Favouring a 'new Bretton Woods Agreement', International Monetary Fund chief Dominque Strauss-Kahn has said an early warning system to detect impending dangers to the world economy must be put together by international financial expertise.
Nobel Laureate Joseph E Stiglitz had predicted the global financial crisis and talked about its impact on emerging economies like India and China three years ago. In an interview with Business Standard at his Manhattan residence, Stiglitz says the crisis will last a couple of years.
The Indian economy would grow by 6-6.5 per cent in the current fiscal despite being affected by the global financial crisis and drought in the country, Prime Minister Manmohan Singh said on Tuesday.
The Communist Party of India Marxist, the largest among the Left parties, said the increase in FDI cap would lead to the outflow of Indian people's savings to lubricate speculative profits. It maintained that the Left had not allowed the UPA to take this decision for the past four years.
FDI inflows, in August last year, stood at $2.32 billion, the Reserve Bank said in its bulletin.
Prime Minister Manmohan Singh concluded his visit to China on Saturday after debuting at the 7th Asia-Europe meeting Summit, where he held talks with several world leaders on issues of international concern, including terrorism and global financial crisis.
The global financial crisis has inflicted at least a year's delay on the Indian IT outsourcing industry's drive to reach its short-term revenue forecasts, with key markets in the US and Europe suffering from the financial downturn.
A series of interest rate cuts in India has failed to lead to cheaper commercial lending, leaving Asia's third largest economy to grow at only 6 per cent this year, the central bank said on Tuesday.
According to the figures released by industry, GSM operators added 7.69 million new subscribers, while CDMA operators added 2.34 million new users taking the total mobile subscriber base to 310 million. Out of the 310 million, GSM subscriber base stood at 233 million, with a market share of 75 per cent.
The heady days of easy credit and sky-high wages are ending in Europe with the global financial crisis driving sports clubs and authorities to change course. Already saddled with debts, many European soccer clubs will now find it increasingly difficult to have access to credit.
However, passenger traffic between the two sectors would be served via Jet Airways' London Gateway in co-operation with partner airlines, Jet Airways said. Jet Airways has already announced a code share partnership with United Airlines with convenient connections between Mumbai and several US points via London in both directions, the company said.
The government is considering a sovereign long-term dollar-denominated bond overseas to raise funds to ease Indian banks and companies' access to liquidity, which has been drying up owing to the global financial crisis.
In June this year the figure was at $2.58 billion. However, the total inflows during the April-July period contracted by about 15 per cent to $10.53 billion over the same quarter of 2008-09, because of accruals in the opening months of the fiscal. In the first four months of 2008-09 it was at $12.32 billion.
The bank, however, plans to raise around Rs 500-600 crore (Rs 5 to 6 billion) to augment its tier-II capital in the domestic market. Union Bank of India, which had planned a rights issue to bolster its capital base, had deferred its plans even before the US financial meltdown started.
While a coordinated aggressive monetary easing from the central banks is most likely to offer some respite in the near-term, it is unlikely to improve the sentiments.
VIX is meant to indicate investors' perception of the annual market volatility over the next 30 calendar days. The higher the value, the higher is the expected volatility and vice versa. VIX touched its historical peak of 85.13 on November 17, 2008, in the aftermath of the collapse of Lehman Brothers. In the past five years, it has stayed below 30.
Former champions Renault and Williams unveiled their 2009 Formula One cars on Monday before testing at the new Algarve Motor Park circuit in southern Portugal.
Even as contemporary society prizes personal happiness above all else, a fascinating study suggests that sadness is good for the health.
To be able to tide over the current crisis, automobile manufacturers have waged a war against all cost heads.
The World Bank warns that the world will see a slower growth that will require tighter and better supervision of the financial system.
Economic think-tank Centre for Monitoring Indian Economy has revised its forecast for industrial production growth in 2008-09 to 4.5 per cent from 6.3 per cent as the global economic crisis has cast shadow on its projection.
With industrial production contracting by 0.4 per cent in October, for the first time in 15 years, and the exports declining by over 12 per cent during the month, the government came out with a stimulus package on December 7 to spur growth and help the industry combat the impact of global financial meltdown. As part of the stimulus package, the government cut excise duty by 4 per cent across the board, except on petroleum products.
The MD and CEO of ICICI speaks on how life will change and the bank's strategy going forward.
Bid date for Allahabad project postponed on fears of higher tariff quotes.
The airline will lease an aircraft from France to re-launch these operations and will fly daily to Dubai, Trichy and Trivandram with the resumption of the flight, the state owned Daily News quoted an official as saying. It is expected that the government would once again come out to fund the airline, the newspaper reported.
As far as the overall investment in the economy is concerned, there does not seem to be much difficulty this year but concerns are there that new projects may not be started from the next fiscal. The Reserve Bank is expected to signal cut in interest rates by banks on Saturday. It is expected to slash both short term rates, repo and reverse repo, at which it gives and borrows money from banks in exchange of government securities.
The declining output of the manufacturing sector pulled down the economic growth rate in the fourth quarter of 2008-09 to 5.8 per cent and 6.7 per cent in the entire fiscal.
Risk perceptions will impact India's risk-rating, say experts.
Exuding confidence that India had the 'resources and the wisdom to grapple and deal' with the crisis, the prime minister said all instruments of public policy -- monetary, fiscal, public investment and exchange rate -- 'will be deployed' to tackle it.
In the nine weeks since Lehman Brothers filed for bankruptcy, global syndicated loan volume declined 37 per cent as against the nine weeks prior period to Lehman's collapse, deal tracking firm Dealogic said. Similar trend was witnessed on the bond market as well. In the nine weeks after the fall of Lehman the global syndicated loan volume dipped 41 per cent as compared to the nine weeks prior to the US investment bank's collapse, Dealogic added.
"With the ongoing economic downturn and the resultant crash in oil prices, the valuation of oil and gas companies has decreased and this offers Indian companies the opportunity to buy global assets at more reasonable prices than earlier," said Dilip Khanna, partner, Ernst & Young's Oil and Gas Practice. Crude oil prices, after hitting $147 a barrel in July, have dropped to around $55 because major oil-consuming nations have slipped into economic recession.
The Planning Commission has scaled down the growth rate for the Eleventh Plan ending 2012 to 8.1 per cent from 9 per cent in the wake of the global financial crisis that slowed the pace of economic expansion.
Government-estimated growth for 2008-09 is 7.1 per cent. However, as per RBI estimates, GDP growth would be around 6 per cent in 2009-10.
NRI steel tycoon Lakshmi Mittal has suffered a $50 billion decline in the value of shares he holds in the ArcelorMittal following the global financial meltdown, a leading economic daily has claimed.
IT industry body Nasscom on Monday said the country's IT companies, which exports 90 per cent of software and services to the US and Europe, may see a decline in new orders due to the global financial crisis.
Keep a war chest ready to take advantage of the likely dips till the general elections.
Bullish on the Indian market despite global economic downturn, Swedish luxury carmaker Volvo on Wednesday said it will enhance its product portfolio in the country, including a premium sports utility vehicle, which it plans to launch sometime next year.
Karl-Ludwig Kley, chairman of the executive board, Merck, spoke to Business Standard about the company's plans and how it is weathering the global financial crisis.
Finance Minister P Chidambaram on Friday cancelled his visit to Washington for attending the Fall meeting of the World Bank and IMF on Monday.
The country received FDI of $14.6 billion during April-August 2008 against $6.5 billion a year ago. The FDI target for 2008-09 is 35 billion dollar, while the actual inflows during the previous year were $24.57 billion.
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