http://www.pdicai.orgThe latest news and journals from all over the world.Copyright 2005 - 2006 Feedpedia.com. All rights reserved.To finance its high current account deficit (CAD), the government might consider attracting more foreign direct investment (FDI) into the country.For the quarter ended December, the CAD had touched a record high of 6.7 per cent of gross domestic product, against 5.4 per cent in the previous quarter.In its monetary policy statement today, RBI said, "The main challenge is to reduce the CAD to a sustainable level; the near-term challenge is to finance it through stable flows." Of late, foreign institutional investors (FIIs) have been pulling out of domestic markets and the Street views this as a concern. "When we are running a high CAD, it will be a challenge to finance it, as we are at the mercy of global risk appetite. Unless CAD comes down substantially, financing it will be a challenge," said A Prasanna, chief economist, ICICI Securities Primary Dealership.http://www.business-standard.com/article/economy-policy/centre-may-eye-fdi-to-finance-high-cad-113061800028_1.html18 Jun 2013 00:00:00 GMTWest Texas Intermediate crude rose to a nine-month high as an economic index showed rising optimism among manufacturers in the New York region. Oil climbed for a fourth day as the Federal Reserve Bank of New York's general economic index increased to 7.8 this month, the highest reading since March. Prices fell earlier on speculation that the Fed, which starts a two-day policy meeting on Tuesday, may taper its monetary stimulus. "It's a strong manufacturing number and may feed into the strong-demand scenario," said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. "At the same time it may feed into the speculation that the Fed might reduce stimulus."http://economictimes.indiatimes.com/markets/commodities/crude-oil-climbs-to-9-month-high/articleshow/20638804.cms18 Jun 2013 00:00:00 GMTThe United Arab Emirates has revived a proposal to merge its two main stock exchanges in a state-backed deal that could boost trade in the local market and attract more foreign investment to the Gulf state, sources familiar with the plan said.Talks on a potential merger between the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) have occurred on and off since at least 2010. There are no common listings on the exchanges; a merger could deepen the equity market of the Arab world's second biggest economy, encouraging more companies to list their shares and international institutions to buy them. But progress toward the proposed tie-up halted because of differences over how to value the exchanges, and because the two emirates were preoccupied by other issues such as the aftermath of Dubai's 2009-2010 corporate debt crisis.http://www.business-standard.com/article/markets/uae-revives-deal-to-merge-its-two-main-stock-exchanges-113061701175_1.html18 Jun 2013 00:00:00 GMTIt turns out that Reliance Industries Ltd (RIL) is not the only Mukesh Ambani company that's planning massive capital expenditure. Weeks after the country's largest private-sector company announced it planned to invest Rs 1,50,000 crore over the next three years, it is learnt that Ambani's personal companies, led by his power and port ventures, are gearing up for a big business boom by adding capacity to meet future demand.Bankers say the unlisted Reliance Utilities & Power Ltd is expected to spend close to Rs 10,000 crore to add 2,600 Mw of capacity over the next two years. The new units will be set up in Jamnagar, Dahej and Hazira and take care of the increasing power requirements of RIL's units. Similarly, Reliance Ports & Terminal Ltd would set up, over two years, additional berths at Jamnagar to handle liquid and solid cargo, including coal imports.http://www.business-standard.com/article/companies/mukesh-ambani-s-port-power-firms-get-ready-for-big-boom-113061800068_1.html18 Jun 2013 00:00:00 GMTNew Holland Fiat India, part of the Italian automotive major Fiat Industrial Group plans to invest Rs 1100 crore to set up a new greenfield plant in Maharashtra and increase its tractor manufacturing capacity by 50% in the next three years. The company would take its tractor capacity to 60,000 units at the Greater Noida plant in Uttar Pradesh with a cumulative investment of Rs 230 crore. Currently it churns our 40,000 tractors per year. Besides, an Rs 550 crore plant will come up at Chakan in Maharashtra to make sugarcane harvesters, cotton pickers and harvest combiner's for various crop applications in the country. http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/italian-tractor-major-to-invest-rs-1100-crore-in-india/articleshow/20639178.cms18 Jun 2013 00:00:00 GMTSushil Modi, who till Saturday was Bihar?s deputy chief minister and finance minister, resigned today as chairman of the Empowered Committee (EC) of State Finance Ministers, further complicating progress on the hurdle-prone Goods and Services Tax.The content of his official letter to Union finance minister P Chidambaram had a reminder of the rough patch ahead. Modi, a senior figure in the Bharatiya Janata Party, raised the contentious issue of Central Sales Tax (CST) compensation, on which the Centre and states differ. "Although l have resigned from the post...I thought to bring to your notice the burning issue of payment of CST compensation to the states," wrote Modi.http://www.business-standard.com/article/current-affairs/sushil-modi-resigns-as-gst-panel-chair-113061700356_1.html18 Jun 2013 00:00:00 GMTThe new income-tax forms notified by the government have made it mandatory for many assessees to file their audit reports in the electronic mode at the time of filing tax returns. ?(The) list of audit reports required to be furnished with return of income has been expanded. As many as 12 audit reports have been electronically enabled against three earlier,? said a finance ministry official. The filing of audit reports was made mandatory in ITR Form 5, 6 and 7 after the tax department noticed discrepancies in filing of some returns along with audit reports. The Institute of Chartered Accounts of India brought to the notice of the I-T department that some companies were furnishing fake name and registration numbers of auditors in their returns.http://www.business-standard.com/article/pf/e-filing-of-audit-reports-mandatory-with-tax-returns-113061700843_1.html18 Jun 2013 00:00:00 GMTIncreased import of Chinese goods into India is impacting micro, small and medium enterprises (MSMEs), according to the ministry of micro, small and medium enterprises. In eight major product categories that are predominantly manufactured by MSMEs, imports from China grew faster than their respective imports from all countries in the four years from 2008-09 to 2011-12.The ministry's finding is based on data compiled by the Directorate General of Commercial Intelligence & Statistics (DGCIS). The eight product groups include electrical and electronics, mechanical and metallurgical products, chemicals, glass and ceramics-based products. These accounted for 54 per cent of India's total imports from China in 2011-12.http://www.business-standard.com/article/sme/increased-import-of-chinese-goods-hurts-indian-msmes-113061701112_1.html18 Jun 2013 00:00:00 GMTA consortium of companies owned by Li Ka-shing, the richest person in Asia, said Monday that it would pay more than $1 billion to acquire the Dutch waste management company AVR from its private equity owners.Li's companies have been seeking to expand their already considerable global portfolio of investments in utilities and infrastructure, which include electricity plants in Australia and natural gas networks in Britain.Under the Euro 943.7-million ($1.26-billion) deal, four Li companies will team up to acquire AVR, which incinerates waste and converts it into energy, from a Dutch company jointly controlled by the private equity firms Kohlberg Kravis Roberts and CVC Capital Partners.http://www.business-standard.com/article/international/asia-s-richest-person-expands-reach-into-europe-113061800056_1.html18 Jun 2013 00:00:00 GMTWhat central banks may have the world over is a failure to communicate.Officials are struggling to spell out their visions for monetary policy, often amid a chorus of competing views. Chairman Ben S Bernanke is trying to manage expectations about when the US Federal Reserve will slow asset purchases and raise interest rates. Bank of Japan Governor Haruhiko Kuroda's reflation-push is backfiring by driving up bond yields. European Central Bank President Mario Draghi is dashing investors' hopes he once kindled for extra stimulus.The muddied messaging already is roiling financial markets, threatening to undermine the confidence of investors, households and consumers and so undoing efforts by central banks to strengthen their economies. The opacity puts policy makers under pressure to improve the communication techniques they've been using to restrain borrowing costs.http://www.business-standard.com/article/international/central-banks-failure-to-communicate-boosts-bond-yields-113061800053_1.html18 Jun 2013 00:00:00 GMTChina's defence scientists have built the world's fastest supercomputer, capable of performing 33.86 quadrillion operations per second, surpassing the US Titan supercomputer, according to survey results announced today. Costing $100 million, the Tianhe-2 has a peak performance speed of 54.9 quadrillion operations per second, according to the National University of Defence Technology, which built the computer.The computer's predecessor, the Tianhe-1A, was the world's fastest supercomputer from November 2010 to June 2011, when it was surpassed by Japan's K computer, state-run Xinhua News agency reported.http://www.business-standard.com/article/international/china-develops-world-s-fastest-supercomputer-113061800062_1.html18 Jun 2013 00:00:00 GMTBritain's Co-operative Group has agreed a plan to plug a ?1.5 billion ($2.4 billion) capital hole at its bank which forces bondholders to pay part of the bill, avoiding a repeat of the taxpayer-funded bailouts staged during the financial crisis.Using a "bail-in" model, bondholders must swap their debt for new bonds and equity in the bank to be listed on the London Stock Exchange, while the Co-op Group, Britain's biggest customer-owned business, will also provide financial support for its banking unit, the Co-op said on Monday.The future of the bank, which has 4.7 million customers, has been in question since Moody's cut the lender's credit rating to junk status and warned it might need taxpayer support - something the bank denied. Its capital position had come under increased scrutiny since it pulled out of a deal to buy hundreds of bank branches from Lloyds Banking Group in April.http://www.business-standard.com/article/international/uk-s-co-op-bank-agrees-to-2-4-bn-bail-in-rescue-plan-113061800059_1.html18 Jun 2013 00:00:00 GMTThe method of calculating ceiling prices of essential drugs has kicked up a row even as the National Pharmaceutical Pricing Authority (NPPA) on Monday notified maximum retail prices of 151 packs of medicines covered under the Drug Price Control Order (DPCO) 2013. Industry sources told FE that the NPPA has deviated from the formula set for calculating drug prices to pull down the overall ceiling prices of essential medicines. As per DPCO 2013, a drug maker selling an essential medicine as listed under the National List of Essential Medicines 2011 is expected to fix the price of the formulation equal to or below the ceiling price fixed for that formulation by the government.http://www.financialexpress.com/news/method-to-fix-drug-price-cap-kicks-up-controversy/113040118 Jun 2013 00:00:00 GMTIndia and Chile have finalised plans to expand the bilateral Preferential Trade Agreement (PTA) giving nearly all Chilean products access to the Indian market. The expanded agreement, which will take effect in 2014, is expected to be inked next month when Chilean President Sebastian Pinera visits India. The trade agreement will aim to minimise trade fees and eliminate double taxation of Indian and Chilean businesses.Though negotiations for expanding the PTA between the two countries had been going on for a while now, the decision was firmed up when external affairs minister Salman Khurshid met his Chilean counterpart Alfred Moreno in Santiago to discuss the accord earlier this year.http://www.financialexpress.com/news/expansion-of-trade-pact-to-boost-chile-s-access-to-indian-mkt/113040618 Jun 2013 00:00:00 GMTAbu Dhabi?s Etihad Airways is forming a separate wholly-owned subsidiary, Etihad Investment Holding Company, which would hold the 24% stake the gulf airline proposes to buy in Jet Airways. Industry sources said that the subsidiary is also likely to ultimately hold Etihad?s investments in other global airlines such as Air Berlin, Aer Lingus and Virgin Australia.?Etihad Airways is in the process of incorporating a company in the name of Etihad Investment Holding Company which shall be its wholly-owned subsidiary,? the gulf airline stated in its application to the Foreign Investment Promotion Board (FIPB).http://www.financialexpress.com/news/etihad-forms-arm-to-hold-24-stake-in-jet-airways/113041418 Jun 2013 00:00:00 GMTEuropean Union antitrust regulators will give unconditional approval to Intercontinental-Exchange?s (ICE) $8.2 billion offer for NYSE Euronext, two people familiar with the matter said on Monday. ?The deal is expected to be approved without any conditions,? said one of the people, who declined to be identified because of the sensitivity of the matter. The European Commission, the EU executive which acts as pan-European competition regulator, is scheduled to decide on the deal by June 24. Apple got up to 5,000 US data requests in 6 months Apple received over the last six months between 4,000 and 5,000 requests for customer data from US law enforcement authorities relating to criminal investigations and security matters, the company said on Monday.http://www.financialexpress.com/news/quick-view-eu-to-approve-ice-s-nyse-buy-without-conditions-/113026018 Jun 2013 00:00:00 GMTA record seven million students will graduate from universities and colleges across China in the coming weeks, but their job prospects appear bleak ? the latest sign of a troubled Chinese economy.Businesses say they are swamped with job applications but have few positions to offer as economic growth has begun to falter. Twitter-like microblogging sites in China are full of laments from graduates with dim prospects.The Chinese government is worried, saying that the problem could affect social stability, and it has ordered schools, government agencies and state-owned enterprises to hire more graduates at least temporarily to help relieve joblessness.http://www.financialexpress.com/news/faltering-economy-in-china-dims-job-prospects-for-graduates/113019218 Jun 2013 00:00:00 GMTA company stuck in bankruptcy for 12 years may not seem like much of a catch, but investors have fallen in love with US specialty chemical manufacturer WR Grace and its surging sales to the energy sector. One of the longest bankruptcies in US history, Grace filed for Chapter 11 protection in 2001 after an asbestos leak at one of its mines led to thousands of lawsuits against the company.http://www.financialexpress.com/news/why-bankrupt-wr-grace-is-thriving/113019618 Jun 2013 00:00:00 GMTWHEN India loosened its rules on how banks deal with bad debts in 2008, the financial crisis was raging. The aim, sensible enough, was to give breathing room to borrowers in temporary difficulty because of a shock that originated thousands of miles away in America?s housing market. Five years on, however, the policy has come back to haunt the country?s financial industry.Bank loans are usually classified as either performing or non-performing. If non-performing, lenders must build up reserves against potential losses.http://www.economist.com/news/finance-and-economics/21579472-state-run-banks-bad-debts-are-making-economic-recovery-harder-it-aint-over-yet18 Jun 2013 00:00:00 GMTGerman wages rose at their fastest pace in almost four years at the start of 2013 and euro zone exports jumped in April, giving the bloc a basis for a recovery from its long recession. Nominal hourly labor costs rose 3.9 percent in Germany in the first quarter, the EU's statistics office Eurostat said on Monday, faster than the overall euro zone rate of 1.6 percent. It was Germany's biggest jump since the first three months of 2009.http://in.reuters.com/article/2013/06/17/us-eurozone-economy-idINBRE95G05F2013061718 Jun 2013 00:00:00 GMTForeign banks are fuelling India's recent burst of overseas takeover bids, offering cheap U.S. dollar loans to corporates hungry to expand beyond their home state. The stream of financing offers from banks such as Standard Chartered(STAN.L), Citigroup(C.N) and Deutsche Bank(DBKGn.DE) comes after some U.S. and European lenders pulled back from the Indian market last year as the country suffered through an economic slump. Banks are now back, funding the entire amount of Apollo Tyres Ltd's(APLO.NS) $2.5 billion bid for New York-listed Cooper Tire & Rubber Co, a company nearly three times the size of its Indian suitor.http://in.reuters.com/article/2013/06/17/india-ma-loans-idINDEE95G00Q2013061718 Jun 2013 00:00:00 GMTBanks will look at cutting lending rates in the retail, small-and-medium enterprises (SME) and agriculture segments, even though a reduction in base rates is unlikely, say bankers in response to the Reserve Bank of India?s decision to keep rates unchanged at its mid-quarter policy.The country's largest lender, State Bank of India (SBI), says it will take up the issue of a base rate cut at its next asset-liability committee (Alco) meet, but in the absence of a fall in deposit rates and funding costs, a cut in the bank?s benchmark rate seems unlikely.?Banks hardly have any leeway right now. In a falling rate situation, assets reprice faster than liabilities, resulting in pressure on net interest margins (NIMs). At a time when banks are battling eroding NIMs, if policy rates don?t come down, banks have limited leeway,? said Diwakar Gupta, DMD & CFO, SBI.http://www.financialexpress.com/news/bankers-coy-about-base-rate-cut/113035718 Jun 2013 00:00:00 GMTGovernment bond yields fell 10 basis points on Monday and traders believe yields will ease another 5 bps on hopes that a fall in headline inflation will prompt the Reserve Bank of India (RBI) to resume its rate cutting cycle as early as July.At its mid-quarter policy review on Monday, the RBI left its repo rate unchanged at 7.25% and said that only a ?durable? fall in inflation will open up space for rate cuts.Despite that statement, the yield on the 10-year benchmark government bond fell 10 bps before closing at 7.25%. Traders said markets were fearing a far more hawkish statement from RBI and were oversold going in to the policy.http://www.financialexpress.com/news/bond-yields-fall-as-traders-breathe-sigh-of-relief/113036518 Jun 2013 00:00:00 GMTThe Securities and Exchange Board of India (Sebi) is expected to tighten the buyback norms when the board of the capital market watchdog meets on June 25. The new norms are likely to be in line with the proposals listed in the discussion paper released in January. The new norms could see the minimum buyback commitment increasing two-fold from the current 25% to 50% of the total buyback size.The time-frame for the buyback could also see a significant reduction from the current one year to around three months.Also, as part of its attempts to clamp down on hollow open offers done to push up the stock prices, the regulator is expected to impose restrictions on further capital raising by companies that make a buyback offer.http://www.financialexpress.com/news/sebi-may-tighten-buyback-norms-to-clamp-down-on-hollow-open-offers/113031918 Jun 2013 00:00:00 GMTHedge funds cut wagers on a gold rally for the first time in three weeks on mounting speculation central banks will curb record stimulus and as this year?s slump in bullion spurred losses for billionaire John Paulson. The funds and other large speculators lowered their net-long position by 4.1 percent to 54,779 futures and options by June 11, U.S. Commodity Futures Trading Commission data show. Net-bullish wagers across 18 U.S.-traded commodities rose 0.1 percent. Bearish copper bets more than doubled as the metal had its longest slump since November. Cocoa holdings advanced to the highest since 2008 before the biggest weekly slide since January.http://www.businessweek.com/news/2013-06-16/hedge-funds-cut-gold-bets-as-paulson-s-loss-widens-commodities18 Jun 2013 00:00:00 GMTIndia's trade deficit widened to a seven-month high in May as gold imports surged while exports contracted, posing yet another challenge to the country's troubled economy. A near-90% jump in annual gold imports was the chief reason for the trade deficit rising to $20.1 billion, from $16.9 billion in May last year. The country's merchandise exports fell 1.1% to $24.5 billion, despite a depreciating rupee, as global demand remained weak and the government banned gold trading in Special Economic Zones (SEZs). Imports climbed 6.99% to $44.64 billion.http://economictimes.indiatimes.com/news/economy/indicators/trade-deficit-widens-to-seven-month-high-in-may-as-gold-imports-surge/articleshow/20638376.cms18 Jun 2013 00:00:00 GMTUS Federal Reserve chairman Ben Bernanke will decide whether Indians' borrowing costs will fall or not. That's the essence of the Reserve Bank of India's mid-quarter monetary policy which kept key rates unchanged that ruffled a few feathers in the government, including those of finance minister P Chidambaram. If Bernanke does not roil the global currency and bond markets yet again talking about pulling back on flooding the markets with US dollars, a rate cut in India will be a certain event in the quarterly monetary review on July 30 . Bernanke, whose liquidity tide lifted global markets since 2009, will announce his decision on Wednesday after Indian markets close.http://economictimes.indiatimes.com/news/economy/policy/chances-of-a-july-rate-cut-to-go-up-if-the-us-fed-retains-its-qe-programme/articleshow/20640998.cms18 Jun 2013 00:00:00 GMTAsian Healthcare Fund (AHF), a private equity firm floated by Dabur Group chairman Anand Burman and former Dabur Pharma CEO Ajay Kumar Vij, is close to investing in Wellspring Healthcare, which operates a regional chain of primary healthcare clinics under the brand name Healthspring community medical centers in western India. This comes two months after AHF committed an investment of around Rs 40-50 crore in Mydentist, a regional dental care chain of 40 clinics with a focus on western India. This would be the second investment of the PE fund after it was established in 2011.While ET couldn't verify the amount of investment, the PE fund is likely to pump in money into the primary healthcare chain in a phased manner, in at least two tranches.http://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/healthcare/dabur-promoters-pe-fund-to-invest-in-wellspring-healthcare-chain/articleshow/20638392.cms18 Jun 2013 00:00:00 GMTThe Reserve Bank will soon notify the controversial Press Notes 2 and 3, four years after they were issued, giving momentum to the government's big-ticket foreign direct investment liberalisation push. The department of industrial policy and promotion (DIPP), the nodal department for FDI policy, has also circulated a cabinet note for putting in place a stringent definition of 'control', which will help the government clearly ascertain foreign ownership in ventures with FDI. "Understanding has been reached on these issues...the new changes should be issued shortly," a senior official told ET.This follows discussions between finance minister P Chidambaram and commerce and industry minister Anand Sharma late last month on the issue of defining 'control'.http://economictimes.indiatimes.com/news/economy/policy/reserve-bank-of-india-boosts-fdi-efforts-to-notify-press-notes-2-and-3-soon/articleshow/20638635.cms18 Jun 2013 00:00:00 GMTIndirect tax collection in April- May, the first two months of the 2013-14 fiscal, grew by a meagre 3.8% to Rs 71,379 crore.Customs duty collection for the two months was Rs 28,080 crore, while service tax collection was Rs 19,710 crore, Finance Ministry sources said. Excise duty collection for the period was Rs 23,589 crore.Indirect tax collection in May grew by 4% to Rs 37,695 crore.Customs duty collection for the month stood at Rs 14,997 crore, while service tax and excise duty collections were Rs 8,998 crore and Rs 13,700 crore.The government has fixed the target of indirect tax collection, comprising customs, excise and service tax, at Rs 5.65 lakh crore for 2013-14.In the 2012-13 fiscal, the government had revised the indirect taxes target to Rs 4.69 lakh crore as against the Budget estimates of Rs 5.05 lakh crore.http://www.business-standard.com/article/economy-policy/indirect-tax-collection-up-3-8-in-april-may-113061700864_1.html18 Jun 2013 00:00:00 GMTThe current number of people who pay taxes in the country is ?too small? and the Income Tax department will focus on non-filers and stop-filers to increase government?s revenue collection, newly appointed CBDT chairperson, Sudha Sharma told her officers today.Sharma, a 1976 batch-IRS officer, in her first communication to the Income Tax department after taking over the top post of the Central Board of Direct Taxes (CBDT) this month, also doubted the accuracy of the latest data that only 42,800 people in the country have an annual income of more than Rs one crore.http://www.thehindubusinessline.com/economy/current-taxpayers-number-too-small-cbdt-chief/article4823373.ece18 Jun 2013 00:00:00 GMTThe EU and United States are set to launch negotiations on Monday to create the world's biggest free-trade pact despite a hard line by France to protect its film and culture sectors from Hollywood.Such a trade deal is touted as a potentially huge boost to business, economic growth and job creation, but the culture issue is seen as potentially offering a bargaining chip to the US side.President Barack Obama and European leaders gathered at the G8 summit in Northern Ireland prepared to announce the formal start of talks on the pact, just days after the EU thrashed out a last-minute deal to keep the French happy.http://www.globalpost.com/dispatch/news/afp/130617/eu-us-launch-talks-worlds-biggest-trade-pact18 Jun 2013 00:00:00 GMTDave Schoch, President of Ford Asia Pacific, recalls a defining moment for him and Ford some time ago. Earlier, as CFO, when he was asked to take over as president for the region, he asked one question of the Ford top brass: whether it was committed to growth in the Asia Pacific region and to markets such as India and China.He got his answer in hard cash. Ford, which had invested $1 billion in India, is investing another billion dollars to set up an engine and assembly plant in Sanand, Gujarat, from where it will start production next year.http://www.thehindubusinessline.com/companies/asiapacific-to-be-centre-of-fords-growth-strategy/article4823378.ece18 Jun 2013 00:00:00 GMTIf the markets expected the Reserve Bank of India (RBI) to cut policy rates, then the markets were irrational. There are two reasons why May's wholesale price index (WPI)-based inflation of 4.87% ? of which much was made ? is misleading. First, directly or indirectly, 50% of the WPI basket is made up of imported products. Even if global commodity prices don't increase, as they might not any time soon for some product groups, the sharp rupee depreciation will have an effect.http://economictimes.indiatimes.com/opinion/comments-analysis/no-reason-for-rbi-to-cut-rates-govt-just-not-convincing-about-the-india-story/articleshow/20640209.cms18 Jun 2013 00:00:00 GMTSinking like a stone - or a skydiver - the rupee has lost nearly 10% value against the dollar since May 6. While the initial slide could be attributed to "sudden" dollar strength, the acceleration, since May 22, was clearly a result of Federal Reserve chairman Ben Bernanke's comment that he may slow down on bond purchases. This raised the spectre of higher US interest rates and led to an exodus of funds from many emerging economy bond markets - India, too, saw over $2 billion flying out in a matter of 10 days.Interestingly - and unsurprisingly - we have had two other recent "sinking-like-a-stone" bouts by the rupee. The most recent was in August 2011, when the US debt downgrade followed by the exploding of the European sovereign debt crisis (courtesy Greece) hit emerging markets like a bomb.http://economictimes.indiatimes.com/opinion/comments-analysis/rupee-depreciation-relax-the-currency-really-hasnt-fallen-that-much/articleshow/20640300.cms18 Jun 2013 00:00:00 GMTThe government is considering banning non-financial companies from running deposit schemes as part of a move to strengthen the financial sector and protect millions of low-income investors who often get duped into buying unlicensed products promising unrealistic returns. "It is being discussed if outright banning of such companies can be easily implemented," a senior official, who did not wish to be named, said, referring to regulations being deliberated upon by an inter-ministerial group. http://economictimes.indiatimes.com/news/economy/policy/government-may-ban-nbfcs-from-running-deposit-schemes-to-protect-investors/articleshow/20623620.cms17 Jun 2013 00:00:00 GMTIndia's services exports in April 2013 stood at $12.84 billion, up 22.5 per cent over $ 10.48 billion reported in corresponding period of last fiscal, according to data released by Reserve Bank of India.According to the data, during 2012-13 fiscal the services receipt amounted to $133.43 billion while imports of services were valued at $80.49 billion during 2012-13 (April-March).http://articles.economictimes.indiatimes.com/2013-06-16/news/40009056_1_provisional-aggregate-monthly-data-rbi-releases-services-exports17 Jun 2013 00:00:00 GMTGold traders turned bearish for the first time in a month as investors reduced holdings in exchange-traded products for an unprecedented 17th consecutive week and India, the biggest buyer, announced curbs on imports. Eighteen analysts surveyed by Bloomberg expect prices to fall next week, with 14 bullish and four neutral, the largest proportion of bears since May 17. Investors sold 497.2 tonne valued at about $22 billion through ETPs since February 8 and the 2,117.96 tonne left is the least they have held since March 2011, data compiled by Bloomberg show. http://economictimes.indiatimes.com/markets/commodities/gold-traders-turn-bearish-as-investors-pare-holdings/articleshow/20624682.cms17 Jun 2013 00:00:00 GMTSome key cancer drugs, antibiotics and medicines to treat cardiovascular diseases and tuberculosis are set to become cheaper by up to 50 per cent within the next 45 days. The National Pharmaceutical Pricing Authority (NPPA) will soon notify prices of as many as 150 packs of essential medicines in line with the new pharma pricing policy, according to official sources. Once the new price notification is in place, the maximum retail prices (MRPs) of many cancer drugs will fall 10-30 per cent on an average ? some as much as 50 per cent. Similarly, prices of cardiovascular drugs will come down 20-30 per cent, while those specifically used as anti-hypertension medicines will get 15-30 per cent cheaper. According to an official, prices of antibiotics will see a major change. ?The range of price cut in antibiotics will be 15-50 per cent, depending on strength,? he said. For instance, the MRP of paracetamol, a key analgesic used for pain relief, would drop 25-55 per cent. While paracetamol injection will get 25 per cent cheaper, prices of syrups and tablets will fall 35 and 55 per cent, respectively.http://www.business-standard.com/article/companies/prices-of-key-drugs-to-be-cut-by-up-to-half-113061600219_1.html17 Jun 2013 00:00:00 GMTAirAsia today revealed it had appointed ex-chairman of the Tata Group, Ratan Tata, as chief advisor to its India board.?I am pleased to announce Ratan Tata as the chief advisor to the board of AirAsia India. A legend in every sense. Building a powerful team,? AirAsia?s chief executive officer (CEO) Tony Fernandes said today.?Persuading Mr Tata to be advisor has not been easy. Critical we have someone of his massive experience to help me chart AirAsia India.?AirAsia will announce the appointment of the chairman for its planned domestic airline in a day or two.Fernandes said the chairman would be ?someone who has redefined many parts of India. A towering man who brings unbelievable experience to the AiraAsia India board.?http://www.business-standard.com/article/companies/airasia-appoints-ratan-tata-chief-advisor-113061600392_1.html17 Jun 2013 00:00:00 GMTIn a make-or-break scenario for signing of the free trade agreement (FTA) with the European Union, India has offered to drastically cut Customs duties on wines and spirits to 40 per cent from the current 150 per cent.The offer - made by Commerce and Industry Minister Anand Sharma to EU trade commissioner Karel de Gucht on the sidelines of the Organisation for Economic Co-operation and Development summit in Paris recently - was huge, compared to India's earlier proposal to cut the Customs duty to 80 per cent. It would mean up to a 73-percentage-point cut in India's Customs duty.http://www.business-standard.com/article/economy-policy/india-offers-to-slash-import-duty-on-wines-spirits-to-40-113061700046_1.html17 Jun 2013 00:00:00 GMTIndia has approached half a dozen foreign jurisdictions, including Singapore and some tax havens, for banking and other financial details of about 500 individuals and entities that might have ?secret offshore accounts? at those places. The ?names and listed addresses? of as many as 505 India- linked entities, including businessmen and companies from the country, have been made public after a global expose on secret offshore accounts by US-based rights group, the International Consortium of Investigative Journalists (ICIJ).The addresses of Indian entities and individuals, according to the ICIJ expos?, have addresses of upmarket localities of account holders from Delhi, Mumbai, Bangalore, Kolkata, Chennai, Hyderabad, Pune, Ahmedabad, Baroda, Surat, Chandigarh and many other Indian cities and a few other moffusil locations.http://www.business-standard.com/article/current-affairs/india-approaches-half-a-dozen-tax-havens-on-global-black-money-expose-113061600103_1.html17 Jun 2013 00:00:00 GMTCommerce & Industry Minister, Anand Sharma today said his ministry would move the Cabinet for further liberalisation of Foreign Direct Investment (FDI).Sharma told reporters here that he would chair a retail round table involving heads of Indian companies and foreign investors on June 27, to seek views on implementation issues and to address their concerns, if any. After the stakeholder consultation, an appropriate view would be taken on implementation-related aspects, he said. The meeting would particularly discuss FDI in multi-brand retail (MBRT).http://www.business-standard.com/article/economy-policy/will-move-cabinet-for-further-fdi-liberalisation-says-sharma-113061700034_1.html17 Jun 2013 00:00:00 GMTOver the last few months, the ministry of petroleum and natural gas (MoPNG) has cleared around 200 pending management committee (MC) resolutions involving oil and gas blocks operated by both public and private companies, from as far back as 2004. In April alone, around 88 pending MC resolutions were cleared. These clearances could pave the way for unlocking $10-12 billion of investment in developing these oil/gas fields over the next five to seven years should the firms find the oil/gas they believe is in the areas they plan to explore.http://www.financialexpress.com/news/oil-ministry-clears-10-bn-worth-of-pending-projects/112982617 Jun 2013 00:00:00 GMTIn an attempt to woo sovereign wealth funds (SWFs) and pension funds to India?s infrastructure debt funds (IDFs), the finance ministry is planning to set up a $300-million ?feeder fund? with the help of the UK government.Sources told FE that a feeder fund, the size of which could be enhanced in future, will be listed on the UK stock exchange, and pool in funds from SWFs and pension funds in order to lend to Indian infrastructure projects at a 3 to 4% interest rate, much lower than the prevailing domestic interest rates.A senior government official said the fund can finance projects in foreign currency or in rupee denominated debt, depending on who is taking the burden of hedging cost.http://www.financialexpress.com/news/finmin-plans-300million-fund-with-british-help-to-lure-swfs-pension-funds/112983317 Jun 2013 00:00:00 GMTThe Central Board of Direct Taxes (CBDT) has formally written to British telecom major Vodafone, agreeing to enter into a non-binding conciliation to resolve the long-standing tax dispute. ?The income tax department has written to Vodafone, agreeing to enter into a non-binding conciliation to resolve the long-standing tax dispute? said a senior CBDT official.Both sides will soon appoint representatives to carry out the negotiations, he said further.Seeking to resolve the long-standing tax dispute with Vodafone, the Cabinet earlier this month had approved a proposal for non-binding conciliation with the British telecom major, the outcome of which will ultimately be vetted by Parliament.http://www.financialexpress.com/news/cbdt-dials-vodafone-on-agreeing-to-conciliation/112983617 Jun 2013 00:00:00 GMTWhen do you take the addict off the methadone?That?s essentially the dilemma facing the US Federal Reserve?s 19 policy makers when they meet in Washington this week.Since the height of the financial crisis in 2008, the US economy and everyone with a stake in it have become hooked on the massive amounts of stimulus injected by the US central bank.Now, though, consensus is building among policy makers that the time is nearing to adjust their US$85 billion-a-month asset purchase program, dubbed quantitative easing, but divisions remain over just when to start reducing the dosage.http://www.scmp.com/business/banking-finance/article/1262758/withdrawal-syndrome-sparks-anxiety-fed17 Jun 2013 00:00:00 GMTBanking business in India grew 15 per cent in 2012-13 compared with 17.6 per cent in 2011-12 as real GDP growth decelerated from 6.2 per cent to 5 per cent.The extent of corrosion in business growth can be appreciated if we consider the growth of the real economy and banking business in the preceding year. The business growth was as high as 25.7 per cent in 2010-11 when growth registered a sturdy 9.3 per cent. The numbers reinforce the notion that behaviour of the banking business mirrors the performance of the real economy The deceleration in business growth in 2012-13, however, has not been uniform across the banking spectrum. Banks in India can be classified into two broad composite categories ? public sector banks and private banks.http://www.thehindubusinessline.com/industry-and-economy/banking/private-banks-score-over-public-sector-peers-in-201213/article4820493.ece17 Jun 2013 00:00:00 GMTRepublican Gabriel E. Gomez and Democrat Edward J. Markey share a common belief that gridlock in a broken Washington, D.C., is a drag on the country?s economy. But the two US Senate hopefuls otherwise part ways on issues that affect American commerce and jobs. Markey supports increased taxes on the wealthy, while Gomez opposes them. Gomez, citing a need for a balanced budget, would not vote to increase the country?s debt limit without also cutting spending. Markey would, saying he does not ?believe in holding the full faith and credit of the US hostage for political gain.?http://www.bostonglobe.com/metro/2013/06/16/gomez-markey-contrast-sharply-economy-jobs/vbrGMxBwqHPUN7W1m4X6HI/story.html17 Jun 2013 00:00:00 GMTAs President Obama begins an annual meeting with the leaders of some of the world?s richest nations on Monday in Northern Ireland, the economic-policy gulf that has divided them since the global crash in 2008 has narrowed significantly ? just not exactly in ways that the White House would have liked.http://www.nytimes.com/2013/06/17/business/economy/for-g-8-meeting-talk-of-economy-but-syria-looms-large.html?_r=017 Jun 2013 00:00:00 GMTA further pick-up in the economy is in prospect with business confidence rising, consumer spending growing and pressure on household finances easing, according to survey data published on Monday.http://www.telegraph.co.uk/finance/economics/10123713/Economy-to-pick-up-as-spending-and-business-confidence-rise.html17 Jun 2013 00:00:00 GMTReview of Prudential Guidelines on Restructuring of Advances by Financial Institutions (FIs)http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8037&Mode=017 Jun 2013 00:00:00 GMTAuction for Sale (Re-issue) of ?7.16 per cent Government Stock, 2023?http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8040&Mode=017 Jun 2013 00:00:00 GMTAuction for Sale (Re-issue) of ?8.97 per cent Government Stock, 2030?http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8039&Mode=017 Jun 2013 00:00:00 GMTAuction for Sale (Re-issue) of ?8.83 per cent Government Stock, 2041?http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=8038&Mode=017 Jun 2013 00:00:00 GMTCentral government employees are in for a disappointment as the Centre is at present not considering any move to raise the retirement age to 62 years. A senior official in the Ministry of Personnel, Public Grievances and Pensions, which acts as nodal department for personnel matters, said there was no such proposal to increase the age for superannuation of government employees.http://economictimes.indiatimes.com/news/economy/policy/no-change-in-retirement-age-of-government-employees-centre/articleshow/20623090.cms17 Jun 2013 00:00:00 GMTMillions of taxpayers who file income-tax returns in electronic form may no longer have to post the ITR-V form to Bangalore. The Central Board of Direct Taxes (CBDT), administrative authority of the income-tax department, will now instead introduce electronic verification of these online returns. The new measure, expected to be operational within this financial year, will save the taxpayer from the hassle of sending the paper document by post and tracking its acknowledgement. http://economictimes.indiatimes.com/personal-finance/tax-savers/tax-news/taxpayers-may-not-have-to-post-income-tax-returns-paper/articleshow/20623021.cms17 Jun 2013 00:00:00 GMTThe timely onset of monsoon in most parts of the country has led to a reduction in electricity demand by up to a fifth, improving power supply and easing pressure on prices. Delhi, which has the highest per capita power consumption in India, saw a drop in demand to about 4,500 MW of electricity on Saturday compared with the highest figure of 5,653 MW recorded on June 6. "Demand for electricity may rise only if the humidity increases between showers," said an executive with BSES Delhi, adding that demand had declined by 15-20% over the past week. http://economictimes.indiatimes.com/news/news-by-industry/energy/power/timely-monsoon-arrival-leads-to-slump-in-power-demand/articleshow/20623478.cms17 Jun 2013 00:00:00 GMTState-owned monopoly miner Coal India is seriously considering acquisition of two Australian companies for over $4 billion (about Rs 23,000 crore), a move that will enable it to import 28 million tonnes high quality thermal coal a year. CIL has sent the proposals to pick majority stakes for $2 billion each in the two companies, with annual output of 12 million tonnes and 16 million tonnes, respectively, to the company's foreign acquisition committee, a senior official of the coal ministry told ET. http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/coal-india-in-talks-to-acquire-2-australian-assets-for-4-billion/articleshow/20623302.cms17 Jun 2013 00:00:00 GMTThe Indian economy is in a crisis with growth slowing down, fiscal and current account deficits running high amid persistent inflation, says a study by an economic think tank. "The Indian economy is in a crisis. While the growth rate has been declining...the issue (of high CAD) gets amplified against the backdrop of slowing economy, high fiscal deficit and persistent inflation," National Council of Applied Economic Research said.http://economictimes.indiatimes.com/news/economy/indicators/indian-economy-is-in-a-crisis-says-ncaer/articleshow/20614184.cms17 Jun 2013 00:00:00 GMTThe government is considering relaxing investment norms for public sector units and may allow them to park their surplus funds in private sector mutual funds. Currently, PSUs are allowed to park their funds only in public sector mutual funds. "Now, the government wants to give some flexibility to PSUs and provide them level-playing field vis-a-vis private companies," an official told PTI.http://economictimes.indiatimes.com/news/economy/policy/govt-likely-to-relax-investment-norms-for-public-sector-units/articleshow/20623536.cms17 Jun 2013 00:00:00 GMTThe shareholders agreement between Abu Dhabi-based Etihad Airways and Jet Airways has been structured in such a way as to create a substantial role for the Middle-Eastern carrier in decision-making at the Mumbai-based airline, an ET study of the shareholders documents shows.The agreements does not confer any obvious rights or veto powers to Etihad but its concurrence will have to be taken for most decisions, including routine ones, lending credence to the belief that the airline will be some kind of a joint manager of the airline along with Naresh Goyal, who owns 51%.http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/jet-etihad-deal-mideast-carrier-to-enjoy-substantial-say-in-decisions/articleshow/20622366.cms17 Jun 2013 00:00:00 GMTForeign companies may not need government approval to hold up to 49% equity in Indian arms in most sectors, with the Manmohan Singh administration planning an overhaul of the foreign investment regime to attract overseas capital.A senior official said the government was considering raising the minimum foreign investment cap to 49% for all sectors, including defence production, except pension and insurance sectors, which will require legislative amendments. It also plans to do away with the requirement of mandatory approval from the Foreign Investment Promotion Board if foreign holding does not exceed 49%.http://economictimes.indiatimes.com/news/economy/policy/foreign-companies-may-not-need-fipb-nod-for-minority-stake-in-indian-arms-govt-to-raise-fdi-cap/articleshow/20622488.cms17 Jun 2013 00:00:00 GMTFor all its recent parleys on radical options to get back on track - relief on debt repayments, sale of some assets, sale of everything - Aircel is back to square one, where everyone who has something to do with it does not want to do anything more with it than they absolutely have to. The glimmer of hope arising from the multitude of talks took another beating on June 13, when India's top investigating agency announced it had moved forward in a corruption probe involving Aircel's Malaysian promoter Maxis and its owner T Ananda Krishnan. And India's seventh-largest telecom company, which was once gunning for top-three status,http://economictimes.indiatimes.com/news/news-by-industry/telecom/aircel-finds-the-going-tough-after-its-debt-burden-soars-makes-desperate-moves-for-survival/articleshow/20624254.cms17 Jun 2013 00:00:00 GMTSo near yet so far. That's how the markets feel on interest rate cuts by the RBI. Two weeks ago a 25 basis points cut in the repo rate, the rate at which the RBI lends to banks, seemed to be a certainty, but now it seems a remote possibility. A basis point is 0.01 percentage point.When domestic prices and government finances are appearing to be aligning to facilitate a series of interest rate cuts, the turn in global liquidity tide, fearing the end of cheap-money, has put a spoke in the works. "Looking at currency depreciation and the global situation,http://economictimes.indiatimes.com/news/economy/policy/rupees-fall-turn-in-global-liquidity-may-force-rbi-to-hold-rates/articleshow/20624426.cms17 Jun 2013 00:00:00 GMTRegulator Sebi is finalising new Anti-Money Laundering guidelines covering entities such as brokers and mutual funds to put in place stronger checks against possible cleansing of funds through capital markets.The guidelines, expected to be ready within a few weeks, will replace Sebi's existing AML/CFT (Anti Money Laundering and Combating the Financing of Terrorism) standards, which first came into effect about 10 years ago and saw the last major amendments in late 2010, a senior official said.http://economictimes.indiatimes.com/markets/regulation/sebi-finalising-new-anti-money-laundering-guidelines/articleshow/20615079.cms17 Jun 2013 00:00:00 GMT