2. Likelihood of US slipping back into recession rises US economy grew at a 1.6% annual rate in the second quarter Recent figures showing slowdowns in housing, business investment and consumer spending are prompting economists to cut second-half growth forecasts. Spending Rises : The GDP report showed consumer spending, which accounts for about 70% of the economy, rose at a 2% annual rate in the second quarter, compared with a previously reported 1.6% pace. Purchases increased at a 1.9% rate from January through March.
3. US investors embark on treacherous month The S&P 500 index has fallen nearly 13 percent since April as investors fret about the chance of a double-dip recession. Upcoming indicators like non-farm payrolls and Institute for Supply Management surveys would intensify fears the economy is sliding back into recession. Both the manufacturing and services sectors are expected to have experienced another slowdown in growth in August. ADP's jobs report on Wednesday is expected to show the private sector added 18,000 jobs in August, down from 42,000 in July.
4. Swiss hand over half of data to US in UBS tax evasion spat Swiss authorities handed over to US authorities data on about half of the 4,450 American clients of Swiss bank UBS who were suspected of tax evasion by an August 26 deadline. The handover is the cornerstone of an agreement the two countries struck in August 2009 to avert potentially damaging litigation against one of Switzerland's biggest banks over suspected tax evasion by US residents.
5. Visa fee hike: Indian cos will become more competitive Indian software firms have taken the recent move by the US to increase visa fees in their stride and will enhance revenue productivity to become even more competitive. There is no short-term impact of this policy decision. “The right thing for us to do is to accept whatever policies are handed out to us and compete and succeed under the new dispensation.
6. Contd… They are saying that certain kinds of companies must pay a certain fee for H1 B and L1 visas. If the company is from UK, Germany, France or Japan, and they need any of these visas, they will also have to pay the higher rate,”
7. Risk-managing oil prices President Obama recently renewed his failed budget pledge of last year to remove $36 billion tax breaks given to oil companies, in face of widespread protest by the industry. Volatility of oil after it jumped from the $22- $28 per barrel price band in the nineties to the $50- $100 band during 2001-2010 One of the way to manage minimum Oil prices is create a large buffer stock of both crude oil as well as refined petrol and diesel.
8. M&M plans to bring Ssangyong vehicles to India after deal Mahindra & Mahindra (M&M) plans to bring Ssangyong vehicles to India after completing acquisition of the South Korean automaker. Ssangyong products are priced upwards of `12 lakh, a level where M&M’s flagship Scorpio SUV price band ends, making way for a perfect product synergy ien the Indian market. M&M which signed a memorandum of understanding to buy a majority stake in Ssangyong hopes to leverage the asset to emerge as a strong player in the global SUV space.
9. India may extend deadline on BlackBerry security row India may extend an Aug. 31 deadline in its standoff with Research In Motion over access to Blackberry data, if the Canadian firm says it has a solution and asks for time. India says it wants to track Blackberry Operations. RIM says it was willing to lead an industry forum to look at India's security concerns as well as uphold the need of corporates for a secure system. “We will only accept a solution which will enable us lawful interception of BlackBerry services in the interest of national security,"
10. Vedanta-Cairn Buyout Seeking to placate the Oil Ministry's concerns on its deal with Vedanta Resources. The UK's Cairn Energy will comply with all contractual obligations in sale of its majority stake in Cairn India to the world's fifth largest miner. London-listed Vedanta is buying 40 to 51 per cent in Cairn India from Cairn Energy and up to 20 per cent from open market, in a deal worth $9.6 billion.
