Saturday, 24 May 2008
Friday, 23 May 2008
The inflation in Zimbabwe for the month of March 2008 rose to 355,000%! Yes, 355,000 per cent! It more than doubled from the February figure of 165,000%.
Economists say that it is a miracle that the Zimbabwean economy is still surviving and prices have been rising to unprecedented proportions. Inflation surged between February and March following the sudden rise in money supply that flooded the economy to finance the 2008 elections. Apart from this food and non-alcoholic beverages continued to drive up inflation.
Thursday, 22 May 2008
May be this might be an historic turning point for China, on its journey towards modernity and openness. I have never seen so many pictures on the media ever before from the ground china.
Tuesday, 20 May 2008
Sunday, 18 May 2008
Investors no longer have to wait for weeks for refund of their IPO application money.The application money earmarked for an IPO will now remain in the applicant’s bank account till the allotment is finalised, thus eliminating the refund process. This means that the money marked for the IPO will not be used for any other payment obligation during that period. At the same time, the applicant will enjoy the interest payable on the amount.This would also reduce the burden on registrars and merchant bankers. But bankers to the issue can no longer enjoy the floating interest. Most important of all, investors would not have to wait for their refund money. It also ensures that a liquidity crisis such as that of January 2008 does not occur again. At that time, many investors were unable to buy scrips which were at attractive lows, as their money was locked up in the Reliance Power and the Future Capital IPOs.
Still a lot of reform work is required in primary markets.
Wednesday, 14 May 2008
A couple of days earlier Shiv Sena's student's wing, Bharatiya Vidyarthi Sena (BVS), targeted establishments that still have Bombay in their names, including the city's prestigious school, Bombay Scottish, a Bombay Dyeing showroom and offices of The Times of India, whose city supplement is called Bombay Times.
Friday, 9 May 2008
Chennai-based Indian Overseas Bank is planning to sell its properties to self-promoted special purpose vehicle, thus realising the entire profit and then ploughing it back to its Tier-I capital. IOB will do a leaseback deal of properties that it had sold to the SPV.
According to the bank's estimates, the prices of its property has appreciated nearly 200 per cent over the last couple of years.
IOB has sought the approval of the finance ministry for implementing the idea, according to a top bank executive. If approved by the ministry, the government-owned bank's profit will soar by Rs 6 billion and the amount will be ploughed back to its Tier-I capital.
Banks are allowed to use 40 per cent of the rise in assets valuation to accrue to their Tier-II capital. In the current case, however, the bank will show the transaction as a sale and not revaluation. Hence the entire value of the property is accruable to its Tier-I capital.
The move followed a substantial depletion in the bank's capital adequacy ratio in the previous financial year as it had to comply with Basel-II norms. The capital adequacy ratio of the bank was 11.13 per cent as on March 31 compared with 13.27 per cent in the same period a year ago. The Tier-I capital stood at 7.31 per cent. The decrease in CAR of IOB has happened as Basel-II norms includes attaching higher weights to various risky assets.
So net net the bank would make profits virtually and make its balance sheet look healthier just by doing some paper work. Kudos, Ye hai India meri jaan.
Sources: Business Standard
Wednesday, 7 May 2008
Housing drought hits sales of multi-million pound homes in London as consumer confidence hits four-year low. Almost half of all consumers surveyed believe the economy will worsen further in six months time, twice as many people showing pessimism than a year ago.
Monday, 5 May 2008
Explaining the reason for rise in food prices to a Japanese-American who posed a question to Bush on this issue at a function in Maryland Heights in Missouri, the US President said: ''Just as an interesting thought for you, there are 350 million people in India who are classified as middle class. That's bigger than America. Their middle class is larger than our entire population.''Bush said: ''When you start getting wealth, you start demanding better nutrition and better food, and so demand is high, and that causes the price to go up.'' He, however, did not subscribe to the notion that ethanol is the main cost driver for the food prices going up. In fact, besides Bush and Rice, during the past one week, several similar statements have emanated from US leadership in which they have tended to attribute the rising food prices to the increase in food demand from India and China.
In response to such serious allegations, Chandrajit Banerjee, director general, CII, in the statement, "The entire issue of food prices needs to be seen in a global perspective and not just seen as an issue emanating from specific countries. There is a need for greater flow of global information on food production and consumption and cuts in food wastage."
Saturday, 3 May 2008
The Newbury-based group is the first mobile phone operator in the UK to offer the unlimited deal with all its monthly tariffs, although O2 currently offers an unlimited deal for its iPhone customers.
Vodafone hopes the new flat rate policy will fuel use of the internet on mobiles, as operators search for additional ways to generate revenue in a saturated market.
Earlier this year the group announced it was cutting 450 middle management jobs and hiring nearly 500 sales and retail staff as it attempts to increase its share of the competitive mobile internet and broadband market.
Take up of internet on mobiles has been hampered by complicated pricing structures which limit the amount of data you can download. Because few people know what a megabyte actually means in terms of internet usage, customers have been nervous about wracking up hefty bills through browsing.
The launch of the iPhone towards the end of last year saw a surge in mobile data traffic, with Google confirming in February it had received 50 times more searches from the iPhone than from any other mobile handset. Apple’s new 3G version of the iPhone, which could be launched as soon as next month, is expected to boost mobile internet use further as it will provide access to the faster 3G network.
Al Russell, head of mobile internet and content services at Vodafone, said: “Many people already have phones that can browse the internet so they don’t need to buy new ones. A lot of people are worried about how to use the internet on their phones. Our staff will put the phones in their hands and show them how to do it in two minutes. And they don’t have to worry about the cost.”
Vodafone, the world's largest mobile phone company by revenue, said internet access would be automatically bundled in with all its new pay plans for no extra charge, with prices starting from £25 per month. Until now customers had to buy an additional internet bundle for £7.50, with a cap of 120 megabytes per month.
However, Vodafone’s “unlimited” package does in fact have a limit: it is subject to a “fair usage policy” of 500 megabytes per month. Users will not be penalised if they overstep the limit but the company said excessive abusers would be contacted.
The top three internet sites on Vodafone Mobile Internet are Facebook, Google and the BBC, while the top three searches by customers are Facebook, Bebo and eBay.
With this new offer, clearly Vodafone is sending signals to the industry that it is ready to take up the competiton aggressively. Can this change the face of telecom industry. Whatever may be the outcome, customers, surely, are going to smile the way.