Ten million people in the export sector will be out of job by March this year, as Indian goods find fewer buyers in the international Coming to terms with layoffs market which is battling the worst crisis since 1929.
"There will be 10 million job losses by March," Federation of Indian Export Organisations (FIEO) President A Sakthivel told reporters here on Tuesday.
Indian exports, which account for just about 20 per cent of the country's Gross Domestic Product, are a highly labour-intensive activity, employing 150 million people.
The country's exports, which posted a robust 30.9 per cent growth rate in the first half of fiscal, contracted by 12.1 per cent in October, for the first time in the last five years. The negative trend continued in November, when exports fell to $11.5 billion from $12.7 billion. The data for December are yet to be released.
"I can safely say that negative growth trends will continue in December and in the next couple of months... I hope we will end the fiscal with exports of about $175-180 billion," Sakthivel said.
FIEO yesterday said there was no "serious consideration" for exporters in the measures announced by the government last week.
The target for the current fiscal is $200 billion while exports totalled about $160 billion in 2007-08.
Europe and North America, which account for 37 per cent of India's merchandise exports, are reeling under recession and slowdown.
The FIEO chief said he did not see positive trends before the fourth quarter of the calendar 2009, "though a complete U-turn may take a little longer", he said.
Agencies
Tuesday, January 6, 2009
Logitech to cut 15 percent salaried staff
Logitech International SA, a maker of mice, webcams and other computer peripherals, said it is cutting its salaried work force by 15 percent in response to weak consumer demand amid what it expects to be an extended global downturn.
Switzerland-based Logitech, which also has offices in Fremont, has about 3,500 salaried employees in a total work force of about 9,000.
The company also withdrew its previous fiscal 2009 forecasts for sales growth of 6 to 8 per cent and operating income growth of 3 to 5 per cent. It did not provide revised targets and said it plans to update investors on its outlook during its third-quarter results briefing on Jan 20.
"During the December quarter, the retail environment deteriorated significantly," said Gerald P Quindlen, Logitech's president and chief executive officer. He added in a statement that "we expect the economic environment to worsen in the coming months and we are therefore taking significant actions to align our cost structure with what is likely to be an extended downturn."
Logitech said it will book a restructuring charge for the job cuts in its fiscal fourth quarter. It said it will detail the charge when it issues its third-quarter results.
Quindlen said the company has a strong cash position, no debt, and is maintaining market share.
Agencies
Switzerland-based Logitech, which also has offices in Fremont, has about 3,500 salaried employees in a total work force of about 9,000.
The company also withdrew its previous fiscal 2009 forecasts for sales growth of 6 to 8 per cent and operating income growth of 3 to 5 per cent. It did not provide revised targets and said it plans to update investors on its outlook during its third-quarter results briefing on Jan 20.
"During the December quarter, the retail environment deteriorated significantly," said Gerald P Quindlen, Logitech's president and chief executive officer. He added in a statement that "we expect the economic environment to worsen in the coming months and we are therefore taking significant actions to align our cost structure with what is likely to be an extended downturn."
Logitech said it will book a restructuring charge for the job cuts in its fiscal fourth quarter. It said it will detail the charge when it issues its third-quarter results.
Quindlen said the company has a strong cash position, no debt, and is maintaining market share.
Agencies
Monday, January 5, 2009
Infosys, Wipro get terror e-mails
Six prominent IT companies in the city, including Infosys and Wipro, have received e-mails threatening to blow up their buildings, said a top police officer.
Joint commissioner of police B. Gopal Hosur said here that the companies received e-mails threatening to blow up their establishments two days ago and immediately informed the police.
The police have already begun investigations, he said, but did not divulge further details.
Security had been tightened at all the Information Technology companies which received the threats.
City police commissioner Sankar Bidri said police viewed the e-mail threats seriously and that all precautionary measures were being taken.
Joint commissioner of police B. Gopal Hosur said here that the companies received e-mails threatening to blow up their establishments two days ago and immediately informed the police.
The police have already begun investigations, he said, but did not divulge further details.
Security had been tightened at all the Information Technology companies which received the threats.
City police commissioner Sankar Bidri said police viewed the e-mail threats seriously and that all precautionary measures were being taken.
India to emerge strong from the global meltdown
The report said India, along with China, Russia and South Korea would emerge stronger from the global financial crisis as they enjoy strong economic foundations, higher growth rates and sound monetary policy measures.
US, China and Japan were ranked first, second and third respectively.
India ranked 19th in terms of budget balance as a percentage of the gross domestic product (GDP) and 12th in terms of public debt as a percentage of the GDP.
The ranking was based on seven economic indicators: size of the economy, spending power, tax structure, interest rate policy, budget balances, debt burden and foreign exchange reserves.
US, China and Japan were ranked first, second and third respectively.
India ranked 19th in terms of budget balance as a percentage of the gross domestic product (GDP) and 12th in terms of public debt as a percentage of the GDP.
The ranking was based on seven economic indicators: size of the economy, spending power, tax structure, interest rate policy, budget balances, debt burden and foreign exchange reserves.
Sunday, January 4, 2009
Will US debt increase by $2 trillion in 2009?
The US national debt is expected to jump by as much as $2 trillion this year, thus putting more pressure on the American economy, a leading daily here said.
At present, the country's debt stands at nearly $10.7 trillion. Of this $3 trillion is held by foreign investors , with China ($652.9 billion) and Japan ($585.5 billion) being the top two creditors.
The soaring national debt would saddle taxpayers with huge new interest payments for years to come, the Washington Post said.
"Some analysts also worry that foreign investors, the largest United States creditors, may prove unable to absorb the skyrocketing debt, undermining confidence in the US as the bedrock of the global financial system," the Post wrote.
The newspaper said economists from across the political spectrum have endorsed the idea of going deeper into debt to combat the worst ever economic crisis since great depression of last century.
They argue that even with an increase of $2 trillion national debt, the United States is in relatively good financial shape as compared to other industrial nations.
Japan's public debt equalled 182% of its GDP in 2007 and that of Germany was 65%, the newspaper said referring to a forthcoming report by Scott Lilly, a senior fellow at the Centre for American Progress.
Even a $2 trillion increase would push the US debt to about 53 of the overall economy. This is "only a few percentage points above where it was in the early 1990s," Lilly was quoted as saying by the newspaper.
Source: Agencies
At present, the country's debt stands at nearly $10.7 trillion. Of this $3 trillion is held by foreign investors , with China ($652.9 billion) and Japan ($585.5 billion) being the top two creditors.
The soaring national debt would saddle taxpayers with huge new interest payments for years to come, the Washington Post said.
"Some analysts also worry that foreign investors, the largest United States creditors, may prove unable to absorb the skyrocketing debt, undermining confidence in the US as the bedrock of the global financial system," the Post wrote.
The newspaper said economists from across the political spectrum have endorsed the idea of going deeper into debt to combat the worst ever economic crisis since great depression of last century.
They argue that even with an increase of $2 trillion national debt, the United States is in relatively good financial shape as compared to other industrial nations.
Japan's public debt equalled 182% of its GDP in 2007 and that of Germany was 65%, the newspaper said referring to a forthcoming report by Scott Lilly, a senior fellow at the Centre for American Progress.
Even a $2 trillion increase would push the US debt to about 53 of the overall economy. This is "only a few percentage points above where it was in the early 1990s," Lilly was quoted as saying by the newspaper.
Source: Agencies
Chrysler gets $4-billion loan from US govt
Chrysler LLC said on Friday it has received an initial $4 billion emergency loan from the US government.
"This initial loan will allow the company to continue an orderly restructuring," Chrysler Chief Executive Bob Nardelli said in a statement.
But Chrysler later said its statement that talks continue between the US Treasury Department and Chrysler Financial about a loan should have been omitted.
Its earlier press release said a closing was expected in due course.
Two spokeswomen for the company could not immediately be reached by the media to clarify.
General Motors Corp received $4 billion in emergency loans on December 31.
Both Chrysler and GM have said they need the government cash to meet payouts to suppliers at a time when a plunge in auto sales has drained their cash holdings.
Under terms of the government bailout, Chrysler and GM will have to submit restructuring plans by mid-February and demonstrate that they are viable by the end of March.
Source: Agencies
"This initial loan will allow the company to continue an orderly restructuring," Chrysler Chief Executive Bob Nardelli said in a statement.
But Chrysler later said its statement that talks continue between the US Treasury Department and Chrysler Financial about a loan should have been omitted.
Its earlier press release said a closing was expected in due course.
Two spokeswomen for the company could not immediately be reached by the media to clarify.
General Motors Corp received $4 billion in emergency loans on December 31.
Both Chrysler and GM have said they need the government cash to meet payouts to suppliers at a time when a plunge in auto sales has drained their cash holdings.
Under terms of the government bailout, Chrysler and GM will have to submit restructuring plans by mid-February and demonstrate that they are viable by the end of March.
Source: Agencies
Apple likely to unveil cheaper iPhone in 2009
Apple Inc will probably begin selling a lower-priced version of the iPhone in the first half of 2009, tapping a new chipmaker for a key component, according to Friedman, Billings, Ramsey & Co.
Qualcomm Inc will replace Infineon Technologies AG as the supplier of the baseband processor -- the chip that translates radio signals into voice and data -- in the new model, analyst Craig Berger said in a report. The phone might debut in the second quarter, he said, citing unidentified industry sources.
Apple may be turning to lower-cost products to fuel sales in developing countries as the US economy shrinks. The company is planning a smaller version of its Shuffle music player and a cheaper MacBook laptop, Berger said. None of the devices is likely to be ready to be unveiled at next week’s Macworld conference, where Apple typically makes product announcements.
“Mobile phone sales figures will continue to grow worldwide in 2009 and most of that growth will come from developing countries,” said Hakim Kriout, a portfolio manager at Grigsby & Associates, a New York-based securities trading firm that owns Apple shares.
“Turning the iPhone into a product line by adding another device for the lower end of the market is the next logical phase.”
Jennifer Bowcock, Apple’s spokeswoman for the iPhone, didn’t immediately return a call or email seeking comment. San Diego-based Qualcomm’s Bertha Agia also didn’t immediately return a phone call.
Wal-Mart, Best Buy
Apple currently sells two versions of the iPhone, an 8GB model for $199 and a 16GB device for $299. Wal-Mart Sto
res Inc, the world’s largest retail chain, began offering the product last week, with its starting price at $197. Best Buy Co, the biggest electronics seller in the US, sells the phone for $189.99 and $289.99.
Berger, who contacted parts suppliers, also said that Apple made fewer iPhones in the fourth quarter than originally estimated. That shortfall will be partially offset by greater first-quarter output, he said. About 10 million phones were available for purchase in the fourth quarter, he estimates.
Apple said this month that chief executive officer Steve Jobs won’t appear at the Macworld show, fuelling speculation that the company doesn’t have a significant new product to offer.
Apple will probably use the event to show updated versions of its aluminum-cased iMac desktop computers and a new operating system, Brian Marshall, an analyst at Broadpoint.AmTech in San Francisco, said.
Source: Agencies
Qualcomm Inc will replace Infineon Technologies AG as the supplier of the baseband processor -- the chip that translates radio signals into voice and data -- in the new model, analyst Craig Berger said in a report. The phone might debut in the second quarter, he said, citing unidentified industry sources.
Apple may be turning to lower-cost products to fuel sales in developing countries as the US economy shrinks. The company is planning a smaller version of its Shuffle music player and a cheaper MacBook laptop, Berger said. None of the devices is likely to be ready to be unveiled at next week’s Macworld conference, where Apple typically makes product announcements.
“Mobile phone sales figures will continue to grow worldwide in 2009 and most of that growth will come from developing countries,” said Hakim Kriout, a portfolio manager at Grigsby & Associates, a New York-based securities trading firm that owns Apple shares.
“Turning the iPhone into a product line by adding another device for the lower end of the market is the next logical phase.”
Jennifer Bowcock, Apple’s spokeswoman for the iPhone, didn’t immediately return a call or email seeking comment. San Diego-based Qualcomm’s Bertha Agia also didn’t immediately return a phone call.
Wal-Mart, Best Buy
Apple currently sells two versions of the iPhone, an 8GB model for $199 and a 16GB device for $299. Wal-Mart Sto
res Inc, the world’s largest retail chain, began offering the product last week, with its starting price at $197. Best Buy Co, the biggest electronics seller in the US, sells the phone for $189.99 and $289.99.
Berger, who contacted parts suppliers, also said that Apple made fewer iPhones in the fourth quarter than originally estimated. That shortfall will be partially offset by greater first-quarter output, he said. About 10 million phones were available for purchase in the fourth quarter, he estimates.
Apple said this month that chief executive officer Steve Jobs won’t appear at the Macworld show, fuelling speculation that the company doesn’t have a significant new product to offer.
Apple will probably use the event to show updated versions of its aluminum-cased iMac desktop computers and a new operating system, Brian Marshall, an analyst at Broadpoint.AmTech in San Francisco, said.
Source: Agencies
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