Congress president Sonia Gandhi was ranked 21st among the world's most powerful people by Forbes magazine, making her the third most influential of women leaders included in the list.German Chancellor Angela Merkel and Brazilian President Dilma Rousseff were the only women who figured ahead of the 66-year-old Gandhi in the list of 72 politicians, heads of state and business leaders. Gandhi was also ahead of Prime Minister Manmohan Singh, who came in seven slots below her.In a separate list of the world's 100 most powerful women, Forbes ranked Gandhi in the ninth position."As president of the Indian National Congress, Gandhi heads the ruling political party of the world's second largest population," read her brief profile on the Forbes website."Rumours persist of a rift between her and soft-spoken Prime Minister Manmohan Singh, with many expecting Singh to leave office before the 2014 general elections," it said.The profile noted that Rahul, described as the "heir apparent in the nation's most famous political dynasty", had recently "snubbed Singh publicly".Singh's profile noted that the 81-year-old Prime Minister was "credited with shaping India's economic and social welfare reforms". But it also said his "quiet intellectualism renders him a timid public figure".Rahul's recent criticism of Singh over an ordinance to protect convicted lawmakers was "indicative of Singh's diminishing coterie; rumour has it he will soon resign", the profile said. Soon after the criticism, Rahul had acted to mend fences with Singh. The Forbes list was topped by Russian President Vladimir Putin, who was followed in second position by US President Barack Obama."This year the votes for the World's Most Powerful went to Russian President Vladimir Putin. He climbs one spot ahead of US President Barack Obama, who held the title in 2012," the magazine said."Putin has solidified his control over Russia while Obama's lame duck period has seemingly set in earlier than usual for a two-term president ? latest example: the government shutdown mess." The most powerful people list is an "annual snapshot of the heads of state, financiers, philanthropists and entrepreneurs who truly rule the world", Forbes said.This year's list features 17 heads of state who run countries with a combined GDP of $48 trillion and 27 CEOs and business leaders who control over $3 trillion in annual revenues.(PTI)
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DLF, India's top real estate developer, posted a 27 per cent fall in its consolidated net profit for the July-September quarter, hit by slowing home sales in Asia's third-largest economy."In the current economic and high interest rate environment, the company expects a slow absorption of product in the market," DLF said in a statement to the exchange.The New Delhi-based developer, founded by billionaire K.P. Singh, said net profit for he fiscal second quarter was Rs 100 crore compared with Rs 138 crore a year earlier. The profit fell short of analyst expectations of Rs 140 crore, according to Thomson Reuters I/B/E/S. Total revenue was Rs 1,956 crore, down from Rs 2,040 crore posted during the same period last year.On 30 October, Oberoi Realty, India's second-largest developer by market value, posted a 48 per cent fall in net profit for the September quarter - its worst quarterly profit decline in nearly two years - hit by a drop in sales.(Reuters)
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Tightening external funding conditions will likely weigh on growth in emerging Asia, although weaker currencies and robust domestic demand may offset some of the pain, the International Monetary Fund's top official for Asia said."A faster than expected tightening of global funding conditions could substantially affect Asia, with a larger impact on economies with weaker fundamentals and higher exposures," IMF Asia-Pacific Department Director Anoop Singh said in a round-table session in Tokyo on the region's economic outlook.Singh said countries like India and Indonesia, which are reliant on foreign capital inflows and already experiencing elevated inflationary pressures, will likely need to tighten monetary policy further."India would need to take the steps that need to be taken to bring inflation down," Singh said after the Reserve of India's decision on Tuesday to tighten monetary policy."It doesn't only have to count on monetary policy," he said. "It's important that supply measures taken ... the government is trying to act on both fronts."On Japan, he said the government's decision to raise the sales tax to 8 per cent from 5 per cent next April has been a right move and must be followed by the second stage of tax increase in late 2015 that will bring the rate to 10 per cent."As a next step, the government should outline a more specific fiscal plan" on how to achieve its goal of slashing the country's public debt-to-GDP ratio by 2020, he said.In its latest forecasts issued this month, the IMF expects emerging Asian growth of 6.3 per cent this year followed by 6.5 per cent next year, both lower than estimates made in April. (Reuters)
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Buoyed by a border defence pact signed during Prime Minister Manmohan Singh's visit, China has said it was "inevitable" to have some kind of incidents along the boundary but it was important that both sides worked together to solve them.Problems can occur even if there is fence between two houses but at the same time there was not a single incident of firing along the Line of Actual Control (LAC) between India and China, Huang Xilian, Counsellor in the Chinese Foreign Ministry said.Compared to some borders in the world, the Sino-Indian border is peaceful, he told visiting and resident Indian journalists here at a briefing on Singh's "successful" last week visit during which the two countries signed the Border Defence Cooperation Agreement (BDCA)."Sometimes it is inevitable to have some kind of incidents along the border but what is important is that both sides together worked to solve it," he said replying to a question on whether the pact can avert incidents like in the Depsang valley in Ladakh this year in which Chinese troops pitched their tents inside Indian territory."Hyping up this issue will not help. So long both sides have intention and some mechanism as guarantor, we should be confident," Huang said.Before this agreement the border was peaceful and the BDCA is further guarantor of the peace tranquillity, he said, adding that "we should be more confident after signing this".Asked whether China was disappointed that an agreement on visa liberalisation did not materialise during Singh's visit, Huang said the two countries held talks on this issue for sometime to facilitate exchange of visits."We should always be optimistic about future" as both countries are moving forward, he said.The visa agreement was left out as India strongly opposed China's stapled visa policy. China continues to issue visas on paper to residents of Arunachal Pradesh, which it claims as Southern Tibet.Terming Singh's visit as highly successful, Huang said the rare gesture by Chinese Premier Li Keqiang of taking Singh for walk along the historic Forbidden city, home for generations of Chinese rulers was to symbolically connect the ancient civilisations of India and China together.(PTI)
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India will ask Reliance Industries Ltd to relinquish 80 per cent of its east coast deepwater D6 gas block, including five discoveries, as the energy major has not adhered to timelines for developing the area, the oil secretary said."We are waiting for the oil minister's final order," Vivek Rae told Reuters on Tuesday, referring to the instruction telling Reliance to relinquish the discoveries in the 7,645 square kilometre D6 block.The five discoveries within D6 are D4, D7, D8, D16 and D23. Rae said Reliance failed to submit reports on the commercial viability the five discoveries on time.He said the relinquished area will be auctioned in subsequent licensing rounds. The relinquished area does not contain any producing fields.Total reserves in these five discoveries in the Krishna Godavari basin are estimated to be 805 billion cubic feet, two sources with direct knowledge of the matter said. The sources declined to be named due to the sensitivity of the issue.No decision has yet been taken on the fate of the remaining three fields in the D6 block -- D29, D30 and D31 -- which are estimated to hold about 350 billion cubic feet of gas reserves, Rae said.He said Reliance had submitted commerciality declarations of the three discoveries on time but had not carried out the necessary tests.A Reliance Industries spokesman declined to comment.Natural gas output from the Krishna Godavari basin's D6 block, in which BP <BP.L> has a 30 percent equity stake, has declined to 14 million cubic metres per day (mmscmd) from 60 mmscmd at the end of 2010.The companies have cited geological complexities for the fall in output, which has been in steady decline since 2010, while the oil regulator believes they failed to drill enough wells.(Reuters)
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India’s fastest-growing states have seen the wealth of their citizens grow, but still have a long way to go when it comes to social development parametersCompiled by Team BW Graphic by Prashant Chaudhary Click here to view graphic(This story was published in BW | Businessworld Issue Dated 18-11-2013)
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The Reserve Bank of India plans to soon launch a 10-year savings instrument that will offer inflation-linked returns to small investors as an alternative to investing in gold."It is proposed to launch Inflation Indexed National Saving Securities (IINSSs) for retail investors in November/December 2013 in consultation with the government," the RBI said today in its Second Quarter Review of Monetary Policy 2013-14.The inflation-indexed securities for retail investors will be linked to the new (combined) consumer price index (CPI). The interest on these securities would comprise of a fixed rate plus inflation."Interest would be compounded half-yearly and paid cumulatively at redemption. These securities will be distributed through banks to reach out to the masses," the RBI said.Eligible investors would consist of individuals, Hindu undivided families, trusts and charitable institutions.The Union Budget for 2013-14 had proposed introducing instruments that would protect savings from inflation and provide an alternative to gold as an investment avenue for individuals.Both the government and the RBI have imposed a host of restrictions on the import of gold, one of the major reasons for the record high current account deficit in the previous financial year.In another decision, the RBI allowed banks to pay interest on savings and term deposits at shorter-than-quarterly intervals. Banks are currently required to pay interest on such deposits at quarterly or longer intervals. (Reuters)
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Compiled by Joe C. MathewGraphic by Prashant Chaudhary(This story was published in BW | Businessworld Issue Dated 18-11-2013)
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The rupee edged down on Monday, 28 October, a day before the Reserve Bank of India (RBI) policy review when it is widely expected to raise interest rates to fight inflationary pressures even as the economy grows at its slowest in a decade.The RBI's macroeconomic report released after the close of markets said upside risks to food inflation remain and that it expects the retail and wholesale price inflation to remain above comfort levels.Expectations for a rate hike have grown after data earlier this month showed that both retail and wholesale inflation accelerated, and markets are likely to scrutinise whether the central bank hints on Tuesday at more rate hikes.Meanwhile, the RBI is also expected to continue cutting short-term interest rates, removing measures put in place to support the rupee."The market will be very cautious until the policy outcome. I expect ranged trading between 61.25 to 61.75 to continue depending on the global situation," said Hari Chandramgethen, head of forex trading at South Indian Bank.Global factors will be a factor ahead of the U.S. Federal Reserve's policy meeting ending on Wednesday.The partially convertible rupee closed at 61.52/53 per dollar compared with 61.46/47 on Friday.Weakness in shares also hurt the rupee. The BSE index marked its lowest close in nearly 1-1/2 weeks, as lenders and other interest rate-sensitive shares declined a day before RBI's policy review.In the offshore non-deliverable forwards, the one-month contract was at 61.97, while the three-month was at 62.95.In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed around 61.51 with a total traded volume of $1.9 billion.(Reuters)
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US employers added far fewer workers than expected in September, suggesting a loss of momentum in the economy that will likely add to the Federal Reserve’s caution in deciding when to trim its monthly bond purchases. Non-farm payrolls increased by 148,000 workers in September, the Labour Department said. Its report suggested the economy lost steam even before the damaging 16-day partial shutdown of the government. “The numbers indicate that the economy is growing at a modest pace at best,” said an economist. After the shutdown, “tapering (of the Fed’s bond purchases) has been postponed until further notice”. But there was a silver lining too. The unemployment rate fell a tenth of a percentage point to 7.2 per cent, the lowest level since November 2008. Economists had expected the economy to add 180,000 jobs in September and the unemployment rate to hold at 7.3 per cent.Tax NegotiationsJPMorgan Chase’s preliminary $13-billion mortgage settlement with the US government could end up costing the bank closer to $9 billion after taxes, because the majority of the deal is expected to be tax deductible, sources said. The deduction also means the government is getting less than it appears in this deal. Banks can often deduct legal settlements from their taxes, but cannot get tax benefits on penalties for violating laws. The two parties have been negotiating the tax treatment of the settlement, and the deal is expected to include a $2-billion penalty.CredweetTwitter has obtained a $1 billion credit line ahead of its initial public offering (IPO), the company disclosed in an amended investor prospectus. Goldman Sachs, Morgan Stanley, JPMorgan, Bank of America Merrill Lynch and Deutsche Bank were reportedly involved in arranging the deal. The banks are also underwriters of Twitter’s IPO. No amounts have been drawn under the credit facility, Twitter said. The micro-blogging company, the most closely watched social media IPO prospect since Facebook went public last year, is expected to begin trading on the New York Stock Exchange by mid-November. Twitter also disclosed that MoPub, a digital advertising exchange it acquired in September, had lost $2.8 million in the first six months of the year on $6.5 million in revenues. Twitter paid $350 million in stock for MoPub, its largest acquisition to date. The deal is expected to close in November.Tax NegotiationsJPMorgan Chase’s preliminary $13-billion mortgage settlement with the US government could end up costing the bank closer to $9 billion after taxes, because the majority of the deal is expected to be tax deductible, sources said. The deduction also means the government is getting less than it appears in this deal. Banks can often deduct legal settlements from their taxes, but cannot get tax benefits on penalties for violating laws. The two parties have been negotiating the tax treatment of the settlement, and the deal is expected to include a $2-billion penalty.Free FlowStartups looking for backing will be able to solicit small investments over the Internet from the general public under a new proposal unveiled by the Securities and Exchange Commission (SEC). The “crowdfunding” plan is now a requirement in a 2012 law that relaxes regulations to help spur small business growth. Private firms are now only allowed to solicit investors deemed to be ‘accredited’, meaning they have a net worth of $1 million. The rule would let small businesses raise more than $1 million a year by tapping unaccredited investors.Trade TalksThe European Union (EU) finally agreed to start talks with China to remove restrictions on foreign investment and set clearer rules for doing business after months of trade disputes over Chinese solar panels and EU wines. The decision by trade ministers from the bloc’s 28 member states has been made with the aim of sealing an investment agreement in the next few years. The EU wants greater access to China and the removal of restrictions on investment in certain sectors, notably in services such as banking, or the requirement to work with a Chinese joint venture partner.Glass WorksCorning Inc said it would buy out Samsung Display’s stake in their LCD glass joint venture in a deal that could see the Samsung Electronics subsidiary taking a 7.4 per cent share in the Gorilla Glass maker. The deal includes a new 10-year LCD display glass supply agreement that will add about $2 billion to Corning’s sales. Samsung will receive convertible preferred shares with a face value of $1.9 billion and will make an additional $400 million investment in Corning.On HoldHTC Corp has halted at least one of its four main manufacturing lines, accounting for at least a fifth of total capacity, and is outsourcing production as a sales slump puts pressure on its cash flow, according to sources. HTC launched its latest version of the flagship One series this year but has struggled to gain traction in a market dominated by Apple and Samsung. The firm reported its first ever quarterly loss in October.Getting CompetitiveApple recently offered free upgrades for life on its operating system (OS) and business software, and unveiled a 1-pound iPad Air and a MacBook Pro with sharper ‘retina’ display ahead of the holiday shopping season. This repeats a pattern of recent launches with improvements rather than totally new products. Apple said upgrades to its Mac OS and iWork software suite, which compete with Microsoft’s Excel, Word, etc., will now be offered for all MacBooks and Mac computers. That brings Apple’s model of free system software upgrades on phones and tablets to the PC market, where it’s still the underdog to MS’s Windows.LawspeakGermany retained key veto power at carmaker Volkswagen (VW) after the EU Court of Justice (ECJ) turned down the European Commission’s bid to abolish its “VW law”. This leaves the state of Lower Saxony, where Volkswagen is based, with the power to block takeovers and other key decisions such as factory closures. According to a 1960 law, Lower Saxony has a de facto golden share in VW. Under German rules, shareholders need at least 25 per cent to hold a blocking minority, but the VW law gave Lower Saxony, with just 20 per cent in VW, this right. Sports car maker Porsche found the VW law a barrier when it sought to take over VW in 2008. Porsche’s bid floundered and it was soon bought by VW last year.Tough TestThe European Central Bank (ECB) recently vowed to submit the euro zone’s top banks to a comprehensive batch of tests next year, staking its credibility on a review that aims to build confidence in the sector. It wants to unearth potential risks hidden in balance sheets before supervision is centralised under its roof from November 2014. This will form part of a European banking union drawn up in response to a debt crisis exacerbated by massive bad property loans in countries like Ireland and Spain. Setting out its plans to scrutinise the 128 top lenders, ECB said it would use tougher new measures set out by Europe’s top regulator — the European Banking Authority — in the asset quality review it will conduct next year.(This story was published in BW | Businessworld Issue Dated 18-11-2013)
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