MUMBAI (Reuters) - Singapore's DBS on Tuesday said, it would sell stake in its Indian mutual fund unit to Chennai-based Murugappa Group for 91 rupees a share.
DBS Cholamandalam Asset Management is run by Cholamandalam DBS Finance, a joint venture between DBS, Southeast Asia's biggest bank, and India's Murugappa Group.
Tuesday, March 30, 2010
StanChart files prospectus for India listing
HONG KONG/MUMBAI (Reuters) - Standard Chartered has filed a draft prospectus to raise up to $750 million through an issue of Indian Depositary Receipts, the first such offering in Asia's third-largest economy.
StanChart, which is expanding its presence across Asia, is also listed in Hong Kong. The bank, which gets 20.5 percent of the group's profit from India, said earlier this month it planned to raise $500 million to $750 million through the issue during the second quarter of this year.
The amount it raises will depend on market conditions and investor demand, the bank said on Tuesday.
Profits in India topped $1 billion in 2009, the second country to do so after Hong Kong.
The bank said it had hired UBS AG, Goldman Sachs, JM Financial Consultants, DSP Merrill Lynch, Kotak Mahindra Capital and SBI Capital Markets to manage the offering.
StanChart appointed its STCI Capital Markets unit as a co-book running lead manager.
StanChart, which is expanding its presence across Asia, is also listed in Hong Kong. The bank, which gets 20.5 percent of the group's profit from India, said earlier this month it planned to raise $500 million to $750 million through the issue during the second quarter of this year.
The amount it raises will depend on market conditions and investor demand, the bank said on Tuesday.
Profits in India topped $1 billion in 2009, the second country to do so after Hong Kong.
The bank said it had hired UBS AG, Goldman Sachs, JM Financial Consultants, DSP Merrill Lynch, Kotak Mahindra Capital and SBI Capital Markets to manage the offering.
StanChart appointed its STCI Capital Markets unit as a co-book running lead manager.
Monday, March 29, 2010
The new way to make money from Hollywood
The new Hollywood Stock Exchange, where moviegoers can make (and lose) money from placing bets on a film's potential success
I made nearly $100 this week betting that The Girl with the Dragon Tattoo will take rather more than $5m at the US box office over the next few weeks. And I'm doing pretty well from my punt that Chloe, an erotic thriller starring Julianne Moore, will bomb when it opens across America this weekend. But no one seems to agree with me that Ca$h, a psychological thriller about a couple facing foreclosure on their Chicago home, starring Sean Bean, could be a surprise hit.
Welcome to the new Hollywood Stock Exchange, where moviegoers can make (and lose) money from placing bets on a film's potential success. And this isn't some two-bit internet betting outfit. Behind the launch is Cantor Fitzgerald, one of New York's biggest financial brokerages.
But I'm not about to become a day-trading movie mogul. For now, it's play money; a shadow portfolio of punts that won't make or lose any real cash. The exchange goes live next month, after winning approval from the U.S. Commodity Futures Trading Commission. It will be called DBOR (Domestic Box Office Receipts) Movie Futures, and it is trying to lure speculators with the tag line “trade what you know”.
The launch is aimed squarely at the U.S. public and movie industry, but Richard Jaycobs, President of Cantor Exchange, says he is examining ways in which U.K. investors can participate. Details of the new exchange won't emerge until closer to the launch but for now, movie fans can try their luck on the hsx.com website — it stands for Hollywood Stock Exchange — which is run by Cantor Fitzgerald and gives a flavour of what futures trading will be like when applied to the film industry.
Punters choose from a huge list of “movie stocks”, priced on the exchange according to market expectations of their box office success. Each $1 of the stock's price represents an expected $1m in box office receipts. For example, units in Hot Tub Time Machine, a sci-fi comedy opening this weekend in the U.S., were trading midweek at around $72; in other words, the market expects it to gross around $72m. If you buy it at $72 and it grosses more than that, you're in the money. If it takes less, you're out of pocket.
Think a film is over-hyped and will flop? The exchange lets speculators “short” or sell a movie. For example, Chloe was trading at $10.83 when I decided to short it last week. I admit I'm no movie buff: all I did was look up The Guardian's review (“a by-the-numbers drama, with no believable tension'') and hey, this isn't real money (yet). Maybe quite a few people in the U.S. have also read Peter Bradshaw's review because Chloe dropped to $9.66 on the exchange this week. This means that on paper, I've made some 10 per cent.
The final reckoning comes with the formal box office returns. These are based on total U.S. takings over four weeks for wide release films and 12 weeks for limited releases, after which they are delisted from the exchange. As Chloe is wide release, my punt is that it will make less than $10.83m over four weeks. Does this sound a bit too easy? Well, it turns out most users of hsx.com expected Avatar to flop, yet it went on to take $730m in the U.S. alone. If punters had put real money behind their bets, they could have been nursing huge losses, as shorting can magnify the downside.
Critics might be wondering at this point why Cantor is doing this. Is there really that much to be made from gullible punters who think they can outsmart Hollywood producers? In truth, the exchange has been designed for big studios to hedge their risks, in much the same way that farmers can take out forward contracts on everything from pork bellies to orange juice. And it comes at a time when, in spite of the success of Avatar, film producers are wary of falling DVD sales (down 12 per cent in the U.S. last year) and illegal downloads. “With the launch of the DBOR Movie Futures contract trading, movie distributors, exhibitors, producers, and investment entities will have an unprecedented public market to create liquidity and hedge their daily business. The Cantor Exchange will provide a new component to the film finance formula to combat the uncertainties of the home video market and growing 3D marketplace,” says Andrew Wing, Chief Executive of Cantor Entertainment.
But the new exchange is not without its critics. Writing in the Washington Post, Steven Pearlstein said: “If nothing else, the movie exchange is an obvious invitation to trading with insider information, allowing those who are actually producing a movie to bet on its outcome against outsiders who have never read the script, reviewed the dailies or seen the marketing budget.”
Cantor won't even have the market to itself. Veriana, a U.S. private investment group, is launching The Trend Exchange next month, although with a high minimum investment (contracts are expected to be priced from $100,000) it is aimed at institutions. Founder and Chief Executive Robert Swagger says: “By offering speculators and hedgers a market-based solution to transfer the considerable financial risks associated with major movie productions, The Trend Exchange will perform the same public service that futures exchanges have been providing to commercial users for nearly 200 years.”
It is backed by Ralph Winter, producer of the X-Men and Fantastic Four series of films.
I made nearly $100 this week betting that The Girl with the Dragon Tattoo will take rather more than $5m at the US box office over the next few weeks. And I'm doing pretty well from my punt that Chloe, an erotic thriller starring Julianne Moore, will bomb when it opens across America this weekend. But no one seems to agree with me that Ca$h, a psychological thriller about a couple facing foreclosure on their Chicago home, starring Sean Bean, could be a surprise hit.
Welcome to the new Hollywood Stock Exchange, where moviegoers can make (and lose) money from placing bets on a film's potential success. And this isn't some two-bit internet betting outfit. Behind the launch is Cantor Fitzgerald, one of New York's biggest financial brokerages.
But I'm not about to become a day-trading movie mogul. For now, it's play money; a shadow portfolio of punts that won't make or lose any real cash. The exchange goes live next month, after winning approval from the U.S. Commodity Futures Trading Commission. It will be called DBOR (Domestic Box Office Receipts) Movie Futures, and it is trying to lure speculators with the tag line “trade what you know”.
The launch is aimed squarely at the U.S. public and movie industry, but Richard Jaycobs, President of Cantor Exchange, says he is examining ways in which U.K. investors can participate. Details of the new exchange won't emerge until closer to the launch but for now, movie fans can try their luck on the hsx.com website — it stands for Hollywood Stock Exchange — which is run by Cantor Fitzgerald and gives a flavour of what futures trading will be like when applied to the film industry.
Punters choose from a huge list of “movie stocks”, priced on the exchange according to market expectations of their box office success. Each $1 of the stock's price represents an expected $1m in box office receipts. For example, units in Hot Tub Time Machine, a sci-fi comedy opening this weekend in the U.S., were trading midweek at around $72; in other words, the market expects it to gross around $72m. If you buy it at $72 and it grosses more than that, you're in the money. If it takes less, you're out of pocket.
Think a film is over-hyped and will flop? The exchange lets speculators “short” or sell a movie. For example, Chloe was trading at $10.83 when I decided to short it last week. I admit I'm no movie buff: all I did was look up The Guardian's review (“a by-the-numbers drama, with no believable tension'') and hey, this isn't real money (yet). Maybe quite a few people in the U.S. have also read Peter Bradshaw's review because Chloe dropped to $9.66 on the exchange this week. This means that on paper, I've made some 10 per cent.
The final reckoning comes with the formal box office returns. These are based on total U.S. takings over four weeks for wide release films and 12 weeks for limited releases, after which they are delisted from the exchange. As Chloe is wide release, my punt is that it will make less than $10.83m over four weeks. Does this sound a bit too easy? Well, it turns out most users of hsx.com expected Avatar to flop, yet it went on to take $730m in the U.S. alone. If punters had put real money behind their bets, they could have been nursing huge losses, as shorting can magnify the downside.
Critics might be wondering at this point why Cantor is doing this. Is there really that much to be made from gullible punters who think they can outsmart Hollywood producers? In truth, the exchange has been designed for big studios to hedge their risks, in much the same way that farmers can take out forward contracts on everything from pork bellies to orange juice. And it comes at a time when, in spite of the success of Avatar, film producers are wary of falling DVD sales (down 12 per cent in the U.S. last year) and illegal downloads. “With the launch of the DBOR Movie Futures contract trading, movie distributors, exhibitors, producers, and investment entities will have an unprecedented public market to create liquidity and hedge their daily business. The Cantor Exchange will provide a new component to the film finance formula to combat the uncertainties of the home video market and growing 3D marketplace,” says Andrew Wing, Chief Executive of Cantor Entertainment.
But the new exchange is not without its critics. Writing in the Washington Post, Steven Pearlstein said: “If nothing else, the movie exchange is an obvious invitation to trading with insider information, allowing those who are actually producing a movie to bet on its outcome against outsiders who have never read the script, reviewed the dailies or seen the marketing budget.”
Cantor won't even have the market to itself. Veriana, a U.S. private investment group, is launching The Trend Exchange next month, although with a high minimum investment (contracts are expected to be priced from $100,000) it is aimed at institutions. Founder and Chief Executive Robert Swagger says: “By offering speculators and hedgers a market-based solution to transfer the considerable financial risks associated with major movie productions, The Trend Exchange will perform the same public service that futures exchanges have been providing to commercial users for nearly 200 years.”
It is backed by Ralph Winter, producer of the X-Men and Fantastic Four series of films.
Sunday, March 28, 2010
Investing in India
India is the 12th largest economy in the world and has the second largest population at 1.13B. India’s GDP grew 9.1% in 2007 and grew about 8% each of the previous three years. However, while India’s economy is booming, its lack of natural resources, compared to emerging markets like Brazil and Russia, and lack of infrastructure investment present real obstacles to the country's further growth. The Indian government also expects that about $500B in infrastructure investment will be needed to support the ongoing growth of the country. The economy ran into difficulties in 2008 as inflation rose to 11.4%, the highest since 1995, due largely to record prices in oil and other major commodities. The stock market fell 40% in the first half of 2008 and foreign investors withdrew $5.5B from the market after having put $19B into the market in 2007. India also has a fiscal deficit amounting to 6% of GDP, higher than any other major emerging market.
Major Indian Companies
Energy
• Reliance Industries Limited (RELIANCE.EQ-IN) is the largest company in India.
• Oil and Natural Gas Corporation (ONGC.EQ-IN) is a major oil and gas producer.
• Indian Oil Corporation Limited (IOC.EQ-IN) is an oil producer.
• NTPC Limited (NTPC-BY) is a major utilities company.
Banking
• ICICI Bank (ICICIBANK-BY) - ICICI Bank is the largest credit card provider in India.
• HDFC Bank (HDFCBANK.EQ-IN)
• State Bank of India (SBI-BY) is the largest bank in India.
Telecommunications
• Bharti Airtel (BHARTIARTL-BY) is a major telecom services provider.
• Reliance Communications (RCOMSL-BY) is a major telecom services provider.
Industrial
• Steel Authority of India Limited (SAIL-BY) is the largest steel producer in India.
• Tata Steel Limited (TATASTL-BY) is the second largest steel producer.
• Hindustan Zinc Limited (HINDZINC-BY) is a mining company that produces zinc and lead.
• Bharat Heavy Electricals Limited (BHEL-BY) is an industrial manufacturing and engineering company.
Retail
• Pantaloon Retail Limited (PANTALOONR.EQ-IN) is India's largest retailer.
• Shoppers Stop Limited (SHOPERSTOP-BY) is an Indian department store.
Services
• Infosys Technologies (INFY) is the largest IT outsourcing company in India.
• Wipro (WIT) is a major IT outsourcing company.
• Satyam Computer Services (SAY) is a major IT outsourcing company.
• Tata Consultancy Services (TCS-BY)
• Catvision Products Ltd (CATVISIO) is a niche security technology company in India.
Automotive
• Tata Motors (TTM) is the largest automobile manufacturer in India.
• Maruti Suzuki India (MARUTI-BY) is a major automobile manufacturer, especially for small cars.
• Mahindra_&_Mahindra_Ltd_(MNM-BY) is the top tractor maker and also is one of the car-makers.
Foreign Companies Invested in India
• Nokia's second largest market behind China is India. Nokia's Asia-Pacific segment made up 22% of sales in 2007, predominantly coming from China and India. India was Nokia's third largest market in 2006, but passed the US in 2007 putting it in the second place spot.
• Hyundai is the second largest car manufacturer in India and had a 17% share in the automobile market in 2007.
• IBM is the largest multinational company in India and received about $1B in sales from India in 2007.
Trends and Forces
India Pays High Price to Fuel Rapidly Growing Economy
India's GDP grew 9.1% in 2007 and over 8% per year the three years before that, but India does not have the natural resources to cover the majority of the fuel demanded by this growth. India must import 75% of its oil and in 2007/2008 oil prices hit record highs. India paid $68B in oil imports in 2007-2008, a 40% increase from the previous year. In an effort to reduce the pain of high oil prices, India is turning to one of its few major resources: coal. Coal makes up about 55% of India's energy needs, with about 83% of coal coming from the state-run oil company, Coal India Limited. However, domestic coal production is still not sufficient as Coal India's chairman said that he expects coal imports to rise 10% in 2008. Coal India is also investing in operations in Africa, Indonesia, Canada, and Australia to help meet the demand. While India must import a lot of its energy, the domestic energy companies, like Reliance Industries and Indian Oil Corporation, are still in high demand and growing rapidly.
A Booming Retail Market
The retail market has grown 1,440% between 1991 and 2007 and is the 5th largest retail market in the world at $330B in 2007. India has 12M retail outlets, but the market is by no means dominated by organized retail chains. Only 4% of India’s retail market is made up by organized retailers, and, as a result, foreign companies have started to invest in the growing Indian market. McKinsey Global reported that the middle class in India could grow from 50M to 300M and that the average Indian income will grow 300% by 2025. However, already India is the 3rd largest country in the world by purchasing power and has the second largest population in the world – 1.1B people.
Expanding the Infrastructure
The Indian government expects that about $500B in infrastructure investment will be needed to support the ongoing growth of the country. In 2007 only 20% of India’s roads were considered to be in good condition and it takes an average of 3 to 5 days for a port to turnaround a ship (compared to 4 to 6 hours in Hong Kong and Singapore). On top of that, India has not expanded its air infrastructure since 2002, but over that same time the number of air passengers has increased 25%. India's GDP is growing at an average annual rate of 7%, but without an equally impressive investment in India's infrastructure, the growth can not be sustained. Tata Steel and the Steel Authority of India are the two largest steel companies in India.
Growth of Internet and Technology Usage
About 40% of the 1.1B person population is 18 or younger, and this is the generation leading the adoption of the internet and consumer technology products. Between 2000 and 2007, the number of Indian people using the internet grew 700%. The internet population grew to 60M which represents a 5.2% penetration. This, however, is very low compared to penetration in the US, Japan, and South Korea which are all around 68% penetration. Of those 60M users, only about 3M have access to broadband. At the same time, India is the fastest growing mobile phone market in the world. Gartner predicts that India's market will be $37B by 2012 (a compounded annual growth rate of 12%). In 2007, mobile phone penetration was 19.8%, but Gartner expects that to increase to 60.7% by 2012. India has primarily a rural population and a low average income so mobile phone manufacturers are focusing on handsets below $25. Market prices for notebooks tend to be lowered in the Indian market as well in order for companies to gain market share, but the introduction of "netbooks" or mobile internet devices, could provide a cheaper alternative to notebooks for consumers in India.
$31B in Software Exports
Software exports have grown from 500M in 1994 to 31B in March 2007, making up about 22% of India's exports. India is the largest exporter of software beating out both China and Russia. IT business process outsourcing grew 33% in 2007 and Nasscom expects the IT industry in India will grow to $75B by 2010. India’s largest IT outsourcing companies like Infosys and Wipro have also started to set up branches in other possible outsourcing hot spots like China, Latin America, and Morocco.
India's Demographics
For the most part, India remains a rural population. About 77% of the country lives outside the cities and about 60% of the workforce is in agriculture. The average Indian salary has grown 15.2%, the most of any country in the world in 2007, but, at the same time, 30% of the population is in poverty and only about 61% are literate. The educational system has been neglected for many years and while there are finally efforts to revamp India's education, it will take time for measures to take effect. Only 10% of Indian children go to college and, as a result, India is suffering from a shortage of skilled labor.
Major Indian Companies
Energy
• Reliance Industries Limited (RELIANCE.EQ-IN) is the largest company in India.
• Oil and Natural Gas Corporation (ONGC.EQ-IN) is a major oil and gas producer.
• Indian Oil Corporation Limited (IOC.EQ-IN) is an oil producer.
• NTPC Limited (NTPC-BY) is a major utilities company.
Banking
• ICICI Bank (ICICIBANK-BY) - ICICI Bank is the largest credit card provider in India.
• HDFC Bank (HDFCBANK.EQ-IN)
• State Bank of India (SBI-BY) is the largest bank in India.
Telecommunications
• Bharti Airtel (BHARTIARTL-BY) is a major telecom services provider.
• Reliance Communications (RCOMSL-BY) is a major telecom services provider.
Industrial
• Steel Authority of India Limited (SAIL-BY) is the largest steel producer in India.
• Tata Steel Limited (TATASTL-BY) is the second largest steel producer.
• Hindustan Zinc Limited (HINDZINC-BY) is a mining company that produces zinc and lead.
• Bharat Heavy Electricals Limited (BHEL-BY) is an industrial manufacturing and engineering company.
Retail
• Pantaloon Retail Limited (PANTALOONR.EQ-IN) is India's largest retailer.
• Shoppers Stop Limited (SHOPERSTOP-BY) is an Indian department store.
Services
• Infosys Technologies (INFY) is the largest IT outsourcing company in India.
• Wipro (WIT) is a major IT outsourcing company.
• Satyam Computer Services (SAY) is a major IT outsourcing company.
• Tata Consultancy Services (TCS-BY)
• Catvision Products Ltd (CATVISIO) is a niche security technology company in India.
Automotive
• Tata Motors (TTM) is the largest automobile manufacturer in India.
• Maruti Suzuki India (MARUTI-BY) is a major automobile manufacturer, especially for small cars.
• Mahindra_&_Mahindra_Ltd_(MNM-BY) is the top tractor maker and also is one of the car-makers.
Foreign Companies Invested in India
• Nokia's second largest market behind China is India. Nokia's Asia-Pacific segment made up 22% of sales in 2007, predominantly coming from China and India. India was Nokia's third largest market in 2006, but passed the US in 2007 putting it in the second place spot.
• Hyundai is the second largest car manufacturer in India and had a 17% share in the automobile market in 2007.
• IBM is the largest multinational company in India and received about $1B in sales from India in 2007.
Trends and Forces
India Pays High Price to Fuel Rapidly Growing Economy
India's GDP grew 9.1% in 2007 and over 8% per year the three years before that, but India does not have the natural resources to cover the majority of the fuel demanded by this growth. India must import 75% of its oil and in 2007/2008 oil prices hit record highs. India paid $68B in oil imports in 2007-2008, a 40% increase from the previous year. In an effort to reduce the pain of high oil prices, India is turning to one of its few major resources: coal. Coal makes up about 55% of India's energy needs, with about 83% of coal coming from the state-run oil company, Coal India Limited. However, domestic coal production is still not sufficient as Coal India's chairman said that he expects coal imports to rise 10% in 2008. Coal India is also investing in operations in Africa, Indonesia, Canada, and Australia to help meet the demand. While India must import a lot of its energy, the domestic energy companies, like Reliance Industries and Indian Oil Corporation, are still in high demand and growing rapidly.
A Booming Retail Market
The retail market has grown 1,440% between 1991 and 2007 and is the 5th largest retail market in the world at $330B in 2007. India has 12M retail outlets, but the market is by no means dominated by organized retail chains. Only 4% of India’s retail market is made up by organized retailers, and, as a result, foreign companies have started to invest in the growing Indian market. McKinsey Global reported that the middle class in India could grow from 50M to 300M and that the average Indian income will grow 300% by 2025. However, already India is the 3rd largest country in the world by purchasing power and has the second largest population in the world – 1.1B people.
Expanding the Infrastructure
The Indian government expects that about $500B in infrastructure investment will be needed to support the ongoing growth of the country. In 2007 only 20% of India’s roads were considered to be in good condition and it takes an average of 3 to 5 days for a port to turnaround a ship (compared to 4 to 6 hours in Hong Kong and Singapore). On top of that, India has not expanded its air infrastructure since 2002, but over that same time the number of air passengers has increased 25%. India's GDP is growing at an average annual rate of 7%, but without an equally impressive investment in India's infrastructure, the growth can not be sustained. Tata Steel and the Steel Authority of India are the two largest steel companies in India.
Growth of Internet and Technology Usage
About 40% of the 1.1B person population is 18 or younger, and this is the generation leading the adoption of the internet and consumer technology products. Between 2000 and 2007, the number of Indian people using the internet grew 700%. The internet population grew to 60M which represents a 5.2% penetration. This, however, is very low compared to penetration in the US, Japan, and South Korea which are all around 68% penetration. Of those 60M users, only about 3M have access to broadband. At the same time, India is the fastest growing mobile phone market in the world. Gartner predicts that India's market will be $37B by 2012 (a compounded annual growth rate of 12%). In 2007, mobile phone penetration was 19.8%, but Gartner expects that to increase to 60.7% by 2012. India has primarily a rural population and a low average income so mobile phone manufacturers are focusing on handsets below $25. Market prices for notebooks tend to be lowered in the Indian market as well in order for companies to gain market share, but the introduction of "netbooks" or mobile internet devices, could provide a cheaper alternative to notebooks for consumers in India.
$31B in Software Exports
Software exports have grown from 500M in 1994 to 31B in March 2007, making up about 22% of India's exports. India is the largest exporter of software beating out both China and Russia. IT business process outsourcing grew 33% in 2007 and Nasscom expects the IT industry in India will grow to $75B by 2010. India’s largest IT outsourcing companies like Infosys and Wipro have also started to set up branches in other possible outsourcing hot spots like China, Latin America, and Morocco.
India's Demographics
For the most part, India remains a rural population. About 77% of the country lives outside the cities and about 60% of the workforce is in agriculture. The average Indian salary has grown 15.2%, the most of any country in the world in 2007, but, at the same time, 30% of the population is in poverty and only about 61% are literate. The educational system has been neglected for many years and while there are finally efforts to revamp India's education, it will take time for measures to take effect. Only 10% of Indian children go to college and, as a result, India is suffering from a shortage of skilled labor.
Tuesday, March 23, 2010
Obama welcomes healthcare vote
US President Barack Obama has said the approval by Congress of his landmark healthcare bill was a victory for the American people and common sense.
Here is the full text of Mr Obama's remarks, delivered at the White House.
Good evening, everybody. Tonight, after nearly 100 years of talk and frustration, after decades of trying, and a year of sustained effort and debate, the United States Congress finally declared that America's workers and America's families and America's small businesses deserve the security of knowing that here, in this country, neither illness nor accident should endanger the dreams they've worked a lifetime to achieve.
Tonight, at a time when the pundits said it was no longer possible, we rose above the weight of our politics. We pushed back on the undue influence of special interests. We didn't give in to mistrust or to cynicism or to fear.
I know this wasn't an easy vote for a lot of people. But it was the right vote
Instead, we proved that we are still a people capable of doing big things and tackling our biggest challenges. We proved that this government - a government of the people and by the people - still works for the people.
I want to thank every member of Congress who stood up tonight with courage and conviction to make healthcare reform a reality. And I know this wasn't an easy vote for a lot of people. But it was the right vote.
I want to thank Speaker Nancy Pelosi for her extraordinary leadership, and Majority Leader Steny Hoyer and Majority Whip Jim Clyburn for their commitment to getting the job done.
I want to thank my outstanding Vice President, Joe Biden, and my wonderful Secretary of Health and Human Services, Kathleen Sebelius, for their fantastic work on this issue.
I want to thank the many staffers in Congress, and my own incredible staff in the White House, who have worked tirelessly over the past year with Americans of all walks of life to forge a reform package finally worthy of the people we were sent here to serve.
'Prayers answered'
Today's vote answers the dreams of so many who have fought for this reform.
To every unsung American who took the time to sit down and write a letter or type out an e-mail hoping your voice would be heard - it has been heard tonight.
Today's vote answers the prayers of every American who has hoped deeply for something to be done about a healthcare system that works for insurance companies, but not for ordinary people
To the untold numbers who knocked on doors and made phone calls, who organised and mobilized out of a firm conviction that change in this country comes not from the top down, but from the bottom up - let me reaffirm that conviction: this moment is possible because of you.
Most importantly, today's vote answers the prayers of every American who has hoped deeply for something to be done about a healthcare system that works for insurance companies, but not for ordinary people.
For most Americans, this debate has never been about abstractions, the fight between right and left, Republican and Democrat - it's always been about something far more personal.
It's about every American who knows the shock of opening an envelope to see that their premiums just shot up again when times are already tough enough.
It's about every parent who knows the desperation of trying to cover a child with a chronic illness only to be told "no" again and again and again.
It's about every small business owner forced to choose between insuring employees and staying open for business. They are why we committed ourselves to this cause.
Tonight's vote is not a victory for any one party - it's a victory for them. It's a victory for the American people. And it's a victory for common sense.
'Major reform'
Now, it probably goes without saying that tonight's vote will give rise to a frenzy of instant analysis. There will be tallies of Washington winners and losers, predictions about what it means for Democrats and Republicans, for my poll numbers, for my administration.
This legislation will not fix everything that ails our healthcare system. But it moves us decisively in the right direction. This is what change looks like
But long after the debate fades away and the prognostication fades away and the dust settles, what will remain standing is not the government-run system some feared, or the status quo that serves the interests of the insurance industry, but a healthcare system that incorporates ideas from both parties - a system that works better for the American people.
If you have health insurance, this reform just gave you more control by reining in the worst excesses and abuses of the insurance industry with some of the toughest consumer protections this country has ever known - so that you are actually getting what you pay for.
If you don't have insurance, this reform gives you a chance to be a part of a big purchasing pool that will give you choice and competition and cheaper prices for insurance.
And it includes the largest healthcare tax cut for working families and small businesses in history - so that if you lose your job and you change jobs, start that new business, you'll finally be able to purchase quality, affordable care and the security and peace of mind that comes with it.
This reform is the right thing to do for our seniors. It makes Medicare stronger and more solvent, extending its life by almost a decade.
And it's the right thing to do for our future. It will reduce our deficit by more than $100bn over the next decade, and more than $1 trillion in the decade after that.
So this isn't radical reform. But it is major reform. This legislation will not fix everything that ails our healthcare system. But it moves us decisively in the right direction. This is what change looks like.
'Call of history'
Now as momentous as this day is, it's not the end of this journey.
On Tuesday, the Senate will take up revisions to this legislation that the House has embraced, and these are revisions that have strengthened this law and removed provisions that had no place in it.
When faced with crisis, we did not shrink from our challenge - we overcame it. We did not avoid our responsibility - we embraced it. We did not fear our future - we shaped it
Some have predicted another siege of parliamentary manoeuvring in order to delay adoption of these improvements. I hope that's not the case.
It's time to bring this debate to a close and begin the hard work of implementing this reform properly on behalf of the American people. This year, and in years to come, we have a solemn responsibility to do it right.
Nor does this day represent the end of the work that faces our country.
The work of revitalising our economy goes on. The work of promoting private sector job creation goes on. The work of putting American families' dreams back within reach goes on. And we march on, with renewed confidence, energized by this victory on their behalf.
In the end, what this day represents is another stone firmly laid in the foundation of the American Dream. Tonight, we answered the call of history as so many generations of Americans have before us.
When faced with crisis, we did not shrink from our challenge - we overcame it. We did not avoid our responsibility - we embraced it. We did not fear our future - we shaped it.
Here is the full text of Mr Obama's remarks, delivered at the White House.
Good evening, everybody. Tonight, after nearly 100 years of talk and frustration, after decades of trying, and a year of sustained effort and debate, the United States Congress finally declared that America's workers and America's families and America's small businesses deserve the security of knowing that here, in this country, neither illness nor accident should endanger the dreams they've worked a lifetime to achieve.
Tonight, at a time when the pundits said it was no longer possible, we rose above the weight of our politics. We pushed back on the undue influence of special interests. We didn't give in to mistrust or to cynicism or to fear.
I know this wasn't an easy vote for a lot of people. But it was the right vote
Instead, we proved that we are still a people capable of doing big things and tackling our biggest challenges. We proved that this government - a government of the people and by the people - still works for the people.
I want to thank every member of Congress who stood up tonight with courage and conviction to make healthcare reform a reality. And I know this wasn't an easy vote for a lot of people. But it was the right vote.
I want to thank Speaker Nancy Pelosi for her extraordinary leadership, and Majority Leader Steny Hoyer and Majority Whip Jim Clyburn for their commitment to getting the job done.
I want to thank my outstanding Vice President, Joe Biden, and my wonderful Secretary of Health and Human Services, Kathleen Sebelius, for their fantastic work on this issue.
I want to thank the many staffers in Congress, and my own incredible staff in the White House, who have worked tirelessly over the past year with Americans of all walks of life to forge a reform package finally worthy of the people we were sent here to serve.
'Prayers answered'
Today's vote answers the dreams of so many who have fought for this reform.
To every unsung American who took the time to sit down and write a letter or type out an e-mail hoping your voice would be heard - it has been heard tonight.
Today's vote answers the prayers of every American who has hoped deeply for something to be done about a healthcare system that works for insurance companies, but not for ordinary people
To the untold numbers who knocked on doors and made phone calls, who organised and mobilized out of a firm conviction that change in this country comes not from the top down, but from the bottom up - let me reaffirm that conviction: this moment is possible because of you.
Most importantly, today's vote answers the prayers of every American who has hoped deeply for something to be done about a healthcare system that works for insurance companies, but not for ordinary people.
For most Americans, this debate has never been about abstractions, the fight between right and left, Republican and Democrat - it's always been about something far more personal.
It's about every American who knows the shock of opening an envelope to see that their premiums just shot up again when times are already tough enough.
It's about every parent who knows the desperation of trying to cover a child with a chronic illness only to be told "no" again and again and again.
It's about every small business owner forced to choose between insuring employees and staying open for business. They are why we committed ourselves to this cause.
Tonight's vote is not a victory for any one party - it's a victory for them. It's a victory for the American people. And it's a victory for common sense.
'Major reform'
Now, it probably goes without saying that tonight's vote will give rise to a frenzy of instant analysis. There will be tallies of Washington winners and losers, predictions about what it means for Democrats and Republicans, for my poll numbers, for my administration.
This legislation will not fix everything that ails our healthcare system. But it moves us decisively in the right direction. This is what change looks like
But long after the debate fades away and the prognostication fades away and the dust settles, what will remain standing is not the government-run system some feared, or the status quo that serves the interests of the insurance industry, but a healthcare system that incorporates ideas from both parties - a system that works better for the American people.
If you have health insurance, this reform just gave you more control by reining in the worst excesses and abuses of the insurance industry with some of the toughest consumer protections this country has ever known - so that you are actually getting what you pay for.
If you don't have insurance, this reform gives you a chance to be a part of a big purchasing pool that will give you choice and competition and cheaper prices for insurance.
And it includes the largest healthcare tax cut for working families and small businesses in history - so that if you lose your job and you change jobs, start that new business, you'll finally be able to purchase quality, affordable care and the security and peace of mind that comes with it.
This reform is the right thing to do for our seniors. It makes Medicare stronger and more solvent, extending its life by almost a decade.
And it's the right thing to do for our future. It will reduce our deficit by more than $100bn over the next decade, and more than $1 trillion in the decade after that.
So this isn't radical reform. But it is major reform. This legislation will not fix everything that ails our healthcare system. But it moves us decisively in the right direction. This is what change looks like.
'Call of history'
Now as momentous as this day is, it's not the end of this journey.
On Tuesday, the Senate will take up revisions to this legislation that the House has embraced, and these are revisions that have strengthened this law and removed provisions that had no place in it.
When faced with crisis, we did not shrink from our challenge - we overcame it. We did not avoid our responsibility - we embraced it. We did not fear our future - we shaped it
Some have predicted another siege of parliamentary manoeuvring in order to delay adoption of these improvements. I hope that's not the case.
It's time to bring this debate to a close and begin the hard work of implementing this reform properly on behalf of the American people. This year, and in years to come, we have a solemn responsibility to do it right.
Nor does this day represent the end of the work that faces our country.
The work of revitalising our economy goes on. The work of promoting private sector job creation goes on. The work of putting American families' dreams back within reach goes on. And we march on, with renewed confidence, energized by this victory on their behalf.
In the end, what this day represents is another stone firmly laid in the foundation of the American Dream. Tonight, we answered the call of history as so many generations of Americans have before us.
When faced with crisis, we did not shrink from our challenge - we overcame it. We did not avoid our responsibility - we embraced it. We did not fear our future - we shaped it.
Greek economy 'to worsen' in 2010 says central bank
Greece's economy is in a "vicious circle" and will contract more severely than the government says, according to the country's central bank.
The Bank of Greece (BoG) said economic output in 2010 will fall by 2%, worse than the government's prediction of between 1.2% and 1.7%.
BoG says the recession will be worse due to planned public spending cuts.
The report comes ahead of a European Union summit which may discuss Greece's economic crisis.
BoG said that it approves of Athens' strategy to bring down the country's budget deficit, but that the impact will be worse than first thought.
"The Greek economy has fallen into a vicious circle with only one way out: the drastic reduction of the deficit and debt," the Bank's annual monetary policy report says.
The report warned that the eurozone's economic recovery remains fragile, having relied to a large extent on fiscal stimulus, which must gradually be reversed as it is leading to large budget deficits.
The report said: "The economic policy that has been announced is the start of this effort.
"Its efficient implementation will lead to a virtuous circle that will bring the Greek economy back on a sustainable growth orbit."
European aid
Greece's budget deficit last year was 12.9% of GDP, more than four times the limit under eurozone rules.
There have been conflicting reports about whether eurozone countries will discuss Greece's plight at a summit on Thursday.
Germany has irritated some of its European partners with its opposition to a financial aid to help Greece overcome its debt crisis, believing that Athens itself can solve the problem.
German Chancellor Angela Merkel told Greek Prime Minister George Papandreou on Sunday that the European Union was ready to "do what is necessary to preserve the stability of the eurozone".
Yet, in a radio interview, she said she opposed any move by EU leaders to take a firm decision on the Greek question at Thursday's summit, as Greece does not need money at the moment.
Financial markets have intensified pressure on Greece, which must refinance more than 50bn euros (£44.8bn) in debt this year, including more than 20bn euros by the end of May.
Athens must now pay roughly twice the interest that Germany does to borrow money, and has asked the EU to either guarantee loans or lend money outright if Greece cannot raise the funds it needs at reasonable rates.
The Bank of Greece (BoG) said economic output in 2010 will fall by 2%, worse than the government's prediction of between 1.2% and 1.7%.
BoG says the recession will be worse due to planned public spending cuts.
The report comes ahead of a European Union summit which may discuss Greece's economic crisis.
BoG said that it approves of Athens' strategy to bring down the country's budget deficit, but that the impact will be worse than first thought.
"The Greek economy has fallen into a vicious circle with only one way out: the drastic reduction of the deficit and debt," the Bank's annual monetary policy report says.
The report warned that the eurozone's economic recovery remains fragile, having relied to a large extent on fiscal stimulus, which must gradually be reversed as it is leading to large budget deficits.
The report said: "The economic policy that has been announced is the start of this effort.
"Its efficient implementation will lead to a virtuous circle that will bring the Greek economy back on a sustainable growth orbit."
European aid
Greece's budget deficit last year was 12.9% of GDP, more than four times the limit under eurozone rules.
There have been conflicting reports about whether eurozone countries will discuss Greece's plight at a summit on Thursday.
Germany has irritated some of its European partners with its opposition to a financial aid to help Greece overcome its debt crisis, believing that Athens itself can solve the problem.
German Chancellor Angela Merkel told Greek Prime Minister George Papandreou on Sunday that the European Union was ready to "do what is necessary to preserve the stability of the eurozone".
Yet, in a radio interview, she said she opposed any move by EU leaders to take a firm decision on the Greek question at Thursday's summit, as Greece does not need money at the moment.
Financial markets have intensified pressure on Greece, which must refinance more than 50bn euros (£44.8bn) in debt this year, including more than 20bn euros by the end of May.
Athens must now pay roughly twice the interest that Germany does to borrow money, and has asked the EU to either guarantee loans or lend money outright if Greece cannot raise the funds it needs at reasonable rates.
Budget 2010: The economic challenge in graphics
Chancellor Alistair Darling has warned repeatedly that Wednesday's Budget - the last before the general election - will be unlikely to hold much cheer.
There would be "no giveaway", he told the BBC, saying that the Budget would reflect "the times in which we live".
It is an acknowledgement of the huge economic challenges that still face the country, and the restrictions those put on the chancellor's Budget plans.
The first challenge is to sustain the fragile economic recovery , which saw the UK emerge from recession with a growth rate of 0.3% in the last three months of 2009.
Economists are divided over the strength of the recovery, and the risk of the economy falling back into recession.
The state of the economy has a direct impact on unemployment , which has risen to its highest level since the early '90s as struggling companies lay off staff.
Measures to keep people in their jobs have been repeatedly cited as a priority for the government.
But, like other stimulus measures, it is limited in what it can do because of the dire state of the UK's public finances .
The UK's budget deficit - the gap between the amount it spends and the amount it earns through taxes - is forecast to rise to up to £178bn this year.
That will push up the total amount of government debt to £850bn.
In order to start paying back that debt, the deficit will need to be closed in the coming years, and that means either increasing taxes or making cuts to public spending , or both.
Alistair Darling has defended his plan to cut the deficit by half over four years, arguing that faster cuts risk harming the recovery.
His plans for the budget deficit and expectations for the economy as a whole will be closely watched by investors in the UK economy, and the financial markets they invest in.
There would be "no giveaway", he told the BBC, saying that the Budget would reflect "the times in which we live".
It is an acknowledgement of the huge economic challenges that still face the country, and the restrictions those put on the chancellor's Budget plans.
The first challenge is to sustain the fragile economic recovery , which saw the UK emerge from recession with a growth rate of 0.3% in the last three months of 2009.
Economists are divided over the strength of the recovery, and the risk of the economy falling back into recession.
The state of the economy has a direct impact on unemployment , which has risen to its highest level since the early '90s as struggling companies lay off staff.
Measures to keep people in their jobs have been repeatedly cited as a priority for the government.
But, like other stimulus measures, it is limited in what it can do because of the dire state of the UK's public finances .
The UK's budget deficit - the gap between the amount it spends and the amount it earns through taxes - is forecast to rise to up to £178bn this year.
That will push up the total amount of government debt to £850bn.
In order to start paying back that debt, the deficit will need to be closed in the coming years, and that means either increasing taxes or making cuts to public spending , or both.
Alistair Darling has defended his plan to cut the deficit by half over four years, arguing that faster cuts risk harming the recovery.
His plans for the budget deficit and expectations for the economy as a whole will be closely watched by investors in the UK economy, and the financial markets they invest in.
Budget 2010: Top ten Budget tax changes since 1997
1, Dividend tax credits
In his first Budget in 1997, Gordon Brown announced the abolition of payable dividend tax credits for pension funds and other companies. This is often referred to as having had one of the most significant impacts on pension fund returns.
2, Stamp duty
1997 was also the year in which a graduated stamp duty was announced. Since then the threshold has increased from £60,000 to £125,000 (with a temporary increase to £175,000) and the rate for properties over £500,000 has doubled from 2pc to 4pc.
3, Tax credits
Gordon Brown would probably argue that tax credits are the most significant tax development. When he introduced the working families tax credit in the 1998 Budget, Gordon Brown said it would “..abolish the grotesque distortion where some low paid employees have had to pay back more than a pound for every extra pound they earn”.
4, Capital gains tax
Also in 1998, the Chancellor abolished the system of indexation for capital gains tax and introduced taper relief which provided an effective rate of 10pc on disposal of business assets and was looked upon as being a real boost for entrepreneurial businesses. In the 2007 Pre-Budget Report (PBR) nearly ten years later, taper relief was abolished and a flat rate of 18pc was introduced.
5, Benefits in kind
In the 1999 Budget the Chancellor extended employer national insurance contributions to all benefits in kind provided to employees whereas it had previously only applied to company cars and fuel. This imposed a considerable financial burden on some employers.
6, Environmental taxation
Over the course of the 1999 and 2000 Budgets climate change levy and aggregates levy were introduced to cut emissions and reduce pollution. Since then, along with landfill tax, these measures have been the cornerstone of the Government’s environmental policies.
7, Research and development relief
In the 2000 Budget small and medium-sized companies were given relief for expenditure on qualifying research and development and this was extended to large companies in the 2002 Budget to boost innovation and research in Britain.
8, Corporation tax rates
Of course Budgets are most famous for changing tax rates and Gordon Brown kicked this off by cutting the corporation tax rate from 33pc to 31pc in the 1997 Budget. It is now 28pc. A 10pc starting rate was announced in 1999, was reduced to 0pc in 2002 and was eventually abolished in 2005.
9, Income tax rates
In the 1999 Budget, the basic rate of income tax was cut from 23pc to 22pc, the 20pc rate was abolished and 10pc starting rate was announced. In the 2008 PBR, the basic rate was cut to 20pc and the starting rate was abolished for non-savings income. The most controversial change came in the 2008 PBR with the announcement of a 45pc rate (later amended to 50pc in the 2009 Budget) for high earners.
10, Holding companies
Over the course of a number of Budgets, a variety of measures have been introduced to create a regime to encourage holding companies to come to the UK. Such measures include double tax relief reform, the substantial shareholdings exemption, the dividend exemption and the new patent box rules
In his first Budget in 1997, Gordon Brown announced the abolition of payable dividend tax credits for pension funds and other companies. This is often referred to as having had one of the most significant impacts on pension fund returns.
2, Stamp duty
1997 was also the year in which a graduated stamp duty was announced. Since then the threshold has increased from £60,000 to £125,000 (with a temporary increase to £175,000) and the rate for properties over £500,000 has doubled from 2pc to 4pc.
3, Tax credits
Gordon Brown would probably argue that tax credits are the most significant tax development. When he introduced the working families tax credit in the 1998 Budget, Gordon Brown said it would “..abolish the grotesque distortion where some low paid employees have had to pay back more than a pound for every extra pound they earn”.
4, Capital gains tax
Also in 1998, the Chancellor abolished the system of indexation for capital gains tax and introduced taper relief which provided an effective rate of 10pc on disposal of business assets and was looked upon as being a real boost for entrepreneurial businesses. In the 2007 Pre-Budget Report (PBR) nearly ten years later, taper relief was abolished and a flat rate of 18pc was introduced.
5, Benefits in kind
In the 1999 Budget the Chancellor extended employer national insurance contributions to all benefits in kind provided to employees whereas it had previously only applied to company cars and fuel. This imposed a considerable financial burden on some employers.
6, Environmental taxation
Over the course of the 1999 and 2000 Budgets climate change levy and aggregates levy were introduced to cut emissions and reduce pollution. Since then, along with landfill tax, these measures have been the cornerstone of the Government’s environmental policies.
7, Research and development relief
In the 2000 Budget small and medium-sized companies were given relief for expenditure on qualifying research and development and this was extended to large companies in the 2002 Budget to boost innovation and research in Britain.
8, Corporation tax rates
Of course Budgets are most famous for changing tax rates and Gordon Brown kicked this off by cutting the corporation tax rate from 33pc to 31pc in the 1997 Budget. It is now 28pc. A 10pc starting rate was announced in 1999, was reduced to 0pc in 2002 and was eventually abolished in 2005.
9, Income tax rates
In the 1999 Budget, the basic rate of income tax was cut from 23pc to 22pc, the 20pc rate was abolished and 10pc starting rate was announced. In the 2008 PBR, the basic rate was cut to 20pc and the starting rate was abolished for non-savings income. The most controversial change came in the 2008 PBR with the announcement of a 45pc rate (later amended to 50pc in the 2009 Budget) for high earners.
10, Holding companies
Over the course of a number of Budgets, a variety of measures have been introduced to create a regime to encourage holding companies to come to the UK. Such measures include double tax relief reform, the substantial shareholdings exemption, the dividend exemption and the new patent box rules
Monday, March 22, 2010
Subbarao Begins India Battle to Contain Accelerating Inflation
March 22 (Bloomberg) -- India central bank Governor Duvvuri Subbarao may add to his first interest rate increase since the end of the global recession after falling in danger of being judged too slow to contain accelerating consumer prices.
The next move may come as soon as next month, according to Morgan Stanley and IHS Global Insight. The Reserve Bank of India boosted the benchmark reverse repurchase rate to 3.5 percent from a record-low 3.25 percent and the repurchase rate to 5 percent from 4.75 percent on March 19, saying curbing inflation has become “imperative.”
The announcement followed Nomura Holdings Inc. saying the RBI was “behind the curve” after inflation hit a 16-month high and exceeded the rate in all other Group of Twenty economies. Indian stocks may tumble today as investors anticipate higher borrowing costs, with the benchmark Sensitive Index at risk of a 200-point drop, according CNI Research (India) Ltd. in Mumbai.
“The strength of India’s domestic demand will keep inflation fairly high,” Jyoti Narasimhan, research director for India at IHS Global in Lexington, Massachusetts, said in an interview. “This is definitely the first of many rate increases to come. We could see another hike in April. Twenty five basis points is not a heroic move.”
The quarter-point rise was a down payment on 3 percentage points of increases that the central bank will need to enact this year to stem inflation, according to Goldman Sachs Group Inc.
Global Trend
India followed Australia and Malaysia in lifting borrowing costs this month, while Norway and Israel did so at the end of last year, as the global economy recovered from the worst recession since World War II.
Inflation has returned to Asia as the region leads the global economic recovery. India’s wholesale-price inflation rate touched 9.89 percent in February, exceeding the central bank’s 8.5 percent forecast by March-end.
Factory output in Malaysia rose 12.7 percent in January. Consumer prices in China rose to a 16-month high of 2.7 percent in February from a year earlier as industrial production grew 20.7 percent in the first two months of 2010, the most in more than five years.
Still lagging behind India are central banks in the Group of Seven economies with the Federal Reserve and European Central Bank among those waiting for evidence of a more concrete recovery before they reverse record low borrowing costs. Canada may be the first G-7 central bank to shift after data showed its core inflation rate unexpectedly accelerated last month.
Before Meeting
Subbarao moved a month before the bank’s scheduled April 20 monetary policy meeting after India’s industrial output gained 16.7 percent in January from a year earlier, following a 17.6 percent increase in December that was the biggest jump since at least 1994, according to Bloomberg data.
“Given the lags in monetary policy, it is better to respond in a timely manner, even if it is outside the scheduled policy reviews, than take stronger measures at a later stage when inflationary expectations have accentuated,” the central bank said in its March 19 statement.
The bank will “maintain this tightening path,” Morgan Stanley economist Chetan Ahya said in a note on March 19. He expects Subbarao to increase rates by another 25 basis points on April 20. The rates may go up by one percentage point in 2010, including last week’s raise, he said.
‘Growing Discomfort’
The rate increase will end a rally in the government bond market and the benchmark 10-year note yield may rise to around 8 percent this week, said Indranil Pan, chief economist at Kotak Mahindra Bank Ltd. in Mumbai.
India’s 10-year notes completed their best week since September on March 19, and stocks had their biggest weekly gain in nine months, after Standard & Poor’s upgraded the nation’s debt-rating outlook to stable from negative on optimism for economic growth and government plans to narrow the budget gap.
Yields declined 18 basis points to 7.83 percent in Mumbai last week, while the Sensitive index rose 2.4 percent to 17,578.23 during the period.
The central bank said economic “recovery is increasingly taking hold” and pointed to the latest industrial production data as evidence of a “revival of private demand.”
India’s passenger-car sales gained to a record in February amid rising incomes in the world’s second-most populous nation. The demand is encouraging Ford Motor Co. and Volkswagen AG to build plants and unveil new models in the South Asian nation.
India’s $1.2 trillion economy, Asia’s biggest after Japan and China, may expand 8.2 percent in the next fiscal year, compared with 7.2 percent in the year to March 31, the finance ministry said in February.
Inflation is politically sensitive in a country such as India, where the World Bank estimates almost three-quarters of the nation’s 1.2 billion people live on less than $2 a day.
Opposition parties led by the Bharatiya Janata Party repeatedly stalled proceedings in parliament this month, accusing Prime Minister Manmohan Singh’s government of being anti-poor and failing to curb prices.
The next move may come as soon as next month, according to Morgan Stanley and IHS Global Insight. The Reserve Bank of India boosted the benchmark reverse repurchase rate to 3.5 percent from a record-low 3.25 percent and the repurchase rate to 5 percent from 4.75 percent on March 19, saying curbing inflation has become “imperative.”
The announcement followed Nomura Holdings Inc. saying the RBI was “behind the curve” after inflation hit a 16-month high and exceeded the rate in all other Group of Twenty economies. Indian stocks may tumble today as investors anticipate higher borrowing costs, with the benchmark Sensitive Index at risk of a 200-point drop, according CNI Research (India) Ltd. in Mumbai.
“The strength of India’s domestic demand will keep inflation fairly high,” Jyoti Narasimhan, research director for India at IHS Global in Lexington, Massachusetts, said in an interview. “This is definitely the first of many rate increases to come. We could see another hike in April. Twenty five basis points is not a heroic move.”
The quarter-point rise was a down payment on 3 percentage points of increases that the central bank will need to enact this year to stem inflation, according to Goldman Sachs Group Inc.
Global Trend
India followed Australia and Malaysia in lifting borrowing costs this month, while Norway and Israel did so at the end of last year, as the global economy recovered from the worst recession since World War II.
Inflation has returned to Asia as the region leads the global economic recovery. India’s wholesale-price inflation rate touched 9.89 percent in February, exceeding the central bank’s 8.5 percent forecast by March-end.
Factory output in Malaysia rose 12.7 percent in January. Consumer prices in China rose to a 16-month high of 2.7 percent in February from a year earlier as industrial production grew 20.7 percent in the first two months of 2010, the most in more than five years.
Still lagging behind India are central banks in the Group of Seven economies with the Federal Reserve and European Central Bank among those waiting for evidence of a more concrete recovery before they reverse record low borrowing costs. Canada may be the first G-7 central bank to shift after data showed its core inflation rate unexpectedly accelerated last month.
Before Meeting
Subbarao moved a month before the bank’s scheduled April 20 monetary policy meeting after India’s industrial output gained 16.7 percent in January from a year earlier, following a 17.6 percent increase in December that was the biggest jump since at least 1994, according to Bloomberg data.
“Given the lags in monetary policy, it is better to respond in a timely manner, even if it is outside the scheduled policy reviews, than take stronger measures at a later stage when inflationary expectations have accentuated,” the central bank said in its March 19 statement.
The bank will “maintain this tightening path,” Morgan Stanley economist Chetan Ahya said in a note on March 19. He expects Subbarao to increase rates by another 25 basis points on April 20. The rates may go up by one percentage point in 2010, including last week’s raise, he said.
‘Growing Discomfort’
The rate increase will end a rally in the government bond market and the benchmark 10-year note yield may rise to around 8 percent this week, said Indranil Pan, chief economist at Kotak Mahindra Bank Ltd. in Mumbai.
India’s 10-year notes completed their best week since September on March 19, and stocks had their biggest weekly gain in nine months, after Standard & Poor’s upgraded the nation’s debt-rating outlook to stable from negative on optimism for economic growth and government plans to narrow the budget gap.
Yields declined 18 basis points to 7.83 percent in Mumbai last week, while the Sensitive index rose 2.4 percent to 17,578.23 during the period.
The central bank said economic “recovery is increasingly taking hold” and pointed to the latest industrial production data as evidence of a “revival of private demand.”
India’s passenger-car sales gained to a record in February amid rising incomes in the world’s second-most populous nation. The demand is encouraging Ford Motor Co. and Volkswagen AG to build plants and unveil new models in the South Asian nation.
India’s $1.2 trillion economy, Asia’s biggest after Japan and China, may expand 8.2 percent in the next fiscal year, compared with 7.2 percent in the year to March 31, the finance ministry said in February.
Inflation is politically sensitive in a country such as India, where the World Bank estimates almost three-quarters of the nation’s 1.2 billion people live on less than $2 a day.
Opposition parties led by the Bharatiya Janata Party repeatedly stalled proceedings in parliament this month, accusing Prime Minister Manmohan Singh’s government of being anti-poor and failing to curb prices.
Friday, March 19, 2010
Facebook beats Google as most-visited site in US
Facebook has become the most-visited site in the US after beating former title holder Google.
The popular social networking page toppled the search giant after accounting for 7.07 per cent of all US web traffic compared to Google’s 7.03 per cent, web analysts Hitwise revealed.
“It’s definitely a big moment for Facebook, even though they beat by a small margin,” News.com.au quoted Hitwise’s Matt Tatham as telling CNN.
He added, “People want information from friends they trust, versus the anonymity of a search engine.” The research did not include other Google services such as Gmail and YouTube.
The popular social networking page toppled the search giant after accounting for 7.07 per cent of all US web traffic compared to Google’s 7.03 per cent, web analysts Hitwise revealed.
“It’s definitely a big moment for Facebook, even though they beat by a small margin,” News.com.au quoted Hitwise’s Matt Tatham as telling CNN.
He added, “People want information from friends they trust, versus the anonymity of a search engine.” The research did not include other Google services such as Gmail and YouTube.
Microsoft to launch Office 2010 by June
Global software giant Microsoft Corp. will launch the latest version of its popular application suite MS Office 2010 for Indian users in June, a top official said here Thursday.
“The Office 2010 will be available for both businesses and consumers in June,” Microsoft Corp.’s India Chairman Ravi Venkatesan told reporters here on the sidelines of an seminar on social inclusion here.
The latest version features office web applications which will include online versions of MS Word, Excel, Power Point and OneNot. It will allow sharing and collaboration of documents and files.
Microsoft had already released the beta version, a soft launch, of MS Office 2010 and related web applications in November 2009.
Early this month, the company also unveiled in India its latest offering in the area of cloud computing called Windows Azure that will help companies share software and storage facilities and bring down their total IT spend by as much as 50 per cent.
In cloud computing, companies share computer resources, such as servers, software and data storage, through the internet, instead of setting up such infrastructure at their own end.
World Bank provides $1.05 bn to improve education in India
The World Bank has approved two projects worth $ 1.05 billion (over Rs 4,800 crore) for India, aimed at expanding the reach of primary schools and the quality of engineering education in the country.
“The World Bank today approved two education projects worth USD 1.05 billion for India, designed to boost the number of children enrolling in and completing elementary school, and to improve quality of engineering education across the country,” it said in a statement.
It further said India has made significant progress in meeting its education goals, especially at the primary level.
Through its 86th constitutional amendment in 2002, India mandated elementary education as a fundamental right of every child.
The same year, the government also launched the Sarva Shiksha Abhiyan (SSA), a nationwide program to take quality elementary education to all children.
The Bank has supported the SSA with total grants of USD 1.1 billion since 2003, it added.
“SSA -- now the largest ongoing Education for All (EFA) program in the world -- has been remarkably successful, particularly in achieving greater access to elementary education,” said Roberto Zagha, World Bank Country Director for India.
Between 2003 and 2009, the number of children reportedly enrolled in elementary education in India increased by 57 million to 192 million.
Billionaires in ‘Cricket-Mad’ India Seek Market-Beating Teams
March 19 (Bloomberg) -- Cricket has proven a better investment than the stock market for India’s billionaires, prompting tycoons to line up this weekend to buy new franchises.
The Indian Premier League, playing a three-hour version of the traditional five-day game, has set a March 21 deadline for prospective owners to bid for its ninth and 10th teams. The $225 million minimum is more than double the highest bid submitted for an original team.
The eight teams’ owners include Mukesh Ambani, the world’s fourth-richest man and chairman of Reliance Industries Ltd.; billionaire Vijay Mallya, chairman of UB Group; Rupert Murdoch’s son, Lachlan; and movie megastar Shah Rukh Khan. The league’s appreciation outpaced last year’s 81 percent gain in India’s benchmark Sensitive Index, the most in 18 years.
“The speed with which the IPL has been able to generate value in a very short span of time is astonishing,” said Unni Krishnan, managing director of Brand Finance in India. “I would bet that there is no comparable brand in the world.”
Growth was fueled by a $1.8 billion TV contract with a Sony Corp. unit and a deal with Google Inc. to show matches on YouTube. Now IPL founder and chairman Lalit Modi, 46, wants to bring the fast-paced version of the game, called Twenty20, to the U.S. Modi met USA Cricket Association Chief Executive Officer Donald Lockerbie in Dubai last month to discuss holding IPL matches on American fields, or pitches, by 2011.
Brand Value Doubled
The IPL has more than doubled its brand value to $4.13 billion now from $2.01 billion in 2009, according to Brand Finance Plc.
“The IPL is a powerful new product in the sports industry and we will work hard to see USA Cricket and the IPL succeed together and energize the growth of cricket in our country,” Lockerbie said after the initial meeting.
The two organizations will meet again in May.
The bidders this weekend will include billionaire Venugopal Dhoot, chairman of Videocon Industries Ltd., which makes mobile phones and other consumer durables.
“It’s a good business proposal and I was also the captain of a college team and know how to handle the cricketers,” he said yesterday.
$1 Billion Net Worth
This will be the second attempt at an auction, initially scheduled for March 7. Bidders originally were required to have a net worth of at least $1 billion and to pay an advance bank guarantee of $100 million if they won. Modi dropped those requirements after several companies complained, he said on Twitter. He didn’t identify them.
Bids submitted before the auction’s original date included Dhoot; Gautam Adani, whose Adani Group owns ports and power plants; and Jaiprakash Gaur’s construction company Jaiprakash Associates Ltd., the Hindu Business Line reported.
Jaiprakash Associates spokeswoman Sunita Joshi and Adani Enterprises Ltd. spokesman Devendra Amin didn’t respond to calls seeking comment.
The IPL is fortified by the world’s second-fastest growing major economy, where gross domestic product may expand 8.2 percent in the fiscal year starting April 1, the Finance Ministry said Feb. 25. That’s up from an estimated 7.2 percent this year.
TV Revenue
It is modeled after major American sports leagues, where teams maintain membership regardless of performance -- unlike soccer’s English Premier League -- and share TV revenue, said Stefan Szymanski, a professor at Cass Business School in London. The IPL’s growth has come even as the league played last season in South Africa because of security concerns after the November 2008 terrorist attack in Mumbai.
“The IPL is structured in a way that should work economically for the owners,” Szymanski said. “The incentive structure of football encourages teams to invest beyond their means.”
The first IPL champion, the Rajasthan Royals, cost $67 million in 2008. Last year, actress Shilpa Shetty and her husband bought an 11.7 percent stake that valued the club at $140 million.
“This is probably the highest appreciation for any franchise in the history of modern-day sports,” Modi said.
Brand Finance, of London, increased the IPL’s valuation after Multi Screen Media Pvt., a unit of Tokyo-based Sony Corp., signed a nine-year broadcast deal before the 2009 season for a total of 82 billion rupees.
Fashion Show
The IPL generated $200 million in revenue in its inaugural year from streams including ticket sales, uniform advertisements and merchandising. Modi sold title sponsorships, named an official drinks maker and organized a fashion show.
The league’s YouTube page generated about 10 million views since its third season started March 12, according to the Web site. Advertisers include HSBC Holdings Plc, Hewlett-Packard Co., Coca-Cola Co. and Samsung Electronics Co. Ltd.
Teams use that money to pay some of cricket’s highest salaries. In a January auction, Ambani bid $2.5 million for Trinidadian Kieron Pollard, the NDTV 24X7 channel reported.
Former England national team captains Kevin Pietersen and Andrew Flintoff were acquired for $1.55 million each last year.
Ownership is more than about money, Szymanski and owners said. It brings increased brand awareness and membership in a display of the nation’s No. 1 sport.
“Everybody knew that India was cricket-mad and there was a potential for a commercial cricket competition in India,” Szymanski said. “The question was: Could you pull it off? Lalit Modi proved that you could.”
The Indian Premier League, playing a three-hour version of the traditional five-day game, has set a March 21 deadline for prospective owners to bid for its ninth and 10th teams. The $225 million minimum is more than double the highest bid submitted for an original team.
The eight teams’ owners include Mukesh Ambani, the world’s fourth-richest man and chairman of Reliance Industries Ltd.; billionaire Vijay Mallya, chairman of UB Group; Rupert Murdoch’s son, Lachlan; and movie megastar Shah Rukh Khan. The league’s appreciation outpaced last year’s 81 percent gain in India’s benchmark Sensitive Index, the most in 18 years.
“The speed with which the IPL has been able to generate value in a very short span of time is astonishing,” said Unni Krishnan, managing director of Brand Finance in India. “I would bet that there is no comparable brand in the world.”
Growth was fueled by a $1.8 billion TV contract with a Sony Corp. unit and a deal with Google Inc. to show matches on YouTube. Now IPL founder and chairman Lalit Modi, 46, wants to bring the fast-paced version of the game, called Twenty20, to the U.S. Modi met USA Cricket Association Chief Executive Officer Donald Lockerbie in Dubai last month to discuss holding IPL matches on American fields, or pitches, by 2011.
Brand Value Doubled
The IPL has more than doubled its brand value to $4.13 billion now from $2.01 billion in 2009, according to Brand Finance Plc.
“The IPL is a powerful new product in the sports industry and we will work hard to see USA Cricket and the IPL succeed together and energize the growth of cricket in our country,” Lockerbie said after the initial meeting.
The two organizations will meet again in May.
The bidders this weekend will include billionaire Venugopal Dhoot, chairman of Videocon Industries Ltd., which makes mobile phones and other consumer durables.
“It’s a good business proposal and I was also the captain of a college team and know how to handle the cricketers,” he said yesterday.
$1 Billion Net Worth
This will be the second attempt at an auction, initially scheduled for March 7. Bidders originally were required to have a net worth of at least $1 billion and to pay an advance bank guarantee of $100 million if they won. Modi dropped those requirements after several companies complained, he said on Twitter. He didn’t identify them.
Bids submitted before the auction’s original date included Dhoot; Gautam Adani, whose Adani Group owns ports and power plants; and Jaiprakash Gaur’s construction company Jaiprakash Associates Ltd., the Hindu Business Line reported.
Jaiprakash Associates spokeswoman Sunita Joshi and Adani Enterprises Ltd. spokesman Devendra Amin didn’t respond to calls seeking comment.
The IPL is fortified by the world’s second-fastest growing major economy, where gross domestic product may expand 8.2 percent in the fiscal year starting April 1, the Finance Ministry said Feb. 25. That’s up from an estimated 7.2 percent this year.
TV Revenue
It is modeled after major American sports leagues, where teams maintain membership regardless of performance -- unlike soccer’s English Premier League -- and share TV revenue, said Stefan Szymanski, a professor at Cass Business School in London. The IPL’s growth has come even as the league played last season in South Africa because of security concerns after the November 2008 terrorist attack in Mumbai.
“The IPL is structured in a way that should work economically for the owners,” Szymanski said. “The incentive structure of football encourages teams to invest beyond their means.”
The first IPL champion, the Rajasthan Royals, cost $67 million in 2008. Last year, actress Shilpa Shetty and her husband bought an 11.7 percent stake that valued the club at $140 million.
“This is probably the highest appreciation for any franchise in the history of modern-day sports,” Modi said.
Brand Finance, of London, increased the IPL’s valuation after Multi Screen Media Pvt., a unit of Tokyo-based Sony Corp., signed a nine-year broadcast deal before the 2009 season for a total of 82 billion rupees.
Fashion Show
The IPL generated $200 million in revenue in its inaugural year from streams including ticket sales, uniform advertisements and merchandising. Modi sold title sponsorships, named an official drinks maker and organized a fashion show.
The league’s YouTube page generated about 10 million views since its third season started March 12, according to the Web site. Advertisers include HSBC Holdings Plc, Hewlett-Packard Co., Coca-Cola Co. and Samsung Electronics Co. Ltd.
Teams use that money to pay some of cricket’s highest salaries. In a January auction, Ambani bid $2.5 million for Trinidadian Kieron Pollard, the NDTV 24X7 channel reported.
Former England national team captains Kevin Pietersen and Andrew Flintoff were acquired for $1.55 million each last year.
Ownership is more than about money, Szymanski and owners said. It brings increased brand awareness and membership in a display of the nation’s No. 1 sport.
“Everybody knew that India was cricket-mad and there was a potential for a commercial cricket competition in India,” Szymanski said. “The question was: Could you pull it off? Lalit Modi proved that you could.”
Thursday, March 18, 2010
S&P revises outlook on India to stable from negative
MUMBAI: Standard & Poor's Ratings Services today said that it revised the outlook on the Republic of India to stable from negative. At the same time, the agency affirmed the 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India.
The revision in outlook reflects that India's fiscal position could now begin to recover and that its economy will remain on a strong growth path. The government budget targets a general government (including central and state governments) deficit of 8.3% in the fiscal year ending March 31, 2011, from 9.8% in the previous fiscal year.
The government intends to follow the medium-term fiscal consolidation plan outlined by the 13th Finance Commission. The Commission recommended that general government deficit be reduced to 5.4% of GDP and the ratio of general government debt to GDP be lowered to 68% of GDP by the fiscal year ending 2015. The government's decision, in February 2010, to change its fertilizer policy to implement a nutrient-based pricing policy and to raise urea prices by 10% from April 2010 is a step forward for the reduction of subsidies. The budget also announced an average increase in the prices of domestic petroleum and diesel of 6.0% and 7.8% respectively.
"We expect India's GDP growth to be 8.0% in fiscal year ending March 31, 2011, which is higher than many other countries' and exceeds our previous expectation," said Standard & Poor's credit analyst Takahira Ogawa. In addition, Standard & Poor's views India's external position as resilient. We expect the country's ratio of gross external financing need to current account receipts plus international reserves to remain stable at 77% in fiscal 2010.
The revision in outlook reflects that India's fiscal position could now begin to recover and that its economy will remain on a strong growth path. The government budget targets a general government (including central and state governments) deficit of 8.3% in the fiscal year ending March 31, 2011, from 9.8% in the previous fiscal year.
The government intends to follow the medium-term fiscal consolidation plan outlined by the 13th Finance Commission. The Commission recommended that general government deficit be reduced to 5.4% of GDP and the ratio of general government debt to GDP be lowered to 68% of GDP by the fiscal year ending 2015. The government's decision, in February 2010, to change its fertilizer policy to implement a nutrient-based pricing policy and to raise urea prices by 10% from April 2010 is a step forward for the reduction of subsidies. The budget also announced an average increase in the prices of domestic petroleum and diesel of 6.0% and 7.8% respectively.
"We expect India's GDP growth to be 8.0% in fiscal year ending March 31, 2011, which is higher than many other countries' and exceeds our previous expectation," said Standard & Poor's credit analyst Takahira Ogawa. In addition, Standard & Poor's views India's external position as resilient. We expect the country's ratio of gross external financing need to current account receipts plus international reserves to remain stable at 77% in fiscal 2010.
Wednesday, March 17, 2010
M&E industry poised to grow at 13% over next five years
The Indian media and entertainment industry is slated to grow at a compounded annual growth rate (CAGR) of 13 per cent over the next five years to Rs 1,09,100 crore, according to a report by the Federation of Indian Chambers of Commerce and Industry (Ficci) and research firm KPMG. The gaming and the animation segments are expected to lead among all others with an expected CAGR of 32 per cent and 18.7 per cent respectively over the next five years.
The industry witnessed a tough phase in 2009 recording a marginal growth of 1.4 per cent to Rs 58,700 crore due to the economic slowdown and reduction in advertising spends. However, despite the slowdown, the TV industry grew 6.8 per cent in 2009.
The film industry contracted 14 per cent in 2009. Over the next five years, the industry is projected to grow at a CAGR of 9 per cent and reach Rs 13,700 crore. Growth drivers for the sector would include expansion of multiplex screens resulting in better realisations, an increase in the number of digital screens facilitating wider releases, higher cable and satellite revenues, improving collections from the overseas markets and ancillary revenue streams like DTH, digital downloads, etc, which are expected to emerge in future.
In the last year, the print media industry showed a very moderate growth of 2 per cent as there was a decline in advertisement revenues, which was partly offset by the growth in circulation revenues. The industry is projected to grow at a CAGR of 9 per cent and reach around Rs 26,900 crore by 2014.
Radio, like other sectors, was affected by the recession too. However, it is expected to grow at a CAGR of 16 per cent over 2010-14 and reach a size of Rs 1, 640 crore by 2014.
The size of the Indian music industry was estimated at around Rs 830 crore, up from Rs 730 crore in 2008, implying a growth of 14 per cent during the reporting period. It is expected to grow at a CAGR of 16 per cent over 2010-14 to reach Rs 1,720 crore. Gaming is expected to be the fastest growing sector in the M&E industry. While the sector showed a 22 per cent growth in 2009, it is expected to grow at a CAGR of 32 per cent in the next five years to reach Rs 3,200 crore by 2014.
Oil Rises After OPEC Says Demand Rising, U.S. Pledges Low Rates
March 17 (Bloomberg) -- Crude oil rose for a second day after OPEC officials said demand is growing and U.S. Federal Reserve authorities repeated their pledge to keep the main interest rate near zero.
“OPEC says demand is increasing; this is positive for oil,” Roland Stenzel, a crude and carbon trader at E&T Energie Handelsgesellschaft mbH, said from Vienna. “Low interest rates will keep the economy on track.”
Crude for April delivery gained 76 cents, or 0.9 percent, to $82.46 a barrel in electronic trading on the New York Mercantile Exchange as of 11 a.m. London time. Yesterday, the contract rose 2.4 percent, the biggest one-day gain since Feb. 16. Brent crude for May added 89 cents to $81.42 a barrel on the ICE Futures Europe exchange in London.
The Organization of Petroleum Exporting Countries, meeting in Vienna, agreed for a fifth time since late 2008 to keep its production limits unchanged, according to Shokri Ghanem, chairman of Libya’s National Oil Corp.
Prices are “beautiful” and there’s no reason to revisit the group’s output limits, Saudi Arabian Oil Minister Ali al-Naimi said today before the start of the meeting. OPEC “should keep things as they are,” he said. Demand may grow by “around 1 million barrels” a day in the second half of the year, he said.
OPEC cut output limits by a record 4.2 million barrels a day at the end of 2008 as global demand collapsed amid the recession. Compliance dropped to 53 percent in February, it said March 10 in its monthly report. Group members were expected to maintain quotas as oil holds above $80 a barrel, according to 42 of 44 analysts and traders surveyed last week by Bloomberg News.
‘Coming Back Slowly’
“The economies of the big consumers are coming back slowly out of a recession,” OPEC President Germanico Pinto said yesterday. “We should continue the policy stated in 2008 for the moment.”
The U.S. Energy Department is scheduled to release its Weekly Petroleum Status Report at 10:30 a.m. in Washington.
U.S. crude oil inventories are expected to have increased last week as refineries stocked up before the summer holiday driving season.
Stockpiles climbed 1.1 million barrels in the week ended March 12, according to the median estimate from 17 analysts surveyed by Bloomberg News. Supplies previously gained for a sixth week to 343 million barrels, 5.5 percent above the five- year average level. Yesterday, the industry-funded American Petroleum Institute said inventories rose 403,000 barrels to 344 million, the highest since August.
“OPEC says demand is increasing; this is positive for oil,” Roland Stenzel, a crude and carbon trader at E&T Energie Handelsgesellschaft mbH, said from Vienna. “Low interest rates will keep the economy on track.”
Crude for April delivery gained 76 cents, or 0.9 percent, to $82.46 a barrel in electronic trading on the New York Mercantile Exchange as of 11 a.m. London time. Yesterday, the contract rose 2.4 percent, the biggest one-day gain since Feb. 16. Brent crude for May added 89 cents to $81.42 a barrel on the ICE Futures Europe exchange in London.
The Organization of Petroleum Exporting Countries, meeting in Vienna, agreed for a fifth time since late 2008 to keep its production limits unchanged, according to Shokri Ghanem, chairman of Libya’s National Oil Corp.
Prices are “beautiful” and there’s no reason to revisit the group’s output limits, Saudi Arabian Oil Minister Ali al-Naimi said today before the start of the meeting. OPEC “should keep things as they are,” he said. Demand may grow by “around 1 million barrels” a day in the second half of the year, he said.
OPEC cut output limits by a record 4.2 million barrels a day at the end of 2008 as global demand collapsed amid the recession. Compliance dropped to 53 percent in February, it said March 10 in its monthly report. Group members were expected to maintain quotas as oil holds above $80 a barrel, according to 42 of 44 analysts and traders surveyed last week by Bloomberg News.
‘Coming Back Slowly’
“The economies of the big consumers are coming back slowly out of a recession,” OPEC President Germanico Pinto said yesterday. “We should continue the policy stated in 2008 for the moment.”
The U.S. Energy Department is scheduled to release its Weekly Petroleum Status Report at 10:30 a.m. in Washington.
U.S. crude oil inventories are expected to have increased last week as refineries stocked up before the summer holiday driving season.
Stockpiles climbed 1.1 million barrels in the week ended March 12, according to the median estimate from 17 analysts surveyed by Bloomberg News. Supplies previously gained for a sixth week to 343 million barrels, 5.5 percent above the five- year average level. Yesterday, the industry-funded American Petroleum Institute said inventories rose 403,000 barrels to 344 million, the highest since August.
U.K. Jobless Claims Fall at Fastest Pace Since 1997
March 17 (Bloomberg) -- U.K. jobless claims unexpectedly fell in February at the fastest pace since 1997, suggesting the economic recovery is strengthening as Britons prepare for a general election within weeks.
The number of people receiving unemployment benefits dropped 32,300 from January to 1.59 million, the Office for National Statistics said today in London. The median forecast in a Bloomberg News survey of 29 economists was for an increase of 6,000. The pound jumped 0.7 percent against the dollar after the report.
The figures are a boost for Prime Minister Gordon Brown, who is seeking to persuade voters his Labour Party has the best strategy to cement the economic recovery. The Conservatives’ pledge to cut the record budget deficit faster than Brown is planning has cost the party support, raising the specter of a minority government after the election due by June.
“This is probably a good thing for Labour -- the ruling party can say unemployment is on its way down,” said David Tinsley, an economist at National Australia Bank in London and a former Bank of England official. “It’s a fine line they have to tread between talking up the recovery too much and not wanting to withdraw fiscal support too early.”
A wider survey-based measure of unemployment based on International Labour Organization counting methods fell by 33,000 to 2.45 million in the three months through January, the biggest drop since the fourth quarter of 2007. The 7.8 percent jobless rate on that basis compares with 9.7 percent in the U.S., 9.9 percent in the euro region and 4.9 percent in Japan.
Minority Government
In January, the number of jobless claims rose by 5,300 instead of the 23,500 increase originally reported. In February, the jobless rate fell to 4.9 percent from 5 percent.
A March 15 YouGov Plc poll for the Sun newspaper put the Conservatives 5 points ahead of Labour with 37 percent support, compared with a lead of 12 points at the start of the year.
Speculation that no party will get an outright majority of the seats in Parliament at the election sent the pound to a 10- month low against the dollar this month. Investors are concerned that a minority administration will find it hard to cut the deficit, which is almost as big as Greece’s at more than 12 percent of economic output. The pound was trading at $1.5309 as of 9:41 a.m. in London.
The Bank of England said this week its agents expect businesses to keep staff numbers stable in the coming months. Britain emerged from its deepest recession since World War II in the fourth quarter with growth of 0.3 percent.
SThree Plc, a U.K. recruiter for information technology companies, may increase staff levels by between 10 percent and 20 percent as orders improve, Chief Executive Officer Russell Clements said this month.
The statistics office said today growth in weekly pay including bonuses quickened to 0.9 percent in the three months through January from 0.7 percent. Regular pay rose 1.4 percent and bonus pay fell declined 7.1 percent.
The number of people receiving unemployment benefits dropped 32,300 from January to 1.59 million, the Office for National Statistics said today in London. The median forecast in a Bloomberg News survey of 29 economists was for an increase of 6,000. The pound jumped 0.7 percent against the dollar after the report.
The figures are a boost for Prime Minister Gordon Brown, who is seeking to persuade voters his Labour Party has the best strategy to cement the economic recovery. The Conservatives’ pledge to cut the record budget deficit faster than Brown is planning has cost the party support, raising the specter of a minority government after the election due by June.
“This is probably a good thing for Labour -- the ruling party can say unemployment is on its way down,” said David Tinsley, an economist at National Australia Bank in London and a former Bank of England official. “It’s a fine line they have to tread between talking up the recovery too much and not wanting to withdraw fiscal support too early.”
A wider survey-based measure of unemployment based on International Labour Organization counting methods fell by 33,000 to 2.45 million in the three months through January, the biggest drop since the fourth quarter of 2007. The 7.8 percent jobless rate on that basis compares with 9.7 percent in the U.S., 9.9 percent in the euro region and 4.9 percent in Japan.
Minority Government
In January, the number of jobless claims rose by 5,300 instead of the 23,500 increase originally reported. In February, the jobless rate fell to 4.9 percent from 5 percent.
A March 15 YouGov Plc poll for the Sun newspaper put the Conservatives 5 points ahead of Labour with 37 percent support, compared with a lead of 12 points at the start of the year.
Speculation that no party will get an outright majority of the seats in Parliament at the election sent the pound to a 10- month low against the dollar this month. Investors are concerned that a minority administration will find it hard to cut the deficit, which is almost as big as Greece’s at more than 12 percent of economic output. The pound was trading at $1.5309 as of 9:41 a.m. in London.
The Bank of England said this week its agents expect businesses to keep staff numbers stable in the coming months. Britain emerged from its deepest recession since World War II in the fourth quarter with growth of 0.3 percent.
SThree Plc, a U.K. recruiter for information technology companies, may increase staff levels by between 10 percent and 20 percent as orders improve, Chief Executive Officer Russell Clements said this month.
The statistics office said today growth in weekly pay including bonuses quickened to 0.9 percent in the three months through January from 0.7 percent. Regular pay rose 1.4 percent and bonus pay fell declined 7.1 percent.
Thursday, March 11, 2010
Japan’s Economy Grows 3.8%, Less Than First Estimated
March 11 (Bloomberg) -- Japan’s economy expanded less than initially estimated in the fourth quarter as companies pared spending and stockpiles as deflation deepened.
Gross domestic product rose at an annual 3.8 percent pace, slower than the 4.6 percent reported in preliminary figures last month, the Cabinet Office said today in Tokyo. The GDP deflator, a gauge of price trends, fell a record 2.8 percent.
The report suggests business spending remains the weak link of an economic recovery that has begun to spread from exporters to households. Renewed demand in Asia is helping Japanese companies such as Canon Inc. and Honda Motor Co., which may minimize an economic slowdown in the coming months as government stimulus measures fade.
“A rebound in capital investment is key for Japan’s economy to regain momentum,” said Mari Iwashita, chief market economist at Nikko Cordial Securities Inc. in Tokyo. “While declines in investment are coming to a halt, it’s hard to tell when companies will start to beef up spending again.”
The yen traded at 90.46 per dollar at 9:47 a.m. in Tokyo from 90.40 before the report. The Nikkei 225 Stock Average rose 0.7 percent.
The median estimate of 29 economists surveyed by Bloomberg News was for 4 percent growth on an annualized basis. The economy grew 0.9 percent in the fourth quarter from the previous three months, slower than the 1.1 percent first reported.
‘Receded Slightly’
“Concerns about a double-dip recession have receded slightly,” Keisuke Tsumura, a parliamentary secretary at the Cabinet Office, told reporters in Tokyo. “There are budding signs for self-sustained recovery.”
Private inventory shaved 0.1 percentage point from growth, after the initial report showed it added to GDP, the main reason for today’s revision. Automakers may have responded to higher demand by paring stockpiles, Tsumura said. Capital spending rose 0.9 percent in the three months through December from the previous quarter, compared with a 1 percent increase estimated last month.
About a third of factory capacity is sitting idle and falling prices are squeezing profit margins, prompting companies such as Sony Corp. to cut costs to protect their earnings. Sony last month narrowed its forecast for a net loss, saying it is approaching its target of trimming 330 billion yen ($3.7 billion) in costs by eliminating jobs and shutting factories.
Providing Incentives
The government has been providing incentives to buy energy- efficient cars and home appliances. Prime Minister Yukio Hatoyama unveiled a 7.2 trillion yen stimulus package in December. Consumer spending, which makes up about 60 percent of the economy, climbed 0.7 percent, unchanged from the initial report, the government said today.
An increase in household outlays may not last as government stimulus measures fade and a shortfall in demand keeps suppressing prices, said Hiroshi Watanabe, a senior economist at Daiwa Institute of Research in Tokyo. “The stimulus program gives a one-shot boost to the economy, but it won’t substantially increase consumer spending,” he said.
Finance Minister Naoto Kan last week renewed calls for the Bank of Japan to help arrest deflation, saying he hopes prices will rise this year. Bank of Japan Deputy Governor Hirohide Yamaguchi said last month that prices may not be improving as quickly as he had expected.
The drop in the GDP deflator, the broadest measure of prices in the economy, was the largest since comparable data were made available in 1955. The government initially reported a 3 percent decline in the gauge.
‘Worst-Case Scenario’
“The deflator number really is terrible at the moment,” said Richard Jerram, chief economist at Macquarie Securities Ltd. in Tokyo. “The worst-case scenario is that if you never get out of deflation, you’re running an economy with interest rates that are persistently too high, which damages growth and also makes it impossible to stabilize public finances.”
The government’s options to combat falling prices have been limited by its swelling debt burden, the largest in the industrialized world. Kan said yesterday maintaining fiscal discipline is a significant challenge for policy makers. The central bank has kept the benchmark interest rate at 0.1 percent since December 2008.
Still, some companies are benefiting from rebounding demand in Asia, particularly China, the world’s fastest-growing major economy and Japan’s biggest overseas market. Canon, the world’s biggest camera maker, forecasts sales volume will rise 10 percent in China this year, Masaya Maeda, director of the company, said this week. Honda Motor’s sales in China rose 40 percent in February from a year earlier.
Exports increased 5 percent from the previous quarter, unchanged from the preliminary figures. Net exports, or shipments minus imports, added 0.5 percentage point to growth, the same as last month’s reading.
Some reports for January indicate the export revival is filtering to workers. The unemployment rate dropped to a 10- month low of 4.9 percent and wages climbed for the first time in 20 months.
Gross domestic product rose at an annual 3.8 percent pace, slower than the 4.6 percent reported in preliminary figures last month, the Cabinet Office said today in Tokyo. The GDP deflator, a gauge of price trends, fell a record 2.8 percent.
The report suggests business spending remains the weak link of an economic recovery that has begun to spread from exporters to households. Renewed demand in Asia is helping Japanese companies such as Canon Inc. and Honda Motor Co., which may minimize an economic slowdown in the coming months as government stimulus measures fade.
“A rebound in capital investment is key for Japan’s economy to regain momentum,” said Mari Iwashita, chief market economist at Nikko Cordial Securities Inc. in Tokyo. “While declines in investment are coming to a halt, it’s hard to tell when companies will start to beef up spending again.”
The yen traded at 90.46 per dollar at 9:47 a.m. in Tokyo from 90.40 before the report. The Nikkei 225 Stock Average rose 0.7 percent.
The median estimate of 29 economists surveyed by Bloomberg News was for 4 percent growth on an annualized basis. The economy grew 0.9 percent in the fourth quarter from the previous three months, slower than the 1.1 percent first reported.
‘Receded Slightly’
“Concerns about a double-dip recession have receded slightly,” Keisuke Tsumura, a parliamentary secretary at the Cabinet Office, told reporters in Tokyo. “There are budding signs for self-sustained recovery.”
Private inventory shaved 0.1 percentage point from growth, after the initial report showed it added to GDP, the main reason for today’s revision. Automakers may have responded to higher demand by paring stockpiles, Tsumura said. Capital spending rose 0.9 percent in the three months through December from the previous quarter, compared with a 1 percent increase estimated last month.
About a third of factory capacity is sitting idle and falling prices are squeezing profit margins, prompting companies such as Sony Corp. to cut costs to protect their earnings. Sony last month narrowed its forecast for a net loss, saying it is approaching its target of trimming 330 billion yen ($3.7 billion) in costs by eliminating jobs and shutting factories.
Providing Incentives
The government has been providing incentives to buy energy- efficient cars and home appliances. Prime Minister Yukio Hatoyama unveiled a 7.2 trillion yen stimulus package in December. Consumer spending, which makes up about 60 percent of the economy, climbed 0.7 percent, unchanged from the initial report, the government said today.
An increase in household outlays may not last as government stimulus measures fade and a shortfall in demand keeps suppressing prices, said Hiroshi Watanabe, a senior economist at Daiwa Institute of Research in Tokyo. “The stimulus program gives a one-shot boost to the economy, but it won’t substantially increase consumer spending,” he said.
Finance Minister Naoto Kan last week renewed calls for the Bank of Japan to help arrest deflation, saying he hopes prices will rise this year. Bank of Japan Deputy Governor Hirohide Yamaguchi said last month that prices may not be improving as quickly as he had expected.
The drop in the GDP deflator, the broadest measure of prices in the economy, was the largest since comparable data were made available in 1955. The government initially reported a 3 percent decline in the gauge.
‘Worst-Case Scenario’
“The deflator number really is terrible at the moment,” said Richard Jerram, chief economist at Macquarie Securities Ltd. in Tokyo. “The worst-case scenario is that if you never get out of deflation, you’re running an economy with interest rates that are persistently too high, which damages growth and also makes it impossible to stabilize public finances.”
The government’s options to combat falling prices have been limited by its swelling debt burden, the largest in the industrialized world. Kan said yesterday maintaining fiscal discipline is a significant challenge for policy makers. The central bank has kept the benchmark interest rate at 0.1 percent since December 2008.
Still, some companies are benefiting from rebounding demand in Asia, particularly China, the world’s fastest-growing major economy and Japan’s biggest overseas market. Canon, the world’s biggest camera maker, forecasts sales volume will rise 10 percent in China this year, Masaya Maeda, director of the company, said this week. Honda Motor’s sales in China rose 40 percent in February from a year earlier.
Exports increased 5 percent from the previous quarter, unchanged from the preliminary figures. Net exports, or shipments minus imports, added 0.5 percentage point to growth, the same as last month’s reading.
Some reports for January indicate the export revival is filtering to workers. The unemployment rate dropped to a 10- month low of 4.9 percent and wages climbed for the first time in 20 months.
Wednesday, March 10, 2010
India okays Copenhagen Accord, with riders
India and China on Wednesday formally backed the Climate change Accord hammered out in Copenhagen last year calling for voluntary cut in greenhouse gas emissions.
Both the countries submitted official letters to the UN Climate Change Secretariat saying that they agreed to being listed in the preamble of the Accord subject to certain conditions.
"It may be recalled that India actively participated in the discussions on the Copenhagen Accord. India stands by the contents of the Accord," Environment Minister Jairam Ramesh wrote to the UN Climate Chief Yvo de Boer.
"The Accord is only an input into the two-track negotiations. The Accord is not a new track of negotiations or a template for outcomes," he said.
In a one-sentence note, China's chief climate negotiator, Su Wei said, "I am writing to confirm that the Secretariat can proceed to include China in the list of parties included in the chapeau of the Copenhagen Accord."
India has made it clear that the Accord is a political document and not a legally binding one.
"The Accord could have value if the areas of convergence reflected in it are used to help the parties reach agreed outcomes under the UN multilateral negotiations in the two tracks - the Ad-hoc working Group on Long Term Cooperative Action and the Ad-hoc Working Group on Kyoto Protocol," Ramesh wrote.
The agreement calls for limiting warming to two degree Celsius and commits rich countries to provide $100 billion long term finance to developing countries besides $30 billion to the poorest and most vulnerable countries in the next three years to fight climate change.
There is still no clear mechanism for the actual collection and disbursement of this aid but the next round of formal negotiations is scheduled for May in Bonn in Germany.
The next UN climate change conference or 16th Conference of Parties (COP 16) is slated to be held in Mexico later this year.
Both the countries submitted official letters to the UN Climate Change Secretariat saying that they agreed to being listed in the preamble of the Accord subject to certain conditions.
"It may be recalled that India actively participated in the discussions on the Copenhagen Accord. India stands by the contents of the Accord," Environment Minister Jairam Ramesh wrote to the UN Climate Chief Yvo de Boer.
"The Accord is only an input into the two-track negotiations. The Accord is not a new track of negotiations or a template for outcomes," he said.
In a one-sentence note, China's chief climate negotiator, Su Wei said, "I am writing to confirm that the Secretariat can proceed to include China in the list of parties included in the chapeau of the Copenhagen Accord."
India has made it clear that the Accord is a political document and not a legally binding one.
"The Accord could have value if the areas of convergence reflected in it are used to help the parties reach agreed outcomes under the UN multilateral negotiations in the two tracks - the Ad-hoc working Group on Long Term Cooperative Action and the Ad-hoc Working Group on Kyoto Protocol," Ramesh wrote.
The agreement calls for limiting warming to two degree Celsius and commits rich countries to provide $100 billion long term finance to developing countries besides $30 billion to the poorest and most vulnerable countries in the next three years to fight climate change.
There is still no clear mechanism for the actual collection and disbursement of this aid but the next round of formal negotiations is scheduled for May in Bonn in Germany.
The next UN climate change conference or 16th Conference of Parties (COP 16) is slated to be held in Mexico later this year.
Tata Sons buys Daimler's Tata Motors shares worth Rs 300 cr
Tata Motors’ largest promoter, Tata Sons, bought four million shares of the former from Daimler for Rs 300 crore, thus raising its stake in the commercial and passenger vehicle giant by nearly one per cent.
From the limited data released by the Bombay Stock Exchange (BSE), Daimler AG, owner of the luxury brand, Mercedes, and also the world’s largest truck maker, today completed the sale of its entire stake in Tata Motors, India’s biggest automobile company, for Rs 1,924 crore (¤300 million).
The sale of all the 25.59 million shares held by it was done by the German company to ‘various group of investors’ through the BSE, at an average price of Rs 751.67. Tata Motors was consulted by Daimler before the transaction, according to a statement sent by the latter.
Apart from Tata Sons, which bought the shares at Rs 750, Citigroup Global Markets (Mauritius) Private Ltd bought a little over 4.65 million shares for Rs 350 crore.
The senior management at Tata Motors had clarified yesterday that the company promoters did not wish to participate in buying any shares from Daimler. Despite the positive move by the promoters, Tata Motors’ scrip plunged to an intra-day low of Rs 750 per share on the BSE, a fall of 5.86 per cent from the previous day’s close.
The stock closed 3.24 per cent lower as against yesterday’s closing price.
The promoters’ holding in Tata Motors had shrunk to 38.08 per cent prior to today’s buy-out of 0.83 per cent, well below the majority mark of 51 per cent which would help ward off any hostile takeover bids.
The primary idea behind Daimler selling its four-decade stake in Tata Motors was to raise capital and thereby boost its commercial vehicle plans in India, for which a manufacturing facility at Chennai is under development. Both companies are already competing against each other in the area of luxury cars. While Tata Motors imports and sells the Jaguar range of high-end cars, Daimler retails the Mercedes-Benz range of luxury cars, a majority of which are now made in the country.
“Daimler is today in an excellent position to capitalise on the growth potential of the Indian passenger and commercial vehicle markets and continues to intensify its own activities there. An equity participation of Daimler in Tata is no longer necessary. This has been done in full consultation with Tata Motors,” stated a release from Daimler.
Last year, Daimler Trucks founded its own production company, Daimler India Commercial Vehicles, which is building the new plant in Chennai. Starting in 2012, this will initially produce light, medium and heavy-duty commercial vehicles for the Indian market under a new brand name.
The production of trucks for export to other emerging markets will follow at a later date. Daimler launched its (Mitsubishi) Fuso CV in India at the beginning of this year. The first Fuso vehicle was sold in January.
From the limited data released by the Bombay Stock Exchange (BSE), Daimler AG, owner of the luxury brand, Mercedes, and also the world’s largest truck maker, today completed the sale of its entire stake in Tata Motors, India’s biggest automobile company, for Rs 1,924 crore (¤300 million).
The sale of all the 25.59 million shares held by it was done by the German company to ‘various group of investors’ through the BSE, at an average price of Rs 751.67. Tata Motors was consulted by Daimler before the transaction, according to a statement sent by the latter.
Apart from Tata Sons, which bought the shares at Rs 750, Citigroup Global Markets (Mauritius) Private Ltd bought a little over 4.65 million shares for Rs 350 crore.
The senior management at Tata Motors had clarified yesterday that the company promoters did not wish to participate in buying any shares from Daimler. Despite the positive move by the promoters, Tata Motors’ scrip plunged to an intra-day low of Rs 750 per share on the BSE, a fall of 5.86 per cent from the previous day’s close.
The stock closed 3.24 per cent lower as against yesterday’s closing price.
The promoters’ holding in Tata Motors had shrunk to 38.08 per cent prior to today’s buy-out of 0.83 per cent, well below the majority mark of 51 per cent which would help ward off any hostile takeover bids.
The primary idea behind Daimler selling its four-decade stake in Tata Motors was to raise capital and thereby boost its commercial vehicle plans in India, for which a manufacturing facility at Chennai is under development. Both companies are already competing against each other in the area of luxury cars. While Tata Motors imports and sells the Jaguar range of high-end cars, Daimler retails the Mercedes-Benz range of luxury cars, a majority of which are now made in the country.
“Daimler is today in an excellent position to capitalise on the growth potential of the Indian passenger and commercial vehicle markets and continues to intensify its own activities there. An equity participation of Daimler in Tata is no longer necessary. This has been done in full consultation with Tata Motors,” stated a release from Daimler.
Last year, Daimler Trucks founded its own production company, Daimler India Commercial Vehicles, which is building the new plant in Chennai. Starting in 2012, this will initially produce light, medium and heavy-duty commercial vehicles for the Indian market under a new brand name.
The production of trucks for export to other emerging markets will follow at a later date. Daimler launched its (Mitsubishi) Fuso CV in India at the beginning of this year. The first Fuso vehicle was sold in January.
Tuesday, March 09, 2010
एक बोध कथा
जीवन में जब सब कुछ एक साथ और जल्दी - जल्दी करने की इच्छा होती है , सब कुछ तेजी से पा लेने की इच्छा होती है , और हमें लगने लगता है कि दिन के चौबीस घंटे भी कम पड़ते हैं , उस समय ये बोध कथा , " काँच की बरनी और दो कप चाय " हमें याद आती है ।
दर्शनशास्त्र के एक प्रोफ़ेसर कक्षा में आये और उन्होंने छात्रों से कहा कि वे आज जीवन का एक महत्वपूर्ण पाठ पढाने वाले हैं ...
उन्होंने अपने साथ लाई एक काँच की बडी़ बरनी ( जार ) टेबल पर रखा और उसमें टेबल टेनिस की गेंदें डालने लगे और तब तक डालते रहे जब तक कि उसमें एक भी गेंद समाने की जगह नहीं बची ... उन्होंने छात्रों से पूछा - क्या बरनी पूरी भर गई ? हाँ ... आवाज आई ... फ़िर प्रोफ़ेसर साहब ने छोटे - छोटे कंकर उसमें भरने शुरु किये h धीरे - धीरे बरनी को हिलाया तो काफ़ी सारे कंकर उसमें जहाँ जगह खाली थी , समा गये , फ़िर से प्रोफ़ेसर साहब ने पूछा , क्या अब बरनी भर गई है , छात्रों ने एक बार फ़िर हाँ ... कहा अब प्रोफ़ेसर साहब ने रेत की थैली से हौले - हौले उस बरनी में रेत डालना शुरु किया , वह रेत भी उस जार में जहाँ संभव था बैठ गई , अब छात्र अपनी नादानी पर हँसे ... फ़िर प्रोफ़ेसर साहब ने पूछा , क्यों अब तो यह बरनी पूरी भर गई ना ? हाँ .. अब तो पूरी भर गई है .. सभी ने एक स्वर में कहा .. सर ने टेबल के नीचे से चाय के दो कप निकालकर उसमें की चाय जार में डाली , चाय भी रेत के बीच स्थित थोडी़ सी जगह में सोख ली गई ...
प्रोफ़ेसर साहब ने गंभीर आवाज में समझाना शुरु किया –
इस काँच की बरनी को तुम लोग अपना जीवन समझो ....
टेबल टेनिस की गेंदें सबसे महत्वपूर्ण भाग अर्थात भगवान , परिवार , बच्चे , मित्र , स्वास्थ्य और शौक हैं ,
छोटे कंकर मतलब तुम्हारी नौकरी , कार , बडा़ मकान आदि हैं , और
रेत का मतलब और भी छोटी - छोटी बेकार सी बातें , मनमुटाव , झगडे़ है ..
अब यदि तुमने काँच की बरनी में सबसे पहले रेत भरी होती तो टेबल टेनिस की गेंदों और कंकरों के लिये जगह ही नहीं बचती , या कंकर भर दिये होते तो गेंदें नहीं भर पाते , रेत जरूर आ सकती थी ...
ठीक यही बात जीवन पर लागू होती है ... यदि तुम छोटी - छोटी बातों के पीछे पडे़ रहोगे और अपनी ऊर्जा उसमें नष्ट करोगे तो तुम्हारे पास मुख्य बातों के लिये अधिक समय नहीं रहेगा ... मन के सुख के लिये क्या जरूरी है ये तुम्हें तय करना है । अपने बच्चों के साथ खेलो , बगीचे में पानी डालो , सुबह पत्नी के साथ घूमने निकल जाओ , घर के बेकार सामान को बाहर निकाल फ़ेंको , मेडिकल चेक - अप करवाओ ... टेबल टेनिस गेंदों की फ़िक्र पहले करो , वही महत्वपूर्ण है ...... पहले तय करो कि क्या जरूरी है ... बाकी सब तो रेत है ..
छात्र बडे़ ध्यान से सुन रहे थे .. अचानक एक ने पूछा , सर लेकिन आपने यह नहीं बताया कि " चाय के दो कप " क्या हैं ? प्रोफ़ेसर मुस्कुराये , बोले .. मैं सोच ही रहा था कि अभी तक ये सवाल किसी ने क्यों नहीं किया ...
इसका उत्तर यह है कि , जीवन हमें कितना ही परिपूर्ण और संतुष्ट लगे , लेकिन अपने खास मित्र के साथ दो कप चाय पीने की जगह हमेशा होनी चाहिये ।
( अपने खास मित्रों और निकट के व्यक्तियों को यह विचार तत्काल बाँट दो .... मैंने अभी - अभी यही किया है )
आपका मित्र Vinod Rai !!
दर्शनशास्त्र के एक प्रोफ़ेसर कक्षा में आये और उन्होंने छात्रों से कहा कि वे आज जीवन का एक महत्वपूर्ण पाठ पढाने वाले हैं ...
उन्होंने अपने साथ लाई एक काँच की बडी़ बरनी ( जार ) टेबल पर रखा और उसमें टेबल टेनिस की गेंदें डालने लगे और तब तक डालते रहे जब तक कि उसमें एक भी गेंद समाने की जगह नहीं बची ... उन्होंने छात्रों से पूछा - क्या बरनी पूरी भर गई ? हाँ ... आवाज आई ... फ़िर प्रोफ़ेसर साहब ने छोटे - छोटे कंकर उसमें भरने शुरु किये h धीरे - धीरे बरनी को हिलाया तो काफ़ी सारे कंकर उसमें जहाँ जगह खाली थी , समा गये , फ़िर से प्रोफ़ेसर साहब ने पूछा , क्या अब बरनी भर गई है , छात्रों ने एक बार फ़िर हाँ ... कहा अब प्रोफ़ेसर साहब ने रेत की थैली से हौले - हौले उस बरनी में रेत डालना शुरु किया , वह रेत भी उस जार में जहाँ संभव था बैठ गई , अब छात्र अपनी नादानी पर हँसे ... फ़िर प्रोफ़ेसर साहब ने पूछा , क्यों अब तो यह बरनी पूरी भर गई ना ? हाँ .. अब तो पूरी भर गई है .. सभी ने एक स्वर में कहा .. सर ने टेबल के नीचे से चाय के दो कप निकालकर उसमें की चाय जार में डाली , चाय भी रेत के बीच स्थित थोडी़ सी जगह में सोख ली गई ...
प्रोफ़ेसर साहब ने गंभीर आवाज में समझाना शुरु किया –
इस काँच की बरनी को तुम लोग अपना जीवन समझो ....
टेबल टेनिस की गेंदें सबसे महत्वपूर्ण भाग अर्थात भगवान , परिवार , बच्चे , मित्र , स्वास्थ्य और शौक हैं ,
छोटे कंकर मतलब तुम्हारी नौकरी , कार , बडा़ मकान आदि हैं , और
रेत का मतलब और भी छोटी - छोटी बेकार सी बातें , मनमुटाव , झगडे़ है ..
अब यदि तुमने काँच की बरनी में सबसे पहले रेत भरी होती तो टेबल टेनिस की गेंदों और कंकरों के लिये जगह ही नहीं बचती , या कंकर भर दिये होते तो गेंदें नहीं भर पाते , रेत जरूर आ सकती थी ...
ठीक यही बात जीवन पर लागू होती है ... यदि तुम छोटी - छोटी बातों के पीछे पडे़ रहोगे और अपनी ऊर्जा उसमें नष्ट करोगे तो तुम्हारे पास मुख्य बातों के लिये अधिक समय नहीं रहेगा ... मन के सुख के लिये क्या जरूरी है ये तुम्हें तय करना है । अपने बच्चों के साथ खेलो , बगीचे में पानी डालो , सुबह पत्नी के साथ घूमने निकल जाओ , घर के बेकार सामान को बाहर निकाल फ़ेंको , मेडिकल चेक - अप करवाओ ... टेबल टेनिस गेंदों की फ़िक्र पहले करो , वही महत्वपूर्ण है ...... पहले तय करो कि क्या जरूरी है ... बाकी सब तो रेत है ..
छात्र बडे़ ध्यान से सुन रहे थे .. अचानक एक ने पूछा , सर लेकिन आपने यह नहीं बताया कि " चाय के दो कप " क्या हैं ? प्रोफ़ेसर मुस्कुराये , बोले .. मैं सोच ही रहा था कि अभी तक ये सवाल किसी ने क्यों नहीं किया ...
इसका उत्तर यह है कि , जीवन हमें कितना ही परिपूर्ण और संतुष्ट लगे , लेकिन अपने खास मित्र के साथ दो कप चाय पीने की जगह हमेशा होनी चाहिये ।
( अपने खास मित्रों और निकट के व्यक्तियों को यह विचार तत्काल बाँट दो .... मैंने अभी - अभी यही किया है )
आपका मित्र Vinod Rai !!
Monday, March 08, 2010
Oscars 2010: full list of Academy Award winners
The independent Iraq war drama "The Hurt Locker" has emerged as the big winner at the 82nd Academy Awards ceremony. Following is a complete list of Oscar winners:
BEST PICTURE
"The Hurt Locker" (Summit Entertainment)
BEST ACTOR
Jeff Bridges for "Crazy Heart" (Fox Searchlight)
BEST ACTRESS
Sandra Bullock in "The Blind Side" (Warner Bros.)
DIRECTOR
Kathryn Bigelow for "The Hurt Locker" (Summit Entertainment)
FOREIGN LANGUAGE FILM
"The Secret in Their Eyes" (El Secreto de Sus Ojos) - Argentina (Sony Pictures Classics)
SUPPORTING ACTOR
Christoph Waltz for "Inglourious Basterds" (The Weinstein Company)
SUPPORTING ACTRESS
Mo'Nique for "Precious: Based on the Novel 'Push' by Sapphire" (Lionsgate)
ORIGINAL SCREENPLAY
Mark Boal for "The Hurt Locker" (Summit Entertainment)
ADAPTED SCREENPLAY
Geoffrey Fletcher for "Precious: Based on the Novel 'Push' by Sapphire" (Lionsgate)
ANIMATED FEATURE
"Up" by Pete Docter (Disney/Pixar)
ANIMATED SHORT FILM
"Logorama" by Nicolas Schmerkin (Autour de Minuit)
ART DIRECTION
Rick Carter and Robert Stromberg for art direction and Kim Sinclair for set decoration on "Avatar" (20th Century Fox)
COSTUME DESIGN
Sandy Powell for "The Young Victoria" (Apparition)
MAKEUP
Barney Burman, Mindy Hall and Joel Harlow for "Star Trek" (Paramount and Spyglass Entertainment)
CINEMATOGRAPHY
Mauro Fiore for "Avatar" (20th Century Fox)
LIVE ACTION SHORT FILM
"The New Tenants" by Joachim Back and Tivi Magnusson (A Park Pictures and M & M Production)
DOCUMENTARY FEATURE
"The Cove" by Louie Psihoyos and Fisher Stevens for (Roadside Attractions)
DOCUMENTARY SHORT
"Music by Prudence" by Roger Ross Williams and Elinor Burkett (iThemba Production)
VISUAL EFFECTS
Joe Letteri, Stephen Rosenbaum, Richard Baneham and Andrew R. Jones for "Avatar" (20th Century Fox)
SOUND EDITING
Paul N.J. Ottosson for "The Hurt Locker" (Summit Entertainment)
SOUND MIXING
Paul N.J. Ottosson and Ray Beckett for "The Hurt Locker" (Summit Entertainment)
FILM EDITING
Bob Murawski and Chris Innis for "The Hurt Locker" (Summit Entertainment)
ORIGINAL SCORE
Michael Giacchino for "Up" (Disney/Pixar)
ORIGINAL SONG
"The Weary Kind" from "Crazy Heart" (Fox Searchlight), music and lyrics by Ryan Bingham and T Bone Burnett
International Women's डे
Every year, 8 March is celebrated around the world as International Women's Day. We have planned a program of information and fun for your classroom to celebrate International Women's Day with a focus on women, peace and politics. Have a great learning experience!
Why dedicate a day exclusively to the celebration of the world's women?
The United Nations General Assembly, composed of delegates from every Member State, celebrates International Women's Day to recognize that peace and social progress require the active participation and equality of women, and to acknowledge the contribution of women to international peace and security.
For the women of the world, the Day is an occasion to review how far they have come in their struggle for equality, peace and development.
You might think that women's equality benefits mostly women, but every one-percentile growth in female secondary schooling results in a 0.3 percent growth in the economy. Yet girls are often kept from receiving education in the poorest countries that would best benefit from the economic growth.
Until the men and women work together to secure the rights and full potential of women, lasting solutions to the world's most serious social, economic and political problems are unlikely to be found.
In recent decades, much progress has been made. On a worldwide level, women's access to education and proper health care has increased; their participation in the paid labor force has grown; and legislation that promises equal opportunities for women and respect for their human rights has been adopted in many countries. The world now has an ever- growing number of women participating in society as policy-makers.
However, nowhere in the world can women claim to have all the same rights and opportunities as men.
The majority of the world's 1.3 billion absolute poor are women.
On average, women receive between 30 and 40 per cent less pay than men earn for the same work.
And everywhere, women continue to be victims of violence, with rape and domestic violence listed as significant causes of disability and death among women of reproductive age worldwide.
How It Happened
A Brief History of International Women's Day
The idea of an International Women's Day first arose at the turn of the century, which in the industrialized world was a period of expansion and turbulence, booming population growth and radical ideologies.
On 8 March 1857, women working in clothing and textile factories (called 'garment workers') in New York City, in the United States, staged a protest. They were fighting against inhumane working conditions and low wages. The police attacked the protestors and dispersed them. Two years later, again in March, these women formed their first labour union to try and protect themselves and gain some basic rights in the workplace.
On 8 March 1908, 15,000 women marched through New York City demanding shorter work hours, better pay, voting rights and an end to child labour. They adopted the slogan "Bread and Roses", with bread symbolizing economic security and roses a better quality of life. In May, the Socialist Party of America designated the last Sunday in February for the observance of National Women's Day.
Following the declaration of the Socialist Party of America, the first ever National Woman's Day was celebrated in the United States on 28 February 1909. Women continued to celebrate it on the last Sunday of that month through 1913.
An international conference, held by socialist organizations from around the world, met in Copenhagen, Denmark, in 1910. The conference of the Socialist International proposed a Women's Day which was designed to be international in character. The proposal initially came from Clara Zetkin, a German socialist, who suggested an International Day to mark the strike of garment workers in the United States. The proposal was greeted with unanimous approval by the conference of over 100 women from 17 countries, including the first three women elected to the parliament of Finland. The Day was established to honour the movement for women's rights, including the right to vote (known as 'suffrage'). At that time no fixed date was selected for the observance.
The declaration of the Socialist International had an impact. The following year, 1911, International Women's Day was marked for the first time in Austria, Denmark, Germany and Switzerland. The date was March 19 and over a million men and women took to the streets in a series of rallies. In addition to the right to vote and to hold public office, they demanded the right to work and an end to discrimination on the job.
Less than a week later, on 25 March, the tragic Triangle Fire in New York City took place. Over 140 workers, mostly young Italian and Jewish immigrant girls working at the Triangle Shirtwaist Company, lost their lives because of the lack of safety measures. The Women's Trade Union League and the International Ladies' Garment Workers Union led many of the protests against this avoidable tragedy, including the silent funeral march which brought together a crowd of over 100,000 people. The Triangle Fire had a significant impact on labour legislation and the horrible working conditions leading up to the disaster were invoked during subsequent observances of International Women's Day.
As part of the peace movement brewing on the eve of World War I, Russian women observed their first International Women's Day on the last Sunday in February 1913. Elsewhere in Europe, on or around 8 March of the following year, women held rallies either to protest the war or to express solidarity with their sisters.
With 2 million Russian soldiers dead in the war, Russian women again chose the last Sunday in February 1917 to strike for "bread and peace". Political leaders opposed the timing of the strike, but the women went on anyway.
The rest is history: Four days later the Czar of Russia was forced to abdicate and the provisional Government granted women the right to vote. That historic Sunday fell on 23 February on the Julian calendar then in use in Russia, but coincided with 8 March on the Gregorian calendar used by people elsewhere.
Since those early years, International Women's Day has assumed a new global dimension for women in developed and developing countries alike.
In December 1977 the UN General Assembly adopted a resolution proclaiming a United Nations Day for Women's Rights and International Peace. Four global United Nations women's conferences have helped make the demand for women's rights and participation in the political and economic process a growing reality.
In 1975 the UN drew global attention to women's concerns by calling for an International Women's year and convening the first conference on women in Mexico City. Another convention was held in Copenhagen, Denmark in 1980.
In 1985, the UN convened a third conference on women in Nairobi, Kenya, to look at what had been achieved at the end of the decade.
In 1995, Beijing hosted the Fourth World Conference on Women. Representatives from 189 different countries agreed that inequalities between women and men has serious consequences for the well-being of all people. The conference declared a set of goals for progress of women in various areas including politics, health, and education. The final document issued by the conference (called the "Platform for Action") had this to say: "The advancement of women and the achievement of equality between women and men are a matter of human rights and a condition for social justice and should not be seen in isolation as a women's issue."
Five years later, in a 23rd special session of the United Nations General Assembly, "Women 2000: Gender Equality, Development and Peace for the 21st Century" reviewed the progress the world has made towards achieving the goals set out by the Beijing conference. This conference has come to be known as the "Beijing +5" conference. Delegates found both progress and perservering obstacles. The delegates made further agreements to continue carrying out the initiatives of the 1995 women's conference.
The Vocabulary of Inequality
To discriminate is to treat people unequally or unfairly because of some reason which they cannot help, or which is not relevant to the matter in hand. For instance, to pay two people differently for doing the same job simply because one is a woman, or black, or a Muslim, or speaks with a different accent. There are other sorts of unfair discrimination - because of your religion, disability, age, because you speak a different language, or because of your political opinions.
Discrimination because of race or skin color or where ancestry originates is called racism.
Discrimination because you are male or female (your gender) is called sexism.
Discrimination often happens because people make decisions about other people which are not based on genuine reasons, ie they are prejudiced. Usually they think the other person is automatically inferior because of their race, religion or gender etc. Stereotyping is to assume that all people from a certain group or societal segment possess the same characteristics. If you hear someone say, "All (group X people) are lazy" (or noisy, or untrustworthy), that's a stereotype.
The aim of the United Nations is to help all people, individually and as groups, to be valued equally and treated fairly. The UN has produced many declarations and conventions which set people's rights .
Article 1.3 of the UN Charter provides ". . . fundamental freedoms for all without distinction as to race, sex, language or religion".
All of the countries which are UN members must let their citizens know these rights and how to obtain them. Knowing your rights is one step towards overcoming discrimination.
Why dedicate a day exclusively to the celebration of the world's women?
The United Nations General Assembly, composed of delegates from every Member State, celebrates International Women's Day to recognize that peace and social progress require the active participation and equality of women, and to acknowledge the contribution of women to international peace and security.
For the women of the world, the Day is an occasion to review how far they have come in their struggle for equality, peace and development.
You might think that women's equality benefits mostly women, but every one-percentile growth in female secondary schooling results in a 0.3 percent growth in the economy. Yet girls are often kept from receiving education in the poorest countries that would best benefit from the economic growth.
Until the men and women work together to secure the rights and full potential of women, lasting solutions to the world's most serious social, economic and political problems are unlikely to be found.
In recent decades, much progress has been made. On a worldwide level, women's access to education and proper health care has increased; their participation in the paid labor force has grown; and legislation that promises equal opportunities for women and respect for their human rights has been adopted in many countries. The world now has an ever- growing number of women participating in society as policy-makers.
However, nowhere in the world can women claim to have all the same rights and opportunities as men.
The majority of the world's 1.3 billion absolute poor are women.
On average, women receive between 30 and 40 per cent less pay than men earn for the same work.
And everywhere, women continue to be victims of violence, with rape and domestic violence listed as significant causes of disability and death among women of reproductive age worldwide.
How It Happened
A Brief History of International Women's Day
The idea of an International Women's Day first arose at the turn of the century, which in the industrialized world was a period of expansion and turbulence, booming population growth and radical ideologies.
On 8 March 1857, women working in clothing and textile factories (called 'garment workers') in New York City, in the United States, staged a protest. They were fighting against inhumane working conditions and low wages. The police attacked the protestors and dispersed them. Two years later, again in March, these women formed their first labour union to try and protect themselves and gain some basic rights in the workplace.
On 8 March 1908, 15,000 women marched through New York City demanding shorter work hours, better pay, voting rights and an end to child labour. They adopted the slogan "Bread and Roses", with bread symbolizing economic security and roses a better quality of life. In May, the Socialist Party of America designated the last Sunday in February for the observance of National Women's Day.
Following the declaration of the Socialist Party of America, the first ever National Woman's Day was celebrated in the United States on 28 February 1909. Women continued to celebrate it on the last Sunday of that month through 1913.
An international conference, held by socialist organizations from around the world, met in Copenhagen, Denmark, in 1910. The conference of the Socialist International proposed a Women's Day which was designed to be international in character. The proposal initially came from Clara Zetkin, a German socialist, who suggested an International Day to mark the strike of garment workers in the United States. The proposal was greeted with unanimous approval by the conference of over 100 women from 17 countries, including the first three women elected to the parliament of Finland. The Day was established to honour the movement for women's rights, including the right to vote (known as 'suffrage'). At that time no fixed date was selected for the observance.
The declaration of the Socialist International had an impact. The following year, 1911, International Women's Day was marked for the first time in Austria, Denmark, Germany and Switzerland. The date was March 19 and over a million men and women took to the streets in a series of rallies. In addition to the right to vote and to hold public office, they demanded the right to work and an end to discrimination on the job.
Less than a week later, on 25 March, the tragic Triangle Fire in New York City took place. Over 140 workers, mostly young Italian and Jewish immigrant girls working at the Triangle Shirtwaist Company, lost their lives because of the lack of safety measures. The Women's Trade Union League and the International Ladies' Garment Workers Union led many of the protests against this avoidable tragedy, including the silent funeral march which brought together a crowd of over 100,000 people. The Triangle Fire had a significant impact on labour legislation and the horrible working conditions leading up to the disaster were invoked during subsequent observances of International Women's Day.
As part of the peace movement brewing on the eve of World War I, Russian women observed their first International Women's Day on the last Sunday in February 1913. Elsewhere in Europe, on or around 8 March of the following year, women held rallies either to protest the war or to express solidarity with their sisters.
With 2 million Russian soldiers dead in the war, Russian women again chose the last Sunday in February 1917 to strike for "bread and peace". Political leaders opposed the timing of the strike, but the women went on anyway.
The rest is history: Four days later the Czar of Russia was forced to abdicate and the provisional Government granted women the right to vote. That historic Sunday fell on 23 February on the Julian calendar then in use in Russia, but coincided with 8 March on the Gregorian calendar used by people elsewhere.
Since those early years, International Women's Day has assumed a new global dimension for women in developed and developing countries alike.
In December 1977 the UN General Assembly adopted a resolution proclaiming a United Nations Day for Women's Rights and International Peace. Four global United Nations women's conferences have helped make the demand for women's rights and participation in the political and economic process a growing reality.
In 1975 the UN drew global attention to women's concerns by calling for an International Women's year and convening the first conference on women in Mexico City. Another convention was held in Copenhagen, Denmark in 1980.
In 1985, the UN convened a third conference on women in Nairobi, Kenya, to look at what had been achieved at the end of the decade.
In 1995, Beijing hosted the Fourth World Conference on Women. Representatives from 189 different countries agreed that inequalities between women and men has serious consequences for the well-being of all people. The conference declared a set of goals for progress of women in various areas including politics, health, and education. The final document issued by the conference (called the "Platform for Action") had this to say: "The advancement of women and the achievement of equality between women and men are a matter of human rights and a condition for social justice and should not be seen in isolation as a women's issue."
Five years later, in a 23rd special session of the United Nations General Assembly, "Women 2000: Gender Equality, Development and Peace for the 21st Century" reviewed the progress the world has made towards achieving the goals set out by the Beijing conference. This conference has come to be known as the "Beijing +5" conference. Delegates found both progress and perservering obstacles. The delegates made further agreements to continue carrying out the initiatives of the 1995 women's conference.
The Vocabulary of Inequality
To discriminate is to treat people unequally or unfairly because of some reason which they cannot help, or which is not relevant to the matter in hand. For instance, to pay two people differently for doing the same job simply because one is a woman, or black, or a Muslim, or speaks with a different accent. There are other sorts of unfair discrimination - because of your religion, disability, age, because you speak a different language, or because of your political opinions.
Discrimination because of race or skin color or where ancestry originates is called racism.
Discrimination because you are male or female (your gender) is called sexism.
Discrimination often happens because people make decisions about other people which are not based on genuine reasons, ie they are prejudiced. Usually they think the other person is automatically inferior because of their race, religion or gender etc. Stereotyping is to assume that all people from a certain group or societal segment possess the same characteristics. If you hear someone say, "All (group X people) are lazy" (or noisy, or untrustworthy), that's a stereotype.
The aim of the United Nations is to help all people, individually and as groups, to be valued equally and treated fairly. The UN has produced many declarations and conventions which set people's rights .
Article 1.3 of the UN Charter provides ". . . fundamental freedoms for all without distinction as to race, sex, language or religion".
All of the countries which are UN members must let their citizens know these rights and how to obtain them. Knowing your rights is one step towards overcoming discrimination.
Friday, March 05, 2010
Quotes on MANAGEMENT
"If you pick the right people and give them the opportunity to spread their wings—and put compensation as a carrier behind it—you almost don't have to manage them."
"Make your top managers rich and they will make you rich."
"Withhold not good from them to whom it is due, when it is in the power of thine hand to do it."
"Catch someone doing something right."
"Never try to teach a pig to sing; it wastes your time and it annoys the pig."
"Surround yourself with the best people you can find, delegate authority, and don't interfere as long as the policy you've decided upon is being carried out."
"Always recognize that human individuals are ends, and do not use them as means to your end."
"Management by objectives works if you first think through your objectives. Ninety percent of the time you haven't."
"Don't equate activity with efficiency. You are paying your key people to see the big picture. Don't let them get bogged down in a lot of meaningless meetings and paper shuffling. Announce a Friday afternoon off once in a while. Cancel a Monday morning meeting or two. Tell the cast of characters you'd like them to spend the amount of time normally spent preparing for attending the meeting at their desks, simply thinking about an original idea."
"Because a thing seems difficult for you, do not think it impossible for anyone to accomplish."
"We cling to hierarchies because our place in a hierarchy is, rightly or wrongly, a major indicator of our social worth."
"Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall."
"Hire people who are better than you are, then leave them to get on with it . . . ; Look for people who will aim for the remarkable, who will not settle for the routine."
"When hiring key employees, there are only two qualities to look for: judgement and taste. Almost everything else can be bought by the yard."
"The secret of managing is to keep the guys who hate you away from the guys who are undecided."
"A desk is a dangerous place from which to view the world."
"Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them."
"I believe the real difference between success and failure in a corporation can be very often traced to the question of how well the organization brings out the great energies and talents of its people."
"Focus on a few key objectives ... I only have three things to do. I have to choose the right people, allocate the right number of dollars, and transmit ideas from one division to another with the speed of light. So I'm really in the business of being the gatekeeper and the transmitter of ideas."
"So much of what we call management consists in making it difficult for people to work."
"Management is, above all, a practice where art, science, and craft meet."
"If you are the master be sometimes blind, if you are the servant be sometimes deaf."
"The conventional definition of management is getting work done through people, but real management is developing people through work."
"Make your top managers rich and they will make you rich."
"Withhold not good from them to whom it is due, when it is in the power of thine hand to do it."
"Catch someone doing something right."
"Never try to teach a pig to sing; it wastes your time and it annoys the pig."
"Surround yourself with the best people you can find, delegate authority, and don't interfere as long as the policy you've decided upon is being carried out."
"Always recognize that human individuals are ends, and do not use them as means to your end."
"Management by objectives works if you first think through your objectives. Ninety percent of the time you haven't."
"Don't equate activity with efficiency. You are paying your key people to see the big picture. Don't let them get bogged down in a lot of meaningless meetings and paper shuffling. Announce a Friday afternoon off once in a while. Cancel a Monday morning meeting or two. Tell the cast of characters you'd like them to spend the amount of time normally spent preparing for attending the meeting at their desks, simply thinking about an original idea."
"Because a thing seems difficult for you, do not think it impossible for anyone to accomplish."
"We cling to hierarchies because our place in a hierarchy is, rightly or wrongly, a major indicator of our social worth."
"Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall."
"Hire people who are better than you are, then leave them to get on with it . . . ; Look for people who will aim for the remarkable, who will not settle for the routine."
"When hiring key employees, there are only two qualities to look for: judgement and taste. Almost everything else can be bought by the yard."
"The secret of managing is to keep the guys who hate you away from the guys who are undecided."
"A desk is a dangerous place from which to view the world."
"Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them."
"I believe the real difference between success and failure in a corporation can be very often traced to the question of how well the organization brings out the great energies and talents of its people."
"Focus on a few key objectives ... I only have three things to do. I have to choose the right people, allocate the right number of dollars, and transmit ideas from one division to another with the speed of light. So I'm really in the business of being the gatekeeper and the transmitter of ideas."
"So much of what we call management consists in making it difficult for people to work."
"Management is, above all, a practice where art, science, and craft meet."
"If you are the master be sometimes blind, if you are the servant be sometimes deaf."
"The conventional definition of management is getting work done through people, but real management is developing people through work."
Thursday, March 04, 2010
Steel firms up on excise hike in budget
NEW DELHI: Steel prices have increased by 2-3% after hike in central excise duty in the budget. While the net impact of excise duty hike, from 8% to
10%, comes to around Rs 600 per tonne, a few producers have also factored in hike in input cost and raised prices by up to Rs 1,000 per tonne.
With the increase, the benchmark hot rolled coil (the most produced steel item that is used by a cross-section of the industry) prices have firmed up to a level of Rs 34,000-Rs 36,000 per tonne, depending on the grade.
“There is a price increase of about Rs 500 to Rs 600 a tonne due to the excise duty hike. The price increase is effective from March 1,” SAIL chairman S K Roongta said on sidelines of function here.
Private sector steel companies Essar Steel and JSW have also raised prices between Rs 500-800 per tonne. Tata Steel has moderately increased prices of select steel products while sparing galvanised corrugated sheets from any hike to give relief to consumers in the rural market, a spokesperson for the company said.
An Ispat Industries spokesperson said the steel prices have increased as raw material prices have also increased in the past few weeks. “We have increased steel prices between Rs 500 and Rs 1,000 per tonne from this month,” the spokesperson said.
The move has also created ground for increase in prices by user industries or secondary steel producers that source bulk of their products from large integrated primary steel producers. “The hike will definitely impact cold rolled coil producers who will have no option but to pass the increase to consumers,” said an official of cold rolled manufacturers association. Cold rolled coils is primarily used by FMCG companies and automobile sector.
The government, however, feels that the increase in prices will not adversely impact the user industries and not result in higher inflation. “If we see steel prices in the last 30 months, the current scenario is not alarming,” steel secretary Atul Chaturvedi said. “You have to distinguish between inflation and recession. Companies have to earn money and this could be done only if either raw material prices go down or their steel prices go up,” he added.
Steel prices have remained firm in most part of fiscal 2009-10, rising almost 40% from close to Rs 25,000 a tonne at the beginning of the year to nearly Rs 35,000 a tonne now. The prices have moved up between Rs 500 and Rs 1,000 per month in most part of the fiscal, with some price reduction in select product categories in November and December.
10%, comes to around Rs 600 per tonne, a few producers have also factored in hike in input cost and raised prices by up to Rs 1,000 per tonne.
With the increase, the benchmark hot rolled coil (the most produced steel item that is used by a cross-section of the industry) prices have firmed up to a level of Rs 34,000-Rs 36,000 per tonne, depending on the grade.
“There is a price increase of about Rs 500 to Rs 600 a tonne due to the excise duty hike. The price increase is effective from March 1,” SAIL chairman S K Roongta said on sidelines of function here.
Private sector steel companies Essar Steel and JSW have also raised prices between Rs 500-800 per tonne. Tata Steel has moderately increased prices of select steel products while sparing galvanised corrugated sheets from any hike to give relief to consumers in the rural market, a spokesperson for the company said.
An Ispat Industries spokesperson said the steel prices have increased as raw material prices have also increased in the past few weeks. “We have increased steel prices between Rs 500 and Rs 1,000 per tonne from this month,” the spokesperson said.
The move has also created ground for increase in prices by user industries or secondary steel producers that source bulk of their products from large integrated primary steel producers. “The hike will definitely impact cold rolled coil producers who will have no option but to pass the increase to consumers,” said an official of cold rolled manufacturers association. Cold rolled coils is primarily used by FMCG companies and automobile sector.
The government, however, feels that the increase in prices will not adversely impact the user industries and not result in higher inflation. “If we see steel prices in the last 30 months, the current scenario is not alarming,” steel secretary Atul Chaturvedi said. “You have to distinguish between inflation and recession. Companies have to earn money and this could be done only if either raw material prices go down or their steel prices go up,” he added.
Steel prices have remained firm in most part of fiscal 2009-10, rising almost 40% from close to Rs 25,000 a tonne at the beginning of the year to nearly Rs 35,000 a tonne now. The prices have moved up between Rs 500 and Rs 1,000 per month in most part of the fiscal, with some price reduction in select product categories in November and December.
Wednesday, March 03, 2010
Govt Offers NPS Gift
The expansion of tax slabs and the new infrastructure tax break offered in the Budget are some of the most beneficial steps from a savings perspective.
But one of the more interesting moves made by the Budget is the attempt to jumpstart the New Pension System (NPS). The NPS is the best way for small savers to build up some financial security for retirement. However, the scheme has proven difficult to market. In the absence of commission-earning agents, there’s no one to sell the NPS. Now, the finance minister has unveiled a truly innovative way of attracting lower-income
unorganized workers into the NPS. Instead of spending money on something like an ad campaign that will not reach the intended audience, the government has decided to give what amounts to a joining gift to this category of potential savers.
In what must be a first of its kind step, the government will basically give a gift of Rs 1,000 per year for three years to a certain category of NPS members. This scheme is open only to those who deposit less than Rs 12,000 per year and start their account in 2010-11. This is a brilliant instance of paying direct subsidy in a way that is designed to encourage people to save. Since this is a pension system, the money is not available till it’s usable as a pension on attaining retirement age. For a young person, this Rs 3,000 welcoming gift from the NPS would grow manifold till the time retirement comes. This scheme could well be the impetus that the NPS needs to do its job.
According to the finance minister’s Budget speech, this scheme is expected to pull in 10 lakh members into the NPS. That’s an expense of Rs 100 crore a year. If it creates a viral, word of mouth buzz about the NPS, then that would be money well-spent.
Of course, even with this joining bonus, NPS membership will still need some sort of a pull. Of course, it may still turn out that the only people who will join the NPS voluntarily will be those who are part of this scheme. It really may not be possible to get people into a financial scheme without either intense marketing or a mandatory framework. My hunch is that the NPS story is just beginning and this scheme will be one of the many things that will be tried before a satisfactory solution emerges.
But one of the more interesting moves made by the Budget is the attempt to jumpstart the New Pension System (NPS). The NPS is the best way for small savers to build up some financial security for retirement. However, the scheme has proven difficult to market. In the absence of commission-earning agents, there’s no one to sell the NPS. Now, the finance minister has unveiled a truly innovative way of attracting lower-income
unorganized workers into the NPS. Instead of spending money on something like an ad campaign that will not reach the intended audience, the government has decided to give what amounts to a joining gift to this category of potential savers.
In what must be a first of its kind step, the government will basically give a gift of Rs 1,000 per year for three years to a certain category of NPS members. This scheme is open only to those who deposit less than Rs 12,000 per year and start their account in 2010-11. This is a brilliant instance of paying direct subsidy in a way that is designed to encourage people to save. Since this is a pension system, the money is not available till it’s usable as a pension on attaining retirement age. For a young person, this Rs 3,000 welcoming gift from the NPS would grow manifold till the time retirement comes. This scheme could well be the impetus that the NPS needs to do its job.
According to the finance minister’s Budget speech, this scheme is expected to pull in 10 lakh members into the NPS. That’s an expense of Rs 100 crore a year. If it creates a viral, word of mouth buzz about the NPS, then that would be money well-spent.
Of course, even with this joining bonus, NPS membership will still need some sort of a pull. Of course, it may still turn out that the only people who will join the NPS voluntarily will be those who are part of this scheme. It really may not be possible to get people into a financial scheme without either intense marketing or a mandatory framework. My hunch is that the NPS story is just beginning and this scheme will be one of the many things that will be tried before a satisfactory solution emerges.
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