Essar to invest in UAE co’s business
The Essar group is in talks with a UAE-based consortium of investors, The Dhabi Group, to invest in telecom business in Africa. The preliminary agreement between the two groups has been signed.
What it means?
With slowdown hitting the world economy badly, Indian companies are looking at new markets. For long, China has had its presence in Africa, but with Essar’s move to indirectly invest in that market, more Indian companies could follow suit.
Deficient monsoon may hit economic recovery
India’s worst dry patch in decades is staring us in the face with monsoons playing havoc. According to the meteorological department, the annual monsoon rains were 50 percent deficient in the north-west region during the June 1-July 9 period.
What it means?
Rural demand would slide drastically amid the ongoing slip in urban demand, making economic recovery more painful. The prices of food items could rise sharply, making the consumers to spend less. This could be bad news for Indian companies that are already reeling under the pathetic demand from overseas.
India’s swine flu cases go up
There is no stopping the swine flu menace, with fresh cases being detected on a regular basis. As of July 20, the total number of infected patients in the country stood at 308.
What it means?
The travel and tourism sector has been hit. The number of inbound tourists has dropped by up to 30 percent and the number of inquiries has also gone down. Outbound tourism has also been hit.
21st century’s longest solar eclipse
This century’s longest total solar eclipse, lasting 6 minutes, 39 seconds, occurred on July 22. The next big total eclipse in the country takes place on Jun 3, 2114. The line of totality covers a distance of over 3,000 km. So, more Indians will be in the path of totality than ever.
What it means?
It would spur economic activity in cities where the full eclipse is visible, with enthusiasts from far and wide traveling to these cities to look at the spectacular event. Cox & Kings, in coordination with Eclipse Chasers Athenaeum (ECA) organized a special solar solar eclipse flight for the enthusiasts. The ticket cost around Rs 80,000.
Lupin, Matrix face anti-trust probe in EU
Three pharmaceutical majors—Lupin, Matrix Laboratories and Niche Generics, are in the eye of a storm of antitrust investigations by the European Union for delaying the entry into the market of the generic version of a hypertension drug.
What it means?
This is a bad news for the Indian pharma companies that have either entered the overseas markets or are planning to do so. The probe could dent the reputation of Indian firms abroad.
IMF revises India’s growth projections upwards
The International Monetary Fund has revised India’s growth projection upwards by 0.9 percentage points in the year 2009 and 2010. The multilateral agency attributes this to the positive impact from fiscal and monetary stimulus packages.
What it means?
While it falls short of government’s expectations, it is still an indication that economic recovery is in sight. It also reaffirms the positivity that the economic stimulus package has infused in businesses.
Foreign VC funds await RBI approval
Around 43 foreign VC investors are awaiting the central bank’s nod to invest in Indian businesses. Ten such requests are reported to be pending since the three years. The big names in the list include Google Holdings, DE Shaw Composite Investments, and Sabre Abraaj Infrastructure.
What it means?
The economic slowdown had already made it difficult for entrepreneurs to tap funds for their startups. Eager investors kept out for the lack of approvals is bad news for entrepreneurs looking for VC funding.
Harry Potter film sets worldwide box office record
Harry Potter’s new film avatar Harry Potter and the Half-Blood Prince is set to make a box-office bounty by grossing $1 billion soon, having netted $400 million worldwide in the first five days of its release.
What it means?
This movie could compensate the losses suffered by theater owners who are recovering after a two-month dispute about the sharing of ticket revenue.
India’s climbdown on CO2 emissions
After much deliberation, Prime Minister Manmohan Singh finally signed a climate declaration at the Major Economies Forum (MEF) in Italy. There was a lot of hue and cry on this issue because India was till recently opposed to certain clauses in the declaration. One such was the clause on introducing a cap on global temperature, which should not exceed two degrees Celsius over pre-industrial levels by 2050.
The argument of the people against the move was that India’s per capita carbon dioxide emission at 1.2 tonnes was one of the lowest in the world as against the developed nations.
What it means?
Climate change is one of the greatest challenges of our time, but so is development. One of the worst fears of India by signing on the dotted lines was agreeing to the cap on global temperature, thus indirectly implying emission cuts on India. For businesses this is not good news because it might mean stringent rules and regulations as well as more taxes. In the longer run, this might also mean that the pollution control norms that existed for large enterprises might also be extended to the medium industries.
Union Budget gives more funds to education
The government has allocated Rs 44,528 crore for both school and higher education, a jump of 20 percent over the last fiscal. While school education gets over Rs 29,099 crore (Rs 290.99 billion), higher education bags Rs 15,429 crore (Rs 154.29 billion). The figures include both planned and unplanned outlay. Last fiscal, the total budget outlay for education was Rs 37,366 crore.
What it means?
This could open up opportunities for those in the education sector, as the government may look for a public-private partnership model to further the cause of education. It would also mean downstream opportunities as government institutes would have more money in had to spend.
Defence budget up 25%
The government has decided to hike defence spending by 25 percent in 2009-10 to $29.39 billion as it moves to modernize weapons systems and overhaul its security forces after last year’s Mumbai attacks exposed major gaps. $562 million would be spent to boost border security and modernize its police force.
What it means?
With Indian companies readying to garner a bigger share in the defence market, this is good news for many. They stand to benefit even if the government sources arms from overseas firms as according to the offset clause they have to source stipulated amount of arms from Indian companies.
Pop-star Michael Jackson dies at 50
One of the most shocking incidents of our time—Jackson, who moon-walked his way to fame, passed away on June 25, just 18 days before the first planned concert of the series of 50 at London’s O2 arena.
What it means?
This news obviously implies several losses to those associated with the event. It had been reported that the concerts would have been attended by over one million people in total. Just the first ten dates would have earned £50 million for the singer. Not only this, AEG Live, the organizer of the event, now faces a liability of reportedly £300 million and an empty venue for the next nine months.
However, it also means gains for some. For beginners, a number of financial firms are eyeing Jackson estate’s 50 percent share (worth more than $500 million) of Sony/ATV Music Publishing, which holds most of the Beatles catalog. Not only this, many studios have been bidding for Michael Jackson’s video of his final rehearsals, which could again be worth several millions. Another major thing could be his remaining interest in Neverland Ranch. Then there is the never-ending list of Jackson memorabilia, such as the antiques he collected during his lifetime which could run into several millions.
SC upholds HC’s decision on gay rights
The Supreme Court finally upheld the Delhi High Court judgment on decriminalizing homosexuality. On July 2, the Delhi High Court had said that Section 377 of the IPC violated an individual’s rights and consensual sex between adults should be legalized. This judgment was a bone of contention between many gay rights activists and people including public figures, who openly opposed the move.
What it means?
No major implication on business as of now, because gay rights have not been legalized as of yet. However, some restaurants, pubs and discotheques came forward to propose special nights for homosexuals, adding another dimension to their business.
Cong-Maya spat
Uttar Pradesh Congress Committee Rita Bahuguna Joshi was recently arrested for allegedly making derogatory remarks against UP Chief Minister Mayawati. Joshi was booked under sections 153A (delivering inflammatory speeches) and 109 of IPC (using abusive language), besides provisions of SC/ST (Prevention of Atrocities) Act, for the speeches she delivered in connection with compensation to rape victims. This had triggered a major political uproar in the state resulting in a violent clash between the party workers. According to latest news, Joshi is now demanding the resignation of Mayawati on “moral grounds.”
What it means?
Politics has a direct impact on businesses. This tussle between two major political parties may lead to a loss of investors’ confidence in the state.
Subscribe to this comment's feed
| < Prev | Next > |
|---|
