‘Market-determined 3G auction soon’

NEW DELHI: PM Manmohan Singh on Friday said that 3G telephony spectrum would be auctioned soon, thus ending the uncertainty generated by reported differences between ministries of telecom and defence on vacation of airwaves.

"I am happy that auction of spectrum for 3G and broadband wireless services will be conducted shortly. In a reform initiative, the government has decided that this spectrum will be allocated at market-determined prices rather than administered one," he said at a telecom conference here.

There were reports that auction of 3G spectrum (air waves) could be delayed beyond scheduled January 14, 2010 and FM Pranab Mukherjee was entrusted with the responsibility of resolving inter-ministerial dispute. The Empowered Group of Ministers, headed by Mukherjee, had late last month cleared over Rs 10,000-crore package for building alternate network for the defence force to get spectrum vacated for commercial use and the same was to go to Cabinet for clearance.

Singh also predicted that India, which already has nearly 488 million mobile users and adds about 15-16 million users a month, could witness robust growth in the sector given the fact that the economic downturn is showing signs of moderation. Meanwhile, communications minister Andimuthu Raja said that the auction of high-speed third-generation wireless frequencies could be completed by March 2010.

PM also assured that all the 2,50,000 Gram Panchayats in the country will be provided high speed broadband connectivity by 2012 to remove asymmetry of information and opportunities to the rural population.

POSTED BY:

PALLAVI SINGH

PGDM III SEM, 'B'

Ben Kingsley will paly 'Teen Patti' with Amitabh Bachchan

British actor Sir Ben Kinsley is busy in two projects from India. He is going to play two very important roles in two different flicks with film industry's top faces like Aishwarya Rai Bachchan and the actor of the millennium Amitabh Bachchan.Kingsley is playing the role of emperor Shahjahan in the flick 'Taj' with Aishwarya Rai Bachchan where the damsel is playing the role of Shahjahan's beloved wife Mumtajmahal for whom The Tajmahal- symbol of love was made. But before this flick 'Taj', the actor will be seen sharing screen with Big B in the flick 'Teen Patti'.Being talking about the film, Kingsley revealed his agent in Los Angeles that Indian producers had sent him a script and all his scenes were to be shot in a single schedule in England.Kingsley has also revealed that he immediately agreed to be a part of the project when he was informed that he will be working with Bollywood great actor Amitabh Bachchan."I play a mathematician who blesses Venkat's (Amitabh Bachchan) journey and reassures him that knowledge is great. I have a cameo in the film but it is spread through out the film because you will see glimpses of me till the end," he said.
POSTED BY: PALLAVI SINGH
PGDM III SEM, 'B'

5 experts chosen for Infosys prize .

The Infosys Science Foundation, a not-for-profit trust set up by Infosys Technologies, on Monday named three scientists and two academic experts as winners of Infosys Prize 2009 for outstanding contributions to scientific research. The winner in physical sciences is Thanu Padmanabhan of Inter-University Centre for Astronomy and Astrophyics, Pune, in recognition of his contribution to a deeper understanding of Einstein’s theory of gravity in the context of thermodynamics . For mathematical sciences , Ashoke Sen of Harish Chandra Research Institute at Allahabad was given the prize in recognition of his contributions to mathematical physics. For life sciences, K VijayRaghavan of National Centre of Biological Sciences in Bangalore got the award. The winner in the social sciences and economics category is Abhijit Vinayak Banerjee of Massachusetts Institute of Technology for his contributions to the economic theory of development. Upinder Singh of the University of Delhi won an award for her contributions as an outstanding historian of ancient and early medieval India.

POSTED BY: PALLAVI SINGH
PGDM III SEM 'B'

Telecom players differ over spectrum capping

NEW DELHI: Telecom operators are divided on the cap that should be imposed on the spectrum held by them in a particular service area. This debate which leads up to an open house with Trai next week is critical as it will mould the future of M&As in the telecom sector which has up to 14 operators per circle with an average holding of merely 5.7 MHz of GSM spectrum. While some companies have up to 10 MHz in a handful of circles, most are at one-third of the world average of roughly 17 MHz per operator. Another related development to these caps will be the spectrum transfer charge and rules under with companies can consolidate spectrum following M&As — which are currently restricted under the M&A guidelines of April 2008. While all operators concede there should be a cap, they have wide-ranging differences depending upon their position, current possession of spectrum and future needs. In response to the Trai consultation paper which is to decide the critical issue of spectrum allocation among telecom operators in India, the responses are divided between existing and well-entrenched GSM operators, dual technology operators providing both CDMA and GSM services, and new entrants who are yet to launch services after having been granted licences in 2008. Companies like Datacom, Unitech, Bharti, Reliance, Idea, and Aircel have argued in favour of a cap of 25% of the total commercial spectrum assigned in a service area irrespective of technology mix or spectrum band deployed. This also implies that they expect every circle to have no less than four operators at any given point in time post the consolidation that is expected over the next two years. MTNL wants a maximum cap of 15 MHz per operator in GSM spectrum, and 10 MHz per operator in CDMA spectrum. Etisalat and Tatas advocate a 12.4 MHz cap in GSM spectrum per operator. However, on the CDMA side, Etisalat is silent while Tatas seek a cap of 10 MHz per operator. Industry associations COAI and AUSPI have predictably followed the same tune as their members. AUSPI's position is consistent with Tatas — seeking a cap of 12.4 MHz in GSM and 10 MHz in CDMA, while COAI has gone with the vast majority of GSM operators who have sought a cap of 25% of total commercial spectrum available in a circle. Both Vodafone and BSNL have agreed to a cap but not given a specific number, while Vodafone has referred to setting the spectrum cap in the context of spectrum holdings of efficient international operators. After the open house, Trai will submit its recommendations to the telecom department, which will take a final call on the matter. It is likely that DoT's decision will come after the 3G auctions, which are expected in January-February 2010.
POSTED BY:

PALLAVI SINGH

PGDM III SEM

Banks may get more time for NPA provisioning

The Reserve Bank of India may give banks a breather by extending the deadline for increasing the provision coverage for non-performing assets (NPAs) to 70 per cent from September 2010 to March 2011.

In its Second Quarter Review of Monetary Policy, the RBI had said that banks should have minimum provision coverage of 70 per cent for NPAs by September 2010.

Fearing the impact of the RBI decision on their profits, banks had sought a review of the new norm. A PSU bank official said on Wednesday on the sidelines of an international banking seminar that the RBI refused to lower the provisioning requirement from 70 per cent but conveyed to banks that the deadline will be extended by six more months. However, the central bank is yet to issue a formal communication in this regard, he added.

This leeway will allow banks to step up gradually their provision coverage, thereby reducing the impact on profits.

In the monetary policy the RBI said, “With a view to improving the provisioning cover and enhancing the soundness of individual banks, it is proposed to advise banks to augment their provisioning cushions consisting of specific provisions against NPAs as well as floating provisions, and ensure that their total provisioning coverage ratio, including floating provisions, is not less than 70 per cent.”

Recently, the State Bank of India Chairman, Mr O. P. Bhatt, had said that all banks had sought a review of the deadline. The SBI will have to provide around Rs 5,000 crore for improving its NPA coverage ratio, which has fallen to 42.87 per cent as of September-end 2009, compared with 44.14 per cent as of September-end 2008, he had said.

According to a report by rating agency Crisil, the proposed increase in NPA coverage ratio will mean that banks now have to make an additional provisioning of Rs 1,30,000 crore till end-September 2010. This estimate was based on the NPAs reported by banks as on March 31, 2009. As on this date, the banking system’s NPAs were at 2.3 per cent of total advances, while the NPA coverage was around 55 per cent.

In its report, Crisil also said that even if NPAs rise to 3 per cent by March 2010, the required additional provisioning could increase by Rs 2,00,000 crore. Therefore, the total provisioning requirement for the system could be between Rs 3,00,000 crore and Rs 3,30,000 crore till end-September 2010.

Consolidation issue


Also, on the sidelines of the seminar the RBI Deputy Governor, Dr K. C. Chakrabarty, said consolidation in the Indian banking industry is necessary, but the time for it has not yet come. The banking sector must focus on financial inclusion for now.

His comments assume significance in the light of the meeting between bankers and Finance Ministry officials to discuss consolidation, last week.

“Consolidation will happen in an industry where there is a proliferation of products and services. We are talking about consolidation in an industry where 50 per cent people are not having access to a bank account,” Dr Chakrabarty said.

While size is important to compete in the market, small banks are needed to reach out to the interiors of India, he said. For the next five years, financial products and services must be available through a bank-led model. Both large and small banks are needed, he added.
POSTED BY:

PALLAVI SINGH

PGDM III SEM

Mahindra Satyam feels heat of Rs 1,220 crore extra burden

HYDERABAD: Mahindra Satyam, the new owner of fraud-hit Satyam Computers, will have to manage an additional burden of Rs 1,220 crore over and above Satyam's rise, fall and its existing claims and pending law suits after India’s Central Bureau of Investigation (CBI) said on Wednesday B Ramalinga Raju forged board resolutions to borrow money from banks to salvage his company.

However, there were no entries in the software firm’s books to this effect. This money is in addition to the unaccounted Rs 1,230 crore that Raju claimed to have been infused into Satyam by promoters of 37 front companies floated by Raju. Even in this case, there were no entries books.

Vineet Nayyar, executive vice-chairman of Mahindra Satyam, said that liabilities are still limited. “I think we need to distinguish two things. CBI is talking to the extent of fraud, accounting fraud committed what I am talking about our financial liabilities to what we term as Sundry Debtor those are not large, those we can manage, those we can handle,” he told ET NOW.

“Now that fraud is walk down the historical path what was the magnitude of the accounting fraud in the last seven to eight years, was it Rs 7,000 crore, was it Rs 10,000 crore, was that Rs 11,000 crore I assume that is what CBI is referring to but I must say I should not be commenting on it because I have not seen it,” Mr Nayyar added.

On Tuesday, the CBI said the investor loss from the Satyam accounting fraud was worth around Rs 14,000 crore, shares of Satyam plunged by 11% on BSE and financial analysts expressed concerns about the company’s liabilities.

Posted By:

Pallavi Singh

PGDM III Sem

Sensex companies' earnings rise 7.2% in Q2

COIMBATORE: Though the earnings before interest, tax, depreciation and amortisation (EBITDA) of sensex companies have grown 7.2% year-on-year(y-o-y) to Rs 56,100 crore in the second quarter, some large caps have come up with a poor show.

Net profits of the 30 sensex companies grew 3.6% on a sequential basis to Rs 33,000 crore but dropped 2.7% y-o-y. Sales of sensex companies however grew both on a sequential (7.7%) and y-o-y (3.4%) basis to Rs 1,96,000 crore during the quarter, data shows.

“The breadth of earnings has been positive but several large caps have disappointed,” market observers said. “The earnings growth has been slightly below expectations,” said D D Sharma, senior vice president, research, Anand Rathi Financial Services.

EBITDA margins for the sensex companies improved 1% y-o-y to 28.6% while profit margins declined at a slower pace in the quarter to 16.9%, data compiled by domestic brokerage firm Motilal Oswal securities shows.

In all, 22 sensex firms made profits during the quarter with automobile majors Mahindra and Mahindra, Hero Honda and Maruti Suzuki reporting more than 90% y-o-y growth in profits. “Price hikes, full realisation of lower commodity prices and operating leverage drove up EBITDA margins (in automobiles),” analysts said.

While realty major DLF was the biggest loser in the Sensex pack with net profits plummeting 77.3%, Tata Steel, Hindalco and Reliance Communication too registered sharp declines.

Automobile, FMCG and pharma firms made gains but realty, telecom, metals, oil and gas and infrastructure companies saw a drop in profits. Automobile companies made an impressive 87% growth in profits followed by FMCG (25%) and pharma (24%). While the real estate sector saw the biggest contraction in profit margins, metals and telecom also recorded a fall in profitability.

A study of 115 major firms (excluding oil marketing companies) by Motilal Oswal showed that 51% of the companies made profit growth of above 15%, which is slightly lower than that of the previous quarter. About 35% of the firms in the group reported decline in profits.
POSTED BY:
PALLAVI SINGH
PGDM III SEM

Tycoons who go beyond riches, enrich people

Mehmood Khan grew up in Mewat, Haryana, one of the most backward districts in the country. Hard work and native intelligence took him to London, headquarters to consumer products giant Unilever, where he was head of global innovation. While there, he decided to use his network and business skills to help pull out the 4 million-odd residents of Mewat out of the boondocks. So he networked with IBM, Future Group and Mother Diary among others to build local enterprise using local talent.
He focussed on women in a district where female literacy levels were an abysmal 2-3 percent. After six to seven years of convincing young girls to make school a habit, literacy levels have shot up to 86 percent in the six to 14 age group. Along the way, he discovered large swathes of rural customers who, he believed, held value that could be unlocked.
When we first wrote on Khan in June this year, it was clear the story had struck a chord. It was widely circulated among his alumni at the Indian Institute of Management, Ahmedabad. Khan says he was flooded with offers to help via SMS, email and phone calls from all over the world.
Shortly after Manmohan Singh’s government was re-elected in May, Khan reckoned it was time for some serious soul-searching. A few months later, he opted to retire from his job at Unilever and commit himself full-time to resurrecting Mewat. It is time, he said, for people like him to give back to society. He now lives there, travels widely across the district, and leads a team of volunteers on projects that promise enormous change. Now, it isn’t difficult to see why Khan’s story inspired a section of our readers to act.
Many are trapped in jobs that hold no meaning. A few find a cause they identify with, but their involvement is usually limited to writing out the occasional cheque. Only a handful of leaders I know of go beyond passive giving and engage deeply to solve complex problems confronting society. I have often wondered, what holds them back! These are high-performance individuals who have been there, done that. Three weeks ago, I decided to find out why.
Tarun Das is the best go-to guy out there, if you are a business leader looking for advice. You can trust him to give you the truth and nothing but the truth, even if you fl inch. Two weeks ago, Das stepped down as chief mentor of the Confederation of Indian Industries (CII). He intends to spend his time helping businesses find ways to integrate with society.
During his tenure at the helm of CII, Das says he was witness to an incredible revolution. For much of the eighties and nineties, Indian industry was uncompetitive, laid back and destined to go under when liberalisation came knocking. That destiny though went the way of the Malthusian nightmare--it remained a fable. Instead, Indian industry learnt to stop whining and learnt to become globally competitive. It has come to a point where even an 800-pound gorilla like General Electric is being compelled to look closely, and perhaps emulate the innovative services and products sweeping its markets from India. This, Das says, was the first revolution. He now wants to see a second one in his lifetime--businesses stepping up and engaging deeply with social development.
What, I ask him, will galvanise business leaders? His answer is a simple one. After they’ve built their businesses and earned their glory, every leader in the country craves only one thing. Respect. Respect of the kind Ratan Tata commands. It’s the kind of thing that isn’t earned overnight. It is built brick by brick, by engaging deeply with the society they live in.
I took the thought to somebody who knows a thing or two about the personal transformation business leaders ought to go through. As head of the Azim Premji Foundation, Dileep Ranjekar has had the opportunity of working closely with Premji. The foundation is focused on primary education. Ranjekar says a social mission requires long-term commitment from the promoter. In their case, he says, there was no way they could figure out a sensible agenda without actually taking the plunge. They considered a few options before deciding to stick with primary education. That is where, they reckoned, they could bring considerable change.
Bringing systemic change though is a bit like peeling an onion they figured along the way. Take for instance something that appears as simple as training teachers. Primary school teachers are trained by high school teachers who in turn have never taught at the primary levels.
How do you deal with the gaps this deficiency causes? Th en there is the fact that students come from diverse backgrounds, some from homes where both parents are illiterate. So, says Ranjekar, you’ve got to take a holistic view of things, understand the linkages, and keep plugging away. Progress can be painfully slow.

POSTED BY:

PALLAVI SINGH

PGDM III SEM

Now, roaming at just 1 paisa per sec

NEW DELHI: Intensifying the tariff war in mobile telephony, Tata DoCoMo, the GSM arm of Tata Teleservices, on Sunday extended its

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one-paisa-per-second billing scheme to roaming calls, regardless of the network or type of phone. Tatas' new tariff plan, starting Monday, is likely to trigger a rate war in the roaming segment as it did for local and STD calls in June this year. That customers lapped it up was reflected in the addition of the maximum number of subscribers to the Tata Teleservices network among all operators in the last three months. The popularity of the per-second tariff forced most operators to cut local call rates to a paisa per second. While the war has started affecting their profitability, the competition has left consumers laughing their way to the bank. Says Tata DoCoMo president Deepak Gulati, “We are delighted to announce yet another industry-defying offer to our subscribers - a transparent and pack-free roaming tariff plan of one paisa per second for all incoming and outgoing calls, both local and long distance, to all networks and types of phones (mobile or landline).” The pay per-second tariff war gets a new leverage with Tata DoCoMo launching its plan to roaming services. Though a one paisa-per second tariff translates to 60 paise per minute and hence works out to be more expensive to a 50 paise-per minute tariff, in actual use it will prove more economical. This is because in a 50 paise-per minute plan, one has to pay 50 paise even if a call is for 20 seconds. Similarly, if one makes a call for 70 seconds, he will have to pay for two calls. But, in the case of a pay-per second plan, one has to pay for the duration of the call. The Tata move was preceded by Bharti Airtel, which on Friday launched a billing scheme that slashed roaming rates by nearly 60%.
POSTED BY:
PALLAVI SINGH
PGDM III SEM

ICICI Bank among best firms for nurturing talent

NEW DELHI: As many as five Indian firms, including ICICI Bank and Infosys Technologies, have made it to the list of top 12 companies in the Asia Pacific region for being instrumental in building leadership capability within their organisation. According to the list compiled by HR consulting firm Hewitt in partnership with RBL Group and US magazine Fortune, ICICI Bank emerged at the top, followed by China Mobile Communications Corp and TCL Corp, a China-based electronics goods maker. Meanwhile, the Indian arm of global FMCG major Unilever, Hindustan Unilever, was ranked at the fourth spot, Aditya Birla Group was at the sixth spot, Infosys Tech was ranked eighth and another IT major Wipro cornered the 10th slot. Among others on the list, agricultural products firm Olam International was positioned in the fifth place, beer and wine products producer Lion Nathan was at the seventh position. The New Zealand Refining Company was ranked ninth and TrustPower Ltd and British American Tobacco Berhad stood at the 11th and 12th positions, respectively. Meanwhile, in the global top 25 firms list, there were as many as three Indian companies -- ICICI Bank, Hindustan Unilever and Infosys Technologies. Regarding the decent presence of Indian firms, Hewitt Associates Talent and Organisation Consulting (Business Leader) Ajay Soni said: "It comes as no surprise that Indian firms have a good presence in these lists. These companies are well-positioned for growth despite the economic challenges." In the global list, ICICI Bank was on the fifth spot, Hindustan Unilever stood at the 10th spot, while Infosys have made a space for itself on the 24th slot. The global top 25 list was topped by technology giant IBM, followed by Proctor & Gamble, while General Mills and McKinsey cornered the third and fourth positions, respectively. The others in the list include fast-food chain McDonald's (sixth), US-based conglomerate General Electric (seventh), Titan Cement (eighth) and China Mobile (ninth), Colgate Palmolive (12th), Whirlpool Corporation (15th), Pepsico (20th), American Express (21st), Intel Corporation (23rd) and FedEx Corporation (25th). On ICICI Bank, the survey said: "ICICI Bank doesn't just have recruiters trolling for talent outside the company; it also has 600 employees who act as talent scouts internally, identifying coworkers with leadership potential." Hindustan Unilever, which has 15,000 employees, calls it a "70-20-10" model for developing its workforce that is 70 per cent of learning happens on the job, 20 per cent through mentoring, and 10 per cent through training and coursework. Wipro HR Head Prateek Kumar said, "We cannot build leadership overnight it is a continuous process, we have to nurture leadership within the organisation." Soni further said, "Indian companies come with a mix of cutting edge leadership practices, innovative procedures and the zest to create a robust leadership pipeline."

POSTED BY:

PALLAVI SINGH

PGDM III SEM

Govt report: Over $98B wasted in improper payments

BEIJING – President Barack Obama, with China's leader at his side, lifted his sights Tuesday for a broad interim accord at next month's climate conference that he said will lead to immediate action and "rally the world" toward a solution on global warming.
Obama and President Hu Jintao talked of a joint desire to tackle climate change, but failed to move off differing positions on an root issue that could block a deal at the 192-nation conference in Copenhagen: how much each country can contribute to curb greenhouse gases and how the world will pay the billions of dollars needed to fight rising temperatures.
Hu said nations would do their part "consistent with our respective capabilities," a reference to the firmly held view among developing nations — even energy guzzlers like China, India and Brazil — that they should be required only to set goals for reining in greenhouse-gas emissions, not accept absolute targets for reducing emissions like the industrialized countries.
Nonetheless, the symbolism of the world's two largest polluters pledging no half measures in an agreement during the Dec. 7-18 conference was an attempt to take the sting out of the admission by Obama and other leaders over the weekend that Copenhagen would be only a way station rather than the endpoint envisioned two years ago when negotiations for a new climate treaty began.
Obama administration officials acknowledge that the Copenhagen talks are not expected to produce a final legal agreement, putting that off until next year. So the administration is hurriedly looking for ways to rescue a process that has gone far off track by building hopes that a significant, though interim and nonbinding, deal will be struck and keep international talks alive. Obama said Tuesday that he wants next month's talks to produce something more than "an agreement to have an agreement" at a future date.
"We need numbers on the table in Copenhagen," said Danish Prime Minister Lars Loekke Rasmussen, speaking to the top negotiators of 44 nations meeting for informal consultations. He said the agreement should be "concrete and binding on countries committing to reach targets, to undertake actions, and to provide agreed finance."
Obama said the aim of the summit "is not a partial accord or a political declaration, but rather an accord that covers all of the issues in the negotiations, and one that has immediate operational effect."
He said an all-encompassing agreement addressing all the areas for an eventual treaty "would be an important step forward in the effort to rally the world around a solution to our climate challenge."
Obama did not elaborate. But the United Nations and the European Union have called for a fund of at least $10 billion annually in the next three years to help poor countries draw up plans for moving to low-carbon economies, slow deforestation and take emergency steps against the effects of climate change.
The agreement is meant to succeed the 1997 Kyoto Protocol, which required 37 industrial countries to cut emissions an average 5 percent below 1990 levels by 2012, but which made no demands on rapidly growing economies like China's.
The Copenhagen agreement would require developing countries to curb their emissions growth, but it was unclear how their plans would be enshrined in the accord and what would happen if their promises were broken.
White House aides said Sunday that a fully binding legal agreement would be put off until a December 2010 meeting in Mexico City, even though the new agreement must be ratified and in force when the Kyoto pact expires at the end of 2012.
Together, the U.S. and China emit 40 percent of the world's greenhouse gases, and a new study said the recent growth of emissions during the economic downturn was almost entirely driven by China. Worldwide carbon emissions jumped 2 percent last year, said the study, published Tuesday in the journal Nature Geoscience, adding urgency to efforts to rein in pollution that traps the Earth's heat.
In a joint statement, Obama and Hu said Copenhagen should produce an agreement that would "include emission reduction targets of developed countries and nationally appropriate mitigation actions of developing countries."
Obama administration officials are pushing for Copenhagen negotiators to tackle specifics on the major issues such as financing for poor nations, technology cooperation and some commitments among developing nations — though not legally binding — on emission reductions.
That is what Obama was referring to when he said in Beijing that whatever comes out of Copenhagen should have "immediate operational effect," according to administration and congressional officials with knowledge of the administration's preparation for the climate talks.
In Washington, Carol Browner, the White House adviser on energy and climate, said the United States is ready to participate in a commitment by developed countries to help poor countries deal with the impacts of climate change. Browner declined to say how much the United States might contribute, but indicated those details would be worked out in Copenhagen.
U.N. estimates say about $150 billion a year will be needed by 2020.
The summit's Danish hosts and other European leaders understood Obama's comments on his Asian tour as a signal that he will deliver specific pledges of U.S. action on carbon emissions and financing in Copenhagen — even at the risk of moving faster than Congress would let him.
U.S. negotiators have persistently resisted pressure to commit to figures for emissions reductions or financing until Congress completes domestic climate legislation.
The legislative struggle in Congress is now certain to extend into next year. One version, calling for an 80 percent reduction in greenhouse gases by mid-century, has passed the House and a similar version recently emerged from a Senate committee, despite solid Republican opposition.
The administration hopes the U.S. position in Copenhagen will be fortified by evidence of some progress in Congress on climate, along other action the White House has taken to promote clean energy and rein in carbon dioxide emissions. In turn, they believe, some additional commitment from developing countries — even in terms of specific goals — could help get a climate bill through Congress, where opponents have repeatedly argued U.S. action alone won't help solve the climate problem.
Loekke Rasmussen said he told Obama and other leaders last week at an Asia-Pacific summit they must come up with hard commitments at Copenhagen, and Obama did not object.
Anders Carlgren, the environment minister of Sweden, said U.S. pledges would likely spur greater promises from developing countries to curtail their emissions growth. Obama could then take those results back to Congress, Carlgren said.
Obama's comments in Asia signaled he is trying to balance domestic concerns with international demands and is in intense conversation with Congress in advance of the summit, said Jake Schmidt, the climate policy director for the New York-based Natural Resources Defense Council.
He said it was possible Obama might make a conditional pledge or give a range of emissions targets.
"It's a positive shift in what the administration thinks it can bring to Copenhagen," he said.
___
Max reported from Amsterdam. Associated Press writers Jan Olsen in Copenhagen, Malin Rising in Stockholm, and H. Josef Hebert and Seth Borenstein in Washington contributed to this report.

"It goes without saying that these results would be completely unacceptable in the private sector, as they should be in government, especially at a time of record deficits," Carper said.

Posted By:

PALLAVI SINGH

PGDM III SEM

Rupee rises 10 paisa against dollar

MUMBAI: The Indian rupee on Monday closed higher by 10 paisa at 46.21/22 against the US dollar, after hitting a one-month high of 46 a dollar in early trade, supported by a rise in equity market and a fall in the greenback overseas.

Dealers at the Interbank Foreign Exchange (forex) market said the rupee strengthened as local stocks rallied sharply, raising hopes of more capital inflows. The benchmark Sensex today gained 184 points to close above the 17,000-point level.

Besides, dollar's weakness against major world currencies helped the local unit to move upward. They said the domestic currency also drew support from increased dollar sales by exporters.

The rupee touched a one-month high of 46.00 against dollar this morning after opening firm at 46.12/13 a dollar against the last weekend's close of 46.31/32 per dollar.

Later, it closed at 46.21/22 against the US dollar. Meanwhile, oil was higher at $77.06 a barrel in Asian trade as investors bought into commodities, including crude, on the back of a weak dollar, analysts said.

POSTED BY:

PALLAVI SINGH

PGDM III SEM

Obama in China; unlikely to push hard on currency

Washington: In his visit to Beijing this week, President Barack Obama is expected to tread lightly when pressing China to let its currency rise against the dollar. Doing so would benefit the U.S. economy by making American-made goods cheaper in China, but Obama is reluctant to upset Beijing. China is the No. 1 lender to the U.S. at a time when the latest annual budget deficit hit a record $1.42 trillion. That makes for a lot of Treasurys to be sold. China has expressed concerns that the falling dollar threatens the value of its existing U.S. holdings.
The United States also needs China's help in dealing with foreign policy threats. Those include curbing the nuclear ambitions of North Korea and Iran. There's another reason for a gentler U.S. stance: Analysts believe China already signaled last week that it was preparing to let its currency rise against the dollar. That shift could eventually aid U.S. manufacturers. It might also feed a U.S. economic rebound. But China is also applying some pressure on the U.S. about its currency. On Sunday, China's top bank regulator said the weak dollar and low interest rates were distorting global asset prices and posing an "insurmountable risk to the recovery of the world economy," according to a transcript of a speech he made at a financial forum in Beijing. The regulator, Liu Mingkang, said the declining dollar and low interest rates were encouraging a "massive" U.S. dollar carry trade — the practice of borrowing money at low rates in one currency to invest in assets in another currency that offer a higher return. Analysts say China will likely wait months before tweaking the yuan-dollar exchange rate, which now stands at about 6.8 yuan to the dollar. Beijing doesn't want to appear to be bowing to U.S. pressure. Even then, it will take time for the U.S. to benefit. Mark Zandi, chief economist at Moody's Economy.com, says he expects the Chinese to begin allowing the yuan to rise against the dollar by next spring, at a rate of about 5 percent a year. At that pace, it would take until around 2015 for the two currencies to be in balance — a process Zandi said could help narrow the U.S. trade gap with China, which last year hit $268 billion. U.S. manufacturers won't likely be satisfied. They want the administration to push Beijing to raise the yuan's value further and faster. Their exports have been hurt by China's move last year to peg the yuan to the dollar. They contend the yuan is undervalued by up to 40 percent. From 2005 to 2008, the Chinese had allowed the yuan to rise about 20 percent against the dollar. It started pegging its currency to the dollar in mid-2008, once the global recession began hurting China's exports.

POSTED BY:

PALLAVI SINGH

PGDM III SEM

Help us in developing India: Vayalar Ravi to Indian Americans

WASHINGTON: Union Minister of Overseas Indian Affairs Vayalar Ravi, who is on a five-city US tour to popularise the upcoming Pravasi Bharatiya Divas in New Delhi, on Thursday urged the Indian American community here to lend their helping hand in developing the country.

Addressing a select gathering of eminent members of the community at the Indian Embassy here, the minister said their contribution could vary from building a small school in their village or sharing the knowledge back home.

The India Development Foundation of Overseas Indians, whose US chapter is expected to be fully functional by next year, would provide a platform for the community to contribute towards their country, Ravi said.

The foundation was formed to facilitate NRIs in their philanthropic activities, including innovative projects and instruments, self help groups for economic empowerment of women, best practice interventions in primary education and technology interventions in rural health care delivery.

"The foundation will give opportunity to every overseas Indian to help in developing his or her village in every way," Ravi said, while urging the community to concentrate on three main issues - education, health and women empowerment.

Global INK is being set up as an electronic platform for harnessing the knowledge and skills of the diaspora for the benefit of the country, Ravi said, adding the website is expected to be ready by the New Year.

"This is a knowledge bank," he said. The Minister of Overseas Indian Affairs, who has so far visited Chicago, Denver and Houston, is now scheduled to visit New York later this week.

POSTED BY:

PALLAVI SINGH

PGDM III SEM

Rs 50,000-crore investments coming soon

MUMBAI: A fund pool as large as Rs 50,000 crore is seeking investing opportunities across asset classes. Mutual funds, banks and companies wanting Top 10 challenges for India to raise money are competing against each other to pocket investible funds that have started flowing out of high-interest bank fixed deposits.

After the collapse of US investment bank Lehman Brothers in September last year, risk-averse investors had parked large sums of their savings and surplus cash in ‘term deposits’ floated by banks. In their bid to attract money from investors, banks were offering interest rates in the range of 10-11% for deposits spanning 1-3 years. A year later, investors are withdrawing deposits, as interest rates have fallen over 500 bps from peak levels reached in October 2008.

“We’re already beginning to see opportunistic investors shifting their investments from banks to mutual funds and other asset classes,” said Vikaas Sachdeva, head-business development, Bharati Axa Investment. “While conventional investors (or investors advised by banks) would retain their money in bank fixed deposits at lower interest rates, the smarter ones would look at options like short-income funds, treasury advantage funds, fixed maturity plans and also monthly income plans for higher returns,” Mr Sachdeva added.

At current rates, bank deposits would yield anywhere between 5.2% and 7% pre-tax. In the event of rising interest rates, mutual fund investors would be looking at shorter-term debt options to invest their money. Money market funds currently yield 4.5-5.5% (pre-tax; if dividend option, tax charged is lower) interest, while fixed income funds earn pre-tax interest of 8-10%.

“Investments will not be skewed to any particular asset class this time around. Money will be scattered across assets, with a decent chunk flowing in to fixed income mutual funds and smaller portions in to equities and other asset classes,” said Alok Singh, head-fixed income, Fortis Investment Management.

Wealth management experts are not expecting large chunks of money to flow into equity mutual funds and stocks, thanks to stretched stock prices and market volatility. The very fact that a good portion of bank fixed deposits are held by corporate treasuries rule out chances of money flowing into stock markets or real estate any time soon. Companies wanting to raise deposits (corporate FDs) will benefit the most from this scenario, wealth managers opine.

Corporate FDs offer at least 2-3 percentage points higher than the corresponding rates offered by banks in their fixed deposit schemes. Interest is paid on monthly, quarterly, half-yearly, yearly or on maturity basis. Companies like TV 18, Damodar Threads, Future Polyester, Indage Vintners and Tata Motors are raising money from public and body corporates at rates as high as 11%.

“Investor profile will determine the flow of money. Wholesale deposits (corporate surpluses) will never come to equity funds for sure. Such pools will chase short-term debt funds or be ploughed back to the company itself for capex initiatives,” said Huzaifa Husain, head of equities, AIG Investments. “Retail deposits, which are smaller in size, will flow into all asset classes, including bank deposits (reinvestments), equities, funds and even gold,” Mr Husain added.

POSTED BY:

PALLAVI SINGH

PGDM III SEM

Malaysian airline sells 300,000 seats in 24 hours

KUALA LUMPUR: With India and China among its main targets, Malaysian budget airline Air Asia's campaign saw at least 300,000 seats being sold in less than 24 hours.

The company's website registered 300 million hits in the first 11 hours of its Free Seats campaign.

The airline's regional commercial head Kathleen Tan said that at least 300,000 seats were sold in less than 24 hours.

Air Asia's server capacity had been doubled to cope with the congestion, she told The Star newspaper.

"The rush for the free seats is a real testament that today's consumers are online savvy and embracing the low-cost revolution happening in Asia."

Besides India and China, the low-cost carrier is giving away till Sunday a million free seats to more than 70 destinations in Taiwan, Indonesia and Thailand.
POSTED BY:
PALLAVI SINGH
PGDM III SEM

APEC ministers warn economic crisis is not over

By Bill Tarrant

SINGAPORE (Reuters) - Asia-Pacific ministers warned on Wednesday that the global economic crisis was far from over and a current upturn was a respite rather than recovery.

Ministers from the Asia-Pacific Economic Cooperation forum (APEC) have gathered in Singapore for meetings that will culminate in a weekend summit that U.S. President Barack Obama will attend.

Obama, in an interview with Reuters, said he would work with China on his Asian visit to address the economic recovery and trade imbalances.

After foreign and trade ministers met for breakfast on Wednesday, Singapore's representative George Yeo said they had discussed the global economic recovery, reform of financial institutions and resisting protectionism.

He said the consensus among ministers was that the global economic crisis was "by no means over".

"The upturn that we now have is a respite. The situation is still fragile. We should still address the root cause of the problem," he said.

Finance ministers from the 21-member Pacific rim group have a separate meeting on Thursday and, according to a draft statement, will pledge to keep up economic stimulus plans.

World Bank President Robert Zoellick said he was comfortable about world growth prospects this year, but saw downside risks for 2010 and recommended governments keep stimulus measures in place through next year.

POSTED BY:
PALLAVI SINGH
PGDM III SEM

Cyclone threatens western India

A large cyclone is heading towards the western Indian states of Maharashtra and Gujarat, weather experts warn.

The threat of the storm coming in from the Arabian Sea has prompted the authorities in Mumbai (Bombay) to close schools, shops and offices.

The start of the one-day cricket series between India and Australia in the city has been delayed because of heavy rain.

The precise path the cyclone will take is not clear. It is expected to grow in intensity overnight on Wednesday.

India is regularly hit by cyclones. Rain has been in short supply in large parts of Maharashtra recently, with many areas experiencing drought.

High winds

The imminent arrival of Cyclone Phyan on India's western coast has already affected hundreds of fishermen.

They were ordered to turn back as it approached from the Arabian Sea south-west of Mumbai, India's financial and entertainment capital.

Rain lashed parts of western India for much of Tuesday and is expected to become more torrential on Wednesday, with winds speeds of up to 90km/h (55mph), the India Meteorological Department said.

In Mumbai, air and train services remained unaffected despite the closure of schools and offices.

The authorities in the neighbouring state of Gujarat are closely watching 175 villages in 12 coastal districts where they have warned that thousands of people may have to be evacuated to safer areas.

Heavy rain and high winds are also being forecast off Goa, Karnataka and Kerala, other states on the west coast, over the next two days.

Officials say it is difficult at present to predict the course of the cyclone, which may veer off in another direction in the Arabian Sea or lose strength as it travels inland.

POSTED BY :

PALLAVI SINGH

PGDM III SEM

Dollar near 15-month low against basket of currencies

TOKYO: The dollar hovered just above a 15-month low against a basket of currencies on Tuesday as investors looked to return to leveraged carry , supporting the euro and high-yielders. Expectations that US interest rates are likely to stay near zero for a while are encouraging investors to use the dollar to fund carry trades in higher-yielding assets. "With relatively solid stocks and higher commodity prices, and major events out of the way, market sentiment has shown a sense of relief," said Mitsuru Sahara, chief manager at currency derivatives trading at Bank of Tokyo-Mitsubishi UFJ. "The dollar is weakening broadly at a gradual pace but market volatility is low and there is no climate of returning to crisis," he said. An index of the dollar's performance against six major currencies edged up 0.1 percent to 75.110, having dropped about 1 percent the previous day to as low as 74.93, its weakest since August 2008. It was the biggest one-day fall since late July. "While dollar bulls are licking their wounds, equity and 'everything risky' investors are having a field day," said Matthew Strauss, a senior currency strategist at RBC Capital. "The bounce off 74.93 looks more like a pause than a corrective bounce." Some profit-taking emerged on the euro and yen crosses before a US market holiday on Wednesday but the currencies retained much of their gains made on Monday when the aftermath of a G20 meeting reinforced expectations for US rates to stay low for a while.

POSTED BY:

PALLAVI SINGH

PGDM III SEM

Rate of Employment up in Service Sector

New Delhi: The services sector of the Indian economy has bee performing well of late, especially in terms of recruitment. CISCO would be shifting its operations pretty soon in India and this is expected to generate a fair number of jobs in India itself. It would be employing 12,000 new workers in India in the next couple of years. This is expected to take the workforce of the company in India to 15,000.
In the present fiscal, WIPRO, one of the most prominent information technology companies in India, has already recruited a thousand professionals in the first half. It is aiming to provide 2,000 more jobs in the second half. By the fourth quarter it would also be providing the salary increments across various levels. This is an important when one considers that a hike was not proposed in their budget at the beginning of the financial year.
In 2010 fiscal iGate is looking to provide 1,500 new jobs. It is also being assumed that their IT budget would be increasing at a rate of 2 to 4 percent in the coming fiscals, as per Phaneesh Murthy, the CEO. Infosys would be recruiting 1,500 to 2,000 people before the present financial year comes to an end. It is looking to establish a fresh delivery centre at the USA.
8,000 people are supposed to be recruited by Accenture by the conclusion of the coming fiscal. This would be taking their aggregate employee strength to the 50,000 mark. In India this company is going to emphasize on analytics space as per William D Green, the CEO.
Fact of the matter is the IT industry has been recruiting people for the past couple of months even in the present economic situation. Since December 2008 Cognizant has recruited 8,135 people and TCS has employed in excess of 7,800 people. Gordon Coburn, CEO of Cognizant has emphasised that they would be looking to hire people in a positive fashion.

POSTED BY:

PALLAVI SINGH

PGDM III SEM