The Business Blog
Read biographyThe Business Blog is a daily business blog anchored by Firstpost senior editors. It will offer quick comments and insights into major business news developments from the pink press.
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Subbarao isn’t an isolated hawk on inflation anymore
By R Jagannathan Almost exactly a year ago, Duvvuri Subbarao was seen as the lone hawk on monetary policy. Today, thanks to the government’s fiscal incompetence, the doves have metamorphosed into hawks on inflation. According to the minutes of the Technical Advisory Committee (TAC) released by the Reserve Bank of India #D. Subbarao #fiscal deficit #Inflation #Monetary policy
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Psst, the euro is dying. And the countdown has begun
By R Jagannathan We may be entering the endgame on the euro. Events and statements over the last two weeks suggest that the chances are now more than 50:50 that the common currency will see some exits, if not a disorderly wind-up altogether. Reason: the big powers are fighting and many are #Euro #Eurozone crisis #Grexit
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Inflation is down, not out; expect a surge later this year
The good news is that there is no bad news in Tuesday’s wholesale price index (WPI) number, which shows a fall from 7.25 percent to 6.87 percent. The bad news is that the good news is not for real. The price fall is not happening for the right reasons. July’s #Inflation #RBI Rate Cuts #WPI
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Irda is about to give LIC, govt a free ticket to imprudence
By R Jagannathan Why are regulators rushing to help the government when their first job is to protect investors? Early this year, when Pranab Mukherjee was scrounging around for revenues to finance his gaping budget hole, Sebi rushed in to create a new window for disinvestment called ‘offer for sale through #Corporate governance #Irda #LIC #Regulator Watch #SEBI
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Mr Chidambaram, don’t screw savers to help yourself!
In his first media appearance after taking over as finance minister, Palaniappan Chidambaram made a startling comment about interest rates that makes one doubt his credentials as a reformer. Chidambaram said: “Interest rates inhibit the investor and are a burden on every class of borrowers. Sometimes, it is necessary to #Interest rates #OnTheContrary #Savers Vs Borrowers
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Meet the new Chidambaram: Are you happy? he asks staff
If a popularity contest were to be held for politicians, Palaniappan Chidambaram would not figure anywhere in the top half, one can be sure. Often labeled as arrogant or curt, UPA’s newest finance minister is a hard man to like. Of course, given that we are in a financial mess, #NorthBlock #P. Chidambaram
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After taxman and intel snoops, Sebi wants to tap your phone
That little something you thought you heard when you were calling your stockbroker may be Sebi listening in. Businessmen, market punters and investors beware. To the long list of government agencies that are already entitled to tap your phone, you can now probably add market watchdog Sebi. The conviction of former #privacy #SEBI #Short Points #Wire-Tapping
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Telenor and Unitech: How to auction a divorce plan
By R Jagannathan Why would any company sell its own business in the hope that no one else will buy it and it can then buy it back? But this is what Uninor, the 67:33 joint venture between Norwegian Telenor and Unitech Wireless, is doing, over the loud protests of the #Telenor #Uninor #Unitech
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We will be bled dry in two years, warns ONGC chief
By R Jagannathan The government’s milch cow is mooing plaintively. The Oil and Natural Gas Corporation (ONGC), the public sector energy giant that is being bled continuously to pay for the UPA’s re-election agenda by maintaining high oil subsidies, has let out a loud wail saying in two years it will be #coal india #Oil subsidies #ONGC
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Oil cos’ profits are largely fiction: It’s done with mirrors
By R Jagannathan Should companies be declaring profits on the basis of promises of debtors rather than the actual receipt of cash in the bank account? Accountants will, of course, say yes, for accrued income is the basis on which all balance-sheets are prepared. However, when debtors fail to pay up for months #BPCL #Cooking The Books #Corporate governance #HPCL #IOC #Oil subsidies #OMCs