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Euro treaty needs updating, says ECB's Bini SmaghiMILAN (Reuters) - The euro currency treaty needs updating to take account of the financial crisis, European Central Bank (ECB) Executive Board member Lorenzo Bini Smaghi said in an interview on Sunday.Source: Reuters: Money News | 11 Jul 2010 | 3:48 am What makes The Oberoi properties world's best - Economic Times
Source: Business - Google News | 11 Jul 2010 | 3:28 am Fraud-hit Satyam eyes World Cup rehabilitationNearly 18 months ago, Satyam was rocked by a false-accounting scandal that threatened its very existence. But bosses believe the firm's image has been restored -- thanks to the World Cup.Source: HindustanTimes.com - Top Business News Headlines | 11 Jul 2010 | 3:17 am 'Govt needs to re-look into affordable housing policy'With the demand for affordable houses in Maharashtra increasing, there is a need to re-look at some of the policies and laws governing the issue, a senior Government official said.Source: HindustanTimes.com - Top Business News Headlines | 11 Jul 2010 | 2:30 am Give subsidy to schools, hospitals, not oil firms: MontekThe government should use its money on building schools and hospitals rather than subsidising oil companies that are making huge profits because of the grant, Plan panel Deputy Chairman Montek Singh Ahluwalia said today.Source: HindustanTimes.com - Top Business News Headlines | 11 Jul 2010 | 2:25 am China confirms renews Google's China licenceBEIJING (Reuters) - China's Ministry of Industry and Information Technology said it had renewed the Chinese operating licence of U.S. Internet giant Google Inc, confirming an announcement made by the company on Friday.Source: Reuters: Money News | 11 Jul 2010 | 2:24 am Kinetic plans power project for villagesKinetic Chairman, Arun Firodia, who saw an opportunity at bottom-of-the-pyramid long before the phrase became a catchword and launched the moped Luna, now plans to launch a project that would bring power to villages.Source: HindustanTimes.com - Top Business News Headlines | 11 Jul 2010 | 2:13 am Sensex cos likely to clock over 22% growth in Q1: BrokeragesNew Delhi: The robust numbers reported in the March quarter are likely to be repeated in the first quarter of this fiscal, and brokerages expect the Sensex companies to clock an annual growth of over 22% in the current earnings season beginning this week. “The adjusted earnings of the Sensex companies are expected to grow by a strong 22.5% y-o-y in the Q1. The Sensex earnings (ex-oil firms) are estimated to grow by 25.8% y-o-y,” brokerage Sharekhan said in its earning note. Analysts say growth in the earnings of the Sensex firms would mainly be achieved on the back of a relatively better performance of metals (owing to improved realisations and volume growth) and capital goods sectors. But the telecom and cement sectors are likely to be a drag the Sensex, they add. “We expect the Sensex universe to report sales growth of 28% and profit growth of 19%. Growth in earnings are expected to improve over the next three quarters with an average growth of 22%,” Motilal Oswal said in its note. Motilal Oswal, RIL is expected to report a strong earning growth of 30%, while ONGC may report de-growth of 28%.Also, a muted numbers of 3 and 6%, respectively by NTPC and SBI, will bring the overall earnings growth down, it said, adding RCom, ONGC and Bharti Airtel will report de-growth of 82, 28and 21%, respectively. Prabhudas Lilladher estimates that “for the Nifty pack, revenue and PAT are expected to grow by a solid 30.4% and 37.2% y-o-y, respectively. However, brokerages also fear the current quarterly growth is a near-term peak as the base effect starts wearing off from the second quarter. On sectoral growth, a brokerage said growth is expected to be robust for sectors like retail, hospitality, media and auto, while cement and telecom are expected to decline. Though yearly growth is likely to be strong for commodity-driven sectors (oil & gas and metals), recent downgrades in earnings estimates for metal companies (on the back of rising global uncertainties) pose risks to the earnings outlook, says Edelweiss. In its outlook for the IT sector, Emkay expects a revenue growth in the range of 3-5% in dollar terms, with Infosys expected to clock the highest at 5%. But Edelweiss sees Infosys surpassing its revenue guidance of 2.6-3.4% q-o-q growth, despite the currency impact. On earning impact for markets, Motilal says, “accelerating economic and corporate profit growth will limit downside in the market. At the same time, above-average valuations cap the upside”. The brokerage house expects benchmark indices to remain with a range of 10% from the current levels. “Indian markets had a lackluster first half of 2010, rising just 1-2%. However, just like the ongoing Football World Cup, Indian equities could throw up a few surprises in the second half of the year,” it added. Source: Home - Livemint.com | 11 Jul 2010 | 1:53 am Sensex cos likely to clock over 22pc growth in Q1: BrokeragesThe robust numbers reported in the March quarter are likely to be repeated in the first quarter of this fiscal, and brokerages expect the Sensex companies to clock an annual growth of over 22 per cent in the current earnings season beginning this week.Source: HindustanTimes.com - Top Business News Headlines | 11 Jul 2010 | 1:48 am 3G services will not come cheap: Sunil MittalMarket leader Bharti Airtel today cautioned that 3G mobile services will not come cheap, especially for subscribers in metros, as service providers had to pay dearly for spectrum.Source: HindustanTimes.com - Top Business News Headlines | 11 Jul 2010 | 1:34 am Top firms add over Rs 12,000 cr to m-capMumbai: The country’s top-10 corporate firms witnessed an addition of Rs12,500 crore to their cumulative market capitalisation last week, on the back of a rebound in the domestic as well as global market. A rally in the telecom stocks late last week helped the country’s top telco Bharti Airtel to earn a space in the elite club, with a market cap of Rs 1.17 lakh crore, and pushed out engineering giant L&T from the ninth place in the list. During the past week, Bharti Airtel’s shares gained over 16%. On Friday alone, the scrip climbed over 10% after Credit Suisse upgraded the major Indian telcos. Corporate behemoth Reliance Industries (RIL) maintained its numero-uno status, though it lost Rs4,121.09 crore from its m-cap last week. The total market valuation of RIL stood at Rs3.45 lakh crore for the week ended 9 July. With a m-cap of Rs2.76 lakh crore, state-run energy giant ONGC held the second position, though it saw an erosion of Rs2,320.67 crore in its m-cap. IT bellwether Infosys toppled state-run power major NTPC from the third position. Infosys added Rs 8,201 crore, the most in top-10 firms, to its m-cap,taking it to Rs 164,796.86 crore, while NTPC’s valuation fell by Rs3,380.64 crore to Rs1.63 lakh crore. Software exporter TCS climbed to the fifth slot by gaining Rs6,067.32 crore to Rs1.51 lakh crore. State-owned SBI earned Rs6,577.36 crore and jumped to the sixth place. The m-cap of the country’s biggest public sector lender stood at Rs1.50 lakh crore. Trading major MMTC fell to the seventh place and shed Rs 7,262 crore from its m-cap to Rs 1,43,245 crore. Last week MMTC stood at the fifth spot. Power producer BHEL at the eight place saw its valuation swell by Rs124.83 crore to Rs1.17 lakh crore. FMCG firm ITC suffered a loss of one place and finished last to shed Rs 639.14 crore taking its valuation to Rs 1.14 lakh crore. Source: Home - Livemint.com | 11 Jul 2010 | 1:33 am BSNL seeks Rs 15,873-cr aid for loss-making rural operationsState-run BSNL has written to the Telecom Ministry requesting a compensation of Rs 15,873 crore per annum from the USO Fund for its loss-making rural operations.Source: HindustanTimes.com - Top Business News Headlines | 11 Jul 2010 | 1:32 am Tax-free infra bonds capped at 25% of investment - Business Standard
Source: Business - Google News | 11 Jul 2010 | 1:21 am Montek Ahluwalia rebuffs Kamal Nath on plan panel's 'armchair' role - Hindustan Times
Source: Business - Google News | 11 Jul 2010 | 1:20 am Will India adopt China's rice-farm model? - NDTV.com
Source: Business - Google News | 11 Jul 2010 | 1:18 am Govt may not allow export of sugar till DiwaliSugar mills may have to wait till Diwali in November to fulfill their export obligation of nearly 10 lakh tonnes as the Food Ministry is reluctant to permit shipments fearing price rise during the festive season.Source: HindustanTimes.com - Top Business News Headlines | 11 Jul 2010 | 1:04 am Top-10 firms add over Rs 12k cr to m-cap; Airtel re-enters club - Economic Times
Source: Business - Google News | 11 Jul 2010 | 1:01 am Irda clears IPO guidelines; Sebi nod expected shortlyThe sectoral regulator Irda today said it has finalised the IPO guidelines for insurance companies and has referred the same to the capital markets watchdog Sebi for final approval which is expected soon.Source: HindustanTimes.com - Top Business News Headlines | 11 Jul 2010 | 12:37 am Tata Motors and JLR to jointly develop engines, vehiclesTata Motors has kickstarted a move to jointly develop engines and vehicles with its UK subsidiary, Jaguar Land Rover, over two years after its $2.3 billion acquisition of the British marques.Source: HindustanTimes.com - Top Business News Headlines | 11 Jul 2010 | 12:32 am Businesses step up criticism of Obama's agendaWASHINGTON (Reuters) - Some U.S. business groups, upset about budget and regulatory policies they say are costing jobs, are accusing President Barack Obama of pursuing an agenda that is hurting the U.S. economic recovery.Source: Reuters: Money News | 10 Jul 2010 | 11:18 pm China shrugs off global fears with export strengthBEIJING (Reuters) - China's trade surplus in June topped expectations on surprising strength in exports that suggests the global economic recovery has remained on track despite worries about a fresh slowdown.Source: Reuters: Money News | 10 Jul 2010 | 11:11 pm BP starts work to install new cap on gushing wellHOUSTON/PORT SULPHUR, La. (Reuters) - BP Plc removed a containment cap from its stricken Gulf of Mexico oil well on Saturday in the first step toward installing a bigger cap to contain all the crude gushing into the sea and fouling the coast.Source: Reuters: Money News | 10 Jul 2010 | 8:51 pm Singapore offered access to India's investment zone - The Hindu
Source: Business - Google News | 10 Jul 2010 | 4:47 pm 2009-10 bumper year for illegal mining: Yeddyurappa - Indian Express
Source: Business - Google News | 10 Jul 2010 | 4:46 pm CBI to attach Ramalinga Raju's 425 assets - Times of India
Source: Business - Google News | 10 Jul 2010 | 3:48 pm Blockbuster hires chief restructuring officerTurnaround expert Jeffery Stegenga, a veteran of turnaround firms Alvarez & Marsal and FTI Consulting, will also help the company with long-term strategy and growth, a spokesperson said yesterday.Source: Daily News & Analysis: Money News | 10 Jul 2010 | 2:59 pm In India, for India: medical device makers plug inThe MACi, and its slightly heavier predecessor MAC 400, were designed, developed and manufactured with local components in India, where greater health care spending is boosting medical systems makers like GE, which are now focusing on making products for India.Source: Daily News & Analysis: Money News | 10 Jul 2010 | 2:59 pm Tourists yet to warm up to Commonwealth GamesAbout a month after it was thrown open for bookings, the Games Travel Office (GTO) of the Commonwealth Games does not seem to be generating much response from tourists. There hasn't been much booking at GTO as one would have expected. One of the reasons is the high tariffs being charged by the hotels, Tourism Secretary Sujit Banerjee said.Source: Business Standard | Front Page Headlines | 10 Jul 2010 | 1:14 pm Now trade unions plan national strikeRight and Left to come together again in September.Source: Business Standard | Front Page Headlines | 10 Jul 2010 | 1:11 pm India 2nd in global competitivenessIndia has been ranked second, ahead of the United States and South Korea, in terms of manufacturing competence globally, a report by Deloitte has said.Source: Business Standard | Front Page Headlines | 10 Jul 2010 | 1:08 pm Audit committee heads may not get protectionMinistry of Corporate Affairs suggests overhaul of rules for independent directors.Source: Business Standard | Front Page Headlines | 10 Jul 2010 | 1:06 pm No cut in budget, says Unique ID Authority - Business Standard
Source: Business - Google News | 10 Jul 2010 | 12:30 pm Emerging market M&A gains share on West, led by AsiaSINGAPORE (Reuters) - A burst of corporate acquisition activity in Asia shows that executives throughout the region are gaining confidence in their financial outlook and expansion strategy, with cross-border deals on the upswing.Source: Reuters: Money News | 10 Jul 2010 | 11:28 am Fitch: Sub-50 percent chance of double-dip recessionLONDON (Reuters) - The risk of a double-dip recession is less than 50 percent, Brian Coulton, managing director of European ratings at Fitch Ratings told Reuters Insider Television in an interview on Tuesday.Source: Reuters: Money News | 10 Jul 2010 | 11:27 am Financial firms boost salaries, cut bonuses - surveyWASHINGTON (Reuters) - U.S. and European financial firms have cut back on cash bonuses, moving instead to higher base salaries, a survey released on Wednesday showed.Source: Reuters: Money News | 10 Jul 2010 | 11:24 am Expect to be a billion dollar co by next fiscal: Red HatJames Whitehurst, CEO, Red Hat, is credited with saving the biggest distribution vendor of open software Linux from the brink of bankruptcy.Source: Moneycontrol Top Headlines | 10 Jul 2010 | 10:00 am Satyam promoters wrongfully gained Rs 2643 crore: CBICBI has revealed the findings of one of the India\'s biggest corporate fraud Ramalinga Rajus Satyam case. CBI has said that the promoters and family of the company has wrongfully gained Rs 2,743 crore.Source: Moneycontrol Top Headlines | 10 Jul 2010 | 9:50 am Find out: How to pick the best real estate asset?While a lot of the action has been on stock markets, on Gold over the last few months, we have put the spotlight on real estate market. Anuj Puri, Chairman and Country Head JLLM and Pranay Vakil, Chairman, Knight Frank India share insights on the real estate sector.Source: Moneycontrol Top Headlines | 10 Jul 2010 | 9:00 am Keep industry off cultivable farm land: Sharad PawarThe food and agriculture minister pointed out that as much as 82% of the farmers own less than an acre and 60% of such land have no assured water supply.Source: Daily News & Analysis: Money News | 10 Jul 2010 | 8:37 am Sugar sector needs change in levy mechanism: Shree RenukaAgriculture Minister Sharad Pawar believes that the time has come for freeing the sugar sector. In an interview with CNBCTV18, Rajshree Pathy, CMD, Rajshree Sugars gave her perspective on the government\'s intent.Source: Moneycontrol Top Headlines | 10 Jul 2010 | 7:09 am How will Australias new tax regime impact metal biz?Last week the new Australian government announced that the resources superb profits tax will be scrapped.In its place a newly titled minerals resource rent tax will be levied on iron ore and coal projects in Australia at the rate of 30% which is 10% lower than the 40% proposed in the earlier tax.Source: Moneycontrol Top Headlines | 10 Jul 2010 | 7:08 am Bumper crop likely in 2010-11 if monsoon is uniform: Sharad PawarQuoting Met department reports, the Union food and agriculture minister said there has been 98% rainfall till now this month, and it is expected to go up to 102% in August.Source: Daily News & Analysis: Money News | 10 Jul 2010 | 7:05 am Performance with purpose: PepsiCo\'s growth mantraPepsiCo believes it was able to tide through the financial downturn because of its philosophy of performance with a purpose. It believes in marrying ethical performance with profits.Source: Moneycontrol Top Headlines | 10 Jul 2010 | 6:51 am No dearth of resources for agriculture: Pranab - Sify
Source: Business - Google News | 10 Jul 2010 | 6:34 am YouTube introduces new HTML5 Mobile siteThe library is easier to navigate, the search box suggests results as you type, videos can be book-marked like web pages, and favourites and the new "like"-style ratings have been added.Source: Daily News & Analysis: Money News | 10 Jul 2010 | 6:22 am EID Parry to launch open offer for GMR on July 15Sugar producer E.I.D. Parry will launch its open offer for up to 20 percent of GMR Industries on July 15 and close it on Aug 3, Enam Securities, the manager to the offer said on Friday.Source: Moneycontrol Top Headlines | 10 Jul 2010 | 6:11 am DB Corp sees FY11 topline growth of 15%Newspaper publisher DB Corp expects 15% topline growth in FY11 if advertising revenue growth continues at the current quarter\'s 1617%, a top official told Reuters.Source: Moneycontrol Top Headlines | 10 Jul 2010 | 6:11 am CPM wants law to check honour killingsNew Delhi: Terming the defence of honour killings by some of those in power as “abhorrent”, the CPM on Saturday demanded that draft of a comprehensive law to deal with such crimes be tabled in the monsoon session of Parliament. “There are political considerations at work to downplay the magnitude of the crime. There is an attempt by those in office in at least one of the states where such crimes have occurred to defend the highly retrograde actions of self-styled caste panchayats in the name of tradition,” CPM leader Brinda Karat said. In a letter to Prime Minister Manmohan Singh, she said “you will agree that to put vote bank politics over the requirements of those in office to uphold the rights granted by the Constitution is abhorrent. Yet this is being done.” Maintaining that discussions with state governments and the Group of Ministers on the issue would “not be at all helpful”, Karat said “delays on the part of the Central Government to decide on a firm course of action in setting up a legal framework strengthens the perception that it is caused by the pressure of vote bank politics”. Urging the Prime Minister “to do justice to young couples who are victims of anti-democratic and casteist notions and beliefs”, she said “what is required is a firm decision by the government for a separate law, the draft of which may be placed in Parliament in the coming session”. She said “unfortunately” home minister P. Chidambaram was “clearly unaware of the logic” for a separate legislation on the issue as he had maintained that prima facie he was “‘not sure whether that will take us very far’. “It is this flawed understanding of those charged with addressing the crime which is responsible for the misconceived piecemeal attempts for a legal framework that we see today,” she said. Maintaining that the issue was raised in Parliament, Karat said “parties cutting across political lines had supported the suggestion that there should be a separate law to deal with the range of so-called honour crimes”. Observing that there were many dimensions to these crimes, she said it included the absence of a definition of honour crime, the role of caste panchayats, that of the girl’s family because of which often no complainant was filed when a girl disappeared and of law enforcement agencies acting in connivance with the perpetrators of the crime. “The crime includes murder but also many other crimes such as social and economic boycott, coercive dissolution of marriage, levelling of fines on the family of the boy and their supporters, externment from the village, public humiliation, threats and harassment against relatives,” she said. Karat said women’s organizations like the All India Democratic Women’s Association had already worked on such a comprehensive law “which the Government may consider”. Source: LatestNews-Home - Livemint.com | 10 Jul 2010 | 5:54 am In India, for India: medical device makers plug inBANGALORE (Reuters) - In a sleek glass and chrome building in Bangalore's software hub, the more than 1,000 young researchers and engineers at GE Healthcare could hold the keys to innovations that save lives in India's vast hinterland.Source: Reuters: Money News | 10 Jul 2010 | 5:48 am Govt to bring in reforms to reduce litigation delays: MoilyLondon: Government plans to usher in second generation legal reforms that would eliminate litigation delays sharply in India. It would also like to put in place a legal regulatory regime and an oversight mechanism for the smooth functioning of the judiciary without infringing on the independence of the institution. “In the first stage, with a view to fast tracking the delivery of justice and creating centres of excellence, we established National Law Schools. “Now in the second stage, we would like to introduce the second generation legal reforms. At present litigation in India involves delay of over 15 years. The Government would like to reduce this delay to less than 3 years,” law minister Veerappa Moily told journalists. He said the government would also take measures to improve the quality of the judiciary by reforming the legal education system and making the country the most preferred destination for investors by setting up international arbitration courts with a mandate to dispose off any litigation within a year. Moily said the Commercial Court Bill would soon become a law, paving the way for speedy disposal of cases through arbitration. Lok Sabha has passed the Bill and it will go before the Rajya Sabha now. The minister said the amendment of the Arbitration and Conciliation Act would remove the distractions and make the legislation more vibrant. “The Government of India would like to improve quality of the judiciary through reforming the legal education. We need to make India the most preferred destination of investment,” Moily said. Moily, a former chief minister of Karnataka and chairman of the second administrative reforms commission, said: “any investment above Rs5 crore will be decided in commercial courts within a year.” He said that the Indian government’s first priority is to reform the legal education and upgrade the course contents in the 933 law colleges across the country. “There are more than one million lawyers in India. We intend to restructure the faculty of our law colleges and make them world class. The second priority for the Government is to strengthen and widen the centres of excellences and establish more National Law Schools, at least one each in each of the 28 States,” he said. Moily, who is visiting the UK at the invitation of the British secretary of state for Justice Kenneth Clarke, said he had very warm, cordial and fruitful meeting with Clarke and he was quite happy with his visit. He said Clarke reiterated the resolve of the coalition government to develop a special relationship with India and build closer ties in all spheres including the judiciary. Expressing his admiration for Prime Minister Manmohan Singh, Clarke acknowledged India’s “powerful regard for the rule of law” and spoke of the challenges the Indian judicial system faces. Moily also had meetings with the Lord Chief Justice and the Attorney General. The minister also met Chairman of the Legal Services Board David Edmonds and Chair of the Judicial Appointments Committee Baroness Usha Prashar. He had a Round Table discussions with the Bar Council of UK, Law Society of UK, Society of Asian Lawyers and the London Court of International Arbitration which he described as “constructive and purposeful.” Moily also interacted with several UK law firms and the UK India Business Council, visited the Supreme Court of UK to witness the proceedings and attended a reception at the House of Commons. Emphasising that India has evolved a National Litigation Policy, Moily said Government at the Centre and States are the biggest litigants and efforts were on to settle them at the earliest. In rural areas, the Gram Nyayalaya including Mobile Courts have been set up and the Gram Nyayala would dispose off cases within six months. In the next five years, there will be 5,000 Gram Nyayalayas (village courts), he said. On the question of opening up the Legal system to foreign legal firms, he said, the issue is being discussed with the Bar council of India. “There is slight change in their perception,” he said. Answering a question on the issue of the Bhopal gas tragedy, he said “in future it will not be repeated”. Replying to a question he said: “Government of India is also enthusiastic about having a special relationship with Britain in several spheres.” Source: LatestNews-Home - Livemint.com | 10 Jul 2010 | 5:44 am Petronas says Newfield pipeline source of oil sheenPetronas had said on Friday it shut down pipelines at an oil platform after discovering an oil sheen near facilities it shared with Newfield and the Malaysian unit of Exxon Mobil.Source: Daily News & Analysis: Money News | 10 Jul 2010 | 5:09 am Army withdrawal to be considered after 13 July, says OmarSrinagar: Jammu and Kashmir government will consider the option of withdrawing deployment of the army from the valley after the Martyrs’ Day on 13 July and the situation as of now was well under control, state chief minister Omar Abdullah said on Saturday. “Even now the army has not been brought into the city. It is only in the periphery, that too it was deployed two days ago,” he told PTI in an interview. Conceding that it was the most difficult decision for him to seek the assistance of Army from the Centre, the 40-year-old chief minister, the youngest in the country to occupy the post, said that it was one decision that he would not like to repeat in his term in the office. Asked when his government would consider withdrawing the Army, which was called out on Tuesday night after escalation in violence in the valley, Abdullah said that it would be done when the government has that level of confidence. “The situation is being monitored on a daily basis. We will consider that option after 13 July and take a decision,” he said in a reference to the observance of Martyrs’ Day which is commemorated in memory of those who died fighting the Dogra rule. Abdullah ruled out quitting the post and also dismissed speculation that his father and union minister Farooq Abdullah would step into his shoes. “A host of people would like me to quit but I am not contemplating such a decision,” he said when asked if he had at any time thought of stepping down. Asked about his father’s arrival in the city in the midst of the current situation and reports that he would like to take over as chief minister, Abdullah said there was criticism when his father was not in Kashmir. “And now that he is coming for his mother’s death anniversary on Sunday, my detractors are speculating.” He declined to comment on suggestions that he and his father should swap places and also on reports questioning whether he enjoyed the support of his party. Abdullah was at pains to point out that the army was deployed only near the airport on the first day and the second day and was no longer deployed anywhere. The government has not formally cancelled the request for army’s assistance but the option is still there. “While we sought the help, we are firm that the army will not be in direct confrontation with protesters and therefore we asked them to conduct a flag march. That was the need of the hour,” he said. Source: LatestNews-Home - Livemint.com | 10 Jul 2010 | 5:07 am China shrugs off global fears with export strengthBeijing: China’s trade surplus in June topped expectations on surprising strength in exports that suggests the global economy maintained momentum despite worries about a fresh slowdown. Chinese exports in June rose 43.9% from a year earlier, beating forecasts of a 38% rise. Imports rose 34.1% year on year, in line with projections. That left China with a trade surplus of $20.0 billion, its largest in nine months. The market had expected a surplus of $13.8 billion. “Exports were better than expected because the negative impact from the European debt crisis was not as serious as the market had feared,” said Liu Nenghua, an economist with Bank of Communications in Shanghai. “Growth in China’s exports will slow down in coming months, that’s for sure,” Liu added. “But there will be no sharp drop.” The strong trade numbers could help ease fears -- for a time, at least -- about the potential for a skid in the Chinese economy after the government’s campaign to clamp down on the red-hot property market. It could also lead to fresh calls for Beijing to let the yuan rise more quickly. China de-pegged its currency from the US dollar on 19 June, after keeping it locked in place for 23 months to help exporters ride out the global economic turmoil. The yuan has gained just 0.78% against the dollar since then, and pressure is again building on US President Barack Obama to take a stronger line against Beijing. Critics say a persistently undervalued exchange rate gives China an unfair trade advantage, robbing other countries of jobs and growth. Concerns lurk In that respect, the wider Chinese trade surplus is not entirely welcome news for the global economy. Over the past year, with the US and European economies struggling to regain their footing, global firms and investors looked to China to make up for the shortfall in their demand. China’s slowdown in import growth, from a year-on-year pace of 48.3% in June, was in large part caused by a higher base of comparison, but it also pointed to a slackening in domestic demand as investment flags. Imports grew 0.9% from May after calendar adjustments, the customs authority said. And if a sustained rebound in China’s exports adds fuel to trade disputes with Europe and the US, that would be an additional source of uncertainty for markets at a time of great concern about the fragility of the global recovery. But analysts said that China’s export strength might be transitory. Shipments could slow in coming months as US. fiscal stimulus fades and European governments ut back on spending. Though sales to emerging markets surged in June, they cannot compensate for a downturn in demand from major economies, Tom Orlik, an economist with Stone & McCarthy Research Associates in Beijing, said. “A resurgent trade surplus will clearly strengthen the argument for rapid appreciation of the yuan,” he said. “But with the global recovery on slippery sands, the outlook for China’s exports is not as stable as the last two months of data suggest.” Source: LatestNews-Home - Livemint.com | 10 Jul 2010 | 4:53 am India ranked second in global manufacturing competenceWashington: India has been ranked second, ahead of the US and South Korea, in terms of manufacturing competence globally, a report by Deloitte has said. China, followed by India and South Korea has been ranked first, second and third respectively in the 2010 Global Manufacturing Competitiveness Index; a result of the collaboration between Deloitte Touche Tohmatsu and the US Council on Competitiveness. “In less than a decade, a new world order for manufacturing competitiveness has emerged along with a tectonic shift in regional manufacturing competence,” the report said. The rise in the manufacturing competitiveness of three countries in particular — China, India, and the Republic of Korea (Korea) — appears to parallel the rapidly growing and important Asian market,“ said the 56-page report. The report notes that China’s ascent to the top of the list is not surprising, given its rising eminence in the manufacturing sector over the past ten years, particularly as a regional hub for foreign outsourced production, foreign direct investments, and joint ventures. “Perhaps more surprising is that India is now positioned at number two and gaining an even stronger foothold on that position over the next five years,” the report said, adding India’s rich talent pool of scientists, researchers, and engineers as well as its large, well-educated English-speaking workforce and democratic regime make it an attractive destination for manufacturers. Noting that since the mid-1990s, India’s software industry has escalated to new heights and post-economic liberation has also opened a pathway to unprecedented market opportunities for Indian manufacturing, it said moreover, beyond low-cost, Indian manufacturers gained experience in quality improvement and Japanese principles of quality management, with the largest number of Deming Award winners outside of Japan. “The country is also rapidly expanding its capabilities in engineering design and development and embedded software development, which form an integral part of many modern-day manufactured products,” it said. The importance of India to manufacturing executives around the world underscores two important points, it said. Under the current competitive index China tops the ranking with the maximum 10 points, followed by India (8.15), South Korea (6.79), the US (5.84), Brazil (5.41) and Japan (5.11). First, strength in research and development, paired with engineering, software, and technology integration abilities, are viewed by global executives as a vital element of the talent-driven and innovative manufacturing enterprise of the 21st century. “Second, manufacturing executives increasingly view India as a place where they can design, develop and manufacture innovative products for sale in local as well as in global markets,” the report said. “These factors explain, in part, India’s rise from a low-cost, ‘back office´ location to a country that is well-positioned to be an active participant in the entire value chain-as well as it now being viewed by many executives as an integral part of their global manufacturing enterprise and location strategy,” the report said. Projecting the competitiveness ranking after five years, the report says while China with 10 points would still remain on the top, India would inch closer to China with 9.01 points. South Korea would remain at the third slot with 6.53 points, while Brazil (6.32) would replace US (5.38) to the fourth slot. The United States would drop down to the fifth place, followed by Mexico (4.84), Japan (4.74) and Germany (4.53). Source: LatestNews-Home - Livemint.com | 10 Jul 2010 | 4:25 am Harley-Davidson opens first Indian dealershipNew Delhi: Harley-Davidson has launched its first Indian dealership as it pitches the “freedom of the open road” in a nation with some of the world’s most congested traffic, the US company said Saturday. Harley-Davidson, the iconic heavyweight motorcycle maker, launched its first outlet in the southern city of Hyderabad on Friday and plans to open more across the country, the company said in an emailed statement. “We look forward to initiating a new era of motorcycling,” said Anoop Prakash, managing director of Harley-Davidson India. The Milwaukee-based company, whose brand was made famous in the movie “Easy Rider”, is using the slogan “Hear the Roar!”. Prakash said bike is well suited for Indian roads due to its weight and hulking design, adding that the company plans to launch in other cities before the end of the year, including capital New Delhi and financial hub Mumbai. But while India is the world’s second-largest motorcycle market, most sales are of small, inexpensive bikes that can weave through traffic in India’s clogged cities easier than a 1500cc Harley “Fat Boy”. India does have open roads outside the large cities but many are potholed and make for less than easy riding. The bikes, which loyal riders affectionately nickname Hogs, are made in the United States and shipped to India where they face hefty custom duties. The cost of the bikes in India start at Rs6,95,000 ($14,917) and range up to Rs34,95,000, said a spokeswoman. Moving into India is part of Harley Davidson’s strategy to break into emerging markets as its customers in developed markets are ageing. The company, which cites the lure of India’s rapidly growing economy and rising middle class, is launching 12 variants of the bikes in the country. Source: LatestNews-Home - Livemint.com | 10 Jul 2010 | 4:22 am
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