Troubled Galaxy Destroyed Dreams, Chapter 428
Palash Biswas
http://indianholocaustmyfatherslifeandtime.blogspot.com/
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News results for dubai crisis 2009
Shares slump after Dubai cash crisis - 6 hours ago
By Graham Hiscott 27/11/2009 Almost £44billion was wiped off the value of Britain's biggest companies yesterday as a financial crisis in Dubai sent ...Mirror.co.uk - 3778 related articles »
Indian banks say Dubai crisis unlikely to affect them - Times of India - 138 related articles »'Dubai crisis not to impact growth, but may hit remittances' - Daily News & Analysis - 38 related articles »Dubai's six-year building boom grinds to a halt as financial ...
13 Feb 2009 ... 26 Nov 2009. Cost of insuring Dubai's debt soars ... 6 Apr 2009. Gulf crisis forces Indian construction workers home from Dubai ...
www.guardian.co.uk/world/2009/feb/13/dubai-boom-halt - Cached - Similar -Laid-Off Foreigners Flee as Dubai Spirals Down - NYTimes.com
12 Feb 2009 ... As layoffs hit Dubai's foreign workers, their departure is making parts of ... 2009); Emirates See Fiscal Crisis As Chance to Save Culture ...
www.nytimes.com/2009/02/12/world/middleeast/12dubai.html - Similar -Global Economic Crisis Hits Dubai | News | English
Friday, 27 November 2009; Latest News: Select Your Language, Afan Oromo, Albanian ... Global Economic Crisis Hits Dubai. Mandy Clark | Dubai 05 March 2009 ...
www1.voanews.com/.../a-13-2009-03-05-voa28-68772492.html - Cached -The Emirates Economist: The Guardian's take on the Dubai crisis
Friday, February 13, 2009. The Guardian's take on the Dubai crisis ... posted by John B. Chilton at 2/13/2009 09:40:00 PM ...
emirateseconomist.blogspot.com/2009/.../guardians-take-on-dubai-crisis.html - Cached - Similar -Dubai's crisis-driven used luxury car sales ease | Industry ...
9 Jun 2009 ... Thousands of expatriates have been made redundant in the Gulf trade and tourism hub of Dubai since the financial crisis triggered a real ...
www.reuters.com › ... › Business & Finance › Industry Summits - Cached - Similar -Crisis hits Dubai's shopping fest - Travel - BrisbaneTimes
10 Feb 2009 ... The tills have failed to jingle at this year's Dubai Shopping Festival. - Brisbane Times.
www.brisbanetimes.com.au/articles/2009/02/.../1234028012419.html - Similar -Dubai Crisis 2009: Latest News, Photos and Videos
27 Nov 2009 ... Explore Profile of Dubai Crisis 2009 at Connect.in.com, see Dubai Crisis 2009 web of connections, news, videos, photos and post your ...
connect.in.com/dubai-crisis-2009/profile.html - 1 hour ago -gulfnews : Dubai's growth to slow to 6% in 2009 amid crisis
25 Nov 2008 ... Dubai's growth to slow to 6% in 2009 amid crisis. Dubai: Dubai's GDP grew 168 per cent in the period from 2000 to 2006, for an annual growth ...
gulfnews.com/.../dubai-s-growth-to-slow-to-6-in-2009-amid-crisis-1.144979 - Cached -Economic Crisis in Dubai | Tammy Camp
15 Apr 2009 ... It took a recent trip to Dubai for me to get my first true, honest glimpse of the current economic crisis that is so profoundly hitting ...
www.tammycamp.com/2009/.../economic-crisis-in-dubai.html - Cached - Similar -Fin24.com>>Market Currencies>>Dubai crisis rattles rand
Dubai crisis rattles rand. Nov 26 2009 18:43 ... Debt problems in Dubai also had an effect, hitting financial markets across the board on Thursday, ...
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Indian banks say Dubai crisis unlikely to affect themTimes of India - 3 hours ago PTI 27 November 2009, 04:31pm IST MUMBAI: The Dubai debt crisis is unlikely to have any major impact on the country's banking sector as Indian banks have an ... ICICI Bank says no material exposure to Dubai Business Standard No impact of Dubai crisis on Indian realty market: DevelopersTimes of India - 4 hours ago PTI 27 November 2009, 04:02pm IST NEW DELHI: A majority of big real estate developers in India said they are insulated from the financial crisis in Dubai ... Indian realtors unfazed by Dubai crisis India Business Blog (blog) Rajesh Exports slumps as Dubai crisis may dent businessIndia Infoline.com - 6 hours ago Rajesh Exports' chairman and managing director, Rajesh Mehta was quoted as saying that Dubai crisis will affect the business as a whole, but the company is ... Sensex stems losses as traders shrug Dubai scare Economic Times Dubai debt crisis...Sensex plunges further India Infoline.com Nifty plunges below 4850; Siemens, DLF, L&T fall Economic Times Govt puts shipping sector on alert post Dubai financial crisisEconomic Times - 1 hour ago "Alerted after reports of Dubai financial crisis, we have begun an internal examination of the situation. DP World, owned by Dubai government has ... Govt promises to bring Dubai World out of crisis Economic Times 'Dubai crisis not to impact growth, but may hit remittances'Daily News & Analysis - 1 hour ago PTI New Delhi: The Prime Minister's Economic Advisory Council (PMEAC) today said the Dubai crisis would not affect the country's growth rate, but admitted ... Dubai crisis may not impact remittances: finsecy Business Standard Dubai World crisis bad for us: Kerala finance minister Online Latest News (blog) Dubai govt raises $5-bn from bondsEconomic Times - 1 hour ago Berro further said "we have subscribed to Sukuk worth USD 2.5 billion because Dubai has come strongly out of the financial crisis. ... Video: World Markets Tumble on Dubai Debt, Weak Dollar  The Associated Press What is Dubai and who runs it? BBC News Dubai debt tremors felt in bullion market; gold tumblesEconomic Times - 1 hour ago Silver prices too crashed on the impact of the crisis. "The fall in gold was mainly attributed to the (debt) crisis as there is no demand existing at higher ... Gold price caught between Dubai crisis, rising dollar Commodity Online Gold nosedives over Rs 300 per 10 gram on Dubai debt concern Economic Times Dubai Crisis Means 'Correction' to Mobius, Risk Aversion to DasBloomberg - - 3 hours ago The MSCI Emerging Markets Index has slumped 4.7 percent in the past two days after more than doubling from its 2009 low in March. ... Gordon Brown: Dubai crisis can be containedCitywire.co.uk - - 1 hour ago Prime Minister Gordon Brown said today he and other world leaders are confident the Dubai debt problems that ... Will Dubai's crisis trouble Group 5 and Murray & Roberts?Moneyweb - 2 hours ago The Middle East was worth just over R5bn in revenue for financial year 2009. The following projects were cancelled in Dubai due to the financial crisis: | |
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Food inflation up at 15.6 pc as potato prices soar
Indian Express
Following last week's relatively marginal increase in food prices, the annual rate of inflation of food rose by 1.6 per cent this week. The trend of growing prices, based on the harvest struggles of a dry monsoon season, will likely result in monetary action from the Reserve Bank of India (RBI) in January, experts believe.
After the food price index's increase of just 2.5 points last week, prices continued their rise this week with a 4.5 point increase in food articles, translating to a 1 per cent (milk and wheat) to 15 per cent (urad and poultry chicken) increase in costs for consumers.
"The pace of food price inflation seems to be back up again, after taking a break. That doesn't take away from the fact that we'll be looking at 7 per cent inflation by the end of the fiscal year," said Jyotinder Kaur, chief economist for HDFC Bank. "We will likely see some monetary action from the (RBI) governor in January; either a (cash reserve ratio) hike or a reserve repo-rate hike, but not both." The return to an expected rate of high inflation in November points to October's tempered rate as simply an aberration in the upward trend. The 7 point increase in the cost of food this month has already surpassed the entire month of October's inflation of just 6.8 points, compared to October 2008. Although November may not meet the 32.7 point bump in August, compared to the same month in the previous year, topping October's inflation numbers seems to be inevitable.
Some experts had argued that the spike in food prices would curb in the coming weeks, however inflation of primary articles would continue, based on ever-inflating cereals. However this week's data points to a reverse in that premonition — cereals increased just 1 point or 0.5 per cent — resulting in broader concerns over the cost of food articles in general. "The bottom line here is that we were looking up at a firming of prices much before the drought hit us, the drought just exacerbated the situation," Kaur said.
ENS Economic Bureau
Pranab, BJP spar over 26/11 relief
The ruling UPA and the Opposition clashed in the Lok Sabha on the first anniversary of the 26/11 attack, with Leader of House Pranab Mukherjee accusing the BJP of politicising the war on terror after Leader of Opposition L K Advani charged the government with not doing enough for the victims.
"You are making politics of it. You made politics on earlier occasions and you were paid back in your own coin. You are making politics on 26/11, and you will again be paid back in your coin," said Mukherjee, after Advani raised the issue of relief and rehabilitation for the 26/11 victims during Zero Hour.
Advani had said the government was found wanting in providing relief. "Out of 403 people eligible for compensation, only 118 have received relief cheques and out of 64 eligible for railway jobs, only 32 have received offers so far," Advani said. "Out of the 12 different agencies coordinating the relief work, four � the PMO, the Home Ministry, the Railways, and the Railways Claims Tribunal � are from Central government. The relief work should, ideally, be coordinated by a dedicated cell, headed by an OS D, in the Home Ministry." After Advani finished, BJP's Ananth Kumar demanded the Leader of the House reply to it. Mukherjee, however, said he had come to the House specially to listen to the Leader of the Opposition, but "not every Zero Hour reference can be responded (to)".
As Ananth, supported by party MP Harin Pathak, kept up his demand, Speaker Meira Kumar sought to draw the line. She warned the members against such partisan exchanges on a "solemn day". "It's a solemn day today, and I cannot force Leader of House to respond (to what Leader of Opposition has said). The Leader of the House has noted the observations, and even assured (of follow-up action)," said the Speaker, reminding the House that they had begun the day by observing a two-minute silence in memory of the victims.
Express news service
Mumbai crime branch chief threatens to quit
Mumbai: Amid reports about Mumbai Police Crime Branch Chief Rakesh Maria's offer to resign if Home Ministry does not clarify allegations levelled against him by Vinita Kamte, the slain IPS officer Ashok Kamte's widow today said she stands by each and every word in the book written by her.
"I'm ready to face any questions raised by anyone about everything written in my book. I stand by each and every word," Vinita told PTI over phone from Pune.
"My book is based on the facts given by the Mumbai police using the RTI Act," she said.
In her book, Vinita has criticised Maria for denying that he had guided her husband to Cama hospital where he fell to terrorists' bullets along with Maharashtra Anti-Terrorism Squad Chief Hemant Karkare and encounter specialist Vijay Salaskar.
http://news.in.msn.com/national/article.aspx?cp-documentid=3453327
Some two million Muslims headed to Muzdalifa on Thursday after spending the day at the plain of Arafat to prepare to cast stones at the devil in the most dangerous part of the annual haj pilgrimage.At Muzdalifa, the pilgrims will collect pebbles to throw at walls at the Jamarat Bridge on three occasions over the next three days in an act that symbolizes the rejection of the devil's temptations.
Indian policy-makers, the SLAVES Brahaminical, Committed to the Interests of Zionist War Economy of United States, are not really worried over the potential adverse impact on the country's economy because of the multi-billion-dollar debt default risk faced by Dubai World, ranked among the largest conglomerates in the region. Foreign Companies are being waited for further capital Inflow and Parliamentary Subversion is complete with belated Librhan Commision report. FIIs control the Markets and econmoy while Nuclear Energy Bill will clear the decks for US War Economy as Indo US Nuclear Deal is already HAPPENING with Zionist Barack Obama and Hindu Hillary Clinton reignong the galaxy Corporate Empire. Underworld Dubai connections have been hyped for so long and HIDDEN with surgical Precision. How may the Ruling Hegemony allow the Connections to be EXPOSED so violently nevertheless Indices reflect another story!However, Markets feel the Dubai heat, tank by over 590 points!On the otherhand, Cuba began its biggest military maneuvers in five years , saying they were needed to prepare for a possible invasion by the United States.Despite a thaw in U.S.-Cuba relations and assurances last week by President Barack Obama that the United States has no intention of invading the island 90 miles (145 km) from Florida, Cuba's state-run press quoted military leaders as saying there "exists a real possibility of a military aggression against Cuba."
Meanwhile, Indian Banks' Association (IBA) today said it has reached a broad agreement with bank unions to provide one more pension option and a salary hike, ending the 2-year-long stand-off between the two.Sugarcane farmers in Uttar Pradesh will sell their produce to sugar mills in Uttarakhand and Haryana if the state government did not raise the advised price to Rs.215 per quintal from the current Rs.165-Rs.170, a farmers' body said Friday.Britain Friday proposed to help India in the upgradation of Indian Air Force's (IAF) twin-engine Jaguar fighter jets, a defence official said. Atomic Energy Commission chairman Anil Kakodkar Friday inaugurated a zirconium complex set up by the Department of Atomic Energy to manufacture zirconium oxide and zirconium sponge.
Growing military ties between China and Pakistan are a serious concern to India, Defence Minister AK Antony said on Friday, in the latest display of a prickly rivalry between New Delhi and its neighbours.
The embattled Dubai government has successfully raised a further USD 5 billion from two Abu Dhabi banks as part of its long-term bond programme, signalling that investors are still showing trust in the oil-rich city-state.Sheikh Ahmed bin Saeed Al-Maktoum, chairman of the Supreme Fiscal Committee of the Dubai government, has said that the committee's decision to intervene in Dubai World is well-thought and planned, WAM news agency reported.
Indian stocks and the rupee skidded on Friday as Dubai's debt woes sparked fears over corporate exposure to a key trading partner and that foreign funds will lose their appetite for risk. Banking, property and construction-related shares were among those hardest hit, after Dubai said two of its flagship firms planned to delay repayment on billions of dollar of debt. Foreign investors have poured roughly $15 billion into Indian stocks this year, helping drive a 75 percent rally through Thursday, and were among the sellers on Friday.Dubai is shaking investor confidence across the Persian Gulf after it sought a six-month reprieve on debt payments that risked triggering the biggest sovereign default since Argentina in 2001. The move caused a drop on world markets on Thursday and raised questions about Dubai's reputation as a magnet for international investment.
Indian Realty BOOM is credited to Dubai mostly, it is well known fact and Bollywood Dubai connection has Never Been a Secret. However, toeing the India Incs Goverment of India,DLF, Unitech, Parsvnath Developers and Emaar MGF all said they have no exposure in Dubai, while Omaxe said it has an investment of Rs 40 crore which it has asked for refund.Meanwhile,Reliance Industries and Essar Oil were today joined by state-run IOC and ONGC in criticising the government''s "hotchpotch" fuel pricing policy which they alleged had ruined public sector firms and state finances, and demanded freeing of petrol and diesel prices immediately. The ad-hoc policy had driven private firms out of business, loaded future generations with Rs 150,000 crore bonds to repay, discouraged conservation, starved fuel retailer of cash and robbed firms like ONGC of Rs 50,000 crore that it could have invested in acquiring oil assets.
Government bond prices declined on fresh selling pressure from banks and corporates, while call rate ended higher at 3.30 per cent on the overnight call money market here today due to mild demand from borrowing banks. The call money rate finished higher at 3.30 per cent as against 3.25 per cent yesterday after moved in a range of 3.30 per cent and 3.00 per cent.
he Reserve Bank Governor D. Subbarao has said Friday that an assessment of the impact of Dubai's debt problems was needed before deciding on a response.
Interacting with the media persons here Rao said : "We should not react to instant news like this. One lesson of the crisis is that we must study the developments, and I think we must measure the extent of the problem there"
Commenting on its impact on India, Rao said : "I have requested my officials to study this, and if necessary we will certainly communicate in the public about what the implications likely are."
Earlier in the day, stocks tumbled, the rupee weakened and bond yields fell as Dubai's debt problems sparked concerns about corporate exposure and the risk of foreign investors repatriating funds.
Chavez, Ahmadinejad sign agreements!
President of Venezuela Hugo Chavez and Iranian President Mahmoud Ahmadinejad have consolidated a relationship here that the former called 'exemplary'. They signed new accords and gave speeches defending their cooperation.
In a signing ceremony for several joint projects at Miraflores Palace Wednesday, the two leaders agreed that 'accusations of violence' against them were a 'joke' before confirming that their cooperation was designed to 'build (a good) life' for their people and denouncing Washington's responsibility in conflicts and crisis situations around the world.
European stocks plummeted the most in seven months amid concern Dubai's proposal to delay debt payments may trigger the biggest sovereign default since Argentina in 2001.
Meanwhile,The global rating agencies S&P and Moody''s have downgraded the credit ratings for several government-related entities in Dubai on fears about the government''s failure to provide timely financial support to them. Standard & Poor''s Ratings Services and Moody''s have downgraded the government entities after the oil-rich city-state government said it aims to restructure the existing debt of Dubai World, its largest and most diversified investment vehicle, and real estate developer Nakheel.
S&P has downgraded the ratings for five Dubai government related entities--DIFC Investments, DP World, Jebel Ali Free Zone (FZE), Dubai Holding Commercial Operations Group LLC (DHCOG),and Emaar Properties PJSC. Moody''s Investors Service also downgraded a total of six government-related issuers and left them on review for further possible downgrade. Apart from five entities downgraded by S&P, the one additional entity whose rating has been downgraded by Moody''s is Dubai Electricity & Water Authority.
The rating agency said about its downgrading move "such a restructuring may be considered a default under our default criteria, and represents the failure of the Dubai government (not rated) to provide timely financial support to a core government-related entity." .
London Stock Exchange, whose largest shareholder is Borse Dubai Ltd, slumped the most since April. EADS, which is part-owned by the sheikhdom, fell 3.8%. Saint-Gobain sank 5.8%t after Goldman Sachs group recommended selling the shares.
The Dow Jones Stoxx 600 index retreated 3.2% to 240.09 at 4:33pm in London, the steepest drop since April, as only 19 stocks in the gauge rose. The measure plunged 44% in the six months after Lehman rothers Holdings' bankruptcy in September 2008 froze credit markets and worsened the first global recession since World War II. The VStoxx Index, which gauges the cost of using options to protect against declines in the Euro Stoxx 50, jumped the most in 13 months.
India growth story intact, deficit a concern , S&P declares!
Foreign fund flows into India are unlikely to reverse soon and jitters about Dubai's debt problems may not last long, an official at rating agency Standard & Poor's (S&P) told Reuters on Friday.
"I think the Indian economy has shown that it is pretty resilient and there aren't many growth stories in the world right now, so I think the money isn't going to disappear... but of course risks remain," Suzanne Smith, S&P's managing director of ratings, south and southeast Asia, said.
Foreigners had bought a record $17.4 billion worth of domestic shares in 2007 and they have so far bought about $15.3 billion in 2009.
"Among the companies we have credit ratings on ...I am not aware of any major exposure they have to Dubai," Smith added.
Dubai said on Wednesday it wanted creditors of state-owned Dubai World and its property subsidiary Nakheel, to agree to a debt standstill in a first step towards restructuring.
Dubai World, the conglomerate that spearheaded the emirate's breakneck growth, had some $59 billion in liabilities as of August. The news sent shockwaves globally, rekindling worries about the strength of global economic recovery.
"An event like this can have an effect on the market as a whole, but I don't really see that as long lived," Smith said.
S&P said its outlook for the Indian economy is positive although the poor monsoon season pulled growth numbers down a bit. It expects India to grow at 5.8 percent in calendar 2009 and at 7 percent next year.
FISCAL CONSOLIDATION
In February, though S&P retained India's BBB- long-term sovereign credit rating, the lowest rung of investment grade, it cut sovereign's outlook to negative, citing worsening government finances.
"We are still looking at what fiscal consolidation will occur in the medium-term and we are waiting to determine if that would be adequate," Smith said.
India's budget deficit is projected to hit a 16-year high of 6.8 percent of gross domestic product in fiscal 2009/10.
"There is a good potential for the divesture programme to help ease the deficit," she said, adding, it hinges on the government's willingness "to take probably very difficult steps".
Central bank data showed bank loans grew an annual 9.8 percent as at Nov. 6, much lower than the more than 20 percent earlier in the year. But the bank expects loans to grow at 18 percent by the fiscal year end in March 2010.
Smith said she does not expect an immediate rise in corporate funding costs if the central bank withdraws its accommodative policy stance, as current demand for credit was "not terribly high".
"Achieving the 18 percent credit growth projection would be very challenging," Smith said.
But Consultant Jones Lang LaSalle Meghraj Country Head Anuj Puri cautioned that if the corporate debt default in Dubai turns into a sovereign default, there would be real economic issues, which may not only hit India but others also.
"Indian property market is very robust and largely dominated by internal demand. So there will be no adverse impact on us," DLF Executive Director Rajiv Talwar said.
Emaar MGF, a joint venture between Dubai-based Emaar Properties and India's MGF, said its operations are only in India and the developments in Dubai would have no impact.
"Our business and funding plans are on track," a company statement said. Emaar MGF is in the process of coming up with an initial public offer.
"Emaar has not asked for any external support and maintains good financial strength. Emaar Properties remains committed to its investments and Emaar MGF's business in India," it added.
Faced with funding crisis, Dubai government on Wednesday had asked creditors of state-owned Dubai World and property group Nakheel for a six-month standstill on interest payments on debts amounting to $80 billion.
Dubai Connection Exposed as Banks say Dubai crisis unlikely to affect them!Meanwhile, Core sector growth slowed down to 3.5 per cent in October against over 4 per cent in the preceding month and around eight per cent in August, as crude oil production continued to contract and steel as well as cement failed to show robust growth. "I would have expected the overall growth to be a little higher," Prime Minister''s Economic Advisory Council Chairman C Rangarajan said here.
RBI to ask banks about their exposure in Dubai World!Notwithstanding the UAE being India's top destination for exports, the government today put up a brave face stating financial concerns in Dubai would not impact the Indian economy and the country's real estate sector.
The Bombay Stock Exchange benchmark sensex tumbled over 590 points in mid-session today on frantic selling by funds on weakening global trend after Dubai's attempts to delay debt payment.
After losing 344 points in the previous session, the sensex plunged further by 590.07, or 3.45 per cent to 16,264.86 at 1300 hrs, with banking and realty stocks losing hefty ground.
Similarly, the wide-based National Stock Exchange index Nifty toppled by 176.55 points, or 3.29 per cent to 4,829.00.
Reliance Industries fell 4.78 per cent to Rs 1,013.70, ICICI Bank slid 4.41 per cent to Rs 827.30 and State Bank of India fell by 3.95 per cent to Rs 2,164.
All the other shares on the measure also fell leading to a 3.3 per cent slide this week, its first weekly decline in four.
The Reserve Bank today said it will ask banks to furnish details regarding their exposure in the Dubai World, a government-owned firm that has requested postponement of USD 59 billion.
"I don't think," said Commerce and Industry Minister Anand Sharma when asked whether the confidence erosion in Dubai would have ripple effect in India.
Sharma said the Indian economy is large and "I don't think developments in real estate sector in Dubai are going to impact it...Besides, the Indian real estate is doing well," he said.
The UAE, which has a large Indian population, is the country's largest export destination with shipments of about USD 24 billion in fiscal 2008-09.
Asked whether exports to the Middle East could be impacted, Sharma told reporters, "I hope not.
loan repayment, said RBI deputy governor Shyamala Gopinath here. At an IIM Ahmedabad event here, she said: "We will ask banks to furnish the details regarding their exposure in Dubai World," adding, "at present, I also do not have much information on the issue because the situation is still unfolding." On measures the apex bank is contemplating, she said, "we first need to understand the extent of the exposure of our banks. Once we have the details, we can comment." The announcement in the Gulf country has triggered a shock wave in the stock market across the globe. On Wednesday, the Dubai government-owned investment company Dubai World asked for a six month delay on repaying its USD 59 billion debts. This raised concern of the financial health of the once financially strong Gulf state. The crisis in the Gulf country has also hit India''s stock market which plunged of over 550 points in the Sensex at BSE at mid session today.
Crude oil production declined by 2.2 per cent at 2.85 MT from 2.91 MT a year ago. Core industry grew by just 3.5 per cent in October despite low base of two per cent last year.
It was in October last year that the impact of deepening financial crisis was felt on the domestic industry. Not so impressive growth rate in core industries in implies that industrial growth could be in single digit, principal economist at Crisil DK Joshi said.
For the first seven months of this fiscal till October core sector grew by 4.7 per cent against 3.3 per cent in the year-ago period. Core sector contributes to over 26 per cent to the IIP. However, some sectors like petroleum refinery, power generation and coal production did not perform as badly.
The petroleum refining grew by 7.2 per cent in October against 5 per cent a year ago. .
Dubai said on Wednesday it wanted creditors of Dubai World and property group Nakheel to agree to a debt standstill as it restructures Dubai World, the conglomerate that spearheaded the emirate's breakneck growth. Dubai World had $59 billion in liabilities as of August.
"Whenever this sort of situation arises you will see a flight to safety, but I think within the emerging markets space India and China clearly are the favourites, so to that extent they will be protected on the downside," said Manish Sonthalia, portfolio manager at Motilal Oswal.
The benchmark Sensex pared losses to 2.2 percent on buying at lower levels in mid-afternoon trade after falling as much as 3.8 percent, outperforming the 4 percent drop in the MSCI Index of non-Japan Asia.
India and the United Arab Emirates, of which Dubai is a member, are separated by the Arabian Sea and closely linked by the millions of Indians who work in the region. Indians make up about 40 percent of the UAE's population, accounting for 10 to 12 percent of India's inward remittances, CLSA said in a report.
The UAE was the second-biggest export destination for India during the nine months through December 2008, accounting for $14.6 billion, or 11.15 percent of India's total -- a share that has been rising and closing in on the United States.
"This event would be a trigger for investor risk aversion and that could slow down the flow of capital into emerging markets, and Indian stocks would be affected by that," said Gaurav Kapur, senior economist at ABN Amro Bank in Mumbai.
Minister for trade Anand Sharma said India's economy was unlikely to be hard-hit by the situation in Dubai. "India is a very large economy. I don't think some development in the real estate in Dubai is going to impact the Indian economy," he told reporters.
While Indian banks are heavily focused on the domestic market, they are active in handling remittances from overseas workers and India's banking index was down 3 percent.
Bank of Baroda, which had a total exposure in the UAE of around 100 billion rupees ($2.1 billion) according to its chairman, saw its shares fall about 7 percent. The mid-sized lender has 10 branches in the Gulf, more than any other Indian bank, according to CLSA, but the exposure is mostly related to remittances, the brokerage said.
SENTIMENT HIT
Several market players said the biggest impact of Dubai's difficulties would be on sentiment. "The market was expensive, and it was looking for a reason to correct, and Dubai happened to be one," said Anand Shah, head of equities at Canara Robecco Mutual Fund. "Fundamentally, we are not impacted. But, if the risk appetite comes off, the liquidity flow could reduce," he said.
Many Indian companies were quick to play down their exposure to Dubai. Engineering conglomerate Larsen & Toubro said it had exposure to Dubai of $20 million to $25 million. India's largest listed realty firm, DLF, and second ranked Unitech said they had no exposure to Dubai, and leading private bank ICICI Bank said it had no material exposure.
Real estate shares were down 3.83 percent. Nagarjuna Construction said it was slowing down its real estate operations in Dubai. "We have only one real estate project in Dubai, to develop 1.45 million sq feet ... and right now in the Dubai real estate market we are going slow on this project," Y D Murthy, executive vice-president, finance, said.
Emaar MGF, a joint venture between Indian financier MGF and the UAE's Emaar Properties, is one of several Indian property firms planning a listing. It has filed papers with the market regulator to raise about $830 million, about half the amount it had planned to raise in 2008.
Emaar MGF declined comment, saying it was in a silent period after having filed the prospectus for its share offering.
"For real estate per se, the pressure would be due to lack of investor appetite at a time when a slew of IPOs are lined by local real estate companies," ABN Amro's Kapur said.
The Dubai debt crisis is unlikely to have any major impact on the country''s banking sector as Indian banks have an insignificant exposure to the Gulf region, top bankers said. Banks understood to be having lending exposure to Dubai ---Bank of Baroda, ICICI Bank and State Bank of India--said their exposure to real estate firms in the Gulf region was either nil or insignificant.
"We have only 7-8 per cent of our total loan-book in the entire Gulf region, which amounts to Rs 10,000 crore. These accounts are well maintained and is unlikely to cause any kind of impact on the balance sheet," Bank of Baroda''s Chairman and Managing Director M D Mallya told PTI here.
Out of the total Gulf loan exposure, Dubai constitutes nearly half to the loan book, which comes to less than Rs 5,000 crore, Mallya said, adding that the industry needs to wait a few more days to get a clearer picture of the crisis. Country''s largest lender, State Bank of India, said it did not see any concerns emerging on account of the Dubai crisis as the bank has only minimal exposure in the UAE, bulk of which are short-term loans.
"Bulk of our loans in the UAE are short-term and the rest medium-term. I do not think, we have any problems coming out of that region.
" a top SBI official said. .
"India is a very large economy. It is a resilient economy. I don't think some development in real estate in Dubai will have an impact on the Indian economy," Commerce Minister Anand Sharma said Friday.
"As far as India is concerned, the housing, real estate sector and construction industry are all doing well. This is confirmed by the increasing demand for construction materials, cement and steel," Sharma told reporters here.
Finance Secretary Ashok Chawla also saw little impact of the Dubai World's woes on the country's economy, even though he was a trifle more circumspect and preferred to watch the situation before hazarding a guess.
"We will have to study what the issue is, what is the problem, what will be the possible implication if any for the Indian economy, the people and corporates," Chawla told reporters outside his office in North Block here.
Asked if the crisis will impact money flows into India, since the Gulf region accounts for over half the total inward remittances worth over $25 billion annually from expatriate Indians, Chawla said: "It's unlikely."
The state-run Dubai World stunned the global financial world Thursday when it announced it would need to restructure its debt, estimated at $59 billion, to preempt default and asked creditors for a six-month deferment.
The conglomerate, which has a host of companies under its fold, has interests in a wide range of businesses such as realty, infrastructure, logistics and economic zones, not just in the region but across a clutch of countries including India.
Indian equities reacted adversely to the development, with the benchmark sensitive index (Sensex) of the Bombay Stock Exchange (BSE) down as much as 634.16 points, or 3.76 percent, midway into the trading session Friday.
It later recovered and closed with a loss of some 220 points, or 1.3 percent over the previous close.
"Indian markets have rallied more than 100 percent from the lows a year ago, mostly backed by news of recovery and not necessarily on fundamentals," said Jagannadham Thunuguntla of brokerage firm SMC Capital.
"This is why such news will have a negative impact on our markets and we will be dragged down," Thunuguntla, who heads the equities division of the firm, told IANS.
Former governor of the Reserve Bank of India (RBI) Y.V. Reddy, though, expressed concern over the prospect of Indians employed in the Gulf losing their jobs. "Much would depend on its impact on the real economy there and employment," he said.
"It's one thing if property prices or share prices come down. That will affect only one section of people. But how is it going to affect the living conditions, employment conditions, real economic activity in those countries where we are employed?" queried Reddy.
Chawla maintained that the impact on jobs and salaries was "unlikely".
Even some Gulf-based companies, like Emmar, which have business interests in India, said there will be virtually no impact on their ongoing projects in India.
"The recently announced plans in respect of debt of Dubai World has no impact on Emaar Properties' financial position or operations or its ability to meet any obligations," Emmar said in a joint statement with its India partner MGF.
"Emaar Properties remains committed to its investments and Emaar MGF's business in India."
The response was similar from India's leading engineering and construction major Larsen and Toubro Ltd, which said its exposure in Dubai was around $20-$25 million.
"Our receivables could become sticky," said R. Shankar Raman, the company's executive president, adding: "The impact on Larsen and Toubro's financial results will not be material."
In Europe, the FTSE 100, Germany's DAX and the CAC-40 in France opened sharply lower. Earlier in Asia, the Shanghai index sank 119 points, or 3.6%, in the biggest one-day fall since August 31. Hong Kong's Hang Seng shed 1.8%. Wall Street was closed for the Thanksgiving holiday and most markets in the Middle East were silent because of a major Islamic feast.
Stocks, bonds and currencies fell across developing countries. The MSCI Emerging Markets Index of stocks dropped 1.1%, led by declines in China and Russia.
The fallout came swiftly after Wednesday's statement that Dubai's main development engine, Dubai World, would ask creditors for a standstill on paying back its $60 billion debt until at least May. The company's real estate arm, Nakheel -- whose projects include the palm-shaped island in the Gulf -- shoulders the bulk of money due to banks, investment houses and outside development contractors.
In total, the state-backed networks nicknamed Dubai Inc are $80 billion in the red and the emirate needed a bailout earlier this year from its oil-rich neighbour Abu Dhabi, the capital of the United Arab Emirates.
``Nakheel is now standing on the brink of failure given the astonishing amount of cash Dubai would have to inject into it in order to see the enterprise survive,'' said Luis Costa, emerging-market debt strategist at Commerzbank AG in London. ``Events like this are a perfect storm.''
``Dubai's standstill announcement ... was vague and it remains difficult to discern whether the call for a standstill will be voluntary,'' said a statement from the Eurasia Group, a Washington-based research group that assesses political and financial risk for foreign investors interested in Dubai. ``If it is not, Dubai World will be going into default and that will have more serious negative repercussions for Dubai's sovereign debt, Dubai World and market confidence in the UAE in general,'' the statement added.
``There is nothing investors dislike more than this kind of event,'' said Norval Loftus, the head of convertible bonds and Islamic debt at Matrix Group Ltd. in London, which manages $2.5 billion of assets including Dubai credits. ``The worst-case scenario will of course be involuntary restructuring on the Nakheel security that brings into question the entire nature of the sovereign support for various borrowers in the region.''
Moodys Investors Service and Standard & Poor's cut the ratings on state companies yesterday, saying they may consider state-controlled Dubai World's plan to delay debt payments a default. The sheikhdom, ruled by Sheikh Mohammed Bin Rashid Al Maktoum, borrowed $80 billion in a four-year construction boom that reduced its reliance on falling oil supplies and created the region's tourism and financial hub.
``Dubai is the most indicative of the huge global liquidity boom and now in the aftermath there will be further defaults to come in emerging markets and globally,'' said Nick Chamie, head of emerging-market research at Toronto-based RBC Capital Markets.
``It's very important to resolve this in a way that will minimize contagion across the region,'' Matrix Groups Loftus said. The moot question is whether that will be possible.
"The specter of financing difficulties is resurging," said Alexandre Iatrides, a fund manager at KBL Richelieu in Paris, which oversees about $3 billion. The news from Dubai "is resurfacing worries that we had put aside. This could be the new Lehman."
The cost of protecting government notes from Qatar to Saudi Arabia rose the most since June as Dubai World, with $59 billion of liabilities, sought a "standstill" agreement from creditors. Dubai borrowed $80 billion in a four-year construction boom that reduced its reliance on falling oil supplies and created the region's tourism and financial hub.
National benchmark indexes declined in all of the 18 western European markets, except Iceland. The UK's FTSE 100 and Germany's DAX each fell 3.1%. Greece's ASE Index plummeted 6.2%, the steepest drop in a year, as Marfin Investment group SA slid. The VStoxx surged 28% to 30.58, the steepest gain since October 2008. LSE, Europe's biggest exchange by value of listed companies, sank 7.2% to 755.5 pence, the steepest decline since April. Borse Dubai owns 21% of LSE shares, according to Bloomberg data.
Porsche SE, which is merging with Volkswagen AG, tumbled 5.6% to 46.32 euros and VW fell 4.8% to 82.20 euros. Qatar owns 10% of the voting rights in Porsche and will eventually hold 17% of the merged carmaker. Separately, the maker of the 911 sports car was cut to "hold" from "buy" at UniCredit SpA and to "reduce" from "buy" at Equinet. Marfin Investment, the investment fund backed by Dubai Financial LLC, plummeted 16% to 2.09 euros in Athens trading, the steepest drop on the Stoxx 600.
World's more than 70 creditors face the prospect of writedowns on as much as $60 billion of debt if they haven't unloaded their holdings and the state-owned company fails to win additional support from Abu Dhabi. Lenders include Credit Suisse Group AG, HSBC Holdings Plc, Barclays Plc, Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc, according to a person familiar with the situation.
Banks outside the Gulf played down their exposure to Dubai debt on Friday after fears of default shook global markets, and European leaders said the world economy was now strong enough to cope with the setback.
Stocks from Tokyo to London were haunted by concerns that banks were exposed to state companies in Dubai, whose rise from a desert backwater into the business hub of the world's top oil exporting area lured expatriate cash and executives.
The crisis began on Wednesday when Dubai, part of the United Arab Emirates federation, asked to delay payment on billions of dollars of debt issued by conglomerate Dubai World and its main property subsidiary Nakheel, developer of three palm shaped islands that once attracted celebrities and the super-rich.
"While it is a setback, I think we will find it is not on the scale of previous problems we have dealt with," British Prime Minister Brown told reporters in Port of Spain, where he will attend a summit of leaders from Commonwealth countries.
"The world financial system is stronger now and able to deal with the problems that arise," he said.
French Prime Minister Francois Fillon said there were enough resources in the region to make sure there would not be a second round of the financial crisis although at a joint news conference, Russian premier Vladimir Putin said the saga showed it would be tough for the world to shake off the financial crisis which has gripped it for two years.
Dubai World had $59 billion of liabilities as of August, most of Dubai's total debt of $80 billion. International banks exposure related to Dubai World reach $12 billion in syndicated and bilateral loans, banking sources told Thomson Reuters LPC.
But the numbers pale in comparison to the $2.8 trillion in writedowns the International Monetary Fund estimates U.S. and European lenders will have made between 2007 and 2010 as a result of the global credit crisis.
"The events in Dubai in recent days are one of the hiccups if you like, one of the difficulties, which affirms that we were right to highlight the uncertainty ahead of us and that the road ahead could be a bumpy one," European Central Bank Governing Council member Athanasios Orphanides said.
French banks said their exposure to the Dubai crisis was limited and Italy's central bank said Italian banks should face no problems linked to the Gulf trade and tourism hub. The sentiments were echoed by Chinese banks.
Those statements helped push European stocks into the black although U.S. stock futures pointed lower after markets were shut for the U.S. Thanksgiving holiday.
"We have seen a classic risk aversion reaction in the markets over the past 24 hours. The dollar has slumped, the yen is stronger," a Societe Generale note said. "At this stage, this setback looks to be one that is very much country specific."
ABU DHABI EXPOSURE
While European and Asian banks scrambled to distance themselves, lenders in Abu Dhabi, a fellow member of the UAE federation and home to most of the country's oil, appeared to have major positions.
Abu Dhabi Commercial Bank has at least 8-9 billion dirhams ($2.18-$2.45 billion) exposure to Dubai World and related entities, forcing the bank to book more provisions, a senior executive of the bank said. First Gulf Bank has at least 5 billion dirhams ($1.36 billion).
IAEA votes to censure Iran over nuclear cover-up
U.N. nuclear watchdog governors voted on Friday to rebuke Iran for building a uranium enrichment plant in secret but Tehran dismissed the move as "intimidation" which would poison its negotiations with world powers.
The resolution was the first by the 35-nation board of the International Atomic Energy Agency (IAEA) against Iran in almost four years, and a sign of growing alarm over Tehran's failure to dispel fears it has clandestine plans to build nuclear bombs.
It passed by a 25-3 margin with six abstentions, smoothed by rare backing from Russia and China, which have blocked global attempts to isolate Iran, a trade partner for both, in the past.
Russia called on Iran to "react with full seriousness to the signal contained in the resolution ... and to ensure full cooperation with the agency." Moscow and Beijing's support is seen as vital to the success of international pressure on Iran.
The vote reflected exasperation with Iran's retreat from an IAEA-brokered draft deal to provide it with fuel for a medical nuclear reactor if it agreed to part with its enriched uranium, which could be turned into bomb material if further refined.
British Prime Minister Gordon Brown said major powers would have to pursue harsher sanctions against Iran if it ignored the vote. This, he said during a visit to Trinidad, sent "the clearest possible signal to Iran that they should desist from their nuclear plans, that the world knows what they are doing."
U.S. IAEA envoy Glyn Davies called the resolution "a signal that patience is running out."
"We can't have round after round of fruitless negotiations, circular negotiations that don't get us where we want to get," he said, referring to perceptions Iran is stringing out inconclusive talks to buy time to stockpile enriched uranium.
Davies said it was imperative for Iran to "live up to its international obligations and offer transparency in its nuclear program, rather than carry out more evasions and unilateral re-interpretations of its obligations."
The measure won blanket Western backing. Cuba, Malaysia and Venezuela, prominent in a developing nation bloc that includes Iran, voted "no," while Afghanistan, Brazil, Egypt, Pakistan, South Africa and Turkey abstained. Azerbaijan missed the ballot.
Iran denies seeking nuclear weapons, saying its atomic energy program is purely for peaceful purposes. But its record of clandestine nuclear work and curbs on IAEA inspections have stoked suspicions and a seven-year standoff with world powers.
Iranian Ambassador Ali Asghar Soltanieh called the resolution, which also urged Iran to immediately freeze the Fordow enrichment project hidden inside a mountain bunker, a "hasty and undue" step devoid of legal basis.
IRAN SAYS WILL IGNORE RESOLUTION
"The great nation of Iran will never bow to pressure and intimidation vis a vis its inalienable right to peaceful uses of nuclear energy," he said.
"We will not implement any word of it because this is a politically motivated gesture against the Iranian nation."
Dubai Inc may face shakeup after debt standstill
Dubai's shock move to restructure its biggest corporate debtor, Dubai World, and delay repayment on some of the company's $59 billion of liabilities could signal a broad restructuring of the emirate's corporate landscape.
A web of government-linked companies, including Dubai World and affiliate Nakheel, has presided over spectacular growth in the emirate's real estate, shipping, transport and financial sectors over the past two decades.
Now part of that constellation of companies could be broken up as Dubai struggles under its massive debt load. In some cases, firms could be dismembered or partially privatized.
John Sfakianakis, chief economist at Banque Saudi Fransi-Credit Agricole Group, called Dubai's announcement on Wednesday "a huge confidence destroyer...Unless there are clear signals, Nakheel and DW could be in far deeper trouble than before."
"They're announcing that they have two institutions that cannot repay their obligations on time," he said. "It's going to make people more jittery. They will ask more questions about Dubai debt and its repayment processes."
HOLDING FIRMS
The government said on Wednesday that Dubai World would ask all providers of financing to itself and Nakheel to extend maturities of the debt until at least May 30 next year. That appears to affect about $5.7 billion of debt due to mature before the end of May.
Dubai World is one of the emirate's three big holding firms, along with Dubai Holding and Investment Corporation of Dubai. In addition to Nakheel, its affiliates include DP World, a huge port operator, and Istithmar, an investment company with a portfolio of over 50 firms in the financial services, consumer, industrial and property sectors.
The restructuring announcement was a shock partly because Dubai World had said last month that a previous restructuring plan, prepared with AlixPartners, the turnaround experts advising on the General Motors bankruptcy, was nearly complete and would save $800 million over three years.
It was also surprising since Dubai World had previously seemed to be at the core of the government's plans for the emirate.
The government said on Wednesday that it had raised $5 billion by issuing bonds to two Abu Dhabi-controlled banks; the money will be managed by a Financial Support Fund that will lend to support Dubai's development.
But the government specified that the bond issue was not linked to Dubai World's restructuring and would merely go toward the "general purposes" of the fund, implying it would not be used to bail out Dubai World.
"The Financial Support Fund has obviously not deemed Dubai World to be of immediate strategic importance," said Ian Munro, head of research at MAC Capital Advisors.
RESTRUCTURING
The government's five-paragraph announcement on Wednesday gave no details of the planned restructuring, beyond saying it would occur with the help of a managing partner for corporate finance at consultants Deloitte.
UPDATE 1-US shoppers hit Black Friday sales, budgets pared
Fri Nov 27, 2009 8:39am EST
* U.S. shoppers hit stores at midnight for Black Friday
* Many have trimmed budgets further
* Up to 134 million shoppers expected this weekend
* Discount retailers expected to gain
(Recasts first sentence, adds details on U.S. shoppers)
By Michele Gershberg and Dhanya Skariachan
NEW YORK, Nov 27 (Reuters) - Americans headed to stores in
droves to kick off the holiday shopping season on Friday,
though many said they were being more selective about what they
buy and paring back what they spend.
Black Friday, the day after U.S. Thanksgiving, is often the
single busiest shopping day of the crucial holiday season,
which accounts for nearly one-fifth of the retail industry's
annual sales.
The annual ritual of American consumerism is being
monitored closely for signs the U.S. shopper is again ready to
propel the economy forward, after the global financial crisis
last year led to the worst holiday season in nearly four
decades.
Macy's Inc (M.N) CEO Terry Lundgren said retailers should
have a decent holiday performance in 2009, at the very least on
a comparable basis since the prior year was so dismal.
"That's very different than last year," Lundgren told cable
business channel CNBC. "Last year we were falling off a cliff,
grabbing for branches on the way down."
Debra Diriwachter, a supermarket cashier, waited for
several hours outside the Queens Center mall in New York before
doors opened at 11 p.m. EST on Thursday. She is cutting back
her gift budget this year and will use only cash for
purchases.
"I don't like to be in debt and if I know what I am
spending, that's good," she said.
The first 200 shoppers entering the mall, some in their
pajamas, were handed $10 gift cards to whet the appetite.
"This is beautiful. I am so happy," said Roberto Tomala.
"This is a good motivation to everybody. In this situation,
even $10 helps to buy something."
Up to 134 million U.S. consumers say they may shop for
holiday gifts this weekend from Black Friday through Sunday,
according to the National Retail Federation.
That is up from last year's survey, taken weeks after the
global financial crisis erupted, but still below consumer Black
Friday plans reported ahead of the shopping season in 2007.
[ID:nN24304364]
Some industry experts expect a strong turnout on the Black
Friday weekend, but cautioned that did not mean a strong
holiday season, as shopping could drop off again until just
before Christmas.
For a graphic on U.S. holiday sales trends, click here
For a Reuters Insider segment on holiday sales, click on
link.reuters.com/wuj63g
HALF AS MUCH FOR A LAPTOP
Discount retailers like Wal-Mart Stores Inc (WMT.N) and
Target (TGT.N) are expected to see the heaviest traffic over
the holiday weekend, followed by department store chains like
Macy's and Kohl's (KSS.N).
About 50 people were lined up outside a Best Buy Co Inc
(BBY.N) store in Springfield, Pennsylvania, at midnight, eager
for "doorbuster" deals on electronics like laptop computers and
flat-screen televisions.
"I have to get a laptop for my daughter," said Nate Bryan
of Drexel Hill, Pennsylvania. "It's normally $1,000 and now cut
in half. That $500 can go to other things."
Over the past year, as consumers have kept a tight watch on
their wallets, retailers have closed underperforming stores,
scaled back new openings and shrunk inventories, to avoid last
year's profit-sapping discounts of unsold merchandise.
But they still have room to offer enticing discounts.
"Last year they literally gave the merchandise away," said
Marshal Cohen, senior analyst at retail consultancy NPD Group.
"This year, they have to sell half as much as last year to
break even ... so even if they don't sell as much they're going
to make money."
STRAIGHT CASH
The unsettled state of the U.S. economy, with a 26-year
high in unemployment and tighter access to credit, has industry
holiday sales forecasts varying widely from a decline of 3
percent to an increase of 2 percent. [ID:nN23265994]
Early hopes for a consumer-led recovery have pushed retail
shares .RLX up 47 percent this year, compared with a 23
percent rise for the Standard & Poor's 500 Index .SPX.
While most research in the last two months showed shoppers
planned to spend less or the same in 2009 from a year ago
during the holidays, that stance may be softening.
Nearly one-third of consumers surveyed by Deloitte said
they now expect to spend more than they had planned a month or
two ago. The survey, conducted last week, polled 1,051 people,
with a margin of error of plus or minus 3 percent.
Jimmy Johnson, who arrived at a Springfield, Pennsylvania,
Target store at midnight, said he planned to spend the same as
he did last year, but wanted more for his money.
"I'm buying whatever I can get a great deal on -- cameras,
TVs, toys," he said, adding that he would not be using any
credit cards this year.
"Straight cash, homie, straight cash. I don't have to worry
about paying it back. Use your own money and you earn it and
you spend it."
(Reporting by Michele Gershberg and Dhanya Skariachan,
additional reporting by Tom Hals in Springfield, Pennsylvania,
editing by Matthew Lewis)
((michele.gershberg@thomsonreuters.com; +1 646 223-6185;
Reuters Messaging: michele.gershberg.reuters.com@reuters.net))
((See blogs.reuters.com/shop-talk/ for Shop Talk --
Reuters' retail and consumer blog.))
Angelina Jolie hates Barack Obama
Wednesday, November 25, 2009,11:58 [IST]
Washington
, (ANI): Angelina Jolie hates US President Barack Obama because she thinks he is a 'socialist in disguise', according to reports. The 34-year-old actress, who is also a Goodwill Ambassador for the UN Refugee Agency, allegedly disapproves of the president's policies. "She hates him. She's into education and rehabilitation and thinks Obama is all about welfare and handouts. She thinks Obama is really a socialist in disguise," Us magazine quoted a source close to the star as saying.
Buzz up!
The source added: "Angie isn't Republican, but she thinks Obama is all smoke and mirrors." The Hollywood beauty also has her differences with pro-Obama beau Brad Pitt over the topic, it was claimed. The source said: "They get in nasty arguments all the time about it. She doesn't respect Brad when it comes to politics, but, in the end, this won''t tear them apart."
27/11/2009
A year later, India is still a soft state
A year down the line no individual has been held accountable for the monumental blunders of 26/11. In a country which institutes commissions of inquiry at the drop of a hat, amazingly no formal commission was set up to investigate the total organisational failure of our security set-up. The Ram Pradhan inquiry was confined to looking into the responses of the Mumbai police. And even the findings of that were not made public.
By Coomi Kapoor
A year down the line no individual has been held accountable for the monumental blunders of 26/11. In a country which institutes commissions of inquiry at the drop of a hat, amazingly no formal commission was set up to investigate the total organisational failure of our security set-up. The Ram Pradhan inquiry was confined to looking into the responses of the Mumbai police. And even the findings of that were not made public.
Last November the whole world watched in amazement as Indian television provided an embarrassing, 24/7 coverage of the country's vulnerability. Less than a dozen terrorists brought the country to a virtual standstill for three days. While we all sat glued to our television sets, government agencies acted like a bunch of Keystone cops. Former US envoy's Ronen Sen's favourite phrase "headless chickens" was certainly very apt.
In this tragedy of errors, just about everything which could have gone wrong went horribly awry. First the Coast Guard and the Navy allowed the boat carrying terrorists to enter Mumbai unhindered, even after they had been alerted by RAW of the possibility of the arrival of terrorists by the sea route and given the date on which the boat left Karachi.
When the local fishermen saw the terrorists calmly alight from the boat, they tried to warn the nearest police post of suspicious movements, but no one paid heed. Antiquated rifles supplied to the Mumbai cops could not match the sophisticated fire power of the terrorists armed with AK 47s and grenades. The few bullet proof jackets available to our policemen, turned out to be reject supplies.
There was no coordinated plan by the Mumbai police. The ATS chief and two other senior police officers were gunned down by two terrorists within hours thanks to the general confusion. From the recent interview of the former Mumbai police commissioner Hasan Gafoor to 'The Week' magazine it appears there were additional behind- the- scenes glitches. The local police and the marine commandos squabbled about who should storm the Taj hotel, with the commandos declining, insisting that they took part only in off-shore operations. The former police commissioner claims that four senior Mumbai police officers refused to obey orders and remain in the line of fire to take on the terrorists. (Gafoor, now Director General of Police Housing, withdrew the charge after the four officers threatened to sue for defamation.)
Our crack NSG commandos arrived in Mumbai and began operations some 12 hours after the siege started. One reason for the delay was that the air crew for the special aircraft could not be located speedily and sanction for the flights had to be first obtained.
http://news.in.msn.com/national/article.aspx?cp-documentid=3453032
French Parliament ratifies Indo-French N-deal
New Delhi: Crossing a significant milestone, the Indo-French civil nuclear agreement was unanimously adopted by the French Parliament, paving way for companies to build nuclear power plants in India.
The French National Assembly on Tuesday adopted a law authorising the ratification of the Cooperation Agreement between India and France on the Development of Peaceful Uses of Nuclear Energy, a French Embassy statement said.
The French Senate had adopted the law on October 15. "The unanimous vote by both Assemblies is an important milestone in the development of the civilian nuclear cooperation between France and India," the statement said.
France was the first country to sign a civil nuclear cooperation agreement with India within days of the lifting of the international nuclear trade embargo on India last year.
French nuclear supplier Areva has been allocated the nuclear project site at Jaitapur in Maharashtra to initially build two power plants.
26/11/2009
Secret Service confirms couple gatecrashed Manmohan's state dinner
Washington: A couple of brazen party crashers - and wannabe reality TV stars - were indeed at President Barack Obama's state dinner for Prime Minister Manmohan Singh without ever being suspected, the US Secret Service has confirmed.
Michaele and Tareq Salahi were all smiles as they rubbed shoulders with Vice President Joe Biden, White House chief of staff Rahm Emanuel, India's deputy chief of mission, Arun Singh, Oscar winner Indian composer A.R. Rahman and Pepsico's Indian American chief executive Indra Nooyi, among others, at the dinner.
The Washington Post, which first reported the story, had identified the couple who crashed Tuesday night's dinner as Tareq and Michaele Salahi. The Post described the couple as polo-playing socialites from northern Virginia.
Huffington Post Thursday published pictures of the gate crashing couple with Singh, Rahman and Nooyi, among others, at the Obama administration's biggest social event to date with more than 300 guests, including cabinet members, diplomats and Hollywood celebrities.
A Secret Service checkpoint "did not follow proper procedures" to determine if the two were on the guest list for the dinner, said Edwin M. Donovan, a Secret Service spokesman, but stressed Obama or Manmohan Singh were never in any danger because the Salahis went through the same security screening for weapons as the other invitees.
Playing down any security threat, Donovan's statement said: "It is important to note that these individuals went through magnetometers and other levels of security, as did all guests attending the dinner."
"The Secret Service has tasked our Office of Professional Responsibility with conducting a comprehensive review of the incident," Donovan said.
Video footage of the dinner showed the couple walking past journalists into the event. On Wednesday, Michaele Salahi's Facebook page included photos of the couple at the dinner, including two pictures with Vice President Joe Biden and another with Rahm Emanuel, the White House chief of staff, who was identified on the page as "Ron" Emanuel.
In an e-mail to CNN, Mahogany Jones, who identified herself as a publicist for the Salahis, said the couple had "full clearance to attend the state dinner".
Fran Townsend, a homeland security adviser to former President George W. Bush, said the incident likely involved a breakdown at the "perimeter" security for the event, which is the first checkpoint that guests encounter.
Lying to the Secret Service could bring a felony charge, Townsend told CNN.
Source: IANS
Pak attitude towards India not changed: Chidambaram
New Delhi, Nov 27 (PTI) India hopes that international opinion and its pressure combined with refusal to engage in a dialogue will force Pakistan to change its attitude towards terror groups operating from there. Home Minister P Chidambaram said there have been several attempts by terrorists from across the border as well as modules within the country to launch terror attacks like 26/11 in India and these have been successfully foiled by the security agencies with better intelligence inputs.
"I can''t change Pakistan''s attitude. I can only hope that international opinion, Indian pressure and India''s refusal to engage Pakistan in a dialogue, will force Pakistan to change its attitude," he said in a CNN-IBN programme.
"We have said that always," he said on Pakistan not abandoning its policy on supporting terror groups post 26/11. However, the Minister said, looking at Islamabad''s attitude, India has strengthened its security manifold and is now better prepared in comparison to what it was an year ago.
"All I can say is given Pakistan''s attitude, am I better prepared? Have I built more capacity and more competence? I think I have," he said. He dismissed as "misplaced criticism" the allegations that Rs 31 crore have been spent on protection of Ajmal Amir Kasab, the lone surviving Mumbai attacks terrorist.
He was a very important catch, he said.
World must learn religious harmony from India: Dalai Lama
Palampur, November 27 (ANI): Addressing the three-day long 18th annual conference of the Vitreo-Retinal Society of India in Palampur on Thursday, Tibetan spiritual leader Dalai Lama said that the world must learn religious harmony from India. About hundred eye surgeons from across the country and abroad have gathered at the Institute of Himalayan Bioresource Technology (IHBT) in Palampur.
They are here to deliberate over the new skills and inventions in their field.
ANI
Chinese wall between banking and insurance comes down in China
Saibal Dasgupta, TNN 27 November 2009, 02:00pm IST
BEIJING: World over, the division between banking and insurance business has often been called the Chinese wall. And now, the Chinese government
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knocked down this wall allowing banks to invest in insurance companies.
The move might prove to be a barrier for foreign insurance companies as they will now have to deal with banking giants like Industrial and Commercial Bank of China. The giant banks with their vast distribution network can give foreign players a serious run for their money.
Granting permission for the business marriage between two players in the financial sector, the China Banking Regulatory Commission has cautioned them against polygamy. Each bank is allowed to invest in only one insurance company. But it is silent on how much stake a bank will be allowed to take in an insurer.
The government has also announced plans to launch a series of investment funds to boost the growth of high-technology and innovative industries besides financing the process of industrial structuring.
Each fund will be worth $37 million, the National Development Reforms Commission said. But it did not say how many funds will be created. The government will chose a set of financial management companies with sufficient experience to run these funds.
The Chinese central government is also roping in local governments in the funds. It said the centre will have no more than 20% share in each fund while local governments would be expected to contribute as much as the central government. The remaining 60% will come by way of investments from institutions, local and foreign companies.
The NDRC also promised the government will not interfere in the operation of the funds.
On its part, the Chinese banking regulator has imposed certain restrictions on banks wanting to invest in insurance business. It has prohibited them from directly or indirectly selling subordinated debt to insurers in which they have invested.
Making a belated announcement on the decision taken on November 5, the CBRC said insurers will not allowed to hold more than 10% of the securities issued or underwritten by the financial institutions that invest in their shares.
The banking regulator said banks will have to keep their banking and insurance operations separate. It also announced a firewall that disallows banks from extending loans to insurance companies or their affiliates in which they buy stakes.
http://timesofindia.indiatimes.com/biz/international-business/Chinese-wall-between-banking-and-insurance-comes-down-in-China/articleshow/5275208.cms
Another central bank purchases gold from IMF
AFP 27 November 2009, 12:37am IST
WASHINGTON: IMF said it had sold 10 tonnes of gold to Sri Lanka's central bank for $375 million, as part of a restructuring of IMF financial
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resources. It was the third IMF sale of gold in a month as the Washington-based institution seeks to reduce its dependence on lending revenue and bolster its finances amid the global economic crisis.
"The sale was conducted on the basis of market prices prevailing on" Monday, the IMF said in a statement.
Gold prices had hit a record high that day, topping $1,170 an ounce. Since then, the price of the precious metal has soared higher to new all-time peaks as investors seek a safe haven amid economic uncertainty.
The sale brought the total IMF gold sold to central banks to 212 tonnes. India bought 200 tonnes between October 19 and 30 for $6.7 billion and Mauritius bought two tonnes on November 11 for $71.7 million. Sri Lanka has a 20-month IMF loan of $2.7 billion that was awarded in July after the island nation's reserves slumped to just over $1 billion as the government made a final offensive to crush separatist Tamil Tiger rebels.
Sri Lanka's central bank in early November said it has been buying gold to diversify its reserves amid volatile currency markets but refused to reveal from which sources the bank was buying the gold or at what prices.
The IMF executive board approved the sale of 403.3 tonnes of gold in September. The fund, which currently holds roughly 3,000 tonnes of gold, is the world's third-largest official holder of the precious metal after the US and Germany.
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