Business
Does skyscraper boom herald economic doom
Jan 15th
Hong Kong, China (CNN) – The bigger they are, the harder they fall. That’s the tenet behind the Skyscraper Index which tracks a link between construction booms of tall buildings and economic busts over the past 140 years.
Some say the facts are bizarrely coincidental. Others say the numbers don’t lie. But if true, the latest Skyscraper Index report from Barclays Capital suggests both China and India are due for economic doom because of their current skyscraper boom.
In no mincing of words, BarCap adds that China is the world’s “biggest bubble builder.”
The country already has half the world’s existing buildings higher than 240 meters – the minimum height for skyscrapers.
But China is not stopping there. It’ll add another 66 in the next six years. That’ll nearly double its current collection from 75 to 141. You see, China has 53% of the 124 skyscrapers currently under construction around the world. (And if you think they can’t do it, think again. China has challenged itself to put up a 30-story building in just 15 days. It’s set to open January 18.)
As for India, the world’s second most populous nation only has two skyscrapers, both in the financial capital of Mumbai. But that’s going to change quickly.
In the next five years, 14 more skyscrapers will shoot up around India. That includes the Tower of India, the world’s future second-tallest tower. (The current number two is the Taipei 101 in Taiwan.)
Andrew Lawrence is the man behind the Skyscraper Index. The Director of Property Research at Barclays Capital here in Hong Kong explains the index like this: “Skyscraper construction is characterized by bursts of intense activity with easy-to-get credit, rising land prices and excessive optimism. But by the time those skyscrapers are finished, the economy has slipped into recession.”
And with China and India pushing skywards over the next several years, history’s boom and bust cycle suggests their economies may then crash back to the ground sometime near the end of this decade.
Just look to the past. In 1930, New York’s Empire State building, pictured above left in 1938, opened as the world’s tallest skyscraper rising 381 meters high. That was just as the Great Depression began to darken the U.S. economy. That lasted for more than 10 years.
In 1997, the Asian financial crisis hit just after the 452-meter Petronas Towers in Malaysia opened to take the crown of world’s tallest building.
Most recently in 2009, the Burj Khalifa opened and remains the world’s tallest skyscraper at just over 828 meters. And guess what, that event coincided with Dubai nearly going broke and heralded the Great Recession that we’re all trying to claw back from now.
And there are many more examples. So as China and India build higher and higher, there’s reason to be that much more leery of two looming financial fallouts in Asia.
We’re likely familiar with the adage “Build it and they will come”. But the person who penned that likely wasn’t thinking of economic meltdown.
Hydrogen-powered three-wheeler ‘HyAlfa’ makes debut
Jan 10th
The world’s first hydrogen-powered three-wheeler, ‘HyAlfa’, was showcased at the 11th Auto Expo here today.
Part of a development project dubbed ‘DelHy 3w’, a fleet of 15 HyAlfa three-wheelers will run on an experimental basis at Pragati Maidan, where a hydrogen refuelling station has also been set up.
The India Trade Organisation Promotion (ITPO) will use the vehicles on an experimental basis.
HyAlfa has been developed under a joint project by the United Nations Industrial Development Organisation (UNIDO) International Centre for Hydrogen Energy Technologies (ICHET), Mahindra & Mahindra and IIT-Delhi, with support from the Ministry of New and Renewable Energy.
Carbon-free fuel
“The aim of this project is to convert vehicles so that they can carry and use hydrogen — a carbon-free fuel — and thus remove all pollutants,” Mahindra & Mahindra President (Automotive and Farm Equipment Sectors), Mr Pawan Goenka, told reporters here.
He said the vehicle is not yet ready for commercial production and further fine-tuning will be required before moving in that direction.
“Moreover, we also have to look at the commercial viability of running a hydrogen-powered three-wheeler as the cost of hydrogen will be around Rs 250 per kg, which is not affordable at all,” he said.
CNG three-wheeler
Asked about the possible price of HyAlfa, he said: “When the product is on mass production, it will cost Rs 20,000 to Rs 25,000 more than a CNG three-wheeler.”
On an average, a CNG three-wheeler costs close to Rs 2 lakh.
Commenting on the development, UNIDO-ICHET Managing Director, Mr Mustafa Hatipoglu, said the DelHy 3W project aims to demonstrate hydrogen technologies developed by Indian partners for the Indian transport sector.
Project coordinator, IIT-Delhi Professor L.M. Das, said HyAlfa marks a journey of 20 years from “laboratory to land’’.
ITPO Chairperson-cum-Managing Director, Ms Rita Menon, said the hydrogen-powered three-wheeler could play a role in moving towards a newer, sustainable and eco-friendly mode of transportation.
“We are happy to be a part of this project and are especially excited about the cargo version,” she said, adding that her organisation plans to submit a report within three months on the vehicle’s performance to the project organisers.
Source : http://www.thehindubusinessline.com/companies/article2787739.ece?homepage=true
India gold, copper seen extending losses on global cues
Dec 29th
MUMBAI: Indian gold futures are likely to extend the previous session’s losses on Thursday morning, in line with a fall in the world market, which fell to a three month low, analysts said.
The most-active gold for February delivery on the Multi Commodity Exchange (MCX) ended 1.34% lower at 27,281 rupees per 10 grams on Wednesday.
A weak rupee may limit the fall, analysts said. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal and copper. It fell early on Thursday in anticipation of outflows as worries about Europe’s economic health sent the euro tumbling and Asian equities weakened.
The most-active copper for February delivery on the MCX closed 0.91% lower at 399.55 rupees per kg in the previous session.
London copper fell on Thursday, dropping for a second straight session as a firm dollar weighed, while investors eyed an important Italian bond auction later in the day for further trading cues.
New iPhone? No thanks, say cash-conscious Europeans
Dec 23rd
By Tarmo Virki | Reuters – Thu, Dec 22, 2011
(Reuters) – Weakening economies and falling prices of rival smartphones are hurting sales of Apple iPhones across Europe, data from research firm Kantar Worldpanel ComTech showed on Thursday.
The October roll-out of Apple’s iPhone 4S boosted its position in Britain and United States, but the new phones failed to excite interest in continental Europe, where Apple’s share of the fast-growing smartphone market slipped.
The smartphone industry is dominated by Google , which has stormed the market with its free Android platform.
“In Great Britain, the U.S. and Australia, Apple’s new iPhone continues to fly off the shelf in the run-up to Christmas. However, this trend is far from universal,” said Dominic Sunnebo, global consumer insight director.
Apple’s market share in the 12 weeks to end-November rose to 36 percent in the United States from 25 percent a year earlier and in Britain to 31 percent from 21 percent, Kantar said.
However, in France its share slipped to 20 percent from 29 percent and in Germany to 22 percent from 27 percent. Similar drops were seen in Italy and Spain.
“The French market is showing increasing signs of price sensitivity,” Sunnebo said.
In part, the European sales of the expensive Apple model were hit by weakening economies across the continent.
Euro zone GDP grew just 0.2 percent in the third quarter and most economists expect it to contract in the fourth and also in the first three months of next year, sending the bloc back into recession after its two-year recovery from the worst global financial crisis since the 1930s.
The euro zone’s own crisis with government debt has scared off investment and eaten into business and consumer confidence, particularly since August when investors intensified their scrutiny of the bloc’s problems.
European consumers are keeping a lid on their expenses as government spending cuts and job losses deprive companies of demand for goods and crush exports.
Google had market shares of between 46 and 61 percent in all markets. Cellphone makers like Samsung Electronics <005930.KS>, Sony Ericsson <6758.T>, LG Ericsson <066570.KS> and Motorola Mobility all use its Android platform in their phones.
“In Germany, Android achieved a dominant 61 percent share of smartphone sales in the latest 12 weeks, with the Samsung Galaxy S II the top selling handset,” Sunnebo said.
Bharti Airtel, Idea, PFC to include in MSCI; stocks react
Nov 16th
Bharti Airtel, Idea Cellular and PFC will be included in Morgan Stanley Capital International (MSCI) list. However, HDIL, SAIL, and Indiabulls Real Estate will be deleted from the list. The changes will be effective from November 30, reports CNBC-TV18.
Bharti Airtel touched an intraday high of Rs 410.00 and an intraday low of Rs 404.25. At 09:21 hrs the share was quoting at Rs 409.00, up Rs 7.55, or 1.88%. It was trading with volumes of 38,268 shares.
Idea Cellular touched an intraday high of Rs 99.25 and an intraday low of Rs 94.70. At 09:22 hrs the share was quoting at Rs 99.15, up Rs 4.60, or 4.87%. It was trading with volumes of 323,745 shares.
Power Finance Corporation touched an intraday high of Rs 166.80 and an intraday low of Rs 161.00. At 09:22 hrs the share was quoting at Rs 164.00, up Rs 3.45, or 2.15%. It was trading with volumes of 45,324 shares.
Indiabulls Real Estate touched a 52-week low of Rs 65.65. At 09:22 hrs the share was quoting at Rs 66.00, down Rs 2.20, or 3.23%.
Steel Authority of India touched a 52-week low of Rs 94.55. At 09:22 hrs the share was quoting at Rs 95.70, down Rs 3.30, or 3.33%.
Housing Development and Infrastructure touched a 52-week low of Rs 73.50. At 09:22 hrs the share was quoting at Rs 78.05, down Rs 0.45, or 0.57%.
Govt asks oil firms to cut petrol prices once crude oil prices moderate
Nov 8th
Under attack from its allies and Opposition after the latest petrol price hike, the central government on Monday asked oil marketing companies to time their price rise better.
According to sources, the public sector firms have been told to cut petrol prices whenever there is a moderation in global crude prices – to balance the price hikes seen when crude oil prices shoot up.
Petrol prices were deregulated in June 2010 with the condition that the government retains the right to intervene in public interest. The prices have already been increased five times in 2011.
Trinamool Congress MPs to meet PM on Tues
According to speculation in the market, despite deregulation, oil firms have always hiked fuel prices in consultation with the government.
However, the government on its part has pleaded helplessness over the issue, citing global economic trends. Prime Minister Manmohan Singh recently said deregulation and decontrol was the direction that India should move in, a statement many believe indicated the deregulation of diesel prices soon.
MphasiS acquires U.S. firm
Aug 2nd
IT services company MphasiS on Monday said it had entered into a definitive agreement to acquire U.S.-based software vendor Wyde Corporation. Under the terms of the agreement, MphasiS will hold 100 per cent stake in Wyde.
This acquisition is the second by MphasiS in the insurance industry vertical, after acquiring AIGSS (AIG Software Systems), the AIG captive centre in India in 2009. This deal brings with it new partnerships and strategic accounts in the insurance vertical and will complement its existing strengths in terms of skill-sets and customer base.
PTI adds
Under the terms of the agreement, Mphasis will hold a 100 per cent equity stake in Wyde. Closure of the deal is subject to completion of customary conditions, the filing added.
“Enhancing our value proposition to insurance companies was central to our thinking in this case,” Mphasis CEO Ganesh Ayyar said.
Mphasis will establish a Wysnure centre of excellence in India, which will complement and support Wyde’s onsite teams France and North America.
Wyde will operate as a product business within Mphasis Insurance vertical. The current management team, led by Jean-Rene Lyon, will continue to drive and grow the business after acquisition. Mphasis intends to continue with and strengthen Wyde’s industry leading R&D facility in France.
Wyde caters to a widespread customer base, which includes mid-market insurers across the U.S., France and Canada.
“Mphasis will provide Wyde with access to new markets and scale to provide implementation and integration services to our clients,” Wyde Corporation Chairman of the Board of Directors Pierre Barbeis said.
Wyde has over 200 senior domain professionals and over 25 customers. This investment is the second acquisition by Mphasis in the insurance industry vertical, after acquiring AIGSS (AIG Software Systems).
Source : http://www.thehindu.com/business/companies/article2312916.ece
We will come back with quantum growth in Q3
Jul 21st
BANGALORE: Wipro recently concluded a major organizational restructuring, and the company’s CEO T K Kurien is confident it will soon start paying dividends. He spoke to TOI on the sidelines of the company’s Q1 results announcement. Excerpts…
Are you happy with the progress the company is making after the restructuring?
We have gone through an exercise of simplification of structure. We are focused on getting volumes back and changing the quality of revenue. The change we have made in the organization is more significant than what people have understood. We will come back with quantum growth in Q3 and great growth after that.
Which verticals do you see significant traction in?
We have seen positive growth in BFSI, retail, energy and utility and healthcare. In the banking space we have won two big deals worth $500 million and in oil and gas we have seen an annual growth of 40%. As for healthcare, we are investing and we expect a long haul play in the space. For telecom, growth is coming from the emerging markets. But a quantum growth in this space is unlikely.
What are the key industry trends that you want to cash in on?
Enterprises are variable-izing their IT, by moving to cloud computing, to position themselves better for winning in the world of constraints, of energy, power, water, etc. Some of the deals we won support this trend. Also, analytics continues to be one of the fastest growing services and we have been able to capitalize on this opportunity. We are building mobile and tablet solutions that allow consumerization of enterprise technology and performance analytics.
How’s the newly introduced IT 360 framework working for Wipro?
Enterprises are demanding more accountability and value from investments in IT. The IT 360 framework helps customers measure the return on their IT investments evaluate the benefits and value of each individual component in the IT landscape, and maximize the value IT delivers to business.
