In a setback to N. Srinivasan, chief of the Board of Control for Cricket in India (BCCI), the Supreme Court (SC) has named former skipper Sunil Gavaskar as the interim working president of the board to oversee the Indian Premier League (IPL). It put senior vice-president Shivlal Yadav in charge of all other BCCI duties. The arrangement will be for the duration of its investigation into betting and spot-fixing in IPL 6. Srinivasan, 69, had so far staved off demands to quit even after son-in-law Gurunath Meiyappan was alleged to have played a key role in the scandal. The SC, however, allowed Chennai Super Kings (CSK), owned by Srinivasan-owned India Cements, to participate in IPL 7.Cuppa CheerPopular talk show host Oprah Winfrey now has her own blend of tea called Oprah Chai. Created by her, in collaboration with tea experts at Starbucks and Teavana — bought over by the world’s largest coffee chain — the line will be sold in Starbucks and Teavana stores across the US and Canada from April 29.New BeginningFormer International Monetary Fund chief Dominique Strauss-Kahn, who fell from grace in 2011 amid accusations of sexual misconduct, is looking to raise $2 billion for a new hedge fund. Aimed at institutional investors and high net worth individuals, the fund has been set up by LSK & Partners, a financial firm founded by Kahn and banker Thierry Leyne. Kahn’s daughter Vanessa will head the fund’s research team.Heir Apparent?Named the non-executive chairman of News Corp and 21st Century Fox Inc, Lachlan Murdoch, son of billionaire Rupert Murdoch, will work alongside his father, who will stay chairman and chief executive officer of Fox and executive chairman of News Corp. The 42-year-old returns to a leadership role in his father’s business after running his own company for several years, and ranks higher than younger brother James, 41.No Mercy There’s no respite for Sahara chief Subrata Roy. Not just yet. Weeks after he was taken into custody on 4 March along with two other directors, the Supreme Court agreed to grant him conditional bail on payment of Rs 10,000 crore — half in cash and the rest as a bank guarantee, but Sahara couldn’t make the payment. It offered Rs 2,500 crore, but the court refused to relent. It also rejected Sahara’s earlier proposal to pay pay Rs 20,000 crore in five instalments by 31 March 2015 to investors.Office For Apple In his first public event as CEO of Microsoft, Satya Nadella unveiled Office software for Apple Inc’s iPad. Available as a free download, the Office apps — Excel, Word and PowerPoint — will require a subscription to Office 365 for editing and creating documents. The CEO also spoke about a new cloud-centric approach to computing.Still GuiltyFormer Goldman Sachs director Rajat Gupta, 65,has been sentenced to two years in prison after his bid to overturn his insider trading conviction on the ground that wiretap evidence shouldn’t have been used was rejected by a US court. Gupta was found guilty in June 2012 of leaking information about Goldman’s finances, including a crucial investment by Warren Buffett’s Berkshire Hathaway Inc, over the phone to Galleon Group hedge fund founder Raj Rajaratnam.Exit StrategyFang Fang, JP Morgan Chase & Co’s investment banking CEO for China, has resigned after a 12-year stint at the firm. The banker quit amid investigations into the bank’s hiring practices. He had emerged as a key figure for US authorities examining whether the bank violated laws by improperly hiring relatives of well-connected Chinese officials.(This story was published in BW | Businessworld Issue Dated 21-04-2014)
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Come elections and the merry-go-round begins. There are the inevitable turncoats who flee what they perceive to be a sinking ship. While the movements are in all directions, the BJP — and its allies — is attracting the most defectors. The Congress is facing the most attrition. Some defections are cases of MLAs crossing over in a bid to make it to the national stage. In Andhra Pradesh, the churn is due to the state’s bifurcationClick here to view graphicCompiled by Chitra Narayanan; Graphic by Prashant Chaudhary (This story was published in BW | Businessworld Issue Dated 21-04-2014)
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Few people in the central leadership of BJP could claim to have the ears of Prime Minister Narendra Modi. Arun Jaitley can.Jaitley (61) defended Modi vigrously when future appeared uncertain for the then Gujarat Chief Minister following 2002 riots and played a crucial rule in his rise to the top when voices of discontent, led by the likes L K Advani, grew louder.And it is also an evidence of Modi's faith in him that despite his loss in Lok Sabha elections, the legal luminary was always being seen as a certainty in the Modi cabinet for a high profile ministry.More of a strategist than a grassroots politician, Jaitley was a key helmsman in the party's 2014 campaign, now being recognised for its brilliance by even opponents, and was its key voice as the Modi juggernaut rolled on.Through his blogposts, he keenly defended the personalised electioneering around Modi when other veterans like Sushma Swaraj, Murli Manohar Joshi besides Advani seemed to demur and even took gentle swipes at party leaders, including Sushma, when they disapproved of inclusion of tainted leaders like B S Yeddyurappa.His detractors, though, would say his adroit political calculations were of not much personal help. He chose to fight his maiden Lok Sabha election from Amritsar and lost to Congress bigwig Amarinder Singh.In the first BJP government under Atal Bihari Vajpayee, Jaitley was appointed Minister of State for Information and Broadcasting (Independent Charge) and later headed Disinvestment ministry (Independent Charge), a new Ministry created for to give effect to the policy of disinvestments.He was the first Minister of Shipping following the bifurcation of the Ministry of Surface Transport and later headed Law & Justice where he gave shape to the policy of judicial reforms.Seen as an articulate face of the party who is as much at ease in advocating market reforms as defending the traditional, at times orthodox, world view of the larger Sangh parivar, the senior Supreme Court lawyer at heart is a modernist who shares Modi's dictum of "minimum government, maximum governance".Coming from a Punjabi Brahmin family with little political background, Jaitley chose the RSS' student body, ABVP, to plunge into politics as a student leader in 70s and became the Delhi University students union president in 1974.He joined headlong into the anti-corruption movement kicked off by Jayaprakash Narayan which had led to the proclamation of Emergency by the then Indira Gandhi government. He was under detention for close to two years and joined Jan Sangh, the precursor to BJP, soonafter.Jaitley remained active in the party, which remained a fledgling outfit for much of the 80s, but also paid attention to his legal career where he shone.Whether as a party spokesperson or organisation man entrusted with assembly election, Jaitley tasted success.Not only the 2014 Lok Sabha polls, in Jaitley helped Modi win the Gujarat Assembly elections in 2002 with a landslide mandate. He also orchestrated Modi's 2007 campaign to help BJP return him to power.The victory in 2007 showed that 2002 win was not a fluke and gave wings to Modi's national ambition. As Modi begins playing his prime ministerial innings, Jaitley is likely to be one of his most trusted counsellors.(PTI)
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Healthy output of electricity, coal and crude oil has helped in pushing the core sector growth to 4.5 per cent in February from 1.3 per cent in the same month a year ago. The Index of eight core industries grew 1.6 per cent in January this year. The eight core industries -- fertilisers, cement, steel, electricity, crude oil, coal, petroleum refinery products and natural gas -- have a combined weight of about 38 per cent in the Index of Industrial Production. However, the core sector growth was slowed down to 2.6 per cent during the April-February period of this financial year compared with 6.4 per cent in the same period of 2012-13. Electricity generation grew exponentially by 10.4 per cent in the month under review as against (-) 3.7 per cent in February 2013. Output of coal and crude oil registered a growth of 0.1 per cent and 1.9 per cent against (-) 6.1 per cent and (-) 4 per cent, respectively. Steel production recorded a marginal growth of 4.8 per cent, while the expansion in cement production slowed to 2.3 per cent. Natural gas registered a negative growth of 4.4 per cent and refinery products generation expanded 3.2 per cent. Showing a ray of hope, industrial output entered positive territory and recorded a 0.1 per cent growth in January after contracting for three months in a row.(Agencies)
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A task force of US regulators is working on the first bitcoin rule-book, the group’s head said, hoping to protect users of the virtual currency from fraud without smothering the fledgling technology. Numerous companies in the US enable customers to pay for goods and services in virtual currencies. But since bitcoins are not regulated by the federal government, users face a maze of rules across the 50 states. The task force is looking at some model definitions, or model laws or regulations, with a likely recommendation to either the Federal Reserve or the Congress, said David Cotney, Massachusetts’ commissioner of banks. He was appointed to head the new Emerging Payments Task Force, a group of nine members of the Conference of State Bank Supervisors. He said the force has been given roughly a year to complete the task.Guilty As ChargedCredit Suisse agreed to pay $2.6 billion in penalties and pleaded guilty to helping Americans cheat on their taxes, making it the first global bank in a decade to admit to a crime in a US courtroom. The plea also signals a tougher posture by the Justice Department, which has faced criticism that it avoided pursuing large banks after the 2008 financial crisis because of the economic fallout. The bank will pay $1.8 billion to the US, which includes almost $670 million in restitution to the Internal Revenue Service. The penalty also involves a $715-million payment to NY’s Department of Financial Services and $100 million to the Federal Reserve.Smart SettlementApple and Google’s Motorola Mobility unit have agreed to settle all patent litigation between them over smartphones, ending one of the highest-profile lawsuits in the world of technology. In a joint statement, the companies said the settlement does not include a cross licence to their respective patents. Apple and Google have also agreed to work together in some areas of patent reform, the statement said. Google and Apple informed a federal appeals court in Washington that their cases against each other should be dismissed. However, the deal does not apply to Apple’s litigation against Samsung Electronics.Direct ConnectionAT&T plans to pay $48.5 billion to buy DirecTV, in the latest sign that the wireless industry and the US television market are set to converge as customers consume more video on their mobile devices. The deal highlights AT&T’s pressing need for fresh avenues of growth beyond the maturing US cellular business, which has become increasingly competitive. The buy will beef up Dallas-based AT&T’s package of cellular, broadband, TV and fixed-line phone services. For DirecTV, the deal will enable it to offer broadband Internet for the first time to US customers, filling in a gap that had made it vulnerable to cable rivals. AT&T and DirecTV made the announcement just a few months after Comcast offered $45 billion for Time Warner Cable, a transaction that is set to create the leading US cable and broadband Internet powerhouse. The Comcast proposal is now awaiting regulatory approval.Pressure PointThe EU is considering raising the pressure on the US in the world’s largest trade dispute by challenging $8.7 billion in tax breaks that encouraged planemaker Boeing to keep production of its latest jet in Washington state, people familiar with the matter said. The recent move is expected to open a tense new phase in the decade-old formal trade dispute over aircraft industry aid, as Brussels and Washington argue about whether they have complied with rulings by the WTO, which in turn could set the tone for sanctions. Both the EU and US claimed victory when the WTO ruled between 2010 and 2012 against billions of dollars of support for Boeing and European rival Airbus, in a pair of cases spanning thousands of pages but lacking a final resolution.Betting BigGermany’s biggest lender, Deutsche Bank, plans to raise about €8 billion in new capital by selling shares. The bank plans to raise about €6.3 billion in a fully underwritten rights offer, and an additional €1.75 billion from the sale of a stake to an investment vehicle of the Qatar royal family. The capital raised will enable the bank to substantially increase its capital ratio, provide a buffer for future regulatory requirements and support targeted business growth. The bank is shrinking assets to bolster its finances ahead of a European Central Bank stress test this year.Hitting A BumpSwiss voters have rejected a proposal to create what would have been the world’s highest minimum wage after siding with the government and business leaders in a referendum. The plan, which would have pushed up the basic annual salary for a 35-hour week to £27,000, was rejected by 75 per cent of voters. It would have required employers to pay workers a minimum of £14.66 an hour. Government ministers opposed the proposal arguing that it would put smaller companies out of business.Deal SealedRussia’s $400 billion deal to supply natural gas to China after more than a decade of negotiations is tilting the world’s largest energy exporter towards Asia as ties worsen with the US and Europe. Russian President Vladimir Putin is turning eastward as sanctions imposed by the US and the EU because of the standoff over Ukraine batter the Russian economy. The increasing alienation makes trade with China, the country’s largest trading partner after the two-way volume surged sevenfold in the past decade to about $94 billion last year, even more important.Caught In CrossfireVisa and MasterCard have about six weeks to decide whether a new Russian law requiring them to pay hundreds of millions of dollars to operate in the country is worth the cost. Visa CEO Charlie Scharf and MasterCard CEO Ajay Banga said they’re talking to Russian lawmakers about making changes to the legislation, passed in response to sanctions the US imposed to protest Russia’s role in Ukraine’s turmoil. At stake is about $638 million in combined annual revenue for the two payment networks as well their foothold in a market that’s shifting from cash to electronic forms of payment. US threats of even more sanctions loom over the discussions.Higher ReturnsPrime Minister Shinzo Abe is moving to shake up oversight of the world’s largest pension fund, expanding the board and giving it new powers to shift out of Japanese government bonds and into higher-yielding assets, according to two people with direct knowledge of the matter. Officials are considering a proposal to add two or three dedicated professional advisors to the committee that oversees investment at the $1.26-trillion Government Pension Investment Fund.(This story was published in BW | Businessworld Issue Dated 16-06-2014)
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Stock markets ended financial year 2013-14 in a grand fashion with the BSE benchmark Sensex and NSE Nifty moving up to all-time high levels for the sixth day in succession on Monday (31 March). The indices, however, fell from their peak intra-day positions on profit-booking. The 30-share BSE Sensex rose to historic high of 22,467.21 points in a day marked by high volatility. The key barometer finally settled at 22,386.27 points-- setting a fresh closing record for the fourth straight day-- 46.30 points or 0.21 per cent higher than its previous close. The 50-share Nifty recorded its lifetime closing high of 6,704.20, up by 8.30 points from its previous close. It jumped to 6,730.05, all-time intra-trade record high. With foreign fund flows continuing relentlessly, the indices have been setting record life-time high for six days in succession. Brokers attributed the rally to investor hopes of a stable government after elections and signs of economy returning to high growth path. The Sensex has gained 1,266.15 points in March this year, the best monthly gain since October. For the full fiscal, the key index has witnessed a rise of 3,550.50 points, an increase of 18.8 per cent from closing level on March 28 last year. Expectations that the Reserve Bank of India (RBI) in its annual monetary policy tomorrow will keep the key rates unchanged also buoyed the market sentiment. Metal stocks were at the forefront of the rally. Brokers said metal stocks attracted buying on hopes that China will take steps to stimulate sagging economy. The communist country is the world's largest consumer of copper and aluminium. Hindalco zoomed 8.71 per cent to end the day as the best Sensex gainer of the day. Tata Steel was the next best 3.40 per cent, while SSLT gained 2.76 per cent. "Markets seem to be in a bullish mood and very optimistic of the upcoming RBI policy," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio. With the inflation and IIP numbers coming under manageable levels, markets are certainly expecting some positive news from RBI policy revies, he added. Other major gainers were Maruti Suzuki at 2.04 per cent, Sun Pharma 1.75 per cent, RIL 1.68 per cent, M&M 1.39 per cent, HDFC 1.20 per cent, Bajaj Auto 1.09 per cent, TCS 1.08 per cent and Hero MotoCorp 1.06 per cent. Of 30-share Sensex, 18 scrips out closed higher while others finished lower. ONGC dropped by 2.91 per cent, Dr Reddy's Lab 2.15 per cent, Tata Power 1.85 per cent, ITC 1.69 per cent, Wipro 1.61 per cent, Gail India 1.35 per cent, BHEL 1.25 per cent, L&T 1.21 per cent and ICICI Bank 1.06 per cent. Among the S&P BSE sectoral indices, metal rose by 3.87 per cent, followed by realty 2.83 per cent, consumer durables 2.62 per cent and auto 1.05 per cent, while power declined by 0.60 per cent and FMCG 0.64 per cent. The market breadth remained positive as 1,706 stocks ended in the green, 1,024 stocks finished in the red while 149 ruled steady. Second-line shares attracted good buying interest by retail investors and outperformed the Sensex. The BSE-Smallcap and Midcap indices closed up by 1.04 per cent each. Meanwhile, foreign institutional investors (FIIs) bought shares worth a net Rs 1,362.87 crore on last Friday, as per provisional data from stock exchanges. Asian stocks, excepting China, closed higher on hopes that China will take steps to stimulate its economy. Key benchmark indices in Hong Kong, Singapore, Japan and Taiwan finised up between 0.23 0.90 per cent. China closed down by 0.41 per cent. European markets were trading mixed with upward bias in late morning today on hopes of slowdown in inflation in the region. The FTSE was up by 0.62 per cent, the DAX by 0.05 per cent while the CAC was down by 0.04 per cent.(Agencies)
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Railways on Monday (26 May) ordered an inquiry into the Gorakhdham train mishap in Uttar Pradesh and announced compensation for the next of the kin of those killed and the injured."An inquiry has been ordered into the incident," Chairman Railway Board Arunendra Kumar told PTI, adding, the exact cause of the accident is yet to be ascertained.The inquiry would be conducted by the Commissioner of Railway Safety, North East Circle, P K Bajpayee, who will be visiting the accident site.At least 20 passengers were feared killed as the Gorakhdham Express rammed into a stationary freight train in the district.The incident occurred on Monday (26 May) morning when the express train came on the same track as the freight train near Chureb Railway Station, District Magistrate Bharat Lal said.However, NE Railway's CPRO Alok Singh said the accident was caused due to derailment.Lal said around 20 people are feared killed in the accident that completely damaged the first bogey of the train.Railways have declared a compensation of Rs one lakh for the next of the kin of those killed and Rs 50,000 for those with grievous injuries and Rs 10,000 for passengers with simple injuries.Kumar said that nine people have died in the mishap and over 82 have been injured.He said Member (Engineering) V K Gupta, Member (Mechanical) Alok Johri and Director General of Railway Health Services R Prashad have rushed to the accident site.Rail traffic between Delhi and Gorakhpur has been affected and a number of trains have been diverted through other routes, railway officials said.Emergency helpline numbers in Delhi and Gorakhpur have been activated, they said.(Agenicies)
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Stepping into a whole new arena, the US Internal Revenue Service (IRS) said bitcoins and other virtual currencies are to be treated, for tax purposes, as property and not as currency. “General tax principles that apply to property transactions apply to transactions using virtual currency,” said the IRS statement, meaning bitcoins will be taxed as ordinary income or as assets subject to capital gains taxes, depending on the circumstances. The IRS also said bitcoin ‘miners’, who unlock new bitcoins online, must include the fair market value of the virtual currency as gross income on the date of receipt. The IRS announcement comes as a disincentive to miners who will now have to include in their bitcoin income the fair market value of the virtual currency on the date they mined it.Pyrrhic VictoryFour years ago, JPMorgan commodity chief Blythe Masters had laid out an ambitious plan to become the top Wall Street bank in energy and metals trading. Last year, Masters achieved that goal, according to a recent report, the day after the bank announced the sale of the giant physical commodities operation she had assembled. UK analytics firm Coalition’s annual sector league table showed JPMorgan had the largest revenues of any investment bank in commodities last year, leapfrogging the previous year’s winner Goldman Sachs, which came in second ahead of Morgan Stanley. For Masters, it is something of a pyrrhic victory, with the rump of the business she built now going to Swiss commodities trader Mercuria in a $3.5-billion deal. The tables ranked BNP Paribas, Barclays and Deutsche Bank as the second tier of commodity banks.Evening ScoreBank of America (BoA) has agreed to pay $9.3 billion to settle claims that it sold Fannie Mae and Freddie Mac faulty mortgage bonds, bringing to an end one of the largest legal headaches the bank faced since the financial crisis. BoA was accused of misrepresenting the quality of loans underlying residential mortgage-backed securities purchased by the two mortgage finance companies between 2005 and 2007. BoA’s first-quarter profits could take a substantial hit from the deal.Minor HitchA US federal judge has dismissed a proposed class action lawsuit against Facebook that had accused the company of misappropriating the names and likenesses of minors who use the social network. At issue was Facebook’s use of minors’ names and photos in targeted advertising in a case that highlighted privacy concerns. The lawsuit, originally filed in Illinois in 2011, had sought to represent all minors that used Facebook and had their names used in an ad. The judge ruled that the minors gave their consent when they signed up for Facebook under a “statement of rights and responsibilities” that governs the site.Value AdditionOnline home-rental marketplace Airbnb is said to be in advanced talks with private equity firms, including TPG Capital Management, to raise funds that will value the firm at around $10 billion. TPG is likely to lead the funding round, which could exceed $400 million, according to a US-based newspaper. A valuation of $10 billion would make Airbnb worth more than Hyatt Hotels, which has a market value of $8.43 billion, and Wyndham Worldwide, valued at $9.39 billion.Out Of The WorldThe Hasselblad 500, a camera that was part of the equipment carried by the 1971 Apollo 15 mission, was sold for €550,000, according to Vienna auctioneers Galerie Westlicht. The gallery initially described the Hasselblad as the only camera ever brought back from the moon but later said it was one of several, after some experts questioned that claim. Galerie Westlicht identified the new owner as Japanese businessman Terukazu Fujisawa, owner of an electronics chain. The bidding had started at €80,000.Gender BenderMore women are sitting on the boards of Britain’s biggest companies but the glass ceiling is yet to crack, with most top jobs still held by men and companies needing to do more for gender balance, a report by former trade minister Mervyn Davies showed. The latest of three British government reports on gender in boardrooms found women now hold a fifth, or 20.7 per cent, of board positions in FTSE 100 companies, up from 17.3 per cent in April 2013 and 12.5 per cent in 2011, but well short of a 2015 target of 25 per cent.Lend A HandThe European Central Bank (ECB) could buy loans and other assets from banks to help support the euro zone economy, Germany’s Deutsche Bundesbank said, marking a radical softening of its stance on the contested policy of quantitative easing (QE). The ECB has cut interest rates to a record low and promised to keep them low for some time, having also flooded the banking system with cheap crisis loans. But the euro zone economy is still weak and inflation remains stuck well below ECB’s target, thus opening the door to one of the most divisive policy options — QE.Anxiety RunIndicative of the growing nervousness among the Chinese about the impact of slowing economic growth on financial institutions, on 25 March, hundreds of people rushed to withdraw money from the branches of two small Chinese banks after rumours spread about the solvency of one of them. This reflects the anxiety among investors as regulators signal greater tolerance for credit defaults. This case highlights the urgency of plans to put in place a deposit insurance system to protect investors against bank insolvency. Regulators have said they will roll out deposit insurance as soon as possible.Powering AheadHonda Motor and Toyota Motor plan to launch fuel-cell vehicles in the consumer market in 2015, with each producing around 1,000 eco-friendly cars a year, according to a report in a Japanese newspaper. The automakers now offer fuel-cell cars on lease, with users centering on municipalities and businesses. Initial prices of these zero-emission vehicles, which cover longer distances than electric cars, will be set below 10 million yen ($97,700). Honda is developing a sedan that it plans to roll out as early as November 2015, which will be able to travel about 500 km on a single charge — twice the range of an electric vehicle; while Toyota, the global leader in hybrid vehicles, intends to release a sedan in Japan, the US and Europe in 2015, and by 2020, the automaker intends to lift annual output to tens of thousands of units.(This story was published in BW | Businessworld Issue Dated 21-04-2014)
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