Daily News Updates

[vyomb]

http://www.domain-b.com/economy/trade/20080202_inflation.html

The price advantage that Chinese products had in the US seems to be diluting somewhat, as rising energy and raw material costs, along with a falling dollar propel prices of Chinese imports into the United States to new highs.
According to reports, the rise was around 2.4 per cent over past year. However, along with its products, China seems to be exporting some of its inflation to the US as well, as higher energy and food costs that reflect China's growing demand on global resources contributed in some measure to inflation in the United States, which was at 4.1 per cent in 2007, against 2.5 per cent in 2006.
Predictions indicate that cost pressures could make American consumers pay almost 10 per cent more this year on consumer goods including toys, clothing, footwear and other consumer goods.
Economists say that this could well be the beginning of the end of the era of ultra-cheap Chinese goods, having proclaimed for months about the petering-out of China's decade-long role of keeping a lid on global inflation.
Chinese imports comprise 7.5 per cent of American spending on consumer goods, though it has larger chunks of a number of popular product categories, such as around 80 per cent of toys, 85 per cent of footwear, and 40 per cent of clothing. Analysts point out that even in segments where Chinese market share is relatively small, their low prices are the reason other producers keep costs down.
What remains to be seen, according to analysts, is just how the world's production house makes wholesalers pay more for their goods, and if retailers can succeed in passing on the bulk of their higher costs of production on to American consumers. Reports suggest that companies sourcing from are already reeling under mounting cost pressures, which they say will weaken their profits and possibly disrupt their supply chains.
In the absence of credible data, estimates peg the rise in average Chinese wages at around 80 per cent or higher, estimating the lowest wage at about $125 a month.
Some cost pressures are coming from the removal of incentives that Beijing earlier had in place to benefit exporters of cheap products, mainly to tackle complaints from the US and Europe about China's growing trade surplus. China has so far removed or reduced tax rebates on hundreds of items for export, including toys, apparel, leather, wood and other goods, effectively taxing those industries.
Chinese exporters on the other hand, say that the timing of the rebate cut was horrendous, given that factories have been struggling to cope with power shortages, higher raw material costs, rising wages and inflation.
Chinese factory owners say a tough new labour law that came into effect on 1 January complicates the hiring and firing process, and is almost guaranteed to increase labour costs even more. This is in addition to ongoing labour shortages, strikes, and other labour turmoil arising from the implementation of this new law

[no signal]

The directors of the seven Indian Institutes of Management (IIMs) will meet later this month to discuss details of a proposal to take the Common Admission Test (CAT) online by 2009. The CAT exams may also be formatted on the lines of the GMAT (Graduate Management Admission Test) so that the scores are valid for two to three years. An IIM Calcutta professor who is working on the proposal said the primary reason for taking the CAT online is the increasing number of aspirants. “However, we are also considering other possibilities for conducting the CAT exams,” he added. The move could benefit thousands of students. In 2007, around 230,000 students took the exams. This year the number is expected to exceed 300,000. For online CAT exams, the IIMs could outsource the project to an IT firm specialising in education and training services. “The company will provide us with the infrastructure, but the control of setting the question paper will remain with the IIMs. The company will also be allowed to conduct exams at its franchisees,” the professor said. The IIMs may also conduct a preliminary test for students to be eligible to take the CAT. The format of group discussion and personal interviews will, however, be the same. Taking CAT online stems from IIMs’ concern over the chaos that occurs during declaration of results. Last year, for instance, heavy traffic caused the website to crash on January 8, when the results were declared. Besides the seven IIMs, which conduct the exams, the CAT results are also used by 124 other management institutions to enroll students.
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CAT to go online from November 2009

[no signal]

Reliance Power shares will make their debut in the secondary market on February 11 with the shares being listed on the Bombay Stock Exchange and National Stock Exchange.

The company, which attracted over 5 million bids from all categories of domestic and international investors with aggregate commitment of over Rs 750,000 crore, has a shareholder base of 42 lakh.
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Reliance Power listing on Feb 11
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Google 'troubled' by Microsoft bid for Yahoo

Internet giant Google has said it finds "troubling" Microsoft's multi-billion-dollar bid to acquire rival Yahoo and urged US and international regulators to scrutinize the proposed deal.

"Microsoft's hostile bid for Yahoo raises troubling questions," read a statement by David Drummond, Google's senior vice president for corporate development and chief legal officer. "This is about more than simply a financial transaction, one company taking over another. It's about preserving the underlying principles of the Internet: openness and innovation," he said in a written statement yesterday.

He accused Microsoft of using its competitive advantage in the personal computer market to gain "inappropriate and illegal influence over the Internet" and said it was likely to try to do the same if it acquires Yahoo.

"Microsoft has frequently sought to establish proprietary monopolies - and then leverage its dominance into new, adjacent markets," he said, adding that the Redmond, California-based company has a "legacy of serious legal and regulatory offenses" which it could not extend to the Internet.

Microsoft announced on Friday it is courting California-based Yahoo with a $44.6-billion offer. Members of Congress's House of Representatives Judiciary Committee have scheduled a hearing later this week to probe the antitrust implications of such a merger. The committee's Antitrust and Competitive Policy task force will hold the hearing to give the proposed Microsoft-Yahoo merger "careful examination," the panel said in a statement.
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Google 'troubled' by Microsoft bid for Yahoo

[vyomb]

Indian economy will attract more global investments benefiting from the US slowdown but the country should not get "psyched" by the bubble burst there, Commerce and Industry Minister Kamal Nath said on Thursady.

However, on the cautious side, a study has been initiated in his Ministry to assess the impact of US slowdown on the Indian economy.

"It will take a fortnight to do an assessment of what it means to India," he said.

Earlier, the US was the most attractive investment destination for funds from the Middle East and Russia. "All this is changing... India is becoming an important parking lot for investments," Nath said, adding gloomier the US outlook, better it was for India from an investment point of view.

"We must ensure we do not get psyched into the sentimentality of the US downturn. It should not psyche India into pessimism or into an economic impact here," Nath said.

He said the fundamentals of the Indian economy remained strong "but a fine calibration is required to ensure that the momentum continues despite the gloomy economic outlook globally".

Nath said the country's GDP would grow by more than nine per cent in 2007-08 when asked whether he shared the optimism of Finance Minister P Chidambaram. "I agree with the Finance Minister. It (GDP growth) could be higher than nine per cent," he said.


Check out the article here:--http://timesofindia.indiatimes.com/Business/US_slowdown_can_have_positive_spin-offs_for_India/articleshow/2761141.cms

[mohit1984]

What is carbon credit?
As nations have progressed we have been emitting carbon, or gases which result in warming of the globe. Some decades ago a debate started on how to reduce the emission of harmful gases that contributes to the greenhouse effect that causes global warming. So, countries came together and signed an agreement named the Kyoto Protocol.
The Kyoto Protocol has created a mechanism under which countries that have been emitting more carbon and other gases (greenhouse gases include ozone, carbon dioxide, methane, nitrous oxide and even water vapour) have voluntarily decided that they will bring down the level of carbon they are emitting to the levels of early 1990s.
Developed countries, mostly European, had said that they will bring down the level in the period from 2008 to 2012. In 2008, these developed countries have decided on different norms to bring down the level of emission fixed for their companies and factories.
A company has two ways to reduce emissions. One, it can reduce the GHG (greenhouse gases) by adopting new technology or improving upon the existing technology to attain the new norms for emission of gases. Or it can tie up with developing nations and help them set up new technology that is eco-friendly, thereby helping developing country or its companies 'earn' credits.
India, China and some other Asian countries have the advantage because they are developing countries. Any company, factories or farm owner in India can get linked to United Nations Framework Convention on Climate Change and know the 'standard' level of carbon emission allowed for its outfit or activity. The extent to which I am emitting less carbon (as per standard fixed by UNFCCC) I get credited in a developing country. This is called carbon credit.
These credits are bought over by the companies of developed countries -- mostly Europeans -- because the United States has not signed the Kyoto Protocol.
How does it work in real life?
Assume that British Petroleum is running a plant in the United Kingdom. Say, that it is emitting more gases than the accepted norms of the UNFCCC. It can tie up with its own subsidiary in, say, India or China under the Clean Development Mechanism. It can buy the 'carbon credit' by making Indian or Chinese plant more eco-savvy with the help of technology transfer. It can tie up with any other company like Indian Oil [Get Quote], or anybody else, in the open market.
In December 2008, an audit will be done of their efforts to reduce gases and their actual level of emission. China and India are ensuring that new technologies for energy savings are adopted so that they become entitled for more carbon credits. They are selling their credits to their counterparts in Europe. This is how a market for carbon credit is created.
Every year European companies are required to meet certain norms, beginning 2008. By 2012, they will achieve the required standard of carbon emission. So, in the coming five years there will be a lot of carbon credit deals.
What is Clean Development Mechanism?
Under the CDM you can cut the deal for carbon credit. Under the UNFCCC, charter any company from the developed world can tie up with a company in the developing country that is a signatory to the Kyoto Protocol. These companies in developing countries must adopt newer technologies, emitting lesser gases, and save energy.
Only a portion of the total earnings of carbon credits of the company can be transferred to the company of the developed countries under CDM. There is a fixed quota on buying of credit by companies in Europe.

Source:Carbon credit and how you can make money from it

P.S-Excellent Initiative this...But I have one Doubt I tend to read a lot of stuff and forget lots of stuff too so ultimately i end up with almost naught..Can someone tell me how can i improve in this field...(To prevent Spamming Please Post Ur answers on the thread only if they serve for the masses otherwise PM me for only my specific problem)

P.P.S-Another Advice Instead of Quoting the Whole Article or Partially..why cant we write a summary in our words and then provide source so that people can read details if they want to...this will help in 2 ways...We will understand article better and people will be benefitted by getting a gist before going for the detailed article...

[mohit1984]

UK's New Immigration Policies and Discussions with India
Analysis
Why UK changed its Immigration Policy from Highly Skilled Migrants Programme(HSMP) to Point Based System.
1.They want to stop People who do not contribute to their economy in short unskilled labor.
2.Terrorism playing a big role.They want to stop illegal immigrants.
3.Protect their people from losing Jobs to Immigrants.

How is this System different from HSMP.
1.Divided into 5 Tiers for Highly Skilled Labor,Skilled Labor,Temporary Workers and Visitors.
2.Assesment to be done on Educational Qualifications,Previous Work Experience,Knowledge of English language.
3.Two Independent Monitoring Bodies which will keep an eye on the requirements in Individual sectors.

UK has also started collecting Biometric Data for their Visitors so that there is no misuse of personal data.They have also hiked Immigration fees for Various Tiers which acc to them is quite in line with fees for other countries and therfore should not scare potential visitors.

Also there are talks of Bonds and Security Deposits which are to be supplied by Relatives of People Visiting UK in some cases.

Mr Liam Byrne who is Home Minister for Immigration is currently in India along with Asian Delegates to Discuss the Proposed Plan and take feedbacks on the same from Various Dignitaries.

You can read the full articles at below sites.This was just a Gist and i say we go ahead with this Gist Funda instead of Cut Copy Paste Watsay...

The Hindu : Opinion / News Analysis : Britain, India, and immigration

UK unveils Tier 1 points-based immigration system in India- Visa Power-Travel-Services-News By Industry-News-The Economic Times

P.S Koi meri first problem ka solution do...I read a lot but cannot seem to assimilate much after few days i forgot what i read how can i overcome this...Also i cant quote any of the stuff i read in my daily discussions because of this bhulne ki bimaari

[getintoiimb]

guys some business news updates from around the world

Business this week

Microsoft launched an unsolicited $44.6 billion bid for Yahoo! in hopes of gaining a larger share of the online advertising market, which it said is “increasingly dominated by one player”. Google responded that a combined Microsoft and Yahoo! would lead to less competition on the internet and indicated it would challenge the acquisition vigorously. Yahoo! started to assess its options. See article
BHP Billiton raised its bid for Rio Tinto by 13%, valuing its offer at $147 billion. Rio Tinto promptly rejected the deal as too low. Earlier, Aluminum Corp of China and America's Alcoa disclosed that they had built up a 9% joint stake in Rio Tinto, with finance from the deep pockets of China Development Bank, complicating matters for BHP Billiton. If the Anglo-Australian mining companies combine it will be the second-biggest takeover ever (after Vodafone's acquisition of Mannesmann). See article

Oil's not well

BP reported a big drop in its headline profit for 2007, which it attributed partly to refining costs, and announced 5,000 job cuts. Despite the poor performance, BP increased its dividend for the fourth quarter handsomely, on the basis of a “robust view of the future”.
BP's figures were in stark contrast to those of other oil companies, which saw their profits soar. Exxon Mobil said its net income for 2007 was $40.6 billion, a record for an American company; Royal Dutch Shell made a profit of $27.6 billion, the biggest ever for a European company.
The misery continued for America's housebuilders. Toll Brothers, the largest builder of luxury homes, released preliminary quarterly earnings in which it said it expected revenue from its core business to fall by 22%, compared with a year earlier.
The Bank of England cut its key interest rate from 5.5% to 5.25%. The decision was to support a slowing economy, although Britain's central bank remains concerned about inflationary pressures. See article
Already there?


More indicators pointed to a possible recession in America, including the net loss of 17,000 jobs in January, the first monthly drop in employment since 2003. A measure of activity in the service sector from the Institute for Supply Management fell in January by the most since the survey began some ten years ago. Stockmarkets tumbled on the news. See article
Ryanair forecast that high fuel prices and fewer passengers from European markets would affect its profit for the next fiscal year, which it said would be halved. However, Michael O'Leary, the boisterous boss of Europe's biggest low-cost airline, said he welcomed “a good, deep, bloody recession” to force his competitors to reduce fares.
The after-effects of the trading scandal at Société Générale rumbled on. Jérôme Kerviel, the trader placed under investigation for the French bank's euro4.9 billion ($7.2 billion) loss, said that he would refuse to be made a “scapegoat” in the affair. And a report prepared by France's finance ministry criticised SocGen's procedures for monitoring its trades, adding to the pressure on Daniel Bouton, the bank's chairman, to step down. Meanwhile, it emerged that America's Securities and Exchange Commission was looking at a sale of shares by a member of SocGen's board made shortly before the scandal came to light. See article
A surprise last-minute decision by Olivant, an investment company, not to bid for Northern Rock left two offers on the table: one from Richard Branson's Virgin Group, the other a proposed takeover by the bank's management. Olivant blamed the conditions imposed by the British government on a sale of the stricken mortgage lender.
Egg, a British online bank, said it would cancel the credit cards of 161,000 customers it deemed too risky. The cards will stop working in March. The news provoked angry reactions from some credit-card holders who claimed their credit records were spotless. Egg was acquired by Citigroup last year, before the deterioration in money markets.
Lost in the post

Amazon decided to pull out of the DVD rental business in Europe by reaching an agreement to transfer its subscribers to Lovefilm, a rival, in return for a stake in the company. Amazon doesn't have a rental DVD mail service in the United States, but sells or rents films for download through its Unbox platform. It wants to extend this facility to European markets.
The Hollywood screenwriters' strike continued to take its toll on the film industry's award season when Vanity Fair cancelled its Oscars bash, the most glamorous of the many parties due to be held after the awards ceremony. The society magazine scrubbed its event in support of the writers.

[ab32790]

Based on current affairs,I have shortlisted some GD topics:
1>micrsoft yahoo acquisition
2>us election
3>nuke deal
4>racism in cricket
5>Tata Nano
6>Stock market
7>Tare zameen par
8>regionalism in mumbai
11>IPL
12>Depreciating dollar value affecting IT industry.
I will like others to contribute some more topic and contribute articles pertaining to these.
This thread can be very useful for our next round.Lets keep it alive.
Calls so far :SPJain Dubai,GIM,TAPMI,IMT Nagpur

[mandar_mdd]

This is a gr8 initiative.. thanks vyomb
We can really improve a lot by reading articles here & discussing them mutually..

hey by the way ne idea wats India's take on kyoto protocol? Is India a signatory to the protocol? Also we can discuss a bit more on carbon footprints too

[Rohit Gupta]

hi Guys

As GD/PI rounds are approaching , i think this thread is contributing most to my preparation.
There are few terms like Cash Reserve Ration, Repo Rate, Reverse Repo Rate, Inflation Rate, Overnite Interest Rate which are quite asked in interviews. Questions like the impact of these on our economy are hot among interviewers. Indian Monetary policy, 1991 financial Reforms, FDI bottlenecks in india, INDIA-CHINA trade relationship etc could also be there.
If somebody is choosing finance side, then he should be prepared for this. Even for all others , the general understanding is required.

I am looking forward to all puys to post their knowledge. I will soon start posting whatever material i have.