RICHEST INDIAN MUKESH

Energy tycoon and Reliance Industries Chairman Mukesh Ambani is India's richest man with personal assets of USD 18.9 billion, a report says. According to the China-based Hurun India Rich List, Ambani retained the top position for the second year even after a wealth decrease of 2 per cent. Ambani is followed by London-based steel baron L N Mittal with assets of USD 15.9 billion. Mittal's wealth declined 6 per cent from last year. Sun Pharmaceuticals' founder Dilip Shanghvi broke into the top three for the first time with a 66 per cent surge in his wealth. "This rise in stock price was supported by the expected sales of the cancer drug Doxil, following Janssen Pharma Inc's admission of shortage of the drug supply," the report said. Among others in the top 10 are: Wipro's Azim Premji (4th) with assets of USD 12 billion, HCL Technology's Shiv Nadar (5th, USD 8.6 billion), Grasim Industries' Kumar Mangalam Birla (6th, USD 8.4 billion), Godrej Group's Adi Godrej (7th, USD 8.1 billion). The other three who make the list of top 10 billionaires are Pallonji Mistry of Shapoorji Pallonji & Co (USD 8 billion) ranked 8th, Shashi & Ravi Ruia (Essar Energy, USD 7.6 billion) ranked 9th and Sunil Mittal (Bharti Airtel, USD 7.3 billion). Anil Ambani of Anil Dhirubhai Ambani Group occupies the 11th position with a personal fortune of USD 7.1 billion. Bollywood superstar Shah Rukh Khan, who set up Red Chillies Entertainment, was ranked 114th and has personal assets of USD 400 million. Men dominate the rich list with only 4 per cent occupied by women.

Steel baroness Savitri Jindal, the non-executive chairperson of O P Jindal Group, is the richest Indian woman with a personal fortune pegged at USD 5.1 billion, followed by Anu Aga, Kiran Mazumdar-Shaw and Shobhana Bhartia ranked third, fourth and fifth richest Indian women, respectively. "Despite a sluggish economic growth of around 5 per cent, average net worth of millionaires in Hurun India Rich list 2012 increased by USD 100 million in 2013, demonstrating the resilience of Indian corporates during these tough times," said Anas Rahman Junaid, Publisher at Large, Hurun Report India.
The minimum cut-off mark for finding a place in this year's coveted list was USD 300 million and wealth calculations were as of October 18, 2013, when the rate of exchange to the US dollar was Rs 61.5.

GOLD GROWS ON TREES

Researchers said today they had found a surprising marker for deep-buried gold, miniscule traces in the leaves of Eucalyptus trees growing over veins of the yellow metal. The unusual finding may prove a boon for prospectors in a time of dwindling gold reserves and skyrocketing prices, with new discoveries down 45 per cent in the past decade, according to a study in the journal Nature Communications. "This link between... vegetation growth and buried gold deposits could prove instrumental in developing new technologies for mineral exploration," said a press summary. Eucalyptus trees can send their roots deep into the ground in search of water in dry areas, even breaking into gold-rich zones where they absorb microscopic metal particles as they drink. A team of scientists from Australia said they have now shown that gold can be absorbed by the roots and travel through the tree, all the way to its leaves, though in negligible concentrations. According to the World Gold Council, more than 174,000 tonnes of gold have been extracted from Earth since the beginning of civilisation. In 2011, the US Geological Survey estimated there were 51,000 tonnes of gold left in reserve in the world. The price of the precious metal skyrocketed 482 per cent between December 2000 and March this year. Sixty per cent becomes jewellery, but gold is also a crucial component in electronics and is used in medical technology, including for cancer treatment. For the study, the team investigated Eucalyptus trees growing at two gold prospecting sites in south and west Australia, using X-ray imaging to check for gold in the leaves, twigs, bark, litter and soil. Eucalyptus trees, some of which can grow taller than 10 metres have an unusually deep and extensive root system -- some have been documented at a depth of 40 metres. The concentrations were weak -- several hundredths to thousandths of a gram per tonne, but highest in the leaves, the researchers found. "Gold is probably toxic to plants and is moved to its Minute traces of gold have sometimes been found on plants, but it had never been clear whether these had been absorbed or blown there by the wind. The new finding "promotes confidence in an emerging technique that may lead to future exploration success and maintain continuity of supply" of gold, wrote the study authors.

REALTY EXPERTS IN 15 STATES

The Centre will soon appoint real estate experts and consultants in 15 major states for helping them to prepare affordable housing policy and streamline the rules for approving realty projects, a top government official said today. "We are coming out with a policy where we will be engaging large number of real estate experts and consultants to each individual states and asked them to study various rules and regulations related to building plan approvals," Housing and Urban Poverty Alleviation Secretary Arun Kumar Misra said while addressing a Assocham conference on the real estate. Misra said the Centre would identify 12-15 major states where these experts would be engaged for simplification on the rules and regulations. Realtors apex body CREDAI have been demanding a single- window clearance for approvals of realty projects, saying that the cost goes up by 40 per cent due to delay in approvals, which generally takes 12-24 months. Speaking on the sidelines, Misra said that the process of engaging consultants has already started and the same would be completed in the next two months. Asked about scope of work of these experts, the secretary said: "They will help the states to develop a housing policy with special emphasis on the affordable housing and also study the various laws, rules and regulations which are involved in getting a clearance of building activities". Misra said the experts would also develop a software that will help the states in expediting the approval process. The secretary said that the investment in appointing these consultants would largely be borne by the Centre. Apart from delay in approval process, Misra listed out other bottlenecks faced by the real estate sector that are limited land, existing rent law and high cost of funds. On relaxing FDI rules in realty sector, Misra said the Cabinet note has already been circulated. He said the ministry has suggested bringing down the minimum built-up area to 20,000 square meters from the existing 50,000 square meters. Foreign direct investment (FDI) of 100 per cent is allowed in real estate through the automatic route, subject to conditions, including a minimum built-up area for projects. Misra highlighted that the Centre has sanctioned two schemes which will mobilise money by the government and institutional sectors to develop 2 million houses in next four years and has earmarked investment of Rs 40,000 crore. To facilitate private sector participation in the affordable housing segment, he said the government has redesigned affordable housing in partnership scheme in which it would give a subsidy of 10-15 per cent of housing cost to build a house and make it available for the poor sections.

ONIONS @ Rs.100/-

Onion prices touched Rs 100 per kg in some major cities as supplies remained tight. Agriculture Minister Sharad Pawar says that rates will remain high for 2-3 weeks. Refusing to ban onion exports, the Centre asked states to invoke Essential Commodities Act to crackdown on hoarders. It, however, started the process of importing onion -- via co-operative NAFED -- from Pakistan, Iran, Egypt and China to cool down the rates. It also relaxed the conditions for imports to augment domestic supply. According to the data compiled by the Consumer Affairs Ministry, the average price in the major 57 cities stood at Rs 70 per kg with Jammu recording highest at Rs 90 per kg and the Bangalore the cheapest at Rs 32 per kg. However, as per the data available from centres, onion is being sold at Rs 100/kg in Patna and Jammu in retail markets. In the national capital, Jaipur, Chandigarh and Bangalore, retail prices are ruling at Rs 80-90 per kg. Onions are available in the range of Rs 60-80 in Mumbai, Bhopal, Lucknow, Chennai, Guwahati, Srinagar, Imphal and Kolkata. "...next two to three weeks will be tough and ultimately we have to find a solution," Pawar said in Bangalore. Asked whether he meant that the prices would come down in the next 2-3 weeks, he said: "No, no. I am not an astrologer. But I know something about crops. On my own assessment, this situation will continue for the next two to three weeks."

SENSEX TOUCH 21000 AFTER 3 YEARS

The BSE benchmark Sensex today crossed the 21,000-mark after nearly three years but frittered away the gains to close 42 points down as cautious investors booked profits ahead of next week's RBI monetary policy meet and monthly expiry of derivative contracts. The bluechip index, which had surged to 21,039.42 at the outset for the first time since November 2010, gave up gains to close down 42.45 points, or 0.20 per cent, at 20,725.43. 19 Sensex stocks declined led by Reliance Industries, Infosys, Tata Consultancy Services and Wipro. Coal India, BHEL, Bajaj Auto, Hero MotoCorp, Dr Reddy's, Jindal Steel, NTPC and Tata Steel also saw losses. "The Sensex opened on a strong note despite negative global cues. A sharp drop in crude oil prices may have aided market sentiments," said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities. On similar lines, the 50-scrip National Stock Exchange index Nifty fell by 14 points, or 0.23 per cent, to 6,164.35, after climbing to 6,252.45. Also, SX40 index, the flagship index of MCX-SX, closed at 12,331.32, down 7.5 points. Across the market, IT, Power and Realty shares ended the session in negative zone while Capital Goods, Auto and Consumer Durables closed in the green. Brokers said the rally fizzled out as investors judged the rally as overdone. Also, a section of the market appeared worried after recent disappointments in earnings led by Jet Airways and Ambuja Cements and booked profits, they added. Sectorally, the IT sector index suffered the most by losing 1.77 per cent, followed by Teck index (1.53 per cent), Power index (1.14 per cent) and Realty index (1.12 per cent).

GOOD BYE TO DUAL CURRENCY IN CUBA

Cuba announced today it was ending an unpopular 19-year-old dual currency system that has contributed to a growing wealth gap between Cubans with access to dollars and those without. The official Communist Party newspaper Granma said the new unified currency would be phased in over time. Under the current system, Cuba exchanges dollars received through tourism, trade and overseas remittances into convertible Cuban pesos at a rate of one for one. But the state pays workers' salaries and charges for services in ordinary pesos, which are worth far less, 24 to one convertible peso. Many basic necessities here are available only in convertible pesos at special state-run stores, a source of tension between Cubans who have access to dollars and the majority who don't. Ending the dual system, which has been in effect since 1994, was a key demand raised at the VI Communist Party Congress in April, 2011. Under President Raul Castro, Cuba has been slowly overhauling its Soviet-style economy, allowing private enterprise on a small scale as it tries to slim down hulking state-run bureaucracies. Granma said Cuba's council of ministers approved a timetable for implementing "measures that will lead to monetary and exchange unification." While it was not clear how long the changeover will take, Granma said it would begin with companies operating in Cuba and extend to individuals at a later date. Granma said the change would contribute to efficiency, improve the way economic events are measured and serve as a stimulus to enterprises that export goods and services, as well as to those that produce for local consumption.

DEOSIT FRAUDS TO BE CRUSHED

To safeguard investors from fraudulent money-collection schemes, the government today proposed mandatory insurance cover for public deposits garnered by companies and hefty penalty of up to 18 per cent annual interest for defaulters. The premium of the deposit insurance cover would need to be paid by companies themselves and a penalty at an annualised interest rate of 15 per cent would be slapped on those which do not provide a deposit insurance to their depositors. The proposed measures, which form part of the draft rules for the new Companies Act, also bar the companies from promising huge returns and hefty agent commissions in excess of the prevailing rates prescribed by RBI for such deposits. Releasing the draft rules, the Corporate Affairs Ministry said that action would be initiated against the companies that fail to comply with the new rules, called Regulations for Acceptance of Deposits by Companies.
Besides, any violating company and each of its officers and other persons, who could be in default, would be punishable with be fined Rs 10,000, with a further fine for continuing default of Rs 1,000 for every day of contravention.
Under the deposit insurance scheme, the companies would need to enter into a contract to insure the total principal amount as also the promised interest component for the depositors. However, premium to be paid for such insurance can not be recovered from the depositor and the money has to be paid by the company itself. All deposit-taking companies would need to maintain a Deposit Repayment Reserve Account with a scheduled bank and this account would need to have at least 15 per cent of the total amount of deposits. The government also proposed strict disclosure norms and other eligibility criteria before offering any deposit scheme. 
Every company inviting deposits should provide for security by way of a charge on its assets, excluding intangible assets, for an amount equivalent to the deposits collected.
Also, amount secured by way of charge on assets should not exceed the market value of such assets.
As per the draft norms, deposit taking companies should appoint one or more independent trustees to ensure security for deposit amounts.
Among others, key managerial personnel or any other officer or employee of the company are barred from becoming deposit trustees.
In case the companies default on deposit insurance contract, they should repay the amount of deposits covered under insurance cover within fifteen days.
"If such a company does not repay the amount of deposits within fifteen days, it shall pay 15 per cent interest per annum for the period of delay and shall be treated having defaulted and liable to be punished in accordance with the Act," according to the draft rules.
Tightening the norms, companies seeking deposits are barred from advertising the scheme till they have informed the Registrar at least 30 days prior to the issue. The company should publicise the deposit scheme and the circular should be posted on its website.
Further, only those authorised in writing by the company to solicit deposits, would be entitled for brokerage to avoid multi-level commission payments.
Companies that fail to make the payments even after maturity period would be liable to an annual penal interest of 18 per cent per annum, irrespective of whether they are secured, unsecured, or matured and claimed but remaining unpaid.
Moreover, companies would not be allowed to make changes in the terms and conditions related to deposits after accepting them.Besides, the Registrar of Companies (RoC) can take action if it is found that deposits have been accepted by a company for a fraudulent or unlawful purpose or are not in compliance with the provisions of the Act. 

TEACHER STUDENT CONTACT ON FB BANNED

A German state has banned students and teachers from becoming friends on Facebook, citing that it was not possible for them to keep a professional relationship if they could see each others photos and postings. The education ministry in Rhineland-Palatinate, in western Germany, informed its schools about its new rules in a booklet, The Local reported quoting a spokesman. The state's data protection commissioner, Edgar Wagner, said the educational role of schools did not fit with the business model of Facebook -- to collect personal data for commercial reasons. He said that there were plenty of other ways pupils and teachers could get in touch. In other German states also there are strict rules about teacher-pupil contact, the report said. In Baden-Wurttemberg the use of social networks is restricted in schools. Saxony said in the summer that it was also working on similar rules. In Schleswig-Holstein teachers were told to stop using Facebook to plan school trips or to give out grades at the end of 2012. But Rheinland-Palatinate is the first German state to ban friendship between staff and children all together, the report said. Teachers have also been told to stop using the platform to give out grades, set homework and plan trips, it said.

CHITRA ENTERS FORTUNE POWERFUL WOMEN'S LIST

Four Indians led by ICICI Bank CEO Chanda Kochhar have made to Fortune magazine's global list of top-50 women business leaders, while PepsiCo chief Indra Nooyi has been ranked second in a similar list for the US. Kochhar has been ranked fourth, followed by National Stock Exchange chief Chitra Ramkrishna at 17th, Axis Bank's Shikha Sharma at 32nd and HSBC's Naina Lal Kidwai at 42nd place among the Indians on the international list of most powerful women in business. This list is topped by Brazilian energy giant Petrobras' CEO, Maria Das Gracas Foster, followed by Turkish conglomerate Sabanci Holding's Guler Sabanci at the second and Australian banking giant Westpac's CEO Gail Kelly at the third.
Kochhar, Managing Director and CEO of India's largest private sector bank, has moved up one position from her fifth position on the 2012 list, while NSE's Ramkrishna has made it to the list for the first time.
Shikha Sharma and Naina Lal Kidwai were ranked 37th and 40th, respectively on Fortune's international list for most powerful business women.
On Chitra Ramkrishna, a newcomer to the International Power 50 list, Fortune said she has made history as the first woman to head an exchange in India. "The National Stock Exchange lifer, who was part of the core five-member team selected by the government to create a screen-based exchange in 1993, has shattered the glass ceiling, making history as the first woman to head an exchange in India," Fortune said. The board is banking on her twenty years of experience to oversee India's largest exchange —- 7th largest in the world -- with a total listed market capitalisation of some USD 1 trillion, it added. A separate list for most powerful business women in the US, also complied by Fortune magazine, continues to be topped by technology giant IBM's Ginni Rometty, while PepsiCo's Indian-origin CEO Nooyi has retained her second position.

DuPont's Ellen Kullman is ranked third, followed by Lockheed Martin's Marillyn Hewson and Facebook's Sheryl Sandberg at the fourth and fifth positions. Fortune said the list has been compiled broadly on the basis of four criteria - the size and importance of the business headed by the person in the global economy; the health and direction of the business; the arc of the business leader's career; and social and cultural influence. About Nooyi, the magazine said that PepsiCo, the largest food and beverage company in the US, saw its share price hit an all-time high earlier this year and it today boasts 22 billion-dollar brands. 

DO SENSEX TOUCH 21000 BY DEEWALI?

The BSE benchmark Sensex is likely to hit the much awaited psychological level of 21,000 this Diwali, driven by robust foreign fund inflow, good quarterly earnings from corporates so far and favourable global cues, say analysts. The Sensex touched its one-year high level of 20,932.23 on Friday triggered by global cues as concerns about the US tapering eased and China's economic growth picked up.
The 30-stock index is 323.88 points away from its all- time peak of 21,206.77 hit on January 10, 2008. Meanwhile, foreign institutional investors (FIIs), the main driver of the Indian stock market, have poured in nearly Rs 7,000 crore (USD 1.12 billion) in the domestic equity market since the beginning of this month.
With this, the total foreign investment in the Indian stock market has reached Rs 80,174 crore (USD 14.77 billion) so far in 2013, as per data available with market regulator Sebi. Marketmen attributed the foreign fund inflows to easing concerns over the US tapering.
"Markets rose sharply on Friday, buoyed by the postponement of the debt ceiling issue and on likely expectations that the Fed will not taper the stimulus programme in its next meeting, pending final resolution of the debt ceiling programme," said Dipen Shah, Head of Private Client Group Research at Kotak Securities.
The Sensex has gained 1,365.74 points or 6.99 per cent so far this month to 20,882.89.
According to analysts, the way things are looking positive for the country and the liquidity force will take markets to higher levels. "The Sensex is likely to remain strong in near-term. The kind of inflows and liquidity that we are seeing indicates that the Sensex may scale new highs in the days to come. The Sensex is likely to touch its all-time high by Diwali as the global set-up is good, results by Indian Inc is reasonably decent and most importantly FII inflows are robust," said Paras Bothra, Research Head at Ashika Stock Brokers.
The sentiment in the market last week was boosted on speculation that Federal Reserve could maintain monetary stimulus next year on concerns that the 16-day partial US government shutdown may curb growth in the world's largest economy.
"Markets may move up further as indications from the US markets are positive, corporate results are good. Besides, FIIs are positive on the Indian stock market. So, it is likely that markets may touch their record high levels by Diwali," said Alex Matthews, Geojit BNP, Research Head. 

MFsCAN HOLD GOLD CERTIFICATES IN PHYSICAL FORM

Market watchdog Sebi today allowed Mutual Funds to hold gold certificates issued by banks in the physical forms as well, in addition to the ones in demat form, for investments made in Gold Deposit Schemes. So far, MFs were allowed to hold such gold deposit certificates only in dematerialised or electronic forms.
"Gold certificates issued by banks in respect of investments made by gold ETFs in GDS (Gold Deposit Scheme) can be held by mutual funds in dematerialised or physical form," the Securities and Exchange Board of India (Sebi) said in a circular today. Sebi said the circular has been issued "to protect the interests of investors in securities and to promote the development of, and to regulate the securities market".
Earlier this year, the market watchdog had allowed gold ETFs of mutual funds to invest in GDS of banks, as part of its efforts to utilise idle assets of the precious metal for more productive purposes. As per the norms, total investment by gold ETFs in GDS cannot exceed 20 per cent of total asset under management of such schemes. It was also stated that before investing in GDS, mutual funds would have to put in place a written policy related to the investment with due approval from the Board of the Asset Management Company and the Trustees.

PESIDENT'S WORDS EYE OPENER FOR CENTRE

BJP recently praised President Pranab Mukherjee for his statement that Pakistan should dismantle terror infrastructure on its soil, saying he has really spoken for the people of the country and the Centre should learn a lesson from him. Apparently hitting out at the government for holding talks at the highest-level despite tensions along the border, senior party leader Ravi Shankar Prasad today said India has failed to learn the lessons "rightly". "Is the government going to take some lessons from 'Rashtrapatiji'(the President) who has really spoken for the people of the country and their feeling that Pakistan must dismantle the infrastructure of terror. "Talk and terrorism cannot go hand in hand. I regret to say that Centre is yet to learn the lesson rightly," Prasad said when reporters asked for his reaction about Pakistan High Commissioner to India Salman Bashir's remarks that talks should continue irrespective of what was happening at the border. Prasad said he was more concerned about the Indian government than the suggestion made by Bashir, because the talks between the Prime Ministers of India and Pakistan in New York was taking place when "planning in the Keran sector was being executed by the Pakistan Army". President Pranab Mukherjee in an interview to a Turkish daily had said,"We demand of Pakistan that the infrastructures created by the terrorist outfits in your territories, dismantle them! Keep your commitments to India, don't allow terrorists to use your land to perpetrate their nefarious activities on India". Mukherjee had said that "unless that atmosphere is created, how could you talk about other developments?".

FB OPEN FOR TEENAGERS

Facebook has relaxed its privacy rules for teenagers now allowing them to share post publicly amid concerns that teens' digital lives could be used for commercial interests by advertisers among others. In an announcement, the California-based Internet firm called teens "among the savviest people using social media". "Teens are among the savviest people using social media, and whether it comes to civic engagement, activism or their thoughts on a new movie, they want to be heard," Facebook said in a blog post on Wednesday. With this the social media giant also looks to expand its Internet-based revenue sources through the "tech-savvy" teens as teenagers will now have more visibility in the digital world to share their thoughts and ideas publicly. Previously, teens from age 13-17 using Facebook were only able to share content with friends, friends of friends and custom groups like "family." Now, they can choose to share posts with anyone, just like users 18 and above. The network illustrated the potential of this freshly unleashed enthusiasm in a triptych of status updates. One "savvy" teen crows about a just-completed 10K for charity, another announces his drive to help the hungry and a third asks for weekend movie suggestions. Who wouldn't want to share that with the world? Any teenager wishing to share a status update or post publicly must first manually change the audience setting on his post to "public" before sharing. After doing so, a pop-up explains that the post will be visible to everyone on the site. The post will go live once the user clicks "ok" on this pop-up box, acknowledging he has seen the warning and intends to share publicly. Despite taking these privacy-protective actions, teen social media users do not express a high level of concern about businesses or advertisers, just 9 per cent say they are "very" concerned. Teenagers can also change settings to allow non-friends to follow public posts. Users who choose to follow a teenager will be able to see these public posts, with the exception of posts that have not been shared with them. Teenagers will not be followable automatically, and will need to manually update their settings to enable follows. The update simply gives teenagers the ability to share publicly, just as they can on other social sites like Twitter. Facebook doesn't allow children under 13 to set up accounts on its service but doesn't have a reliable way to verify users' ages.

BUY WINE & FLY TO FRANCE

The world's most expensive red wine costing USD 195,000 a bottle is up for sale here. Three of the limited edition Chateau Margaux 2009 Balthazars are available for wine connoisseurs and buyers will be flown first-class to France to visit the Chateau Margaux estate, media reports said. Only six Balthazars, which are 12-litre bottles, have been produced, and three have been offered for sale in the Dubai outlet, an Arabia Business report said. The 12-litre bottles were produced by the 400-year-old Chateau Margaux vineyard in the Bordeaux region of France and have gone on display at the Le Clos wine store at the Dubai International Airport. The Chateau Margaux vineyard is renowned as one of the world's greatest vineyards and the 2009 vintage is considered to be one of the best ever produced by the estate. "To mark this fantastic vintage, we are delighted to create a unique opportunity by partnering with Le Clos to offer three Balthazars to the world's most discerning wine buyers, Paul Pontellier, chief winemaker and managing director of Chateau Margaux said in a statement issued by Le Clos. Chateau Margaux's history stretches back over 400 years, during which the estate has produced some of the world's best wines time and again. "The Chateau Margaux 2009 vintage is one of the best we have ever produced, hence why we chose to bottle it in this magnificent format," the statement said.

GONE THE DAYS OF 8% GROWTH

The Indian economy has bottomed out and the recovery is on the anvil although the days of 8 per cent growth are "gone", Moody's Analytics said today.
"The economy is nearing the bottom of the current cycle and there is recovery in sight as investment should improve from the fourth quarter, as the government has been actively trying to restart stalled investment projects, both from the public and private sectors," senior economist at Moody's Analytics Glenn Levine said in a note today.
"Yet the recovery will be modest, as weak business sentiment will take time to turn around. We expect fixed investment to grow 3.5 per cent in 2014 after being flat in 2013," he added.
The arm of the global credit ratings agency Moody's also said: "The days of 8 per cent GDP growth are gone. We expect the Indian economy to hit its potential growth rate of 6.5 per cent by the second half of 2015."
India's economy expanded by over 9 per cent in the three fiscal years before the global financial meltdown of 2008 and authorities have repeatedly maintained that the country has a potential to grow between 8-9 per cent.
Moody's said that a combination of good luck and modestly better policies will drive a steady acceleration in economic activity, although the upturn will be patchy and difficult to see for six months or so.

In 2008-09, the growth slipped to 6.7 per cent but picked up to 8.6 per cent in the following year and further rose to 9.3 per cent in 2010-11. Thereafter it started declining and slowed to a 10-year low of 5 per cent in the 2012-13 fiscal.
Weak investment and consumer demand have slowed growth over the past three years, Levine said, adding that the economy is nearing the bottom of the current cycle.
The financial markets have recovered modestly since September as new RBI Governor Raghuram Rajan has lifted sentiment, he said, but added that the fundamental problems remain unsolved.
The note is comforting as IMF last week had pegged GDP growth at 3.75 per cent citing weak demand from its earlier projection of 5.7 per cent. But the World Bank pegged it at 4.7 per cent yesterday. GDP growth slowed to a three-year low of 4.4 per cent in Q1.
Rebutting IMF projection, Finance Minister P Chidambaram had said: "We do not share this pessimistic outlook".
Moody's said, however, that the past three years have led investors and businesses to reassess the entire India story.
Expectations of 8 per cent or better GDP growth have been "supplanted by a more realistic assessment" of 6-7 per cent, it added. 

AT LAST A SIGH OF RELIEF

In an 11th-hour deal, the US Congress passed a bipartisan bill which was quickly signed into law by President Barack Obama today to end a 16-day government shutdown and avert a historic debt default by the world's largest economy that could have global repercussions. Less than four hours before the midnight deadline, both chambers of the US Congress - the Senate and House of Representatives - passed the legislation by 81-18 and 285-144 votes respectively to prevent the catastrophic debt default and increase the current debt ceiling of USD 16.7 trillion. President Obama immediately signed into law the bill, the "Continuing Appropriations Act, 2014," which provides fiscal year 2014 appropriations for projects and activities of the Federal Government through Wednesday, January 15, 2014. "The effective time for the continuing resolution begins on October 1, 2013," White House Press Secretary Jay Carney said, adding that the law also extends the nation's debt limit through February 7, 2014. Hundreds of thousands of federal staff began returning to work after the bill was passed in the Congress. The deadlock over government spending in general and Obama's new health care programme in particular, had led to closing of national parks and monuments across the country. Federal agencies like NASA and the Environmental Protection Agency were also shut down during the 16-day period. Conceding defeat Republican House Speaker John Boehner said, "We fought the good fight; we just didn't win." Though the passage of the legislation ends global anxiety as the default would have had cascading impact on the world economy, the bipartisan deal reached by the Republicans and the Democrats with the support of the White House buys time only for a few months, before which they need to renegotiate the issue and find a lasting solution to their differences. Soon after Obama signed the bill, the White House Office of Management of Budget issued a notice to federal agencies asking nearly eight lakh furloughed employees to resume their duties today.
"Today, the President signed a continuing resolution that brings employees back to work and reopens many government functions. All employees who were on furlough due to the absence of appropriations may now return to work," Sylvia M Burwell, OMB Director, said in a memorandum. The bill was passed hours before the US Government was to exhaust its borrowing capacity. "This is good news for developing countries and the world's poor. The global economy dodged a potential catastrophe," said World Bank President Jim Young Kim, reflecting a sigh of relief. IMF Managing Director Christine Lagarde said looking forward, it will be essential to reduce uncertainty surrounding the conduct of fiscal policy by raising the debt limit in a more durable manner. In addition to lifting the USD 16.7 trillion debt limit, the bill approves the government funding through January 15. It also has provision for employees being paid for the period they were furloughed. "We'll begin reopening our government immediately, and we can begin to lift this cloud of uncertainty and unease from our businesses and from the American people," Obama had earlier told reporters at the White House. Obama said politicians in Washington have to "get out of the habit of governing by crisis." "Hopefully, next time, it will not be in the 11th hour," Obama told reporters, calling for both parties to work together on a budget, immigration reform and other issues. As he left the podium, Obama was asked whether he believed America would be going through all this political turmoil again in a few months. He replied, "No." The end to the fiscal impasse is being described in the US media as a defeat of the Republican party. "Congressional Republicans conceded defeat on Wednesday in their bitter budget fight with President Obama over the new health care law," The New York Times wrote. The shutdown have come at a steep cost, with Standard and Poor's putting it at USD 24 billion out of the economy. 

INDIA'S BEST BRANDS

EXECUTIVES IN SEARCH OF NEW ASSIGNMENTS

Seeking better career prospects amid economic slowdown, many senior and middle level executives are actively looking to switch jobs, according to HR experts. Reflecting the rising churn at corporates across sectors, many leading entities, including Infosys, PepsiCo and Jindal Steel and Power, have witnessed exits of high profile executives in recent months. Experts said the increasing tendency of middle and senior level executives to change jobs is mainly driven by desire to seek better paying and brighter career opportunities amid sluggish economic conditions. Increasing pressure to perform is also a contributing factor, they added. "The eagerness to move up the corporate ladder quickly and high compensation levels at senior levels is a major reason for this trend in India," executive search firm MANCER Consulting's CEO Satya D Sinha said. Providing a rough estimate, Sinha said that as much as 80 per cent of middle and senior level executives could be looking for change of jobs.
Economic slowdown has influenced the pay hikes and promotions internally, in turn resulting in increased workforce movement between companies, experts said. India needs an estimated 2,735 additional middle and senior managers each year, estimates by MANCER showed.
In the last six to eight months, about 25-30 per cent of working executives have switched jobs, HR consultancy Unison International's Managing Director Udit Mittal said. 

"It may be higher remuneration and designation, but the major force driving them to switch is that they want a much secure job and primarily want to join a company which is in a safer place and less affected by the slowdown," Mittal said.
Industry-wise, job switch has been majorly noted in the FMCG, automotive, IT and pharmaceutical sectors, experts said.
A sectoral analysis by executive search firm Spectrum Talent Management showed that major expansion in the pharmaceutical industry has caused a lot of movement at top management levels.
"A lot of private equity investment is coming into India because of the depreciation of rupee which has also resulted in a key personnel quitting to join start-ups or launch their own ventures," Vidur Gupta, Managing Partner at Spectrum Talent Management, said.
Among the high profile exits seen this year among Indian corporates include that of Ashok Vemuri leaving software exporter Infosys and Manu Anand quitting beverages major PepsiCo India.

YET...ANOTHER DOWNDRADE

World Bank cuts India's 2013-14 GDP growth projection to 4.7% 

Close on the heels of the IMF, the World Bank today slashed India's economic growth forecast for the current financial year to 4.7 per cent from an earlier projection of 6.1 per cent. "The report (India Development Update) expects real GDP to expand by 4.7 per cent (at factor cost) this fiscal year before accelerating to 6.2 per cent in FY2015," said Martin Rama, the World Bank's chief economist for South Asia. In April, the World Bank had projected India's GDP would grow at 6.1 per cent in the current financial year and at 6.7 per cent the following year. Last week, the International Monetary Fund (IMF), in its World Economic Outlook, projected an average growth rate of about 3.75 per cent in market prices for India in 2013-14, which is expected to pick up to 5.1 per cent next year. India's GDP growth slowed to 5 per cent in the year ended March from an average of 8 per cent over the past decade. The World Bank said the pace of economic activity in 2013-14 will be hampered by a weak outturn during the first quarter. In addition, two consecutive months (July-August) of negative business sentiment and higher interest rates may curb the potential for recovery in the second quarter of 2013-14 even after manufacturing output rebounded in July. "Although output growth in the first quarter of the current fiscal year fell to 4.4 per cent, growth is expected to rebound strongly in the second half of 2013-2014 with core inflation trending down, a bumper crop expected in agriculture, and exports likely to benefit substantially from the rupee's depreciation," Rama said. A 5 per cent increase in the area sown is expected to raise agricultural growth to 3.4 per cent from 1.9 per cent a year ago, he added. Rama said growth is expected to improve further in the medium term as strengthening exports support a recovery in industrial activity and new investment projects come on stream. "India's growth potential remains high but its macroeconomic vulnerabilities -- high headline inflation, an elevated current account deficit, and rising pressure on fiscal balances from the depreciation of the rupee -- could impact the speed of economic recovery," said Denis Medvedev, senior country economist for the World Bank, India. While market sentiment has improved in the past few weeks, challenges remain, highlighting the importance of prudent macroeconomic policies and continued reforms to set strong foundations for accelerated growth, he said. The current situation offers an opportunity to strengthen the business environment and enhance fiscal space even as the reform momentum has accelerated in the past few months, Rama added. Activity is expected to pick up strongly in the last six months of the fiscal year, rising above 6 per cent in the fourth quarter of the current fiscal, the World Bank said. This will come as financial markets stabilise, exporters take advantage of improvements in external competitiveness following the depreciation in the rupee, the manufacturing sector recovery continues and delayed investment projects begin to come on stream. Pressure on inflation is likely to moderate, the World Bank said. 

INIDAN COMPANIES LAG BEHIND INNOVATION

Most companies in India are not engaged in developing "sustainable and inclusive innovations" as they do not identify with sustainable development or green growth, says a study by industry body CII. Indian companies are mainly focused on existing products which leads to complacency and lack of innovation. Moreover, their governance culture, too, does not encourage innovation, leading to the scenario.

"Too much focus on existing products is the key internal barrier to innovation. Besides, senior executives tend to be judgmental and do not encourage new ideas...When companies find their markets threatened by competition they scramble to innovate. The other key barrier to innovation is too much focus on short-term financial performance, the survey said. Sustainable development refers to a mode of human development in which resource use aims to meet human needs while ensuring the sustainability of natural systems and the environment, so that these needs can be met not only in the present, but also for generations to come.
According to the study, innovation in India continues to be plagued by quality shortfall in human capital, and less than required investments and infrastructure in research and development activities. However, tightening environmental legislations in India, demand for demonstration of better environmental footprint by international buyers, business risks arising due to environmental challenges and creation of new markets for green products are the primary reasons for companies to go green, the study said. 

LOAN TERROR AMONG INDIANS

People in India are increasingly shying away from taking bank loans on account of economic slowdown and scepticism arising out of job uncertainty, a survey by industry body Assocham said. In the wake of slowdown, while industrial growth and services are getting impacted, job uncertainty among the young spenders is working as a big dampener... the survey said. Individual borrowers are adopting an extremely conservative approach when it comes to taking loans from banks against fixed deposits or shares and bonds.
According to the banking data, loans against fixed deposits have declined by 1.6 per cent in the current fiscal as against a growth of 20 per cent between August 2012 and August 2013. Besides, credit card users are also avoiding taking loans as the interest rates charged on outstanding payments are prohibitively high. Those who have already taken loans are now more cautious and resorting to timely payments of their dues to avoid penalties.

"There is a feeling that credit card outstanding payments result in debt traps for the card-holders..."

BANKS AVERSE TO GIVE LOANS AGAINST SHARES

A similar trend has been witnessed in individuals or entities seeking bank loans in return for mortgaging shares and bonds. The amount deployed so far in the current fiscal under this head has shown a decline of 6.6 per cent, as against a growth of 8.8 per cent in the previous year. The reason cited for the cautious approach being adopted by borrowers as well as banks is the prevailing volatility in the share market. Banks perceive as risk great volatility in share prices, particularly if the share price of the mortgaged security has seen a sharp decline. The issue of Mark-to-Market risks act as hindrance, the survey said. Besides, high interest rates offered by banks is also one of the main reasons for the trend, since deposit rates have been recently revised upwards in the wake of tight liquidity position.
Moreover, banks are also unwilling to lend to large corporates which are facing the liquidity problems arising from drying up of the corporate deposit (CDs) markets. Banks, bitten by a large increase in their NPAs (non-performing assets), are not too willing to lend to big corporates for meeting their working capital needs and want the companies to use the CD market, which, unfortunately, has gone dry.

BSE INFRO FOR MF DISTRIBUTORS

 Leading stock exchange BSE today allowed MF distributors to use its infrastructure for purchase and redemption of mutual fund units directly from Assets Management Companies (AMCs) on behalf of their clients following a Sebi directive. In a circular, BSE said an entity seeking to register itself as MF Distributor on its mutual fund platform in a move to use the exchange's infrastructure is required to have a networth of at least Rs 1 lakh on the basis of audited balance sheet of latest financial year. For an individual, the exchange has set a minimum tangible assets worth Rs 1 lakh. Also, the exchange would charge a one-time fee of Rs 15,000 for membership. MF distributors would not handle payout and pay in of funds as well as units on behalf of investor. "The pay-in will be directly received by recognised Clearing Corporation and payout will be directly made to investor's account. "In the same manner, units shall be credited and debited directly from the demat account of the investors by the Clearing Corporation," BSE said. Earlier this month, Sebi had cleared the proposal to allow MF distributors to use the infrastructure of recognised exchanges for purchase and redemption of mutual fund units directly from AMCs on behalf of their clients.
This would be in addition to the existing channels of MF distribution.
The move is aimed at leveraging the stock exchange platform, which would eventually help MF distributors to improve their reach.
This facility would be available only for a MF distributor registered with Amfi (Association of Mutual Funds in India) and those who have been permitted by the stock exchange concerned would be eligible for this purpose. The stock exchange would grant permission on a request made by a Amfi registered MF distributor on the basis of criteria including fee and code of conduct, among others, as laid down by it. 

HCL 'ME Champ' TABLET FOR CHILDREN @ Rs 7,999

IT services and products major HCL Infosystems has launched new tablet 'ME Champ', exclusively targeted at kids between 3 to 12 years of age. It is priced at Rs 7,999. ME Champ is exclusively designed tablet that addresses children’s cognitive development needs and empowers parents to supervise tablet use with parental control.

The tablet provides exclusive content that comprises of kids TV, comics, games, knowledge and music. It comes with pre-loaded content for kids, including exercises in art, geography, history, language and mathematics. The device also offers free access to more than 500 Apps under categories – games, books and education, and to all videos under the kids TV segment.

The tablet offers 3G connectivity through USB datacard. Based on Android OS 4.1 (Jelly Bean), the device is equipped with a 2-mega pixel back camera and a 0.3-mega pixel front camera which enables video chatting. It comes with a 1 GB RAM memory and 4 GB internal memory, along with a memory card slot that can add another 32 GB. HCL ME Tablet is also running 'KIDS ARE CHAMP' sponsorship programme, which would give 10 lucky champs a chance to win scholarships totaling Rs 5 lakh.

This product is aimed at parents who have their child in the age group of 3 to 12 years, and strengthens our tablet portfolio. The ME Champ tablet promises to bring great excitement for kids by re-defining user experience with its innovative design, content and technology.

- Gautam Advani, Global Head, Mobility Business Unit, HCL Infosystems.

3 US ECONOMISTS WON NOBEL IN ECONOMICS

Three American professors won the Nobel prize for economics today for shedding light on how stock, bond and house prices move over time work that's changed how people around the world invest.

FAMA

Two of the winners Eugene Fama, 74, and Lars Peter Hansen, 60 teach at the University of Chicago. The third, Robert Shiller, 67, is a professor at Yale University and is well-known as a creator of the well-known Case-Shiller index of home prices. The three economists were honored for separate research that collectively expanded the understanding of asset prices. Beginning in the 1960s, Fama showed that prices change so quickly and efficiently to reflect new information that investors can't outperform markets in the short term.

HANSEN

This was a breakthrough that helped popularize index funds, which invest in broad market categories instead of trying to pick individual winners. Two decades later, Shiller reached a separate conclusion: That over the long run, markets can often be irrational, subject to booms and busts and the whims of human behavior. The Royal Swedish Academy of Sciences noted that the two men's findings "might seem both surprising and contradictory." Hansen developed a statistical method to test theories of asset pricing. The three economists shared the USD 1.2 million prize, the last of this year's Nobel awards to be announced. "Their methods have shaped subsequent research in the field and their findings have been highly influential both academically and practically," the academy said.

SHILLER

Today, Hansen said he received a phone call from Sweden while on his way to the gym. He said he wasn't sure how he'll celebrate but said he was "still working on taking a deep breath." Shiller, famous for having warned against the bubbles in technology stocks and housing that burst over the past two decades, said he responded with disbelief when he received a phone call about the Nobel. "People told me they thought I might win," Shiller told The Associated Press. "I discounted it. Probably hundreds have been told that." Of the three winners, Fama was the first to expand the knowledge of how asset prices move. His work helped revolutionize investing by illustrating how hard it was to predict the movement of individual stock prices in the short run. It was a finding that spurred wider acceptance of index funds as an investment tool. Shiller showed that in the long run, stock and bond markets tend to behave more irrationally than economic fundamentals would suggest. That encouraged the creation of institutional investors, such as hedge funds, that take bets on market trends.

REIT'S ALLOWED IN INDIAN REALTY

Reviving a five-year old proposal, Sebi today issued draft norms for listing Real Estate Investment Trusts (REITs), which will help in channelising more funds into the real estate sector.
REITs, a popular investment vehicle in many parts of the world, is similar to mutual funds except that investments would be on real estate assets that generate rental income. Looking to attract more real estate investors into the capital market, Sebi today proposed listing of REITs saying the evolution of such investment vehicles is "crucial" for the rapidly growing real estate industry. REITs would be allowed to list on stock exchanges through Initial Public Offer (IPO) and can raise funds further through Follow-On Offers, according to the draft norms issued by Securities and Exchange Board of India (Sebi).
"REIT shall be set up as a Trust under the provisions of the Indian Trusts Act, 1882," it said while seeking comments from stakeholders by end of this month.
However, REITs would not be allowed to launch any schemes. As per draft rules, only such entities that have at least 90 per cent investment in completed revenue generating projects.
"To ensure regular income to the investors, it has been mandated to distribute at least 90 per cent of the net distributable income after tax of the REIT to the investors," Sebi said.
Leading consultancy PwC India's Associate Director Bhairav Dalal said REITs can be compared to a mutual fund products "with difference being that the underline investment will be in real estate assets which generate rental income".
In the long term, REITs would help in boosting investments into the realty sector and also bring institutional credibility, according to experts. Property consultant Jones Lang LaSalle (JLL) India Chairman and Country Head Anuj Puri said Sebi has released its consultative guidelines for operation of REITs in India after five years of releasing its first draft.
"The positive thing is that the statement clearly spells the need for REITs in India at the earliest considering its huge popularity across the world," Puri noted.
The Trust needs to initially apply for registration with Sebi as a REIT in the specified format. After being satisfied on the eligibility conditions, the regulator would grant registration to it.
According to Sebi, REITs can issue units of their investment schemes through a public offer and list them thereafter on a stock exchange in a way similar to the issuance and listing of shares during an IPO. For coming out with an IPO, Sebi said that the size of the assets under the REIT need to be at least Rs 1,000 crore, in a bid to ensure that initially only large assets and established players enter the market. 

MAJOR PROJECTS STALLED

Industrial projects worth over Rs 15 lakh crore are stalled for want of various clearances and other issues, according to data compiled by the Prime Minister's Project Monitoring Group (PMG). Of this, power is the most troubled sector where 136 projects worth over Rs 7.14 lakh crore are stalled. This is followed by steel, where 25 projects entailing investments of over Rs 3.36 lakh crore are stuck. The other leading sectors where investments are stuck are oil and gas sector (32 projects entailing Rs 2.08 lakh crore investments), special economic zone (Rs 52,271 crore), Roads (Rs 40,155 crore) and Mines (Rs 37,399 crore). In total, 319 projects worth over Rs 15.19 lakh crore stalled investments, have been identified so far by the Prime Minister's Project Monitoring Group (PMG). The list, however, has been increasing almost on a daily basis. The PMG, since its constitution in June, has so far cleared 78 projects entailing investments of over Rs 2.93 lakh crore, data available on its website showed. The PMG was set up as a facilitating body for resolving specific issues of the projects and fast tracking them. The issues and clearances of the stalled projects depend on their current stage and include environment and forest clearances, land acquisition, lack of co-ordination between various government departments and clearances stuck at the state government level. Indian industry has been raising its concern against on the slow pace of project clearances, saying that this led to a severe decline in country's manufacturing activity, thereby lowering exports and affecting current account deficit (CAD). According to the official figures, India's manufacturing sector had grown by only 1 per cent in 2012-13. During the first quarter of the current fiscal, it had reported a growth of 2 per cent. The list of stalled projects include 4000 MW Tilaiya and 3,960 MW Sasan ultra mega power projects (Rs 65,000 crore investments together), Cairn India's Rs 28,000 crore Barmer oil block and Indian Oil's Rs 29,777 crore upcoming refinery in Paradip, Odisha. Five crucial railway lines (worth over Rs 14,705 crore), which were proposed to link North-Eastern states with rest of the country, also feature in the list. Of this, four lines have the status of "National Project" and are supposed to link Imphal, Shillong, Agartala and Sikkim with rest of India. Extension of Kolkata metro (two new lines entailing investment of Rs 5,013 crore), six laning of NH-8 between Gurgaon and Jaipur and three new LNG Terminals, proposed to be set up at Kakinada, Mundra and Gangavaram, for about Rs 15,200 crore are also part of the 319-stalled project list. Two mega steel projects, entailing investments of over Rs 1 lakh crore together, of ArcelorMittal and Posco do not feature in the list. The two projects, announced way back in 2005-06, are still at land acquisition stage. 

RECOVERY NOT SATISFACTORY

The industrial sector is cautious in moving ahead as economic slowdown is not showing any signs of bottoming out, amid a sharp rise in sectors reporting negative growth for the July-September quarter, says a survey by industry body CII and ASCON. "With economic slowdown showing no signs of bottoming out in the near future, industry is cautious in moving ahead. This calls for a concerted effort from policy makers to stay the course on reforms," CII Director General Chandrajit Banerjee said. The survey shows that out of 91 sectors covered, sectors registering 'low' and 'negative' growth for July-September 2013 quarter remain significantly high at 84.61 per cent as against 76.1 per cent for the same period last year. Moreover, the proportion of sectors reporting 'negative' growth has risen drastically to 38.46 per cent in July-September 2013 from 15.5 per cent in the corresponding period last fiscal, the survey said. "The sluggish performance of both producer as well as consumer goods indicate subdued demand conditions in the economy which, going forward, does not sound optimistic for revival of growth in the coming quarters," the survey said.
The "high" growth sectors have come down to 10.98 per cent this year from 29.1 per cent in the same quarter previous year. Besides, there is a clear shift in number of sectors from high growth (30 sectors last year as compared to 10 this year) and low growth sector to negative growth (16 sectors in negative from last year has increased to 35 sectors), proving that slowdown continues despite monetary tightening and fiscal consolidation measures by the government and RBI. The disaggregated analysis of the survey reveals that most of the high and excellent growth has been registered by select segments of white goods industry such as refrigerators, air conditioners, small appliances and LCDs/LEDs driven by high rural demand and robust sales in tier 4 & 5 cities. However, it found that the vehicle industry witnessed low to negative growth in most of the segments like motor cycles, three wheelers, utility vehicles, M&HCVs, tyres, cycle tyres.

TATA-UKTI DOING BUSINESS IN INDIA PROGRAMME

The Tatas and the UK Trade & Investment (UKTI), a British trade and investment body, have launched the first edition of 'Doing Business in India' training and mentoring programme. The programme is brought in by the Tata Group's Pune-based Tata Management Training Centre (TMTC) and the British Council, Mumbai, and seeks to promote joint bilateral trade, especially among the small and medium technology companies from both the nations. The first leg of the programme has been underway in the city from October 1-5 and then it will move to Pune.
The programme will include visits to relevant Tata companies in Mumbai and Pune and interaction with senior Tata officials and CEOs. Tatas are the largest private sector employers in the British manufacturing sector, employing over 50,000 at its Corus and JLR plants. Cost-side details of the programme were not revealed. The programme aims to increase British high technology SMEs' understanding of the business culture here. It also aims to encourage the creation of partnerships in the domestic market, and with domestic partners for global opportunities. As part of the programme, UKTI introduced 20 British SMEs- all from the telecom, energy, power, software and healthcare side and some of which are already present in the country-at the event. In the EU and England an SME is one that employs under 250 and has a revenue of less than 40 million euro per annum, Technology partnerships seek to increase international performance of high-growth technology SMEs of British through direct trade, collaboration and partnerships.

ADOBE ACCOUNTS COMPROMISED

US-based Adobe Systems, which sells Photoshop and Acrobat software, today said it has faced two attacks from cyber criminals who have stolen credit card data of 2.9 million customers. The California-headquartered firm said its security team discovered sophisticated attacks involving illegal access of customer information and source code of many Adobe products. Its products are used by film and video makers, web and graphic designers, creative professionals, professional publishers, enterprises and individual consumers. The products are widely used on the Internet, including reading and viewing of documents.
Adobe, however, did not reveal the geographies where the accounts have been compromised. It has office locations in about 34 countries across North America, Asia, Australia and New Zealand, Europe, Middle East, Africa and South America.
When contacted about the number of affected customers in geographies, including India, a Adobe spokesperson told PTI: "We are not commenting on country-specific information at this time." It has a significant presence in India with R&D offices in Bangalore and Noida and sales offices in Bangalore, Noida and Mumbai. The company employs over 2,000 people in India of its global headcount of more than 11,000 employees. Without revealing details of affected countries, Adobe's FAQ section on geographies involved in the cyber attack said: "Adobe customers worldwide provide us with account information, so we are taking the precaution of resetting relevant customer passwords and notifying any customers who have provided us with their credit or debit card information." On the attack, Adobe said investigations are continuing, which also includes the nature and scope of the intrusion.
Adobe website said: "Our investigation currently indicates that the attackers accessed Adobe customer IDs and encrypted passwords on our systems.
"We also believe attackers removed from our systems certain information relating to 2.9 million Adobe customers, including customer names, encrypted credit or debit card numbers, expiration dates, and other information relating to customer orders."
The company further said: "At this time, we do not believe the attackers removed decrypted credit or debit card numbers from our systems.
"We are also investigating illegal access to source code of numerous Adobe products. Based on our findings to date, we are not aware of any specific increased risk to customers as a result of this incident." Adobe will compensate its customers in the US with option of enrolling in a one-year complimentary credit monitoring membership, while, no such offer has been announced for any other geography. About half of Adobe's annual revenues comes from outside the US. It clocked revenues of over USD 4 billion in 2012.
Adobe said it is working internally and with external partners. It has also alerted banks processing its payments to help protect customer accounts and is working with federal law enforcement on the related investigation. 

DIESEL FUMES BAFFLE BEES

Diesel exhaust fumes alter the flowery smells that guide bees when they forage, potentially sending them off course and putting the food-growing industry at risk, a study said today. Honeybees rely heavily on their sense of smell to locate flowers from which they harvest life-giving nectar -- transferring pollen grains from one bloom to another in the process. The new research shows that diesel exhaust fumes from cars, tractors or power generators can chemically alter the smell of flowers and render them undetectable to bees. This, in turn, threatens the insects' crucial role as a key pollinators of human food crops. "Somewhere in the region of 70 per cent of world crops require pollination services, and... about 35 per cent of our current food production is reliant on pollination," study co-author Tracey Newman of the University of Southampton told a press conference ahead of the report's release in the journal Nature Scientific Reports. Pollination services have an estimated economic value of 153 billion euros (USD 208 billion) a year. For the study, Newman and a team created a synthetic odour blend mimicking the complex chemical mix that make up the smell of oilseed rape flowers. The synthetic blend of eight chemicals was released into a sealed glass vessel with clean air, and another that contained diesel exhaust at levels similar to rush-hour, roadside fumes. The fumes contained high concentrations of NOx gases: nitric oxide and nitrogen dioxide, as well as carbon monoxide. Within one minute, the chemicals alpha-farnesene and alpha-terpinene, which comprised 72.5 per cent and 0.8 per cent of the blend respectively, were "rendered undetectable" in the diesel-polluted air. The other chemicals were also considerably reduced in volume while there was no change for the blend in the clean-air vial. Next, the team tested whether bees would notice the difference. They trained the insects by exposing them to the eight-chemical synthetic odour blend and feeding them a sugar solution at the same time to build an association of reward -- as the smell of flowers hold the promise of nectar. Over time, the trained bees would start sticking out their tongue-like proboscis in anticipation whenever they recognised the odour. 

GLOBAL FOOD PRICES DOWN 5th MONTH IN ROW

Global food prices fell for a fifth month running in September, the UN said today, as bumper cereals production is helping rebuild world food stocks. The UN's Food and Agriculture Organisation (FAO) food price index -- a measure of the monthly change in international prices of a basket of food commodities -- averaged 199.1 points in September. Showing a drop of 2.3 points or 1.0 per cent from August, the composite food price index is down by 5.4 per cent from the beginning of the year. The decline was due to the drop in the cereal price sub-index, which dropped 12.9 points, or by 6 per cent, from August to stand at 197.7 points in September. Cereals prices are down 25 per cent from one year ago. The fall reflects "a generally favourable supply outlook, in particular for maize and rice," said the FAO. The organisation trimmed its world cereal production forecast by 3 million tonnes to 2,489 million tonnes, which is still represents an 8.0-per cent increase from the level last year. Global cereals consumption is forecast at 2,415.5 million tonnes, with stocks expected to hit their highest level since 2001-2002 at 559 million tonnes. The other FAO food sub-indices: dairy, oils, meat and sugar, rose slightly. Sugar prices showed the biggest monthly increase, of 1.8 per cent, due to unfavourable weather conditions hampering the harvest in Brazil, the world's top producer and exporter. 

CHEAPER LOANS FOR THE FESTIVE SEASON

Ahead of the festival season, public sector banks will provide cheaper loans for auto and consumer goods purchases with a view to stimulating demand. Banks would lower lending rates as the government today decided to provide additional funds to the PSU banks to enable them financing of auto and consumer goods purchases. The decision to increase the quantum of capital infusion to the banks was taken at a meeting between Finance Minister P Chidambaram, RBI Governor Raghuram Rajan and Economic Affairs Secretary Arvind Mayaram here. "This amount (Rs 14,000 crore provided for capital infusion in Budget) will be enhanced sufficiently. The additional amount of capital will be provided to banks to enable them to lend to borrowers in selected sector such as two-wheeler, consumer durables, etc at lower rates in order to stimulate demand," a finance ministry statement said. Chidambaram said he would be meeting heads of PSU banks soon to impress upon them on the need to lower interest rates for select sectors. "Lower interest rates will depend on the lending capacity of banks. Banks to decide on sectors where lower rates will boost demand. I will meet bankers soon," he said. According to statement, the additional capital infusion into the PSU banks would help in combating slowdown and boost output. The quantum of additional capital infusion, however, was not disclosed by the government. Consumer durables, a reflection of demand for manufactured products, include TV, fridge, washing machine.

TBZ NEW GOLD SCHEME

Leading jewellery retailer Tribhovandas Bhimji Zaveri (TBZ) has launched a new gold plan for consumers who will see their purchase getting multiplied in terms of grammage or units. If a customer purchases 100 gm of gold (24kt fine/ standard) from TBZ and places the same under their "Gold Plan", he/she will get 105 grams of gold after 12 months, the company said in a release here today. Consumer can place minimum of 10 grams of gold coins and bars and thereafter in multiples of 5 grams up to an overall maximum of 500 grams, it said. "We have unveiled TBZ Gold Plan in line with initiative to launch customer-friendly schemes. Generally people buy gold and keep it in the locker. Over the period, value of gold may appreciate but it does not grow in units or grammage. Through our Gold Plan, people can expect their gold growing in grammage or units," TBZ Group Head (Marketing & Advertising) Kiran Dixit said. This is ideal for those who want to invest in gold now in a simple and convenient manner and make it multiply till they need it in the future while getting several advantages such as no storage fee, free insurance, no account opening charges and no brokerage, Dixit said. TBZ has 26 stores in 20 cities across seven states - Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Kerala, Andhra Pradesh and West Bengal.

INDIA TO BE MOST POPULOUS NATION BY 2050

India will overtake China as the world's most populous country by 2050, according to a new French study which predicts the global population to surge to 9.7 billion people by the middle of the century. The report by the French Institute of Demographic Studies (INED), predicts India will take the top spot with a staggering population of 1.6 billion to leave behind current world leader in population, China, at the second place with 1.3 billion people. The overall world population is projected to rise to 9.7 billion in 2050 from the current level of 7.1 billion, the report said. Currently, the world's most populous countries are China with 1.3 billion people; followed by India (1.2 billion); the US (316.2 million); Indonesia (248.5 million) and Brazil (195.5 million). The study backs the population predictions by the UN and the World Bank. In June, a UN study predicted the global population to swell to 9.6 billion in 2050. "The world population has risen seven-fold over the last two hundred years and is expected to reach 10 or 11 billion by the end of the twenty-first century," according to the report by Gilles Pison, senior researcher at the French institute. According to the report, the projected population of other countries in the world by 2050 (in millions) will be: Nigeria (444), US (400), Indonesia (366), Pakistan (363), Brazil (227), Bangladesh (202), Congo (182), Ethiopia (178), Philippines (152), Mexico (150), Russia (132), Tanzania (129), Egypt (126), Uganda (114), Vietnam (109), Iran (99), Japan (97), Kenya (97), Turkey (93), Iraq (83), UK (79), Germany (76), France (72), Sudan(69), Niger(66), South Africa (64), Mozambique (63) and Colombia (63). 

DEEWALI BLUES

FESTIVE BUDGETS TO BE DOWN BY 40%

Rising inflation, fewer employment avenues and dwindling earnings seem to have taken a toll on the spending capacity of middle and lower income families in India, with a sizeable among them slashing their festive budget by a staggering 40 per cent this Diwali, says a survey. "Over 72 per cent respondents from middle and lower middle income families would be forced to slash their Diwali expenditure by 40 per cent and on an average spend nearly 25 per cent of their monthly salary on Diwali," according to a survey conducted by industry body Assocham. Revision in interest rates by banks have also sent most Indians' EMIs (equated monthly instalments) soaring, thereby eroding their monetary power, it added. "Even gold, the much sought after item during the festive season, is in the range of Rs 30,000 per 10 gm compared to Rs 22,000 last Diwali," Assocham Secretary General D S Rawat said. However, the high income group remains unaffected from the rupee fall and double digit food inflation, the survey said. Out of the 72 per cent respondents, 57 per cent said they will buy only on sale or discounts, whereas 12 per cent will buy fewer gifts and the rest 2 per cent will buy a group gift. However, only a small portion of them feel that festivals are the time to splurge, even as discounts remain the biggest attraction for most buyers. Besides, 76 per cent of the respondents said their monthly grocery bills had jumped to about Rs 7,000 as against Rs 4,000 in the last 12 months. Prices of vegetables and bakery products have also risen in the last few months. Obviously, this will affect the Diwali celebrations, the survey said. The survey, which was conducted over the last two months in major cities like Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh and Dehradun, saw Delhi-NCR topping the chart in curtailment of festive budget. It was followed by Mumbai, Ahmedabad, Kolkata and Chennai, respectively.

ADB LOWER GROWTH PROJECTION TO 4.7%

Asian Development Bank (ADB) has lowered India's growth projection for 2013-14 to 4.7 per cent from 6 per cent earlier saying the recent rupee depreciation and capital outflows could adversely impact the country's economy. "With gross domestic product in the first quarter of (2013-14) expanding at its slowest pace since the global financial crisis, ADB revised down its growth forecast to 4.7 per cent from 6 per cent projected in April," it said in its flagship Asian Development Outlook 2013. The report, presenting a sobering picture of India's outlook said the country's economy has been under pressure with recent depreciation in rupee and capital outflows adding to structural constraints which are weighing heavily on its prospects for returning to a high growth path. In 2014-15 there could be some moderate improvement, with growth estimated at 5.7 per cent, but below the previous forecast of 6.5 per cent, ADB said. "The recent financial market turbulence is a timely reminder of the need for structural and fiscal reform not just to ensure long-term growth but also to keep financial markets stable in the short-run," said ADB Chief Economist Changyong Rhee. Earlier last month, the Prime Minister’s Economic Advisory Council (PMEAC) lowered the growth forecast for the current fiscal to 5.3 per cent from 6.4 per cent. While, RBI has lowered the growth projection for 2013-14 to 5.5 per cent from its earlier estimate of 5.7 per cent. Nevertheless, ADB said the Indian government has taken a number of steps to address the financial market concerns to revive growth prospects besides expanding the bilateral swap arrangement with Japan to USD 50 billion from USD 15 billion. The government also indicated its intention to prop up the rupee’s stability by deepening financial markets and easing external financing constraints, it said. Apart from these measures, proper macroeconomic policies should be also continued, the report said.

"Containing inflation pressure, consolidating fiscal positions by reducing general subsidies, and managing well recently passed reform bills to keep fiscal pressures in check should receive high priority," the ADB report said. The authorities should allow exchange rate flexibility to ensure sufficient stock of foreign reserves while balancing its impact on inflation and corporate foreign liabilities, ADB said. In order to convince the market that India still remains on the strong and sustainable growth path, it said the country must strengthen its structural reforms to expedite large infrastructure projects that are delayed and to encourage foreign investment. "One bright spot is the recent effort at expediting regulatory clearance for several large projects in key infrastructure sectors such as power, roads, and railways by the Cabinet Committee on Investment," it added. With general elections scheduled in the first half of 2014, it said a new government may help give fresh impetus to resolve "structural problems". It added that a softer currency and expected pick-up in economic activity in major markets should see Indian exports grow at a faster clip than in 2012-13. "Policy measures since July 2013 to entice foreign investors back to India to help finance the current account deficit are expected to gain traction in the near future." On rising prices, the ADB report said there has been spike in food and fuel costs on account of currency depreciation, but tighter monetary policy will have some mitigating effect, along with depressed economic activity. It said inflation for this fiscal is now seen at 6.5 per cent, below the 7.2 per cent forecast in April. 

US DECLARES SHUTDOWN

The US government today shutdown for the first time in nearly 18 years due to a deadlock between the Republicans and Democrats over Obamacare, a crisis that has forced 800,000 federal workers off the job and could cost the world's largest economy about USD 1 billion a week. The Republicans and Democrats failed to strike a deal on spending and budget due to differences over 'Obamacare', the signature healthcare programme of President Barack Obama. About 800,000 federal workers in the US were told to stay at home while national parks, museums, government buildings and services shutdown as a result of the deadlock in the Congress. With neither side blinking, despite last minute hectic efforts from both sides, the White House immediately ordered the federal government agencies to begin shutting down, furloughing thousands of workers and curtailing some services for the first time since 1995-96. "Congress has not fulfilled its responsibility. It has failed to pass a budget and, as a result, much of our government must now shut down until Congress funds it again," Obama said in a video message to the armed services shortly after the shutdown came into effect. "The threats to our national security have not changed, and we need you to be ready for any contingency. Ongoing military operations—like our efforts in Afghanistan—will continue. If you're serving in harm's way, we're going to make sure you have what you need to succeed in your missions," he said. "Congress has passed, and I am signing into law, legislation to make sure you get your paychecks on time. And we'll continue working to address any impact this shutdown has on you and your families," Obama said. Later on, the Democratic party-led Senate voted to reject the latest House Republican effort to negotiate on the budget. The party-line vote was 54-46. The Senate turned down the House request to name negotiators to a conference to resolve the deadlock. Majority Leader Harry Reid said he would not negotiate as long as Republicans were holding up the spending bill to keep the government operating. Agencies should now execute plans for an orderly shutdown due to the absence of appropriations, the Office of Management and Budget Director Sylvia Mathews Burwell said in her guidance to the agencies directing them to execute their plans for an orderly shutdown of the Federal government.
"We urge Congress to act quickly to pass a Continuing Resolution to provide a short-term bridge that ensures sufficient time to pass a budget for the remainder of the fiscal year, and to restore the operation of critical public services and programs that will be impacted by a lapse in appropriations," the guidance said. Shutdown means that national parks will close, most routine food inspections will be suspended, paperwork will slow at government offices and many federal employees will be furloughed. Only emergency and essential items would be able to operate, as a result of which lakhs of government employees would not receive their salary for the shutdown duration. Earlier, Obama said, "A shutdown will have a very real economic impact on real people, right away. Past shutdowns have disrupted the economy significantly. This one would, too. It would throw a wrench into the gears of our economy at a time when those gears have gained some traction." In the hours leading up to the October 1 deadline, House Republican leaders won approval, in a vote of 228 to 201, of a new plan to tie further government spending to a one-year delay in a requirement that individuals buy health insurance. The Congress has a major duty in the Constitution -- pass spending bills that fund the government. If it does not, most functions of government -- from funding agencies to paying out small business loans -- grinds to a halt. Key services, like Social Security, air traffic control and military pay continue to be funded.