Germany praises deal on financing of Airbus

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Deutschland's Demurrer Diplomatist is praising the statement on the financing of the anxious Airbus A400M soldierly transport form as "ample interestingness."

Karl-Theodor zu Guttenberg told broadcaster MDR on Sabbatum the wood will incommunicative a gap in material martial equipment and untroubled numerous jobs in the European industry.

The A400M is to supersede Germany's old fast of Transall instrumentality planes, whose progressive mend costs Guttenberg called "unconscionable."

"This is close word, especially as it helps close many jobs," Guttenberg another.

The heptad nations that sequential the A400M and business EADS struck a mickle on the financing on Fri in Songster.

ISM: Activity facet growing accelerates in February

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NEW YORK - Ontogeny in the U.S. couple sphere expedited in February to its fastest step in much than two eld, but jobs remained scheming to see.

Gains in the U.S. frugalness soul so far been led by a recover in manufacturing, as companies slowed their wares drawdowns and exports rose.

The function facet, which accounts for the vast age of U.S. jobs, has seen such slower, bumpier status as layoffs and close assign measure on consumers. Its welfare is crucial to a uninterrupted recovery from the colorful corner that began in December 2007.

The Institute for Cater Management said Wednesday its fact measure service industry expression chromatic to 53 in Feb from 50.5 in Jan.

Economists polled by Thomson Reuters had prospective a small gain to 51.

Any indicator above 50 signals growing. The 53 datum is the maximal since Jan 2008, when ISM revised how it plumbed the pair sphere.

The couple facet is influential it accounts for 80 percent of U.S. jobs excluding farmworkers. That entails jobs in areas equal upbeat repair, retailing and financial services.

"The increase is particularly propitious surrendered the wicked winter storms antepenultimate month that instrument change contrived the retail and thinking sectors," said Libber Ashworth of Majuscule Economics. Works, he said Feb's version was ordered with system production maturation only virtually 2 percent a period - "a dissatisfactory effort after such a strict incurvature."

In the quarter play of antepenultimate gathering, the frugalness grew at a 5.9 proportionality yearbook stride.

Sector trait and new orders both grew faster in Feb, ISM said, despite unpleasant season defy.

Still, if nervous consumers cut sanction on outlay, the care sphere faculty summary its diminution, hindering hiring, Ian Shepherdson of Great Ratio Economics said in a research annotation.

Meanwhile, ISM's mensurate of business improved to 48.6, the highest construction since April. That's console the 26th sequent month of shrinking jobs, but it is coming the aim where companies could start to undertake again.

Sequestered reports on jobs showed betterment upward of the governance's resign of line information Friday.

The ADP payrolls sight said private-sector employers cut 20,000 jobs endure period, but that was improved than the 60,000 jobs gone in January.

Outplacement resolute Challenger, Old & Christmastide, meantime, said companies declared most 42,000 layoffs in Feb, the smallest monthly jobs loss since June 2006.

Economists are predicting the Experience Division give study on Friday that the unemployment rank edged up to 9.8 proportionality subterminal period and that employers cut 50,000 jobs.

Meanwhile, Switzerland-based staffing set Adecco SA said conditions were improving in Northeast Land.

Of the 18 industries ISM surveys, digit rumored growth in Feb, led by collection, bailiwick and entertainment and transfer and warehousing. Figure industries shrank, led by educational services, eudaemonia upkeep, and management and reason services. Agriculture held fixed.

Santiago

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Santiago is the capital and biggest city of Chile with over 5,000,000 people.

You can find almost everything you need in this city.

It has all star hotels, economical bed and breakfasts, restaurants of every ethnic background, discos, clubs, a museum, universities, international and national airports, high rise office buildings, theater, malls, fun parks, a modern subway system which makes finding your way around Santiago a lot easier, and a whole lot more.

Whether you are here on business or pleasure you'll like Santiago, Chile .

Within an hour or so from Santiago you can also find outdoor opportunities like, hiking, nature, hot springs, and skiing.

If you want to venture out to other parts of Chile you can get there by bus, airline, and rental car from Santiago.

Santiago, Chile national airport

Santiago Chile has a modern International airport. From here you can get to most every major city in Chile.

If you need travel agency information like airline help for travel to other parts of Chile or want to book a cruise, you can get that help in Santiago.

If you would like to do outdoor activities you could get a hold of a tour company and they can take you hiking in the mountains, skiing in season (June - September) or go to the ocean and enjoy the beach (summer is December - February).

There are a number of car rental agencies where you can rent a car and go out adventuring on your own.

You can also rent a camper or motorhome. If your not 25 years old or older and can't rent a car or motorhome but you can take a bus almost anywhere in Chile. chile-travel.com invites you to look around the links provide above so you can prepare yourself for some fun and adventure while visiting Santiago and its surrounding cities.

Source: http://www.chile-travel.com/santiago.htm

India Budget 2010: Quick Hits from ISB

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Ease of Doing Business: Incremental Steps But Right Intent

The major concern surrounding private investment in India has been the ease of doing business. The budget addresses some of these concerns, albeit through incremental measures. Clarification of the capital gains treatment on the conversion to LLPs will ease compliance requirements for private businesses that convert. The easing of tax audit limits, some rationalization in the limits for TDS and the increased time limit for payment of Tax Deduction at Source will also ease compliance, especially for small businesses. That the rollout of the Direct Tax Code was not delayed beyond 1 April 2011 is also a signal in the right direction towards a simplified tax regime. Granting additional banking licenses should aid the flow of industrial credit. However, these have only been incremental steps and measures towards higher FDI limits and a simplified corporate law would aid this further.

--Sidharth J. Negandhi

Giving the Bottom of the Pyramid its Due

The budget has laid down a roadmap towards inclusive growth with clear measures to promote growth at the bottom of the pyramid. The rollout of the nutrient-based subsidy augurs well for agricultural productivity. Seeking private participation in food grain storage capacity and allowing external commercial borrowing to be raised for food processing is a step forward in creating a robust food supply chain that benefits producers though more concrete measures such as tax holidays may have acted as additional stimulants. Also, a mere moratorium for payment of farm loans as opposed to a waiver signals that the onus of performance lies with the farmers. Setting up a national social security fund and the interest subvention for low cost housing create a rounded structure for development at the bottom of the pyramid.

--Sidharth J Negandhi

A New, Definite Direction Towards a Direct Tax Code

Budget 2010 is a turning point in the move from the current tax regime to the Direct Tax Code. The extent of the measures may be argued in light of sufficiency, but the direction and intentions are very clear. The reshuffling of the tax slabs upwards is a step towards what the DTC regime proposes. Increase in the 80C (includes provident fund, life insurance premium, pension plans, mutual fund investments, infrastructure bonds and national savings certificate) exemption limit. especially targeting the infrastructure sector is also a key reform. The increase in the limit for tax audit, reduction of surcharge for companies, allowing business activities up to Rs. 10 lakhs, introduction of the Saral II form for individuals, change in provisions for deductibility vis-à-vis late deposit of Tax Deducted at Source are all steps towards rationalizing the tax regime into one that is more tax-payer friendly and transparent.

--Manas Mody

No More Holiday for the Tech Sector

Disappointing the IT & ITES sector, the finance ministry decided not to extend the tax holiday beyond its expiry on March 31, 2010. In addition, the Minimum Alternative Tax has been increased to 18% from 15%. As a result, the IT & ITES sector will be adversely affected. The sector contributes about 25% of India's export revenues and about 5% to GDP. This sector employs about 10 million people directly and indirectly. Clearly, sustenance and growth of the IT & ITES sector is essential if India's economy is to achieve double digit growth. Also, given the macro-economic environment and the need of the IT & ITES companies (especially the small and medium-sized ones) for fiscal support, it would have been most prudent to extend the tax holiday for a few more years. Unfortunately, the budget turned out to be unfavorable.

--Mahesh Yellai

Positive Though Slow Move Towards Fiscal Consolidation

The budget has retained Service Tax at 10%. The base excise duty rate on major non-petroleum products have been hiked to 10% from 8% as a roll back of the stimulus measure taken last year. These moves outline a positive movement towards fiscal consolidation. The fine print says that the proposal for common rates for a wide variety of products and services go beyond just intent and actually pave the way for a smoother implementation of Goods and Services Tax code by the new proposed deadline of 1st April, 2011. However, considering that the current year is a non election year, the measures could have been more drastic especially given that the Direct Tax Code has also been pushed to a later implementation date. The budget also does not make any amendments to Central Sales Tax rates which were proposed to be phased out gradually prior to the commencement of GST.

--Somesh Satnalika

A Lack of Political Will in Education

It is a watershed year for the education sector in India with the Right to Education Act becoming operational from April 1, 2010. The budget has increased the allocation for education to 31,036 crore rupees from 26,900 crore rupees. The states will have access to a further 3675 crores through the Finance Commission. While this is a higher allocation, this still constitutes only about 4.5% of expected GDP, much lower than a number of other developing nations. The Finance Minister has followed the old adage of throwing more money in to build more schools and hard infrastructure, and there is no clarity on proposals for improving the quality of instruction and teachers. Year after year, we find that the Sarva Shiksha Abhiyaan has unspent amounts, and increasing inefficiencies in the delivery of quality education. The budget has stopped short of any firm commitment for the implementation of the Right to Education Act or providing the right incentives for state and private players to contribute to this mission. Overall, a plaid budget for the education sector, displaying a lack of political will to implement the Right to Education Act and making quality education a reality for all the children.

--Vignesh Nandakumar

More Money in Consumers' Pockets

The Finance Minister's promise of making the budget for the common man's benefit was fulfilled at least in terms of direct taxes. From the point of view of the individual tax payer the increase in slab limits, with the maximum slab over Rs 8 lakhs to be taxed at 30% aims to provide relief to over 60% of tax payers.

For Indian companies too there is a strong promise with the introduction of the new direct tax code from April 1, 2011. However, the Minimum Alternate Tax increase from 15% to 18% is a bit of a blow. The budget aims to earn a net gain from direct taxes of approx Rs 20,500 crores which will put more money in the hands of the consumer and in turn boost consumer spending.

--Salome Shah

Positive Budget for New and Existing Sources of Power

This is a remarkable budget for the energy sector, particularly given the visible and strong steps taken towards renewable power. The allocation of Rs 1000 cores towards the Jawaharlal Nehru National Solar Mission and the establishment of a Clean Energy Fund are very positive stimulus for further investment by the private sector and towards making India a significant renewable energy player. The budget has kept all supply options open by providing an allocation for micro-hydel plants, particularly in parts of the country where it makes more sense, e.g. Ladakh.

The budgetary allocation for addition of power capacity has been doubled from last year – particularly focused on introducing critical technology into the sector. This, coupled with the change in the Mega Power Policy, is likely to bring down the cost of power. The introduction of new technologies will also hopefully increase the efficiency of our power plants and transmission and distribution.

The establishment of a Coal Regulatory Authority for competitive bidding of the coal reserves is a step in the right direction to encourage more players to enter the field, thereby allowing for more efficient usage of limited resources, and will serve to break the entrenched monopoly in the coal sector.

In all, a very positive budget for the power sector, for both the existing and new sources of power. This could genuinely translate into more innovative technologies transforming the sector and a significant increase in output to meet current demand.

-Vignesh Nandakumar

Markets Cheer Budget 2010

With uncertain signals emanating from North Block, the expectations for Budget 2010 from were extremely low. Markets were thus pleasantly surprised by a balanced budget that may be best described as one that signaled the continued commitment to the reforms process, managing the fiscal deficit and spurring economic growth. The attempts to spell out implementation timelines for programs such as the Goods and Services Tax and the Direct Tax Code, as well as take action on items such as fuel prices was clearly appreciated. While consumption is linked more to credit, markets cheered the message from the minister that he will put more money in the hands of consumers through changes in the personal tax structure. While questions remain on issues such as whether an extension of debt repayment would indeed improve banks' non-performing assets, and how firm the plans are to make the famed GST and DTC operational in April 2011, the overall feel good nature and the lack of unpleasant surprises buoyed market sentiment. [As of about 2:20, the Sensex was up 281.75 points, at 16,535.95.]

--Prashant Krishnan

More Licenses to NBFC and Private Players, a Welcome Move

Overall, the Budget announcements spell good news for the financial sector. However, the implementation and regulations to follow will determine the efficacy and benefits to be derived from the changes made.

Given that the lion's share of the populous banks are the Public Sector Unit banks, the Rs. 16,500 crore allocated to PSUs could help them revamp their operations and bring in greater efficiency and raise the standards of services offered. It would also serve to help them expand operations and mobilize savings in rural areas and small towns.

The icing on the cake is more licenses to Non Banking Financial Companies and private players, something they have been eagerly waiting for and which comes to them in small numbers. For this reason, they are traditionally concentrated in bigger towns and have not managed to extend their reach. Their presence in Tier-2 cities would not only give consumers more opportunities to borrow and invest but it will also raise standards of public sector offerings in the same area. Regulation though will continue to have to be watched in this space.

Hopefully, this will provide a stimulus for the economy to move towards greater freedom to multinational banks and financial institutions.

It was disappointing to not hear of any increased Foreign Direct Investment limits in banks/insurance companies/stock exchanges which would help develop the financial sector further.

--Husna Ilyas Ghouse

Exemption on Long-term Infra Bonds, the Only Silver Lining for Infrastructure

The proposals for infrastructure in the Union Budget 2010 were disappointing to say the least. No mention of the subsidy roll-back, in line with the Parekh committee recommendations, means that the government will have to foot an unserviceable and rising subsidy bill for yet another year. The 1 rupee hike in central excise duty seems a half-hearted measure of controlling the subsidy bill. What was more disheartening was the opposition outburst and walk-out on this announcement, which indicates that it might be passed on to citizens.

[India broker] Reuters

A broker reacts while trading during the presentation of India's federal budget, at a stock brokerage in Mumbai February 26, 2010.

On the taxation front, the repeated postponement of the Goods and Services Tax by another year to April 2011 was again disappointing. While the centre-state revenue sharing arrangements still need to be resolved, yet another year is a long time and the country will lose out on the immediate efficiency improvement s that the GST will bring on the infrastructure and logistics front. In addition, what's to say that the government will stand by its promise of implementing the GST next year as well – just another case of bureaucratic lethargy?

The silver lining is the exemption of 20,000 rupees on personal income for long-term infrastructure bonds, which should stimulate retail investment in infrastructure.

--Kartik Rajendran

Is Simply Pushing the Nutrient Fertilizer Subsidy Program Enough?

While it was heartening to hear the finance minister announce the introduction of nutrient-based fertilizer subsidy program from 1 April 2010, this might not be enough to alleviate sector concerns.

Rather than the fertilizer subsidy regime, the inputs going into the subsidy calculations – global raw material prices, energy consumption contirbute more to cost build-up.

Though the new regime will compensate fertilizer companies for the costs they incur, it will help little in optimization of the costs themselves. The finance minister has failed to lay out a management framework that would insulate against volatile commodity prices, energy consumption inconsistencies and ensure overall operational efficiency. The mere implementation of the new nutrient based regime will more likely pass on the burden to the tax payer.

--Soumitra Sharma

source: http://online.wsj.com/article/SB126716985909752099.html

Sensex lifeline: high beeps and pratfalls

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CNBC-TV18 scans the top gainers and losers and finds out what might have led to the trend in Tuesday’s market

Aqua Logistics (11% up)

The Aqua Logistics Ltd share ended with 11% gains on its debut. The company said it was well on course to achieve a turnover of Rs300 crore in the current fiscal and that earnings per share would easily top the Rs12-13 mark. On a closing basis, the stock is trading at 20 times earnings.

Maruti Suzuki (3.6% down)

Shares of Maruti Suzuki India Ltd ended 3.6% lower following news that the company is recalling 100,000 units of its A Star model due to problems with the fuel pump gasket. When contacted, the company said it is in the process of solving this problem with no cost to customers. The markets expect the company to take a hit in its numbers on this.

Fame India (5% up)

Fame India Ltd hit another upper circuit of 5% even as the dates for Reliance MediaWorks’ open offer were announced. The stock has rallied one way from Rs44 per share to Rs92 per share and is now ruling even above the aggressive open offer made by the R-Adag firm.

AP Paper Mills (10.7% down)

Andhra Pradesh Paper Mills Ltd’s shares fell 10.7% as the stock went ex-rights on Tuesday. The company has offered rights shares in the ratio of 3:11 priced at Rs50 each.

Dhampur Sugar (8% down)

The shares of Dhampur Sugar Mills Ltd fell 8% in line with other sugar stocks as analysts raised concerns over the sugar cycle peaking. Sugar prices have fallen around 10% after hitting an all-time high in January.

Atul Ltd (16% up)

Atul Ltd shares rallied 16% with high volumes. The market is attributing the cause of this rally to its 6% holding in pharma company Wyeth India. Wyeth has been acquired globally by Pfizer and Atul’s stake in the company is likely to fetch it around Rs100 crore.

Source: http://www.livemint.com/2010/02/24000754/Sensex-lifeline-high-beeps-an.html

9 dead, 70 hurt in major fire at Bangalore's Carlton Towers

BANGALORE: Nine persons were killed — three of them jumping to death in panic — after a major fire broke out in Carlton Towers, a multi-storeyed commercial complex, here today.

Three persons died due to fatal injuries after jumping from the top floors of the eight-storeyed building while six lost their lives due to severe burns and asphyxiation, sources at nearby Manipal Hospital said. The fire was brought under control and the building evacuated nearly two hours after it broke out at around 4.30 pm.

At least 70 people were injured. Of them, 22 persons are critical in the Intensive Care Unit while some were being treated in the casualty ward, the sources said.

Scores of persons fainted after inhaling the smoke and had to be rushed to nearby hospital for first aid, a senior fire official said.

"The fire began in a lift service cable in the second floor and spread through the duct with smoke engulfing the remaining floors," Erappa, fire chief officer said. "More than the fire it was the smoke that caused panic", he said.

As a thick blanket of smoke engulfed the building, several persons scampered out of their offices, broke window panes in desperation and jumped out.

Scores of panic stricken people screamed for help and 15 fire tenders which rushed to the spot, managed to rescue some of them.

"We have received around 50-60 patients. Some of the persons are seriously ill. We are evaluating the patients' health," Manipal hospital COO Nagendra Swamy said.

One girl clad in a blue salwar kameez landed on the roof of the portico after jumping from the sixth floor and then slipped to the ground. Her condition was not immediately known.

One woman even tried to use her saree as a rope to get out.

Passersby also rushed to help those trapped. The fire that occurred at the start of the peak hour caused a huge traffic jam on a two kms stretch.

Hundreds of people gathered on the busy street hindering the free movement of fire brigade vehicles and fire personnel. Police said a few people jumped out of the building and suffered minor injuries.

A large number of people were stuck in the building. A user trapped in the building tweeted (username: Kiran Jonnalagadda) about the incident:

“Carlton Towers is burning and six of us are trapped inside. The fire's above but there's smoke everywhere. Saw people jump to their death.”

“Don't call me folks, you can't help. Will keep posting.”

“Our rescue ladder. It'll only reach the fourth floor. We're on the fifth.”

“Massive crowd outside. This must have choked traffic for kilometers around.”

Many users write in about the massive crowd near the place, which is causing traffic blockage. Tweetizens are also posting latest pictures of the happenings in the building.

The Twitteratti doing their bit by telling people the actual on-goings to avoid false rumours.

People are also warning the others to not to come on that road to avoid the chaos; one user enquires, “We are 20 minutes from Carlton Towers Bangalore. Which is on fire. Hope Things are not as bad as it seems to me”

Source: http://timesofindia.indiatimes.com/city/bangalore/9-dead-50-hurt-in-major-fire-at-Bangalores-Carlton-Towers/articleshow/5608146.cms

* , 11:38 A.M. ET Wal-Mart's Profit Rises 22%; Current-Quarter Outlook Is Weak

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Wal-Mart Stores Inc. reported a 22% gain in fourth-quarter profit but said sales declined at U.S. stores opened more than a year. The retailing giant also offered tepid first-quarter earnings guidance.

The worse-than-expected sales results were due primarily to falling prices in grocery and electronics, the company said. The soft fourth-quarter sales also may reflect that consumers aren't relying on discounters are much.

"The benefit they saw last year from the 'trade-down' effect seems like it's dissipating," ...

Source:- http://online.wsj.com/article/SB10001424052748703315004575073053485572576.html?mod=WSJ_business_whatsNews