China's central bank Governor Zhou Xiaochuan said there's room to raise interest rates as the government tries to tame the fastest inflation in 11 years.
``There is still room for further interest-rate increases,'' Zhou said in Beijing today. ``U.S. rate cuts recently have made our rate decisions more difficult.''
China is trying to rein in prices without choking off growth in the world's fourth-biggest economy. Zhou and other senior officials briefed reporters amid economists' skepticism that the government's goal of capping inflation at 4.8 percent this year is realistic.
``We believe that the government is still underestimating the risk of inflation,'' said Ma Jun, chief China economist at Deutsche Bank AG in Hong Kong. ``Our current forecast of CPI inflation is 6.4 percent for this year.''
China raised rates six times last year, pushing the key lending and deposit rates to nine-year highs of 7.47 percent and 4.14 percent. Federal Reserve cuts to borrowing costs may increase the flow of money into China from investors seeking bigger returns just when Zhou is trying to rein in the money supply.
The inflation rate surged to 7.1 percent in January on food and fuel costs.
Friday, March 7, 2008
N-deal: Left seeks meeting of UPA-Left Committee
As government raised the pitch on the Indo-US nuclear deal in the face of Washington's insistence on a May deadline, the Left allies have also stepped up pressure by seeking an immediate meeting of UPA-Left Committee on the issue by March 15.
CPI(M) General Secretary Prakash Karat has written to External Affairs Minister Pranab Mukherjee, government's key interlocutor with the allies on the deal, asking for immediate convening of a meeting of the UPA-Left Committee on the nuclear deal by mid-March.
CPI leader D Raja, a member of the Committee, met Karat this morning and discussed the strategy on getting from the government its position on whether it wants to go ahead with the deal despite Left's opposition to it.
Sources said Karat's letter comes against the backdrop of reports that the text of the draft India-specific Safeguards Agreement with the IAEA is more or less ready and the Left parties would like to have a discussion on that.
The Left missive also assumes significance in the context of the American deadline of May for the 123 agreement to be sent to the US Congress.
It is necessary for the government to complete the IAEA agreement by March end so that they can proceed to the Nuclear Suppliers Group for getting a waiver to do nuclear commerce with other countries.
"The Americans have set a deadline for the government. The Left parties will also have to set a deadline for the government. The next meeting of the UPA-Left Committee will be crucial," a senior Left leader told media.
CPI(M) General Secretary Prakash Karat has written to External Affairs Minister Pranab Mukherjee, government's key interlocutor with the allies on the deal, asking for immediate convening of a meeting of the UPA-Left Committee on the nuclear deal by mid-March.
CPI leader D Raja, a member of the Committee, met Karat this morning and discussed the strategy on getting from the government its position on whether it wants to go ahead with the deal despite Left's opposition to it.
Sources said Karat's letter comes against the backdrop of reports that the text of the draft India-specific Safeguards Agreement with the IAEA is more or less ready and the Left parties would like to have a discussion on that.
The Left missive also assumes significance in the context of the American deadline of May for the 123 agreement to be sent to the US Congress.
It is necessary for the government to complete the IAEA agreement by March end so that they can proceed to the Nuclear Suppliers Group for getting a waiver to do nuclear commerce with other countries.
"The Americans have set a deadline for the government. The Left parties will also have to set a deadline for the government. The next meeting of the UPA-Left Committee will be crucial," a senior Left leader told media.
Pressure on oil cos as crude price rises to $106
TIMES NEWS NETWORK
New Delhi: International crude's relentless march northwards, testing the $106 a barrel-mark on Friday, will completely wipe out the marginal reprieve state-owned oilmarketing companies received from last month's increase in pump prices and build pressure on finance minister P Chidambaram to reduce oil taxes, a mood he is unlikely to share in the season of poll handouts.
Last month, the government raised prices of petrol by Rs 2 a litre and diesel by Re 1 but left cooking gas and kerosene prices untouched. This gave a benefit of Rs 840 crore, a drop in the ocean when they were looking at ending the year with a loss of Rs 71,808 crore. Again, the inadequacy of the measure becomes stark considering that the present pump prices correspond to roughly $70 a barrel, leaving a yawning gap with international price.
The government's simultaneous move to increase the quantum of bonds— Centre's IOUs—to 56-57% of the losses amounting to Rs 41,000 crore, up from 42.7% or Rs 24,000 crore also did not do much to lift oilmarketing firms' spirits as the revision had shaved the retailers' share of loss-bearing by a mere 1.2% from 8.4%.
The domestic crude and gas producers such as ONGC, OIL and GAIL were to continue to share 24% of the total losses, while the marketing firms were to continue to suffer their share of under-recovery.
During the discussions ahead of the price increase, a big and influential section among the policymakers—including agriculture minister Sharad Pawar and oil minister Murli Deora—steadfastly demanded reduction in customs and excise levies on motor fuels.
New Delhi: International crude's relentless march northwards, testing the $106 a barrel-mark on Friday, will completely wipe out the marginal reprieve state-owned oilmarketing companies received from last month's increase in pump prices and build pressure on finance minister P Chidambaram to reduce oil taxes, a mood he is unlikely to share in the season of poll handouts.
Last month, the government raised prices of petrol by Rs 2 a litre and diesel by Re 1 but left cooking gas and kerosene prices untouched. This gave a benefit of Rs 840 crore, a drop in the ocean when they were looking at ending the year with a loss of Rs 71,808 crore. Again, the inadequacy of the measure becomes stark considering that the present pump prices correspond to roughly $70 a barrel, leaving a yawning gap with international price.
The government's simultaneous move to increase the quantum of bonds— Centre's IOUs—to 56-57% of the losses amounting to Rs 41,000 crore, up from 42.7% or Rs 24,000 crore also did not do much to lift oilmarketing firms' spirits as the revision had shaved the retailers' share of loss-bearing by a mere 1.2% from 8.4%.
The domestic crude and gas producers such as ONGC, OIL and GAIL were to continue to share 24% of the total losses, while the marketing firms were to continue to suffer their share of under-recovery.
During the discussions ahead of the price increase, a big and influential section among the policymakers—including agriculture minister Sharad Pawar and oil minister Murli Deora—steadfastly demanded reduction in customs and excise levies on motor fuels.
Bosch
Bosch net profit rises 91.52% in the December 2007 quarter
Sales rise 15.08% to Rs 1107.02 crore
Net profit of Bosch rose 91.52% to Rs 124.41 crore in the quarter ended
December 2007 as against Rs 64.96 crore during the previous quarter ended
December 2006. Sales rose 15.08% to Rs 1107.02 crore in the quarter ended
December 2007 as against Rs 961.94 crore during the previous quarter ended
December 2006.
For the full year, net profit rose 11.17% to Rs 609.21 crore in the year
ended December 2007 as against Rs 548.00 crore during the previous year
ended December 2006. Sales rose 13.11% to Rs 4279.63 crore in the year ended
December 2007 as against Rs 3783.68 crore during the previous year ended
December 2006.
capmkt
Sales rise 15.08% to Rs 1107.02 crore
Net profit of Bosch rose 91.52% to Rs 124.41 crore in the quarter ended
December 2007 as against Rs 64.96 crore during the previous quarter ended
December 2006. Sales rose 15.08% to Rs 1107.02 crore in the quarter ended
December 2007 as against Rs 961.94 crore during the previous quarter ended
December 2006.
For the full year, net profit rose 11.17% to Rs 609.21 crore in the year
ended December 2007 as against Rs 548.00 crore during the previous year
ended December 2006. Sales rose 13.11% to Rs 4279.63 crore in the year ended
December 2007 as against Rs 3783.68 crore during the previous year ended
December 2006.
capmkt
BPCL
Bharat Petroleum Corp's is likely to process 9.5 percent less crude at its two key refineries in the next fiscal year beginning April compared with this year, due to planned shutdowns.
Saturday, March 1, 2008
A new Multi bagger
Global board reccomended to buy at 2.10
tgt 6 by year end.
i..e., 3 times the return
tgt 6 by year end.
i..e., 3 times the return
Budget View
Given the election year, the finance minister (FM) tabled a populist budget aimed at pleasing a large section of rural population and also the salaried middle class. Apart from the substantial increase in budgetary allocation for rural and social infrastructure, the budget has proposed huge debt waiver and relief worth Rs60,000 crore to farmers. But in spite of the increased expenditure, the fiscal prudence has been maintained with fiscal deficit target set at 2.5% for 2008-09.
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