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BHP, Rio iron venture plan might be reconsideredBHP Billiton and Rio Tinto might reevaluate plans to merge their Western Australian iron ore operations if an agreement is not reached by year end, the Wall Street Journal said on SaturdaySource: Moneycontrol Top Headlines | 15 May 2010 | 6:37 am Hauppauge soars on TV streaming app for iPad, iPhoneShares of Hauppauge Digital Inc soared as much as 60 % Friday, a day after the company said its products can now stream live TV over the internet for Apple\'s iPad, iPhone and iPodSource: Moneycontrol Top Headlines | 15 May 2010 | 3:55 am Greece pledges corruption clean-up of politiciansATHENS (Reuters) - The Greek government promised to clean up corruption among politicians to restore public trust, but does not want to destabilise political life in the country as it struggles with a debt crisis that has shaken the euro.Source: Reuters: Money News | 15 May 2010 | 3:45 am EBRD ups 2010 GDP emerging Europe forecast but recovery slowZAGREB (Reuters) - The European Bank for Reconstruction and Development (EBRD) on Saturday raised its 2010 economic forecast for emerging Europe to 3.7 percent, from 3.3 percent, despite expected slower growth in some economies.Source: Reuters: Money News | 15 May 2010 | 3:03 am Euro is not under attack, ECB’s Trichet saysBerlin: The euro is not under attack, European Central Bank president Jean-Claude Trichet was quoted on Saturday as saying, despite its fall to an 18 month low against the dollar. Europe found itself in the worst situation since World War Two and possibly since World War One, he said in an interview with Germany’s Der Spiegel magazine. But he described as “nonsense” any suggestion euro zone governments had forced the ECB to act this week, sending out a fatal signal on its independence and credibility. Trichet also called for a quantum leap in mutual monitoring of governments’ budgets by their euro zone peers, and said effective sanctions were needed for breaches of the Stability and Growth Pact that is supposed to limit budget deficits but has been widely disregarded. European governments bore responsibility for the euro’s slide rather than currency markets, Trichet indicated in the Spiegel interview. “It is not a question of an attack on the euro. It is to do with the public sector and hence to do with financial stability in the euro area,” he said. “It’s clear that the chief responsibility of Europeans is to take appropriate measures to counteract the current tensions in Europe.” The euro slid as far as $1.2358 on electronic trading platform EBS on Friday, the lowest since October 2008. Trichet has long urged euro zone governments to reduce their budget deficits and thereby prevent a steep rise in their debt. Failure of the Greek government in particular to take this advice led to a debt crisis that risked spreading to other euro zone countries with similar problems, and beyond. On Monday the ECB began buying government bonds issued by some euro zone governments, reversing its long-standing resistance to such moves to prop up the euro zone debt market. “This is nonsense” Trichet rejected a suggestion by Spiegel that the public had the impression it had been forced into action by euro zone governments, sending a fatal signal on its independence and credibility. “This is nonsense,” he said. “We take our decisions in complete independence and we have many times set ourselves against the heads of government.” Trichet also called for far better monitoring of euro zone government budgets. Under the Stability and Growth Pact these should run deficits of no more than three percent of GDP, although some countries have reached nearly four times that. Asked whether Greece should leave the euro zone, he said: “No, this is not an option. When a country enters monetary union, it shares a common fate with the other countries.” However, he added: “What we need is a quantum leap in mutual surveillance of economic policies in Europe. We need improved mechanisms to prevent and punish misconduct.” “We need an effective implementation of the mutual control, we need effective sanctions for breaches of the Stability and Growth Pact. The ECB calls here for profound changes.” Referring to the state of financial markets since the collapse of Lehman Brothers investment bank, he added: “Without a doubt, since September 2008 we have been in the most difficult situation since the Second World War, perhaps since the First. We have experienced and are experiencing really dramatic times.” Source: Home - Livemint.com | 15 May 2010 | 2:48 am Bangladesh lifts ban on Indian yarnIn a bid to help bring down the price of the textile raw material, Bangladesh has removed a ban on import of Indian yarn. The National Board of Revenue issued a notification late yesterday withdrawing the ban on import of Indian yarn through Benapole land port.Source: India Business News | Business News - Times of India | 15 May 2010 | 2:47 am Bangkok violence rages on; protesters, residents fearfulBangkok: Thai “Red Shirt” protester Sakda Sudtae stood guard at two-metre-high barricades made from bamboo, tyres and razor wire on Saturday, nervously fingering a slingshot on his belt. “I’m not sure what’s going to happen,” said the 33-year-old from northeastern Thailand, the morning after his anti-government group’s latest clashes with security forces left at least 16 people dead. “I’m afraid, but I have no choice. All of us are afraid to die,” he added. A burnt-out bus stood down the street outside the barricade. Soldiers have moved to seal off the area around the protest site, which sprawls across four kilometres (2.5 miles) of central Bangkok. AGunfire and explosions have rung out around the Red zone, where troops have stepped up security measures to search for weapons and reduce the number of people entering the area. A government spokesman Panitan Wattanayagorn said the lockdown had proved effective because the number of protesters at the main encampment had fallen to 6,000 on Friday night. Children and the elderly appeared to have left the area. One of the Red Shirts’ own “security guards,” 35-year-old Dang Thongyu from northern Thailand, blamed troops for the recent spike in violence. “We don’t mind being cordoned off like this. We’re happy to stay in here, but the military has to step back a bit. Instead, they’re moving in,” he said. “Both sides were testing one another and got closer and closer so inevitably, something happened,” he added. The barricade guards are the first line of defence for rallies that began in mid-March, inspired by a new political awareness among Thailand’s rural poor that has found increasing support among others displeased with elites. The Reds condemn the current administration of Prime Minister Abhisit Vejjajiva as illegitimate because it came to power with army support in a 2008 parliamentary vote, two years after a coup ousted populist prime minister Thaksin Shinawatra. Red guards, wary of snipers, on Saturday morning stretched black fabric to shield a footbridge over their barricades. On the bridge lay piles of energy-drink bottles and stones ready to be thrown at advancing troops. Reds have also stashed a bottle of motor lubricant and a bag of mung beans to make the road slippery. “With military boots, they will have problems,” said 42-year-old Somchai Sanwong as he manned the barricades, but acknowledged: “We are all very afraid.” “Obviously we’re outgunned, outnumbered. In the worst case, if the soldiers come, we’ll just burn the barricades,” he added. Their movement remained largely peaceful until 10 April when security forces failed in an attempt to disperse the protesters from the city’s historic district, leaving 25 dead and more than 800 injured. The Red Shirts then shifted their rally base to Bangkok’s upscale retail heartland, forcing mass closures of shopping malls and hotels. Fearful residents have left the area in the face of increased shootings and explosions. “All my tenants have moved out, temporarily. But for how long does this bloody thing go on?” said Prapa Smutkojob, owner of a pair of apartment buildings within the Red zone. Down from one barricade, inside the protest area, a handful of residents set up a small barrier of their own to prevent Reds from retreating down their side street. “When the military pushes people this way, they’ll look for a place to escape. We don’t want them here,” said 30-year-old resident, Piboon Lapchareen. “They come with weapons and inflammable things and the soldiers will come after them, so you can imagine what would happen,” he added. On the other side of the barricades, tyres and a garbage truck burned while gunfire rang out on Rama IV road. Ladda Monokalchamvat, 46, and her daughter were dragging suitcases with the help of a doorman. “I’m leaving my condominium. They’ve switched off all the lights and we don’t have any food. I’m moving to my parents’ place,” she said. “The last two nights have been the most dangerous. That’s why we’re leaving.” Source: Home - Livemint.com | 15 May 2010 | 2:43 am Euro is not under attack, ECB's Trichet saysBERLIN (Reuters) - The euro is not under attack, European Central Bank President Jean-Claude Trichet was quoted on Saturday as saying, despite its fall to an 18 month low against the dollar.Source: Reuters: Money News | 15 May 2010 | 2:37 am Goldman committee to review firm’s conflictsNew York: Goldman Sachs Group Inc said it is setting up an internal committee to look at how the company deals with potential conflicts of interest and how it can better disclose what it does. The biggest US investment bank said the committee will be headed by Gerald Corrigan, chairman of Goldman Sachs Bank USA, and Michael Evans, a vice chairman of the company. Goldman also named more than a dozen employees to the committee, which includes Arthur Levitt, a former chairman of the US Securities and Exchange Commission and a current advisor to the company. Goldman said last week at its annual meeting that it was setting up such a committee. On Friday, the bank said the committee would look at areas, including conflicts, disclosure, client relationships, structured products, and education and ethics. The US Securities and Exchange Commission sued Goldman last month for civil fraud, accusing the bank of failing to disclose key information to investors in repackaged mortgage debt. The Department of Justice has launched a criminal probe into the bank and other Wall Street firms are being examined, too. Since the SEC announced its probe, the company’s shares have fallen more than 20%. Goldman Sachs initially said the SEC’s charges were without merit and broadly disagreed with any charge that its behavior was improper. But after hours of questioning at a Senate subcommittee hearing in late April, Blankfein said: “Everything that’s been the subject of criticism will be tightened up.” Goldman is winding down one of its proprietary trading desks, a source familiar with the matter said earlier on Friday, in what may be an effort to reduce the risk it takes in structured finance. Goldman declined to comment. The desk trades collateralized loan obligations, or repackaged corporate loans, and is being merged with a desk that trades these instruments for clients, the source said. Goldman is buying the North American natural gas marketing operations of Nexen Inc, Nexen said earlier on Friday for an undisclosed sum. Goldman is the biggest commodities player among Wall Street banks. Source: World Business - Livemint.com | 15 May 2010 | 2:35 am Goldman committee to review firm’s conflictsNew York: Goldman Sachs Group Inc said it is setting up an internal committee to look at how the company deals with potential conflicts of interest and how it can better disclose what it does. The biggest US investment bank said the committee will be headed by Gerald Corrigan, chairman of Goldman Sachs Bank USA, and Michael Evans, a vice chairman of the company. Goldman also named more than a dozen employees to the committee, which includes Arthur Levitt, a former chairman of the US Securities and Exchange Commission and a current advisor to the company. Goldman said last week at its annual meeting that it was setting up such a committee. On Friday, the bank said the committee would look at areas, including conflicts, disclosure, client relationships, structured products, and education and ethics. The US Securities and Exchange Commission sued Goldman last month for civil fraud, accusing the bank of failing to disclose key information to investors in repackaged mortgage debt. The Department of Justice has launched a criminal probe into the bank and other Wall Street firms are being examined, too. Since the SEC announced its probe, the company’s shares have fallen more than 20%. Goldman Sachs initially said the SEC’s charges were without merit and broadly disagreed with any charge that its behavior was improper. But after hours of questioning at a Senate subcommittee hearing in late April, Blankfein said: “Everything that’s been the subject of criticism will be tightened up.” Goldman is winding down one of its proprietary trading desks, a source familiar with the matter said earlier on Friday, in what may be an effort to reduce the risk it takes in structured finance. Goldman declined to comment. The desk trades collateralized loan obligations, or repackaged corporate loans, and is being merged with a desk that trades these instruments for clients, the source said. Goldman is buying the North American natural gas marketing operations of Nexen Inc, Nexen said earlier on Friday for an undisclosed sum. Goldman is the biggest commodities player among Wall Street banks. Source: Home - Livemint.com | 15 May 2010 | 2:35 am First draft agreement unveiled at NPT conferenceUnited Nations: The first draft agreement designed to free the planet from nuclear arms was circulated here at a conference on the 189-nation Non-Proliferation Treaty (NPT). The draft, a copy of which was obtained by AFP, proposes a 26-point action plan to establish peace and security in a nuclear weapons-free world. It was prepared by Zimbabwe’s UN ambassador Boniface Chidyausiku. The proposal reaffirms the validity of NPT including Article VI, which commits nuclear states to eventually getting rid of these weapons. But it underlines that his should be done to a predefined calendar. It calls on nuclear states to begin talks no later than in 2011 with the aim of speeding up the nuclear disarmament process. That would lead to a 2014 UN conference to draw up a plan for the complete elimination of nuclear weapons, said the document. The five original nuclear weapon states -- Britain, China, France, Russia and the United States -- pledged to move towards disarmament. Non-weapon states forswore the bomb in return for access to peaceful nuclear energy. But since the treaty came into force in 1970, Israel, India, Pakistan, and North Korea have all acquired a nuclear weapons capability. Source: LatestNews-Home - Livemint.com | 15 May 2010 | 2:34 am Profit-booking trims initial gains over the week, Sensex up 225 pts - Hindustan Times
Source: Business - Google News | 15 May 2010 | 2:27 am Govt may decide on lifting wheat export ban after Rabi seasonThe Commerce Ministry today said it is considering lifting the ban on wheat exports after the Rabi marketing season (April-June). In early 2007, the government banned exports of wheat to augment domestic availability. Source: HindustanTimes.com - Top Business News Headlines | 15 May 2010 | 2:24 am BP scrambles to cap flow as oil closes in on marshPORT FOURCHON, La. (Reuters) - Energy giant BP scrambled on Saturday to make good on its latest attempt to contain oil from a ruptured wellhead in the Gulf of Mexico as the government approved the use of dispersants underwater, at the source of the seabed gusher.Source: Reuters: Money News | 15 May 2010 | 2:23 am Profit-booking trims initial gains over the week, Sensex up 225 ptsThe BSE benchmark Sensex failed to sustain initial sharp gains during the week and ended higher by 225 points, but below the 17,000-mark on profit-booking in select counters by investors amid doubts over the massive rescue plan for debt-ridden Greece. Source: HindustanTimes.com - Top Business News Headlines | 15 May 2010 | 2:21 am Govt may decide on lifting wheat export ban after rabi seasonThe Commerce Ministry today said it is considering lifting the ban on wheat exports after the Rabi marketing season (April-June). In early 2007, the government banned exports of wheat to augment domestic availability.Source: India Business News | Business News - Times of India | 15 May 2010 | 2:10 am Air India to join Star Alliance by March 2011Air India has set March 2011 as the outer deadline to join the Star Alliance, the world's largest commercial pact among carriers, chairman Arvind Jadhav said in Sao Paolo late Friday.Source: HindustanTimes.com - Top Business News Headlines | 15 May 2010 | 2:07 am Google ends WiFi collection, says mistakenly gathered personal dataWashington: Google is halting the collection of WiFi network information for its controversial “Street View” mapping service after admitting it mistakenly gathered personal data sent over unsecured systems. The Internet giant had insisted previously that it was only collecting WiFi network names and addresses with the Street View cars that have been cruising cities around the world taking photographs for the Google Maps service. “It’s now clear that we have been mistakenly collecting samples of payload data from open (ie non-password-protected) WiFi networks,” Alan Eustace, Google senior vice president for engineering and research, said in a blog post Friday.  A Google Street View car. Ralph Orlowski/Bloomberg The Mountain View, California-based Google said it will end the collection of WiFi network information entirely by the Street View cars which have been used in over 30 nations, and was taking steps to delete the private data. Street View, which is available for the United States and certain other countries, allows users to view panoramic street scenes on Google Maps and “walk” through cities such as New York, Paris or Hong Kong. WiFi network information allows Google to build location features into mobile versions of Street View such as directions or nearby restaurants. Amid concerns that thieves could use pictures of private houses to gain access and that photos of people were being published without their consent, Street View already blurs faces and car registration plates. The collection of WiFi network information by Street View, which began in 2006, has already come in for criticism, particularly in Germany. Eustace said a coding error was responsible for the collection of personal data sent by people over unsecured WiFi networks. Google did not specify what data was gathered but it could potentially include emails or details about which websites a person had visited, for example. Eustace said Google discovered that personal data had been swept up a week ago following a request to audit WiFi data from the Data Protection Authority in Hamburg, Germany. “As soon as we became aware of this problem, we grounded our Street View cars and segregated the data on our network, which we then disconnected to make it inaccessible,” he said. “We want to delete this data as soon as possible, and are currently reaching out to regulators in the relevant countries about how to quickly dispose of it,” Eustace said. “Given the concerns raised, we have decided that it’s best to stop our Street View cars collecting WiFi network data entirely,” he added. A Google spokesperson said about 600 gigabytes of personal information had been gathered, roughly the amount as in a standard computer hard drive. Eustace said the data was just fragments. “Because our cars are on the move, someone would need to be using the network as a car passed by, and our in-car WiFi equipment automatically changes channels roughly five times a second,” he said. “Maintaining people’s trust is crucial to everything we do, and in this case we fell short,” he said. “We are profoundly sorry for this error and are determined to learn all the lessons we can from our mistake.” John Simpson of Consumer Watchdog, an advocacy group that is a frequent critic of Google, said the company had demonstrated a “lack of concern for privacy.” “Its computer engineers run amok, push the envelope and gather whatever data they can until their fingers are caught in the cookie jar,” Simpson said. “The takeaway from this incident is the clear need for government oversight and regulation of the data all online companies gather and store,” he said. Jeffrey Chester, executive director of the Center for Digital Democracy, said “Google has placed data collection before user privacy -- the DNA of the company is to harvest data for online marketing. “Top management needs to ensure that privacy -- not data collection -- come first,” Chester said. Google said Street View cars have been collecting WiFi data in Australia, Austria, Belgium, Brazil, Britain, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary, Ireland, Italy, Japan, Luxembourg, Macau, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan and the United States. Source: Tech News - Livemint.com | 15 May 2010 | 1:47 am Google ends WiFi collection, says mistakenly gathered personal dataWashington: Google is halting the collection of WiFi network information for its controversial “Street View” mapping service after admitting it mistakenly gathered personal data sent over unsecured systems. The Internet giant had insisted previously that it was only collecting WiFi network names and addresses with the Street View cars that have been cruising cities around the world taking photographs for the Google Maps service. “It’s now clear that we have been mistakenly collecting samples of payload data from open (ie non-password-protected) WiFi networks,” Alan Eustace, Google senior vice president for engineering and research, said in a blog post Friday. A Google Street View car. Ralph Orlowski/Bloomberg The Mountain View, California-based Google said it will end the collection of WiFi network information entirely by the Street View cars which have been used in over 30 nations, and was taking steps to delete the private data. Street View, which is available for the United States and certain other countries, allows users to view panoramic street scenes on Google Maps and “walk” through cities such as New York, Paris or Hong Kong. WiFi network information allows Google to build location features into mobile versions of Street View such as directions or nearby restaurants. Amid concerns that thieves could use pictures of private houses to gain access and that photos of people were being published without their consent, Street View already blurs faces and car registration plates. The collection of WiFi network information by Street View, which began in 2006, has already come in for criticism, particularly in Germany. Eustace said a coding error was responsible for the collection of personal data sent by people over unsecured WiFi networks. Google did not specify what data was gathered but it could potentially include emails or details about which websites a person had visited, for example. Eustace said Google discovered that personal data had been swept up a week ago following a request to audit WiFi data from the Data Protection Authority in Hamburg, Germany. “As soon as we became aware of this problem, we grounded our Street View cars and segregated the data on our network, which we then disconnected to make it inaccessible,” he said. “We want to delete this data as soon as possible, and are currently reaching out to regulators in the relevant countries about how to quickly dispose of it,” Eustace said. “Given the concerns raised, we have decided that it’s best to stop our Street View cars collecting WiFi network data entirely,” he added. A Google spokesperson said about 600 gigabytes of personal information had been gathered, roughly the amount as in a standard computer hard drive. Eustace said the data was just fragments. “Because our cars are on the move, someone would need to be using the network as a car passed by, and our in-car WiFi equipment automatically changes channels roughly five times a second,” he said. “Maintaining people’s trust is crucial to everything we do, and in this case we fell short,” he said. “We are profoundly sorry for this error and are determined to learn all the lessons we can from our mistake.” John Simpson of Consumer Watchdog, an advocacy group that is a frequent critic of Google, said the company had demonstrated a “lack of concern for privacy.” “Its computer engineers run amok, push the envelope and gather whatever data they can until their fingers are caught in the cookie jar,” Simpson said. “The takeaway from this incident is the clear need for government oversight and regulation of the data all online companies gather and store,” he said. Jeffrey Chester, executive director of the Center for Digital Democracy, said “Google has placed data collection before user privacy -- the DNA of the company is to harvest data for online marketing. “Top management needs to ensure that privacy -- not data collection -- come first,” Chester said. Google said Street View cars have been collecting WiFi data in Australia, Austria, Belgium, Brazil, Britain, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary, Ireland, Italy, Japan, Luxembourg, Macau, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan and the United States. Source: World Business - Livemint.com | 15 May 2010 | 1:47 am Google ends WiFi collection, says mistakenly gathered personal dataWashington: Google is halting the collection of WiFi network information for its controversial “Street View” mapping service after admitting it mistakenly gathered personal data sent over unsecured systems. The Internet giant had insisted previously that it was only collecting WiFi network names and addresses with the Street View cars that have been cruising cities around the world taking photographs for the Google Maps service. “It’s now clear that we have been mistakenly collecting samples of payload data from open (ie non-password-protected) WiFi networks,” Alan Eustace, Google senior vice president for engineering and research, said in a blog post Friday. A Google Street View car. Ralph Orlowski/Bloomberg The Mountain View, California-based Google said it will end the collection of WiFi network information entirely by the Street View cars which have been used in over 30 nations, and was taking steps to delete the private data. Street View, which is available for the United States and certain other countries, allows users to view panoramic street scenes on Google Maps and “walk” through cities such as New York, Paris or Hong Kong. WiFi network information allows Google to build location features into mobile versions of Street View such as directions or nearby restaurants. Amid concerns that thieves could use pictures of private houses to gain access and that photos of people were being published without their consent, Street View already blurs faces and car registration plates. The collection of WiFi network information by Street View, which began in 2006, has already come in for criticism, particularly in Germany. Eustace said a coding error was responsible for the collection of personal data sent by people over unsecured WiFi networks. Google did not specify what data was gathered but it could potentially include emails or details about which websites a person had visited, for example. Eustace said Google discovered that personal data had been swept up a week ago following a request to audit WiFi data from the Data Protection Authority in Hamburg, Germany. “As soon as we became aware of this problem, we grounded our Street View cars and segregated the data on our network, which we then disconnected to make it inaccessible,” he said. “We want to delete this data as soon as possible, and are currently reaching out to regulators in the relevant countries about how to quickly dispose of it,” Eustace said. “Given the concerns raised, we have decided that it’s best to stop our Street View cars collecting WiFi network data entirely,” he added. A Google spokesperson said about 600 gigabytes of personal information had been gathered, roughly the amount as in a standard computer hard drive. Eustace said the data was just fragments. “Because our cars are on the move, someone would need to be using the network as a car passed by, and our in-car WiFi equipment automatically changes channels roughly five times a second,” he said. “Maintaining people’s trust is crucial to everything we do, and in this case we fell short,” he said. “We are profoundly sorry for this error and are determined to learn all the lessons we can from our mistake.” John Simpson of Consumer Watchdog, an advocacy group that is a frequent critic of Google, said the company had demonstrated a “lack of concern for privacy.” “Its computer engineers run amok, push the envelope and gather whatever data they can until their fingers are caught in the cookie jar,” Simpson said. “The takeaway from this incident is the clear need for government oversight and regulation of the data all online companies gather and store,” he said. Jeffrey Chester, executive director of the Center for Digital Democracy, said “Google has placed data collection before user privacy -- the DNA of the company is to harvest data for online marketing. “Top management needs to ensure that privacy -- not data collection -- come first,” Chester said. Google said Street View cars have been collecting WiFi data in Australia, Austria, Belgium, Brazil, Britain, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary, Ireland, Italy, Japan, Luxembourg, Macau, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan and the United States. Source: LatestNews-Home - Livemint.com | 15 May 2010 | 1:47 am Obama slams oil firms for spillWashington/Port Fourchon, La.: US President Barack Obama on Friday slammed the companies involved in a massive Gulf of Mexico oil spill as BP Plc readied a siphoning system to contain a growing environmental disaster. Obama applied further pressure on the companies involved in the unfolding drama, criticizing them for a “ridiculous spectacle” of publicly trading blame over the accident in his sternest comments yet on the situation. With oil gushing unchecked from a blown-out well a mile (1.6 km) under the Gulf of Mexico, London-based BP began work on its latest short-term fix -- a tube that undersea robots will try to insert into a pipe to funnel oil to the surface. The device could begin siphoning oil late Friday, BP chief operating officer Doug Suttles said. The energy giant’s prior attempt to contain the oil -- a giant containment dome -- failed last week after the appearance of frozen hydrocarbons rendered it useless. The so-called riser insertion tool is “the best option, the most likely option to combat” the frozen hydrocarbons, Suttles said. If short-term efforts fail, it will take BP about 90 days to permanently cap the leak with a relief well. Shares of companies involved in the disaster, including BP, have taken a big hit in recent days, but now other firms that make a living in the Gulf of Mexico’s oil-rich waters are starting to feel financial pain. The US Department of the Interior issued a moratorium on new drilling permits at least until 28 May when a safety review is due to be completed. But now, analysts and investors are beginning to fret future implications of the ban. In comments after a meeting with his Cabinet to discuss efforts to stop the spill and minimize its impact on US Gulf Coast communities, Obama said he was angry and frustrated about the spill, which threatens an ecological and economic disaster in the Gulf region. “I did not appreciate what I considered to be a ridiculous spectacle during the congressional hearings into this matter. You had executives of BP and Transocean and Halliburton falling over each other to point the finger of blame at somebody else,” Obama said. Obama was referring to testimony this week in Congress by leaders of the three companies involved in the disaster -- BP, Halliburton and Transocean Ltd. None of them took responsibility for the spill, blaming each other instead. BP must pay Fisheries and tourism, two of the Gulf Coast’s economic mainstays, along with birds, sea turtles and other wildlife, are threatened by the spreading slick. As National Guard crews pressed on with efforts across southern Louisiana to fill in shoreline breaches to keep oil out of the state’s vital marsh system, idled shrimpers continued to look for alternative employment. “I’m going to try to get a job with my cousin part time,” said Michael Gros, 51, a shrimp boat owner and captain. The accident also could cripple attempts in Washington to overhaul US energy policy. Obama repeated a demand that BP must pay for the spill’s cleanup and other economic impact on the Gulf region but said the US government would use “every available resource” to stop oil from coming ashore. He said he would not “rest or be satisfied” until the leak was stopped at its source. “We absolutely understand and share President Obama’s sense of urgency over the length of time this complex task is taking,” BP chief executive Tony Hayward said in a statement. The spill began after an 20 April explosion on the Deepwater Horizon rig, which killed 11 workers. It threatens to eclipse the 1989 Exxon Valdez spill off Alaska to become the worst ecological disaster in US history. The tone of Obama’s Rose Garden comments were his sternest yet on the catastrophe. In the aftermath of the spill, the Obama administration was faulted by some for the speed of its response, with some drawing comparisons to Hurricane Katrina in 2005. The White House rejects the criticism, and Obama’s visit to Louisiana on 2 May to meet with local officials and residents helped to dampen it. But as the leak begins to move ashore, the administration wants to head off any potential political fallout, especially with congressional elections looming in November. Obama also said he directed US interior secretary Ken Salazar to undertake a “top-to-bottom” review of the Minerals Management Service, the federal agency that oversees offshore drilling. On Tuesday, Salazar announced that the agency will be split in order to separate the collection of oil royalties from safety inspection duties. “For too long, for a decade or more, there’s been a cozy relationship between the oil companies and the federal agency that permits them to drill,” Obama said. A US House of Representatives panel on Friday launched an investigation into possible oversight failures by the federal regulator of offshore drilling. A six-month halt in new drilling would defer as much as 80,000 barrels (3.4 million gallons/15.9 million liters) of oil equivalent per day, or 4% of projected production in the Gulf of Mexico in 2011, according to energy consultancy Wood Mackenzie. “Longer term, after the moratorium is eventually lifted the cost implications of this accident on future drilling could prove significantly detrimental for the industry,” research firm Raymond James said in a note to clients on Friday. A US lawmaker on Friday urged BP to provide more information about how much oil is gushing from its ruptured well, noting that estimates range from 5,000 barrels per day (210,000 gallons/795,000 liters) to 100,000 barrels (4.2 million gallons/15.9 million liters) per day. Democratic representative Edward Markey said the public deserves to know exactly how much oil will end up in the ocean and ultimately on US coastlines. BP, whose shares have tumbled and wiped out $30 billion of market value since the April 20 rig fire, has said the oil spill had cost it $450 million so far. BP shares dropped more than 3% in London on Friday. BP defended its lower spill estimate of 5,000 bpd. “I think that’s a good range,” Suttles said on CNN. “I don’t know the precise number, but I think it’s somewhere around that number.” Source: LatestNews-Home - Livemint.com | 15 May 2010 | 1:46 am Goldman committee to review firm's conflictsNEW YORK (Reuters) - Goldman Sachs Group Inc said it is setting up an internal committee to look at how the company deals with potential conflicts of interest and how it can better disclose what it does.Source: Reuters: Money News | 15 May 2010 | 1:42 am NALCO Q4 net profit jumps five-fold to Rs 391 crState-run National Aluminium Company Ltd (NALCO) today said its net profit registered a jump of nearly five-fold to Rs 391.48 crore for the fourth quarter ended March 31, 2010.Source: HindustanTimes.com - Top Business News Headlines | 15 May 2010 | 12:55 am US stocks sport gains despite European fearsNew York: Rising fears that eurozone debt may drag the euro to the brink of collapse roiled markets this week, but US stocks managed to deliver weekly gains. After a tumultuous five sessions dominated by Greece’s debt crisis and European efforts, the Dow Jones Industrial Average finished Friday 2.31% higher from a week ago, at 10,620.16. The springboard for the positive finish, snapping two straight weekly losses, was Monday’s Dow rally of almost 4% on news the European Union and International Monetary Fund had agreed a trillion-dollar eurozone rescue. The other major US indices also ended the week with solid increases. The tech-heavy Nasdaq composite index leaped to 2,346.85, a 3.58% rise from a week ago. The S&P 500, a broader measure of the stock market, rose 2.23% to 1,135.68. By the end of trading Wednesday, the market had clawed back the prior week’s heavy losses, including the 6 May “flash crash” of almost 1,000 points in intraday trade that upended global markets. But this week’s gains hardly reflected the sour mood hanging over Wall Street on Friday, when the Dow fell 1.51%. “By and large, Friday’s trade was one where returns were measured not in terms of what was up the most, but rather what was down the least,” said Patrick O’Hare, chief market analyst at Briefing.com. Illustrating the hammering, O’Hare pointed out the S&P 500 had dropped 3.0% over Thursday and Friday, including a 1.9% decline on Friday “that was a byproduct of concerns related to Europe’s difficulties.” The euro on Friday sank to 18-month lows against the dollar, nearing levels seen after the Lehman Brothers collapse in 2008 triggered a financial meltdown and global recession. The stronger dollar weighed on dollar-priced commodities like oil, while financial stocks slid as investors weighed their exposure to the European debt crisis and its potential negative impact on the eurozone’s fragile recovery. “Traders continue to grapple with the spending cuts required in the eurozone to reduce deficits, weighing on the growth outlook for both Europe as well as the global recovery,” Charles Schwab & Co. analysts said in a note to clients. Positive US economic reports Friday on retail sales and industrial production were overshadowed by the market’s focus on Europe. Investors next week will have a batch of indicators to digest, including data on inflation, with producer prices due out Tuesday and consumer prices Wednesday. On Wednesday the minutes of the 27-28 April meeting of the Federal Reserve’s policymakers will be released. Investors are expected to pore over the Federal Open Market Committee minutes for clues on the outlook on the economy and monetary policy. “We look for the April FOMC minutes to show greater confidence among participants about the strengthening economic recovery, as reflected in the more upbeat description of household spending and labor market conditions” in the panel’s statement, Barclays Capital analysts said in a client note. The minutes would also provide updated FOMC forecasts, they said. “We expect the FOMC to modestly raise its growth forecasts for 2010.” Among other key data next week will be April housing starts and building permits on Tuesday, providing a view of the troubled real-estate sector, and the forward-looking leading economic indicators index on Thursday. “There are a couple of important facets to the data docket in the coming week, although the financial market focus of late appears to be drifting back toward developments in Europe,” Joseph LaVorgna, chief US economist at Deutsche Bank Securities. Source: LatestNews-Home - Livemint.com | 15 May 2010 | 12:30 am Revenue from 3G auction now over Rs.62000 crore - Economic Times
Source: Business - Google News | 15 May 2010 | 12:17 am Aban Offshore keeps contract hopes aliveThe Pearl may be gone, but Aban Offshore is trying its best to salvage theSource: Business Line - Home Page | 15 May 2010 | 12:00 am 2G prices: Vodafone urges Raja to reject TRAI planVodafone Essar has shot off a letter to the Ministry of Communication seeking an outright rejection of the proposals made by the Telecom Regulatory Authority ofSource: Business Line - Home Page | 15 May 2010 | 12:00 am Mukesh Ambani sees crude oil crossing $100-mark soonMr Mukesh Ambani believes that crude oil will cross the $100-a-barrel-mark in the near future while $80-100/bbl will be the norm in today'sSource: Business Line - Home Page | 15 May 2010 | 12:00 am Sensex sheds 271 points on Europe worriesDomestic stocks slumped on Friday, tracking the European markets where persisting sovereign debt problems in the Euro-zone countries led to a fresh fall.Source: Business Line - Home Page | 15 May 2010 | 12:00 am Higher provisions drag SBI net 32%Dragged down by higher provisions towards bad loans, wage revision and pension, State Bank of India posted a 32 per cent drop in net profit on a standalone basis at Rs 1,867 crore for the fourth quarter ended March 31, 2010, against Rs 2,742Source: Business Line - Home Page | 15 May 2010 | 12:00 am SEBI panel recommends higher net worth for market intermediariesA SEBI committee for review of eligibility norms (CORE) for various market intermediaries has recommended increased minimum net worth for market intermediaries, including asset management companies, brokers and merchantSource: Business Line - Home Page | 15 May 2010 | 12:00 am TV production houses hope for a big catch on the NetAfter IPL-3 on YouTube and movie premieres, it's now the turn of television production houses to launch reality shows and soaps on the Internet. Ekta Kapoor's Balaji Telefilms plans to launch exclusive entertainment content for the Net and mobileSource: Business Line - Home Page | 15 May 2010 | 12:00 am Restaurants body wants legal age for drinking cutYou can choose your electoral representative or even get married at 18 years. But you cannot drink till you are 21 or 25, depending on the State you are in, laments the National Restaurants Association of India (NRAI), making a plea to reduce theSource: Business Line - Home Page | 15 May 2010 | 12:00 am Steel firms looking at buys in West Asia, AfricaWith steel demand in the developed world declining, West Asia and Africa are fast becoming attractive destinations for Indian steel companies looking forSource: Business Line - Home Page | 15 May 2010 | 12:00 am DLF Q4 net more than doublesDLF Ltd on Friday said its consolidated net profit for the fourth quarter ended March 2010 more than doubled to Rs 426 crore as the company clinched higher salesSource: Business Line - Home Page | 15 May 2010 | 12:00 am Nalco Q4 net jumps 5-fold to Rs 391 cr - Hindu Business Line
Source: Business - Google News | 14 May 2010 | 11:49 pm Gold too hot for buyers, but some investing - Economic Times
Source: Business - Google News | 14 May 2010 | 11:13 pm BHP, Rio iron venture plan might be reconsidered - WSJSINGAPORE (Reuters) - BHP Billiton and Rio Tinto might re-evaluate plans to merge their Western Australian iron ore operations if an agreement is not reached by year end, the Wall Street Journal said on Saturday.Source: Reuters: Money News | 14 May 2010 | 11:11 pm Toyota considered discrediting witnessesOfficials of Toyota Motor Corp took preliminary steps to publicly question the integrity of two witnesses testifying before a US Congress panel that is probing the Japanese automaker's safety record.Source: HindustanTimes.com - Top Business News Headlines | 14 May 2010 | 10:18 pm BlackBerry may launch own tablet by year endThe BlackBerry tablet will have no mobile networking but will connect to its smart phone devices through Bluetooth or Wi-Fi, say reports.Source: Daily News & Analysis: Money News | 14 May 2010 | 10:17 pm Toyota considered discrediting witnesses - reportWASHINGTON (Reuters) - Officials of Toyota Motor Corp took preliminary steps to publicly question the integrity of two witnesses testifying before a U.S. Congress panel that is probing the Japanese automaker's safety record, the Washington Post reported on Friday.Source: Reuters: Money News | 14 May 2010 | 9:06 pm Google says mistakenly got wireless dataGoogle Inc said its fleet of cars responsible for photographing streets around the world have for several years accidentally collected personal information.Source: Daily News & Analysis: Money News | 14 May 2010 | 9:03 pm IMF board okays $1.13 billion in aid for PakistanPakistan had asked for a waiver on some of its targets, including its quarterly budget deficit.Source: Daily News & Analysis: Money News | 14 May 2010 | 8:45 pm EXCLUSIVE - Waddell is mystery trader in market plungeNEW YORK (Reuters) - A big mystery seller of futures contracts during the market meltdown last week was not a hedge fund or a high-frequency trader as many have suspected, but money manager Waddell & Reed Financial Inc, according to a document obtained by Reuters.Source: Reuters: Money News | 14 May 2010 | 8:20 pm GLOBAL MARKETS - Euro at 18-month low on debt woes; stocks sinkNEW YORK (Reuters) - The euro slid to an 18-month low versus the dollar and global shares fell sharply on Friday over fears that Europe's fiscal austerity plans may derail economic recovery.Source: Reuters: Money News | 14 May 2010 | 8:19 pm Obama slams oil companies for spill blame gameWASHINGTON/PORT FOURCHON, La. (Reuters) - U.S. President Barack Obama on Friday slammed the companies involved in a massive Gulf of Mexico oil spill as BP Plc readied a siphoning system to contain a growing environmental disaster.Source: Reuters: Money News | 14 May 2010 | 7:44 pm April inflation cools to 9.59%, eases interim rate hike pressure for now - Economic Times
Source: Business - Google News | 14 May 2010 | 6:43 pm Open to talks, ready to reduce 2G prices: Trai - Indian Express
Source: Business - Google News | 14 May 2010 | 6:10 pm BS III emission for 2/3-wheelers sold on or after Apr 1?A source said the fiat mandates sale of only Bharat Stage III-compliant vehicles in 13 major cities from April 1.Source: Daily News & Analysis: Money News | 14 May 2010 | 5:23 pm Buying gold? Here's how not to regret itWith Akshaya Tritiya on Sunday, gold buying is set to touch frenzied proportions.Source: Daily News & Analysis: Money News | 14 May 2010 | 5:21 pm SBI plans bond issue, but will reduce depositsAccording to chairman OP Bhatt, the bank expects a 21-22% credit growth this fiscal.Source: Daily News & Analysis: Money News | 14 May 2010 | 5:14 pm Tata Motors scraps 'eco' car project in ThailandA company spokesperson confirmed Tata Motors (Thailand) will not participate in the project. The company may ship the Nano instead.Source: Daily News & Analysis: Money News | 14 May 2010 | 5:10 pm Government says willing to talk to telecom companiesThe operators have opposed the proposal tooth and nail, saying the proposals are arbitrary and without legal, logical or moral justification.Source: Daily News & Analysis: Money News | 14 May 2010 | 5:07 pm Hindustan Copper Ltd divestment move soonThe company also gets 2 mine leases in Rajasthan having 85 million tonnes of 0.41 grade copper reserves.Source: Daily News & Analysis: Money News | 14 May 2010 | 4:58 pm 'Telecom consolidation will leave just 4-6 players in the fray'The new entrant in the telephony segment, Sistema Shyam TeleServices, which operates under the MTS brand, is gearing up to penetrate the overcrowded market by offering lowest-ever tariffs and promoting data services.Source: Daily News & Analysis: Money News | 14 May 2010 | 4:55 pm Etisalat DB backs TRAI on 2G proposalsEtisalat DB, GSM mobile service operator and telecom venture of Indian realty major DB Group and UAE based telecom operator Etisalat, has backed the recent Telecom Regulatory Authority of India (TRAI) recommendations calling it pro consumer and competition.Source: Moneycontrol Top Headlines | 14 May 2010 | 4:00 pm DLF Q4 net surges, sees more growthDLF Ltd on Friday reported its quarterly net profit more than doubled, as demand for homes revived in the country\'s property market after being hit hard by an economic downturn.Source: Moneycontrol Top Headlines | 14 May 2010 | 4:00 pm Under fire, BP pushes latest oil spill control bidEnergy giant BP on Friday stuck by its lower estimate of oil gushing into the Gulf of Mexico and geared up for its latest effort to contain its offshore well leak as some scientists said the true amount of crude escaping could be much higher.Source: Moneycontrol Top Headlines | 14 May 2010 | 4:00 pm Planning Comm approves new intl airport at Greater NoidaThe Planning Commission has given its approval for a new international airport at Greater Noida after finding it commericially viable, reports CNBCTV18.Source: Moneycontrol Top Headlines | 14 May 2010 | 3:43 pm SBI Q4 net down 32% at Rs 1.8K crore - Economic Times
Source: Business - Google News | 14 May 2010 | 3:33 pm Mayapuri scrap market still in danger, says Greenpeace - The Hindu
Source: Business - Google News | 14 May 2010 | 3:31 pm Mukesh Ambani sees crude heading towards $100 - Economic Times
Source: Business - Google News | 14 May 2010 | 3:30 pm Marico eyes global market with bigticket itemsMarico is ready to put its global expansion plans into operation. Step one in this is a change in focus to developing bigticket items tailormade to drive growth, reports CNBCTV18s Tanvi Shukla and Shruti Rajkumar.Source: Moneycontrol Top Headlines | 14 May 2010 | 2:46 pm SBI Q4 profit drops, sees credit pickupState Bank of India posted an unexpected 32% drop in quarterly profit, hit by a jump in bad loan provisions, but the country\'s largest lender saw a strong pickup in credit demand this fiscal year in a fastexpanding economy.Source: Moneycontrol Top Headlines | 14 May 2010 | 2:45 pm Toyota to suspend Thai plant operationsToyota Motor Corp said it would suspend one of its four vehicle plants in Thailand as the economic crisis hammered exports.Source: Moneycontrol Top Headlines | 14 May 2010 | 2:39 pm Dr Reddy\'s gets US nod for Prograf genericDr Reddy\'s Laboratories has received US regulator\'s approval to launch tacrolimus capsules, used to help prevent rejection of kidney and liver transplants, a spokesman said on Friday.Source: Moneycontrol Top Headlines | 14 May 2010 | 2:38 pm States raising VAT to drive a hard bargain on GSTWith less than a year left for the scheduled introduction of the Goods and Services Tax (GST), most states have increased their VAT (value-added tax) rates. The move is seen as an attempt to extract better compensation from the Centre for loss on account of GST rollout. This will also allow states to negotiate with the Centre for a higher State GST rate.Source: Business Standard | Front Page Headlines | 14 May 2010 | 1:12 pm SBI net profit drops 21%The countrys largest lender, State Bank of India (SBI), today reported a 21 per cent drop in consolidated net profit for the quarter ended March on the back of higher provisions and operating expenses. On a standalone basis, net profit fell almost 32 per cent.Source: Business Standard | Front Page Headlines | 14 May 2010 | 1:07 pm Money Matters | Regulator approvesMCX initial share saleMumbai: India’s commodity regulator gave permission to Multi Commodity Exchange of India Ltd (MCX) for its proposed initial share sale subject to certain conditions, the Forward Markets Commission said on its website. Bloomberg Source: LatestNews-Home - Livemint.com | 14 May 2010 | 1:07 pm Small brokers see red over net worth hike planThe recommendations on the minimum net worth criteria for stock brokers are expected to hit the Bombay Stock Exchange (BSE) and the upcoming MCX Stock Exchange hard.Source: Business Standard | Front Page Headlines | 14 May 2010 | 1:05 pm Lounge Reviews | Paninaro, MumbaiMumbai’s newest sandwich and salad delivery service is modelled along the lines of London’s Pret A Manger, a chain of sandwich, salad and baked goods shops which provides salvation (and fresh, healthy food) to busy office goers. Paninaro has an outlet in Malad, and will soon open outlets in Bandra, Fountain and Nariman Point. The good stuff The range of sandwiches is quite large and features plenty of fresh ingredients (though when we tried to order sandwiches with scamorza and avocado, we were told both were not available). Of all the sandwiches and salads we ordered, the arugula, romaine and iceberg lettuce, as well as vegetables, were crisp and of the best quality— they’re definitely not cutting any corners there. Deliveries are made in a refrigerated van. Paninaro makes all their breads in-house. The wheat, ciabatta and multigrain were good, but the texture of the rye bread was stretchy and quite a bit like white bread.  Paninaro uses its own bread for sandwiches. Another success was the Tuna Twist. Pre-made tuna sandwiches, without exception, contain a stomach-churning quantity of mayonnaise, destroying the taste of the fish. Here, we had no such problems. The Smoked Chicken and Bacon had a lovely smoky flavour, but little bits of overcooked bacon kept falling out of the sandwich. As for the salads, the Chef’s Pasta Salad with Mixed Meat had crisp lettuce and an intensely tangy dressing (which came separately). It could have used a bit more pasta and meat (which was bits of chicken salami and sausage). The two dips we ordered—Cream Cheese and Spiced Dip with Spiced Crisp Pita, and Dill and Garlic Dip with Sesame Cheese Sticks were both good. The spongy pita was just right, though the dip could have used a bit more cheese. If Paninaro decides to beef up its delivery process and makes slight adjustments to some offerings, it will be a success with those who want a light meal option. The not-so-good One of the sandwiches we had with ciabatta—Roast Beef Caesar—was not a success. The filling was not plentiful and was overwhelmed by the thick pieces of bread. We weren’t too happy with the egg sandwich either. Egg sandwiches are most often failure-proof, but unfortunately this one was drowned in mayo. The mango cheesecake resembled a light mousse more than a cheesecake. As of now if you’re in Bhandup, Powai, Mulund or Ghatkopar, orders can be placed on the same day, but you have to order a day in advance for other locations. Depending on your location, you might need to place a minimum order of Rs1,000 or Rs2,000. Talk plastic Sandwiches cost Rs80-140, salads are in the same price range (for a large plastic container), dips are Rs50 each, desserts Rs36-60. To place orders, call 022-61519999. Source: LatestNews-Home - Livemint.com | 14 May 2010 | 1:00 pm Lounge Reviews | Pali Village Cafe, MumbaiWith a name that gives away its location and pretty much the kind of restaurant it is, Pali Village Café is easy to locate in Bandra, the bustling Mumbai suburb. Brave the heavy Pali Naka traffic, next to the legendary Janata bar, and you’ll see a green gate and a small sign. Once you enter, you’ll be transported to another era. The good stuff  Old world: The Pali Village Café has the look of a vintage bungalow. The menu is European, with a good selection of sandwiches, bagels, pizzas, pastas and grills. The café only has a wine licence, which is not bad considering the place is perfect for sipping midday sangrias. Thin crust pizzas are served by the slice. We first tried the pepperoni and fig pizza. What looked intriguing on the menu was perfect to the taste buds—the tangy sauce combined with the sweet figs added zing to the crispy base and the pepperoni. The Spinach and Ricotta Ravioli with roasted almond cream sauce was creamy, with crunchy almond bits. But the best part of the meal was the mains. The Pan Seared John Dory was fresh and succulent, served in a tangy, peppery cream sauce and perfectly complemented by the capers. The Grilled Australian Lamb Chops—we asked for medium rare—were tender and juicy. In desserts, the mild vanilla flavoured, creamy Panna Cotta served with sharply tangy passion fruit reduction was refreshing. The café opened just about two weeks ago, but most tables were taken by the time we left (celebrity spotting is common here. Just a few days after it opened, a tabloid reported that Ranbir Kapoor and Katrina Kaif were spotted there, deep in conversation). The not-so-good Our meal had a disappointing start with the tasteless Virgin Kiwi Margarita that came in a martini glass. The menu gave us no indication that we would be served a frozen margarita. The Nutella and Roasted Hazelnut smoothie was watered down and the flavours were faint. The Goan Sausages with Potatoes and Onions were tough and oily, and had more potatoes than meat. Be prepared also for slow service. Talk plastic The appetizers are priced at Rs150 onwards, the pizza slices at Rs110 onwards, the pastas and main course entreés at Rs250 onwards. For reservations, call 022-26050401. Source: LatestNews-Home - Livemint.com | 14 May 2010 | 1:00 pm Under the original’s shadowMumbai: In 1998, Iranian film-maker Majid Majidi’s Children of Heaven was nominated for a Best Foreign Language Film Oscar (it lost out to Roberto Benigni’s Life is Beautiful). In 2010, Priyadarshan attempts an official Indian remake.  An opportunity lost: Darsheel Safary (left) and Ziyah Vastani. Set somewhere in North-East India, the film orbits around Khogiram’s family. Living a hand-to-mouth existence as labourers on a tea estate, Khogiram (played by Atul Kulkarni) and his wife (Rituparna Sengupta) earn a meagre income with which they struggle to raise their two children and admit them to the best schools. But when the manager makes an unacceptable overture towards his wife, Khogiram punches the manager and loses his job. Khogiram’s family has no choice but to subsist on loans and debts. Both children, Pinu (Darsheel Safary) and Rimzim (Ziyah Vastani), help with chores. One day Pinu goes to get his younger sister’s only pair of shoes repaired. But he loses them, and knowing his father (who is constantly yelling at him) cannot afford a replacement, the siblings share Pinu’s only pair of shoes. They hatch a plan where she wears the shoes to school in the morning, and—since his school starts later —he wears them to school in the afternoon. Having to wait for Rimzim at the crossroads where they swap footwear, Pinu is often reprimanded for being late to school. Life in the hill state is not just one of economic struggle, but also one affected by political instability. This is the main deviation from Majidi’s original. One feels a resonance of Santosh Sivan’s Tahaan and Piyush Jha’s Sikandar, which also explore how innocent children and their naive desires are exploited by insurgents. Heartbroken at seeing his sister make sacrifices because of his error, Pinu is determined to get her a new pair of shoes. He devises many plans, the main one being to enter a marathon race where the third prize is a pair of sports shoes. He plans to come third in the race and promises his sister a shiny new pair of shoes. But not all plans work out. Simultaneously, Khogiram’s efforts at finding gainful employment hit roadblocks. His cynicism and pessimism is offset by the children’s sensitivity and purity. But this is underutilized by Priyadarshan and compromised by the producers, who convert what should have been a dramatic and heart-wrenching finish into a big-screen commercial for a couple of brands. Bumm Bumm Bole is not the most inspiring title, but the story is. Unfortunately, Priyadarshan’s direction and the storywriter’s adaptation are complete letdowns. The children, while cute, are unable to win over the audience, largely due to little effort from the director to guide them adequately in complex and nuanced roles. Hence, the experience is devoid of poignancy or pathos. As for the adults, besides the dependable Kulkarni, the rest overact. Sengupta’s make-up and contact lenses change shades as the film progresses. There are many other continuity lapses, such as the colours of Pinu’s coats, Safary’s corrective braces, which are seen in some scenes but not in others, and the differing accents of the actors, which make it hard to geographically locate the film. On the upside, the opening credits are fresh and child-like. But this is not enough to enjoy Bumm Bumm Bole. In the hands of the right team, the film could have been an opportunity to capture the magic of the original. Bumm Bumm Bole released in theatres on Friday. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 14 May 2010 | 1:00 pm Spotlight | The Economist: Dumbing downReviewer:Prathap Suthan  Visible corrosion: Suthan. CAMPAIGN: The television ads feature Chinese children learning Hindi. The ad ends with the line, “China exports workforce to its plants in India”. What did you think of the campaign? First off, this isn’t The Economist white-out-of-red advertising that I know, respect, admire and have blatantly letched at all these years. There seems to be a deliberate broad-basing and psychographic downscaling of the target audience. The Economist advertising has always been cranial. The brand has always been clever, witty and intelligent. Together, those genes made the brand aspirational. By lowering the loftiness of the brand, there will be visible corrosion among those who swear by the brand. But for newbie readers, these films look straight out of National Geographic, or a Discovery infomercial, or factoid. Nothing scathingly brilliant, nothing immensely deep, nothing that challenges the viewer to think. Interpreting the world by itself is an intellectually imbued line, but these aren’t interpreting anything. It’s giving me facts I already know and have digested. Bob (Shashanka Chaturvedi of Good Morning Films) has directed the films well. But I have an issue with the locations and casting. The Chinese film looks like it was shot in Ladakh. On the authenticity front, that’s bad news for The Economist. What can print media brands do to stay relevant?  Authenticity issues: The Chinese film looks like it was shot in Ladakh. What’s your favourite print media campaign? The brilliant and original Economist print campaign from David Abbott. “I never read The Economist”, “Our burrowings could reduce your borrowings”. Plus, a few others like “Leave no answer unquestioned”, “errorism”. These ads have always given you space to think, and never has the brand ever regretted its position or attitude. Then there’s Neil French’s XO Beer campaign for The Straits Times which launched a fictitious beer just to showcase the power of print advertising. As told to Gouri Shah. gouri.s@livemint.com Source: LatestNews-Home - Livemint.com | 14 May 2010 | 1:00 pm Expect pleasant surprise on deficit, FM saysNew Delhi: Finance minister Pranab Mukherjee is a happy man, thanks to the bidding at the ongoing auction for third-generation (3G) mobile spectrum. He said in an interview that high returns from the 3G auction will provide extra elbow room to the government to manage its fiscal deficit. Edited excerpts: The 3G auction has already crossed your Budget estimate of Rs35,000 crore. Will you revise your fiscal deficit projection?  Decision-maker: Mukherjee says monsoon is the real finance minister. Ramesh Pathania/Mint You have budgeted for about 5.5% in terms of the fiscal deficit for FY11. Would you estimate that may narrow to 4.8%? I hope (so). When I will give the final figure to the people through Parliament, I would like to keep some pleasant surprise for the people. That is why I am not making any comment right now. In a country of our size and magnitude, always there are uncertainties, which I cannot or nobody can foresee and predict at this moment. Therefore, keeping that in view, I am feeling comfortable, but I am not over-enthusiastic. What is the inflation outlook? The sense is that in FY11 average inflation would be about 7.8%. How worried are you? It is a matter of concern because in this country if the food inflation goes up, it affects the life of the common people. We cannot protect every section of the society from the adverse impact of high prices. But surely we shall have to protect the more vulnerable sections of society from the adverse impact of inflation. That is why the mechanism of the public distribution system, arrangements of providing subsidies on essential food items, is in vogue for a long time. Unfortunately, that mechanism was not very effective during the recent crisis, we noticed. So far as the supply constraint is concerned, in respect of inflation, we are taking all possible steps, including ensuring that imports become easier and cheaper. The appropriate monetary policy is being taken and fiscal policies, monetary policies are worked out in close cooperation with Reserve Bank. Average annual rate will come down substantially to my mind. What is the number you are working with? I think it would not be more than 4.5-5%. I hope so. But I cannot say, it depends to some extent on what would be the monsoon. I am talking of the annual average rate of inflation, 12 months average rate of inflation. The monsoon will be a key factor. Monsoon is the real finance minister of this country; keep it in mind. The first prediction is encouraging that they are saying that it would be normal. Are you worried that we are seeing trouble in Europe and that could impact global financial markets? When you integrate yourselves to the global economy, naturally you will have advantages, you will have disadvantages. You cannot create a mechanism where you will not have any adverse impact of the disadvantages developing outside; no economy can insulate itself from the impact of the global development totally. What is the update on the goods and services tax? Today I had a meeting with the chairman of the empowered committee of states Asim Dasgupta and I requested him that when he meets his colleagues (other state finance ministers) he should take into account the responses, which we have made to their first discussion paper, the suggestions, which we want to have, the target date, which we have announced in the Budget that from the next financial year we should have it. Lot of work is to be done from our side, from their side. We should work in close co-operation and certain exercises are to be made parallel, so that we can reach the target. We want uniform rate, we want revenue neutrality and I conveyed through him and when I will have interaction with the state finance ministers and subsequently I may have to meet the chief ministers also, I will assure them that the states will not lose. How worried are you on oil prices? You know oil is always a worry. Practically we do not have control over it, 75% of our hydrocarbon sources of energy are being imported. Therefore, the international players and the variations there influence consumers like us. Therefore, we shall have to keep in mind that how to insulate the adverse impact of volatility of the oil prices in future. I am fully aware of the under-recoveries of our oil marketing companies (OMCs). Do you have a rough estimate of the sort of cushion that you could provide to the OMCs? Rs26,000 crore roughly. Because I have given some subsidies figures, around one lakh- plus thousand crores of rupees; for food subsidy, for fertilizer subsidy and oil taken together and certain other subsidies, I think hundred thousand crore-plus. cnbctv18@livemint.com Source: Home - Livemint.com | 14 May 2010 | 1:00 pm Corporate News | Johnson Johnson, Emami settle disputeNew Delhi: Personal care products maker Emami Ltd and healthcare firm Johnson and Johnson on Friday informed the Supreme Court that they have amicably resolved a dispute over the advertisement of baby products. Lawyers representing the two firms moved a joint application before an apex court bench headed by Chief Justice S.H. Kapadia, formally withdrawing the case. Emami had earlier filed an appeal against an order of Competition Appellate Tribunal, which had asked it to withdraw certain emphasised portions from its advertisement that implied that similar products of leading manufacturers were harmful for a child’s skin and herbal products manufactured by it (Emami) would be a better alternative. Manish Ranjan ********* DLF net rises more than twofold to Rs426 cr New Delhi: India’s largest real estate firm, DLF Ltd, posted a net profit of Rs426 crore for the quarter ended 31 March and Rs1,729 crore for fiscal 2010. While quarterly profit marked a more than twofold rise over Rs159 crore in the same period last year, yearly profit showed a decline of 61% over fiscal 2009. DLF posted Rs2,146 crore revenue for for the March quarter, up 59% from the corresponding period last fiscal, while yearly revenue stood at Rs7,855 crore, down 25% from the previous year’s figure of Rs10,431 crore. Devesh Chandra Srivastava ********* Tata Power told to supply power to R-Infra Mumbai: The Maharashtra government on Friday wrote to Tata Power Co. Ltd asking it to sell power Reliance Infrastructure Ltd (R-Infra) at a regulated rate of Rs4.30 per unit, according to a government official. State energy secretary Subrat Rathore said the government has told the Tata Power that power cannot be sold at rates higher than the regulated one, and that power generated in Mumbai cannot be sold elsewhere. The government’s directive comes after Tata set a Friday deadline for R-Infra to accept 200MW of power at Rs5.90 per unit, higher than the regulated rate. Joel Rebello Source: LatestNews-Home - Livemint.com | 14 May 2010 | 1:00 pm 3 new co-ops under RTI, rules Delhi HCObserving that the RTI Act is a "small but potent key in the hands of India's little people" the Delhi High Court on Friday brought three co-operative societies under the ambit of the transparency law.Source: India Business News | Business News - Times of India | 14 May 2010 | 12:42 pm 'Check volatility in capital flows'Taking a lesson from the Greece crisis and the recent financial meltdown, finance minister Pranab Mukherjee on Friday said that too much fiscal expansion was not desirable for the economy.Source: India Business News | Business News - Times of India | 14 May 2010 | 12:37 pm Sebi appeal: SC gives notice to PendseMarket regulator Sebi and Tata Motors Ltd on Friday appealed the Supreme Court to challenge a tribunal verdict giving a clean chit to former Tata director Dilip Pendse and his family-owned company accused of indulging in insider trading.Source: India Business News | Business News - Times of India | 14 May 2010 | 12:31 pm M&M may bid for S Korean auto companyMahindra & Mahindra, is considering bidding for South Korea's Ssangyong Motor, sources with knowledge of the development said, in a deal reportedly worth up to $500 million.Source: India Business News | Business News - Times of India | 14 May 2010 | 12:29 pm Govt to monitor projects in 5 core sectorsKeen to convert the "ailing" infrastructure sector into a success story, the UPA government has decided to set up a mechanism to monitor the progress of projects in crucial sectors.Source: India Business News | Business News - Times of India | 14 May 2010 | 12:26 pm 'India, China's car buying to push up crude prices'US President Barack Obama is asking auto-loving Americans to use public transportation more as the fact that Indians and Chinese are buying more cars would push oil prices higher.Source: India Business News | Business News - Times of India | 14 May 2010 | 12:24 pm Oil may cross $100 on Asian demand: MukeshReliance Industries chairman Mukesh Ambani, who runs one of the world's largest refineries, has said that the petroleum industry should be ready for oil prices to rebound to $100 a barrel or more on growing consumption in Asia.Source: India Business News | Business News - Times of India | 14 May 2010 | 12:22 pm SBI net dips 47% in Q4Huge liquidity overhang, higher NPA and wage provisioning has brought down SBI Q4 net profit by 47%.Source: India Business News | Business News - Times of India | 14 May 2010 | 12:20 pm Strides signs new generic supply deals with PfizerMumbai: Bangalore-based generic drug maker Strides Arcolabs Ltd and the world’s largest pharma company by sales Pfizer Inc. have signed two more product partnership deals to cater to the global market. In January, the two had entered into a similar product licensing deal for another set of generic drugs. Under the new deals, announced on Friday, Strides will license and supply up to 38 generic cancer drugs to Pfizer for markets in the European Union, Canada, Australia, New Zealand, Japan and Korea, and a range of injectables for the US market. These drugs, supplied by Strides in specific dosages, will be commercialized by Pfizer through the generic drug business it recently set up called established products business unit. “We are excited about extending our important partnership with Strides to reach an even larger global patient population,” David Simmons, president and general manager of the established products business unit, said in a release. Under the January agreement between Strides and Pfizer, the Indian company will deliver 40 generic drugs, which also includes some cancer therapies, for the US market. “The new deal validates our strategic intent to be a partner of choice to Pfizer,” said Arun Kumar, vice-chairman and group chief executive officer of Strides. Pfizer, which had last year initiated its plans to enter global generic drug markets including India, has partnered Hyderabad-based Aurobindo Pharma Ltd and Ahmedabad-based Claris Lifesciences Ltd to source cheap generic drugs from the country. “While these product outlicensing deals (have been) negotiated at a comparatively low margin, it helps (the Indian companies) in capturing a regular business from new global markets without taking the risk of directly entering those markets,” said a pharma industry analyst working with a foreign brokerage. Strides Arcolabs shares fell 0.48% to Rs341.85 on the Bombay Stock Exchange on Friday as the benchmark equity index, the Sensex, dropped 1.57% to 16,994.60 points. ch.unnikrishnan@livemint.com Source: Home - Livemint.com | 14 May 2010 | 12:00 pm Aban Offshore plunges on rig collapse reportsMumbai: Shares prices of Aban Offshore Ltd, India’s largest oil rig firm, fell as much as 18.29% to Rs831.25 after a rig leased to Petroleos de Venezuela SA sank off the coast of Venezuela. This is the first time an Indian company has lost a rig on sea. The semi-submersible Aban Pearl, owned by a subsidiary of Aban Offshore, was insured for $240 million (Rs1,082.4 crore). The causes of the sinking were still unknown, Aban Offshore told the Bombay Stock Exchange. All 95 personnel on board were evacuated. Ambit Capital Pvt. Ltd said in a Friday report that the rig, leased out at a day rate of $358,000 till October, was the highest earning asset of the company. The domestic brokerage downgraded the scrip from buy to sell. Another local brokerage, Jaypee Capital Services Ltd noted that the loss of the rig, which contributed 11% to the Aban Offshore’s revenue, will severely impact its debt repayment obligations. Analyst Jyotsna Sawdekar of Jaypee Capital on Friday estimated net debt of Aban Offshore at Rs11,384.2 crore by the fiscal year ending 31 March 2012. Among Indian banks, State Bank of India, Axis Bank Ltd, Bank of India, ICICI Bank Ltd, and Bank of Baroda have exposure to Aban Offshore and were part of a syndicate to raise $1-1.5 billion for Aban in 2007. Aban Offshore could not be contacted despite several attempts. Anita Bhoir and Anup Roy contributed to this story. Source: Home - Livemint.com | 14 May 2010 | 11:50 am SBI’s Q4 net profit drops 32%Kolkata: State Bank of India (SBI) posted a 31.9% drop in net profit to Rs1,867 crore for the March quarter and missed analysts’ estimates by a wide margin as the country’s largest lender set aside more funds for bad loans and operating expenses rose.  Higher provision: SBI chairman O.P. Bhatt. Hemant Mishra/Mint SBI had to set aside Rs2,187 crore as provisions for bad loans, 68.7% higher than what it had provided for in the corresponding period of the previous year, as quality of assets deteriorated. Operating expenses, on the other hand, rose 40.9% to Rs6,036 crore, as the bank hired 27,000 people and expanded its network of branches and automated teller machines to seize growing business opportunities in the world’s second fastest growing major economy. SBI’s shares fell 4% to close at Rs2,222.65 apiece on the Bombay Stock Exchange on Friday while the bourse’s benchmark Sensex index lost 1.57% to close at 16,994.60 points. For the entire year, the bank’s net profit rose marginally to Rs9,166 crore. Increase in interest income during the quarter was also marginal: it grew 3.6% to Rs17,966 crore. For the year, SBI’s interest income grew 11.3% over fiscal 2009 to Rs70,994 crore. SBI chairman O.P. Bhatt said the increase in provisions for bad loans was because of “ageing” stressed assets for which the bank had to provide more in keeping with banking regulations. Its non-performing assets (NPA) rose during the quarter by Rs674 crore net of recoveries. Some 20-odd large and mid-size firms accounted for Rs1,000 crore of new NPAs, Bhatt said. “We should be able to turn at least half of these into standard assets through restructuring within a few months,” he added. SBI saw significant pressures on asset quality in this quarter and that’s a negative compared with the private sector banks, said Vaibhav Agrawal, vice-president of research at Mumbai-based Angel Broking Ltd. India’s banking regulator has mandated that all banks should provide at least 70% of the value of their NPAs. SBI has till 31 March provided 59.2%, and would have to provide at least Rs3,500-4,000 crore more if it was to comply with the norm by 30 September. It has approached the regulator seeking more time. “If we were to provide that amount of money (over the next two quarters), there would be no profit at all,” Bhatt said. A report released by Ambit Capital Pvt. Ltd immediately after the bank announced its earnings said the provision coverage ratio “is a cause for concern”. Another key reason for the decline in SBI’s profit was the “liquidity overhang”. The bank had Rs40,000 crore of deposits at the end of March that it could not deploy. “There is a negative carry of Rs273 crore on this amount,” Bhatt said, adding that SBI was looking to pare deposits over the next few months. Despite this, net interest margin—a critical parameter of a bank’s operational efficiency—during the quarter at 2.66% was 27 basis points higher than the corresponding quarter last year. One basis point is one-hundredth of a percentage point. The bank said its net interest income, or the spread between interest earned and spent, during the quarter at Rs6,721 crore was the highest in the last eight quarters. This was on account of a 10% reduction in interest expenses during the quarter. SBI expects credit growth in the current fiscal to remain flat at least till June, but its loan book to expand by 21-22% during the current year. To keep pace with credit growth, SBI needs to shore up capital and wants to raise Rs15,000-20,000 crore through a rights issue this fiscal and is persuading the government to subscribe to it. Reuters and Bloomberg contributed to this story. Source: Home - Livemint.com | 14 May 2010 | 11:46 am Prepare for 3-digit oil price: AmbaniMumbai: Reliance Industries Ltd (RIL) chairman Mukesh Ambani said the world should be prepared for “three-digit” crude oil in the “foreseeable future”, in his first public appearance since winning a four-year legal battle with estranged younger brother Anil Ambani. “By most analyst accounts, crude oil prices will likely be above the $70 (Rs3,157) mark, and in the foreseeable future, in the worst case, we have to be prepared to again see a three-digit oil price,” Ambani said at the Asia Petrochemical Industry Conference 2010 in Mumbai on Friday. Ambani was also critical of government subsidies that create a “future burden”. Emphasizing that $80-100 was “a norm in this ever-changing global dynamic”, Ambani, Asia’s richest man and the fourth wealthiest in the world, explained there was a need “to reset our thinking” and “find creative responses”, rather than hope oil prices will go back to what they were two decades ago. Crude oil has been fluctuating in the past couple of years, touching an all-time high of $147 a barrel in July 2008 before plummeting to $30 per barrel levels by December the same year. Oil has pulled back by nearly a 10th since reaching $87.15 a barrel on 3 May, a 19-month high, as the euro weakened against the dollar against the backdrop of the Greece debt crisis. Bank of America-Merrill Lynch on 11 May repeated its forecast that crude prices will exceed $100 per barrel next year as a result of growing demand in emerging economies while a Goldman Sachs note the same day said it estimated “long-term oil price of $65-90 per barrel from 2013 onwards and $72-96 per barrel from 2011 onwards”. He avoided mention of the gas dispute with his brother. Ambani stressed that the era of subsidies was over. “No subsidy creates competitiveness. It is a future burden, it is a burden on the next generation. Cheap feedstock is a thing of the past,” he said. RIL’s fuel retailing businesses was grounded about two years back after crude oil soared, but it couldn’t raise fuel prices proportionately, as the state oil marketing companies continued selling at prices capped by the government. A government-appointed committee headed by Kirit Parekh in February recommended market-pegged pricing of petrol and diesel. The loss-making venture was shut in 2008 and has been revived only recently. By end March, it had 650 fuel retail outlets open. RIL itself has begun reinventing its portfolio and is looking at unconventional ways of extracting oil and gas as it gets harder and costlier to mine these resources. In April, it forged a 40:60 joint venture with Atlas Energy Inc. of the US for its shale sand assets for a total cost of $5.2 billion. RIL will have some $25 billion of excess cash between FY11-14 that it can deploy on acquisitions, according to sector analysts. Ambani also said consumption-led growth will feed the purchasing power boom in China and India, and this in turn could create huge demand for petrochemical firms—a belief shared by analysts. RIL’s shares fell 2.64% on Friday to close at Rs1,043.55 apiece, outstripping a 1.57% dip in the bellwether index, the Sensex. Bloomberg contributed to this story. Source: Home - Livemint.com | 14 May 2010 | 11:41 am Commodities market needs to be separateThe Forward Markets Commission (FMC), which governs the commodities market, is defending its turf from encroachment by two relatively younger regulators—the Central Electricity Regulatory Commission (CERC) and the Securities and Exchange Board of India (Sebi). At the same time, FMC is also fending off efforts by the finance ministry to merge it with the capital markets regulator. In his office, located in a quiet bylane off Mumbai’s Marine Drive, B.C. Khatua, chairman of FMC, talked animatedly about why the commodities market needs to be separate and the physical delivery market needs to be the focus. Edited excerpts: There are too many turf wars between regulators. What’s happening?  Tried and tested: FMC chairman B.C. Khatua says that, going by empirical evidence, the multiple-regulator system in India has worked well. Ashesh Shah / Mint The larger issue is whether the multiplicity of regulators is a cause of these (spats). I think that by itself it’s not a cause. (The) second issue is whether a single regulator or reducing the number of regulators will (reduce these spats). You don’t seem to have faith in the single-regulator concept. I would say the global evidence—especially in the context of the 2008-09 global financial crisis—does not lead to inspire confidence about the efficacy of a single-regulator model or multiple-regulator model. You have (for example) FSA (the Financial Services Authority), a single regulator in the UK. It could not save the UK from the financial crisis. I understand it’s a single regulator with separate wings which operate independently. And the single regulator has not been able to iron out the inter-sectoral issues. In the US, separate regulators have not helped them avert the collapse. What about India? If you go by empirical evidence, I would say the multiple-regulator system in India has worked well. The fact is (that) each regulator in India has regulated the market in the correct public spirit. The regulators didn’t flinch from intervening in the market. They have adequate powers to do that. So where do the problems arise in India? The problems are being created, I would say, because of the misinterpretation of laws…The problems arise because of lacunae in the drafting of laws. In various issues that you see, whether in the public sector or the private sector, litigation or legal issues arise out of the legal language—you are interpreting it one way and I am interpreting it in some another way. After all, the people who interpret it—whether regulators, or the courts or governments—are all human beings. There are grey areas, or the language is ambiguous, or the language lends itself to multiple interpretations or multiple meanings—there lies the devil. Many of these issues essentially arise out of this problem. The best thing to do is to leave it to the most competent and impartial authority, the most neutral. It could be the court of law, a government functionary, a government council or the ministry. But I would say that the court of law is the last resort. Don’t you think that the spat with CERC, or the one between Sebi and Irda (the Insurance Regulatory and Development Authority, over unit-linked insurance plans, or Ulips), are stifling innovation and progress? I would not look at it that way. I would look at it as (a) part of the process of evolution. Institutions keep evolving. Laws keep evolving. Therefore, I would look at the larger picture than individual skirmishes at this point of time. These things will pass. Ten years down the line, who knows how the markets will be? For all you know, India might be the ideal market with separate regulators. And if there are any products in the market which carry features that come under two market regulators, you can always sit down and come up with a regulatory framework for that. What about CERC? CERC tried to encroach on our area. So we had no other choice but to approach the court. And we approached the court of law with due approval and permission of the law ministry. The law ministry opinion is behind us. The finance ministry is thinking of having a unified regulator for exchange-traded products. What’s your take on this? They haven’t studied the commodities market in the report. And they sent it very late to us. The committee sent me a copy of the draft report, saying we are going to publish it in two days, but we would like to have your comments. So I sent my comments, but they didn’t make it even as a footnote. Then we sent our comments to the Planning Commission and our ministry. The sum and substance was that the committee (which came out with the report) didn’t have a single expert on the commodities market. They didn’t consult anyone from the commodities market—the regulator or ministry or exchanges or traders or clients. Was there any analysis about the commodities market, or the commodities market in the Indian context? Not even one para. The entire report is based on the capital, equities and bond markets, the credit market, the interest rate market. But nothing on the commodities market. Combining regulatory platforms under a single regulator may have its merits, but it may also create problems, especially in the Indian context. But it didn’t anticipate the 2008 financial crisis. That crisis has completely vindicated me and my commission and my ministry. The report today carries very little relevance. But these are all exchange-traded products, aren’t they? They understand some parts of the commodities market—the derivatives and instruments of the capital market and the commodities market have some common features—therefore, understanding options, futures, indices trading—these are common trading products. The trading tools and technology are also similar. But if you don’t understand the underlying commodity, the regulation will go haywire, especially in the Indian context, where the underlying commodity—the physical market—is in great disarray from various historical and other factors. Without understanding these linkages, (if you) try and trade like the capital market, (it) will do great damage to the commodities market. Second, the dynamics of this market are determined by the physical market needs. In India, the physical market requires so much reform. India is still not a single market. We are 28 markets. You don’t have a single sales tax regime. Multiple governments tax commodities left, right and centre. You have so much distortion. Today, there is a big infrastructure backlog in the commodities market. For keeping share capital, you don’t need godowns, trucking and logistics. But in commodities, you need all that. Commodities get consumed and finished; you don’t consume share certificates. The nature of requirements is so different that the futures market has to be more in tune with that (physical) market. Today, the commodities market needs to be separate, with the physical market remaining the focus. The futures market must remain faithful to the physical market needs. ravi.k@livemint.com Source: Home - Livemint.com | 14 May 2010 | 11:21 am European bailout package to help with fund flows into IndiaMumbai: Though stronger local growth potential will continue to attract funds into India, the grim situation in Europe has led to a more volatile market, Sanjeev Patni, president and head of institutional equities at Prabhudas Lilladher Pvt. Ltd, said in an interview. Edited excerpts: Now that the European bailout package has been finalized, what are its implications for the Indian market? The European bailout package in effect is the second dose of massive liquidity injection into the global financial system after the bailout by the US of financial institutions, and just like the first one, should help with the continuation of the risk trades into emerging markets and commodities as well as continued flows into markets such as India. With Indian growth standing out in the global context, the country should continue to attract robust flows aiding the market. India, anyway, does not have any direct exposure to PIIGS (Portugal, Italy, Ireland, Greece and Spain) area debt and has a strong and sustainable growth momentum of its own. The stronger growth will continue to attract flows. Also See FII Investment in India (Graphic) Which are the likely ways any European contagion could affect India and the emerging markets? Is India already feeling the heat? While the (European) package may help to ease the growing dangers of contagion across euro zone financial markets, it does not alter the fundamental need for an enormous fiscal squeeze across large parts of the euro zone. Indeed, the IMF (International Monetary Fund), EU (European Union) loans are conditional on fiscal consolidation and structural reform. As such, PIIGS economies are still in a prolonged period of economic weakness. Against that backdrop, worries about the threat of default and ultimate future of the euro are unlikely to fade away and the euro could continue to weaken. Now, with these relatively smaller countries having an impact overall on the world’s second largest currency, obviously this has much larger implications for global financial markets as well as India, and some of those concerns are already visible in the higher volatility of the market. Will the increased liquidity result in more funds flowing towards emerging markets or a flight to safety to the dollar, US treasurys, etc.? As I explained earlier, the effects of the bailout and the massive liquidity injection transpire in the form of further liquidity coming towards emerging markets, while the effect of the continuing euro crisis transpire in the form of liquidity being sucked out in the flight to safety trade to the US dollar, gold etc. Both of those factors are currently present in the (Indian) market due to which we are seeing higher volatility. Where does China fit into the picture, considering the impact of international events on India’s equity markets? China increasingly is also becoming part of global worries, as the massive stimulus that the Chinese government injected into the system last year is now transpiring in the form of heightened inflation and rising asset prices, which the Chinese government is no longer comfortable with. However, if it tries to slow down too hard, its financial system could buckle under the burden of massive non-performing loans. Right now, the world is worried about that and we will need to see how China navigates through this phase and achieves a soft landing. The biggest positive for China is the fact that the fiscal deficit in China continues to be extremely low and the debt to GDP (gross domestic product) is also low at just 20%. As such the government of China should be able to handle things due to its strong balance sheet. The Chinese concerns help growth seeking flows to be directed into India, which is beneficial for our markets and investments. ravi.k@livemint.com Source: Home - Livemint.com | 14 May 2010 | 11:12 am Who broke the rule? Everyone on Wall Street is under investigationIt is starting to feel as if everyone on Wall Street is under investigation by someone for something.Source: HindustanTimes.com - Top Business News Headlines | 14 May 2010 | 10:54 am Euro struggles, stocks fallThe euro hit an 18-month low versus the dollar and shares fell sharply on today on speculation that fiscal austerity in some euro zone countries may stifle economic growth.Source: HindustanTimes.com - Top Business News Headlines | 14 May 2010 | 10:50 am Cellphones to improve bank penetrationThe government has sought suggestions from various stakeholders to increase penetration in rural telephony, which could help expand banking network, Mahua Venkatesh reports.Source: HindustanTimes.com - Top Business News Headlines | 14 May 2010 | 10:45 am What’s the last thing Americans use cellphones for? To make a call!Liza Colburn uses her cellphone constantly. She taps out her grocery lists, records voice memos, listens to music at the gym, tracks her caloric intake and posts frequent updates to her Twitter and Facebook accounts.Source: HindustanTimes.com - Top Business News Headlines | 14 May 2010 | 10:35 am Crude Oil could touch $100 a barrel soon: MukeshReliance Industries Chairman Mukesh Ambani on Friday said crude prices could rise to $100 a barrel (Rs 4,520) soon.Source: HindustanTimes.com - Top Business News Headlines | 14 May 2010 | 10:30 am Higher 3G mop up to help promote growth, contain prices: FM - Economic Times
Source: Business - Google News | 14 May 2010 | 10:18 am Nigeria, China sign $23 bn refinery dealAbuja: Nigeria and a Chinese state firm have signed a $23 billion deal to build three refineries and a petrochemical complex in Nigeria, a world’s major oil exporter, an official statement said Friday. Nigerian National Petroleum Corporation (NNPC) and China State Construction Engineering Corporation Limited (CSCEC) signed the deal Thursday to jointly seek $23 billion in financing and credits from the China Export & Credit Insurance Corporation and a consortium of Chinese banks for the projects. “NNPC aims to accelerate the construction of new refineries in Nigeria to stem the flood of imported refined products into the country, currently estimated at $10 billion,” an NNPC statement said. CSCEC wants to “expand its presence on the African continent and establish its footprint firmly in the Nigerian oil and gas landscape,” the statement said. The refineries are expected to add some 750,000 barrels per day capacity in Nigeria and position NNPC in the international trading of refined petroleum products, it said. Source: World Business - Livemint.com | 14 May 2010 | 3:37 am
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