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Bajaj Auto targets sale of 1 m Pulsar next yrIn an interview with CNBCTV18, Rajiv Bajaj Managing Director of Bajaj Auto, spoke about the new Pulsar and strong second quarter growth.Source: Moneycontrol Top Headlines | 30 Nov 2009 | 8:08 am Shriram EPC forms consortium with Chinabased firmShriram EPC said on Monday it signed a memorandum of understanding (MOU) with Chinabased North West Electric Power Design Institute (NWEPDI) to form a consortium for execution of thermal power projects in India.Source: Moneycontrol Top Headlines | 30 Nov 2009 | 8:00 am Banks won\'t raise lending rates till demand picks: Axis BkIn an interview with CNBCTV18, Srinivasan Varadarajan, Executive Director of Axis Bank, spoke about the recently announced gross domestic product numbers and his take on the same.Source: Moneycontrol Top Headlines | 30 Nov 2009 | 7:02 am Tata says plans Nano hybrid carsTata Group is planning to produce hybrid versions of its Nano, billed as the world\'s cheapest car, to join in the environmentfriendly trend, its chairman said in an interview with a South Korean newspaper.Source: Moneycontrol Top Headlines | 30 Nov 2009 | 6:44 am Larsen Toubro, Nuclear Power Corp form $370 mn JVTop engineering conglomerate Larsen Toubro and stateowned Nuclear Power Corp on Monday announced a 17.25billion rupee ($370 million) joint venture to make forgings.Source: Moneycontrol Top Headlines | 30 Nov 2009 | 6:02 am Venezuelan Prez threatens to nationalize banks!President Hugo Chavez has threatened to nationalize banks that violate regulations, saying he`ll do whatever is necessary to prevent irregularities amid a scandal that has prompted his govt to take over management of four banks.Source: Zee News : Business | 30 Nov 2009 | 4:57 am EU, China sign agreements on environment, trade!Chinese and European Union leaders signed five agreements on trade and environmental technology on Monday as they held a summit focussing on global economic issues and climate change.Source: Zee News : Business | 30 Nov 2009 | 4:57 am July-Sept GDP up 7.9% from year earlier!India`s economy grew by 7.9% in the quarter through September from a year earlier.Source: Zee News : Business | 30 Nov 2009 | 4:57 am Asian markets rebound as Dubai debt fears recede!Asian shares rebounded Monday after a heavy sell-off in global equities last week, as the United Arab Emirates central bank moved to bolster its banking sector and calm fears over Dubai`s debt problems.Source: Zee News : Business | 30 Nov 2009 | 4:57 am Japan plans major new stimulus package!Japan plans an extra stimulus of at least 31 billion dollars this fiscal year that would include measures to tackle the surging yen and weak share prices, the top government spokesman said Monday.Source: Zee News : Business | 30 Nov 2009 | 4:57 am IFCI financial strength strong; CAR at 20%The government might be looking at various options, feels, Atul Kumar Rai, Chief Executive Officer and Managing Director, IFCI. \"Merging with a bank is an option.\" However, he added that the companys financial strength was quite strong with capital adequacy ratio (CAR) at 20%.Source: Moneycontrol Top Headlines | 30 Nov 2009 | 4:54 am NHPC sees slip of 2050 MW by one yearNHPC had set a 5,322 megawatt (MW) target for the Eleventh FiveYear Plan. However, its Chairman and Managing Director, SK Garg, sees a slip of 2,050 MW by one year, which will be spilled over to the Twelfth Plan.Source: Moneycontrol Top Headlines | 30 Nov 2009 | 4:00 am GMDC sees growth doubling by end of next financial yearVS Gadhvi, Managing Director of Gujarat Mineral Development Corporation (GMDC) sees growth doubling by the end of next financial year. He believes there are no caveats to the mining policy.Source: Moneycontrol Top Headlines | 30 Nov 2009 | 3:42 am Credit Suisse to set up India outsourcing unitInvestment bank Credit Suisse will set up an inhouse outsourcing centre in Mumbai, the Economic Times reported on Monday.Source: Moneycontrol Top Headlines | 30 Nov 2009 | 3:42 am ONGC finds new oil reserveOil and Natural Gas Corp has found traces of a new oil reserve in Gujarat in western India that could raise its onshore oil production by 20%, the Business Standard reported on Monday, citing anonymous company sources.Source: Moneycontrol Top Headlines | 30 Nov 2009 | 3:42 am Phones without IMEI numbers to be disconnected from tomorrow - Daily News & Analysis
Source: Business - Google News | 30 Nov 2009 | 3:21 am Nifty closes above 5000 on better-than-expected Q2 GDP data - Moneycontrol.com
Source: Business - Google News | 30 Nov 2009 | 3:18 am UTI offers 30 funds for transaction on NSE - Reuters India
Source: Business - Google News | 30 Nov 2009 | 3:15 am Economy may grow at 7%-plus this fiscal: Pranab MukherjeeFinance minister Pranab Mukherjee was commenting on the official growth figures for the second quarter which showed the Indian economy recording a growth rate of 7.9%Source: Daily News & Analysis: Money News | 30 Nov 2009 | 3:15 am Tata Realty to launch landmark residential project in KochiThe neighbourhood is a high-end residential hub situated close to the Central Business District of Kochi and enjoys good connectivity and proximity to the economic centres of the city.Source: Daily News & Analysis: Money News | 30 Nov 2009 | 3:11 am BSE Sensex provisionally closes up 1.6 pctMUMBAI (Reuters) – The BSE Sensex provisionally closed up 1.58 percent on Monday, as investors cheered better-than-expected September quarter GDP data and as concerns about debt default in Dubai eased.Source: Reuters: Money News | 30 Nov 2009 | 3:10 am UTI offers 30 funds for transaction on NSEMUMBAI (Reuters) - India's UTI Asset Management on Monday offered 30 of its mutual funds for transaction through the National Stock Exchange (NSE), becoming the first fund house to take advantage of the vast distribution network of the exchange.Source: Reuters: Money News | 30 Nov 2009 | 3:09 am Footwear major, Timberland, ties-up with Reliance BrandsThrough the collaboration, Timberland products will be available through Timberland fascia retail stores and premium department stores in major cities throughout India.Source: Daily News & Analysis: Money News | 30 Nov 2009 | 3:08 am ASIA LOCAL BONDS-Indonesian bond yields rise on Dubai troubles - Reuters India
Source: Business - Google News | 30 Nov 2009 | 3:07 am NTPC identifies Indonesian coal mines for acquisitionState-run power utility NTPC is scouting for more coal mines overseas and has identified about three blocks in Indonesia.Source: IndiaeNews.com: Business News | 30 Nov 2009 | 3:04 am Trianz enters into a BPO JV with Vee TechnologiesTrianz provides consulting, information technology and BPO services to clients in high-technology, insurance, banking and life-sciences industries.Source: Daily News & Analysis: Money News | 30 Nov 2009 | 3:03 am GLOBAL MARKETS - Bourses mainly steady, but year-end nerves jangleLONDON (Reuters) - World equities generally steadied on Monday as the United Arab Emirates shored up its banks after last week's Dubai debt shock, but European shares fell again as investors grew wary of what many now see as a volatile year-end.Source: Reuters: Money News | 30 Nov 2009 | 3:02 am Sensex ends 1.58 percent upA key index of Indian equities markets closed 1.58 percent in the green Monday.Source: IndiaeNews.com: Business News | 30 Nov 2009 | 3:02 am Letter urges parliament: Right the wrongs, pay homage to Bhopal victimsBhopal gas disaster victims Monday wrote to Lok Sabha Speaker Meira Kumar and Vice President Hamid Ansari, the Rajya Sabha chairman, saying parliament should pay homage to the hundreds of thousands affected by the tragedy 25 years ago.Source: IndiaeNews.com: Business News | 30 Nov 2009 | 3:01 am BJP shutdown cripples life in West BengalHundreds of opposition Bharatiya Janata Party (BJP) activists burnt public transport, damaged vehicles and ransacked offices in several parts of West Bengal to enforce a 12-hour shutdown Monday protesting the rise in prices of essential commodities.Source: IndiaeNews.com: Business News | 30 Nov 2009 | 3:01 am Tata plans Nano hybrid carsTata Group is planning to produce hybrid versions of its Nano, billed as the world's cheapest car, to join in the environment-friendly trend.Source: India Business News | Business News - Times of India | 30 Nov 2009 | 3:00 am BRIEF - Mahindra, BAE set up land systems jv in India* Mahindra and BAE Systems sign joint venture agreementSource: Reuters: Money News | 30 Nov 2009 | 2:58 am Economy may grow at 7 per cent plus this fiscal PranabHappy with the high growth in the second quarter, Finance Minister Pranab Mukherjee on Monday expressed confidence that the economy would grow by over 7 per cent this financial year.Source: HindustanTimes.com - Top Business News Headlines | 30 Nov 2009 | 2:54 am Banks' exposure to Dubai limited -mstanley - Economic Times
Source: Business - Google News | 30 Nov 2009 | 2:50 am Arab states move to stifle Dubai crisis - Economic Times
Source: Business - Google News | 30 Nov 2009 | 2:50 am India economy surges, adds pressure to raise ratesNEW DELHI (Reuters) - The economy grew at its fastest rate in 18 months in the quarter through September, smashing expectations and adding pressure to bring forward an interest rate rise and cut stimulus spending as inflation mounts.Source: Reuters: Money News | 30 Nov 2009 | 2:48 am Nomura ups India FY10 growth forecast to 7 pctMUMBAI (Reuters) - The economy is likely to grow at 7 percent in 2009/10 fiscal year, up from an earlier forecast of 6 percent, Nomura said in a note on Monday.Source: Reuters: Money News | 30 Nov 2009 | 2:47 am Nokia to stick with manufacturing plantsNokia's shares rose slightly on the divestment denial before giving up gains to trade flat at 8.87 euros at 0818 GMT on a softer Dow Jones Stoxx Technology Index.Source: Daily News & Analysis: Money News | 30 Nov 2009 | 2:47 am Rupee up on GDP, shares riseMumbai: The rupee rose on Monday, following a higher-than-expected economic expansion in the September quarter and more than 2% rise in domestic markets also underpinned sentiment. At 3 pm, the rupee was at 46.44/45 per dollar, up from Friday’s close of 46.64/65. The GDP in the September quarter grew an annual 7.9% on high manufacturing. “The rupee has rallied due to the global equities recovery and tracking weakness in the dollar index,” the chief dealer with a large private sector bank said, predicting a range of 46.25-46.45 during the session. Most Asian currencies were stronger compared to the dollar. The dollar edged down against other major currencies on Monday, pausing from sharp gains made last week after the United Arab Emirates offered emergency assistance to banks in Dubai, soothing the market fears about a looming debt default. Indian shares opened up 0.65% and quickly extended gains to more than 2%. Market sentiment improved after many companies said they had only limited exposure to Dubai and on the rise in Asian stocks rose on hopes fallout from any debt default would be limited. Foreign portfolio buying of about more than $15 billion of stocks this year has helped the rupee rise about 12.5% from a record low of 52.2 in early March. Dubai’s debt crisis would not affect India much, but the government is keeping a close watch and will act to prevent any fallout, finance minister Pranab Mukherjee said on Saturday. Source: Home - Livemint.com | 30 Nov 2009 | 2:42 am Policymakers may not withdraw stimulus till early next year: Moody's - Economic Times
Source: Business - Google News | 30 Nov 2009 | 2:32 am Bharti Teletech in pact with RAD for communication solutionsTelecom products distributor Bharti Teletech today said it has entered into an agreement with RAD Data Communications of Israel for delivering the latter's products to the Indian market.Source: HindustanTimes.com - Top Business News Headlines | 30 Nov 2009 | 2:29 am Trianz enters into a BPO JV with Vee TechnologiesTrianz Inc. and Vee Technologies, a premier BPO services-provider based in Bangalore, announced an MoU to create a financial services BPO.Source: HindustanTimes.com - Top Business News Headlines | 30 Nov 2009 | 2:16 am Dubai debt fallout clears; industrial commodities riseSingapore: Commodity investors put fears of a Dubai-fueled debt crisis and a surge in the dollar to the back of their minds on Monday as last week’s rollercoaster ride for industrial raw materials turned into a gentle undulation. Hopes that the fallout from Dubai’s debt standstill will be limited helped Asian stocks recover from sharp falls last week, while the dollar fell 0.6% against major currencies after climbing more than 1% the previous session. “The Dubai debt debacle is something we will keep a close eye on. After the initial shock the market is taking a fairly sanguine view. This is no Lehman Brothers -- yet,” an industrial metals dealer in Sydney said. “But there is a worry that this may be the first in a series of rogue debt waves and if we see more, it could swamp the economic recovery.” Analysts cautioned that sentiment remained on edge and there could be another round of corrections in the equities and commodities markets if Dubai was not able to resolve its debt woes. Implied volatility for US crude futures, a measure of risk perception based on options, rose by 15% on Friday, the steepest jump since October 2008 after oil traded in its widest range in percent terms on Friday in seven months. “Oil prices could be at the mercy of the renewed financial pessimism till further clarity on the Dubai situation emerges,” Barclays Capital said in a research note on Friday. “While short forays below the recent trading range cannot be ruled out as a result of the renewed pessimism, we do not see any underlying shift in the oil market fundamentals and thus expect a return to normalcy once initial fears abate,” it said, adding that it saw $70 as the minimum support level. In metals, three-month copper on the London Metal Exchange rose 1% to $6,920 a tonne. On Friday, prices slumped as low as $6,620, but recovered to end the day $34 higher at $6,855. Dubai, US jobs data, Black Friday retailers’ results and a chance for Congress to throw fireballs at Fed chief Ben Bernanke are likely to keep investors on edge for the week. “For the last four or five months the data has mostly been more positive than expectations. It was only a matter of time before we had a reminder that we won’t have a V-shaped recovery and there are exposures yet to be unravelled,” said Ben Westmore, commodities economist at National Australia Bank. “Many markets have paused...and investors are waiting to see how the macro data pan out.” Spot gold eased $1 to $1,175.70 an ounce from New York’s notional close. Bullion fell as low as $1,163.00 on Monday before paring losses and remains within about 2 percent of its record high of $1,194.90 hit last week. “Even when gold succumbs to cashing out, it faces renewed demand on dips because of its safe-haven appeal against financial jitters,” said Hiroyuki Kikukawa, general manager in the market research department at Nihon Unicom in Tokyo. US soyabean and wheat futures all rose more than 1%, climbing to their highest in nearly a week. Grains are on track for their biggest monthly gains since May, with wheat up nearly 13%, while corn and soybeans are heading for increases of close to 9% each. Gold is on course for a 12.5% gain, its biggest in a year, while copper is set to end November 6.6% to the upside, its tenth monthly gain in 11 months. Oil was more or less flat on the month. Source: LatestNews-Home - Livemint.com | 30 Nov 2009 | 2:10 am L&T, NPCIL ink Rs 1725-cr JV to roll out spl forgings, steel - Business Standard
Source: Business - Google News | 30 Nov 2009 | 2:01 am Peugeot-Citroen says assessing Indian market entryThe French automaker was expected to tie-up with Caparo India, a wholly owned unit of UK's Caparo Group.Source: Daily News & Analysis: Money News | 30 Nov 2009 | 1:55 am Bharti Airtel rises 6%; telecoms upShares in top mobile operator Bharti Airtel rose as much as 6.1% on Monday afternoon, outpacing gains in rivals Reliance Communications and Idea Cellular.Source: Daily News & Analysis: Money News | 30 Nov 2009 | 1:43 am Gold purchases on as prices easeMumbai: India gold traders continued to make purchases on Monday as prices eased further and a stronger rupee, which makes the dollar-quoted asset cheaper, aided sentiment, dealers said. “I did a few deals in between $1,165-1,170 (an ounce), certainly there is interest at lower levels due to weddings,” said a dealer with a private bullion dealing bank in Mumbai. International gold was trading at $1,169.45/1,170.60 an ounce at 2:07 pm, off their early lows of $1,163/1,165 (an ounce). The rupee rose on Monday following a higher-than-expected economic expansion in the September quarter with a near 2% rise in domestic shares also underpinning sentiment. India is in the middle of the wedding season, which is expected to last till December-end. “My orders are waiting to get filled at $1,160-1,165 (an ounce),” said another dealer with a state-run bank. Source: LatestNews-Home - Livemint.com | 30 Nov 2009 | 1:38 am Pranab Mukherjee hopeful of 7% growth in FY-10Government data showed on Monday the economy grew by 7.9% in the quarter through September from a year earlier.Source: Daily News & Analysis: Money News | 30 Nov 2009 | 1:08 am Himachal's seed potatoes selling like hot cakesFalling production of potatoes in other parts of the country this year has proved to be a windfall for farmers of Lahaul and Spiti district in Himachal Pradesh, trade representatives say.Source: IndiaeNews.com: Business News | 30 Nov 2009 | 1:05 am GDP data boosts Indian rupee; stocks rise helps - Reuters India
Source: Business - Google News | 30 Nov 2009 | 1:04 am India logs robust 7.9 percent growth in second quarterSigns of an upturn in the Indian economy were reinforced Monday with official data on the country's gross domestic product (GDP) showing a 7.9 percent growth in the second quarter of this fiscal, taking the markets and experts by surprise.Source: IndiaeNews.com: Business News | 30 Nov 2009 | 1:03 am L and amp;T, Nuclear Power Corp in $370-mn ventureEngineering major Larsen and Toubro (L and amp;T) and state-run Nuclear Power Corp of India Ltd (NPCIL) Monday announced a $370-million (Rs.1,665-crore) joint venture to manufacture ultra-heavy forging and special steels used in nuclear power reactors.Source: IndiaeNews.com: Business News | 30 Nov 2009 | 1:03 am Robust growth numbers push up SensexIndian equities markets reacted positively to news of the economy expanding by 7.9 percent in the second quarter this fiscal, with a key index rising 2.37 percent during post-noon Monday.Source: IndiaeNews.com: Business News | 30 Nov 2009 | 1:00 am Tata plans Nano hybrid carsTata Motors, India's biggest vehicle maker, saw the car industry's future lying in economic-friendly models.Source: Daily News & Analysis: Money News | 30 Nov 2009 | 12:56 am Economy recovery gaining strength: RBI deputy governorGovernment data showed on Monday the economy grew by 7.9% in the quarter through September from a year earlier, shattering market forecasts.Source: Daily News & Analysis: Money News | 30 Nov 2009 | 12:54 am Dubai, Abu Dhabi markets plunge on debt woesDubai: Stock markets in Dubai and neighbouring Gulf emirate Abu Dhabi went into freefall on Monday as investors in the United Arab Emirates grabbed their first chance to respond to Dubai’s debt crisis. Dubai stock market dropped by 7.19% as leading securities, including construction and finance, plunged almost by the maximum-allowed limit of 10% at the opening, which followed a four-day holiday. The market was trading in the morning session at 1,942.62 points, dropping 150.54 points from Wednesday’s close, just before the Dubai government’s shock announcement it wants to freeze debt repayments by its mighty Dubai World conglomerate for at least six months. Dubai’s benchmark DFM Index finished trading on Wednesday at 2093.16, up around 28% this year, though still two-thirds below its all-time highs two years ago. The financial market of oil-rich Abu Dhabi also reacted negatively to Dubai’s debt woes, dropping 8.09% to 2,674.79 points in morning deals. The two markets have so far shed around $10 billion of their market capitalisation. Dubai World property unit Nakheel, builder of the iconic Palm Jumeirah artificial island, asked on Monday to suspend trading of its sukuks, or Islamic bonds, listed on the Dubai-based NasdaqDubai exchange. One of the key loans affected by the planned debt moratorium is a Nakheel issue of $3.5 billion of Islamic bonds or sukuks, scheduled to mature on 14 December. Investors appeared failed to draw reassurance from the UAE central bank’s announcement on Sunday that it was providing additional liquidity to the UAE banks. “This is a step aimed to calm investors... Markets should be calmer (than feared) tomorrow,” Emirati financial analyst Nasser bin Gaith said on Sunday. He said he expected the decision to have no real immediate impact on Dubai’s debt problem, pointing out that Dubai World is largely indebted to foreign banks. “On practical level, there is no direct impact... Local banks have limited exposure to Dubai World, unlike foreign banks,” he said. British banks reportedly have a total exposure of $30 billion to Dubai World. Other Gulf stock markets have also been on holiday since Thursday for the Muslim feast of Eid al-Adha, sparing them an immediate impact from Dubai’s announcement. However, the news sent shock waves throughout other markets around the world on Thursday and Friday as investors feared a possible default by Dubai and its state-owned businesses, which together owe $80 billion. Asian shares rebounded on Monday, with Hong Kong’s Hang Seng Index surging 3.55% to 21,883.95 in afternoon trade to recover some ground after Friday’s tumble of nearly 5%. Dubai and Abu Dhabi are the only Gulf stock markets open on Monday. Kuwait follows on Tuesday and Saudi Arabia’s financial market, the largest Arab bourse in capitalisation, will remain on holiday until Saturday. Dubai does not have big oil reserves, unlike Abu Dhabi which sits on around 95% of the UAE’s crude deposits and runs the world’s largest sovereign wealth fund valued by analysts at $400 to $500 billion. Two Abu Dhabi-controlled banks subscribed to Dubai bonds worth $5 billion in a deal announced a few hours before Dubai revealed its debt problems. But doubts have been growing about Abu Dhabi’s commitment to buoy Dubai, whose growth came to a screeching halt amid the global credit crunch before going into reverse gear. Property prices in the once-booming desert city have slumped by 50% from their peak. Source: Home - Livemint.com | 30 Nov 2009 | 12:42 am Mukherjee hopeful of 7 pct growth in FY10NEW DELHI (Reuters) - The finance minister said on Monday he expects the economy to grow around 7 percent in the fiscal year ending March 2010.Source: Reuters: Money News | 30 Nov 2009 | 12:40 am Tata says plans Nano hybrid cars - paperSEOUL (Reuters) - Tata Group is planning to produce hybrid versions of its Nano, billed as the world's cheapest car, to join in the environment-friendly trend, its chairman said in an interview with a South Korean newspaper.Source: Reuters: Money News | 30 Nov 2009 | 12:35 am Tata plans Nano hybrid carsSeoul: Tata Group is planning to produce hybrid versions of its Nano, billed as the world’s cheapest car, to join in the environment-friendly trend, its chairman said in an interview with a South Korean newspaper. The Maeil Business Newspaper on Monday quoted Ratan Tata, chairman of the Tata Group, as saying in Mumbai that low-priced goods would create stronger demand than high-end products in India, and the so-called low-price revolution would continue across the world. Tata Motors, India’s biggest vehicle maker, saw the car industry’s future lying in economic-friendly models, the daily said. The chairman did not elaborate on the possible launch of cheap hybrid versions. The Nano, at about $2,000 per unit, was first delivered in India in July. The 71-year-old chairman said he was considering exporting Tata Motors’ light truck, Ace, to South Korea, and also assembling or manufacturing the model in its South Korean plant. For new growth businesses, he picked biotechnology and bioengineering, saying Tata was looking for ways to enter the nutrient-enriched food market. He added the group was interested in Vietnam and evaluating the US market, in which it has yet to make active investments. The Indian conglomerate is also studying investments in automobiles, software and hotel businesses as well as bio fuel in South American markets such as Brazil and Argentina. Source: Home - Livemint.com | 30 Nov 2009 | 12:33 am Markets surge on GDP, assurances on Dubai debtMumbai: Indian shares bounced back on Monday, recovering after some companies said they did not have any significant exposure to Dubai debt, and as investors cheered better-than-expected September quarter GDP data. The economy grew by 7.9% in the September quarter from a year earlier, shattering forecasts as stimulus measures boosted demand and manufacturing activity surged. The sentiment was also supported by a rebound in Asian shares. Banks led the gainers on views that most of them do not have material exposure to Dubai. “Banks were the most hit, when the Dubai crisis was unveiled. So, they have rebound the most today,” said R. Ganesh, director of Systematix Shares. By 1:08 pm, the 30-share BSE index was up 384 points at 17,016.28, with all of its components trading in the green. The benchmark had shed 3.3% over Thursday and Friday, as Dubai debt crisis rattled stock markets across the globe. Dubai’s debt crisis would not affect India much, but the government is keeping a close watch and will act to prevent any fallout, Union finance minister Pranab Mukherjee said on Saturday. “Though its not that big a worry for our corporates, as they do not have any significant exposure to Dubai, but the sentiment globally will be cautious,” Systematix Shares’ Ganesh said adding the rebound was more due to short-covering than actual buying. “There could some risk aversion and riskier assets could be less preferred for now,” he said. In the broader market, gainers were more than three times the number of losers in a volume of 90 million shares. The 50-share NSE index was up 2.47%, or 122.10 points, at 5,063.85. Source: Home - Livemint.com | 30 Nov 2009 | 12:27 am Taiwan seeking safeguards in China trade pact GovtThe Taiwanese government will adopt measures to cushion any potential negative impacts on industries from a planned controversial trade agreement with China, an official here said on Monday. Source: HindustanTimes.com - Top Business News Headlines | 30 Nov 2009 | 12:07 am UAE stocks tumble on Dubai woes; Asia reboundsDUBAI/HONG KONG (Reuters) - United Arab Emirate stocks tumbled 6-7 percent on Monday as the market reopened for the first time since Dubai called for a delay in repaying billions of dollars in debt, spooking global markets.Source: Reuters: Money News | 30 Nov 2009 | 12:00 am Day Trading GuideThe analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. The stop-loss level provided with the recommendation is important. The original view would stand negated if the stop-loss level isSource: Business Line - Home Page | 30 Nov 2009 | 12:00 am Govt to impose trans fat limits on vanaspati soonVanaspati makers are apprehensive over a proposed regulation seeking to limit the Trans Fatty Acids (TFA) content in their product to 10 per cent by early next year and to 5 per cent over the subsequent threeSource: Business Line - Home Page | 30 Nov 2009 | 12:00 am Tata Communications (Rs 382): BuyWe recommend a buy in the stock of Tata Communications from a short-term perspective. It is apparent from the charts that the stock has been on a medium-term downtrend from its May high of Rs 651 (a 52-week high). In late October, the stock brokeSource: Business Line - Home Page | 30 Nov 2009 | 12:00 am Gold tumbles on Dubai debacle, but investor interest to stay positiveWhether another contagion is in the making is unclear at present, but last week's financial crisis with Dubai as the epicenter surely stoked fears of a possible repeat of what happened last year beginning with the subprime crisis in the US. BroadSource: Business Line - Home Page | 30 Nov 2009 | 12:00 am Profit-booking may riseThe Dubai debt crisis may not influence the local equity market this week unless it turns into an emerging markets' sovereign risk blow out. The crisis, however, is likely to serve as an excuse for year-end profit-booking. Mindful of ChristmasSource: Business Line - Home Page | 30 Nov 2009 | 12:00 am Ban on illegal handsets: 20 m mobile users to go off air tomorrowWith just a day left for the Government-imposed ban on illegal handsets to come into effect, the mobile operators have sought a two-month extension of the deadline. The operators who have set up 1,600 outlets for implanting the IMEI number onSource: Business Line - Home Page | 30 Nov 2009 | 12:00 am US funds are top investors in Indian marketsWith the US and other western economies seeing little opportunities for investment in their own backyard for the last 12-18 months, India has emerged the most lucrative markets for short and medium-termSource: Business Line - Home Page | 30 Nov 2009 | 12:00 am Bigger hit, slower recovery for small cosAfter having grown at enviable rates in the boom years of 2006-07 and 2007-08, smaller companies saw profits fall more drastically in 2008-09 than their biggerSource: Business Line - Home Page | 30 Nov 2009 | 12:00 am IBM is cheaper than Infosys!If you are a bargain hunting investor, how about substituting your Infosys holdings with the US-listed IBM or Hindustan Unilever with KraftSource: Business Line - Home Page | 30 Nov 2009 | 12:00 am Reliance's D6 gas lights up idle capacityWith the Reliance Industries Ltd (RIL) operated KG-basin D6 block gas flowing in, the gas-based power generation across the country has registered a healthySource: Business Line - Home Page | 30 Nov 2009 | 12:00 am L&T, Nuclear Power Corp form Rs1,725 cr JV to make forgingsMumbai: India’s top engineering conglomerate Larsen & Toubro and state-owned Nuclear Power Corp on Monday announced a Rs1,725 crore ($370 million) joint venture to make forgings. Nuclear Power Corp (NPC) would hold 26% in the venture and the remainder by Larsen & Toubro (L&T), its chairman and managing director AM Naik told reporters. The venture would be funded through a mix of equity and debt with Rs500 crore being the equity component, Naik said. At 11.46 am, L&T shares were up 1.8% at Rs1,615.45, while the main index was up 1.7%. The new integrated facility would be set up in Surat, in Gujarat, the two firms said in a joint statement. The unit would be commissioned in April 2011, Naik said. Indigenous manufacture of forgings will close a critical gap in India’s ability to produce equipment for nuclear, thermal power and hydrocarbon plants and also enable significant reduction in cycle times, the statement said. Nuclear Power Corp, which operates 17 nuclear reactors in India, has a total power generating capacity of 4120 mega watts. According to industry estimates, Asia’s third-largest economy could order nuclear reactors worth Rs60,000-80,000 crore ($12.9 billion-$17.2 billion) by 2020 to generate more electricity and reduce chronic power shortages. Source: Home - Livemint.com | 29 Nov 2009 | 11:58 pm Dubai media, business leaders say woes overblownDubai: Dubai media and some business leaders rallied to support the Gulf Arab Emirate’s efforts to weather its debt crisis, saying problems had been exaggerated and the impact of restructuring overblown. Riad Kamal, chief executive of Arabtec, said he had no doubt about Dubai’s commitment to settle its debt. “Dubai should be given time to restructure its debt. I’m not going to lose sleep over this issue,” he said. The crisis began on Wednesday when Dubai, part of the United Arab Emirates federation, asked to delay payment on billions of dollars of debt issued by conglomerate Dubai World and its main property subsidiary Nakheel, developer of three palm tree-shaped islands that once attracted celebrities and the super-rich. The government of Dubai has taken a hard look at the way Dubai Inc. operates, and will fix what has not worked, English-daily Khaleej Times wrote on Monday. “The need to restructure Dubai World is for real, and the decision to go ahead with it indicates maturity on the part of the emirate’s decision-makers,” the paper said in an editorial. Khaleej Times defended the governent from critics who said the announcement, made just before a four-day Eid al-Adha holiday, had undermined Dubai’s credibility and transparency. “The timing of the announcement of a possible six-month delay in repaying the group’s debt can be debated by market-makers, but not the intention behind it,” it wrote. Some bankers and investors also believe last week’s Dubai World restructuring announcement was blown out of proportion. “The crisis itself has been exaggerated. It is very much localised in one sector and one group. It has been escalated to a much bigger issue,” Suresh Kumar, chief executive of Emirates NBD capital said. Michael Geoghegan, HSBC Group chief executive, said in a statement at the weekend he was “confident that the leadership of Dubai and the UAE will overcome any short-term issues they face, which appear to have been somewhat sensationalised, and continue to lay the foundations for sustainable growth”. Source: Home - Livemint.com | 29 Nov 2009 | 11:42 pm IMF welcomes UAE s move to address Dubai crisisThe International Monetary Fund has welcomed the decision of the United Arab Emirates to come to the rescue of its banks in Dubai and said it is monitoring the situation that took the world market by surprise.Source: HindustanTimes.com - Top Business News Headlines | 29 Nov 2009 | 11:39 pm BJP shuts down Kolkata over price riseKOLKATA, India (Reuters) - Opposition party workers burned buses and shut down business in eastern India's main trading hub on Monday to enforce a 12-hour strike protesting rising food prices, officials said.Source: Reuters: Money News | 29 Nov 2009 | 11:37 pm Second quarter GDP at 7.9%New Delhi: India’s economy grew an annual 7.9% in the September quarter, much faster than expected on government stimulus spending and a surge in manufacturing, adding pressure on the Reserve Bank of India (RBI) to lift interest rates as inflation rises. The annual growth for India’s fiscal second quarter was far above a median forecast of 6.3% in a Reuters poll as agricultural output performed better than expected, sending the yield on the benchmark 10-year bond up by 2 basis points as investors bet on higher interest rates. The growth was the strongest for Asia’s third-largest economy in 18 months. “This data could be a green light for the Reserve Bank of India to hike rates, and there are greater chances of this by end of the calendar year. The exit from the fiscal stimulus by the government may also be earlier post the GDP data,” said Robert Prior-Wandesforde, senior Asia economist at HSBC in Singapore. In the June quarter, India’s economy grew 6.1% from a year earlier, and Prior-Wandesforde said that by his calculation the September’s period’s growth was the sharpest on a quarter-by-quarter basis since quarterly data began in 1996. Manufacturing output expanded 9.2% in the September quarter as consumers stepped up purchases of cars and other goods. Farm output was up 0.9%, beating expectations for a decline, although economists warned that the impact of the poor monsoon was likely to be seen in the current quarter. “The December quarter will show agriculture declining, because that’s when the harvest shortfall will get captured,” said Rajeev Malik, economist at Macquarie in Singapore, who stuck with his view that the central bank would deploy liquidity management steps rather than rate hikes in December and January. “I don’t think they (RBI) are going to be swung by what agriculture has done on a technical basis,” he said. Last week, Union finance minister Pranab Mukherjee expressed worry about rising food prices -- the result of a bad summer monsoon and floods that have crimped farm output. On Monday, however, a top government advisor said there were no serious inflation concerns for now and said he expected no change in government stimulus policy for the current fiscal year. “It is difficult to project what will happen in the rest of the year. But this performance does suggest that there may well have to be an upward revision in the GDP growth of 6.5% which has been projected so far,” Montek Singh Ahluwalia, deputy chairman of Planning Commission. India’s roaring September quarter performance still lagged the 8.9% growth recorded by China during the same quarter. Consumers’ share of spending in the Indian economy totalled 53.5% in July-September, roughly in line with 53.4% a year earlier, while the government’s share rose to 10.6% from 8.7% on the back of stimulus spending, Monday’s data showed. The economy accelerated from its 5.8% rate in the December and March quarters to 6.1% in June on pick-ups in the mining, manufacturing, and electricity and services sectors from the previous quarter. In the 2008-09 fiscal year, India’s economy grew 6.7%, its weakest in six years and well below rates of 9% or more in the previous three years. The RBI has warned the poor monsoon was more likely to drive inflation than to curb growth. The index of food prices jumped 15.6% in the year to mid-November, although supply-side inflation is largely beyond the purview of monetary policy. The central bank cut its key lending rate by 425 basis points between October 2008 and April, while the government slashed duty rates and stepped up spending to pump-prime the economy and prevent massive job losses. The central bank forecast growth during 2009-10 would come in at 6% with an upward bias. The finance minister said last week growth could be 6-7% in 2009-10 and rebound to 8% next year. The RBI late last month began its exit from its extremely loose monetary policy by removing some of the liquidity support measures implemented to help India weather the global downturn. Economists in a Reuters poll at the time were divided over when the RBI would begin to raise interest rates, but were unanimous that rates would increase by the end of April. The central bank will hold monetary policy review meetings in January and April, but can adjust rates at any time. Source: Home - Livemint.com | 29 Nov 2009 | 11:32 pm India logs 7 9 per cent growth in second quarterSigns of an upturn in the Indian economy were reinforced on Monday with the official data on the country's gross domestic product (GDP) suggesting a 7.9 per cent growth in the second quarter of this fiscal. The growth compares favourably to 7.7 per cent recorded in the July-September quarter in the previous year.Source: HindustanTimes.com - Top Business News Headlines | 29 Nov 2009 | 11:28 pm Stop using insurgents as strategic tool, Obama warns PakWashington: In a stern message to Pakistan, the United States has asked it to shed its policy of “using insurgents” like LeT as a strategic tool and warned that if it cannot deliver against terrorists, the US may be impelled to use “any means” at its disposal. The message, which has been conveyed in a letter from US President Barack Obama to his Pakistani counterpart Asif Ali Zardari, also includes an offer by him to try to “reduce tensions” between India and Pakistan, media reported here. The two-page letter, hand-delivered by national security adviser general (retd) James Jones when he visited Islamabad early this month, offers Pakistan enhancement of strategic partnership if they act as wished by the US, besides additional military and economic aid. In his letter, Obama has also warned Pakistan that its use of insurgent groups for policy goals “cannot continue” and called for closer collaboration against all extremist groups. He named five such groups - al-Qaeda, the Afghan Taliban, the Haqqani network, Lashkar-e-Taiba (LeT) and Tehrik-e-Taliban. “Using vague diplomatic language, he said that ambiguity in Pakistan’s relationship with any of them could no longer be ignored,” the Washington Post reported. Jones did some straight-talking with the top Pakistani leadership, the daily said. “If Pakistan cannot deliver, he warned, the US may be impelled to use any means at its disposal to rout insurgents based along Pakistan’s western and southern borders with Afghanistan.” Source: LatestNews-Home - Livemint.com | 29 Nov 2009 | 11:25 pm Oil steadies at $76, Dubai concerns dominatePerth: Oil prices steadied at $76 a barrel on Monday, shedding most of the session’s early gains, as worries about Dubai’s debt crisis and its impact on the world economic recovery returned to haunt investors. Crude oil prices had gained as much as 80 cents to $76.80 a barrel on Monday, thanks to a weaker US dollar and hopes that Dubai’s debt woes wouldn’t feed into the wider market. But the January delivery contract soon lost ground, and turned negative at about 0515 GMT. The contract was up 19 cents at $76.24 a barrel at 0538 GMT. London Brent crude gained 17 cents to $77.35. Traders said the fall in prices was not driven by any news, and it appeared that some investors may have sold off big volumes and cashed out on the contract. “The market is very cautious and that could be driving the sell-off we saw. There hasn’t been much news coming out of the Gulf area and that has kept a lot of people guessing,” said Benson Wang, a senior advisor at Commodity Broking Services Pvt Ltd in Sydney. “There are also some concerns that this episode could start a domino effect and other countries could also face problems with financing.” Financial markets shuddered last week after Dubai said it would ask creditors of state-owned Dubai World and Nakheel, the builder of its palm-shaped islands, for a standstill pact as a first step toward restructuring billions of dollars of debt. But confirmation from Abu Dhabi that it would extend some help to Dubai, as well as moves by the United Arab Emirates to offer emergency assistance to banks in Dubai, helped calm some market concerns. Asian stocks made a tentative recovery after last week’s steep sell-off over the Dubai debt crisis. The greenback edged down against other major currencies on Monday, with the dollar index falling 0.57% against a basket of currencies. US dollar movements and developments in Dubai will be key factors in driving the direction of oil prices this week, analysts said. Prices are up 72% so far this year, but are still roughly half their July 2008 high of more than $147 a barrel. Concerns about a sluggish recovery in global fuel demand, along with high fuel stockpiles in the United States, have pressured crude prices, which are set for a fall of about 0.8% this month, their first decline in four months. Analysts cautioned that sentiment remains on edge and there could be another round of corrections in the equities and commodities markets if Dubai was not able to resolve its debt woes. Implied volality on US crude futures, a measure of risk perception based on options, rose by 15% on Friday, the steepest jump since October 2008. “Oil prices could be at the mercy of the renewed financial pessimism till further clarity on the Dubai situation emerges,” Barclays Capital said in a research note on Friday. “While short forays below the recent trading range cannot be ruled out as a result of the renewed pessimism, we do not see any underlying shift in the oil market fundamentals and thus expect a return to normalcy once initial fears abate,” it said, adding that it saw $70 as the minimum support level. Separately, Iran announced plans on Sunday to build 10 new uranium enrichment plants in a major expansion of its atomic programme, just two days after the UN nuclear watchdog rebuked it for carrying out such work in secret. Source: Home - Livemint.com | 29 Nov 2009 | 11:20 pm Economy on recovery path; grows 7.9% in Q2The Indian economy grew by a significant 7.9% in the second quarter of this fiscal, up from 6.1% in the previous quarter, essentially due to a good showing by the industry and the services sector.Source: India Business News | Business News - Times of India | 29 Nov 2009 | 11:10 pm Realty stocks rebound; DLF, Unitech up 3%Mumbai: Battered heavily in the past five trading sessions, shares of real estate companies on Monday rebounded in early trade on the bourses with DLF gaining over 3%. The country’s largest developer DLF Ltd surged 3.11% to a high of Rs362 in the intra-day trade on the Bombay Stock Exchange (BSE). Unitech also witnessed a high of Rs81.70, up by over 3% on the BSE. Shares of Indiabulls Realestate jumped nearly 4.71% at Rs210.80. Besides, HDIL gained 5.18% to a high of Rs324.85 in the morning trade on the BSE. Analysts feel investors are buying scrips which they had sold in the last few trading sessions in the hope that the prices will rise further. “The stocks are moving in the sideways zone and there is no substantial new buying of the scrip in the market,” SMC Global vice president Rajesh Jain said. Mirroring the gains in the sector stocks, the BSE Realty index moved up nearly 3% to 3,719.40 points. The index, which lost 6.34% in the past five trading sessions, witnessed heavy selling pressure after the Dubai debt repayment crisis unfolded on Wednesday. The BSE barometer Sensex moved up 295 points, or 1.77%, in opening trade at 16,927.97 points. Source: Home - Livemint.com | 29 Nov 2009 | 11:09 pm Economy may grow faster than forecast this fiscal: MontekNew Delhi: India’s economic growth forecast for the year to March 2010 may have to be revised upwards as data showed a faster expansion in September quarter, a top policy adviser said on Monday. Planning Commission deputy chairman Montek Singh Ahluwalia said there was no serious concern on inflation as of now and conventional monetary policy was unlikely to be effective in curbing food price rise. The economy grew by 7.9% in the quarter through September from a year earlier, shattering forecasts as stimulus measures boosted demand and manufacturing activity surged, data showed on Monday. “It is difficult to project what will happen in the rest of the year. But this performance does suggest that there may well have to be an upward revision in the GDP growth of 6.5% which has been projected so far,” Ahluwalia said referring to the forecast of prime minister’s panel. Source: Home - Livemint.com | 29 Nov 2009 | 11:05 pm India logs 7.9 percent growth in second quarterSigns of an upturn in the Indian economy were reinforced Monday with the official data on the country's gross domestic product (GDP) suggesting a 7.9 percent growth in the second quarter of this fiscal.Source: IndiaeNews.com: Business News | 29 Nov 2009 | 11:03 pm BJP's 12-hour shutdown hits life in West BengalThe Bharatiya Janata Party's (BJP) 12-hour shutdown to protest the rise in prices impacted life in several parts of West Bengal Monday with supporters stopping public transport, damaging private vehicles and blocking important roads.Source: IndiaeNews.com: Business News | 29 Nov 2009 | 11:02 pm Sensex rebounds up 295 points in opening tradeThe Bombay Stock Exchange benchmark Sensex recovered sharply by over 295 points in opening trade on fresh capital inflows by funds after the government said the Dubai crisis should not have any major impact.Source: HindustanTimes.com - Top Business News Headlines | 29 Nov 2009 | 10:53 pm Rupee up 25 paise at 46.39 a dollar in early tradeThe Indian rupee today strengthened by 25 paise to 46.39 against the US currency in early trade on hopes of fresh capital inflows into equity in line with firming trends on other Asian markets.Source: India Business News | Business News - Times of India | 29 Nov 2009 | 10:11 pm Sensex rebounds, up 295 points in opening tradeThe Bombay Stock Exchange benchmark Sensex today recovered sharply by over 295 points in opening trade on fresh capital inflows by funds after the government said the Dubai crisis should not have any major impact.Source: India Business News | Business News - Times of India | 29 Nov 2009 | 10:03 pm Asian markets rebound as Dubai debt fears recedeAsian shares rebounded today after a heavy sell-off in global equities last week, as the United Arab Emirates central bank moved to bolster its banking sector and calm fears over Dubai's debt problems. Source: HindustanTimes.com - Top Business News Headlines | 29 Nov 2009 | 10:01 pm Crashing start for CAT 2009 - Times of India
Source: Business - Google News | 29 Nov 2009 | 9:35 pm BBX India awaiting RBI nod for international tradeBarter and exchange services provider, BBX India, is awaiting an approval from the Reserve Bank of India (RBI) to start international trading in the country, a top company official said. Source: HindustanTimes.com - Top Business News Headlines | 29 Nov 2009 | 9:28 pm Ministers to urge free trade deal during WTO meetGeneva: Over a hundred ministers are gathering on Monday at a key World Trade Organization (WTO) conference, with developing countries set to urge a swift conclusion of negotiations on a global trade pact. On the eve of the meeting, developing countries issued a statement calling for “urgent action” on the Doha Round of talks for a trade liberalization accord, which have foundered since they were launched at the Qatari capital in 2001. While previous ministerial meetings have been venues for governments to make detailed offers and counter-offers, the World Trade Organization’s 153 member-states have decided that Doha is not officially on the agenda at the first gathering of its top decision-making body in four years. “The very fact that Doha is not on the agenda shows that a deal is not in sight,” said Romain Benicchio, a trade specialist with Oxfam. Ministers are instead expected to stress their overall commitment to completing the round, even though such pledges have been made over the years and deadlines repeatedly missed. The United States in particular will be under the spotlight. Brazil’s foreign minister Celso Amorim pointed in particular to “one country which is stopping us from moving forward,” in an apparent reference to the United States. Another Latin American diplomat was more explicit, saying: “We clearly lack an explicit position from one of the most important members of the negotiations. We are of course talking about the United States.” He added that the WTO ministerial meeting “should pressure” Barack Obama’s administration to take a deeper engagement on trade talks. Since the change in administration in the United States, the new US trade representative, Ron Kirk, has revealed little about the Obama team’s position on Doha. During a visit to Geneva in May, Kirk said WTO member states should consider a “new path” in order to get a swift conclusion. But since then, little progress has been logged. Occupied by domestic problems such as health care and the war in Afghanistan as well as a Democratic-led Congress largely hostile to trade liberalization, the United States is dragging its feet on putting concrete trade reforms on the table, said analysts. On the eve of the conference, Kirk said the United States was “playing a leadership role” at the WTO, and stressed that Washington remained committed to bringing the Doha Round to a close. World leaders have set a 2010 target to conclude the Doha process, launched in the Qatari capital in November 2001. With little progress in negotiations, WTO chief Pascal Lamy recently warned that “it will be difficult to get to 2010 without a serious acceleration of pace.” Source: LatestNews-Home - Livemint.com | 29 Nov 2009 | 9:18 pm Asian shares in cautious rebound, watching DubaiHong Kong: Asian stocks made a tentative recovery after last week’s steep sell-off over the Dubai debt crisis as investors nerves steadied on hopes that the fallout of a potential default will be limited. South Korean stock and currency markets received an additional boost from the government’s pledge to stay vigilant while a marginal pullback towards close at Wall Street also helped the recovery. The dollar resumed its weakening trend surrendering its gains against big currencies last week, while the yen retreated from a 14-year high hit last week. “Our feeling has been that this would not lead to contagion and that markets did not react rather nervously at the outset,” said who oversees about $11 billion as Asia-Pacific chief executive of RCM, a unit of Allianz Global Investors. In Seoul, vice finance minister Hur Kyung-wook said the government would maintain a daily monitoring system until the Dubai incident was resolved. South Korean markets have been especially sensitive to international financial instability mainly because the highly leveraged local banking system is heavily exposed to the global credit market situation. On Friday US stocks recovered slightly towards close after a slide of more than 2% at the open with the flight to less risky assets seemed to be subsiding. “The fall in US stocks wasn’t as bad as expected and that has lifted one of the biggest Dubai-related concerns, given that worries about that don’t seem to be as bad as they once were,” said Masayoshi Okamoto, head of dealing at Jujiya Securities. Financial markets shuddered last week after Dubai said it would ask creditors of state-owned Dubai World and Nakheel, the builder of its palm-shaped islands, for a standstill agreement as a first step toward restructuring billions of dollars of debt.. The MSCI index of Asia Pacific stocks traded outside Japan was up 2.3% while the Thomson Reuters index of regional shares was 2.2% higher. Leading the recovery were bank and construction shares, which were the big losers last week. The MSCI index of banking shares in Asia Pacific outside Japan was up 2.9% while the materials index was 2.7%. Japan’s Nikkei average, which hit a four-month closing low last Friday, was up 2.4% as the yen’s fall from a 14-year high against the dollar lifted exporters. Source: LatestNews-Home - Livemint.com | 29 Nov 2009 | 8:37 pm WTO holds first ministerial meeting in four yearsThe World Trade Organisation (WTO) begins its first ministerial meeting in four years Monday aimed at reviewing the work of the 153-member group. Source: HindustanTimes.com - Top Business News Headlines | 29 Nov 2009 | 8:17 pm IA pilots call off strike as management accepts demandsPilots of the erstwhile Indian Airlines have withdrawn their threat to go on strike from Monday after their union, Indian Commercial Pilots Association (ICPA), held talks with the management on Sunday.Source: India Business News | Business News - Times of India | 29 Nov 2009 | 3:22 pm Dubai World mulls options for repaymentDebt-ridden Dubai World is mulling over four options to repay its $59 billion credit and liabilities, media here reported.Source: India Business News | Business News - Times of India | 29 Nov 2009 | 12:49 pm Dalal St remains edgyIt would be a crucial week for the market when trading begins as investors will look for clarity from Dubai and Abu Dhabi.Source: India Business News | Business News - Times of India | 29 Nov 2009 | 12:45 pm Radiation leak is a ‘malevolent’ act, says KakodkarMumbai / Kaiga: In a shocking incident of sabotage, the Atomic Energy Commission (AEC) on Sunday said radioactive tritium was “deliberately” put in a water cooler at the high-security Kaiga nuclear power plant, exposing around 50 workers to increased levels of radiation. “Somebody deliberately put the tritiated water vials into a drinking water cooler. Therefore, we are investigating who is behind the malevolent act,” AEC chairman Anil Kakodkar said in Mumbai. Describing the incident as a serious operating procedure lapse, he said the people involved will be punished under the Atomic Energy and other Acts after investigation. In New Delhi, minister of state for atomic energy Prithviraj Chavan said an inquiry is already in progress. It has to be seen whether it was an act of a “disgruntled” individual, Chavan said, adding, “We will find answers soon.”  Probe initiated: Atomic Energy Commission chairman Anil Kakodkar. Scott Eells / Bloomberg The plant’s station director J.P. Gupta said on phone from Kaiga that during investigations one of the water coolers was found to be contaminated and, as a precautionary measure, body samples of all the persons working in the area were analysed; based on those results, a few were sent for medical consultation. He said Nuclear Power Corp. of India Ltd has launched a probe by an experts’ committee and the incident has also been reported to the intelligence department. Chavan said: “It was not a nuclear leakage accident, not even a nuclear incident, and not even a question of anything going wrong in the process of the nuclear power plant... I spoke to Dr Kakodkar, there is no need to panic.” Chavan said even if it was an act of a “disgruntled individual”, it has to be looked into and an inquiry is in progress. “We will find answers soon,” he said, adding: “I am told by the people inside that it is not a very serious contamination and the system will be cleared in a couple of days. But whatever has happened, has to be taken very seriously. We are, of course, worried about the safety of the individuals.” Chavan, however, gave an assurance that there won’t be any harm to the people who drank water from that particular cooler. “They are being looked after medically.” The minister said, prima facie, it looked like a deliberate act. “Now who was that person? How did the person get access, and was it somebody working in the laboratory, are the things being looked at.” Source: LatestNews-Home - Livemint.com | 29 Nov 2009 | 12:45 pm No Dubai impact on Indian economy: PMEACThe PMEAC chief, however, ruled out any impact of recent developments in Dubai on the country's economic activity. He said much of India's growth was driven by domestic demand and less on external factors.Source: India Business News | Business News - Times of India | 29 Nov 2009 | 12:37 pm Crude palm oil prices set to declineThe negative impact notwithstanding, the debt crisis in Dubai may have one positive effect, easing cost pressures as commodity prices fall.Source: India Business News | Business News - Times of India | 29 Nov 2009 | 12:34 pm Telecom players differ over spectrum cappingTelecom operators are divided on the cap that should be imposed on the spectrum held by them in a particular service area.Source: India Business News | Business News - Times of India | 29 Nov 2009 | 12:31 pm Taking stock for 29 Nov 2009Monday November 23, 2009 The Sensex climbed on Monday, November 23rd for a second day, led by commodity stocks after metal and oil prices rose. Telecom shares on the other hand took a tumble on concerns that the low fee enabling number portability would make it harder for companies to retain customers. The government set the fee at Rs19. Reliance Industries gained almost three and a half percent after it said it was buying bankrupt chemicals and fuel producer LydonellBasell. Tuesday, November 24, 2009 The benchmark index fell for the first time in 3 days, this time after lower metal prices led commodity shares downward, and as most other Asian markets declined. Auto stocks increased on expectations that auto companies would report higher sales this month. Car sales have risen for nine consecutive months on easier borrowing and lower interest rates. Tata Motors and Mahindra and Mahindra reached 52-week highs on Tuesday. Wednesday, November 25, 2009 The gauge advanced slightly on Wednesday. ACC led gains among cement producers, on expectations that higher prices of cement would help bridge the gap between the industry and the broader market. ACC has climbed 0.6% over the last 3 months while the Sensex has risen 9.6%. Satyam Computers plunged 11% after the CBI found that the company’s accounting fraud was 40% greater than previous estimates. Thursday, November 26, 2009 The Sensitive Index plummeted on Thursday on a combination of news including a rising US dollar, disappointing Tata Steel results, and Dubai’s debt problems, which raised fresh concerns about the global financial system. Stocks across sectors took a hit. Friday, November 27, 2009 Stocks took a dive on Friday, again reacting to the news of Dubai’s debt problems. Top gainers were Bharti Airtel, Hero Honda, Reliance Infrastructure, Grasim, and Tata Steel. Top losers included Jaiprakash Associates, Larsen & Toubro, Infosys, TCS, and Sterlite Industries. Barring the Healthcare index, which increased marginally, all other sector indices, ended the day in the red. Source: LatestNews-Home - Livemint.com | 29 Nov 2009 | 12:23 pm Air India pay nod averts pilots' strikeThe stand-off between Air India and Indian Commercial Pilots Association (ICPA), which represent the domestic pilots of erstwhile Indian Airlines, was resolved here today with the management agreeing to payment as per 5th day commission.Source: Business Standard | Front Page Headlines | 29 Nov 2009 | 12:12 pm North or South, TV viewers speak one languageIt wouldnt seem so, according to research showcased by TAM Media Research CEO L V Krishnan at Ficcis southern version of FRAMEs in Chennai last week. Both markets consume TV in roughly the same way lots of soaps, an increasing appetite for reality shows combined with a ravenous hunger for films.Source: Business Standard | Front Page Headlines | 29 Nov 2009 | 12:09 pm Revised Copyright Act to pinch broadcasters' pocketsBroadcasters may be forced to shell out Rs 1-1.5 lakh for every song that is sung by the contestants in musical talent hunt shows like Indian Idol or Sa Re Ga Ma Pa, and they are not liking it at all.Source: Business Standard | Front Page Headlines | 29 Nov 2009 | 12:07 pm Funds see short-term pain, but long-term gainThe mutual fund industry sees the series of recent regulatory measures as a game-changer something that has prompted it to think out of the box on increasing the penetration from the existing 4-5 per cent of household savings.Source: Business Standard | Front Page Headlines | 29 Nov 2009 | 12:05 pm ONGC close to big oil findThe Oil and Natural Gas Corporation (ONGC) has found traces of a new oil reserve in Gujarat which could increase the companys total onshore oil production by about 20 per cent.Source: Business Standard | Front Page Headlines | 29 Nov 2009 | 12:03 pm More affordable houses, but not enough buyersAfter the euphoria, affordable realty developers are faced with the reality of excesses.Source: Business Standard | Front Page Headlines | 29 Nov 2009 | 12:01 pm Mutual funds open NSE shop windowMumbai: Beginning Monday, investors will be able to buy and redeem open-ended mutual fund (MF) schemes on the National Stock Exchange (NSE) through a stockbroker, the same as with equity. Following a framework for MF transactions issued two weeks ago by market regulator Securities and Exchange Board of India, or Sebi, the country’s largest stock exchange will launch a platform that will enable such trades. The Bombay Stock Exchange, Asia’s oldest bourse, is expected to follow suit soon. Units will also be available in dematerialized, or demat, form, but for those who do not have a demat account or do not wish to open one, the platform will enable physical delivery of units. At present, investors can only buy MFs either from a distributor or directly from mutual fund houses. A few online portals also sell these units. Also See Game Changer (Graphics) The exchange platform will be a critical additional distribution channel for the Rs7.2 trillion Indian MF industry, which has had to rework its selling strategies after Sebi banned entry loads on MF transactions, effective 1 August. Entry loads are charges that MFs collected from investors at the time of investment and eventually used to pass on to agents as their commission. Limited incentives doled out to distributors have resulted in negative sales for the industry for the past four months. A.P. Kurian, chairman of the Association of Mutual Funds in India, or Amfi, an industry body, described the initiative as path-breaking (see interview). However, this is not the first time MFs will be available on stock exchanges. Zurich Mutual Fund, later acquired by HDFC Mutual Fund, started offering five of its schemes— Equity Fund, Top 200 Fund, Capital Builder Fund, Prudence Fund and Tax Saver—on NSE beginning November 2000, making it the first MF in India to offer its open-ended schemes on an exchange. IDBI MF, later Principal MF, followed in May 2001 by offering its Equity, Growth, Balanced, Income and Tax Savings schemes. Both were withdrawn because of the poor response. This time, say experts, the exchange, with its 200,000 terminals across 1,500 locations, will help expand the reach of MFs, allowing fund houses to concentrate on performance rather than sales functions. “The emphasis will now shift to performance as it has become difficult to gather assets through marketing efforts,” said Sandip Sabharwal, chief executive officer (CEO) of PMS (portfolio management services), Prabhudas Lilladher Ltd, who was a fund manager at leading mutual funds for at least a decade before moving to PMS last year. Sundeep Sikka, CEO, Reliance Capital Asset Management Ltd, which manages Rs1.16 trillion, said it’s a step in the right direction. “Having both offline and online options for investors makes it more efficient and definitely increases reach. In the long term, this will help all parties,” he said. Jaideep Bhattacharya, chief marketing officer, UTI Asset Management Co. Ltd, said: “The platform will take care of the back-end work of the sales staff and free up more time for transactions.” Currently, he pointed out, an agent in the Mumbai suburb of Ghatkopar must dispatch applications by 11.30am or noon so that the office in downtown Mumbai can process them and make sure that the investor gets the same day’s NAV (net asset value). With the new system, an agent will be able to make transactions up to 2.59pm. The cut-off time for same-day NAV is 3pm for equity funds. Ayes and nays Brokers, naturally, are thrilled at the new opportunities for revenue generation. Raamdeo Agrawal, managing director, Motilal Oswal Financial Services Ltd, a large retail brokerage, called the move “exciting” and said it was common sense, but declined to estimate the growth of inflows. “The point of sale for distribution of MF units gets pushed up by leaps and bounds so fast and easily,” he said. Motilal Oswal has 1,500 outlets, many of which retail MFs but did not have trading terminals to do so. “Now these branches can leverage on the strength of our terminals and get their clients’ orders executed. At the end of the day, this will be a one-stop shop for MFs and stocks,” Agrawal said. However, the trading platform will likely not be an overnight game changer. “The platform will evolve over a period of time; it’s not going to immediately reach at a level where you’d think substantial business is being generated,” cautions Mayank Shah, CEO (retail business), Anagram Stockbroking Ltd. “With this facility, brokers will also provide the value-added services such as helping the investors to choose funds, switching, dilute, exit and so on.” Agrawal also feels that small-ticket investors will benefit. “There are few places that a small retail investor—with an amount of Rs1-2 lakh to invest in MFs can go to. The adviser may not entertain him and at best provide ‘courier’ service,” he said. “Now that MFs will be traded on the stock exchange, the investor gets a little bit of stock trading and at the same time can get some investments done in MFs, under one roof.” In other words, a single demat account statement will be able to consolidate direct equity as well as MF holdings. Investors in MFs that already have demat accounts will now be eligible to make transactions but will need to open a broker’s account first. For the MF distributor community, which is already hurting from the ban on entry loads, the move is a setback. Distributors that do not have NSE trading terminals will first need to become sub-brokers for an existing broker who has access to the MF NSE platform. Distributors are concerned because they will need to share client details with the broker. Also, a section of MF distributors—especially those that do not have trading terminals or are not sub-brokers or brokers—say that by allowing stockbrokers to sell MFs, their own incomes will take a hit. Limited choice To begin with, only 30 schemes (equity- and debt- oriented) of UTI Asset Management will be available, as other asset management companies (AMCs) are yet to sign up with NSE. Fund houses will have to enter into an agreement with the exchange/clearing corporation and notify the schemes that will be traded on this platform. Top officials at Reliance Capital Asset Management, JM Financial Ltd and Mirae Asset Global Investments (India) Pvt. Ltd said on condition of anonymity that they are yet to complete formalities and are assessing operational and business issues. Many smaller AMCs are also still evaluating the prospects of getting into this channel. Further, very few brokers, among them Anagram Stockbroking, Geojit BNP Paribas Financial Services Ltd and Bonanza Portfolio Ltd, will offer MFs to their clients through the NSE exchange platform. Also, only stockbrokers that are registered with Amfi as mutual fund advisers and who have signed up with specific AMCs will be eligible to participate in the system. They will also not have to go through the Know Your Customer norms’ verification again. A fully-automated online order collection system, called NEAT-MFSS, will be provided to “participants” who can use their existing telecom network to connect to the system and enter requests for subscription and redemption of MF units. Hiccups One key issues according to Rajesh Krishnamoorthy, CEO, Fundsupermart.com, an MF portal, is of brokers getting Amfi registration numbers. “At present, out of the 94,000 Amfi registered agents, only around 600 are shares and securities firms. Many of these firms are already selling mutual funds through their distribution arms.” But brokers argue that this should not be a big issue as the Amfi registration only requires clearing an examination. Also, with mis-selling rampant—coupled with the fact that many brokers tend to churn their client’s portfolio—it remains to be seen how well the brokers advise their clients and whether they will encourage churning or genuine long-term investment. Suresh Sadagopan of Ladder 7 Financial Advisories, a Mumbai-based financial adviser, said the move is a U-turn from an earlier Sebi move to switch to an advisory model. “Brokers are going to charge fees at the time of buying as well as selling. Some brokers charge up to 80 basis points. This will only increase churning. I am not sure how this will be cheaper than the existing model,” he said. Ranjit Dani of Think Consultants, a Nagpur-based financial advisory firm, welcomed the move but worried about the quality of advice, calling it “doubtful”. “Typically, the model of the broker is to churn customer’s money. Brokers make 5-7 paise on a transaction, but they entice you with tips and make you trade so many times that they end up (charging) 5-7% in brokerage,” he said, expressing concern that the move might lead genuine long-term investors to start behaving like traders. There is no clarity on whether the NSE platform will allow systematic investment plans and systematic transfer plans. National Securities Depository Ltd (NSDL) is looking at making changes to its system to be more relevant for mutual fund units. “At present, share prices are quoted in rupees-paise. For this, the NSDL system supports only up to three decimal points. But mutual funds declare asset values which go up to four decimals. In some debt funds, missing out a decimal can result in huge difference in returns,” said Krishnamoorthy of Fundsupermart, warning that unless the system was fixed, most funds with four decimals could be left out. n.subramanian@livemint.com Source: LatestNews-Home - Livemint.com | 29 Nov 2009 | 11:18 am DIAL may get more from land than expectedNew Delhi: The Ltd-led Delhi International Airport Pvt. Ltd (DIAL), which is modernizing the Indira Gandhi International Airport, may raise Rs1,300 crore from the sale of 45 acres to developers, a jump of 42% from the Rs912 crore it had expected from the same parcels in January. The proceeds from the prime real estate south of Delhi are key to the funding of the project and a greater-than-expected amount from the sale could reduce the burden on passengers. Travellers are now paying Rs1,827 crore directly to fund the project by way of a so-called airport development fee levied on each ticket. “There is an improvement. We expect, because the market has picked up slightly, 10-20% better realization than what we achieved in the first eight (parcels),” said Sidharth Kapur, chief financial officer (airports), GMR Group, the majority stakeholder in both Delhi and Hyderabad airports.  Photo: Ramesh Pathania/Mint; Graphics: Sandeep Bhatnagar/Mint In January, DIAL sought to levy a development fee on passengers to bridge the funding gap in the at least $2 billion (Rs9,360 crore) project that is scheduled to be completed in March. The assessment had shown a realization of Rs912 crore from the sale to hotels and commercial developers. “We are expecting about Rs500 crore for the remaining,” Kapur said, adding that of the five parcels, at least three will be given out to hotels and two for commercial development. Hotel chains such as Accor Hotels, Bird Group-Dusit Thani Group and the Lemon Tree Hotel Co. have bid aggressively and won, Kapur said. Besides, another reason for the prices going up includes the airport operator’s division of parcels into smaller plots. The lease agreement for these plots includes a fixed security deposit for three years and an annual licence fee that would increase at least 5.5% every year for the lease duration of 57 years. The airport operator will submit its final cost of development to the Airports Economic Regulatory Authority, or Aera, by end-January, including the additional funds garnered from the land sale. The development fee is likely to be reviewed after this cost is submitted. However, since the first phase of the airport expansion ends in March, DIAL does not expect to lease out any more land any time soon. It is allowed to use 250 acres of the 5,000 acres for commercial development. “We don’t want to monetize everything right now because the market also needs to absorb it,” Kapur said. For the rest of the commercial area, “we will have to wait for the opportune time”, he said. Besides DIAL, GMR Group runs GMR Hyderabad International Airport Ltd and Sabiha Gökçen Airport, Istanbul’s second airport, which it’s developing with a Turkish consortium led by Limak Inc. and Malaysia Airports Holdings Bhd. Airports contributed 30% to its revenue for the fiscal ended 31 March, next only to its power business, which contributed 53.21%. The Hyderabad airport garnered Rs382 crore and the Istanbul airport Rs270 crore. DIAL, whose other consortium members include Frankfurt airport operator Fraport AG, a unit of Malaysia Airports Holdings, the Airports Authority of India and private equity firm India Development Fund, contributed the biggest chunk of Rs507 crore in the last fiscal, up from Rs468 crore the previous year. Delhi airport’s integrated Terminal 3, with a capacity to handle 34 million passengers and spread over 5 million sq. ft, will be commissioned in July, bringing to an end the development that started in late 2006. The construction work is expected to be over by March-end, and will be followed by systems testing till April. Delhi airport handled 23.4 million passengers in the last fiscal year and is served by 70 domestic and international airlines connecting at least 110 destinations across the world. With the opening of the new terminal, all domestic and international passengers will use the same integrated facility. Currently, operations are split between domestic and overseas terminals. Source: LatestNews-Home - Livemint.com | 29 Nov 2009 | 11:07 am Quick Edit | A money-spinning operationIn India, it is money and not revolution that flows from the barrel of a gun. If Chhattisgarh’s police chief Vishwa Ranjan is to be believed, Maoists in different parts of India extort as much as Rs2,000 crore annually from businesses. Most of it comes from iron ore and coal dealers, road contractors and tendu leaf suppliers. Rajan said that of this amount, roughly 20% is siphoned off by low-ranking outlaws, and the remaining 80% goes to the Maoist top brass. Given that investments in weapons, publications for propaganda and other assorted equipment cannot account for more than a couple of hundred crores, this is a phenomenal return on invested capital. There are, of course, a few hiccups. There is risk of death to those in the business, and the trade is unlawful. That apart, the lesson here is that absence of transaction costs, bureaucracy and taxes mostly has turned a small investment into a money-spinner. Imagine what legitimate businesses could do if the government did not intrude. Source: LatestNews-Home - Livemint.com | 29 Nov 2009 | 11:04 am The future of US & Wall St is bright: Buffett, Gates New York: The US economy should brace itself for the aftershocks of the unprecedented government stimulus. But the future of the US and Wall Street is bright. That’s the word from the Oracle of Omaha, Berkshire Hathaway Inc. chairman and chief executive Warren Buffett, and Microsoft Corp. chairman Bill Gates, even as they take a trip down memory lane at New York’s Columbia University and talk about their message to the students of today, and about how the world has changed since they walked through the corridors of education. Edited excerpts:  Campus talk: Berkshire Hathaway chairman and chief executive Warren Buffett (left) and Microsoft Corp. chairman Bill Gates. Photographs: Andrew Harrer / Bloomberg and Daniel Acker / Bloomberg We will start talking about being back on campus. What does it mean for you? Buffett: Been a long time. This place does have pleasant memories because both (professor Benjamin) Graham and (professor David) Dodd, and they are the reason I came to Columbia, they both treated me so much better as an individual. I’d learnt from them intellectually already when I read the books and all that, but Dodd treated me like a son. He would take me out for dinner and Graham took a great interest. And that was just terrific for a 19-year-old kid. When you come back to campus on a day like today, is it different, is it the same? Buffett: They have added a lot of building and this building wasn’t here. We should go across the street about a block away and look at my $10 (Rs468) a month room. Is that still here? Buffett: It is still here. There is an apartment house there and, I forget, I believe I was on the sixth floor there and I had the maid’s room and paid $10 a month. Do you ever regret leaving? Do you ever wish that you had stayed through? Gates: Being in school is a lot of fun because there are other smart kids around; some of the classes teach you something. But I had something I thought was urgent. So I didn’t leave school because I didn’t enjoy it; it’s a great time in people’s lives. So you think people should take advantage? Gates: I always say that unless you have some unbelievable opportunity you should stay and graduate. I know that you spent a lot of time in focusing and studying on all kinds of things including diseases that are going around in the world and I am dying to ask you a question—would you have your kids get the H1N1 vaccination? Gates: Sure. As that becomes available, I think everybody should have it. There are concerns from a lot of parents—it’s a brand new thing but it’s the same sort of vaccination process that we have used for over 60 years. Gates: This one doesn’t pose any particular new risks. All medical things have a small degree of risk in them, but the benefit is quite strong. While we are talking about healthcare, we are talking about a nation that is considering a massive shift and how our healthcare is run. Do you think it’s headed in the right direction? Buffett: I think the emphasis has gotten over on the payment mechanism and all that. In terms of making a basic change in the fee for service, I do not think we have made the most of the opportunity if we are going to tackle healthcare. I do not think what’s happening in hospitals, what’s happening in doctors’ offices and what is costing us 16% of GDP (gross domestic product), is going to change dramatically. The argument has gotten off way more in terms of whether insurance companies should do it or how they should be handled. So we may be missing an opportunity. Would you agree with that? Gates: Absolutely, healthcare is important, it is great it is getting some focus. But the idea of how you make it more efficient has got almost no discussion. And we are going to have to discuss that at some point. It’s a problem. The incentive system is not appropriate and so we actually spend a lot more than many other countries and yet the results we get aren’t a lot better. Is it worse though to stay with the status quo or to maybe adopt a Bill that is less than perfect? Gates: Once I get through the 1,900 pages, I will let you know. Buffett:That is more of a question for political scientists. In other words, do you get five years from now a better result if you just enact almost anything and then start tinkering with it or will the nature of the bureaucracy and everything be such that you sort of get locked into something that will be sacrosanct for a long time? But, as Bill said, the incentives haven’t been changed... Is there much in the Bill to change how hospitals behave? Very little. Another 20% or something goes just into doctors’ offices. Does a doctor have much incentive to behave differently under this? Not so much. So I would have loved to have seen some of the top minds like George Halvorson at (healthcare organization) Kaiser Permanente, those people just sit in a room for a few weeks and say, how do we really incentivize people throughout this system to do things for people that will make them healthier and probably get rid of a lot of the cost. When you were looking around, getting a feel for the campus, when you were here there weren’t a lot of women on the campus, were there? Buffett: At the business school, when I was at Columbia, my memory is, and I think I am right on this, there was one woman in the class, Maggie Shanks. I was looking for a school, actually, where I was going to be the only boy. So this was really quite a disappointment. 1776, they said all men are created equal and all that, but in 1951 there was one woman in the class of the Columbia Business School. Fortunately, it has changed a lot since then. Was she a good student Buffett: I remember what she looked like but don’t remember her grades. There maybe a little rivalry between you two from time to time, you remember the school song here? Buffett: We own New York, who owns New York, so people say. We own New York, we own New York, who? Columbia. Do you want to sing Harvard’s? Gates: No, I wouldn’t sing it well, either musically or in terms of having encountered it. We were talking about healthcare and one of the issues people worry so much about is when do you start focusing on the deficit, when we start worrying about spending, is there a point where you just say too much? Buffet: We have done extraordinary things and applied extraordinary dosages of things that we have done in the past to pull this country out of the financial panic like, virtually, it’s not as ever seen, but the right thing to do in a general way, but with unprecedented dosages you get unprecedented after-effects, and we are quite likely to, and they won’t necessarily be welcome after-effects. But that was still a right decision, to apply that much medicine, but we can’t do what we are doing fiscally for a long period of time without having a real impact on inflation, on the dollar and a lot of unprecedented after-effects. You said when you bought Burlington Northern (Santa Fe Railway) that this was a big bet on the future of America. Buffett: And I have no doubt about the future of America, look at Bill, that’s a good illustration that the country has a good future. People like Bill have been able to come into this US economy and work miracles and our system has allowed the potential of a Bill Gates to come out. Two hundred years ago, he would have been some dirt farmer or some blacksmith but we have a system that unleashes potential that is going to keep going that and you can bet on the future of America with enormous confidence. Do you think there could be another Bill Gates even at this school right now? Gates: Sure. Opportunities as science creates new frontiers, new businesses are being formed today that are going to save lives, make our lives better and make billions of dollars and that’s why the system is actually used by lots of other countries, so the US has set an example and still the best. Do you think that the future’s innovators are going to come from this country or are they going to come from some other imitator countries? Gates: That would be more of a mix... At the end of World War II, the US stood alone and since then other countries are getting their act together and contributing to global prosperity. Every new drug that is invented, every great new piece of software is beneficial. So the US would be at lead because our universities, our basic system is still the best, but others including China and India are coming along and they fixed some of the mistakes they were making, pretty extreme in the case of China, so they will be contributing, buying goods and being part of the economy. They may even shift some goods from Burlington Northern. What is the important fix that China has made that has helped them a long way? Gates: They have doubled the focus on education, their culture is always strong on that, but allowing them to be a market economy, letting people create businesses which, before 1979, they didn’t allow at all, but then gradually they opened it up and now they are a capitalistic country. At the heart of capitalism here, at Columbia in New York city, we talked about 50% of students who were here eventually go into financial services, some Wall Street type job. Is Wall Street going to be there for them after what we just went through the last year? Buffett: Yes Wall Street will be there for them... Wall Street is an integral part of the US economy and it should be at the centre, the real things that encountered developing these businesses and all but they need Wall Street. The Bill talks about these ideas coming from China and India; we should rejoice about that. I love the idea that the US is the home of much of this but it’s better, for the rest of the world is doing us. You made some comments about financial compensation on Wall Street. Is it in the right place right now? Gates: The compensation is very high... But it’s a very difficult thing to come in and regulate without potentially making things worse... Most of the approaches would actually cause problems. You have any ideas? Buffett: Well, the market’s system which overall works wonder for us and it’s a large part as to where we have got over the last couple of centuries. It does produce very unusual things in compensation. If you are a poor baseball player now in the Major League you are making 20 or 30 times or probably five times at least in inflation-adjusted terms as to what Babe Ruth (Major League baseball player from 1914-1935) made. But if you made money for other people, you get paid well, and if you are a great nurse, you don’t, and if you are a great teacher, you don’t. But if you are on a different spot, the market economy pays off like crazy, and Wall Street happens to be the place where it pays off crazy as the most. When did you guys cook up the idea to come to Columbia to meet with the students today? Gates: We have done something at the University of Washington. That was our first business school appearance. Then we went to Nebraska and...I thought since Warren was here, this will be a fun place to do a joint interview. How did you come up with the idea for the very first, though? Gates: A magazine had interviewed us jointly and we had a lot of fun with that. So I suggested the business school thing and Warren said he was game. There are a lot of people who don’t know you two, who may think that you are a little bit of an unlikely pair. Bill came up with an entire new innovation and created a whole new industry, and Warren, you don’t have an email account. How do you interact? Gates: Warren’s on the Internet playing bridge a lot, so this is his non-tech image and I would not want to damage it. Buffett: I am saving myself for the next big technological breakthrough, none of this is big enough for me yet, so I am waiting. Gates: He wants robots in his office so that he can get the head count down from 13 or 18. Buffett: But not below one. So you both care about education and you both care about students and their future, you both have given a tonne of money, so you both believe in philanthropy too. What else did you find in common, the first time you guys met? Buffett: We were the most terrible golfers and we share that; we have so much sober eating habits, he has his ways to go but we are in sync on most things. There are a lot of concerns about the independence of the Fed (US Federal Reserve), especially all these Bills that are moving through Congress right now. Do you worry about that? Buffett: I think there is nothing more important in the economic future of the country than to have an independent Fed and I think that has been demonstrated over the years; I think it was demonstrated particularly even last fall. You think the system is perfectly fine, (but) people are saying it’s an antiquated system... Buffett: Perhaps the regional banks are better adapted than 1911. I am not sure you need someone reporting from Longhorn and we tell him how is it going but in terms of its fundamental mission as a central bank, I think it’s done a good job over the years. I think it has had good leadership and terrific leadership and curbing the independence of the Fed could lead to a lot of mischief. cnbctv18@livemint.com Source: World Business - Livemint.com | 29 Nov 2009 | 9:11 am
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