In their efforts to tackle the global economic crisis, the rescue packages announced by the governments across the world has crossed 10 trillion-dollar mark (about Rs 50,00,000 crore) -- an amount equivalent to nearly 10 times the total size of Indian economy.
The amount is believed to grow even bigger with the turmoil still being in expansion mode.
A lion's share of about three-fourth of the worldwide bailout package of about 10.1 trillion dollar has come from the world's biggest economy, the US, whose total national debt has also incidentally crossed the 10 trillion-dollar mark.
The size of the entire Indian economy, where the impact of global crisis has been relatively less disastrous, pales at about one trillion dollar.
These bailouts, which have been prevalent in both developed and developing worlds due to the financial turmoil that turned severe after the fall of Lehman Brothers, have come in various forms of financial stimulus by the governments across the world -- be it putting in fresh money into a crisis-ridden institution, bringing them under the government's fold or other fiscal measures.
America set the ball rolling for such packages, with the world's largest economy announcing 700 billion-dollar plan primarily to shore up the fortunes of the country's battered financial institutions. Taking into account other rescue acts by the US, its total bailout plan runs into more than seven trillion dollars.
Various European nations together have come up with about 1.3 trillion dollar in financial assistance apart from the European Commission urging the constituent countries to pledge nearly 254 billion dollar.
Further, Germany has thrown lifelines to the tune of 60 billion dollar to save the country's leading financial firms -- Dexia Bank and Hypo Real Estate -- both of which were battered by the worsening economic turmoil.
While Hypo Real Estate received 50 billion dollar, Dexia Bank got a lifeline worth about 10 billion dollar.
Among the developing nations, China has announced a massive 586 billion-dollar plan to boost its economy and the funds would be mainly utilised for infrastructure projects.
Other major bailouts in recent times include 572 billion dollar pumped by Ireland administration to strengthen the country's banks, 150 billion dollar pledged by Russia and 30 billion dollar put in by the Poland government.
Meanwhile, the whopping seven trillion-dollar injected into the economy by the US, includes billions of dollars of term funding facilities, currency swap arrangement with various foreign governments and rescue of Wall Street giants.
With the economic turmoil continuing unabated, the Bush administration recently came up with another mega 800 billion- dollar plan, which would help in buying toxic mortgage assets, among others.
Further, the Federal government threw a lifeline of more than 300 billion dollar to banking behemoth Citigroup. The rescue includes fresh capital injection to the tune of 40 billion dollar and guaranteeing assets worth 306 billion dollar.
In the United Kingdom, the administration has announced injection of more than 100 billion dollar, with funds primarily utilised to rescue its banks.
Bradford & Bingley, which was on the verge of collapse received nearly 33 billion dollar from the administration.
Source: Agencies
Sunday, December 7, 2008
Rs 300,000cr package to boost Indian economy
The government on Sunday announced major tax cuts across the board to boost demand and allocated additional funds and incentives for exports, housing, textile and infrastructure to stimulate the economy, hit by the global financial crisis.
"The government has been concerned about the impact of global financial crisis on the Indian economy
and a number of steps have been taken to deal with this problem," an official statement said.
The package, coming on the back of fresh monetary measures announced by the RBI on Saturday, includes a four per cent cut in ad-valoram duty across the board, to boost additional spending, besides enhanced credit for exporters, along with a Rs 10,000 crore mop up for India Infrastructure Finance Company.
The measures include additional plan expenditure up to Rs 20,000 crore in current year; total spending in four months till March expected at Rs 300,000 crore. A series of steps to boost exports; Rs 350 crore additional funds for export incentives; back-up guarantee to ECGC for up to Rs 350 crore; to be allowed refund of services in some areas.
The package also includes import duty on Naptha for use in power sector as well as export duty on iron ore to be eliminated. India Infrastructure Finance Company to raise Rs 10,000 crore through tax-free bonds by March 2009. PSU banks to soon announce package for borrowers of home loans upto Rs 20 lakh. An across-the-board cut on ad valorem rate to encourage additional spending; additional Rs 1,400 crore for textile sector.
Source: Agencies
"The government has been concerned about the impact of global financial crisis on the Indian economy
and a number of steps have been taken to deal with this problem," an official statement said.
The package, coming on the back of fresh monetary measures announced by the RBI on Saturday, includes a four per cent cut in ad-valoram duty across the board, to boost additional spending, besides enhanced credit for exporters, along with a Rs 10,000 crore mop up for India Infrastructure Finance Company.
The measures include additional plan expenditure up to Rs 20,000 crore in current year; total spending in four months till March expected at Rs 300,000 crore. A series of steps to boost exports; Rs 350 crore additional funds for export incentives; back-up guarantee to ECGC for up to Rs 350 crore; to be allowed refund of services in some areas.
The package also includes import duty on Naptha for use in power sector as well as export duty on iron ore to be eliminated. India Infrastructure Finance Company to raise Rs 10,000 crore through tax-free bonds by March 2009. PSU banks to soon announce package for borrowers of home loans upto Rs 20 lakh. An across-the-board cut on ad valorem rate to encourage additional spending; additional Rs 1,400 crore for textile sector.
Source: Agencies
Web 2.0 a hit with handset makers
Cell phone makers are increasingly pre-loading their handsets with social networking applications to woo Internet-savvy consumers.
LG Mobile has tied up with Mobile 2.0 service provider RockeTalk which will upload a social networking application on its phones. Similarly, Samsung Mobile has a tie-up with ShoZu, provider of mobile social media services, which has pre-loaded social networking software on select Samsung phones.
Says Samsung Mobile country head Sanjay Dutt: “Early next year, we plan to launch our own proprietary software for enabling social networking through mobiles. This will be preloaded on most Samsung multimedia phones. The idea is to enable users to stay connected while on the move.”
LG GSM business head Anil Arora: “Social networking is the next thing on mobile phones. In future, we plan to preload more mobile phone models with social networking application without any extra charge.”
The company currently pre-loads the application only on LG KT 610 and KF 750 cell phones.
According to handset marketers, social networking on mobiles is a hightraction feature in the urban market where youths form a big consumer group for handsets. Says Motorola India and South-West Asia senior director (sales) Lloyd Mathias: “Social networking is an important feature, especially in the urban market and can define the purchase decision. Today’s Internet savvy youths seek access to social networking sites on mobile phones.”
Motorola has social networking application pre-loaded on seven of its handset models, including all phones in the Moto Rokr and Moto Ming series.
Some handset makers are eagerly seeking a tie-up in the space. Says Meridian Mobile CEO Rajiv Khanna: “We see potential in this feature and are planning to make even our low-end phones internet-ready. Early next year, we will tie up with a local web 2.0 service provider and upload this feature in our phones at the shop-floor level.”
Service providers are spoilt for choice as manufacturers queue up seeking collaborations for pre-loading phones with social networking applications.
Says RockeTalk marketing director Sameer Agarwal: “Our application makes it easier for mobile users to send voice messages, pictures and videos. Social networking on mobiles is set to grow exponentially as mobile internet penetration increases.”
The US-based service provider claims to be in advanced stages of talks with handset makers--Nokia, Sony Ericsson, Samsung and Spice Mobile--for pre-loading web 2.0 applications.
Almost 10 million new handsets are sold in India every month, making it one of the biggest markets globally. No wonder, handset marketers like LG and Samsung are quick to adopt novel features to fuel sales.
Source: Agencies
LG Mobile has tied up with Mobile 2.0 service provider RockeTalk which will upload a social networking application on its phones. Similarly, Samsung Mobile has a tie-up with ShoZu, provider of mobile social media services, which has pre-loaded social networking software on select Samsung phones.
Says Samsung Mobile country head Sanjay Dutt: “Early next year, we plan to launch our own proprietary software for enabling social networking through mobiles. This will be preloaded on most Samsung multimedia phones. The idea is to enable users to stay connected while on the move.”
LG GSM business head Anil Arora: “Social networking is the next thing on mobile phones. In future, we plan to preload more mobile phone models with social networking application without any extra charge.”
The company currently pre-loads the application only on LG KT 610 and KF 750 cell phones.
According to handset marketers, social networking on mobiles is a hightraction feature in the urban market where youths form a big consumer group for handsets. Says Motorola India and South-West Asia senior director (sales) Lloyd Mathias: “Social networking is an important feature, especially in the urban market and can define the purchase decision. Today’s Internet savvy youths seek access to social networking sites on mobile phones.”
Motorola has social networking application pre-loaded on seven of its handset models, including all phones in the Moto Rokr and Moto Ming series.
Some handset makers are eagerly seeking a tie-up in the space. Says Meridian Mobile CEO Rajiv Khanna: “We see potential in this feature and are planning to make even our low-end phones internet-ready. Early next year, we will tie up with a local web 2.0 service provider and upload this feature in our phones at the shop-floor level.”
Service providers are spoilt for choice as manufacturers queue up seeking collaborations for pre-loading phones with social networking applications.
Says RockeTalk marketing director Sameer Agarwal: “Our application makes it easier for mobile users to send voice messages, pictures and videos. Social networking on mobiles is set to grow exponentially as mobile internet penetration increases.”
The US-based service provider claims to be in advanced stages of talks with handset makers--Nokia, Sony Ericsson, Samsung and Spice Mobile--for pre-loading web 2.0 applications.
Almost 10 million new handsets are sold in India every month, making it one of the biggest markets globally. No wonder, handset marketers like LG and Samsung are quick to adopt novel features to fuel sales.
Source: Agencies
Air fares in India fall in time for New Year
Air fares have finally begun their descent to more reasonable levels this holiday season. On Saturday, Vijay Mallya-owned Kingfisher and low cost carriers — IndiGo and SpiceJet — decided to follow Jet and Air India in cutting fuel surcharge for domestic flights.
While full service carriers have dropped surcharge by Rs 400, LCCs — that had not raised them in last two rounds of jet fuel price hikes — have also reduced by Rs 200 to Rs 300. Now all Indian carriers, whether full service or low cost, have uniform fuel surcharge: Rs 1,950 for short flights and Rs 2,700 for those over one hour flying time.
LCCs like IndiGo and SpiceJet and AI (domestic) don't charge the congestion fee of Rs 150 that Jet and Kingfisher do. In fact, with the difference in fuel surcharge gone, LCCs would be under pressure to cut basic fares. They are looking at re-introducing attractive advance booking fares to stimulate demand. At present, full service carriers' fares are about 20% higher than LCCs and the latter want this gap to be 25-30% to be significantly cheaper.
The airlines' worst fears are coming true as the combined impact of economic glut and terror alerts has cast its shadow on passenger numbers in the ongoing peak travel season. The number of fliers is going to further drop from January to March (traditionally the leanest travel season). "We have to stimulate demand by attractive fares," said SpiceJet director Ajay Singh.
While full service carriers have dropped surcharge by Rs 400, LCCs — that had not raised them in last two rounds of jet fuel price hikes — have also reduced by Rs 200 to Rs 300. Now all Indian carriers, whether full service or low cost, have uniform fuel surcharge: Rs 1,950 for short flights and Rs 2,700 for those over one hour flying time.
LCCs like IndiGo and SpiceJet and AI (domestic) don't charge the congestion fee of Rs 150 that Jet and Kingfisher do. In fact, with the difference in fuel surcharge gone, LCCs would be under pressure to cut basic fares. They are looking at re-introducing attractive advance booking fares to stimulate demand. At present, full service carriers' fares are about 20% higher than LCCs and the latter want this gap to be 25-30% to be significantly cheaper.
The airlines' worst fears are coming true as the combined impact of economic glut and terror alerts has cast its shadow on passenger numbers in the ongoing peak travel season. The number of fliers is going to further drop from January to March (traditionally the leanest travel season). "We have to stimulate demand by attractive fares," said SpiceJet director Ajay Singh.
Sat phones may help India trace jihadi trail
They have for long been a big chink in the Indian security apparatus. Not licensed to be sold here, Thuraiya satellite phones have been a favourite with the anti-India terror groups who use them to go about their deadly agenda without the fear of their calls getting intercepted.
However, as Mumbai cops gather evidence to strengthen their already-formidable case against Pakistan-based jehadi group, Lashkar-e-Taiba, a unique characteristic of Thuraiya satellite phone is proving to be of great help.
All the satellite phones have built-in GPS devices which help the Thuraiya `switch' -- master control facility -- in Sharjah to record the movement of a phone as it makes or receives calls.
Sources indicated that investigators, working together with the FBI, have already procured the details from Thuraiya which will help them plot the journey of the Lashkar gang when they set out from Kazghar Creek in Pakistan on their ghastly mission against India.
The Thuraiya switch at Sharjah will also have records of the co-ordinates of Lashkar leaders who used their satellite phones to communicate with their boys heading for Mumbai.
"The evidence will destroy Pakistan's deniability", asserted top intelligence sources, while indicating that Americans are working hard to get the evidence from Sharjah which will help them plot the movement of the gang as well as key Lashkar operatives -- Zakiurr Rahman and Muzammil.
Mohammad Ajmal, the arrested terrorist, has told interrogators that Zakiurr Rahman and Muzammil had instructed them to throw both the satellite phone and the GPS device into the sea after reaching Mumbai. While the jehadis scrupulously carried out their brief to kill innocents and cause mayhem, they forgot to jettison the two devices -- a lapse which threatens to spoil the celebrations over the Mumbai strikes in the Muridike headquarters of Lashkar and which has created complications for Pakistan.
Source: Agencies
However, as Mumbai cops gather evidence to strengthen their already-formidable case against Pakistan-based jehadi group, Lashkar-e-Taiba, a unique characteristic of Thuraiya satellite phone is proving to be of great help.
All the satellite phones have built-in GPS devices which help the Thuraiya `switch' -- master control facility -- in Sharjah to record the movement of a phone as it makes or receives calls.
Sources indicated that investigators, working together with the FBI, have already procured the details from Thuraiya which will help them plot the journey of the Lashkar gang when they set out from Kazghar Creek in Pakistan on their ghastly mission against India.
The Thuraiya switch at Sharjah will also have records of the co-ordinates of Lashkar leaders who used their satellite phones to communicate with their boys heading for Mumbai.
"The evidence will destroy Pakistan's deniability", asserted top intelligence sources, while indicating that Americans are working hard to get the evidence from Sharjah which will help them plot the movement of the gang as well as key Lashkar operatives -- Zakiurr Rahman and Muzammil.
Mohammad Ajmal, the arrested terrorist, has told interrogators that Zakiurr Rahman and Muzammil had instructed them to throw both the satellite phone and the GPS device into the sea after reaching Mumbai. While the jehadis scrupulously carried out their brief to kill innocents and cause mayhem, they forgot to jettison the two devices -- a lapse which threatens to spoil the celebrations over the Mumbai strikes in the Muridike headquarters of Lashkar and which has created complications for Pakistan.
Source: Agencies
Will the $15b-loan bail out help US auto industry?
Facing massive job losses, the White House and congressional Democrats are working to provide about $15 billion in loans to prevent Detroit’s weakened auto industry from collapsing. After yielding to President George W Bush on a key point, House Speaker Nancy Pelosi said the House would consider legislation next week to provide “short-term and limited assistance” to the US auto industry while it undergoes “major restructuring.”
“Congress will insist that any legislation include rigorous and ongoing oversight to guarantee that taxpayers are protected and that resources are directed to ensure the longterm viability and competitiveness” of the industry, Pelosi said in a statement. The Senate is also scheduled to be in session next week. The legislation, which was being crafted this weekend, would act as a lifeline to General Motors Corporation, Ford Motor Co. and Chrysler LLC while meeting demands from many skeptical lawmakers that Congress refrain from writing a blank check for the beleaguered industry. Officials in both parties said a key breakthrough on the long-stalled bailout came when Pelosi bowed to Bush’s demand that the aid come from a fund set aside for the production of environmentally friendlier cars. The California Democrat spoke to White House chief of staff Josh Bolten during the day to signal her change in position, they added.
Pelosi said the billions of dollars that had been set aside to modernize plants to develop the green cars would be repaid “within a matter of weeks.” Democrats said her hope was to include the funds in an economic recovery bill that lawmakers are expected to prepare for President-elect Barack Obama’s signature shortly after he takes office. Officials in both parties also said the legislation would include creation of a trustee or group of industry overseers to make sure the bailout funds were used by automakers for their intended purpose. The funds are designed to last until March, giving the incoming Obama administration and the new Congress time to consider the issue anew.
A Democratic aide said Pelosi was seeking a provision that would bar the automakers from using any of the funds to pursue a legal challenge to states seeking to implement tougher auto emission standards. The aide spoke on condition of anonymity because the legislation was not yet drafted.
Source: Agencies
“Congress will insist that any legislation include rigorous and ongoing oversight to guarantee that taxpayers are protected and that resources are directed to ensure the longterm viability and competitiveness” of the industry, Pelosi said in a statement. The Senate is also scheduled to be in session next week. The legislation, which was being crafted this weekend, would act as a lifeline to General Motors Corporation, Ford Motor Co. and Chrysler LLC while meeting demands from many skeptical lawmakers that Congress refrain from writing a blank check for the beleaguered industry. Officials in both parties said a key breakthrough on the long-stalled bailout came when Pelosi bowed to Bush’s demand that the aid come from a fund set aside for the production of environmentally friendlier cars. The California Democrat spoke to White House chief of staff Josh Bolten during the day to signal her change in position, they added.
Pelosi said the billions of dollars that had been set aside to modernize plants to develop the green cars would be repaid “within a matter of weeks.” Democrats said her hope was to include the funds in an economic recovery bill that lawmakers are expected to prepare for President-elect Barack Obama’s signature shortly after he takes office. Officials in both parties also said the legislation would include creation of a trustee or group of industry overseers to make sure the bailout funds were used by automakers for their intended purpose. The funds are designed to last until March, giving the incoming Obama administration and the new Congress time to consider the issue anew.
A Democratic aide said Pelosi was seeking a provision that would bar the automakers from using any of the funds to pursue a legal challenge to states seeking to implement tougher auto emission standards. The aide spoke on condition of anonymity because the legislation was not yet drafted.
Source: Agencies
Saturday, December 6, 2008
Hong Kong to create 250K jobs through infra projects
Hong Kong's government aims to create 250,000 jobs by launching 10 big infrastructure projects in 2009, its financial secretary said on Saturday, in an effort to slow the growing jobless rate in an economic downturn.
"(The) Hong Kong SAR government will facilitate the launch of 10 major infrastructure projects next year, hoping to bring in 250,000 jobs," John Tsang said in a radio programme, adding he had urged all government departments to propose ways of creating more jobs.
He gave no time frame for the 250,000 job target. Tsang had said earlier this week that he expected Hong Kong's economy to worsen in coming few months. The government recently cut its 2008 GDP growth forecast to 3 to 3.5 percent from 4 to 5 percent.
The unemployment rate rose to 3.5 percent in August-October, from 3.4 percent in July-September quarter. The government said the jobless rate was a lagging indicator and had yet to truly reflect the impact of the global financial crisis.
Economists see it topping 4 percent within a few months as Hong Kong is now in recession and as a trading and financial hub is being hit by the global economic downturn. The jobless rate has come down from a record 8.5 percent in the past five years as the economy has rebounded, but it now looks set to rise sharply in the next year as a global economic downturn hurts Hong Kong businesses.
Source: Agencies
"(The) Hong Kong SAR government will facilitate the launch of 10 major infrastructure projects next year, hoping to bring in 250,000 jobs," John Tsang said in a radio programme, adding he had urged all government departments to propose ways of creating more jobs.
He gave no time frame for the 250,000 job target. Tsang had said earlier this week that he expected Hong Kong's economy to worsen in coming few months. The government recently cut its 2008 GDP growth forecast to 3 to 3.5 percent from 4 to 5 percent.
The unemployment rate rose to 3.5 percent in August-October, from 3.4 percent in July-September quarter. The government said the jobless rate was a lagging indicator and had yet to truly reflect the impact of the global financial crisis.
Economists see it topping 4 percent within a few months as Hong Kong is now in recession and as a trading and financial hub is being hit by the global economic downturn. The jobless rate has come down from a record 8.5 percent in the past five years as the economy has rebounded, but it now looks set to rise sharply in the next year as a global economic downturn hurts Hong Kong businesses.
Source: Agencies
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