Indian Current Affairs: 15.07.2008

Look at this graphic that appeared in today’s ET; I am sure it will put you off forever from even giving a thought to managing the political fortunes of a party. If it doesn’t put you off, then my advice to you is that you should seriously consider quitting Civil Services preparation and jump headlong into a political career. It will be worth the effort.

InBev NV agreed to buy Anheuser- Busch Cos. in a $52 billion transaction that will make the Belgian company the top brewer in the world's five biggest beer markets. The combined company will exceed $36 billion in annual revenue, 85 percent more than InBev's 2007 sales.
InBev will surpass SABMiller as the world's top seller of alcoholic beverages with about 17 percent of the 174 billion- liter market after the purchase is completed later this year.

Look at these graphic details of the unending saga on the subprime front.
The US government has affirmed its intentions of bailing out Freddie Mac and Fannie Mae, which together hold or guarantee half the US mortgage debt. Federal officials again threw their support behind the government-sponsored enterprises; the Treasury pledged to expand its current line of credit to the two companies and the Federal Reserve said it will provide additional loans if needed.
Global banks and brokerages have already written down nearly $300 billion in soured mortgage investments — a number projected to ultimately reach $1 trillion.
The banking industry was already dealt a severe blow in March when Bear Stearns nearly collapsed amid the evaporation of its liquidity. JPMorgan Chase & Co stepped in to purchase Bear Stearns in a deal orchestrated by the Federal Reserve. As the mortgages increasingly defaulted, the value of bonds backed by the troubled loans tumbled. After Bear collapsed, investment banks were given the opportunity to borrow directly from the Fed, an option that was previously only granted to retail banks.

The ministry of micro, small and medium enterprises (MSME) has floated a proposal under the MSME Development Act to ensure that all ministries and government departments source 15% of their procurement from small scale industries. At a time when many SSI segments have been opened up for large players, the move would act as a cushion to small scale industries.
If the proposal gets Cabinet nod, it will become mandatory for ministries and government-aided agencies to purchase from the SSI units. The biggest government procurers are the ministry of defence and railways. If they source 15% of their needs from SSI units, small industries will be in a better position to keep production rolling.

It was just yesterday that we noted something about this debate in Discover It blog.
Take a look at two reasons as to why easing FII inflows at the present context is bad:
In spite of the relaxation in ECB norms, they have not been allowed to balloon out of proportion because of the stringent conditions — relating to the minimum maturity period, rate of interest, end-use, etc.
All our efforts at the present juncture, when inflation has hit a 13-year high of 11.89%, should be directed at cooling demand pressures. In a scenario where interest rates have been hiked to tackle inflation and as a result there is a huge arbitrage opportunity for foreign investors looking to make easy money, opening the floodgates to further inflows of debt capital would be short-sighted and self-defeating.

The idea of a windfall tax on private sector oil companies is preposterous and brazen, given its political context in New Delhi.
Singling out industry sectors and corporates to pay up arbitrary and wholly questionable taxes just makes no sense. It would thoroughly dampen investor confidence, slash funds for reinvestment and plough back, and quite needlessly stultify markets, enterprise and growth.
It would also be a perverse incentive for mis-declaring profits, which in turn could lead to capital flight and affect governmental revenues.
Besides, if it can be kosher to slap an illogical tax on oil, a similar levy for steel or software solutions or banking — indeed any other sector — can also be deemed legitimate! We might as well do away with the rule of law.

I was left wondering what is meant by this word in this sentence: “At one end, we had our Prime Minister, almost echolalic in his protestations, and at the other the Left immaculately ideological in a throw back role to the sixties.”
It means: the often pathological repetition of what is said by other people as if echoing them.

One of the important elements of the strategic management theory defined by Ellen-Earle Chaffee (1985) is to adapt the organisation to its business environment.

I remember some of you asking me to explain the components of invisible receipts, while looking at our budget figures.

Oct 2006: Tests positive for nandrolone during the ICC Champions Trophy in India along with teammate Shoaib Akhtar and narrowly escapes a life ban.
Sept 2007: Is involved in a dressing room brawl with Shoaib Akhtar in South Africa during the World T20 event. Akhtar allegedly struck Asif with a bat and it forced the PCB to withdraw Shoaib from the event and fly him back home.
June 2008: Spends 19 days in the custody of Dubai police after he is caught with contraband drugs at Dubai airport when he was travelling from India to Pakistan.
July 2008: Is named by WADA for failing a dope Test while playing in the IPL for Delhi Daredevils.

Laurie Lever, a 60-year-old show jumper, will make his Olympics debut half a century after taking up horse riding following his inclusion in Australia’s equestrian team for Beijing Games. Lever, who began riding as a 10-year-old, will be the oldest member of Australia’s Olympics team and will take part in the jumping competition.
Lever will join another sexagenarian in the equestrian event in Hong Kong. Hiroshi Hoketsu, 67, is competing in his second Olympics for Japan in the dressage, 44 years after making his debut.
Swedish shooter Oscar Swahn was the oldest Olympian, winning a silver medal at the 1920 Antwerp Games at the age of 72 years and 10 months.

Fomer chief justice of India Yeshwant Vishnu Chandrachud, who was in the majority bench that decided in favour of the Indira Gandhi government in a landmark habeas corpus case during the Emergency, died on Monday due to prolonged illness at a city hospital in Mumbai. Chandrachud (88), who is the country’s longest-serving chief justice having served in that office between 1978 and 1985, breathed his last at a Mumbai Hospital.

Indian Current Affairs