost his job at a project management consultant in Dubai that looked after Nakheel’s multiple projects. “All their projects were shelved and we had no work. The entire team of 90 was asked to leave,” Nandagopalan said in Bangalore. Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj, a property advisory, said what was happening in Dubai was a corporate default situation involving construction firms. “It was evident that Dubai’s real estate market was not long-term sustainable since it was not driven by end-user demand. For a long time now, a multitude of apartments there have been standing unsold, held largely by speculators and investors who had bought them to sell them at higher prices that never happened,” said Puri. “The big question now is how many of these investors have the ability to service their mortgages.” Among Indian firms, DLF Ltd, the country’s largest developer by market value, and Unitech Ltd, the second largest, said they have no exposure to Dubai. DLF earlier had a joint venture with Limitless to develop the Bidadi township on Bangalore’s outskirts but the two companies parted ways because of a delay by the state government in acquiring land. “We never had any projects in Dubai and we no longer have a joint venture with Limitless,”Rajiv Talwar, DLF group executive director, said. Emaar MGF Land Ltd, a joint venture between Emaar Properties and Delhi-based MGF Development Ltd, said its business and funding plans were on track. “Emaar MGF has operations only in India and the developments in Dubai have no impact on Emaar MGF’s business or operations,” a spokesperson for the firm said in a statement. Emaar MGF had in September filed a draft prospectus for an initial public offering to raise Rs3,850 crore. Emaar has a 42% stake in the joint venture. Sobha Developers Ltd, too, said it has no direct exposure in Dubai, but the group does operate in West Asia through various companies unrelated to the Indian-listed firm. “Sobha in Dubai is completely different from Sobha here. All these companies have nothing to do with Sobha (Developers) in terms of ownership,” chairman P.N.C. Menon said. He, however, said he personally owns stakes in West Asian companies with other partners and has operations in Bahrain, Dubai and Oman. Menon said the West Asian business group had completed and sold three commercial business towers and one residential tower. HBS Realtors Pvt. Ltd, another Mumbai-based firm, is unperturbed by the developments. It is planning ultra-luxury residences in downtown Dubai and is negotiating with a couple of large state-owned companies for land. “Prices are close to bottoming out and we are hopeful that there would be appetite and confidence in the market as soon as the debt crisis is over,” said Sandeep Shah, managing director, HBS. madhurima.n@livemint.com Bloomberg contributed to the story. Source: Home - Livemint.com | 27 Nov 2009 | 12:08 pm The videogame theory of managementAdil Zainulbhai, head of consulting firm McKinsey’s Indian operations, says the one thing companies and executives need to develop, if they wish to be able to handle volatile business cycles, is consistency of purpose.  Illustration: Jayachandran / Mint That would mean they never take their eyes off where they eventually want to be even as they chart a path that steers around obstacles and hazards that may suddenly emerge—sort of like in a video game. This is easier said than done. And it has some bearing on the last two Acute Angle columns (that spoke about Ratan Tata and Google). For instance, Tata has shown amazing consistency of purpose over the past few years. The Nano is a result of this. As is the group’s globalization drive. And Google’s continued march has clearly disoriented its rivals across the technology and media business to such an extent that they have lost their consistency of purpose. In some ways, better leaders—of organizations and countries—have always known this. Only, it’s difficult to maintain this consistency in the face of short-term pressures. Or adverse analyst reports. There are enough of both on display in today’s environment. And, as Zainulbhai said when I met him a few weeks ago—watch for a full interview in next week’s Mint—the environment is no longer about certainties, but probabilities. Some would say the best way to deal with such an environment is to not have a strategy at all but take things as they come—and react to them. But for companies that possess consistency of purpose, nothing changes. Still, as Kipling wrote, it’s difficult for companies and executives to keep their wits when everyone around them is losing theirs, and over the past year, there has been enough reason for the latter. I guess that’s the difference between companies that are merely good and those that end up being called great. At a larger level, though, this also highlights the need for a company to have a clear distinction between management and leadership. A good manager has to react to the environment. A good leader never wavers from a purpose. Should the board do this? Should the chairperson of the board do this? I have no answers. All I know is that a chief executive who manages the company, day by day, quarter by quarter, can’t. Source: LatestNews-Home - Livemint.com | 27 Nov 2009 | 12:05 pm Verdict: the bankers never suffered The received wisdom has so far been that the top executives at Bear Stearns and Lehman Brothers suffered with their shareholders as their firms went kaput. The story was that these executives made genuine mistakes and they paid the consequences. If that is true, then incentives do not need to be changed to align them more closely to long-term shareholder value because, after all, both shareholders and executives saw the value of their holdings wiped out. But Bebchuk, Cohen and Spamann say it isn’t enough to consider whether the top executives lost money in the crash—they could have made pots of money before the crash. To see whether they did indeed lose money, they, therefore, considered the compensation paid to the top five executives at each firm over the period 2000-08. The researchers found that the executives had already pocketed in prior years large amounts of money as cash bonuses. In the aggregate, during 2000-08, the top-five teams of Bear Stearns and Lehman accumulated cash bonus payments exceeding $300 million (around Rs1,400 crore) and $150 million, respectively. Further, the executives regularly took large amounts of money off the table by unloading shares and options. The researchers point out that, “during 2000-2008 the top-five executive teams at Bear Stearns and Lehman cashed out total amounts of about $1.1 billion and $860 million respectively. Indeed, we find that during the years preceding the firms’ collapse, each of the teams sold more shares than they held when the music stopped in 2008.” The bottom line: In sharp contrast to shareholders who held their shares throughout 2000-08, the executives’ payoffs during the same period were significantly positive.  Illustration: Jayachandran / Mint The Potential Impact of The Global Financial Crisis On World Trade, by Warwick J. McKibbin and Andrew Stoeckel. World Bank Policy Research Paper 5134 How long will the effect of the global financial crisis last? McKibbin and Stoeckel have modelled the financial crisis “to disentangle the various direct and indirect effects of the crisis on international trade and how events might unravel”. The authors discuss the shocks to which the global economy has been subject. These include the bursting housing bubble in the US, UK and some other countries; the rise in equity risk premia, particularly after the Lehman Brothers collapse; and a rise in household risk, as households view the future as more risky, which affects their saving and spending decisions. These shocks have led to three policy shocks, which include an easing of monetary policy to near-zero official rates of interest in major developed economies; an easing of fiscal policy across countries and large run-up in government deficits; and a rise in trade and financial protectionism. The authors point out that while the fiscal stimulus increases the gross domestic product growth initially, the impact of this is small. But the higher government borrowing will ultimately increase real interest rates, which reduces private investment. This has an impact on trade. The researchers point out that “durable good consumption falls because of the rise in real interest rates, while non-durable good consumption rises due to the income increase. The effect is that imports of durable goods fall and non-durables rise. In addition, the higher real interest rate tends to attract foreign capital, which appreciates the real exchange rate and tends to crowd out exports”. Simply put, while the stimulus measure may have an initial beneficial impact, they will also have unforeseen consequences. According to the model, higher real interest rates persist for up to six years after the stimulus, which “points to some serious potential problems to be faced by policymakers during the recovery period from 2010 onwards”. And finally, one of the conclusions of this study is that trade protection as well as fiscal stimulus have an adverse impact on global trade. That’s because “the aftermath of the fiscal responses crowd out global demand and slow the recovery”. Source: Home - Livemint.com | 27 Nov 2009 | 12:04 pm The week in review for 27 November 2009On Tuesday the CBI alleged the existence of yet another, separate, fraud at Satyam Computer worth nearly Rs5,000 crore. The CBI said Satyam’s founder R. Ramalinga Raju and other accused in the Satyam fraud case pledged their shares at inflated values…raised loans by forging board resolutions...and offloaded stocks at higher values. The new fraud charges are separate from the Rs7,000 crore fraud that Raju admitted to in January this year. The CBI has indicated that trials for the Satyam accounting fraud case will start in three to four weeks. India’s Company Law Board, which has probed the Satyam case, was in the spotlight this week. On Tuesday the CBI arrested its acting chairman, R Vasudevan for allegedly taking a bribe. The corporate affairs ministry later said Vasudevan’s arrest would not have any impact on the investigation into the Satyam accounting fraud. A new chairman, Dilip Deshmukh, took over the Company Law Board on Friday. India’s stock market regulator Sebi has issued a show-cause notice to RIL on several alleged violations. The show-cause notice asks RIL why it should not be prohibited from buying and selling listed securities and not be prohibited from accessing capital markets. RIL has denied the allegations and says it has submitted a detailed reply to Sebi, which had not replied. A show cause notice is not an indictment and only requires RIL to provide a reply. Mumbai’s airport has asked all airlines flying there to maintain a bank guarantee worth six months of payments. The move comes after several loss-making airlines defaulted on their payments. Delhi’s airport already has a similar bank guarantee policy in place. A new government survey has concluded that the number of fake drugs in India is greatly exaggerated. After a one-year long survey, the health ministry has says just 0.046% of all medicines available in retail outlets are spurious. And while the low figure comes as a relief for the government, some members of India’s pharmaceutical industry have criticized the survey for not involving them in spotting fake drugs. The week started with an uproar in Parliament on Monday. Politicians from the opposition BJP were upset over a leaked report that indicts top party leaders for playing a part in the demolition of the Babri Masjid in 1992. The leaked Liberhan commission report mentions current opposition leader L.K. Advani as one of those responsible. But Advani has called the accusation ridiculous. India’s food price index went up 15.6% in the week ending the 14 November. This is the highest level of food inflation in India since 1998. Weak performance from its European unit Corus sent Tata Steel quarterly numbers downwards. It’s consolidated net loss for the quarter ending September reached $585 million. Tata Motors has done better. India’s biggest auto maker posted a consolidated net profit of $4.7 million for the quarter ending September. The company said some of its vehicles from Jaguar Land Rover were received well by customers. A consortium of banks that lent money to Subhiksha Trading Services is trying to figure out a way to revive the now defunct company. The banks have hired the rating agency ICRA to carry out a feasibility study. Source: Home - Livemint.com | 27 Nov 2009 | 11:49 am Congress snub to Pawar: asks govt to check price riseNew Delhi: In a virtual snub to food and agriculture minister Sharad Pawar, the Congress on Friday asked the government to take immediate steps to control prices of essential commodities.  Soaring inflation: Food and agriculture minister Sharad Pawar. The Congress says the Union government needs to take immediate short- and long-term measures to provide relief to the common man. Pankaj Nangia / Bloomberg All India Congress Committee (AICC) general secretary Janardan Dwivedi told reporters that urgent short- and long-term measures to provide relief to the common man were needed. “There should be two types of policies—steps which are required to immediately check prices and steps to be taken to ensure that production of pulses and sugar increases,” Dwivedi said a day after food price inflation crossed 15%. His remarks came close on the heels of Pawar putting the onus on the states for bringing down prices by asking them to crack down on black marketers and hoarders, noting in Parliament that hardly any action has been taken on this. On why the Congress needed to remind the government once again as it had held a working committee meeting in August on prices, Dwivedi said: “It’s not a problem which could be solved in two days. The party has to remind the government particularly when there is a coalition government. We are a major party in it but we are only first among equals. It is not a Congress government.” The party wants the government to take all necessary measures to check prices, he said. As long as work is not initiated urgently to increase the production of pulses, prices cannot be controlled permanently, he said. Besides, the AICC general secretary felt that farmers needed to be motivated to achieve higher production, especially of pulses, as “dal-roti is our staple diet”. Dwivedi also said states need to do more for better monitoring of the public distribution system and take strict action against hoarders and black marketers. He gave credit to the Union government for ensuring that India is one of the countries least affected by the global economic slowdown. Asserting that Congress was concerned over the price rise as it was very much with the people, he recalled that the Congress Working Committee had passed a resolution in its meeting in August asking the government to “keep the strictest vigil on the prices of essential commodities”. The Lok Sabha had on Thursday witnessed a sharp attack on the government from the opposition parties over prices. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 27 Nov 2009 | 11:42 am Gold prices tumble as Dubai triggers stampede for dollarsLondon: Gold prices tumbled nearly 5% to a one-week low below $1,140 (Rs53,352) an ounce on Friday as investors, fearing debt default in Dubai, sought safety in dollars and cash. Other precious metals also slipped. Silver hit a two-week low of $17.66 an ounce, while platinum and palladium touched one-week lows of $1,418.50 and $351 an ounce, respectively.  Safe haven: Gold has also been sold because the higher dollar makes the precious metal more expensive for holders of other currencies. Hauryoshi Yamaguchi / Bloomberg “It’s mainly driven by this news out of Dubai (which) has had a large impact on risk appetite and resulted in a sharply stronger dollar,” said Daniel Major, a metals analyst at RBS Global Banking and Markets. Dubai said on Wednesday two flagship firms planned to delay repaying billions of dollars in debt. State-backed Dubai World has $59 billion of liabilities—a big chunk of the emirate’s debt of $80 billion. That has raised the spectre of default and triggered a sell-off of risky assets such as commodities and stocks. Gold, a traditional safe haven, has also been sold because the higher dollar makes the precious metal more expensive for holders of other currencies. “The events in Dubai highlight the elevated level of sovereign risk heading into next year, the potential pockets of dollar strength that this can deliver,” Deutsche Bank said in a research note. Many investors will also be selling gold, up more than 30% this year, to pay for losses elsewhere. “Margin calls might be playing a part here, particularly for Middle Eastern investors,” said David Thurtell, analyst at Citi. But analysts say expectations of gold purchases by central banks in emerging markets will help buoy prices. Earlier this week, the International Monetary Fund (IMF) said it had sold 10 tonnes of gold to the Central Bank of Sri Lanka, adding the sale was part of the 403.3 tonnes approved by its executive board in September. IMF has already sold 202 tonnes to the Reserve Bank of India and the Bank of Mauritius. “The central bank story is the one that has driven gold higher, not just the dollar story,” Major said. Earlier this week, IMF declined to comment on a newspaper report which suggested India could buy more gold from the fund. Also driving gold are purchases by investors looking for a hedge against inflation that could be triggered by the vast amounts of money being pumped into the global economy by central banks and governments around the world. That can be seen in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, holding 1,127.860 tonnes as of 25 November and within touching distance of the record 1,134.03 tonnes seen on 1 June. Spot silver was at $17.94 an ounce from $18.61 late in New York on Thursday, platinum at $1,432.50 an ounce from $1,452 and palladium at $361.0 an ounce from $368. feedback@livemint.com Source: Home - Livemint.com | 27 Nov 2009 | 11:27 am Oil falls below $75 on Dubai default worriesLondon: Oil prices sank to six-week lows below $75 (Rs3,510) a barrel on Friday as fears that Dubai could default convulsed financial markets and the dollar rose as investors moved into safer assets. US crude for January delivery was $74.62 a barrel by 1302 GMT (India time) in electronic trading, up from a low of $72.39 in early trade, but nearly 5% below Wednesday’s settlement. There was no settlement price on Thursday because US markets were closed for Thanksgiving. London Brent crude fell $1.35 to $75.65. “Oil reacted in relation to equity markets and a stronger dollar. Some of the exaggeration is coming from lower liquidity on the market because of the holiday,” said Harry Tchilinguirian, senior commodity analyst at BNP Paribas. “In terms of fundamentals, nothing has changed in the market. But the knock-on of cross-asset movement has increased since the introduction of quantitative easing.” European stocks were flat on the day, having fallen at the open on easing concerns over the exposure to Dubai’s debt crisis held in European banks. The euro was down 0.6% against the US currency as investors trimmed risk exposure. A stronger dollar diminishes the appeal for some investors of oil and commodities priced in the US currency. Dubai has asked for a debt standstill on tens of billions of dollars as part of a restructuring, sparking debt default fears that could hit other parts of the global economy and derail a fledgling recovery from 2008’s global financial crisis. “The Dubai situation is very worrying and people are obviously worried about a potential domino effect if Dubai can’t pay off their debt,” said Benson Wang, senior adviser at Commodity Broking Services in Sydney. “This episode has destroyed the confidence between borrowers and lenders and it has also shaken the confidence about the pace of a global economic recovery.” Traders said Thursday’s thin volumes and lack of a US crude settlement could also be exaggerating Friday’s oil price move. “People are coming in to work, reading the papers, absorbing the news from Dubai,” said Tony Machacek, a broker at Bache Commodities in London. Oil prices have so far fallen about 10% since striking a year high of $82 early last month, as lacklustre economic data and bulging fuel inventories in the US combine to dent hopes of a swift recovery in energy demand. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 27 Nov 2009 | 11:25 am Zee TV emerges No. 2 in Hindi entertainment genreMumbai: Zee Entertainment Enterprises Ltd’s flagship channel, Zee TV, pipped Star Plus to become the second most popular Hindi general entertainment channel in India in the week ended 21 November.  Popular show: A scene from Colors television serial Balika Vadhu, among the top five programmes in the Hindi entertainment genre. Data from TAM Media Research Pvt. Ltd showed Zee TV posted a growth of 1.6 percentage points in relative share in the reporting week to 19.3%. Star Plus added just 0.3 percentage points, taking its share to 18.5%. Colors remained the market leader with 24% share, down 0.5 percentage point week-on-week. Colors is owned by Viacom18 Media Pvt. Ltd, a joint venture between Viacom Inc. of the US and IBN18 Broadcast Ltd, a Network18 group company. NewsWire18 is a Network18 group firm, and a subsidiary of the listed Television Eighteen Ltd. Sony Entertainment TV, which is fast making inroads among television viewers, lost 0.1 percentage points with its share slipping to 13.8%. Colors’ serial ‘Uttaran’ was once again ranked first in the list of top five programmes in the genre. ‘Na Aana Is Des Laado’ and ‘Balika Vadhu’ also figured in the list, while from Zee’s stable, it was ‘Chhoti Bahu’. Star Plus’ ‘Yeh Rishta Kya Kehlata Hai’ also figured on the list. The Hindi general entertainment genre remained the most watched genre in Indian homes. A programme’s viewing details are measured in television rating points (TRPs), wherein one TRP represents 1% of viewers in a surveyed area in a given minute. TRP is used by advertisers to decide rates. Neo Cricket remained the most watched sports channel on the back of the India-Sri Lanka cricket test match. Its relative surged 28.6 percentage points week-on-week to 71.8%. Among business news channels, CNBC-TV18 reported a 9.3 percentage point fall in share at 51.9%, to the benefit of the other three rivals—NDTV Profit, Bloomberg-UTV and ET Now. Mint has a content-sharing agreement with CNBC-TV18. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 27 Nov 2009 | 11:24 am Mobile phones are good for my businessNew Delhi: India is on a clicking spree. Now that taking a snap does not mean buying film and expensively processing it, everyone’s a photographer. As we point, shoot and then upgrade, the Indian camera market is poised for a boom. Last year, in the middle of a so-called downturn, the market grew at least 50%. In a few years, Hidehiko Tanaka, Nikon India Pvt. Ltd’s managing director happily says, the firm will not even be talking in percentages as trigger happy Indians ensure camera sales growth of four-five times. Tanaka, who set up Nikon India in June 2007, started his career with the Japanese parent 28 years ago. He has worked for several years in Germany, Hong Kong and Singapore, before moving to India in 2007. “People ask me if it’s boring to work in the same company for so long. But when you get to visit and live in so many different places, each assignment becomes like a new job,” he says. Japan is traditionally the biggest camera market. Now China is catching up. But camera penetration in India has not even scratched the surface yet.  Auto focus: The economic potential of the Indian camera market is tremendous, says Tanaka. Madhu Kapparath / Mint How difficult is it to sell cameras in the time of the mobile phone? I see mobile phones with cameras positively. People start shooting with mobile phone cameras and get used to the experience. Next, they want to share the images — so they would have a slide show or take printouts. Soon, they realize that the images are not great, so they take it a step forward and buy a digital compact camera. Once they master that, they move up to an SLR (single-lens reflex) camera. The lens of a mobile camera is the size of the nib of a pen. The difference in picture quality between that and a digital camera is vast. Recently, I went for a polo match. I was surprised at the kind of shots I was able to get there with a compact camera. You won’t be able to get that in a mobile phone. So, it is only a question of time before people upgrade. Mobile phones are good for my business. Polaroids are dead. Films are dying. What would be the next technology to die in cameras? I wish I knew. What I can tell you is what the next technology to come would be. We have recently launched a camera with an inbuilt projector. (Shoots a picture and projects it on the wall). On Monday, we are launching an SLR camera with HD (high-definition) video. We also have a Wi-Fi enabled camera, so you can shoot pictures and email it or post it on the Web. The Internet is an important area for the development of new technology in cameras. What’s Nikon’s India story? We came here two-and-a-half years ago. Nikon also has a large semiconductor business. We first started looking at India when a south Indian state demonstrated interest in setting up the semiconductor business. But it got stuck in the recession. So we started by selling our digital cameras in the Indian market. We also have some other products—industrial equipment, measuring instruments, etc. But 99% of our business comes from digital camera. Last year, the size of the compact digital camera market in India was around 1 million units. This year we are targeting 1.3 million but most likely it will be more than 1.5 million. That’s 50% growth. In SLR, last year, the market was 1.2 million, this year, it is targeted at 1.5 million, but I think it will go close to 2 million. The growth rate is much higher than expected. Why is it so high?  Slideshow: (clockwise from above) Tanaka’s photographs of a streetside view from a moving car, a polo match an Indian wedding What are the difficulties of doing business in India? The most challenging problem of doing business in India is the complicated tax structure. It makes the product very expensive. We pay all the duties and bring our products in and there are traders who don’t do that. So in many ways, Nikon’s competitor in India is Nikon itself. China was similar. When I first looked at the Chinese market in 1996, before the handover of Hong Kong, the duties and taxes there added over 35% to the price of the product. But in eight years, all duties were dropped and now there is only value-added tax. So the grey market died and this helped the camera market grow significantly. I hope the same thing happens in India. You are a keen photographer yourself. Which is your favourite photograph? While I have several favourite shots by famous photographers, like most people, my favourite image is one that I have shot myself. I have a picture here, it’s a shot of Mount Fiji that I took from a plane about six years ago. It is one of my favourites. You play golf. Have you struck any business deals while golfing in India? Playing golf in India is as tough as living in India or doing business in India, the courses are long and tricky. The DLF golf course is so beautiful, it has wildlife and flying peacocks. I didn’t even know peacocks could fly. I think the trick is, in India, you should forget about business and other problems and simply enjoy the course and the game. Who is the Indian you would most like to see with a Nikon camera? There are lots of people, but the one person I would like is Manmohan Singh. He always has the same expression. I would like to have a shot of him with a (Nikon) Coolpix camera and a smiling face. Source: Home - Livemint.com | 27 Nov 2009 | 11:23 am EU names new economic chiefs amid Britain-France tensionsBrussels: The head of the European Commission unveiled his new “cabinet” on Friday, handing France’s Michel Barnier responsibility for financial services despite staunch British opposition.  Delegating power: European Commission president Jose Manuel Barroso. Alessandro Di Meo / AP Commission president Jose Manuel Barroso also handed the plum post of trade commissioner to former Belgian foreign minister Karel de Gucht—a second top job for the EU’s host country, after Herman Van Rompuy was named full-time bloc president. Outside the all-important economic areas—where Brussels wields most of its power and influence—Barroso also decided to name Denmark’s Connie Hedegaard to the new job of climate commissioner. She will lead EU preparations in negotiations on a global treaty to fight the impact of global climate change, something Barroso said “deserves... a dedicated commissioner” as the EU locks horns with the Americans, Brazilians, Chinese and others. While many of these nominations, which have still to be vetted by the European Parliament early in the new year, were anticipated, the financial services decision marks a setback for Britain. There had been much diplomatic wrangling over a post which will control supervision of the EU market for financial services, 80% of which is in the City of London, for the next five years. French President Nicolas Sarkozy indulged in some late-night arm-twisting with Barroso from Brazil, where he is meeting with Amazon Basin countries on climate before the talks being convened by the United Nations in Copenhagen next month, before overcoming British resistance. However Barnier’s department is to be headed up by an English minder, Jonathan Faull, currently in charge of the day-to-day running at justice and home affairs. UK Prime Minister Gordon Brown has made it a personal priority to rein in EU proposals to regulate financial services across Europe from Brussels. The single European market—home to half a billion people and the world’s biggest trading entity—is due for major modernization over the commission’s five-year term in office, to reflect the age of digital commerce. And Barroso said the need to “complete” the job of creating a borderless EU market for services as well as industry was why he ruled out hiving off responsibility for banks, insurers and other markets as Britain had sought. The European Commission handles the money—a €116 billion (around Rs8.09 trillion today) budget for 2008—for the 27-nation bloc. It proposes and enforces laws from Portugal in the west to Poland in the east, and Finland in the north to Greece and Cyprus in the south-eastern Mediterranean. De Gucht will take forward talks on free trade deals with India, several south-eastern Asian states and Canada, similar to a deal negotiated with South Korea by predecessor Catherine Ashton of the UK. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 27 Nov 2009 | 11:06 am Cooperatives should work for financial inclusion of poor: expertsExperts at a workshop on strengthening of cooperatives here Friday agreed on a concrete action plan to promote cooperatives for deeper and sustainable financial engagement of the poor.Source: IndiaeNews.com: Business News | 27 Nov 2009 | 11:02 am US regulator approves Aurobindo, Cipla drugsMumbai: Aurobindo Pharma Ltd has been granted permission by the US Food and Drug Administration for manufacturing and marketing generic Claforan or cefotaxime sodium injections, according to information available on the regulator’s website. The approval is for marketing the drug in 10 mg vials on a prescription basis. The US regulator also approved Cipla Ltd’s generic version of Kaletra tablets. The drug falls in the anti-retroviral segment and is prescribed for the treatment of HIV/AIDS. Source: LatestNews-Home - Livemint.com | 27 Nov 2009 | 11:01 am ArcelorMittal to pursue steel projects in Orissa, JharkhandWorld's largest steel maker ArcelorMittal would continue to pursue its plans to set up integrated steel plants in Orissa and Jharkhand despite delays in land acquisition, a senior company official said Friday.Source: IndiaeNews.com: Business News | 27 Nov 2009 | 11:00 am Dubai is not the last sovereign debt that may have failedThe pace of earnings upgrade in India has slowed and the news from the developed world is not so positive. Mint spoke to Vinod Sharma, head of private broking and wealth management at HDFC Securities Ltd, about the sustainability of the economic recovery and its impact on markets. Edited excerpts: You have said before that this is a pseudo-recovery. Why? A large part of recovery that we have seen across the globe has been essentially a function of the stimulus, whether it be the US or China. Chinese exports to the US would have been more severely impacted had the stimulus not been there to begin with. Even China’s consumption of commodities wouldn’t have been as much if the banks there were not aggressively lending. In India, the demand is (largely) genuine. (But) I believe some of the demand has been advanced on account of this (fiscal stimulus). Even then, sales (of the top 2,000 firms) were down 6% in the second quarter on a year-on-year basis. Unless we have robust sales growth, price-earnings expansion for the markets can’t happen. Now there is no room for cost-cutting and the coming inflation will not leave any elbow room for the Reserve Bank of India to not cut interest rates. And the impact on markets? Going forward, expect countries to defend their turf and trade. This will mean the currencies are likely to be in turmoil. The past experiences of a weak dollar and rising commodity prices needs to be revisited. Commodities may no longer rise with dollar depreciation or the dollar itself may start appreciating. Dubai is not the last sovereign debt that may have failed. Expect this to be repeated elsewhere. There have been near escapes for Ukraine and Greece. If European banks do develop chinks, which they can because of their large exposure to the Middle East, the euro-dollar equation may change. Earlier this week, we had seen negative yields for the US gilts. That means the world is willing to pay the US to keep its money safe. A booming market and negative treasury yields don’t go hand in hand. One of them is wrong. And, I suspect, it’s the markets that need to correct. Last time the unemployment rate in the US reached 10% in 1982, the Dow (Jones Industrial Average) multiplied three times in the next decade. Don't expect an encore (now). In 1982, the interest rates were at 14.5% and gradual cutting of rates brought about fresh oxygen into the economy. But with rates at 0.25% where is the elbow room? The Indian economy is robust, but it can’t exist in isolation. The gains seemed to be capped for the moment. Source: Home - Livemint.com | 27 Nov 2009 | 10:52 am Dubai debt crisis hits realty stocks DLF declines 1 pcRealty stocks recovered from the sharp losses, but still ended in the red with the sectoral index losing 0.55 per cent, after majority of the players said that they are insulated from the financial crisis in Dubai which rattled the world markets.Source: HindustanTimes.com - Top Business News Headlines | 27 Nov 2009 | 9:49 am IT sector to recover in next two quarters Narayana MurthyThe IT sector would see a recovery from its current downturn in the next two quarters, a top industry official said.Source: HindustanTimes.com - Top Business News Headlines | 27 Nov 2009 | 9:44 am India s recovery fragile says RBI governorIndia's recovery from the global financial crisis is fragile though the economic fundamentals are strong, Reserve Bank of India (RBI) Governor D Subbarao said today.Source: HindustanTimes.com - Top Business News Headlines | 27 Nov 2009 | 9:16 am What should the Indian worker doBasit Rizvi (30 years) is a tensed man these days. He works for the SGB Group, an engineering company in Dubai, as a credit controller and is uncertain about the fate of his job. Falaknaaz Syed reports. See GraphicsSource: HindustanTimes.com - Top Business News Headlines | 27 Nov 2009 | 9:14 am Remittances unlikely to be hit soonThe Dubai debt debacle may not have an immediate impact on the inflow of remittances — money which is sent home by immigrant workers abroad — into India, reports HT Correspondent.Source: HindustanTimes.com - Top Business News Headlines | 27 Nov 2009 | 9:07 am RBI to study impact of Dubai s debt default crisis on IndiaReserve Bank of India Governor D Subbarao has said the bank will measure the extent of Dubai's debt problem as well as its impact on Indian economy. The debt woes of Dubai stunned the global markets, triggering fears of a widespread default. Dubai default | Should India worry? | Govt optimistic Source: HindustanTimes.com - Top Business News Headlines | 27 Nov 2009 | 9:07 am ArcelorMittal plans to set up steel plant in KarnatakaWorld's largest steel maker ArcelorMittal plans to set up a six-million-tonne integrated steel plant in Karnataka on an investment of $6.41 billion, Chief Minister B.S. Yeddyurappa said here Friday.Source: IndiaeNews.com: Business News | 27 Nov 2009 | 9:04 am No major impact on real estate sector India IncThe financial crisis in Dubai will not have much bearing on India’s real estate sector, developers, analysts and brokers alike told Hindustan Times on Friday.Source: HindustanTimes.com - Top Business News Headlines | 27 Nov 2009 | 9:04 am Reserve Bank to study impact of Dubai's debt problemReserve Bank of India (RBI) Governor D. Subbarao Friday said the bank will measure the extent of Dubai's debt problem as well as its impact on Indian economy.Source: IndiaeNews.com: Business News | 27 Nov 2009 | 9:04 am Financial crisis behind us but normalcy yet to restore ReddyFinancial crisis is more or less behind us but normalcy has not been restored and there could be possible serious problems related to global liquidity, former Reserve Bank Governor Y V Reddy said on Friday.Source: HindustanTimes.com - Top Business News Headlines | 27 Nov 2009 | 9:03 am India's recovery fragile, says RBI governorIndia's recovery from the global financial crisis is fragile though the economic fundamentals are strong, Reserve Bank of India (RBI) Governor D. Subbarao said here Friday.Source: IndiaeNews.com: Business News | 27 Nov 2009 | 9:01 am Indian realtors unfazed by Dubai crisisIndia's realty majors Friday said the debt crisis of Dubai World, one of the largest global conglomerates, would not affect the domestic property sector but fund managers and real estate consultants disagreed.Source: IndiaeNews.com: Business News | 27 Nov 2009 | 7:08 am Work begins on ADB-funded hydropower project in HimachalWork on the Asian Development Bank funded-Sainj hydropower project in Kullu district in Himachal Pradesh started Friday, an official said.Source: IndiaeNews.com: Business News | 27 Nov 2009 | 7:05 am Indian exports decline for 13th straight monthIndia's merchandise exports fell 6.6 percent for the 13th straight month in October to $13.19 billion, from $14.13 billion in the corresponding month last fiscal, Commerce Minister Anand Sharma said Friday.Source: IndiaeNews.com: Business News | 27 Nov 2009 | 7:02 am Lenovo to reaquire cellphone unitHong Kong: China’s Lenovo, the world’s No.4 PC seller, said on Friday that it will pay $200 million to reaquire the cellphone business it sold off 1-year ago, as the lines blur between mobile phones and PCs. Lenovo spun off its mobile phone unit in 2008, saying at the time that the move was designed to help it return to its focus as a PC maker. “Since the sale in 2008, Lenovo Mobile has noticeably improved its financial position and market presence under decisive management actions, and positioned itself for growth,” Lenovo said in a statement to the Hong Kong Stock Exchange. “The directors believe that through the acquisition the group can exploit Lenovo Mobile’s experienced and successful leadership team in the China mobile industry.” Source: World Business - Livemint.com | 27 Nov 2009 | 2:34 am
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