19.01.2010

Finance & Economy

• Carrefour set to enter India's retail scene?
• Carrefour, Europe’s biggest retail chain, is reportedly close to a deal with Kishore Biyani of Pantaloon Retail to set up franchisee stores in India.
• The Carrefour franchise stores will be aimed at affluent customers, pitting them against the Raheja group’s HyperCity, which operates four stores in three cities.
• Currently, Indian rules permit foreign direct investment in the cashand-carry wholesale business to supply to other retailers, but not directly to customers. Foreign investment is barred in case of multi-brand retail stores, while single-brand retailers such as Nike and Reebok can be foreign owned up to 51%. Multi-brand international retailers are also allowed to operate, but only through the franchisee route.
• Modern retail is only 5% of the entire retail pie, which is estimated to be $390 billion, according to the Retailers Association of India.
• What is prepaid brokerage in stock market parlance?
• It is nothing but brokerage amount paid in advance a la prepaid mobile services by clients to the broking houses.
• Advance credit/deposit, or prepaid brokerage, is typically in vogue during a market rally when bullish investors expect plenty of trading opportunities.
• Prepaid brokerage schemes have made a spectacular comeback as big stock broking houses look to hook as many clients as possible while the upbeat market sentiment lasts and customers flock to a trading system that is up to 40% cheaper.
• On Mutual Fund investments by corporates and tax arbitrage
• Why do corporates and banks want to invest in Mutual Funds?
• They prefer to invest through MFs because of a tax arbitrage: dividends distributed by debt MFs attract a lower rate of tax as compared to income generated by direct participation in the market.
• So what's the remedy?
• The government should scrap dividend distribution tax (DDT) levied on companies and instead tax dividends in the hands of shareholders.
• How would such a change benefit?
• It would boost the government’s revenues, as promoters, who have been paying themselves hefty, tax-free dividends, pay 30% tax on their income.
• It would end the tax arbitrage on investments in MFs and, thereby, remove the artificial incentive companies have for carrying out their treasury deployments through MFs.
• Similarly, it would remove a large part of the incentive that banks have for lending to one another and to companies via MFs. There would be greater transparency on bank lending.
• Such a move would, in addition, restore salience to the role of MFs as vehicles for retail investors to invest in securities. And all MFs can have tax pass-through status.
• Bituminous vs. cement roads
• Bituminous roads last for about 10 years while concrete roads last for about 40 years.
• While the former require frequent repairs the latter remain virtually maintenance free.
• The former are less fuel efficient -- cement roads result in better fuel consumption (10 to 15%) due to better grip.
• Concrete roads cost as much as three times more than bituminous roads.
• Bitumen roads offer better driving comfort and cause less noise pollution.
• Hungry for more? Do read this ET editorial.

Technology

• About 'sleeved column' braces
  
• Know what are these? They consist of a brace surrounding a core of high-performance steel. These are used in construction industry to construct buildings that can withstand earthquakes measuring beyond 5 on the Richter scale.
• This structure is designed and developed by Mr. Benne Narasimhamurthy Sridhara, a structural steel design consultant from Bangalore.
• Know he gets paid $60-80 as royalty whenever US-based steel fabricators are involved in the construction of a new hospital, school or commercial building in the earthquake-prone American west coast? Cool know?
• Conventional braces, which do not have any sleeved material for absorbing energy, can buckle under even in an earthquake measuring 5 on the Richter scale.

International

• Why are Wall Street pays so high?
• The economic base on which their pay is decided is wealth; not production. That's what makes Wall Street pays humungous when compared with pays from other sectors.
• Confused? Take a look at this article. Very well written.

Music

• Rahman in race for Oscar, yet again; but for a Tamil song
  
• The Tamil song ‘Na Na’ has been shortlisted for nomination in the original song category for the 82nd Academy Awards.
• The song will be competing with 62 other songs from eligible feature-length motion pictures for nomination, which will be announced February 2.
• ‘Na Na’ was written by Rahman along with rapper Blaaze and Vivian Chaix and sung by the trio along with Alim, Clinton and Dominic.

Language Lessons

• indubitably: Adverb
• In a manner or to a degree that could not be doubted
• eg: Then again, it (Google) is also indubitably a vehicle for making information infinitely more accessible.
• fracas: Noun
• Noisy quarrel