23.06.2008

• The consequences of inflation on the SME (Small and Medium Enterprises) sector
• In a bid to tackle inflation, the RBI is expected to launch monetary tightening measures i.e., increase the repo rate (rate at which it lends money to banks). An increase in repo rate makes the banks pass on the lending rates to the borrowers. Thus bank lending rates are expected to increase. Currently the repo rate is at 8%.
• SMEs depend largely on bank borrowings unlike the big industries, which can rely on debt (debentures), quasi-debt instruments, overseas borrowings etc. Besides the latter have lot of negotiating clout with the banks for better interest rates. SMEs lack such negotiation prowess.
• The lack of alternatives such as quasi-debt instruments and overseas borrowings put SMEs at a disadvantage. So they end up getting adversely affected in times of high inflation.
• Is there a case for increasing deposit rates?
• Inflation, the rate of price rise, is considered as the scale at which the real value of the rupee erodes. Inflation is much higher than the maximum interest being paid on deposits by a bank or any government saving scheme, including PF (Provident Fund).
• The real rate of interest is defined as deposit rate minus the rate of inflation, which is over 11% for the week ended June 7.
• For those depending on earning from deposits, such as elderly people and pensioners, the real rate of interest on short term deposits has been negative for sometime now as inflation has been over 7% since March 22 this year.
• Provident fund (PF) trustees will press for increasing the interest rates on PF to at least 12% to prevent value erosion of deposits of over four crore government and nongovernment employees in the wake of soaring inflation.
• A very good graphic about the political calculus on nuclear deal
• Look at it here.
• A look at the hired car market
• According to the industry players, the taxi business is worth some Rs 9,000 crore with a total of 2,35,000 taxis plying the country’s roads.
• Why is red wine considered healthy?
• Red wine contains higher levels of antioxidants called polyphenols, which are said to lower cholesterol, protect heart and prevent cancer.
• Researchers have now developed a way to boost the anti-oxidant content of white wine, so that it has health benefits similar to red wine.
• Tax cuts failure to stimulate economy
• Tax cuts were supposed to stimulate savings and employment.
• When George Bush was elected, he claimed that tax cuts for the rich would cure all the economy’s ailments. The benefits of tax-cut-fuelled growth would trickle down to all — policies that have become fashionable in Europe and elsewhere, but that have failed.
• Even in the US, tax cuts did not result household savings going up; instead they have plummeted to zero. Similarly, labour force participation is lower than in the 1990s. What growth did occur benefited only the few at the top.
• Gates to leave Microsoft
• Bill Gates, a Harvard University dropout who ushered in the home computer age and made billions of dollars along the way will have his last official day of work at Microsoft on June 27. He founded Microsoft with friend Paul Allen in 1975.
• It’s not cricket alone; even Tennis at Wimbledon is plagued by betting
• More than £450 million was bet on Wimbledon matches last year through just one British internet site, Betfair. One player is on record saying he turned down a £70,000 offer to lose in the first round at Wimbledon. A first-round loser at Wimbledon takes home £10,250.
• More than the quantum of betting it is the allegations of match fixing that are raised by Betfair that is the cause for worry.
• Wimbledon chief executive Ian Ritchie played down the reports on illegal betting, saying that there was no hard evidence of match-fixing in professional tennis and no one had produced fresh allegations.
• Grand Prix racing
• Ferrari’s Felipe Massa won Formula One’s French Grand Prix at Magny-Cours.
• Remember our noting about the Svalbard global seed vault?
• Came across a good pic explaining about it. It is here. Take a look.
• Frederic Chopin
• The renowned 19th century Polish-French pianist and composer died at the age of 39, of what is believed to be tuberculosis. But leading Polish medical experts are betting that DNA tests on his heart — perfectly preserved in what appears to be cognac — could prove he suffered from cystic fibrosis.
• Cystic fibrosis is a genetic illness which clogs the lungs with excess thick and sticky mucus.
• On his untimely death, his heart was brought to Poland by his elder sister Ludwika from Paris. It is preserved in a crystal urn filled with alcohol in Warsaw’s sprawling and ornate baroque Church of the Holy Cross.
• Euro 2008 final stages
• On 25^th June Germany will play Turkey in one semi final and on 26^th June Russia will play Spain in the other semi final match.
• The final is slated for 29^th June.