Benitez and Moyes vow to fight on

At the end of what has been, on and off the pitch, a disastrous week in the city of Liverpool, both Rafael Benitez and David Moyes said that if they were to leave Anfield or Goodison Park they would have to be prised from their jobs. Neither man intends tomorrow's Merseyside derby to be their last.

Asked about his future in the wake of Liverpool's exit from the Champions League and a sequence of results that has left them 13 points off the pace domestically, Benitez listed the Real Madrid team that lost to Liverpool in the 1981 European Cup final. He had been part of that squad but never became close to joining the first team. But he had stuck it out at the Bernabeu and he would do the same at Anfield.

"I decided to stay at Madrid after years of receiving offers from top sides, offering more money, it is the same here," said the Liverpool manager. "I have had massive offers from different clubs but I wanted to stay and fight and to do my best in every single game. If we win two or three in a row, everything will change and I am 100 per cent convinced we will finish in the top four. At least the top four. I have a five-year contract because of my commitment to the club, fans, staff, players and all the other people at Liverpool. Hopefully, in five years we can talk about another contract extension."

Comments by the former Liverpool captain, Jamie Redknapp, that Benitez "manipulates" the club's supporters and has created a team "that is not going anywhere" caused Benitez to question where his loyalties lay. "I am surprised people so close to Liverpool are working hard to keep Tottenham [Redknapp's father Harry's club] in the top four."

Just as in May, when Liverpool had finished with their highest points total since they glided to the title in 1988, it would seem impossible that Benitez would have to make this statement, the turnaround in Everton's fortunes has been equally perplexing and at Goodison demoralising. This week a club that has lost to Burnley, Bolton and Hull saw its long-term financial future imperilled with the rejection of a proposed new stadium at Kirkby. Yesterday, Moyes' accent may have differed from Benitez's but his message was the same.

"That is complete nonsense," he said when asked if the collapse of the Kirkby project had triggered thoughts of resignation. "I've been here seven and a half years and worked really hard to get here. We are in a bad moment just now but I'll carry on trying to get through this. Why would I stay? Because it is the right thing to do. It is the right thing to get on with it."

Moyes added that after the failure of the "Goodison on the Water" project, which would have given Everton a home on the city's iconic waterfront, and now Kirkby, it was time for the city council to approach the club, rather than the other way round.

"The [Kirkby] stadium might have made us bigger, better known in Europe and attracted bigger players. It might have enhanced our identity. All I know is that we need a stadium. What stadium did they go down to London with for the World Cup bid? I am a football manager, not a CEO, but I am looking at it and thinking they should now show us their goods."

Of all the goods Benitez has bought in his five years on Merseyside, few have raised more question marks than the £21m he paid Roma for Alberto Aquilani; a midfielder who was supposed to replace Xavi Alonso, but who will make his full league debut after Liverpool have been eliminated from the Champions League, the Carling Cup and, realistically, the seemingly endless quest for the Premier League.

"People ask why I don't play him." Benitez said. "The games have been so close that if you put someone on the pitch who isn't ready, maybe he cannot settle. If you are playing Lucas [Leiva], [Javier] Mascherano and [Steven] Gerrard and play Aquilani, maybe you make a mistake and lose control. If we were winning every game 3-0, then it would be easy to bring him on and allow him to settle.

"The problem we have with him is that when I talked to the surgeon who was doing his [ankle] operation, he said he would be available in August. We did our tests and it was two months instead of one and then there were problems and it was three months. But we have signed him for five years, not one season. And, if we had signed him when he was fully fit, the price may have been up to £30m."

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Benitez and Moyes vow to fight on

At the end of what has been, on and off the pitch, a disastrous week in the city of Liverpool, both Rafael Benitez and David Moyes said that if they were to leave Anfield or Goodison Park they would have to be prised from their jobs. Neither man intends tomorrow's Merseyside derby to be their last.

Asked about his future in the wake of Liverpool's exit from the Champions League and a sequence of results that has left them 13 points off the pace domestically, Benitez listed the Real Madrid team that lost to Liverpool in the 1981 European Cup final. He had been part of that squad but never became close to joining the first team. But he had stuck it out at the Bernabeu and he would do the same at Anfield.

"I decided to stay at Madrid after years of receiving offers from top sides, offering more money, it is the same here," said the Liverpool manager. "I have had massive offers from different clubs but I wanted to stay and fight and to do my best in every single game. If we win two or three in a row, everything will change and I am 100 per cent convinced we will finish in the top four. At least the top four. I have a five-year contract because of my commitment to the club, fans, staff, players and all the other people at Liverpool. Hopefully, in five years we can talk about another contract extension."

Comments by the former Liverpool captain, Jamie Redknapp, that Benitez "manipulates" the club's supporters and has created a team "that is not going anywhere" caused Benitez to question where his loyalties lay. "I am surprised people so close to Liverpool are working hard to keep Tottenham [Redknapp's father Harry's club] in the top four."

Just as in May, when Liverpool had finished with their highest points total since they glided to the title in 1988, it would seem impossible that Benitez would have to make this statement, the turnaround in Everton's fortunes has been equally perplexing and at Goodison demoralising. This week a club that has lost to Burnley, Bolton and Hull saw its long-term financial future imperilled with the rejection of a proposed new stadium at Kirkby. Yesterday, Moyes' accent may have differed from Benitez's but his message was the same.

"That is complete nonsense," he said when asked if the collapse of the Kirkby project had triggered thoughts of resignation. "I've been here seven and a half years and worked really hard to get here. We are in a bad moment just now but I'll carry on trying to get through this. Why would I stay? Because it is the right thing to do. It is the right thing to get on with it."

Moyes added that after the failure of the "Goodison on the Water" project, which would have given Everton a home on the city's iconic waterfront, and now Kirkby, it was time for the city council to approach the club, rather than the other way round.

"The [Kirkby] stadium might have made us bigger, better known in Europe and attracted bigger players. It might have enhanced our identity. All I know is that we need a stadium. What stadium did they go down to London with for the World Cup bid? I am a football manager, not a CEO, but I am looking at it and thinking they should now show us their goods."

Of all the goods Benitez has bought in his five years on Merseyside, few have raised more question marks than the £21m he paid Roma for Alberto Aquilani; a midfielder who was supposed to replace Xavi Alonso, but who will make his full league debut after Liverpool have been eliminated from the Champions League, the Carling Cup and, realistically, the seemingly endless quest for the Premier League.

"People ask why I don't play him." Benitez said. "The games have been so close that if you put someone on the pitch who isn't ready, maybe he cannot settle. If you are playing Lucas [Leiva], [Javier] Mascherano and [Steven] Gerrard and play Aquilani, maybe you make a mistake and lose control. If we were winning every game 3-0, then it would be easy to bring him on and allow him to settle.

"The problem we have with him is that when I talked to the surgeon who was doing his [ankle] operation, he said he would be available in August. We did our tests and it was two months instead of one and then there were problems and it was three months. But we have signed him for five years, not one season. And, if we had signed him when he was fully fit, the price may have been up to £30m."

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Lampard returns for Arsenal clash

Carlo Ancelotti insists that Sunday's Barclays Premier League showdown with Arsenal at the Emirates Stadium will not decide the title or rule the Gunners out of the race.

Victory for Chelsea would put them 11 points ahead of Arsene Wenger's side and the Blues have been boosted by a fit again Frank Lampard.

The England midfielder injured his thigh on international duty but has regained full fitness in time to play against the Gunners.

"Frank is fit, yes," said Ancelotti. "He trained for the last two days and did very well. He's in good condition.

"He's ready to play. I think that our physio and our doctor worked very well with him. He is a fantastic professional player. He stayed to improve his condition for a long time in Cobham."

Lampard travelled to Serbia for placenta treatment but despite the miles, the player and the club doctor decided to undergo just one hour of standard massage treatment.

"He stayed one hour with the doctor for treatment and 80 hours - I don't know - in Cobham here to work," confirmed Ancelotti.

"But it is a very important game because Arsenal are one of the most important teams in England and Europe.

"They're playing very well. I like their style - they try to play and attack to create difficulties for the other teams.

"It will be a very good test for us. We want to put the best on the pitch against Arsenal. I think it will be a fantastic match because both teams want to play football. All the fans will have a fantastic opportunity to see a good game."

"This is not a decisive match for Chelsea or for Arsenal. It's an important match. Arsenal will want to win the game, and Chelsea also, but it's not decisive for the title.

"It would be 11 points if we won, but Arsenal would have a game in hand. It's not so important for the title."

A win for the Blues would also give them a clean sweep over their top four rivals, having already beaten Manchester United and Liverpool.

But Ancelotti played down the significance of success over their rivals.

"We don't want to send out a message," said Ancelotti. "We want to win to try to improve our position, that's all, not send a message.

"When you play against a strong team like Arsenal or Manchester United, it's an important test. This is an important test for us, but nobody else."

Much has been made of Arsenal's physical weakness compared to Chelsea but Ancelotti does not believe it will come down to whichever side is the strongest on the day.

"I think they have scored a lot of goals from free-kicks," added the Italian. "I don't want to think about this game only on free-kicks. We have to think about other things, that Arsenal have very good midfielders who we have to control. This can be a difficult match for us if Arsenal keep control of midfield.

"There is not a big difference between Arsenal and Chelsea in terms of their systems of play.

"I feel we have players in very good condition. I want to rotate in the next few games, like the last games against Wolves and against Porto.

"This is important. Maintaining players in good condition, with good feeling and a good atmosphere, is important."

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Lampard returns for Arsenal clash

Carlo Ancelotti insists that Sunday's Barclays Premier League showdown with Arsenal at the Emirates Stadium will not decide the title or rule the Gunners out of the race.

Victory for Chelsea would put them 11 points ahead of Arsene Wenger's side and the Blues have been boosted by a fit again Frank Lampard.

The England midfielder injured his thigh on international duty but has regained full fitness in time to play against the Gunners.

"Frank is fit, yes," said Ancelotti. "He trained for the last two days and did very well. He's in good condition.

"He's ready to play. I think that our physio and our doctor worked very well with him. He is a fantastic professional player. He stayed to improve his condition for a long time in Cobham."

Lampard travelled to Serbia for placenta treatment but despite the miles, the player and the club doctor decided to undergo just one hour of standard massage treatment.

"He stayed one hour with the doctor for treatment and 80 hours - I don't know - in Cobham here to work," confirmed Ancelotti.

"But it is a very important game because Arsenal are one of the most important teams in England and Europe.

"They're playing very well. I like their style - they try to play and attack to create difficulties for the other teams.

"It will be a very good test for us. We want to put the best on the pitch against Arsenal. I think it will be a fantastic match because both teams want to play football. All the fans will have a fantastic opportunity to see a good game."

"This is not a decisive match for Chelsea or for Arsenal. It's an important match. Arsenal will want to win the game, and Chelsea also, but it's not decisive for the title.

"It would be 11 points if we won, but Arsenal would have a game in hand. It's not so important for the title."

A win for the Blues would also give them a clean sweep over their top four rivals, having already beaten Manchester United and Liverpool.

But Ancelotti played down the significance of success over their rivals.

"We don't want to send out a message," said Ancelotti. "We want to win to try to improve our position, that's all, not send a message.

"When you play against a strong team like Arsenal or Manchester United, it's an important test. This is an important test for us, but nobody else."

Much has been made of Arsenal's physical weakness compared to Chelsea but Ancelotti does not believe it will come down to whichever side is the strongest on the day.

"I think they have scored a lot of goals from free-kicks," added the Italian. "I don't want to think about this game only on free-kicks. We have to think about other things, that Arsenal have very good midfielders who we have to control. This can be a difficult match for us if Arsenal keep control of midfield.

"There is not a big difference between Arsenal and Chelsea in terms of their systems of play.

"I feel we have players in very good condition. I want to rotate in the next few games, like the last games against Wolves and against Porto.

"This is important. Maintaining players in good condition, with good feeling and a good atmosphere, is important."

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Jeev, Jyoti take India to tied 7th

Shenzhen: Jeev Milkha Singh and Jyoti Randhawa combined for yet another steady performance and turned in a four-under 68 to take India to the tied seventh spot after the second round of the World Cup of Golf here Friday.

The duo mixed seven birdies against three bogeys in the foursomes play, in which the players take alternate shots with the same ball, to total nine-under 135.

On the second day in a row, it was a bogey for the Indians on the second hole but the pair made amends with a birdie on the very next. Another couple of birdies followed on the seventh and ninth hole before the Indians made the turn at two-under.

The back-nine journey turned out to be topsy-turvy as Jeev and Jyoti found four birdies against two bogeys. “We are pretty pleased with the way we played today (Friday). We combined really well. We left a few shots out there but that’s part of the game. We played the par-fives really well, making birdies on all of them.

“We are going all out tomorrow (Saturday) when we revert to the four-balls as I think both of us are playing really well and we are looking forward to a low one tomorrow,” Jeev said.

Saturday’s round would be played in the better-ball or four-ball format in which each player of the team plays with his own ball until completing the hole. The lower of the two scores is recorded as the team score for that hole.

Jyoti said the format would help the Indians turn in a low card.

“Like Jeev rightly said, we combined really well. Whenever he was out, I was in… We made a few putts coming in and that changed a lot of things. I was a little jetlagged yesterday (Thursday) but now I am back to swinging the club well so we should get a low number tomorrow,” he said.

At the top of the leaderboard, the Irish team of Graeme McDowell and Rory McIlroy maintained their three shot lead after a four-under 68. Ireland’s two-day total stands at 18-under 126 at the halfway stage at Mission Hills, with Sweden being their nearest challengers after Robert Karlsson and Henrik Stenson’s brilliant 65 took the defending champions to 129.

Italy occupy the third spot, one stroke behind Sweden after a second round of 66. Japan were fourth on 11-under after a 71 with Wales (68) and Venezuela (67) sharing fifth on 10-under.

England, one of the pre-tournament favourites, shot a 69 to stand nine shots off the pace, while the Sergio Garcia-led Spanish team shot a 71 and would need to make up 14 shots on the leaders over the weekend.

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Posted in: SPORTS

Jeev, Jyoti take India to tied 7th

Shenzhen: Jeev Milkha Singh and Jyoti Randhawa combined for yet another steady performance and turned in a four-under 68 to take India to the tied seventh spot after the second round of the World Cup of Golf here Friday.

The duo mixed seven birdies against three bogeys in the foursomes play, in which the players take alternate shots with the same ball, to total nine-under 135.

On the second day in a row, it was a bogey for the Indians on the second hole but the pair made amends with a birdie on the very next. Another couple of birdies followed on the seventh and ninth hole before the Indians made the turn at two-under.

The back-nine journey turned out to be topsy-turvy as Jeev and Jyoti found four birdies against two bogeys. “We are pretty pleased with the way we played today (Friday). We combined really well. We left a few shots out there but that’s part of the game. We played the par-fives really well, making birdies on all of them.

“We are going all out tomorrow (Saturday) when we revert to the four-balls as I think both of us are playing really well and we are looking forward to a low one tomorrow,” Jeev said.

Saturday’s round would be played in the better-ball or four-ball format in which each player of the team plays with his own ball until completing the hole. The lower of the two scores is recorded as the team score for that hole.

Jyoti said the format would help the Indians turn in a low card.

“Like Jeev rightly said, we combined really well. Whenever he was out, I was in… We made a few putts coming in and that changed a lot of things. I was a little jetlagged yesterday (Thursday) but now I am back to swinging the club well so we should get a low number tomorrow,” he said.

At the top of the leaderboard, the Irish team of Graeme McDowell and Rory McIlroy maintained their three shot lead after a four-under 68. Ireland’s two-day total stands at 18-under 126 at the halfway stage at Mission Hills, with Sweden being their nearest challengers after Robert Karlsson and Henrik Stenson’s brilliant 65 took the defending champions to 129.

Italy occupy the third spot, one stroke behind Sweden after a second round of 66. Japan were fourth on 11-under after a 71 with Wales (68) and Venezuela (67) sharing fifth on 10-under.

England, one of the pre-tournament favourites, shot a 69 to stand nine shots off the pace, while the Sergio Garcia-led Spanish team shot a 71 and would need to make up 14 shots on the leaders over the weekend.

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Tiger crash after row with wife

Tiger crash after row with wife

GOLF superstar Tiger Woods was knocked out for six minutes and suffered face injuries in a 2am car crash after a bust-up with his wife.

The 33-year-old was pulled from the vehicle by Swedish model missus Elin Nordegren after hitting a fire hydrant and a tree close to their Florida home.

Crash scene... Tiger hit hydrant, left,
and tree, right, after leaving home

Elin, 29, heard the accident and is reported to have rushed out of the house with a golf club to smash out the back window and pull Tiger clear.

The world's highest-paid sportsman was drifting in and out of consciousness with his wife hovering over him when cops arrived.

Tiger had cuts on his lips and blood in his mouth.

Police gave him first aid until he was taken to hospital about ten minutes later.

Bust-up ... Tiger and Elin rowed

Sources said Tiger and beauty Elin had been arguing before the accident.

Reports in the US claim he has been cheating on her with party hostess Rachel Uchitel, 34.

Rachel is said to have followed Tiger around the world.

She was photographed at the same hotel where Tiger was staying while playing in the Australian Open.

Lawyers for the golfer have denied the allegations.

Tiger had not been wearing a seat belt when he crashed, shortly after pulling out of the driveway of his £15million home.

He smashed his face into the windscreen.

The air bags on his car, a Cadillac Escalade SUV, did not deploy, indicating he was travelling at a low speed.

PETE SAMSON

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Posted in: SPORTS

Tiger crash after row with wife

Tiger crash after row with wife

GOLF superstar Tiger Woods was knocked out for six minutes and suffered face injuries in a 2am car crash after a bust-up with his wife.

The 33-year-old was pulled from the vehicle by Swedish model missus Elin Nordegren after hitting a fire hydrant and a tree close to their Florida home.

Crash scene... Tiger hit hydrant, left,
and tree, right, after leaving home

Elin, 29, heard the accident and is reported to have rushed out of the house with a golf club to smash out the back window and pull Tiger clear.

The world's highest-paid sportsman was drifting in and out of consciousness with his wife hovering over him when cops arrived.

Tiger had cuts on his lips and blood in his mouth.

Police gave him first aid until he was taken to hospital about ten minutes later.

Bust-up ... Tiger and Elin rowed

Sources said Tiger and beauty Elin had been arguing before the accident.

Reports in the US claim he has been cheating on her with party hostess Rachel Uchitel, 34.

Rachel is said to have followed Tiger around the world.

She was photographed at the same hotel where Tiger was staying while playing in the Australian Open.

Lawyers for the golfer have denied the allegations.

Tiger had not been wearing a seat belt when he crashed, shortly after pulling out of the driveway of his £15million home.

He smashed his face into the windscreen.

The air bags on his car, a Cadillac Escalade SUV, did not deploy, indicating he was travelling at a low speed.

PETE SAMSON

Read more »

Posted in: SPORTS

Dubai debt crisis and its impact on India

The memories of last September, when a vicious spiral of rumors and relentless pressure from investors pushed Lehman Brothers to the brink, came to the fore on Friday with UAE announced to restructure Dubai World, an investment company

that spearheaded the emirate's breakneck growth.

On Wednesday, Dubai said it would reschedule debt on two state owned entities delay payments for six months.

By Thursday, rumors of a possible default on Dubai sovereign debt started to hit markets. The same day, the Dubai ruling family clarified concerns but credit default swaps reflecting the chances of a default kept rising.

The result was a sharp turn in sentiment which led to investors selling risk assets across equities, commodities and currencies and forcing regulators across the world including India to sit up and take notice.

"We shouldn't react to instant news like this. One lesson that we learnt from the (global financial) crisis is that we must study the developments and measure the extent of the problem and hence study the impact on India," said Dr D Subbarao, governor of RBI.

For India, the real impact from financial concerns in Dubai will be limited. Remittance flows from Dubai, which account for about 10 per cent of overall remittances, could see a slowdown in the short term.

Capital flows may see a mild reversal turning the equity and currency markets

volatile but corporate exposure to Dubai appears to be limited to a handful of realty and infrastructure companies.

And barring a few banks like Bank of Baroda which has operations in Dubai, the Indian banking sector seems relatively insulated.

But the Reserve Bank of India is not taking any chances and has asked all banks to submit a detailed report on exposures to Dubai.

While the macro economic impact on India and most other nations may be limited, the fear of a debt default from Dubai may end up being a much needed reality check for global investors, who seem to have forgotten one of the worst financial crises in history a little too fast.

Read more »

Dubai debt crisis and its impact on India

The memories of last September, when a vicious spiral of rumors and relentless pressure from investors pushed Lehman Brothers to the brink, came to the fore on Friday with UAE announced to restructure Dubai World, an investment company

that spearheaded the emirate's breakneck growth.

On Wednesday, Dubai said it would reschedule debt on two state owned entities delay payments for six months.

By Thursday, rumors of a possible default on Dubai sovereign debt started to hit markets. The same day, the Dubai ruling family clarified concerns but credit default swaps reflecting the chances of a default kept rising.

The result was a sharp turn in sentiment which led to investors selling risk assets across equities, commodities and currencies and forcing regulators across the world including India to sit up and take notice.

"We shouldn't react to instant news like this. One lesson that we learnt from the (global financial) crisis is that we must study the developments and measure the extent of the problem and hence study the impact on India," said Dr D Subbarao, governor of RBI.

For India, the real impact from financial concerns in Dubai will be limited. Remittance flows from Dubai, which account for about 10 per cent of overall remittances, could see a slowdown in the short term.

Capital flows may see a mild reversal turning the equity and currency markets

volatile but corporate exposure to Dubai appears to be limited to a handful of realty and infrastructure companies.

And barring a few banks like Bank of Baroda which has operations in Dubai, the Indian banking sector seems relatively insulated.

But the Reserve Bank of India is not taking any chances and has asked all banks to submit a detailed report on exposures to Dubai.

While the macro economic impact on India and most other nations may be limited, the fear of a debt default from Dubai may end up being a much needed reality check for global investors, who seem to have forgotten one of the worst financial crises in history a little too fast.

Read more »

Dubai debt crisis may hit Indians hard

Reacting cautiously to the financial crisis in the United Arab Emirates, caused by the debt repayment crisis of Dubai World, the Indian financial establishment on Friday said there was no visible impact of the shock as of now.

But there are fears that thousands of Indian expatriates in the Gulf could lose their jobs.

This has left thousands of Indian families worried, as the region accounts for half of the country’s $25-billion remittances. Gulf countries employ five million Indians, out of the 25 million total strength of the Indian diaspora in 130 countries, and Dubai being a key driver of the region’s economy, a shakeout there is seen unsettling the job market – and the incomes of relatives.”

“The Middle East meltdown has been there for the past one year. People have been coming back to India for the past one year,” said E Balaji, director of a leading headhunting firm, Ma Foi Management Consultants. “Now, there will be at least 25 percent contraction in the job market.”

The Indian stock market lost over 600 points initially, but recovered sharply to end with a 223-point loss as reassuring sentiments expressed by corporates, the finance and commerce ministries as also the RBI helped control the erosion.
While the government exuded confidence that the crisis, which pulled down stock markets across the globe, should not have any major impact on employment and exports, the RBI said that developments and the extent of the problem need to be studied.

Having asked his subordinates to study the impact and make necessary recommendations, RBI Governor D Subbarao said: “We should not react to instant news like this. One lesson that we learnt from the (global financial) crisis is that we must study the developments , measure the extent of the problem and hence study the impact on India.” The debt crisis in Dubai, Prime Minister’s Economic Advisory Council (PMEAC) chairman C Rangarajan said, might slow down remittances but would not have any impact on country’s growth.

Commerce Minister Anand Sharma said “the Indian real estate is doing well.”
Major real estate players like DLF, Unitech, Parsvnath Developers and Emaar MGF all said they had no exposure in Dubai, although Delhi-based Omaxe said it has an exposure of Rs 40 crore, which it has already asked for refund.

“Indian property market is very robust and largely dominated by internal demand. So there will be no adverse impact on us,” DLF Executive Director Rajiv Talwar said. The Dubai government promptly promised to pump in all necessary resources for success of Dubai World.

Read more »

Dubai debt crisis may hit Indians hard

Reacting cautiously to the financial crisis in the United Arab Emirates, caused by the debt repayment crisis of Dubai World, the Indian financial establishment on Friday said there was no visible impact of the shock as of now.

But there are fears that thousands of Indian expatriates in the Gulf could lose their jobs.

This has left thousands of Indian families worried, as the region accounts for half of the country’s $25-billion remittances. Gulf countries employ five million Indians, out of the 25 million total strength of the Indian diaspora in 130 countries, and Dubai being a key driver of the region’s economy, a shakeout there is seen unsettling the job market – and the incomes of relatives.”

“The Middle East meltdown has been there for the past one year. People have been coming back to India for the past one year,” said E Balaji, director of a leading headhunting firm, Ma Foi Management Consultants. “Now, there will be at least 25 percent contraction in the job market.”

The Indian stock market lost over 600 points initially, but recovered sharply to end with a 223-point loss as reassuring sentiments expressed by corporates, the finance and commerce ministries as also the RBI helped control the erosion.
While the government exuded confidence that the crisis, which pulled down stock markets across the globe, should not have any major impact on employment and exports, the RBI said that developments and the extent of the problem need to be studied.

Having asked his subordinates to study the impact and make necessary recommendations, RBI Governor D Subbarao said: “We should not react to instant news like this. One lesson that we learnt from the (global financial) crisis is that we must study the developments , measure the extent of the problem and hence study the impact on India.” The debt crisis in Dubai, Prime Minister’s Economic Advisory Council (PMEAC) chairman C Rangarajan said, might slow down remittances but would not have any impact on country’s growth.

Commerce Minister Anand Sharma said “the Indian real estate is doing well.”
Major real estate players like DLF, Unitech, Parsvnath Developers and Emaar MGF all said they had no exposure in Dubai, although Delhi-based Omaxe said it has an exposure of Rs 40 crore, which it has already asked for refund.

“Indian property market is very robust and largely dominated by internal demand. So there will be no adverse impact on us,” DLF Executive Director Rajiv Talwar said. The Dubai government promptly promised to pump in all necessary resources for success of Dubai World.

Read more »

Dubai debt crisis rattles recovery

The Finance Ministry today said it did not expect the Dubai debt crisis to impact remittances to India, or affect the real estate sector in the country. RBI said it was studying the fallout of the developments, and would ask banks to furnish details of their exposure to Dubai World, the state investment company at the centre of the crisis.

The crisis spooked markets across Asia Friday. The Sensex sank over 600 points mid-session before recovering to end the day at 16,632.01, down 222.92 points. Hong Kong dived 4.8 per cent, and major indices in Tokyo, Taipei and Seoul fell over 3 per cent each. Late Friday night India time, however, European shares had closed higher and US stocks pared initial losses.

The Dubai government announced Wednesday that it was requesting creditors for a “standstill” on paying back until May 2010 some of the $60-billion debt of Dubai World and its real estate arm, Nakheel. The default request sent shockwaves through the financial world. Nakheel has a roughly $3.5 billion Islamic bond due in December.

In New Delhi, asked if Dubai’s ripples could reach India, Commerce and Industry Minister Anand Sharma said, “I don’t think... developments in real estate sector in Dubai are going to impact (India)... Besides, Indian real estate is doing well.”

Asked if Indian exports to West Asia could be impacted, Sharma told reporters, “I hope not.”

Also in Delhi, Finance Secretary Ashok Chawla said it was “somewhat unlikely” that remittances from the Gulf might be hit.

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Dubai debt crisis rattles recovery

The Finance Ministry today said it did not expect the Dubai debt crisis to impact remittances to India, or affect the real estate sector in the country. RBI said it was studying the fallout of the developments, and would ask banks to furnish details of their exposure to Dubai World, the state investment company at the centre of the crisis.

The crisis spooked markets across Asia Friday. The Sensex sank over 600 points mid-session before recovering to end the day at 16,632.01, down 222.92 points. Hong Kong dived 4.8 per cent, and major indices in Tokyo, Taipei and Seoul fell over 3 per cent each. Late Friday night India time, however, European shares had closed higher and US stocks pared initial losses.

The Dubai government announced Wednesday that it was requesting creditors for a “standstill” on paying back until May 2010 some of the $60-billion debt of Dubai World and its real estate arm, Nakheel. The default request sent shockwaves through the financial world. Nakheel has a roughly $3.5 billion Islamic bond due in December.

In New Delhi, asked if Dubai’s ripples could reach India, Commerce and Industry Minister Anand Sharma said, “I don’t think... developments in real estate sector in Dubai are going to impact (India)... Besides, Indian real estate is doing well.”

Asked if Indian exports to West Asia could be impacted, Sharma told reporters, “I hope not.”

Also in Delhi, Finance Secretary Ashok Chawla said it was “somewhat unlikely” that remittances from the Gulf might be hit.

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Jackson's glove sells for $350,000 at auction

NEW YORK (Reuters) - Michael Jackson's famous white glove sold for $350,000 at a memorabilia auction on Saturday, soaring far past pre-sale estimates, while a black jacket he wore during a 1989 world tour fetched $225,000.

The Jackson memorabilia was the highlight of an auction of hundreds of rock'n'roll items, including many not associated with the "King of Pop," who died in June.

Darren Julien, CEO of Julien's Auctions, which ran the auction, called the glove "the Holy Grail of Michael Jackson," and many expected it to sell for far more than its pre-sale estimate of about $50,000.

With the added commission, the final price excluding taxes, ran to some $420,000.

The buyer was Hong Kong businessman Hoffman Ma.

Bidding for the black, strap and zipper-laden jacket Jackson wore during the 1989 "Bad" tour soared to $225,000, more than 20 times its estimate. With commission, the tab came to about $275,000.

Fans and dealers turned out at the Hard Rock Cafe in New York's Times Square for the sale that included a car driven by Jackson, as well as David Bowie's guitar and memorabilia from the Beatles to Bo Diddley.

"I never got to see Michael, and now that he's gone this is the closest I could get," said Jazmynn Moore, 19, a student from Manhattan.

The glove was worn by Jackson when he first staged the famous moonwalk dance at the 1983 Motown 25 television special. The opening bid of $10,000 leaped immediately to $120,000 before peaking at $350,000.

Most of the 80 Jackson lots consisted of items that came from friends and family to whom Jackson had given them, the auctioneer said.

Jackson was somewhat of a collector himself, having paid more than $1.5 million for the "Gone With the Wind" best picture Oscar statue at Sotheby's auction, one of the highest prices ever paid for memorabilia at auction.

The auction house had valued the Jackson collection at $80,000 to $100,000. But Julien said such pre-auction estimates were intentionally conservative to help generate interest. Many of Jackson's items sold for 10, or even more than 20 times the estimates.

Julien's had been preparing for a huge auction of Jackson memorabilia in April that was canceled after an agreement with Jackson, who had filed a lawsuit demanding the return of certain items.

During the promotion for that sale, Julien's had amassed a large database of Jackson collectors from Asia to the Americas, and many of the winning Internet bidders were from Japan or Hong Kong.

Chris Michaud

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Jackson's glove sells for $350,000 at auction

NEW YORK (Reuters) - Michael Jackson's famous white glove sold for $350,000 at a memorabilia auction on Saturday, soaring far past pre-sale estimates, while a black jacket he wore during a 1989 world tour fetched $225,000.

The Jackson memorabilia was the highlight of an auction of hundreds of rock'n'roll items, including many not associated with the "King of Pop," who died in June.

Darren Julien, CEO of Julien's Auctions, which ran the auction, called the glove "the Holy Grail of Michael Jackson," and many expected it to sell for far more than its pre-sale estimate of about $50,000.

With the added commission, the final price excluding taxes, ran to some $420,000.

The buyer was Hong Kong businessman Hoffman Ma.

Bidding for the black, strap and zipper-laden jacket Jackson wore during the 1989 "Bad" tour soared to $225,000, more than 20 times its estimate. With commission, the tab came to about $275,000.

Fans and dealers turned out at the Hard Rock Cafe in New York's Times Square for the sale that included a car driven by Jackson, as well as David Bowie's guitar and memorabilia from the Beatles to Bo Diddley.

"I never got to see Michael, and now that he's gone this is the closest I could get," said Jazmynn Moore, 19, a student from Manhattan.

The glove was worn by Jackson when he first staged the famous moonwalk dance at the 1983 Motown 25 television special. The opening bid of $10,000 leaped immediately to $120,000 before peaking at $350,000.

Most of the 80 Jackson lots consisted of items that came from friends and family to whom Jackson had given them, the auctioneer said.

Jackson was somewhat of a collector himself, having paid more than $1.5 million for the "Gone With the Wind" best picture Oscar statue at Sotheby's auction, one of the highest prices ever paid for memorabilia at auction.

The auction house had valued the Jackson collection at $80,000 to $100,000. But Julien said such pre-auction estimates were intentionally conservative to help generate interest. Many of Jackson's items sold for 10, or even more than 20 times the estimates.

Julien's had been preparing for a huge auction of Jackson memorabilia in April that was canceled after an agreement with Jackson, who had filed a lawsuit demanding the return of certain items.

During the promotion for that sale, Julien's had amassed a large database of Jackson collectors from Asia to the Americas, and many of the winning Internet bidders were from Japan or Hong Kong.

Chris Michaud

Read more »

Swine flu may have hit one peak; more to come

WASHINGTON (Reuters) - The pandemic of swine flu may be hitting a peak in the Northern Hemisphere, global health officials said on Friday, but they cautioned it was far from over.

Officials also said they were investigating several troubling outbreaks of drug-resistant H1N1 but noted they were limited so far and that there were no indications yet the virus was mutating in a sustained way.

The World Health Organization said H1N1 flu was moving eastward across Europe and Asia after appearing to peak in parts of Western Europe and the United States.

At least 6,770 deaths have been recorded worldwide since the swine flu virus emerged in April -- but officials always stress the confirmed count represents only a fraction of the actual cases, as most patients never get tested.

There are "early signs of a peak in disease activity in some areas of the northern hemisphere," the WHO said in a statement.

Transmission keeps intensifying in Canada, with the highest number of doctor visits by children. But U.S. officials saw signs of a slowdown.

SOME DECLINES

"We are beginning to see some declines in flu activity around the country but there is still a lot of influenza," the Centers for Disease Control and Prevention's Dr. Anne Schuchat told a news conference.

"It is still much greater than we would normally see this time of year."

A team at flu test maker Quest Diagnostics analyzed 142,000 U.S. flu tests and found a similar pattern, with tests showing a decline in flu-like illness since October 27.

WHO said Norway and countries farther east including Georgia, Lithuania, Moldova and Serbia were reporting sharp increases in influenza-like illness or acute respiratory infection.

Kazakhstan, Uzbekistan and parts of Afghanistan -- particularly the capital, Kabul -- are reporting higher numbers of flu cases. Israel is also reporting sharp increases.

"Essentially what is happening is that it is spreading eastward," Anthony Mounts of WHO's influenza team told Reuters. "Typically, seasonal influenza always starts west and moves eastward. It seems to be following that pattern except it is coming very early this year."

Influenza can hit several peaks in a single season. Experts said weeks or months more of disease could be expected and noted that during the 1957 pandemic, a busy autumn was followed by a lull and then infections surged again starting in January.

Vaccination campaigns are beginning in many countries but companies reported some trouble making vaccine from the H1N1 virus. The United States was still struggling to distribute vaccines but Canadian Health Minister Leona Aglukkaq said enough vaccine for almost half of Canada's population would have been shipped out by the end of the next week.

British health officials said they were investigating the likely person-to-person spread of a drug-resistant strain of swine flu.

The Health Protection Agency reported five confirmed cases in Wales of patients infected with H1N1 resistant Roche AG and Gilead Sciences Inc's antiviral drug Tamiflu.

Another antiviral, GlaxoSmithKline and Biota Inc's Relenza, were effective in the patients, the HPA said.

The patients had serious conditions that suppressed their immune systems, which can give the virus a better than usual opportunity to develop resistance, the HPA added.

U.S. CDC officials also said they were investigating four cases of H1N1 resistant to Tamiflu at Duke University hospital in North Carolina. "All four patients were very ill with underlying severely compromised immune systems and multiple other complex medical conditions," Duke said in a statement.

Health experts are looking for any sign that H1N1 is mutating into a drug-resistant form. Last year, the seasonal version of H1N1, a distant cousin of the pandemic strain, developed resistance to Tamiflu.

In Norway, officials were investigating a mutated strain in some patients that they said could be responsible for causing severe symptoms.

"The mutation could be affecting the virus' ability to go deeper into the respiratory system, thus causing more serious illness," the Norwegian Institute of Public Health said in a statement.

WHO said the mutation did not appear to be widespread in Norway and the virus remained sensitive to antivirals and pandemic vaccines.

A similar mutation had been detected in H1N1 viruses in several other countries, including China and the United States, in severe as well as in some mild cases, it said.

Maggie Fox

Read more »

Swine flu may have hit one peak; more to come

WASHINGTON (Reuters) - The pandemic of swine flu may be hitting a peak in the Northern Hemisphere, global health officials said on Friday, but they cautioned it was far from over.

Officials also said they were investigating several troubling outbreaks of drug-resistant H1N1 but noted they were limited so far and that there were no indications yet the virus was mutating in a sustained way.

The World Health Organization said H1N1 flu was moving eastward across Europe and Asia after appearing to peak in parts of Western Europe and the United States.

At least 6,770 deaths have been recorded worldwide since the swine flu virus emerged in April -- but officials always stress the confirmed count represents only a fraction of the actual cases, as most patients never get tested.

There are "early signs of a peak in disease activity in some areas of the northern hemisphere," the WHO said in a statement.

Transmission keeps intensifying in Canada, with the highest number of doctor visits by children. But U.S. officials saw signs of a slowdown.

SOME DECLINES

"We are beginning to see some declines in flu activity around the country but there is still a lot of influenza," the Centers for Disease Control and Prevention's Dr. Anne Schuchat told a news conference.

"It is still much greater than we would normally see this time of year."

A team at flu test maker Quest Diagnostics analyzed 142,000 U.S. flu tests and found a similar pattern, with tests showing a decline in flu-like illness since October 27.

WHO said Norway and countries farther east including Georgia, Lithuania, Moldova and Serbia were reporting sharp increases in influenza-like illness or acute respiratory infection.

Kazakhstan, Uzbekistan and parts of Afghanistan -- particularly the capital, Kabul -- are reporting higher numbers of flu cases. Israel is also reporting sharp increases.

"Essentially what is happening is that it is spreading eastward," Anthony Mounts of WHO's influenza team told Reuters. "Typically, seasonal influenza always starts west and moves eastward. It seems to be following that pattern except it is coming very early this year."

Influenza can hit several peaks in a single season. Experts said weeks or months more of disease could be expected and noted that during the 1957 pandemic, a busy autumn was followed by a lull and then infections surged again starting in January.

Vaccination campaigns are beginning in many countries but companies reported some trouble making vaccine from the H1N1 virus. The United States was still struggling to distribute vaccines but Canadian Health Minister Leona Aglukkaq said enough vaccine for almost half of Canada's population would have been shipped out by the end of the next week.

British health officials said they were investigating the likely person-to-person spread of a drug-resistant strain of swine flu.

The Health Protection Agency reported five confirmed cases in Wales of patients infected with H1N1 resistant Roche AG and Gilead Sciences Inc's antiviral drug Tamiflu.

Another antiviral, GlaxoSmithKline and Biota Inc's Relenza, were effective in the patients, the HPA said.

The patients had serious conditions that suppressed their immune systems, which can give the virus a better than usual opportunity to develop resistance, the HPA added.

U.S. CDC officials also said they were investigating four cases of H1N1 resistant to Tamiflu at Duke University hospital in North Carolina. "All four patients were very ill with underlying severely compromised immune systems and multiple other complex medical conditions," Duke said in a statement.

Health experts are looking for any sign that H1N1 is mutating into a drug-resistant form. Last year, the seasonal version of H1N1, a distant cousin of the pandemic strain, developed resistance to Tamiflu.

In Norway, officials were investigating a mutated strain in some patients that they said could be responsible for causing severe symptoms.

"The mutation could be affecting the virus' ability to go deeper into the respiratory system, thus causing more serious illness," the Norwegian Institute of Public Health said in a statement.

WHO said the mutation did not appear to be widespread in Norway and the virus remained sensitive to antivirals and pandemic vaccines.

A similar mutation had been detected in H1N1 viruses in several other countries, including China and the United States, in severe as well as in some mild cases, it said.

Maggie Fox

Read more »

China mine explosion death toll reaches 87

HEGANG, China (Reuters) - The death toll from China's latest coal mine disaster reached 87 as hopes dimmed on Sunday that more survivors would be found a day after a gas blast at a colliery in the country's icy far northeast.

Xinhua news agency reported 528 workers were in the mine, at Hegang in Heilongjiang province, at the time of the blast, and 420 had been rescued by Sunday.

Some 21 miners remained trapped or unaccounted for, Zhang Jinguang, a spokesman for the mine company, told reporters, who were taken by officials to see 20 or so rescue workers descending into a tunnel still belching smoke. By later on Sunday, none of the 21 had been found, Xinhua reported.

Zhang Fucheng, an official in charge of rescue efforts, told Chinese television that efforts were held up by dense gas and collapsed tunnels. Temperatures were near freezing.

The blast was the latest accident to hit the world's deadliest major coal mining industry. The explosion was so violent it shook the surrounding area and nearby buildings partly collapsed.

Some of the survivors were badly injured.

"When I saw my husband, this mess of blood and flesh, I didn't recognize him at first," said Huang Guizhen, the wife of injured miner Qu Zhongliang, a Heilongjiang province news website (www.northeast.com.cn) reported.

"Then the doctor told me it was my husband and I burst into tears."

Compared to other manual jobs, Chinese coal miners can earn relatively high wages, tempting workers and farmers into rickety and poorly ventilated shafts.

Safety staff knew gas in the mine had reached dangerous levels and were rushing to evacuate the miners when the blast erupted 500 meters (1,500 feet) below ground, the website report also said, citing workers at the mine.

Central government prosecutors went to Hegang to oversee investigations into any possible crimes or official misconduct behind the blast, the China News Service reported.Zhang Jinguang, the mine spokesman, told Reuters that "as far as I know, there were no signs (of the accident beforehand)."Police in Hegang kept a close eye on locals near the mine, and people organized by the government sought to prevent reporters speaking to residents. "There's no hope," said one resident who said two friends were victims of the blast.

Maxim Duncan

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China mine explosion death toll reaches 87

HEGANG, China (Reuters) - The death toll from China's latest coal mine disaster reached 87 as hopes dimmed on Sunday that more survivors would be found a day after a gas blast at a colliery in the country's icy far northeast.

Xinhua news agency reported 528 workers were in the mine, at Hegang in Heilongjiang province, at the time of the blast, and 420 had been rescued by Sunday.

Some 21 miners remained trapped or unaccounted for, Zhang Jinguang, a spokesman for the mine company, told reporters, who were taken by officials to see 20 or so rescue workers descending into a tunnel still belching smoke. By later on Sunday, none of the 21 had been found, Xinhua reported.

Zhang Fucheng, an official in charge of rescue efforts, told Chinese television that efforts were held up by dense gas and collapsed tunnels. Temperatures were near freezing.

The blast was the latest accident to hit the world's deadliest major coal mining industry. The explosion was so violent it shook the surrounding area and nearby buildings partly collapsed.

Some of the survivors were badly injured.

"When I saw my husband, this mess of blood and flesh, I didn't recognize him at first," said Huang Guizhen, the wife of injured miner Qu Zhongliang, a Heilongjiang province news website (www.northeast.com.cn) reported.

"Then the doctor told me it was my husband and I burst into tears."

Compared to other manual jobs, Chinese coal miners can earn relatively high wages, tempting workers and farmers into rickety and poorly ventilated shafts.

Safety staff knew gas in the mine had reached dangerous levels and were rushing to evacuate the miners when the blast erupted 500 meters (1,500 feet) below ground, the website report also said, citing workers at the mine.

Central government prosecutors went to Hegang to oversee investigations into any possible crimes or official misconduct behind the blast, the China News Service reported.Zhang Jinguang, the mine spokesman, told Reuters that "as far as I know, there were no signs (of the accident beforehand)."Police in Hegang kept a close eye on locals near the mine, and people organized by the government sought to prevent reporters speaking to residents. "There's no hope," said one resident who said two friends were victims of the blast.

Maxim Duncan

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India ‘alive’ to security challenges

India’s minister of home affairs has sought, ahead of the first anniversary of last year’s terror attacks in Mumbai, to reassure international business leaders that the country’s security challenges will not affect its growth.

On the last day of the World Economic Forum meeting in New Delhi, Palaniappan Chidambaram said the “clipping rate” of India’s economic growth had created “deep divisions within society”.

However, the minister assured executives that the government was “alive” to the domestic and international security challenges it faced.

India’s most serious internal security threat comes from Maoist rebels, known as Naxalites, who have taken over resource-rich areas where state governance is weak. Mr Chidambaram said he was not asking Naxalites to lay down their arms, but that the government was prepared to talk.

Rs730bn ($15.5bn, €10.5bn, £9.4bn) of India’s stimulus plan has been set aside for an ambitious road infrastructure plan in Naxalite-occupied states such as Madhya Pradesh. Last week the minister of road transport and highways, Shri Kamal Nath, told a meeting of ministers in New Delhi that illegal occupants of the land would be dealt with in a “fierce manner”.

Mr Chidambaram also said that, since the attacks on Mumbai last November, the Indian government had increased its intelligence capacity as well as its police force.

India is facing pressure to commit to its promises of building up needed infrastructure for foreign companies to enter the domestic market. Carlos Ghosn, Renault and Nissan chief executive, told WEF participants that India now needed to “execute its plans” so that growth would follow.

Mr Chidambaram also noted that the security issue in India’s north eastern border states, where tribal groups are fighting for independence, were, “by and large, under control”.

Alexandra Stevenson

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India ‘alive’ to security challenges

India’s minister of home affairs has sought, ahead of the first anniversary of last year’s terror attacks in Mumbai, to reassure international business leaders that the country’s security challenges will not affect its growth.

On the last day of the World Economic Forum meeting in New Delhi, Palaniappan Chidambaram said the “clipping rate” of India’s economic growth had created “deep divisions within society”.

However, the minister assured executives that the government was “alive” to the domestic and international security challenges it faced.

India’s most serious internal security threat comes from Maoist rebels, known as Naxalites, who have taken over resource-rich areas where state governance is weak. Mr Chidambaram said he was not asking Naxalites to lay down their arms, but that the government was prepared to talk.

Rs730bn ($15.5bn, €10.5bn, £9.4bn) of India’s stimulus plan has been set aside for an ambitious road infrastructure plan in Naxalite-occupied states such as Madhya Pradesh. Last week the minister of road transport and highways, Shri Kamal Nath, told a meeting of ministers in New Delhi that illegal occupants of the land would be dealt with in a “fierce manner”.

Mr Chidambaram also said that, since the attacks on Mumbai last November, the Indian government had increased its intelligence capacity as well as its police force.

India is facing pressure to commit to its promises of building up needed infrastructure for foreign companies to enter the domestic market. Carlos Ghosn, Renault and Nissan chief executive, told WEF participants that India now needed to “execute its plans” so that growth would follow.

Mr Chidambaram also noted that the security issue in India’s north eastern border states, where tribal groups are fighting for independence, were, “by and large, under control”.

Alexandra Stevenson

Read more »

'Indian software industry will hold out against competition'

New Delhi, Nov 15 (IANS) The $60-billion information technology industry in India will continue to attract overseas business, despite competition from other emerging markets that also offer lower costs, says the India head of global software giant Computer Associates.

'Our costs will still be competitive. There are markets like China, Singapore, and the Philippines which offer lower costs. But they are not in the same league as India,' said the software gian't India chairman Saurabh Srivastava.

'China has an issue with language, a lot of other countries don't have the same levels of competency and, moreover, a lot of them are still in process of learning business norms,' Srivastava, an industry veteran and noted venture capitalist, told IANS in an interview.

According to him, the average spending on information technology by a fair-sized firm was usually two percent of the entire budget. 'You will not risk saving on this two percent and endangering the rest of the 98 percent.'

Though the sector, which has been hit by the global financial crisis, will grow at a modest 4-7 percent this year, Srivastava contended a turnaround should happen by next year when companies start loosening their purse strings.

'You may not see the 30 percent growth rates of the past. But for the next few years, the growth certainly would be in the range of 15-20 percent,' said the alumnus of the Indian Institute of Technology (IIT) at Kanpur and Harvard University.

Co-founder of such companies as software major IIS Infotech and venture capital fund Infinity Ventures, Srivastava is not quite perturbed by the slowdown in the business. In fact, he is optimistic about the trajectory of the Indian IT growth story.

'We will grow from the current $50 billion to about $200 billion by 2020. However, companies will need to shift their stance and become more focused on intellectual property and have an increased global presence.'

According to him, Indian educational institutions will also have to produce quality graduates to fuel this growth rather than creating thousands of engineers whose knowledge and skill levels are, at best, mediocre.

'In India, there is an employability factor. There are engineers who pass from second string institutions, whose quality is low, and that is a problem,' said Srivastava, adding that 10 years down the line, big cities alone will not house global Indian firms.

'As infrastructure develops and connectivity increases, you will see IT companies set up shop in more tier-2 towns. But it's not just the cost factor that will drive this movement,' he said.

'Realty prices will be lower. It will be easier to retain talent. Folks in India like to live closer to home, not always possible in large cities,' said Srivastava, founding member of the National Association of Software and Services Companies (Nasscom).

James Jose

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'Indian software industry will hold out against competition'

New Delhi, Nov 15 (IANS) The $60-billion information technology industry in India will continue to attract overseas business, despite competition from other emerging markets that also offer lower costs, says the India head of global software giant Computer Associates.

'Our costs will still be competitive. There are markets like China, Singapore, and the Philippines which offer lower costs. But they are not in the same league as India,' said the software gian't India chairman Saurabh Srivastava.

'China has an issue with language, a lot of other countries don't have the same levels of competency and, moreover, a lot of them are still in process of learning business norms,' Srivastava, an industry veteran and noted venture capitalist, told IANS in an interview.

According to him, the average spending on information technology by a fair-sized firm was usually two percent of the entire budget. 'You will not risk saving on this two percent and endangering the rest of the 98 percent.'

Though the sector, which has been hit by the global financial crisis, will grow at a modest 4-7 percent this year, Srivastava contended a turnaround should happen by next year when companies start loosening their purse strings.

'You may not see the 30 percent growth rates of the past. But for the next few years, the growth certainly would be in the range of 15-20 percent,' said the alumnus of the Indian Institute of Technology (IIT) at Kanpur and Harvard University.

Co-founder of such companies as software major IIS Infotech and venture capital fund Infinity Ventures, Srivastava is not quite perturbed by the slowdown in the business. In fact, he is optimistic about the trajectory of the Indian IT growth story.

'We will grow from the current $50 billion to about $200 billion by 2020. However, companies will need to shift their stance and become more focused on intellectual property and have an increased global presence.'

According to him, Indian educational institutions will also have to produce quality graduates to fuel this growth rather than creating thousands of engineers whose knowledge and skill levels are, at best, mediocre.

'In India, there is an employability factor. There are engineers who pass from second string institutions, whose quality is low, and that is a problem,' said Srivastava, adding that 10 years down the line, big cities alone will not house global Indian firms.

'As infrastructure develops and connectivity increases, you will see IT companies set up shop in more tier-2 towns. But it's not just the cost factor that will drive this movement,' he said.

'Realty prices will be lower. It will be easier to retain talent. Folks in India like to live closer to home, not always possible in large cities,' said Srivastava, founding member of the National Association of Software and Services Companies (Nasscom).

James Jose

Read more »

Cyclone Phyan: 250 TN fishermen still missing

Chennai: Cyclone Phyan may have crossed India's west coast ‘peacefully’ on Wednesday but several hundred fishermen are still reported to be missing.

Reports said on Saturday that nearly 250 fishermen, who ventured into the sea in rough weather from Tamil Nadu’s Kanyakumari district, have still not returned three days after the cyclone brought heavy rains along the country’s west coast.
The fishermen hail from six villages in Kanyakumari district. The Coast Guard have dispatched boats

and choppers to search for the missing fishermen.

Around 1,000 fishermen from Kanyakumari had gone to the Arabian Sea from November 1 onwards for fishing off the Kerala and Gujarat coasts.

The Tamil Nadu government had yesterday assured of the safety of the fishermen.

Assuring the distressed families of the fishermen, the Tamil Nadu government said the Coast Guard has been asked to help in rescuing the fishermen in the high seas.

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Posted in: National News