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Rate hike not to deter India\'s growth: HDFC\'s Aditya PuriMost analyst believe that a rate hike by the Reserve Bank of India is imminent, but Puri agrees that a slight hike in the interest rates would not affect growth.Source: Moneycontrol Top Headlines | 26 Jun 2010 | 8:27 am Oil pricehike may have push inflation higher: JSW SteelHigher fuel prices, means higher transportation costs and maybe even higher interest rates. Seshagiri Rao, Joint MD and Group CEO of JSW Steel said in an interview to CNBCTV18 that oil pricehike will have a cascading impact pushing the inflation further.Source: Moneycontrol Top Headlines | 26 Jun 2010 | 7:22 am Sensex ends flat after hitting 10-week high - Hindustan Times
Source: Business - Google News | 26 Jun 2010 | 3:27 am Cost for new Iraq refineries seen at $20 blnBAGHDAD (Reuters) - The estimated cost of building four new refineries in Iraq to add some 740,000 barrels per day of refining capacity is more than $20 billion, Iraqi Oil Minister Hussain al-Shahristani said on Saturday.Source: Reuters: Money News | 26 Jun 2010 | 3:21 am Sensex ends flat after hitting 10-week highThe BSE benchmark Sensex failed to maintain the initial gains due to heavy profit booking mainly in banking and IT sectors, despite fag-end buying in oil and gas sector, driven by a hike in petrol prices.Source: HindustanTimes.com - Top Business News Headlines | 26 Jun 2010 | 3:20 am Valuation of upstream oil cos to improve post hike: Tulsian - Moneycontrol.com
Source: Business - Google News | 26 Jun 2010 | 3:14 am Dubai ruler says will go ahead with all projects - CNNDUBAI (Reuters) - Dubai's ruler said the emirate would go forward with all development projects within a year in an interview with CNN broadcast on Friday, after billions of dollars worth of projects were cancelled in the wake of the global financial downturn.Source: Reuters: Money News | 26 Jun 2010 | 3:03 am Mahindra to invest $54 mln in aerospace - chiefBANGALORE (Reuters) - Mahindra & Mahindra, India's top utility vehicle and tractor maker, plans to invest 2.5 billion rupees ($54 million) into aerospace business, its Managing Director Anand Mahindra said on Saturday.Source: Reuters: Money News | 26 Jun 2010 | 2:58 am G-20 leaders to discuss ways to ensure balanced growthLeaders of the world's developed and major emerging economies are meeting here tomorrow to discuss strategies for ensuring a balanced and sustainable growth, even as India favours calibrated exit strategies and is opposed to any universal tax to fund bail out of banks.Source: HindustanTimes.com - Top Business News Headlines | 26 Jun 2010 | 2:19 am Leaders play down austerity split on eve of G20 - Reuters
Source: Business - Google News | 26 Jun 2010 | 1:52 am Market Speaks: Wheat Plummets On Open Market Sale Of Government Stocks - India Infoline.com
Source: Business - Google News | 26 Jun 2010 | 12:35 am A smart turnaround on UK immigration policyOne of the most divisive issues for the new coalition Government in Britain has been immigration. The Labour Government had a points-based system, where decisions on who to let in was based on “points” they accumulated based on skillsSource: Business Line - Home Page | 26 Jun 2010 | 12:00 am Reliance Ind, RNRL in new gas supply dealReliance Industries and Reliance Natural Resources have entered into a new gas supply agreement, as directed by the SupremeSource: Business Line - Home Page | 26 Jun 2010 | 12:00 am SAP Labs logs on to new strategy to improve efficiencySAP Labs India is shedding some of its traditional diffidence as it attempts several “game-changing” tactics in response to the changing marketSource: Business Line - Home Page | 26 Jun 2010 | 12:00 am Oil companies get freedom to fix petrol pricesAgainst all odds, the Government on Friday decided to give a free hand to oil companies to determine petrol prices in line with the marketSource: Business Line - Home Page | 26 Jun 2010 | 12:00 am Broadband wireless access spectrum to be released next weekOperators who won broadband wireless access (BWA) spectrum will get at least a two-month head start over 3GSource: Business Line - Home Page | 26 Jun 2010 | 12:00 am Little room for savings in a stretched budgetThe monthly budget of the aam aadmi is likely to go haywire following the de-control of fuel prices and the subsequent hike in costs of petrol, diesel, LPG andSource: Business Line - Home Page | 26 Jun 2010 | 12:00 am Truck rentals set to rise 5%Road freight rates will go up by nearly 5 per cent per cent with immediate effect following the Rs 2-a-litre hike in dieselSource: Business Line - Home Page | 26 Jun 2010 | 12:00 am Jay Shree Tea looking for properties overseasJay Shree Tea & Industries Ltd is looking at acquisitions of tea propertiesSource: Business Line - Home Page | 26 Jun 2010 | 12:00 am Oil cos' stocks rallyOil and gas companies' stocks surged on Friday after the Government freed petrol prices and said it would deregulate diesel pricesSource: Business Line - Home Page | 26 Jun 2010 | 12:00 am Do hikes in price impact petrol, diesel consumption?Does a hike in price of petrol and diesel impact consumption – either lead to a drop orSource: Business Line - Home Page | 26 Jun 2010 | 12:00 am INTERVIEW - Fed's Bullard sees two-year limbo period for banksWASHINGTON (Reuters) - U.S. financial firms are headed into a two-year limbo period as regulators fill in the blanks left in the massive reform legislation, St. Louis Federal Reserve Bank President James Bullard said.Source: Reuters: Money News | 25 Jun 2010 | 11:59 pm IMD to study monsoon pattern, revise dates - The Hindu
Source: Business - Google News | 25 Jun 2010 | 11:51 pm Kimberley Process meet over Zimbabwe ends in impasseIn what could further dent the image of diamond industry, the 2010 inter-sessional meet of Kimberley Process ended in an impasse late on Thursday.Source: Daily News & Analysis: Money News | 25 Jun 2010 | 10:58 pm Hyundai to launch Santa Fe by year-endThe company plans to launch Santa Fe by November this year. HMIL also proposes to enter into the small car segment (800cc) in the next two years.Source: Daily News & Analysis: Money News | 25 Jun 2010 | 10:55 pm Essar, L&T flout Coastal Regulation Zone Act?Highly placed sources in the state government said, 'In a recently concluded meeting the Gujarat Coastal Zone Management Authority, which met after almost three years, criticised many companies including the GPCB.'Source: Daily News & Analysis: Money News | 25 Jun 2010 | 10:51 pm U.S. stocks eye jobs as economic worries lingerNEW YORK (Reuters) - Stock investors will anxiously await the crucial June jobs data next week for clues on how the U.S. economy may weather recent storms that drove Wall Street's major indexes down for the year.Source: Reuters: Money News | 25 Jun 2010 | 10:30 pm New U.S. oil rigs face inspections, fines in proposed lawWASHINGTON (Reuters) - New U.S. oil rigs and wells would face strict new design and inspection rules under a draft law circulated by a key House of Representatives committee on Friday.Source: Reuters: Money News | 25 Jun 2010 | 10:18 pm It is now time for Bangalore-Japanese bhai bhaiToyota's success seemed like the central motif as Japanese ambassador to India, Hideaki Domichi, asked his countrymen-industrialists to rework on their perception of India.Source: Daily News & Analysis: Money News | 25 Jun 2010 | 10:03 pm Leaders play down austerity split on eve of G20HUNTSVILLE, Ontario (Reuters) - The world's richest economies, saddled with huge debts after spending their way out of the credit crisis, papered over differences on Friday on how to clean up their finances with minimal damage to growth.Source: Reuters: Money News | 25 Jun 2010 | 9:09 pm 'Decision on diesel likely soon'Deregulation of petrol prices is expected to change the fortunes of state-owned oil marketing companies and to bring competition in the market by allowing each player to quote different prices for its products.Source: Daily News & Analysis: Money News | 25 Jun 2010 | 5:44 pm Kirit Parikh panel report watered downThe outcome is a congeries of compromises reminiscent of the ad-hoc steps taken on previous occasions.Source: Daily News & Analysis: Money News | 25 Jun 2010 | 5:41 pm Deregulation of oil likely to improve price stabilityIt reinforces the impact of similar moves across Asia and the Middle East.Source: Daily News & Analysis: Money News | 25 Jun 2010 | 5:37 pm Inflation seen darting up 100 bpsEconomists said the direct impact will be felt in the June inflation number to some extent while following months will see its indirect impact too.Source: Daily News & Analysis: Money News | 25 Jun 2010 | 5:32 pm Set freeThe biggest gainers were the stocks of the three state-owned oil marketing companies (OMCs) --- HPCL gained 13.66%, BPCL 12.84% and IOC 10.39%. The stocks of state-owned upstream players ONGC (6.35%) and Oil India (4.62%) also rose.Source: Daily News & Analysis: Money News | 25 Jun 2010 | 5:26 pm Broadband spectrum right away, 3G laterThere won't be any 3G spectrum auction for at least another two and a half years.Source: Daily News & Analysis: Money News | 25 Jun 2010 | 5:24 pm Private oil companies to go full throttle with expansion - Economic Times
Source: Business - Google News | 25 Jun 2010 | 5:15 pm U.S. lawmakers seal deal on historic Wall St reformWASHINGTON (Reuters) - U.S. lawmakers hammered out a historic overhaul of financial regulations on Friday, handing President Barack Obama a major domestic policy victory on the eve of a global summit of world leaders.Source: Reuters: Money News | 25 Jun 2010 | 4:19 pm Force India to launch young driver academyForce India will set up a young driver academy to bring \'an Indian Lewis Hamilton\' from karting to Formula One, team owner Vijay Mallya said on Friday.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 4:07 pm India cannot go back on settlement: Bhardwaj - The Hindu
Source: Business - Google News | 25 Jun 2010 | 3:33 pm MSMS cancels all future payments to WSG AsiaMSMS, the broadcasters of the Indian Premier League has cancelled all future payments to World Sports Group Asia. Furthermore, it has even initiated legal action against WSG buy filing a law suit in the Bombay High Court to reclaim the Rs 125 crore that has already been paid.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 3:12 pm Tata Motors to set up assembly unit in South Africa - Economic Times
Source: Business - Google News | 25 Jun 2010 | 3:00 pm Now RComm users can call US, Canada at Rs 1.99/minute: SrcsReliance Communication has brought the tariff war to international call segment. CNBCTV18 learns that the company has slashed international call rates by 60% to Rs 1.99 per minute for countries such as US and Canada.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 2:34 pm Maytas Infra to consider share issue July 19Maytas Infra said on Friday it will hold an extraordinary general meeting on July 19 to consider issuing 1.54 million shares to SBG Projects Investments.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 1:50 pm And the award goes to....New Delhi: A quest to change the world could always use a little help. And as many people working in the social entrepreneurship space can testify, the task of empowering, uplifting and changing lives is not an easy one. Truly effective change involves good coordination, models that work, funds, and exposure to the right forums and people. Listen to a podcast with one of the last years winners Rajendra Joshi of SAATH, where he talks about the benefits that both he and his organization received as a result of winning the award The Indian social entrepreneurship of the year award was set up in 2005 by the Schwab Foundation for Social Entrepreneurship, to give promising individuals and organizations at the stage of scaling/replicating their ideas across India and other countries, the kind of help and recognition they need to do just that. It provides a platform to showcase work, important networking opportunities and exposure at prominent international forums such as the regional and annual meetings of the World Economic Forum, and the young global leaders. Nominations for this years award, organized by the Schwab Foundation for Social Entrepreneurship and the Jubilant Bhartia Foundation in collaboration with Hindustan Times and Mint opened on 21 June and will close on 7 July. The winner (or winners) will be announced at the India economic summit in November after a five-step selection and pruning process. Last years winners of the award included Brij Kothari of Planet Read and Bookbox (Ahmedabad-Pondicherry), Padmanabha Rao and Rama Rao of RIVER (Madanapalli, Andhra Pradesh) and Rajendra Joshi of SAATH (Ahmedabad). More information on rules, process and how to enter can be found here. ayeshea.p@livemint.com Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 1:45 pm Ambani brothers sign gas sale pact - Business Standard
Source: Business - Google News | 25 Jun 2010 | 1:04 pm Companies to get BWA spectrum 'immediately' - Economic Times
Source: Business - Google News | 25 Jun 2010 | 1:03 pm Wii scores with service but Nokia’s on holdIt’s been a fortnight of gadget acquisitions at the Sukumar household. First, the son, just back from visiting cousins in Bangalore wanted a Wii (he had seen one at his cousins’ house). So, one was acquired for him, with an extra remote and nunchuk for the child in his father. Then this writer’s BlackBerry collapsed after three years of yeoman service. The breakdown happened during a visit to the Kumaon hills so your favourite columnist (I’m not? Then why are you reading this?) was left literally high and dry. So, soon after returning to Delhi, I acquired a BlackBerry Bold 2 (very nice, thank you). The wife wanted a new phone too and since she has always been a Nokia person, she bought a Nokia E71. Then there is the Kindle (alas, bought before the prices were dropped) which is in transit, and yes, an iPad is definitely on the horizon. But this column is actually about the Wii and the Nokia. You see, the wife, fairly tech literate and all that was unable to configure her mail on the Nokia. And after a particularly energetic game of tennis featuring father and son, one of the Wii remotes collapsed. It refused to sync with the mother unit. So the manual was read, the trouble-shooting tips sought, and when that didn’t work, local customer service turned to. It emerged that the local customer service centre was in Ajmer, which is where the company that imports Wiis is based. The wife and I were convinced we would have to write off the remote and buy a new one but we still made that call to Ajmer. Or actually, she did. A customer service person at the other end asked her to courier the remote to him (in Ajmer) and said that a repaired remote would be returned within a week.  Illustration: Jayachandran/Mint Now, juxtapose that experience with what the wife has been going through with her phone. Customer service didn’t respond for well nigh 10 days, then called to say they had found a way around the problem, and have, since then, missed two scheduled calls to explain the solution. Events earlier this week almost prevented me from writing this column. On Wednesday, we reported that Nokia had lost around 11 percentage points in market share in the past year. And on Thursday, in an editorial, we commented on why we thought the company was not doing as well as it once had in India (although we did concede that the company was doing well—a 52% market share isn’t insignificant). Given that background, this column may seem a bit like kicking someone who is already down (or, actually, repeatedly kicking someone who is already down), but is, to my mind, another point of data that possibly explains what is happening at Nokia. Admittedly, Nokia sells several million phones as compared to the few thousand units that Nintendo does, but surely, customer service cannot be inversely proportional to volume of sales? Or can it? Write to acuteangle@livemint.com Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 1:03 pm IL, Maytas set for global play with BinladinJV formed for Saudi infra projects, focus on contracts from other countries as well.Source: Business Standard | Front Page Headlines | 25 Jun 2010 | 12:45 pm Lawmakers agree on Wall St overhaulCongressional negotiators today approved the most sweeping overhaul of US financial regulation since the Great Depression, reshaping oversight of Wall Street.Source: Business Standard | Front Page Headlines | 25 Jun 2010 | 12:43 pm MSM to pay BCCI Rs 425 cr more for IPL broadcastsThe Board of Control for Cricket in India (BCCI) today said it had got MSM Satellite (Singapore) Pte Ltd, the broadcasters of the Indian Premier League (IPL) matches, to accept an amended media rights agreement. By the new pact, MSM will pay BCCI an additional Rs 425 crore for the broadcasting rights. The money will be divided between the franchisees and the board, based on a revenue share model.Source: Business Standard | Front Page Headlines | 25 Jun 2010 | 12:42 pm Govt frees petrol, diesel pricesIt was all stitched up at a one-on-one meeting between Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee last week. Once the decision was taken, the Minister for Petroleum and Natural Gas Murli Deora was told to fall in line. The time had come, he was told, not just for an increase in petrol and petro-product prices but also for deregulation of these prices.Source: Business Standard | Front Page Headlines | 25 Jun 2010 | 12:38 pm RIL signs gas supply accord with RNRLMumbai: Reliance Industries Ltd (RIL) and Reliance Natural Resources Ltd (RNRL) signed a revised gas supply master agreement (GSMA) on Friday, which, subject to approval from the government, will give the latter access to the fuel it badly needs for an ambitious power plant. The agreement was “pursuant to and in compliance with the directions and orders contained in the judgment of the Honourable Supreme Court”, the two companies said in identical releases on Friday. The agreement is compliant with the gas utilization policy of the Union government and the decision of the empowered group of ministers, RIL said. The accord follows the recent rapprochement between the Ambani brothers Mukesh and Anil, who had been feuding over various issues, including the price of gas that RIL will supply to RNRL. RNRL, the gas trading unit of the Reliance-Anil Dhirubhai Ambani Group (R-Adag), said the company “will now take appropriate steps requesting the government of India for expeditious allocation of natural gas to facilitate implementation of the same”.  Graphic: Paras Jain / Mint A person familiar with the development said, however, that the agreement signed on Friday only entailed a commitment from RIL to supply gas at the terms and conditions fixed by the Union government, as and when these are set. Both persons spoke to Mint on condition of anonymity. Although it wasn’t immediately clear when RIL would start supplying gas to RNRL, RIL chairman Mukesh Ambani had told shareholders during the annual general meeting of the firm on 18 June that “as and when the power plants of Adag are ready to receive gas, we would commence supplies to them subject to government granting allocations to these plants in the same manner as we do to all other plants to whom government has allocated gas from the KG D6 gas field”. Analysts said that Friday’s development had little significance until it received government sanction. “The signing of the agreement is not significant by itself as the government is yet to allocate the gas to RNRL,” said Arun Kejriwal, director of Kejriwal Research and Investment Services. “Based on what the government has said so far, the implication appears to be that gas being a scarce natural resource would only be available for manufacturing purposes as and when the power plant being built by Reliance Power is ready to receive the gas.” Reliance Power Ltd runs the power generation business of R-Adag and is setting up a 7,480MW gas-based plant at Dadri in Uttar Pradesh. An analyst with an international audit and consulting firm said the price was as expected “as that was the government-stipulated level”. The analyst, who didn’t want to be named, stated that the revised GSMA had no bearing on RIL as it did not matter who bought the gas from the company as long as it got the right price for it. “However, whether RNRL would get the quantity of gas it wants remains to be seen as new gas-based power plants figure low on the priority list of the government as it has plans for thermal ultra mega power projects and other entities such as fertilizer plants are also in queue to receive gas,” he said. Giving a decisive verdict on a four-year-old gas dispute, the Supreme Court on 7 May had stated that the gas-sharing agreement signed by the brothers during a family settlement that divided the Reliance empire was not binding “legally and technically” and asked the two sides to renegotiate GSMA in line with government regulations, as the KG basin gas was recognized as a sovereign asset. The two companies were given a timeframe of 14 weeks from the date of the judgement for renegotiations. As per the original family settlement, RNRL was to receive gas from RIL at a price of $2.34 per mmBtu, but the latter said it would be unable to supply the fuel at a price lower than that mandated by the government. The share prices of RIL and RNRL outperformed the Sensex, the benchmark equity index of the Bombay Stock Exchange, on Friday. RIL gained 1.14% to Rs1,063.25, while RNRL rose 3.29% to Rs65.95, gaining the most among the listed R-Adag firms. The Sensex shed 0.88% to close at 17,574.53. Source: Home - Livemint.com | 25 Jun 2010 | 12:38 pm Trimex plans Rs4,000 cr investmentsHyderabad: Trimex Sands Pvt. Ltd, part of Chennai-based mining firm Trimex Group, has planned investments of Rs4,000 crore for the next eight years to expand its operations. “The immediate plan is to invest some Rs1,200 crore to set up another mineral separation facility at Bhavanapadu, close to the existing facility at Srikurmam (in Andhra Pradesh),” group chairman Rajendra Prasad Koneru told reporters on Friday. Trimex Sands is set to begin commercial operations of another facility separating heavy minerals from beach sands, involving an investment of Rs250 crore, he added. Prasad said the company will eventually produce titanium metal and other value-added mineral products used in high-tech applications. Trimex group has three mining licences covering 40 sq.km. of beach sand on India’s east coast, some 15km from Srikakulam, comprising proven reserves of some 18 million tonnes of ilmenite, an ore of titanium. “We have started exporting minerals worth Rs18 crore a month on an average and expect some Rs200 crore of revenue with net profit margin of some 30% during the first year of operations,” said executive director Pradeep Koneru. Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 12:31 pm Oil mkting cos cheer govt\'s move to free fuel pricesOil marketing companies (OMCs) have rallied hard on the back of the move to free up fuel prices gaining between 1013%. Most OMCs chiefs express relief at the elbow room now given to them on prices.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 12:27 pm Andhra high court grants bail to auditors in Satyam caseHyderabad: The Andhra Pradesh high court on Friday granted bail to two auditors accused in the multi-crore accounting fraud at Satyam Computer Services Ltd, now rebranded Mahindra Satyam. Price Waterhouse auditor S. Gopalakrishnan and Satyam’s former internal audit head V.S. Prabhakar Gupta are accused of conniving with B. Ramalinga Raju, the software company’s founder, in the Rs7,136 crore fraud that came to light in January 2008. Price Waterhouse, an arm of audit firm PricewaterhouseCoopers (PwC), was Satyam’s auditor. Gopalakrishnan had been denied bail by the high court only four months back, even as Srinivas Talluri, the other Price Waterhouse auditor accused in the case, was granted bail by the Supreme Court. The high court said the basis for granting bail to Talluri applied to Gopalakrishnan and Gupta as well as the commencement of the trial was expected to take long given the voluminous evidence and large number of witnesses. Gopalakrishnan and Gupta have been asked to report to the Central Bureau of Investigation daily and furnish sureties of Rs40 lakh each. Natco Pharma Q4 profit rises 36% Hyderabad: Natco Pharma Ltd on Friday said its consolidated net profit for the fourth quarter increased to Rs15 crore from Rs11 crore in the same year-ago period. Its revenue for the three months to 31 March, however, declined 4.5% to Rs128 crore. For fiscal 2009-10, the Hyderabad-based firm’s consolidated profit rose 11% to Rs48 crore as revenue climbed 3% to Rs477 crore on higher sales in its oncology and dosage formulations business. Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 12:23 pm UPA bites reform bulletNew Delhi: In a bold political gambit, the Congress-led United Progressive Alliance (UPA) government decontrolled petrol prices and raised those of diesel, liquefied petroleum gas (LPG) and kerosene. The decision will further stoke inflation, which is already running in double digits, and leave the alliance politically vulnerable weeks before the monsoon session of Parliament. The long-awaited decision will help the government trim its fiscal deficit, strengthen the finances of oil marketing companies (OMCs) and promote the use of more energy-efficient technologies. Petrol prices went up by Rs3.50 per litre, diesel by Rs2 per litre, kerosene by Rs3 per litre and LPG by Rs35 per cylinder at midnight. Fears that higher inflation could force the Reserve Bank of India to raise interest rates earlier than expected spooked the bond market. Yields on benchmark 10-year paper opened at 7.59%, jumped to 7.68% intraday and closed at 7.65%. Importantly, the government has retained the option to intervene if international oil prices turn volatile. Petroleum secretary S. Sundareshan said: “While the periodicity of revision in petrol prices has not been fixed as petrol is a sensitive item, in cases of extreme volatility of international prices of crude, the government will intervene.”  Graphic: Yogesh Kumar / Mint This is the second time in 13 years that a government is revisiting the idea of linking domestic and international fuel rates. India first moved towards decontrolled fuel prices in 1997, in the dying days of the United Front government. The decision was incrementally rolled back by the Bharatiya Janata Party (BJP)-led National Democratic Alliance after it came to power for the second time in 1999. The UPA government created the context for reforms after a committee chaired by former Planning Commission member Kirit Parikh submitted its findings in February. Its key recommendations, which have been partially accepted, included complete deregulation of petrol and diesel pricing, increase in kerosene prices by Rs6 per litre and LPG by Rs100 per cylinder. In end-April, the UPA constituted an empowered group of ministers (eGoM), headed by finance minister Pranab Mukherjee, to take up the Parikh committee recommendations. Other members of the panel were agriculture minister and Nationalist Congress Party chief Sharad Pawar, fertilizer minister M.K. Alagiri of the Dravida Munnetra Kazhagam, Trinamool Congress leader and railway minister Mamata Banerjee, roads minister Kamal Nath, petroleum minister Murli Deora and power minister Sushil Kumar Shinde. Banerjee, Nath and Montek Singh Ahluwalia, deputy chairman of the Planning Commission, did not attend the eGoM meeting on Friday. Banerjee criticized the fuel price hikes, but said she would not leave the ruling coalition. The BJP and the four Left parties demanded that the price rise be rolled back. Its diminished numbers in the Lok Sabha could potentially leave the UPA vulnerable when Parliament resumes. In the 543-member Lok Sabha, the UPA has a total strength of 259. With some outside supporters, its strength goes up to 280-plus. When it regained power last year, the UPA had the support of over 300 members in the House. Though most Congress leaders believed the move was inevitable, a section of party leaders was critical. “The hike will definitely give rise to resentment against the government among the middle class. Having said that, what is also true is that after the hike in CNG (compressed natural gas) prices, this was inevitable,” said a senior Congress leader, who did not want to be identified. Economists believe the fuel price hikes could result in a one-time push to inflation by about 0.9 percentage point. Wholesale price inflation was 10.16% in May. But the projection by the Met department of a normal monsoon is expected to dampen inflationary sentiment.  Graphic: Yogesh Kumar / Mint Arguing similarly, Kaushik Basu, chief economic adviser, said, “Since these changes will cause the fiscal and revenue deficits (through a reduction in subsidy payments) to decline, they will exert a downward pressure on prices.” Basu also dwelled on the reform aspect of the UPA’s decision and argued: “If there is a global shortage and the international price of crude rises, this signal will be transmitted to the Indian consumer. It will rationalize the way we spend money, the kinds and amount of energy we use, and the cars we manufacture. It is an important step in making India a more efficient, global player.” Another government official, who did not want to be identified, maintained that the move would give an impetus to companies to invest in energy efficient technologies and a shift towards public transport. “To be honest, what decontrol means in the Indian scenario is increase in cost. And energy efficiency obviously increases,” he said. Manufacturers of raw materials maintain that the increase in freight prices would force them to raise prices. “Freight is a major cost component for cement companies and this hike will increase the cost by at least 6%. Prices may go up by Rs40 per tonne especially for regional players who use trucks for transportation. Companies may not be able to pass on the hike to consumers till the end of the monsoon, so I expect about a 25 basis points impact on cement margins,” said Rupesh Sankhe, analyst at Angel Broking Ltd. Similarly, the Railways will have to absorb an increase in operating expenses of about Rs500 crore. The total fuel bill of the Railways was Rs4,500 crore in 2009-10. At the same time, companies such as Reliance Industries Ltd and Essar Oil Ltd will potentially be able to re-enter the business of marketing fuel products. These companies had, after initially making an entry, exited when the government reintroduced administered pricing and a subsidy regime, which was reserved only for government-owned OMCs. “The company was earlier looking to expand its fuel retail outlets to 1,700 from 1,473 at present, by March 2011, but following the deregulation, the process of expansion would be advanced,” said S. Thangapandian, chief executive (marketing) at Essar Oil. sangeeta.s@livemint.com Joel Rebello, Aveek Datta and Anup Roy from Mumbai, and Bhavna Raghuvanshi, Tanya Mendiratta, Ruhi Tewari and Rahul Chandran from New Delhi also contributed to this story. Source: Home - Livemint.com | 25 Jun 2010 | 12:23 pm Sunil Mittal: Empowering India through educationSunil Bharti Mittal, Chairman and CEO ,Bharti Enterprises is a man with an appetite for risk in one of Indias aggressive entrepreneurs, but he is clear, he wants to be known more than just Indias telecom Czar. He wants to be known for creating a lasting and sustainable business and for creating shared values in the community he services.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 12:20 pm Provogue arm to develop 300,000 sq feet in AurangabadApparel retailer Provogue India Ltd said its joint venture Prozone Enterprises will develop 300,000 square feet of real estate in Aurangabad starting October this year, Managing Director Nikhil Chaturvedi said on Friday.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 12:16 pm Greece puts islands up for sale to save economyThere’s little that shouts “seriously rich” as much as a little island in the sun to call your own. For Richard Branson it is Neckar in the Caribbean, the billionaire Barclay brothers prefer Brecqhou in the Channel Islands, while Aristotle Onassis married Jackie Kennedy on Skorpios, his Greek hideway.Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 12:11 pm Rs 27-lakh Prius arrives: loaded with green, short on styleAs the world’s most loved and best selling hybrid car with a legacy that is well into its second decade, the Toyota Prius has become the benchmark for affordable green technology in the automotive space. This is one vehicle that may be driven like any other, it cant be judged like one.Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 12:09 pm Quick Edit | Tempus fugitThe epic tennis match between John Isner and Nicolas Mahut lasted 11 hours and 5 minutes. This battle in some ways is a reminder of a world that has been swamped by the culture of instant gratification and shorter attention spans. We live in a world in which opinion can be tweeted in haiku-like 140 characters, poring over reference books has been replaced by the quick Google search, reading has been replaced by skimming through online content, multitasking has become a badge of honour and relationships melt over weekends. Brevity and speed do have their advantages. How can we forget that this column is called a Quick Edit? But Isner and Mahut have reminded us that there is value and even a certain majesty in human endurance and patience—the sort many of us once applied over long hours to conquer a tough math problem or to save a local cricket match in the dying light. Source: Home - Livemint.com | 25 Jun 2010 | 12:03 pm Noel Tata takes a step into Tata group’s upper echelonsMumbai: Noel Tata, 53, took a small, but significant step into the upper echelons of the Tata group when on Thursday he was appointed non-executive chairman of Tata Investment Corp. Ltd, a listed investment firm that has substantial stakes in Tata group companies. This is the first time Noel Tata has been appointed chairman of a Tata company. He currently steers retail firm Trent Ltd as its managing director. Tata Investment is a subsidiary of Tata Sons Ltd, the main holding company of the group. The career of Noel Tata is one of the most closely watched ones within the Tata group. He is half brother of Ratan Tata and son-in-law of Pallonji Mistry, the largest single shareholder of Tata Sons thanks to his 18% stake. Noel Tata is married to Aloo, whose brothers Shapoor Mistry and Cyrus Mistry are on the boards of Tata group companies such as Indian Hotels Co. Ltd and Tata Power Co. Ltd. Cyrus Mistry is also a member on the board of Tata Sons. A senior Tata group official insisted that too much should not be read into the appointment. “It (the move) is not going to create big ripples in the corridors of Bombay House.” He did not want to be named as he is not authorized to speak on the matter. Bombay House is the Tata group headquarters in Mumbai.  Soonawala had earlier expressed his intention to retire from Tata group companies on reaching 75 years, the mandatory age for retirement for non-executive directors of Tata group companies. Notices on Soonawala’s desire to step down have been issued to stock exchanges by listed group companies. Ratan Tata turns 74 in December and guessing who his successor will be has been a bit of a sport in corporate circles. F.N. Subedar, a close Soonawala aide, and seen as his protégé, has been appointed vice-chairman of Tata Investment. Subedar is expected to advise Noel Tata on key matters. Source: Home - Livemint.com | 25 Jun 2010 | 11:56 am Cheaper than neighboursThe prices of kerosene and cooking gas in India are still significantly lower than the prevailing prices in neighbouring countries, the government said on Friday. How much cheaper?Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 11:52 am Oil company Stocks soarThe government’s decision to partially deregulate the fuel prices lifted the stock prices of the oil marketing companies, even as the Bombay Stock Exchange benchmark Sensex fell 155 points or 0.9 per cent.Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 11:50 am Monsoon forecast up, may rein in pricesNew Delhi: In what could temper food price inflation and marginally offset wholesale price inflation, the India Meteorological Department (IMD) raised its monsoon forecast estimate by four percentage points. Monsoon rainfall, the weather agency said, is expected to spread evenly across the country and, therefore, boost kharif—or summer crop—cultivation. This seasonal crop is the key contributor to India’s rice and maize—key cereals in the country’s agricultural basket—and sufficient sowing contributes to increased grain reserves. The updated forecast was keenly awaited given last year’s drought—the worst in three decades. This led to a significant reduction in the kharif crop acreage and contributed to double-digit food inflation, now at 16.9%, prevailing since 19 months. In April, the nodal weather agency had said rainfall between June and September would be 98% of the 50-year-average. On Friday, the department lifted its estimates to 102% of the normal, indicating heavy rainfall over the key monsoon months of July and August. The June-September monsoon generates nearly 80% of the annual rainfall over the country and is vital for the economy, being the main source of water for agriculture, which generates about 17% of India’s gross domestic product. Other than the 60% of the country’s workforce that depends on agriculture, the rains are also important for traders dealing in food and cash crops as any shortfall injects volatility into the markets. Last year’s drought had also forced India to import a record 5 mt of sugar and become the world’s top edible oil importer as it shipped in more oils than China. The sowing of rice, India’s key summer crop, was down by 20% and water levels in reservoirs were down to 60% of their 10-year average during the monsoon months. Even spatially, meteorologists say, the monsoon rainfall is expected to be in excess across the geographical subdivisions of the north-west, north-east and the south peninsula, with only a 1% deficit expected across central India. “June rainfall is 11% short as of now. However, the monsoon’s active phase (continuous rain) is expected to set in by July. Already signs of the monsoon’s imminent progress towards north India are apparent,” said Ajit Tyagi, director general of IMD. The weather agency’s increased confidence also stems from a pattern of still-developing sea-surface temperatures in the Pacific Ocean, called La Nina. This weather phenomenon, meteorologists say, always causes normal or excessive rainfall over India. “La Nina conditions have already set in over the central Pacific and historically, La Nina years that follow an El Nino year (such as in 2009) have always brought very good rainfall,” said Sivanand Pai, director (forecasting) at IMD. “Twenty-eight out of 30 such years since 1901 have seen excess or normal rainfall.” Almost 60% of the monsoon rainfall takes place in July and August, making them the key months for sowing rice and maize, the most prominent of the summer crops. Independent meteorologists also struck a positive note. “The conditions have been favourable for a good monsoon for nearly two months,” said Madhavan Rajeevan, a meteorologist with the Indian Space Research Organisation. “So I’m not surprised with the upward revision.” The agency defines normal rainfall as and when the country, between June and September, gets an average of 89cm of rain, called the long-period average (LPA), or a 50-year average. Rainfall at 85.4-92.5cm (or 96-104% of LPA) is classified as “near normal”, as is with this year’s forecast. Rainfall at less than 90% is called a drought. Importantly though, IMD’s forecast models have an in-built error range of 5%. S. Raghuraman of the Delhi-based commodity research outfit, Agriwatch, said that increased rainfall after mid-August didn’t bode well for crops. “The updated forecasts are good as long as it rains on time. Excessive rains during August and September tend to destroy standing crops. So, we have to hope for a normal July more than anything else.” With inflation already near 10.16% compared with last May, the Reserve Bank of India is expected to hike interest rates by at least 25 basis points (bp) in its July policy review after it raised rates twice, by a total of 50 bp, since mid-March to cool prices. Reuters contributed to this story. Source: Home - Livemint.com | 25 Jun 2010 | 11:48 am Pvt refiners back in bizThe Union Government’s decision to de-regulate petrol and diesel prices is likely to see the re-entry of private fuel retailers such as Reliance Industries, Essar Oil, Shell Petroleum and others.Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 11:47 am US lawmakers agree on historic Wall St reformsUS lawmakers on Friday finalised a historic overhaul of financial regulations as dawn broke over Capitol Hill, handing President Barack Obama a major domestic victory on the eve of a global summit devoted to financial reform.Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 11:45 am Lounge podcast | Talk your way to pedalling nirvanaPedalling can take you places! Welcome to the cycling special edition of the Lounge podcast. This week we do away with our regular film and book review features to speak at length with cycling whiz Arun Katiyar, the author of this week’s cover story. Arun tells us about the social merits and demerits of the sport. He also sheds light on the controversy on how cycling can affect your sex life. In 2008, Arun was part of the team that did the country’s longest bicycle ride. This eight-day, 1000 plus km tour of the Nilgiris was a first. He is sufficiently equipped to be your cycling guru. Next up we have Samim Rizvi on the line with us. Samim is the first Indian to participate in the Race Across America, an ultra marathon bicycle race across the United States that started in 1982. The RAAM, as it is known, is among the most extracting annual endurance events in the world. I hope at least some of you are inspired. Here’s toasting to some pedalling nirvana. Have a great weekend. Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 11:43 am RIL, RNRL sign revised new gas supply master agreementA month after the Supreme Court’s judgement settling the five-year gas dispute between the Ambani brothers, Mukesh Ambani’s RIL and Anil’s RNRL on Friday announced the signing of a revised gas supply master agreement (GSMA), reports HT Correspondent.Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 11:42 am Oil pricehike: cars to cost more by JulyIt is a cheerful time for the auto industry. After the government has decided to increase petrol and diesel price, auto makers are also planning to hike auto price.Source: Moneycontrol Top Headlines | 25 Jun 2010 | 11:41 am The Week in Review for 25 June 2010Prepare to pay more at the pump. On Friday a group of ministers decided to free up petrol prices and increase the prices of other fuels. Petrol prices are now free of government subsidies and are up by Rs3.50 per litre. Diesel prices have increased by Rs2 per litre. And even kerosene, used by India’s poor, will see a price rise of Rs3 per litre. Also significantly, cooking gas prices will go up by Rs35 a cylinder. Friday’s decision is likely to increase inflationary pressures, but it could help the government contain a fiscal deficit that’s now projected at 5.5% of GDP. The decision is also likely to make it easier for private companies like RIL and Essar Oil to start retailing fuels again. In other news, RIL and R N R L signed a gas supply master agreement on Friday. If it gets government approval, the pact will give RNRL access to gas from RIL. In a statement RNRL said it would seek what “expeditious allocation of gas”. But it’s still not clear how much gas R I L will supply and when. Friday’s development was the latest in a series of understandings between the Ambani brothers. Last month they put an end to agreements that prevented them from competing with each other. Also this week, Reliance Industries announced a major expansion of its US operations. The company said it would buy a 45% stake in an American shale gas field run by Pioneer Natural Resources. The deal is worth $1.32 billion. In April, R L paid $1.7 billion to buy into an Atlas Energy field in the US. Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 11:29 am In the name of the motherThe photograph that 62-year-old Khwairakpan Mangi tenderly draws out from her little brown bag is that of a painting. The visual is of a marketplace where a mustachioed Manipuri man is being offered a hookah by a woman—the man’s placatory expression in keeping with the woman’s haughty demeanour. The scene represented here, says Mangi, dates back many centuries when Imphal’s Ima Keithel (Mothers’ Market) was the place where Manipuri men dedicated their love and life to the women. “Even in those days, it was the men who doted on us,” notes Mangi, the publicity secretary of the sprawling market, kwa (betel leaf) stains colouring the hearty laughter of this fifth-generation handloom stall-owner at Ima. “My mother’s mother’s mother’s mother’s…” Mangi tries to explain her links to Ima Keithel, a market that has over the centuries determinedly barred men—and even young and impressionable unmarried women—from owning stalls. Given its vintage appeal, the painting could well be rooted in the era of Khagemba Maharaj of Manipur, who is said to have founded the Khwairamband Bazar (more famously known as Ima Keithel) in the late 16th century. Yet some of the most significant elements of the painting—the traditional ways and indomitable spirit of Manipuri women—continue to find resonance at Ima Keithel. Around 6,000 female stall owners earn their living at this market and two other complexes, Lakshmi and New Markets. Click hereto view a slide show of Manipur’s Mothers’ Market The evidence of continuity is everywhere—in the rows of stalls selling fish, vegetables and farm produce; the long line of garments, Manipuri handloom and utensil shops; the small eateries serving a quick lunch to stall owners; and the bewildering array of sounds, smell and colour. The orange mekhla that 38-year-old stall owner Baby Moirangthen is wearing is not strikingly different in design from the flaming red mekhla worn by the woman in the painting—a tradition in dressing continued with “obligatory” pride. So too are the wrap-around sarongs locally known as phanek, and the scarf-like innaphi worn by all women stall owners. At Ima Keithel, it all boils down to Manipuri identity, which has been carefully crafted by the industrious spirit of Manipuri women. For most women, the Rs1.70 lakh municipal fee paid for acquiring a 4x4ft stall is also the key to complete financial control in the family, even though Manipur, unlike Meghalaya’s Khasi society, is not a matriarchal society. Financial independence, though, has assured the Ima women of a more authoritative voice in matters of social justice and politics. Ever since the Nupi Lan (Women’s War) in 1939, when the women of Ima Keithel led the revolt against British economic and administrative policies, culminating in mass unrest near the bazaar area, the Ima market has been associated closely with dissent and protest in Manipur. Stall owners reportedly participated in the June 2001 protests against clauses in the Union government’s ceasefire agreement with a Naga rebel group, and in 2004, when women protested in the nude in front of Imphal’s Kangla Fort, against the alleged murder of 32-year-old Thangjam Manorama by paramilitary forces. Even on the day we meet, as Moirangthen displays an intricately designed, handcrafted mosquito net, a handful of Ima women are getting ready to participate in an ongoing relay hunger strike outside Imphal’s JN Hospital in support of Irom Sharmila, the Manipuri activist who has been fasting for over a decade to demand the repeal of the 1958 Armed Forces (Special Powers) Act in the state. The long-held narrative of women’s empowerment and identity in Manipur is even reflected in the name of its governing body, the Ima Keithel Sinpham Amasung Saktam Kanba Lup (Mothers’ Market Profession and Identity Protection Organization). Change now looms literally over the sprawling women’s market—enormous white-washed buildings have come up in the vicinity as a modern, alternative space for the maze-like Ima Keithel. But when the proposed shift takes place later this year, the enterprising chutzpah of the Ima women is likely to make the move too—along with their distinct stocks of Manipuri goods. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 11:20 am Fuel price hike to add 1 pc to inflation:EconomistsThe government's decision to increase fuel prices is likely to add a per cent to headline inflation, which is already in double digits, and may prompt the RBI to hike interest rates, say economists.Source: HindustanTimes.com - Top Business News Headlines | 25 Jun 2010 | 10:23 am A couple of disastersWith heavily kohl-lined eyes, a man (Prrashant Narayannan) stares blankly at a singer at a ghazal concert. A few rows ahead, a well-dressed young woman (Aruna Shields) restlessly keeps glancing at the entrance. There is an empty seat next to each of them. A few minutes later, a man and woman slide into those seats. Meet Mr and Mrs Mehta, and Mr and Mrs Singh.  B-grade performance: Narayannan and Shields fail to impress. The story is about Mrs Singh, the wife of an adulterous man, and Mr Mehta, a cuckold. Neera Singh’s suspicions about her husband’s infidelity lead her to Sakhi Mehta’s doorstep, where she encounters Ashwin, Sakhi’s artist husband. Vulnerable, hurt and angry, Ashwin and Neera seek solace in each other’s company, sharing stories of how they met and married. We learn that the Singhs have been married two years, that he is a successful advertising executive while she writes an agony aunt column for www.behenji.com (you see her tapping her keyboard only once). The Mehtas, who’ve been married for seven years, decided not to have children. She supports his art, believing he will make it big one day. When Mr Singh and Mrs Mehta go off to Paris for a week, some partner-swapping follows in the UK, where Neera and Ashwin are drawn to each other on the rebound. In a few days, Ashwin feels inspired to paint and persuades Neera to pose for him in the nude. Many pixelated shots of Shields in various poses follow. The climax—an exhibition where Mr Singh and Mrs Mehta realize that the cat was out of the bag a long time ago—is drawn from Mike Nichols’ 2004 film Closer. While the issues and complexities of the relationships might be contemporary and realistic, the portrayal is unidimensional and amateur. Writer-director Pravesh Bhardwaj’s inexperience permeates every scene and frame and the tacky production values, shoddy camerawork and agonizing screenplay exacerbate the tedium. In such circumstances, you are left with no choice but to notice the upholstery, lamp shades and photo frames. So you notice the typical British apartment with stripy wallpaper and heavy wooden furniture in which Neera copes with her grief, while Ashwin is constantly rolling and smoking cigarettes at a riverside or in his studio. This is one of those movies where the characters can only do one thing at a time, and have to pause for thought before every line is spoken. The performances are a huge letdown. While Narayannan acts like he is in a European art house film, Shields’ performance is akin to a B-grade family drama heroine. Her consistent expression is of a deer caught in the headlights of an oncoming truck. Cast opposite her wooden presence, Narayannan, a capable actor otherwise, slides into inertia. The director uses montages over ghazal-Sufiana songs to show the two of them pensive and conflicted. The entire film has the feel of a Pakistani TV soap, circa 1984. Some of the stilted dialogues do jump out at you. For instance, when Neera checks her husband’s cellphone records, she counts that he has called Sakhi 87 times and called her only 32 times. Or this one: “Mera husband tumhari biwi ko ghumata rehta hai. Tumhe bhi mere upar kharcha karna chahiye”. There is no reason for anyone to spend on a ticket for this film. Mr. Singh Mrs. Mehta released in theatres on Friday. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 10:19 am The whimsical fashionistaVoting day look: Alexander McQueen’s black and white animal-print jersey dress, black tights and black mid-calf gladiators worn with bright red Ray-Ban Wayfarers. Hair left loose and messy. Red carpet look: Anamika Khanna cream and gold toga dress, gold gladiators, kundan choker, Jimmy Choo clutch and hair in an elegant up-do.  She’s got the look: (from left) Styled for a girl-next-door look by Manish Malhotra in I Hate Luv Storys; styled by her sister Rhea, Sonam wears a waistcoat for the androgynous look; she owns about 15 pairs of brogues; styled by Pernia Qureshi for a feminine, preppy look in Aisha. Magazine cover photo spread look: a flirty, floral Roberto Cavalli maxi dress with hair in loose curls. Sonam Kapoor works every look—from the very feminine and elegant to the androgynous— with matter-of-fact ease. Not surprisingly, she has become a favourite cover girl for all fashion magazines and is arguably Bollywood’s most evolved and individualistic dresser. At 5ft 9 inches, tall and skinny, sporting jumpsuits rather than cleavage, Sonam has become something of an anomaly in Bollywood where appealing to the masses is considered essential to making it as a top mainstream actress. “Fashion is fun and it’s individual. If you make it your own, you will look stylish. You can have a Lady Gaga at the same time as a Gwyneth Paltrow,” the 25-year-old tells me when we meet in between takes of a photo shoot for a film glossy. Her entourage, consisting of friend and stylist Pernia Qureshi and her make-up artist, fusses over her. A rack lined with designer clothes, shoes and accessories is waiting to be matched. She slips in and out of the clothes, gets her photo shot and moves to the next with a certain nonchalance. Sonam wants flowers in her hair for the next look. Qureshi agrees. “We have to control her sometimes. She’s crazy. She’ll wear anything. For the longest time, she was obsessed with black lipstick,” Qureshi says. Sonam laughs. While top actors such as Priyanka Chopra, Katrina Kaif and Deepika Padukone have adopted short, tight dresses as their signature look off screen, and made sequins and Swarovski-encrusted saris with short blouses their style de rigueur, Sonam likes it androgynous and edgy. She has been spotted in a military jacket paired with a white tank and trousers and even an oversized white shirt borrowed from her dad, worn with a gilet, tights and tan brogues. “Which is why my personal style cannot be in any Hindi movie,” she adds. Three years ago, Sonam debuted as Sakina in Saawariya, dressed in flowing anaarkalis made with yards of rich fabric, with her long, dark hair reaching her hips. Sonam’s look in her next film, Delhi-6, was also predominantly Indian but she made it her own with clothes by one of her favourite designers, Anamika Khanna. Khanna is known for designs showcasing Indian textile craft. “When it comes to wearing Indian clothes, I’ve very traditional sensibilities. I’m not into spaghetti straps or sequinned corsets,” Sonam says. In both I Hate Luv Storys and Aisha—releasing on 2 July and 6 August, respectively—Sonam finally sports a non-ethnic look. The first, the new Dharma Productions romcom, is directed by Punit Malhotra and has her playing a girl next door. The fact that she is considered a style icon of sorts played on Manish Malhotra’s mind before he started styling her look for this film. “She has been spotted in everything from Chanel to Balenciaga. But this character demanded a different style statement,” says Malhotra. He scouted stores in London and New York, and only high-street brands such as Mango and Topshop were used for Sonam. “Her look in the movie had to be cool and trendy but Punit wanted viewers to (be) able to relate with her,” he says. So, dressed in jeans and T-shirts, bright dresses and short denim skirts, she makes for the cutesy production assistant, Simran. A complete contrast to her off-screen image. Aisha is an adaptation of Jane Austen’s Emma and is based in Delhi’s high society. “Her character is someone who really cares about her appearance, it’s inherent in her. We thought, why don’t we take it further, make it the first high-fashion film here,” says Rhea, Sonam’s younger sister and the producer of the movie. Styled by Qureshi, Aisha, Sonam says, was a party as far as styling was concerned. After shopping trips to New York and London, and stuff borrowed from closets, Sonam is wearing every designer label you can think of, says her stylist. She’s is dressed in everything from designer dresses and vintage jewellery to dhoti pants and linen shorts. “We wanted to move away from the cotton candy aesthetic of Hindi movies, where the heroine dances around in a neon mini skirt,” says Rhea. This is also the first movie to have collaborated with an international fashion label. Christian Dior has provided many of the outfits for Sonam in the film and she can be seen carrying a Lady Dior through most of the film. “Aisha is a fashion-conscious Delhi girl, who is very feminine, dreamy and loves all things pretty. So the Dior aesthetic completely matched hers,” says Rhea. Even at home, her sister plays the part of style adviser. “My friends and sister help give me perspective. Rhea has been woken up at 6am when I have to get ready for an event. Or I would just step out in a mohawk,” laughs Sonam. Personally, Sonam counts Alexander Wang and Helmut Lang among her top favourite designers. “I don’t like being too girlie. With my kind of face, I end up looking like a 12-year-old if I wear cute clothes,” she laughs. So she borrows her father’s white shirts and wears them with tights, a big watch and bright red lips. Sonam loves accessories of all kinds, but they have to make a statement. She collects jewellery and is a big fan of hats. Sonam towers over many male actors in the film industry, so she is mostly spotted in flat shoes. She also steers clear of high heels to avoid knee and back problems. A compulsive shopper, she mostly shops online or while travelling, and collects vintage dresses. “Sonam is not a girl next door. You will never see her in jeans and a tank top. She has an easy charm and natural appeal that makes everything on her look like fashion. She never really pored over Vogues. She likes beautiful things, and has a good eye for fashion,” says Rhea. For someone who says she would much rather starve for a couple of months to be able to afford another vintage dress, Sonam says she is still searching for her style. “I don’t know if I am a style icon. I think I’m just expressing my individuality and if people like that, then great.” But there can be a thing such as too much fashion, according to Malhotra. He says he wishes she would dress her age. “Her style is very individualistic but she has gotten too caught up with that. She’s too young and there’s enough time for this. She’s beautiful and will be a huge star, but she has to be more approachable to the regular viewer,” he says. rachana.n@livemint.com Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 10:18 am They’re hip, they’re squareYour make-up compact may have just replaced the brick as the mobile phone industry’s new design muse. The last few months have seen no less than six new handsets flaunting an unusual square form factor, packed with all the necessities—a camera, Internet browser, apps—a palm-sized smartphone can manage.  Source: LatestNews-Home - Livemint.com | 25 Jun 2010 | 10:05 am Why do the Chinese save so much?China’s very high savings rate is many things to many people—a source of global imbalances for some economists, a sign of financial repression for others, a potent source of growth and a nest egg to make up for the absence of social security for the mass of the Chinese people. In this paper, Guonan Ma and Wang Yi set out to examine all these reasons and come up with reasons why the Chinese save so much. China’s saving rate has been increasing over the years, reaching a huge 54.3% of gross domestic product (GDP) in 2008. The only country that comes close is Singapore. India’s rising savings rate, a source of pride and joy for our economists, reached a high of 37.6% of GDP in 2007. The authors examine each of the three sectors that save: households, the corporate sector and the government. The household sector’s share of total income has actually been falling, thanks largely to a declining share of labour in the economy. Yet, despite its lower share, household savings have increased as a percentage of GDP, because of a rise in the propensity to save. The authors say that “Record economic growth, a sharp decline in the Chinese youth dependency rate, the expected rapid ageing of the population and saving/consumption habit persistence all have contributed to a high personal saving propensity.” Moreover, there has been a vast restructuring of the Chinese corporate sector in the last couple of decades, which led to the closing down of several large decrepit state enterprises, with many losing their jobs. This has led to an increase in saving for a rainy day, or what economists call the precautionary motive for saving. Over the past 15 years, corporate savings have been the most important contributor to the high savings rate. One often-cited reason is that corporate subsidies, including paying very low rates of interest on bank deposits so that lending rates are kept low and keeping the currency undervalued, which boosts exports, have increased corporate savings. The authors do not dismiss these theories, but argue that other factors such as improved efficiency also matter. Government savings, too, have been high in China. The researchers say that the Chinese government saves rather than spends because “the need to accumulate pension assets in anticipation of rapid population ageing, the incentives for local governments to invest rather than providing public services, and a large burden of social spending on the local governments that have come under increased funding pressures”. They conclude that the evidence casts doubt on the proposition that distortions and subsidies account for China’s rising corporate profits and high saving rate. What’s more important from the point of view of the rest of the world, however, is whether the Chinese will start consuming more and saving less, which will lead to lower current account surpluses and a more balanced global economy. The authors argue that China’s savings rate is likely to plateau and then fall. One reason is because the corporate restructuring has already been done and large-scale retrenchments are unlikely—so people will save less. Another is a rapidly ageing population, which means the growth in the labour force will slow, leading to lower savings. And the third reason, very interesting in view of recent strikes in China’s factories, is that “there may be some early and tentative signs that China could get closer to the Lewis turning point”. The Lewis turning point is so named after Nobel prize winning economist Arthur Lewis who argued that a developing economy could grow without wage inflation as long as industry could attract surplus workers in agriculture. When it could no longer do so, a turning point was reached and wages started to rise. What happens then? The authors explain: a rise in the labour share of income, lower corporate saving and a greater role of personal consumption in future. Graphic by Jayachandran/Mint Write to simplyeconomics@livemint.com Source: Home - Livemint.com | 25 Jun 2010 | 9:41 am Moon Bum Shin | Profits are bad, but we’ll go all out to winNew Delhi: June has been a difficult month for Moon Bum Shin, the 57-year-old managing director of LG Electronics India Pvt. Ltd. He’s been saddled with household chores with the staff having taken the month off. Then South Korea lost to Argentina in the football World Cup. And on top of all that, he’s worried about the company’s profit margins which are increasingly under pressure. Shin, who has been leading the Korean consumer durables company in India for five years, spoke about the local market and his plans to boost market share in an interview. Edited excerpts: How has the Indian consumer changed in the last five years?  Boosting share: LG’s Shin says the firm is expecting a turnover of Rs19,000 crore this year and will target Rs45,000 crore by 2015. Pradeep Gaur/Mint In the first five months this year, we enjoyed as much as 30% growth. The younger generation is ready to take anything that has not been experienced before. Has this growth come from any specific product category? Majority of it is from LCD (televisions) and GSM (mobiles). In the LCD category, we are aiming to be No. 1 by the end of this year. At the moment Samsung is the market leader but Sony, Samsung and LG are really close according to our internal survey. In terms of design and technology, we are at par with Samsung and we will launch 3D in the next couple of months. In which product categories do you lead? In all the product categories except LCD TVs and mobiles. In LCDs, we have a 25% share while in mobiles we have a 5% share. In the rest of the other product categories we have over 27% market share. In the regular TV category, we have more than 30% share. In refrigerators and washing machines and ACs, it is around 27-28% and in microwaves it is 36%. But LG lags in the mobile handset space. We were latecomers in the GSM handset market. We launched in 2004. Nokia has been here for more than 15 years. We have been strong in CDMA, but that is mostly low-end. Our image is like that. It will take some more years to build our image in the premium segment. But even in the low-end segment, aren’t the local manufacturers squeezing you? Four years ago, none of these guys were present. In the low-end segment, they are really very strong but I don’t know how long they can sustain. Selling is one thing, but after-sales service is another. At LG, before we go for expansion, the first job is to expand the service network. That is very critical. Even the rural customers are very sensitive to after-sales service. We are going to set up 100 service points (for mobile) before the end of this year. We are going to address all segments, since we are latecomers, we cannot play only one segment of the market. Our main target audience is youth in urban areas, but we will also be launching a very attractive range of dual SIM card handsets in August for the rural market. Where is the demand for your products coming from? We have LCDs even in rural areas. For example, in the cities we buy ACs as per our room size—the 1 tonne or 1.5 tonne AC. For very small rooms, the rural customers buy 2 tonne ACs as a status symbol. Farmers are getting good prices for their land. As government accelerates improving the infrastructure, the growth is coming from every corner of India—urban, semi-urban and rural. But the rate of growth in rural India is higher. Are you planning to increase plant capacity? That’s right. We have come up with a manufacturing footprint. The first extension (after Greater Noida) will be Pune. For the second extension, either we purchase more land in Pune and put more lines or we find another state in the southern part of India—maybe Hyderabad or Chennai. We are comparing strengths and weaknesses, pros and cons and we are going to decide before the end of this year. Secondly, going forward, the company has decided to utilize India as a global manufacturing hub. As a first step, very soon we are going to open a research and development centre to develop products for the global market as well. Experts in the durables business say you have brought transparency to the company. I would say, after LG became No. 1, it started becoming arrogant. So back to basics was very critical. When I came what I saw was that teamwork had started to collapse. Individualism and factionalism became strong so the attrition rate was rising. In the last five years, attrition rate has declined substantially—from 20% to 5% last year, which is the lowest in the industry. But this year there is more demand for the executive cadre so we may end up with 7% attrition. When I came in 2005, I travelled for the first three years and visited nearly 100 cities. There were many things that were wrong. LG was pushing material—it was all push and no pull. The marketing quality was bad, the service was terrible. I tried to correct them one by one. What impact will your recent price hike have on sales? There is a very marginal increase in price of 0.7%. We try to lower prices through cost innovation, but sometimes we just can’t as the exchange rate is volatile or the international raw material prices are high. So every year we try to improve productivity. The company needs profits for future investment. What do the profits look like? At the moment the company’s profit is not in a good shape. In the last couple of years, new guys have entered the Indian market and the Japanese have been putting up manufacturing units. The Japanese are going to address not just the high-end but also the low-end segments. So competition is going up, price erosion is taking place and we are bleeding one another. This year the profits are very bad. So we are going to mobilize all ways and means to win. We are expecting a turnover of Rs19,000 crore this year and will target Rs45,000 crore by 2015. Is there a product from a rival brand that you think LG should have made? That is very confidential. But we are launching an investigation through the India Lifestyle Research. From 2 July, I am going to put teams in place. They are going to conduct a very wide and in-depth survey over six months to find out what the real pain points of the Indian consumers are. The research will help us develop new products. But first we should get the Indian insights. How long do you expect to be in India considering you have completed five years? I am already 57 years old. Retirement is at 60. I don’t know how long I am here. The company will decide. If the company wants me to stay beyond 60 years... What do you do in your free time? I play golf. But that’s more like networking for business. tejeesh.b@livemint.com Source: Home - Livemint.com | 25 Jun 2010 | 9:04 am Govt raises monsoon forecast; to help tame food pricesNEW DELHI (Reuters) - India's annual monsoon rains, key to farm output and economic growth, are expected to be better than previously forecast, raising prospects of good harvests and possibly helping to cool double digit food inflation.Source: Reuters: Money News | 25 Jun 2010 | 4:39 am Shares drop; Reliance up, state oil cos jumpMumbai: Indian shares closed barely changed for the week but dropped 0.9% on Friday, in tandem with world markets on worries about global economic recovery and expectations of tighter financial regulation ahead of a summit of Group of 20 nations. However, losses were capped as investors cheered a new gas supply agreement between the recently reconciled Ambani brothers and as the government approved market-determined petrol prices. The 30-share BSE Index declined for the second session as it closed down 0.88%, or 155.71 points, to finish at 17,574.53. Twenty-two of its components lost ground. Mukesh Ambani-led Reliance Industries rose 1.1% to Rs1,063.25, after the company said it had signed a revised gas supply agreement with Reliance Natural Resources (RNRL) controlled by younger brother Anil. “People expected a new agreement after the reconciliation. The new agreement and the patch-up are positive for stocks of companies of both brothers,” said Rakesh Rawal, who manages $1 billion as head of private wealth management at Anand Rathi Financial Services. Reliance Natural Resources was the most traded main stock on the Bombay Stock Exchange. About 26.9 million shares changed hands, more than double their average volume for 30 days. RNRL closed 3.3% higher at Rs65.95. State-run oil companies jumped after the government freed up state-subsidised petrol prices and hiked other fuels as high global oil prices and pressure to trim the budget deficit outweighed concerns about the political impact of the measures. Oil explorer Oil & Natural Gas Corp soared 6.4% to Rs1,264. It rose to as much as Rs1,290.90, its highest level since January 2008. Bharat Petroleum Corp, Hindustan Petroleum Corp and Indian Oil Corp jumped between 10.4% and 13.7%. Differences among G-20 leaders ahead of a summit in Toronto over how to secure the economic recovery caused investor concern, particularly with leading indicators reflecting a slowdown ahead. “There are no signs that the scene globally is going to turn positive anytime soon. It really depends on how the developments shape up in Europe and other geographies,” Anand Rathi Financial’s Rawal said. So far this month, foreign funds have been net buyers of around $1.7 billion of Indian stocks, fuelling a rally of 3.7% in the benchmark. In May, foreigners had pulled out $2 billion, as fiscal troubles in Europe rattled investors across the globe. Meanwhile, junior farm minister K.V. Thomas said India’s June-September monsoon rainfall is likely to be 102% of long-term average, despite a week-long slow progress. However, market participants were upbeat about the outlook for the rest of the year because of a pick-up in economic growth. The BSE index should rise to 19,000 points by the end of 2010, the median estimate in a Reuters poll of 20 market participants showed, while 17 forecast it rising to 21,000 by the end of June 2011. Financials led the losses, with leading lender State Bank of India declined 2.4%, while rivals ICICI Bank and HDFC Bank shed 3.1 and 2.7%, respectively. Financials were also weighed down after data on Thursday showed food inflation in Asia’s third-largest economy accelerated in mid-June, maintaining pressure on the central bank to tighten monetary policy at a faster pace. Auto makers slid on fears auto sales may be impacted by a rise in fuel prices. Tata Motors and Mahindra and Mahindra dropped nearly 2% and 2.8%, respectively. Hero Honda declined 0.3%. In the broader market, declining shares outnumbered gainers in the ratio of 1.5:1 on a relatively high volume of 438 million shares. The 50-share NSE index shed nearly 1% at 5,269.05. Elsewhere, Europe’s FTSEurofirst 300 was down 0.5% by 1031 GMT while MSCI’s measure of Asian shares other than Japan declined 1.9%. Source: Home - Livemint.com | 25 Jun 2010 | 4:31 am Pfizer sees double-digit sales growth in 2010Mumbai: Phramaceutical firm Pfizer Ltd expects double-digit sales growth in 2010 and has launched six branded generic drugs till June, Kewal Handa, managing director, told reporters on Friday. Handa declined to give any details of future drug launches in 2010. “We are expecting to grow at double-digit rate,” Handa said. Pfizer sales rose 19% for the 12 months to May 2010, surpassing the industry growth of 17% for that period, Handa said, citing data from market research firm IMS. Pfizer is adding 100 women medical representatives for marketing woman healthcare products and is investing in technology, Handa said. He declined to give specific numbers for the firm’s annual capex. Handa also said there was a possibility for consolidation in the Indian pharmaceutical industry, but refused to comment when asked about any possible acquisitions by Pfizer. “We don’t comment on any business development,” he said. Pfizer shares were up 3.04% at Rs1,111 in a weak Mumbai market. Source: Home - Livemint.com | 25 Jun 2010 | 4:15 am Asian stocks slide ahead of G-20Hong Kong: Asian stocks fell for a fourth straight session on Friday, driven by expectations of tighter financial regulation ahead of the weekend G-20 meeting and uncertainty about the global economic recovery. Part of the weakness in Asia was attributable to profit-taking after a powerful rally in risky assets on Monday on the back of China’s decision to unpeg the yuan. However, differences among Group of 20 leaders ahead of a summit in Toronto over how to secure the economic recovery caused investor concern, particularly with leading indicators reflecting a slowdown ahead. “The fundamental backdrop has not significantly changed of late, which could mean risk aversion persists as we finish the first half of the year,” Gareth Berry, currency strategist with UBS in Singapore, said in note. “Risk sentiment could remain unstable as investors may be increasingly worried on growth prospects in the US, which could weigh on demand conditions for commodities and equities in turn.” Japan’s Nikkei share average led equity market declines in Asia, falling 1.9% to close below its 25-day moving average in what was seen as a negative short-term signal for Japanese stocks. Fresh signs of weakness in US consumer spending that have raised concerns about the outlook for corporate earnings sparked much of the selling. “The feeling in the market really isn’t very good right now, and if we don’t get something encouraging out of the G-20 summit we could see more falls next week,” said Noritsugu Hirakawa, a strategist at Okasan Securities. “With the G-20 summit going on it’s very hard to buy, and the yen’s gains are adding some downward pressure.” Shares of Mizuho Financial Group hit a seven-month low after sources told Reuters the bank will decide on Friday to sell up to 6 billion new shares in a planned global offering, increasing the total number of shares outstanding by up to 38%. Index heavyweights such as Fanuc and Canon saw their shares drop more than 4%. The MSCI index of Asia Pacific shares outside Japan fell about 1.4%, dragged down the most by technology and resource-related sectors. Australian shares fell 1.5% to a two-week low as concerns over the global economy resurfaced and investors turned edgy over the mining tax. Mining firms had received a fillip on Thursday from hopes that Australia’s new prime minister Julia Gillard would offer a more conciliatory approach on the 40% super profits tax, but there was little new information on Friday on negotiations. “The leads from overseas was weak and the market hates the uncertainty over the mining tax. Having said that we certainly did not see a level of panic,” said Benn Potter an analyst at IG Markets. For 2010, a Reuters survey found Australian shares are expected to post a gain of just under 5% as investors remain jittery about prospects for global growth and haggling about the mining tax weighs on the mining sector. Shanghai stocks fell more than half a percent, its third drop in a row. With the imminent mammoth initial public offering by Agricultural Bank of China threatening to further weigh on the market in coming days, some analysts said they did not expect a strong rebound in stock prices any time soon. However, the Shanghai Composite Index was up 1.6% for the week, its best week for the month as shares clinged on to gains made earlier in the week when China relaxed its grip over the yuan in a landmark move. Hong Kong stocks edged down 0.2%. Taiwan stocks fell 1.5%, pulled down by property and construction stocks after the island’s central bank unexpectedly raised interest rates and strengthened oversight of the mortgage market. South Korean shares fell more than half a percent as renewed concern about the global economy weighed on issues sensitive to economic cycles such as technology and steelmakers, but life insurers such as Samsung Life advanced. Indian stocks lost 0.9%, while Singapore shares edged up 0.1%. The yen rose broadly and stayed near a 1-month high against the dollar on short covering and as falls in regional share markets prompted traders to further sell risky currencies such as the Australian dollar. The euro and Australian dollar fell against the greenback on investor doubts about the strength of a global recovery, and were also dragged lower by their weakness against the yen. Gold was softer, but analysts expect the precious metal to be buoyed by investors looking for refuge from financial market uncertainty and concerns about currency depreciation. Crude slipped toward $76 a barrel, mainly depressed by ample supply but underpinned by a Caribbean storm which might move towards the Gulf of Mexico, where oil facilities are clustered and BP continues to fight an oil spill. Source: Home - Livemint.com | 25 Jun 2010 | 4:03 am
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