19.07.2008

• Revenues are fine but profits are a worry
• So reads a head line in today’s ET. By reading the revenue and profit performance of just 120 companies that declared their quarterly results early, can a prediction about the performance of the economy be made?
• The paper claims that though the sample is small when compared with the thousands of listed companies, the initial trend does have a degree of reliability because a comparison of the results of these companies with the aggregate results for India Inc for the last few quarters shows a matching behaviour.
• Let’s hope the initial pointers of the trends are confirmed eventually.
• A change for the better in relations between Iran and the US?
• Washington and Tehran have no diplomatic relations since 1980.
• While the US accuses Iran of secretly trying to manufacture nuclear bombs – a feeling that appears to be shared largely by the western powers – Iran vehemently says that the nuclear programme is about creating just electricity.
• In the wake of the US announcement that it is willing to hold talks with Iran in Geneva on the subject and Iran’s prompt welcome of the move, all of a sudden the diplomatic heat between the two countries has showed signs of cooling. The US on its part has also said that it is ready to restore diplomatic relations with Iran. Both these are positive developments worth watching in the days and months to come.
• Stay glued.
• IP telephony and TRAI’s consultation process: BPO & ISP segments want unrestricted domestic IP telephony
• TRAI’s consultation process on Internet telephony has kicked off a hornet’s nest in the domestic BPO industry. After ISPs, it’s the Indian BPO industry which is demanding unrestricted domestic IP telephony. Companies say that by restricting interconnection and sharing of infrastructure between domestic and international BPOs, the industry is becoming less competitive, especially the small domestic BPOs. Software and unified communication companies are also backing the BPOs in their demand as they will be able to provide IP based services like chat and mail on domestic IP calling.
• What are the implications? More cheaper domestic calls – perhaps even free calls. That’s the way the market would be headed if unrestricted domestic IP telephony is allowed.
• Very interesting; let’s wait and watch how TRAI decides.
• Developing countries’ reservations on WTO talks on agriculture
• The WTO released a draft text of agreement on agriculture for comments before the mini-ministerial meeting scheduled to be held in Geneva on July 21^st.
• The developing countries – especially the G-33 group of countries – have given a thumbs down to the draft text. What are their reservations?
• G-33 said the number of goods to be exempt from tariff cuts was much lower at 6%. The group wants at least 8% products to be outside the ambit of tariff cuts.
• It is also against the concept of an average cut in tariffs of special products. (Confused about the phrase ‘special products’? Our noting on 13^th May 2008 clarifies them to you.)
• Besides, it said the price and volume triggers to set off the SSM are inadequate. (If you are unclear about SSMs – Special Safeguard Mechanisms – please refer to our 13^th June, 2008 noting on the subject.
• Even the draft text on services is raising serious concerns among countries.
• Take a look at what we noted in today’s Discover It blog.
• Language lessons: to mind one’s P’s and Q’s
• ‘Evidently, now heads of state not only have to mind their Ps and Qs but also their peas and quotas.” So reads a sentence in today’s editorial.
• Minding one’s P’s and Q’s means - to pay close attention to small details.
• What is sustainable development?
• Sustainability first appeared on the world agenda when the UN applied the term and later founded the Commission on Sustainable Development. Initially, the UN defined sustainable development as development that “meets the needs of the present generation without compromising the ability of future generations to meet their own needs.” More recently, practitioners have expanded this definition to encompass environmental, economic, and socio-political aspects.
• The UN also promulgated an important term related to sustainability: the Triple Bottom Line (TBL) — or People, Planet, Profit. The TBL conceptually expands the traditional financial framework to encompass rigorous reporting on the organisation’s performance on sustainability issues such as the carbon footprint, hiring practices, and dozens of other metrics.
• Farmer suicides – myth and reality
• This is a very good article that appeared in today’s ET. It discusses quite a few important statistics about suicides in India and the world – especially in the context of farm suicides. Worth a read. Don’t miss it.
• An institute for tailors
• The Apparel Export Promotion Council has decided to set up an institute for imparting advanced training to master tailors and educating them on modern apparel business management. It is expected to come up as a centre of excellence to create a pool of highly skilled and design conscious tailor and cutters of garments.