the ibs times_119th issue

8/6/2019 The IBS Times_119th issue

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ISSUE - 119 6th JULY [WEDNESDAY]

EDITORS DESK - TANIYA BA

With the much awaited bailout packages being announced for Greece, the world nowawaits if it will be enough to bring about the desired results. Only recently did the ratingagency Standards & Poors predicted that the bailout package would provide little reliefto Greece, moreover putting Greece in the selective default rating. Get the complete storyhere in our Cover Story section this week.

Just when we felt proud of our sportsmen for having brought accolades to the countrywith their exemplary performance at the Common Wealth Games, alas! We had to be

disappointed again! Mired with yet another controversy of a doping scandal, the Indiansports fraternity faces tough times ahead. Get to know more about the episode and ourwriters view in our Opinion Forum.

With a slew of networking sites already making inroads in to our lives, a new name can be added to the ever growing list Google+. Touted as the next big challenger to Fac book, this social networking platform seems to be fully ready to join this competitivemarket. Get to know about it in our Brand Track section this week.

The King Of Good Times, Mr. Vijay Mallya is our Focus Of The Week. Touted as theRichard Branson of India, this mans name has become almost a synonym for flamboy-

ance and luxury. Get to know more about him here this week.Moreover we have our regular sections Fast Track, Quick Bites and Market Watch withlot of Jargons to add on to your knowledge.

Cheers!

Taniya Banerjee

Editor.

EDITOR 1 OPINION 5 FOCUS 8COVER 2 BRAND 6 MARKET 9FAST-TRACK 3 QUICK BITES 7


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FAST-TRACK NEWS - VASUNDHARAFirst Female IMF Chief: A historic eventFrench Finance Minister Christine Lagarde made history by becoming the first female managing director of the Interna-tional Monetary Fund (IMF), and her appointment received wide praise in Chicago, where she once served as Chairman ofone of the world's largest law firm Baker & McKenzie. At the same time, international finance experts agree Lagarde'sleadership and financial skills will be immediately tested with the current crisis in Greece. "A busy work agenda awaits,"declared the IMF in its internal online magazine, while it stressed one of Lagarde's most pressing items includes the diffi-cult policy choices needed to help global recovery (and) address the euro area crisis.

No oil if payment issue not settled by august: Iran Iran has threatened to stop crude oil supplies to India from August if New Delhi does not resolve a seven month old pay-ment dispute. Iran is the second largest crude supplier to the country after Saudi Arabia and accounts for about 12% ofIndias annual oil needs. State -run National Iranian Oil Company has sent letters to Mangalore Refinery & Petrochemicand Essar Oil saying it would be forced to halt supplies from next month if the two countries fail to evolve a mechanismfor future payments, executives at the refining firms said on condition of anonymity. The two refiners are among the prin-cipal buyers of Iranian crude.

Reliances K6 -D6 Block Capex not inflated: OilMinThe cost of developing Indias largest oilfield in Reliances D -6 block was actually less than the estimates of globa

perts such as Mustang International, which calculated a figure of $9.03 billion, oil ministry officials responded to objec-tions raised by the national auditor about raising expenditure to $8.08 billion. The government had appointed MustangInternational in Oct07 to validate RILs cost estimates for producing natural gas from D1 and D3 fields in the block.

Vedanta to buy another 10% in Cairn energyVedanta Resources Plc will buy another 10% in the Indian arm of Cairn Energy Plc as part of restructuring of the much-delayed deal that will result in a $600 million reduction in the price tag. The restructuring was necessitated because theAnil Agarwal-led company had agreed that a part of the taxes paid by the 30% shareholder, state-run explorer ONGC,could be deducted from revenues. The tax, known as royalty, is currently paid entirely by ONGC and the government hadinsisted that its burden had to be reduced before it approved the deal.

Vodafone to pay $500 million more for Essar buyoutVodafone will pay almost $500 million more for acquiring one-third of its Indian joint venture after the British companyagreed to compensate its Indian partner, the Essar group for a tax payment that was not factored into the original agree-

ment. The transaction will result in the steel to BPO group owned by the Ruias, receiving $4.58 billion in cash for its 33%stake, bringing to an end a lucrative and controversial involvement in the telecom sector.

L&T Finance just cannot wait to go ahead with an IPO L&T Finance has finally decided to go ahead with the INR 1,750 crore initial public offer (IPO) within the next six weeksdespite the prevailing bearish sentiment. Besides the value unlocking opportunity for the shareholders of L&T, it will helpL&T Finance open alternate channels of fund raising. The company is also in talks with institutional investors for a pre-IPO placement for up to INR 400 crore. The issue proceeds would be used for repayment of INR 345 crore loans given bythe parent L&T, infusing INR 570 crore equity into L&T Finance and investing INR 535 crore in the capital base of L&TInfrastructure Finance Company.

FCCB investors fear row as maturity nearsGlobal hedge funds and offshore investors are closely tracking the response of Corporate India, judiciary and financial

market regulators as INR 16,000 crore of convertible bonds sold by local top-500 companies came up for redemption byMarch 2012. Lenders are curious to know whether the courts will uphold creditors rights. Shares of many companies aretrading at a fraction of the FCCB conversion price. If prices do not recover, firms can redeem bonds by paying off toinvestors and that seems tough given issuers stretched balance sheets. But RBI later this week came to rescue the issuer

by allowing repayments through fresh ECBs.

Actuarial Risk The risk that the assumptions that actuaries implement into a model to price a specific insurance policy mayturn out wrong or somewhat inaccurate.

THE IBS TIMES

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Asia, Africa to dominate world trade: HSBC studyAs the US fades as a global superpower and primary consumer for world trade; new trade and capital marketconnections are witnessing the emergence of a new Silk Route, led by China, that could see trade between Asia,Middle East, Africa and Latin America eclipse trade between developed nations and emerging nations, or evenamong developed nations. Till date, emerging nations' growth has been unusually dependent on exports to thedeveloped world, but western nations are simply not growing fast enough to sustain this model.

Global M&A deals hit 1.5 trillion in first half Global M&A deal volume reached $1.5 trillion in the first half of this year, registering a 22% increase from lastyear levels, says a report by deal tracking firm Dealogic.The deals were mainly targeted at the Americas, fol-lowed by the EMEA and the Asia Pacific region, including India and China. China was the most targeted nationin Asia Pacific with $84.3 billion in the first half of 2011 followed by Australia ($ 71.9 billion), Japan ($ 55.8

billion) and India ($ 32 billion). "India has the second highest cross region inbound M&A volume in Asia Pa-cific with USD 22.3 billion in the period under review, up a whopping 144 % from last year"Dealogic said.

Foreign retail investors get entry into MFs, cap set at $10 billionThe government has allowed foreign retail investors to cumulatively buy up to $10 billion worth of Indianshares through domestic mutual funds, as it looks for ways to make up for the decline in foreign direct invest-ment. The move to allow this new class of investors, known as Qualified Foreign Investors or QFIs, was first

proposed by Finance Minister Pranab Mukherjee while presenting the 2010-11 budget. QFIs will include indi-

viduals and bodies such as pension funds.

Commodities to rebound from the worst losing streak since 2008 Commodities will rebound from the worst losing streak since the end of 2008 because shortages of everythingfrom copper to palladium to corn will boost prices even if economic growth slows. "The long-term perspectiveis that many commodities have supply constraints and that's an environment where you want commodities inyour portfolio" said Walter Hellwig, who helps manage $17 billion of assets at BB&T Wealth Management inBirmingham. Bloomberg surveys anticipate silver being the biggest winner among 15 major commodities in thesecond half.

Fed May Buy $300 billion in treasuries after QE2 The Federal Reserve will remain the biggest buyer of Treasuries, even after the second round of quantitativeeasing ends this week, as the central bank uses its $2.86 trillion balance sheet to keep interest rates low. While

the $600 billion purchase program, known as QE2, winds down, the Fed said June 22 that it will continue to buy Treasuries with proceeds from the maturing debt it currently owns. That could mean purchases of as muchas $300 billion of government debt over the next 12 months without adding money to the financial system.

Kvitova beats Sharapova at Wimbledon for 1st major One might reasonably have expected Petra Kvitova, not Maria Sharapova, to be betrayed by nerves in the Wim-

bledon final. This was Kvitovas first Grand Slam championship match, while Sharapova already owned threemajor titles, including one from the All England Club. So, Kvitova tried almost everything once the play began,

particularly her big, flat left-handed groundstrokes that pushed Sharapova back on her heels. In a surprisinglylopsided final, Kvitova beat the higher-seeded, yet shakier, Sharapova 6-3, 6-4 Saturday to win Wimbledon for her first Grand Slam trophy.

Rafael Nadal loses to Djokovic in Wimbledon final

Spanish Sportsman & Tennis ace Rafael Nadal was defeated in the Final of Wimbledon 2011 by Serbian &World Tennis Number 1 ranked player Djokovic 6 - 4, 6 - 1, 1- 6 , 6- 3. Djokovic won his first ever Wimble-don Tournament & defeated Nadal for the 5th straight time in a final. The Serb is having a superb season whichkicked off with the Australian Open & has basically won everything (except Roland Garros) ever since.

Erasure Guarantee - A guarantee made by accredited institutions assuring the legitimacy and accuracy of changes made tobonds and securities.

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OPINION FORUM GLORY OF INDIAN SPORTS TARNISHED BY DOPING SCAM!- SHILPA MALWhat more can one think about Indian democracy today other than scams, political tussles, corruption and the never ending fight for representation? Well, in the recent past I see myself as critic rather than self-defeating supporter of our systems. The situation of our country is like house divided against itself which will never stand unless everyone in the system unify and function for the common benefit. The recent scam in sports reflects another failure on part of Indiaadministration. The accolades brought by the Indian athletes in the Common Wealth Games ar

stigmatized by the biggest dope scandal that was unveiled by the Indian Olympics Associatio(IOA).

Six track and field athletes, including two Commonwealth and Asian Games gold medalistflunked dope tests for anabolic steroids in just two days. Mandeep Kaur and Sini Jose, botmembers of the Indian women's 4x400m relay who won gold in the Commonwealth and AsiaGames last year, quarter-milers Jauna Murmu and Tiana Mary Thomas, long jumper Hari Krishnan and shot putter Sonia were caught for doping. Mandeep andJauna flunked tests conducted by International Association of Athletics Federations at NIS Patiala last month while Sini, MaryThomas, Hari Krishnan and Sonia returned positive tests by Na-tional Anti Doping Agency (NADA) during June 11-14. All thesix athletes have been provisionally suspended till their discipli-nary hearings are completed and quantum of punishments decidedwhile the IOA has demanded a comprehensive inquiry into thealleged nexus between the medicine (drug) suppliers, coaches,doctors, other officials along with involved sportspersons.

The scandal has brought shame to the nation and a myopic viewover this will not lead our nation anywhere. A thorough inquiry should be instituted to uncovethe layers of doping controversy. Legend Milkha Singh slammed the coaches and the federatio

for the doping scandal and said the tainted athletes should be stripped off the medals they hawon. I would say why the players would be stripped off if they are being influenced by the officials and the administration in a negative way. There are serious loopholes that require immediate attention. Firstly, how can a player flunk the dope test at NADA or even if not flunked butested positive is not brought to books. The Sports Authority of India in charge of the trainincamps is guilty of all the dope mess created in the country

Mandeep Kaur and Jauna Murmu are not criminals; they are victims of a system. They are welaware of doping menace in sports. They have knowingly and willfully followed the traininmethodology advocated by the coaches and recovery experts as well the authorities, who ru

sports in the country. If these athletes are culpable of doping offences, so are their coaches, sup port staff and sports administrators. No matter how glorious front we may pose to the world; weare still at the helm of system ridden with controversies and scams that are eating away the entireconomy.

Swap Execution Facility- A trading system or platform that enables many participants to execute or trade swaps. A swapexecution facility would allow for greater transparency and would be a significant shift in the way derivative trading is made.

The Dodd-Frank Act lays the foundation for this change of derivative execution.

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Legend Milkha Singh slammed the coaches and the federation for the doping scandal and said the tainted athletes

should be stripped off the medals they had won.

I would say why the players would be stripped off if they are being in-

fluenced by the officials

and the administration in a negative way.

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BRAND TRACK GOOGLE+, SOCIAL MEDIA WAVE HITTING US SOON! -SANDEEP A lazy Sunday afternoon and I happened to come across this yet another new buzz in thesocial world. Google plans to launch its new social networking platform Google +

promises to take social networking to a whole new level. Analysts say it is in response tothe competition that Google faces from Facebook. But my question is, isnt that a little toolate? Another question is that how is Facebook which is a platform that is completely fo-cused to social networking a threat or is competition to the worlds largest search engine as

we know it i.e. Google. Well apparently it is! Traditional advertising groups jostled for awards at a recent annual industry gathering in Cannes, the year's biggest star was a new-comer to the beaches: the social network Facebook. The company has gone from nowhere afew years ago to become the biggest single seller of online display advertising in the UnitedStates with more than $2 billion in revenues this year, according to research firm eMar-keter. It has achieved this by bringing in a new sophisticated trend of tracking the likesand dislikes through the data mining process which makes senseto its advertisers.

So now it is clear why the search engine giant feels that Facebook is its competition. To counter this change in trend Google on the

28th

of June launched its website Google+ which created quite a buzz, but all of a sudden on July 1 st within less than 48 hoursfrom its launch it stops the rollout of its website on hearing thenews that Facebook is planning to come out with something awe-some. But for the ones who did get a chance to land themselveson the Google + page within the initial 48 hours have mixed feelings about the new plat-form. Is this done by Google in defense to the Facebook announcement or is it just a strat-egy to create an artificial buzz among the internet users.Google + focuses on the most basic of human needs which is the need to connect with oth-ers. With a smile, a laugh, a whisper or a cheer, we connect with others every single day.Today, the connections between people increasingly happen online. Yet the subtlety andsubstance of real-world interactions are lost in the rigidness of our online tools. Googlewants to make it better by including you, your relationships, and your interests. It plans toachieve this by bringing its new features which are obviously different from what other so-cial sites have to offer and Facebook in particular. With its features such as + Circwhich enables the users to make custom circles of the existing network by making sure thatonly information relevant to them is provided. Whether it is inside a pub or on a front

porch, human beings have always enjoyed hanging out, hence Google has + Hangowhich enables virtual on screen hangouts and making the whole experience fact-to-face-to-face. It combines the casual meet-up with live multi-person video, making the on-screengatherings fun, fluid and serendipitous. + Sparks delivers a feed of highly contagi

content from across the internet on any topic you want, in over 40 languages. Simply addyour interests, and you will always have something to watch, read and share with just theright circle of friends. There is much more from Live Video Streaming to + apps for themobile phone users, Google plans to leverage its web expertise and ensure it comes outwith a bang. And may be as it is said, It is better late than never. So for all the social ani-mals out there, be on the watch out and make sure that the whole social wave of Google hitsyou and you do not miss out on it.

THE IBS TIMES

It plans to achieve this by

bringing its new features

which are obviously dif-

ferent from what other

social sites have to offer

and Facebook in particu-

lar.

Analysts say it is in re-

sponse to the competition

that Google faces from

Facebook.

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QUICK BITES-NEWS THAT CANT BE MISSED ! - RAJAT M Big Shots

French Finance Minister Christine Lagarde elected the managing director of the IMFHarish Manwani named the new Chief Operating Officer of Unilever Plc, the world's second largestconsumer goods companyYC Deveshwar re-appointed as chairman of tobacco-to-hotel conglomerate ITC

Company Talks Tata Motors sales down 0.70% in JuneVolkswagen sales up 166% in June at 5,397 unitsICICI Bank plans to open 1,500 branches in 4 yearsM&A deals involving Indian companies halve to $ 7.7 billion in Jun qtr CVC bans Corporation Bank from awarding tendersCafe Coffee Day to expand all formats, launch a loyalty card for customersGitanjali Group launches a new brand identity and logoBritannia to invest over Rs.200 crore in new plantsApollo to invest Rs 2,250 crore in Welspun GroupCarlyle Group invests $25 million in India's Visen IndustriesLanco Infratech faces threat of export licence review in AustraliaBank of Mah and SBI Cards launch credit cardAmul mulls US launch via pact with local unitsEmami eyes healthcare acquisitions, to invest Rs 400 crores

Economy Speaks Fitch scales down 2011 GDP growth to 7.7 pcFDI in retail likely to be approved within wee ks Infra sectors growth slows down to 5.3 pc in MayGovernment likely to discuss sugar de-control next week Reserve Bank of India allows issue of shares under FDI schemeIndia's growth to overtake China: Kaushik BasuForeign retail investors get entry into MFs, capital set at $10 billionManufacturing set to get tax boost in new policyIndia's May exports up 56.9 pc to $25.9 billionSharad Yadav for ban on Futures trading of agri-productsDelay in monsoon may spell doom for farmers

The Captains of the Ships Chairman of Hotel Leela Venture: Capt. C.P.K. Nair Chief Marketing Officer, Verizon Wireless Ms.Marni Walden Global Chairman & CEO, P&G- Mr. Robert McDonald

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http://economictimes.indiatimes.com/news/economy/policy/fdi-in-retail-likely-to-be-approved-within-weeks/articleshow/9060856.cmshttp://economictimes.indiatimes.com/news/economy/policy/fdi-in-retail-likely-to-be-approved-within-weeks/articleshow/9060856.cmshttp://economictimes.indiatimes.com/news/economy/policy/fdi-in-retail-likely-to-be-approved-within-weeks/articleshow/9060856.cmshttp://economictimes.indiatimes.com/news/economy/policy/fdi-in-retail-likely-to-be-approved-within-weeks/articleshow/9060856.cmshttp://economictimes.indiatimes.com/news/economy/policy/fdi-in-retail-likely-to-be-approved-within-weeks/articleshow/9060856.cmshttp://economictimes.indiatimes.com/news/economy/policy/fdi-in-retail-likely-to-be-approved-within-weeks/articleshow/9060856.cmshttp://economictimes.indiatimes.com/news/economy/foreign-trade/indias-may-exports-up-569-pc/articleshow/9061694.cmshttp://economictimes.indiatimes.com/news/economy/foreign-trade/indias-may-exports-up-569-pc/articleshow/9061694.cmshttp://economictimes.indiatimes.com/news/economy/foreign-trade/indias-may-exports-up-569-pc/articleshow/9061694.cmshttp://economictimes.indiatimes.com/news/economy/policy/fdi-in-retail-likely-to-be-approved-within-weeks/articleshow/9060856.cms


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FOCUS OF THE WEEK THE KING OF GOOD TIMES!!! - ADHIRA

Fairway Bond- A type of bond that accrues interest if the embedded index or interest-rate option underlying the bond re-mains within a specified range. The fairway in golf is like the index or interest rate range. The outlook is positive if the ball landson the fairway; if a ball lands in the rough, the outlook is negative.

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I was standing at Prince Panwala in NFC Market; New Delhi when my friend asked me, could I everstop being a philanderer? Could I quit smoking? And I said YES. He than asked me if I could quidrinking beer and my immediate reaction was no, never.

He is a man who changed the face of the liquor industry in the world including the face of beer industryacross fifty nations. It was a privilege for my friend when he received his MBA degree at IMT Ghazia-

bad from him. He is called the Richard Branson of India. My focus of the week is the chairman of UBGroup Ltd, Dr. Vijay Mallya.

At a tender age of 27, Mallyas father passed away leaving him with an empire with annual revenues of$100 million. But, that did not hamper his growth plans; he transformed his fathers empire into a multimillion dollar business with annual sales more than US$ 4 billion. Pres-ently his group consists of over sixty multi national companies with

businesses encompassing life sciences, agriculture, chemicals, informa-tion technology, aviation and leisure.

Mallya is a man known across the globe for his flamboyant lifestyle for me he is a man with a vision for acquisitions. He acquired the globalBerger Paints Group in 1988; in 2005 he took over Millennium Brewer-

ies Ltd which owned the two premium beer brands named Sandpiper and Zingaro . In 2007 he became the liquor baron of the world by ac-quiring Scotch whisky maker Whyte & Mackay for Rs 6000 crore.

He is also the owner of Indias best domestic airlines, Kingfisher. At present his airline connects 32cities and is also the owner of Air Deccan, a low cost airline (the name was later changed to Kingfisher Red).

Mallya is a keen sportsman and is an ardent aviator and yachtsman of distinction. He participates invarious sporting events and supports various sporting activities worldwide. His passion for sports andhis dream to see India reach new height in all form of sports is the reason for his buying of Spyker F1,Formula One team in 2007 to give India its first F1 team and it is only his hard work that India wouldhold its first Grand Prix in Greater Noida this year. He also owns Queens Park Rangers FC and intendsto buy A S Bari, a football club which plays in the Italian Serie A. He is also a proud owner of an IPLteam called Royal Challengers, Bangalore.

Mallya loves his country. He has made some staggering auction purchases from his own earned wealthfor the country. His winning bid of 175,000 for the sword of Tipu Sultan at an auction in London anda successful bid for the belongings of Mahatma Gandhi at US$1.8 million, in a New York auction (thatinitially caused an uproar in India and its government tried and failed to prevent it from going under thehammer) make him countrys favorite businessman .

Mallya is a man who sets example for others. He believes in working hard and partying harder. Knownfor his crazy parties, Mallya does not think twice before flaunting his wealth. Mallya owns yachts, pri-vate jets, a customized Boeing 727, around 250 vintage cars and a stud farm with 200 horses. He also

owns Kalizma, a 165 feet yacht; which was once owned by actor Richard Burton.Mallya truly is the KING OF GOOD TIMES.

He participates in various

sporting events and sup-

ports various sporting

activities worldwide.

Mallya is a man who sets

example for others. He

believes in working hard

and partying harder.

Known for his crazy par-

ties, Mallya does not think twice before flaunt-

ing his wealth.

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