India's factory output falls for first time in 13 years

India's factory output fell for the first time in more than 13 years in October, further evidence of a rapid economic slowdown which could spark more monetary easing by the Reserve Bank of India (RBI) after aggressive weekend rate cuts.

Industrial output declined 0.4 percent in October from a year earlier, the first annual drop since data in the current series became available in April 1995, and sharply below the previous month's upwardly revised 5.5 percent.

The figure was below a forecast for growth of 2.2 percent in a Reuters poll of economists. Manufacturing production in Asia's third-largest economy fell 1.2 percent from a year earlier, data showed on Friday.

"It is a shocking figure and only underlines the fact that the Indian economy is in a very bad situation," said T.K. Bhaumik, economist at JK Industries Group. "This is a wake up call for the government."

Bhaumik called on the government to consider additional stimulus to that announced at the weekend and to use fiscal measures to lift consumer demand. Lending banks should move fast to pass on the RBI's recent rate cuts.

"Since the RBI has already done its job, now commercial banks should be fast to ease the credit line," he said referring to the Reserve Bank of India.

The Reserve Bank of India (RBI) Governor Duvvuri Subbarao has said India faces a period of painful adjustment after the global financial crisis froze credit markets in October, further weakening an economy struggling with high borrowing costs.

Subbarao said the bank's growth forecast for 2008/09 was likely to be cut from 7.5-8.0 percent. Many private economists expect it to dip below 7 percent.

The RBI cut its main rates by 1 percentage point on Saturday, lowering its key lending rate for the third time since October, and has indicated that it was ready to act again to bolster an economy slowing much faster than expected.

The government followed up with an additional $4 billion in additional spending to stimulate activity. The benchmark 10-year bond yield plunged to its lowest in more than four years after the data was published on increased expectations of further central bank action.

Industrial output rose 8.1 percent in the 2007/08 (April-March) fiscal year, compared with 11.6 percent in 2006/07.

Source: Agencies

Financial crisis hits mobile phone market

According to IDC, third quarter shipment growth drops to 3.2 percent The worldwide mobile phone industry felt the impact of the global financial crisis in the third quarter of 2008 (3Q08) as total handset shipments were down significantly over previous quarters.

Mobile phone manufacturers shipped a total of 299.0 million handsets in 3Q08, up 3.2 percent from last year, and down -0.4 percent over 2Q08. The third quarter of the year has historically been a ramp-up quarter as manufacturers load their sales channels with handsets in preparation for the holiday season, producing year-over-year growth rates as high as 20 percent as a result.

This year has not witnessed a similar ramp up, largely due to the current economic situation.
Ryan Reith, senior research analyst, IDC's Quarterly Mobile Phone Tracker, said: "Handset vendors felt the pressures of the dismal economy in the third quarter of 2008, and as a result, shipments and revenues were down almost across the board. There were two signs of hope from two major players during third quarter earnings. First, as highly anticipated and now confirmed, Apple reported an extremely successful quarter and noted it is on pace to surpass its initial 2008 shipment estimates. Second Nokia's CEO Olli-Pekka Kallasvuo announced a positive outlook for 2008 despite a tough third quarter. This offers reassurance to all industry players as Nokia has been a clear leader in the mobile phone space for quite some time."

Looking forward to the holiday season, mobile phone average selling prices have already begun to drop and marketing campaigns are ramping up, and competition for buyers will remain high as spending will be a concern to consumers. IDC expects tight economic conditions will make 2009 slower and more competitive as well.

Ramon T. Llamas, senior research analyst, IDC's Mobile Devices Technology and Trends, said: "While the overall mobile phone market registered small growth compared to last year, the market for converged mobile devices (commonly known as smartphones) posted strong gains. The worldwide release of the Apple iPhone 3G earlier this summer marked a major step not only for Apple, but also raised the profile of converged mobile devices as a whole."

"Add on top of that the attention generated by the Google-powered G1, and the converged mobile device suddenly finds itself as the device sought by both seasoned and first-time users," he adds.

Blogger.com named popular blog platform in UK

ComScore, Inc., a leader in measuring the digital world, released a study of blog visitation in the U.K. examining the top blog platforms and individual blogs as ranked by total U.K. visitors.
The report mentioned that in August, 14.5 million people in the U.K. visited at least one blog, representing 41 per cent of the total U.K. Internet audience.

"Blogs have become part of the essential fabric of the Internet today," said Herve Le Jouan, managing director, comScore Europe.

Jouan commented, "They live and breathe in real-time, helping quench media consumers' thirst for the most up-to-date breaking news, information, and analysis."

The Blog platforms provide publishing software, enabling bloggers to create and manage their own blogs, which are hosted on the parent site.

Google owned Blogger.com was reported as the most popular blog platform in the U.K. that attracted more than 9 million visitors, followed by WordPress with 4.8 million visitors and Six Apart sites with 2.7 million visitors.

In the individual blog section the gadget blog, Engadget.com was ranked as the top individual blog in August with 243,000 visitors and the Gizmodo.com that was ranked third with 223,000 visitors.

The reality TV blog UnrealityTV.co.uk (225,000 visitors), gamer blog Kotaku.com (210,000 visitors), and community blog Metafilter.com (207,000 visitors) was rounded out as top five.
Using the comScore segment metrix H/M/L service, which provides analysis of online activity by heavy, medium and light users of the Internet and specific site categories, we can gain insight into other interests of blog visitors.

The report stated that 142 per cent are heavy blog users who more likely than the average Internet user and are more often associated with blogging.

Spammers cash in on financial crisis

While experts predict potential losses of $2.8 trillion as a result of the world financial crisis, the spamming industry could end October on profit

The worldwide financial crisis sparked an increase in spam production following the collapse of some big names in global banking, says BitDefender researchers. As the world's stock markets crashed, spammers deployed a number of scams promoting services that claimed to eliminate or leverage debts, mortgages, and other fiscal or loan obligations.

For example, a large spam wave targeting US residents advertised the services of a company that allegedly offered to help stop home foreclosures. The message speculated the latest bailout plan announced by the US president.

Based on a template used before the recession, additional spam campaigns featuring financial ads gained significant volume during the month of October. Usually limited to a single body or subject line, the messages direct users through web links to various web sites, most of which were pushing phishing schemes.

Other spam waves used the economic crisis as a simple decoy for advertising drugs, pirated software or replicas. Finally, one of the most recent spam attempts relied on a multiple combination of automatically generated and distributed junk e-mails and social networking profiles directing the targeted recipients to web sites where they can "leave debt behind."
Vlad Valceanu, head, BitDefender's Antispam Research, said: "It is extremely important for computer users to be cautious about the emails they receive, as well as the advertisements they chose to click on. Spammers are using the current economic state and computer users' worries to their advantage by targeting spam campaigns towards those looking for not only more information about the recession but also those looking for how to better their current financial status."