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| Thursday, November
9, 2000, Chandigarh, India   
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Global stocks seesaw on US confusion Daewoo goes bankrupt Badal gets $ 451 m
for Sangrur plant
India & UK discuss
investor protection Advisory panels for
tax payers on anvil |
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Maruti claims 100 pc capacity utilisation Salarymen hold key to Japan’s recovery
Next decade to be
age of the robot Plan to lift FDI curbs in telecom
No wife-beating in Nov! KBC episode ‘not rigged’ He puts heart
on display
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Global stocks seesaw on US confusion LONDON, Nov 8 — Global financial markets rode a rollercoaster today as early projections of a sweep of the White House and Congress by George W. Bush and the Republicans melted into uncertainty. Stocks gave up earlier gains while bonds fought back from losses after a recount was triggered in the crucial state of Florida and Democrat Vice-President Al Gore retracted his earlier concession of defeat. European shares pared their gains on the news while S&P 500 futures, up nearly 10 points per cent earlier, quickly turned negative before stabilising with a gain of 2.4 points. Bonds on both sides of the Atlantic had sold off at the prospect of a Republican win, scared by fears that Bush tax cuts would prove inflationary. But as the election was thrown into doubt Treasuries retraced earlier losses to stand about a third of a point lower. The euro also initially suffered, as traders bet that a Republican government would steer clear of internationally coordinated intervention to prop up the ailing single currency. An apparent victory in the crucial Florida contest had news organisations and pollsters projecting Bush would become the 43rd President and be backed by Republican control of both the Senate and the House of Representatives. But a Gore aide said that, with Bush leading by a scant margin of 1,200 votes in Florida, a recount would automatically be triggered. Whichever candidate wins Florida wins the election. “I think we’ve just gone back a few hours. It’s a negative that we just don’t know,’’ said Richard Davidson, European strategist at Morgan Dtanley Dean Witter. The Eurotop 300 index was flat after being 0.5 per cent higher in opening trade. European stocks had risen in opening trade as the futures markets had pointed to an opening relief rally on Wall Street after the Republican party apparently captured the White House and Congress, raising hopes of big tax cuts. Healthcare, techs, chemicals, media and energy were the top gaining sectors, but off their highs after news that Gore had withdrawn his concession. Interest-rate sensitive banks and financials, and basic producers were weakest. Euro seen vulnerable The euro recovered by a third of a cent to $0.8575, from earlier one week lows, as news of the retraction hit. It had fallen as far as $0.8540 when Bush’s victory seemed certain, its weakest since November 1. Analysts said a Bush administration was expected to be unlikely to take part in any international intervention to support the euro, such as the joint action launched by the Group of Seven in September. Bush’s tax proposals were also expected to be more stimulative for the US economy, which has recently shown signs of slowing — a further positive for the dollar. |
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SEOUL, Nov 8 (AFP) — South Korea’s troubled Daewoo Motor Co. was today officially declared bankrupt, creditor banks said. “Daewoo Motor was officially declared bankrupt today. The decision was made at a meeting of creditor banks,” an official of Daewoo Motor’s main creditor bank, Korea Development Bank (KDB), told AFP. Daewoo Motor failed to meet payment of 44.5 billion won ($ 39 million) for two consecutive days, he said. The bankruptcy was declared after the Daewoo Motor union refused to back down on job cuts. Creditor banks had put back a deadline for declaring the country’s second largest car firm bankrupt today to give more time to the company’s union and management to narrow differences on 3,500 job cuts, some 20 per cent of the automaker’s workforce. The creditor banks or Daewoo Motor will now file for court receivership, an action to be accompanied by a freeze on all liabilities and claims on loans. A chain of bankruptcies involving Daewoo Motor’s suppliers is feared. It has 504 suppliers with 300,000 employees. Should the court decide on a receivership, it would appoint an administrator to try to turn the company around. If the court turns down the receivership request, assets of Daewoo Motor would be auctioned off and the proceeds divided among creditors. The bankruptcy is also expected to hamper efforts to sell Daewoo Motor to General Motors. But the KDB has said talks with General Motors to sell Daewoo Motor would continue even if the company was placed in receivership. Latest victim Built on the roots of a company that reconditioned US army jeeps after the 1950-53 Korean war, it became a pioneer of the South Korean car industry and led the Daewoo group’s ill-fated over-expansion. Like other South Korean “chaebol” conglomerates, Daewoo surged into new businesses and markets on borrowed money with little accountability. When the purse strings tightened owing to the Asian financial crisis, it collapsed with $ 80 billion of debt last year. Living on emergency loans, and after the failure of a take over by Ford Motor Co in September, the collapse of Daewoo Motor today under $ 10 billion of debt was just a question of time. Daewoo Motor, could now become a test of President Kim Dae-Jung’s resolve to see through reforms and bring South Korea’s corporate practice more in line with the rest of the world. |
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Badal gets $ 451 m
for Sangrur plant CHANDIGARH, Nov 8 — The Punjab Chief Minister, Mr Parkash Singh Badal, today clinched a $ 451 million investment package for the Sangrur ammonia fertilizer plant which had been held up due to the unavailability of funds. According to a press release here, Mr Badal entered into an MoU with SOROS India and AMAI groups to this effect. As a result, the Sangrur plant will be able to work at full capacity. Speaking at a reception organised by the Consulate General of India in New York, Mr Badal called upon industrialists, particularly Punjabis, to study the drastic changes made in the State to make it more investor-friendly. He spoke of major incentives such as waiving sales tax and subsidy on capital equity in information technology. Mr I.K. Gujral, former Prime Minister, asked the Punjabis there to help improve the socio-economic face of Punjab. |
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FCI sets up cell to export wheat NEW DELHI, Nov 8 — The government has set up a special cell in the Food Corporation of India to coordinate the export of wheat and rice with trading agencies, the Minister for Consumer Affairs and Public Distribution, Mr Shanta Kumar, said here today. Speaking to newspersons after inaugurating the 20th meeting of the Central Consumer Protection Council, the Minister said the MMTC, STC and Project Engineers Corporation have been asked to export wheat at the subsidised rate of Rs 4150 per tonne. He said the agencies are already searching for potential buyers to push out as much wheat as possible to create additional storage space in the Indian states. He said the government’s decision to lower export prices at par with those supplied under PDS for BPL families would boost exports. He said India could earmark upto 20 million tonnes of wheat and rice for immediate export this year. Efforts would be made to grow wheat and rice of international quality and preference for sustaining the exports in the years to come. He said the decision to export wheat and sugar on priority was a step towards rectifying the imbalance that has cropped into the country food production and trade pattern. |
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India & UK discuss
investor protection NEW DELHI, Nov 8 — The London Stock Exchange and the Department of Company Affairs today decided to cooperate in the area of safeguarding the interest of investors through the integration of e-commerce, e-business and e-corporate governance. A high powered British delegation led by the Deputy Head of Global Business Development of London Stock Exchange, Ms Caroline Goodman called on the Secretary, Department of Company Affairs, Dr. P.L. Sanjeev Reddy and other senior officials here today and discussed matters of mutual cooperation. Ms Goodman informed Dr. Reddy that at present 20 Indian companies were listed in London Stock Exchange. The process of listing Indian companies commenced in 1994 following globalisation of Indian economy. |
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Advisory panels for
tax payers on anvil CHANDIGARH, Nov 8 — Proper monitoring of the functioning of Information Collection Centres (ICCs) will be done by the Department of Excise and Taxation and for the redressal of grievances of industrialists a system of “Appeal” will be introduced in Punjab. Mr Adesh Pratap Singh, Minister for Excise and Taxation, stated this at a meeting with the PHDCCI here today. Mr Amarjit Goyal, Chairman, Punjab Committee, PHDCCI, pointed out difficulties which traders in the state might have to hace in case a decision of levying sales tax at the first stage at the level of manufacturers is taken. The framework of these measures should plug all loopholes like sales tax evasion and the system should not render the industry uncompetitive. Mr Adesh Pratap Singh said that the government is taking measures to solve these problems. Special consideratiion is being given to ensure that the manufactured goods, which have to further pass through the manufacturing process before becoming finished products should not be taxed. The setting up of advisory committees at the district, divisional and state levels for the redressal of grievances of tax payers is on the anvil, he said. |
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Maruti claims 100 pc capacity utilisation NEW DELHI, Nov 8 (PTI) — Srike-ridden Maruti Udyog Ltd (MUL) today claimed to have achieved 100 per cent capacity utilisation even as more workers resumed duty. Market leaders in passenger car segment, Maruti produced close to 7,200 vehicles in the first six days of November 2000 which was almost equal to its capacity of producing 1,200-1,250 vehicles per day, an MUL spokesperson told PTI. More than 3,800 workers out of the total workforce strength of 5,700 have resumed work, he said adding that the seven-week old strike by MUL Employees Union was fast loosing grounds as more and more people were joining work. “Since October 12, more than 50 per cent of the striking employees have resumed work and we expect to see more workers resuming duties in the coming week,” he said. The MUL Union is on strike demanding better incentive and pension schemes. The spokesperson said the company was matching the current market requirement and there was hardly any waiting list. “Except for the latest variant Alto, which has 2-3 weeks waiting list, we are matching the current market demands,” he said. MUL produced around 17,000 vehicles in October and expects around 30,000 vehicles during the current month. |
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Salarymen hold key to Japan’s recovery TOKYO, Nov 8 (Reuters) — Why can’t Japan’s economy get back on its feet? Ask a salaryman. Data show that middle-aged workers — led by salarymen or the white-collar workers who propelled a spending splurge in the 1980s — are increasingly a source of concern for the world’s second-largest economy. Beset by falling wages, rising mortgage payments, fears over social security benefits and unnerved by a loss of job security, they are in no mood to go shopping. But economists say a loosening in the wallets of workers in their 40s and 50s — who in more prosperous times would be in their prime spending years — is crucial if Japan is to pull out of a decade of economic malaise. “Without them, we believe a true recovery in consumer spending cannot occur,” said Ronald Bevacqua, economist at Commerzbank Securities in Tokyo. Consumer spending represents the biggest chunk of the economy —around 60 per cent of gross domestic product. Its turnaround is considered the key missing ingredient in the complex recipe of Japan’s recovery from its worst slump in half a century. Other areas of the economy are showing signs of vigour. Industrial output in July-September rose for the fifth straight quarter for the first time since 1989-1992, corporate profits are up and capital spending has jumped ahead this year. But policymakers are waiting for a strong rebound in consumer spending before declaring the recovery self-sustaining and Japan effectively out of danger of another relapse into recession. Economists say this boils down to the salaryman. “They are the ones that should be powering the next wave of consumer spending,” Bevacqua said.
The youth factor Young single Japanese were the biggest spenders last year, snapping up mobile phones, laying down money for computers and choking clothing stores in trendy districts such as Tokyo’s Shibuya where signs of a recession are virtually non-existent. But single households only represent about 15 per cent of consumer spending, with nearly all the rest accounted for by middle income workers who head over half of Japanese households. Economists and policymakers expect growth in manufacturing will eventually feed into incomes, breathing confidence into middle-age workers and lifting spending on big-ticket non-durable items such as furniture and in recession-hit services. But this scenario, which would create a knock-on effect on the rest of the economy, has so far not happened. “Unless overall salary incomes recover and fears of job security go away, it’s probably unlikely that this portion of consumer spending will get stronger anytime soon,” said Yoshito Sakakibara, senior economist at Merrill Lynch Japan. For some economists, including Bevacqua, this means gross domestic product growth could be constrained to around 0.9 per cent for calendar 2001, against a consensus of around 2 per cent. |
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Next decade to be age of the robot TOKYO, Nov 8 — The creator of Sony’s robot-pet Aibo said on Tuesday his toy would be the companion of the future, but its days as a guide dog for the blind were still far off. “The 1980s was the decade of the PC, the 90s of the Internet, but I believe the decade just starting will be the decade of the robot,’’ Toshitada Doi, President of Sony Digital Creatures Laboratory, told a news conference. The upgraded and cheaper version of the Aibo hits store shelves on November 16. “Reaction so far is very, very, very good,’’ Mr Doi said. The souped-up successor to the original Aibo dog has an array of new features. It is equipped with a camera in its nose to snap those special moments, it can also better express anger or joy and has a much cheaper price tag — a sign that Sony is getting serious about the pet robot business. Mr Doi said he was confident of the popularity of Aibo, which means companion in Japanese. “Ten years from now, I believe most households will keep two or three personal robots and their performance will increase 100 times. My expectation is that these robots will be able to talk naturally with humans, say about the latest gossip.’’ Mr Doi stopped short of seeing a future for Aibo as a prototype for utility robots, saying the present technology was too dangerous to be used in designing robots that could guide the blind or provide care to the elderly. Worries also remain over how the robot will fare in markets outside robot-crazy Japan, which has seen the bulk of sales for the first-generation Aibo. Plan to lift FDI curbs in telecom NEW DELHI, Nov 8 (UNI) — The government may ease further the sectoral cap of 49 per cent allowing 100 per cent foreign direct investment (FDI) in telecom services. Minister of State for Communications Tapan Sikdar today said the government has appointed a committee under the chairmanship of the Finance Minister to review the sectoral cap of 49 per cent equity investment in telecom services and the report was expected to be ready soon. Current rules permit 100 per cent FDI in some telecom sectors such as Internet access provision, infrastructure providers supplying dark fibre, electronic mail and voice mail. The foreign equity limit in other telecom sectors is restricted at 49 per cent. The Finance Ministry had suggested that the cap on other sectors including cellular telephony be raised to 100 per cent to attract greater foreign investment. Inaugurating a conference on Telecom Financing, the minister said the government is also contemplating establishment of a national telecom financing corporation covering infotech and broadcasting sector and formulation of a national rural telecom financing
policy." the modalities are being worked out by the government in consultation with the telecom, IT and broadcasting sectors. The opening up of DTH is a precursor to convergence where entertainment, information and communication will come under one instrument for which the funding requirement is a huge Rs 50,000 crore by 2005. |
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No wife-beating in Nov! TORONTO: November is “Wife Assault Prevention Month” in the Canadian province of Ontario to highlight the growing incidence of domestic violence. “It was done to emphasise that our government will not tolerate domestic violence”, says Helen Johns, Ontario’s minister responsible for women’s issues. According to statistics supplied by the Metro Toronto Police, abuse by husbands, ex-husbands or boyfriends affects one out of every six women. There are no definitive figures on incidents involving South Asian women, but informed sources say the number is on the high side. Invariably, however, these women don’t press charges against their husbands. The government funding is directed towards 40 programmes and services designed to combat violence against women, Johns said. The projects include providing support for women and children affected by domestic violence, increasing the number of domestic violence courts from 16 to 24 and the introduction of prevention and intervention
programs in schools to help teachers identify children who are at risk of neglect or physical or emotional harm. KBC episode ‘not rigged’ MUMBAI: The programming chief of Star Plus, which airs “Kaun Banega Crorepati” (KBC), has denied allegations that the special Divali episode featuring film stars Aamir Khan and Sonali Bendre were rigged. Samir Nair, who now looks after programming on the entire Star TV band in India, has brushed off reports in sections of the Mumbai media accusing KBC of rigging the episode in which Khan and Bendre together made more than Rs.7.5 million by correctly answering the KBC questions. Nair told IANS: “I think it’s highly unfair to Aamir and Sonali to say that their answers were rigged. Some papers in Mumbai even accused the one-crore rupee winner Harshvardhan Nawathe of answering rigged questions.” Some media observers believe that the rumours about KBC are being planted by Star Plus’ rival channels who now have their own equivalent of KBC to promote and popularise, some offering as much as Rs.100 million. But Nair shrugs at this possibility too. “If this is true then it’s like cutting the nose to spite the face. If a game show with a crore-rupee prize is rigged then a game show with a ten-crore rupee prize is sure to be rigged, right?” He puts heart
on display LONDON: On
Wednesday British businessman Robert Moss was able to look into his own heart. So will millions of others who go to see it pickled in a jar of formaldehyde at the Science Museum in London. Mr Moss (61) has a new heart, transplanted at Papworth Hospital, near Cambridge, in August after surgeons found a suitable donor. He caught rheumatic fever at the age of seven and despite increasing difficulties for the next 54 years he lived a busy life enjoying cross-country running when he was young, reading law at Oxford University, becoming involved with family companies. He had open-heart surgery in 1994 and a pacemaker installed in 1996. This year surgeons at Cambridge replaced his heart. So Mr Moss presented his old heart, swollen to three times normal size, to the nation. He wants people to know about the crisis in transplant surgery in the UK, with patients outnumbering donors many
times over. He still needs to take immunosuppressant drugs and does not think about having someone else’s heart inside him for fear of the process of immune rejection. ``So far I have shown no signs of rejection whatever, although I do realise that everybody does sooner or later,” he added. The heart remains his. To display it in its new Wellcome wing the museum had to apply to Her Majesty’s inspector of anatomy at the Royal College of Surgeons. After the exhibition, the heart will again be Mr Moss’s to dispose of. He is more interested in his new life. ``It is like having a reconditioned engine in your car,” he says. ``The difference is absolutely staggering.” |
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Cosmo Films ATEC Software Honoured ATM at SBP |
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