China will politely resist Obama's G-20 proposal

China will find it hard to object to US President Barack Obama's drive for a more balanced global economy at a G-20 summit this week, but will resist any sweeping reforms that risk checking its headlong growth.

US calls for exporting nations to consume more will shift the spotlight back toward China's managed currency regime and whopping trade surplus after a year in which these were put to one side, displaced by the imperative of recovering from the global financial crisis.

That the United States is ready to put pressure on Beijing became clear this month when, for the first time since time since China joined the World Trade Organisation in 2001,it invoked a "special safeguard" clause to slap duties on Chinese-made tires

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Nuke deal opens new biz doors for Indian companies

With the successful passage of the Indo-US civil nuclear cooperation agreement, and the exemption granted to the 45 member states of the nuclear suppliers’ group to engage India, have opened up tremendous new business opportunities for Indian companies.

Now, the Indian companies will get access to high technology from the US and other major technologically advanced countries.

At the same time, to minimise risks of unauthorised diversion, these same countries will institute stricter licensing requirements for acquisition, manufacture and trade in a range of sectors including nuclear, chemical, pharmaceutical, biotechnology, electronics, aerospace, lasers, nano-technology and specialty materials, etc. This will call for greater “responsible” action by Indian companies as well.

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United States March unemployment number highest in 25 years

The US jobless rate rose in March to the highest level in 25 years and payrolls plunged, exposing the economy to the risk of renewed declines in spending that would scuttle a recovery, economists said before a report on Friday.

Unemployment jumped to 8.5% from 8.1% in February, according to the median of 79 estimates in a Bloomberg News survey. The figures may also show employers cut 660,000 workers from staff, bringing total losses since the recession began to 5 million, the biggest slump in the postwar era. Evaporating jobs and declining pay mean President Barack Obama’s pledge to create or save 3.5 million jobs through tax cuts and government spending may fall short of what’s needed to revive the world’s largest economy. Federal Reserve chairman Ben S Bernanke has conceded joblessness could top10%under a worst-case scenario.

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Obamanomics at work: car buyers get tax breaks, CXO pay capped

The US Senate voted to give tax breaks to new car buyers, even as President Barack Obama moved to impose a cap of $500,000on the compensation of top executives at companies that receive significant federal assistance.

Anamendment added on Tuesday to the Senate’s draft of the plan aims to help the auto industry by temporarily allowing some buyers of new cars and light trucks to deduct sales taxes and interest payment son car loans from their tax bills.The amendment’s sponsors estimated it would cost $11 billion, which would push the cost of the stimulus to about $900 billion.

“Everyone wants to save auto manufacturers, but no matter how much government aid we give to the Big Three automakers, they can’t survive if consumers don’t start buying cars,” said senator Barbara Mikulski, a Maryland Democ rat who sponsored the amendment. “We can help by getting the consumer into the showroom.”

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Government has proof of ISI hand: Pakistan vows to act

Even as sources on Thursday said the government has proof that Pakistan’s ISI was involved in planning last week’s terror attacks in Mumbai, Pakistani President Asif Ali Zardari said Islamabad would “take strong action against any Pakistani elements found involved in the attack”.

“Pakistan is determined to ensure that its territory is not used for any act of terrorism,” Zardari said in a statement following his meeting with US secretary of state Condoleeza Rice in Islamabad on Thursday. Zardari told Rice he had asked India to see this as a chance to work together rather than be at odds, saying: “I intend to do everything in my power.”

New Delhi did not immediately respond to Zardari’s statement. However, sources in the Capital said that the names of trainers and places where meticulous training took place of the terrorists that killed 183 people during a 60-hour siege of the country’s financial capital are known to the government.

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Massive wealth erosion at top biz houses

In the current calendar year, the wealth of India’s top 25 industrial houses decreased 50.3% to Rs 9.61 lakh crore. As the credit crisis deepens in the US and Europe, investor wealth is rapidly eroding with the Sensex losing 41.9% this year alone. From above 20,000 levels in January, the benchmark index has plunged to 11,800 levels on Monday.

Dinesh Thakkar, CMD, Angel Broking, said, “The markets are near their bottom. So a fur ther correction to the tune of 5% cannot be ruled out. I feel the market will take support at 11,000 and bounce back to achieve a sustained growth of 15 to 20% per annum.” The market capitalisation of Jaiprakash, Sterlite, Essar and Hinduja declined significantly this year. The Mcap of Jaiprakash group dropped the most by 76.34% to Rs 12,171 crore. Among the Jaiprakash group companies, Jaiprakash Associates suffered the most. Sterlite Industries led the fall in its group companies’ M-cap which dipped 63.5% to Rs 41,165 crore.

A lot of wealth that was created in the market upswing is being wiped out in the current market meltdown. As the subprime crisis that originated in the US is spreading to Europe, foreign institutional investors are pulling out money from emerging markets.

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