Oil prices rise

I have grumbled consecutively since last five posts about the Dubai trouble but the Dubai government reassuring steps and the immediate action taken by Dubai's central bank have acted so as to curb the growing fears of the world. It is due to these steps that oil has rebounded to near $77 a barrel Monday in Asia. Benchmark crude for January delivery was up 52 cents to $76.57 at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $1.91 to settle at $76.05 on Friday.The United Arab Emirates central bank took steps to avert any run on banks by panicked depositors, pledging Sunday to offer additional money to foreign and domestic banks in the emirates amid concerns that UAE banks have some of the biggest exposure to Dubai World's debts.The promise of cheap funds signaled to global investors that the country's federal government -- backed by oil money -- will do what it can to limit the fallout from the indebted Dubai emirate.The weakening dollar and the strengthening of Asian markets today have also helped create the rise in oil prices.

Ignored warnings hit Harvard hard

Here is an article about how the people including Summers, one of the greatest economist did not pay heed to to growing market concerns and ended up jeopardizing the world's largest college endowment.
Who cares about the finanial crisis, we have $36 billion

Global GDP trends

I have found this extremely interesting graph of the changing contributions of different regions to the world's GDP and it shows some pretty interesting trends, I t seems that Asia, with ever-growing economies of China, Malaysia, Taiwan etc is showing the greatest positive trend. Wish I could name Pakistan in these countries also but alas! my wishful thinking.

Oil rises to near $77 as Dubai debt fears ease

I have grumbled consecutively since last five posts about the Dubai trouble but the Dubai government reassuring steps and the immediate action taken by Dubai's central bank have acted so as to curb the growing fears of the world. It is due to these steps that oil has rebounded to near $77 a barrel Monday in Asia. Benchmark crude for January delivery was up 52 cents to $76.57 at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $1.91 to settle at $76.05 on Friday.The United Arab Emirates central bank took steps to avert any run on banks by panicked depositors, pledging Sunday to offer additional money to foreign and domestic banks in the emirates amid concerns that UAE banks have some of the biggest exposure to Dubai World's debts.The promise of cheap funds signaled to global investors that the country's federal government -- backed by oil money -- will do what it can to limit the fallout from the indebted Dubai emirate.The weakening dollar and the strengthening of Asian markets today have also helped create the rise in oil prices.

European stocks down as Dubai debt worries linger

I have been bemoaning the far-reaching impact of Dubai's problems for quite some time now and even though it seemed obvious that its effects are going to hurt around for some time, every latest news increases anxiety and concerns. European stock markets have fallen again today amid concerns about Dubai's debt problems, even after the United Arab Emirates' central bank pledged to make extra funding available to all banks in the country, including foreign institutions with local branches. Asian markets rebounded by around 3 percent after tumbling heavily on Friday, when European and U.S. stock markets had regained their poise.Investors in Europe, a different story altogether (fussy as they are!!) , continued to worry about the fallout from Dubai World's announcement last week that it wanted to postpone forthcoming debt payments until May. Much of the $60 billion debts held by the government investment company are thought to be with European banks, particularly those in Britain and so, it seems, they are going to continue crying for some time.

Most expensive college

Going to college is a major investment. It can cost anything between $200 (government subsidized colleges) to upward of $55000(some top colleges in the US).Even though I am a strong supporter of good education,I truly believe that it is the individual's opinion that counts as to whether such hefty spending on college is warranted. Only an individual can decide whether he is content with a state subsidized college or only a private expensive college would do.Here I post a link to a website which lists the 100 most expensive college is the US. Although the page states US but as I have come to realise that education is most expensive in the US, so we can assume that they are the most expensive colleges in the world with a few exceptions here and there.
Most expensive colleges

Continuation

I will now point out what I think are flaws in the Telegraph article. First, the author assumes that the future developments would be common enough that they will be even able to fulfill the requirements of the super-rich. Although, I seem to be inadvertently underscoring the author's line of reasoning and one might point out that this shortage would in itself trigger the rationing function of price and might induce even more exclusivity but this logic can only be applied to the assumption-filled textbook world. Here I can quote the example of body parts such as kisneys which suffer from inefficient allocation creating black markets and smuggling; many people who can pay the market price even can not buy the parts. Also there is no guarantee that the future developments would be free of side-effects, which is a major deterrent even today to consumers endorsing and using advances in bio-technology (O! I wont eat that genetically engineered tomato even if it is the yummiest; there are rumors of endowed antibiotic resistance in those things).Moreover, we are nowhere fully cognizant of our genetics to be able to categorically list out the diseases to which we are prone. We may have been able to isolate all our genes but we do not know the functions of the majority and it seems unlikely that we will be able to in next 20 years. Here, the author also assumes little to no role played by the government in the near future to reduce this disparity. I find this assumptions unwarranted as even as early as the present, groups are pressurizing government to keep a watchful eye on the implications of ongoing research on genetics. So I would not go on to say that the scenario is not possible but it does not seem likely and this post is not intended to be derogatory to the author as I wholeheartedly accept her to be more qualified and experienced than me.

Recently, a Telegraph writer, Amy Willis, wrote in her article about how she expects that advances in medical technology will be such that they will increase the life expectancy but these new advances will be available only to the elite given their hefty price tag. She also goes on to say that this disparity in the availability of those significant medical developments will cause an evolution of a rich class with a longer life expectancy.
I may not be very qualified to challenge anything she says but I do believe that the reasoning has its fair share of flaws.I am extremely tired right now so I will point out those when I have had my rest

How Much Do I Need For Emergencies?

As cliched as it may sound life is full of turns-nasty and nice.We can be minting money one day and the next thing we know, creditors are banging our front door for repayment.As I write this sentence, I am reminded of a German business tycoon who was completetely indebted by creditors and committed suicide by lying infront of a train. We can never be assured of our bright future and it is this idea that forms the basis of insurance.But do we actually need insurance? If yes,which plan is the best for us. Here is a nifty little tool to tell you how much money you require for an emergency. The internet is palgued by emergency calculators but what I really like about this calculator is its simplicity-no long-winded question or technical names. Just answer simple questions and you get a simple answer-and that is just about it.
EMERGENCY MONEY CALCULATOR

Dubai looks to its brother state for aid in its financial woes

While world markets struggle to absorb the shock of Dubai's financial woes (Take a peak at my previous post for a recap), the hitherto ambitious leaders of the Emirate meet their counterparts of the neighbouring state whose balance sheet is flushed by revenues from oil aka AbuDhabi. Few are aware of what actually went inside the august halls in Al Ain on an important Islamic feast day on Friday. But their new relationship is clear. Abu Dhabi has the cash and cache to be Dubai's white knight -- in a Gulf version of a too-big-to-fail bailout or to help calm markets with promises to intervene if Dubai's fiscal mess deepens.
It seems like the decisions Abu Dhabi takes will likely determine the fate the one dreamland-in-the-desert state.Thus it seems mocking that just this month, Dubai's ruler, Sheik Mohammed bin Rashid Al-Maktoum, assured international investors that all was well with Dubai's finances and told media critics to literally "shut up."(Too bad the Maktoum was too angry to put up a show of courtesy)
However,it would be wrong to classify Abu Dhabi's intervention as pure filial sympathy.The intervention might be symbiotic: a stronger Dubai is necessary for a thriving Abu Dhabi.Thus, Abu Dhabi is also moved by its own economic well-being to help Dubai.

All my relatives who live in Dubai are extremely worried about the financial troubles it is facing and many a people plan to return to their home country given the uncertainty but as I read this news I came to be aware of the bigger implications of Dubai's financial problems. Oil prices sank below $76 a barrel Friday in Asia as investors curtailed their risky bets on commodities amid uncertainty about the global fallout from Dubai's financial troubles. While I understand that all the oil prices fluctuations make sense but I have to admit I never thiught that way.

Benchmark crude for January delivery was down $2.09 to $75.87 at midday Bangkok time in electronic trading on the New York Mercantile Exchange, extending losses from European trade. Trading in the U.S. was closed Thursday for the Thanksgiving holiday.Just a year after the global downturn derailed Dubai's explosive growth, the emirate is now so swamped in debt that it's asking for a six-month reprieve on paying its bills. Its main development engine, Dubai World, has said it would ask creditors for a "standstill" on paying back its $60 billion debt until at least May, news that roiled markets worldwide.

Sacrifice.... and Game theory???

For the first time in all this past time, I really see recession hitting in my country and ironically it is not that I find people buying less of Iphones and Playstations; I see recession hitting in on the several sacrifice animal markets. What used to be a thriving market, with hundreds of cattle, which started at least two months before is hardly any noticeable affair this year.Cattle have been reduced in markets exponentially. And hardly anyone is interesting in buying the cattle left:this may be because of recession and I think the downward multiplier effect is much noticeable. However I think there is another factor which is responsible:effect of other people's decisions on a rational consumer's decisions - yes, the game theory. I have discussed about some of the motives an individual has in mind while observing this ritual and I also believe that to a significant extent, the Sacrifice is observed because this is a practice which extends throughout society, so people are sometimes obliged to do it i-e since everyone is performing sacrifice, I may not want to be the odd one out and this might enhance my desire to perform the sacrifice. Since, there is a very pronounced downward multiplier effect in the country, there is no desire to buy some cattle just to 'go with the social norm'. Thus, the phenomenon of diminished sacrifices is further aggravated. However, it would be devilish of me to dismiss all performed sacrifices as products of societal pressure, since many are still committed to perform the ritual due to its purest objectives but it is true that the effect of societal pressure can not be ignored.

Eid Mubarak!!!!

Before I forget, before I go to my village where it is impossible to post anything and before the time has passed, I wish you all a very very happy Eid Mubarak.

Wealth distribution and Eids

As muslims in Saudi Arabia celebrate the yearly muslim festival of Eid and people in my area eagerly await for it (Eid is tomorrow!!), I ponder about the tradition associated with Eid-ul-Azha i-e sacrifice. While my family has not been lucky enough to observe this tradition every year but we have been able to perform this sacrifice whenever our finances gave us leeway. I am thinking about its implications as a way to reduce the difference between rich and poor so as they can enjoy the Eid equally. Since most of the people in my country rarely get to eat any meat, it is a delicacy in every sense of the word: so sacrificing an animal and giving its meat to the poor is indeed a genuine effort to ameliorate their constraints on enjoyment due to financial limitations (Here, I assume that eating meat is an enjoyment for the poor which I think it is).However,putting away my rosy-coloured spectacles, I see a lot of people not observing the tradition with its purest objective, either they do not give away the portion of meat to poors or save the best for themselves. I think this is the fault in the basic aim of a sacrifice:had it been any simple animal slaughter,giving away some meat to the poor would have been scarcely necessary. Since this is THE Sacrifice, I think it is imperative for us to not to discriminate.And it is through this equal distribution only that we can achieve our much sought after aim of reducing disparity between rich and poor.

America's Fastest-Growing White-Collar Paychecks

I read this article about the highest paid administration jobs in the US and I would like to share this article with all of you.While the controller and the Managing director cover up the rear end of there rankings, I leave it to you to check out which administrative job is the most highly paid.
Highest Paid Executive Jobs

Everybody not living under the overly cliched rock knows that things in the financial crisis are not as bad as they were before and we can justifiably say that we are heading towards a really slow and torturous road towards economic recovery but what if somebody told you that the really slow and torturous recovery is even slower than we expected?A private forecast of economic activity over the next six months has come up with a rather sorry report that says recovery was even slower up than expected in October, signaling slow growth next year. The Conference Board says its index of leading economic indicators rose 0.3 percent last month. Economists polled by Thomson Reuters had expected an 0.5 percent gain.The index climbed 1 percent in September.The Conference Board forecasts economic activity by measuring current jobless aid claims, stock prices, consumer expectations, building permits for private homes, the money supply and other data. While some measures may be getting better (consumer expectations??) and some getting worse but at a smaller rate than before (jobless people!!), the future still is uncertain about the exact magnitude of recovery and all we can do is wait and pretend that everything is just fine.

Yale open courses

The world renowned Yale university is offering Yale open courses on their website. What are those open courses all about? Well, they are actual videos of Yale classes in various subjects so one can learn even beyond the walls of Yale.With admission rates of close to 8%, very few lucky people will be able to actually receive the edification inside Yale's forbidden gates. This program as one Yale professor said "as delivering an Ivy league standard education to a wider audience, "It’s not the full Yale experience, unfortunately, but it’s something." allows a reach of Yale education internationally.Here is the link for the Yale open courses,
http://oyc.yale.edu/

Scholarships

If anything is in vogue in the pedant's world, it has to be the number of scholarships given. Despite being a recipient of a full scholarship throughout my high school, I had initially struggled to comprehend the economic logic behind the giving away of scholarships. After all, how could a private, profit-maximising firm make a seemingly rational decision to waive off full tuition for a large percentage of students? Places like my present school have as much as 20% of the student population on some form of scholarship. But as I sailed through my junior year, I gradually started to comprehend the benefits of those scholarships. First of all, since most schools in my area work as close to perfect competition as can be thought of, most schools are price takers and therefore, all schools have to provide similar levels of scholarships in order to keep the students from leaving. (Although schools like Aitchison are exception as they have gained fame for being tough in giving out scholarships and hence, achieving the title of a highly selective school).The scholarship recipients are usually the brightest, fun-filled people there are. Its no surprise that schools can promote the image of being active in extra-curriculars because thanks to those scholarships, they have state level debaters, actors or whatever. And it doesn't take someone to be a rocket scientist to understand that the scholarships attract the world distinction holders about whom the schools can brag about for the next hundred years or so. The scholars would also be the only ones who wold be likely to get into the top colleges and promote the schools reputation as a 'feeder' school to Harvard, Yale, Cornell etc. All the reasons in general and the last reason in particular go on to attract more students which in turn means more revenue for the school. Thus, a happy ending is achieved: the bright minds get full rides till A levels and the schools can brag about how many of their kids got into an Ivy league institution. Therefore, scholarships are NOT as worthless as everyone thinks.

It seems ridiculously obvious that all those budget touchscreens like Star and Corby seem to be working like magic in bringing wheelbarrows full of cash as revenue for the Samsung guys.Samsung has continued its outstanding performance in Q3 of the year, achieving 35.86 trillion Korean won (about 31 billion US dollars) revenue. The consolidated operating profit is 4.23 trillion Korean won (3.6 billion dollars) indicating that the company has been in excellent form for the past three months. Those numbers are respectively 18.5 and 185.8 percent higher than those for the same period of last year.As usual lately, the mobile division is among the best performers in the conglomerate. It registered 10.71 trillion (9.1 billion US dollars) won in revenue reached which is a 20.6 percent increase year-on-year The operating profit of 1.03 trillion won (874 million US dollars) for the third quarter is a quarter-best for the industry. Above, I post a graph to show the current market shares of leading cellphone manufacturers:it seems my speculations were right about LG and Samsung steadily increasing market share for Samsung's share has increased by 15% quarter-on-quarter to 60.2 million units to 20.8 %,crossing the 20% mark for the first time.

Unemployment rate hits 10.2%, worst since 1983

If there was anything that caught my undivided attention while perusing my online articles, it was this: US's unemployment rate rose above 10% for the first time since 1983 in October, a much worse jump than expected as employers continued to trim jobs from payrolls.The reading, reported by the government Friday, is a sign of the continued weakness in the labor market even though the economy grew in the third quarter following the longest and deepest downturn since the Great Depression. The government reported Friday that unemployment rate spiked to 10.2%, up from 9.8% in September. It is the highest that this rate has been since April 1983. Economists had forecast an increase to 9.9%.
According to a survey of top forecasters by the National Association of Business Economics last month, the consensus estimate among economists was that unemployment would hit a high of 10% in the final three months of this year and the first quarter of 2010.
This news shows that we, or rather the US has yet to see the worst of unemployment rates given the continued uncertainty of employers.

KSE index shoots up again

For about a week or so, the KSE 100-index has been plummetting to a low of a shade over 8700 but now the latest news is that it has again taken a hike and not only crossed the psychological barrier of 9000 but also ended a little over a 100 points above that. The influx has been caused by an increase in direct investment by foreigners who might have been hesitant to invest in the days before, given the recent wave of terror and the much hyped (not in a good way) NRO. This incident further highlights the importance of stability to a country's economy. Although the pernicious effects of instability are nothing new to Pakistan( the Lawyer's movement, remember and also the effects of every word of Musharraf's speech on KSE highs and lows), it is high time for us to give leeway to the economy to settle and have a smooth growth. Stock market, in particular, is vulnerable to such instability as most of the trading is based on anticipation.

SAT results

Students must be logging in to their collegeboard account as I type this to access their October 2009 SAT scores. Considering the importance of this little test called SAT, I sincerely wish them best of luck. May your SAT score exceed your expectations.Amen

Colgate-Palmolive 3Q profit rises 18 percent

Consumer products maker Colgate-Palmolive Co.'s third-quarter profit rose 18 percent as new products took market share and shoppers continued to pay higher prices for its products.

The maker of toothpaste, dish soap and Ajax cleanser said Thursday that it earned $590 million, or $1.12 per share, in the quarter that ended in September. A year ago, Colgate earned $500 million, or 94 cents per share.Revenue rose to $4 billion from $3.99 billion, helped by a 5 percent rise in prices worldwide. Colgate has raised prices to keep up with higher ingredient costs.Analysts polled by Thomson Reuters expected $1.11 per share and lower revenue of $3.94 billion.The amount of products sold rose 1.5 percent as consumers appeared willing to spend more for their products. Many shoppers have been trading down to cheaper items to save money. Personally I use colgate and I can understand

Shell Q3 profit falls 62 pct, to cut 5,000 jobs

Just when you feel assured the worst of recession is over, there comes some news which reminds me of the Q1 and Q2 of this year where many reported severe losses.Royal Dutch Shell PLC, Europe's largest oil company, reported Thursday a 62 percent fall in profit for the third quarter due to lower oil prices, and said it plans to cut 5,000 jobs to cope with continuing weakness in the global economy.
In Europe there are few if any signs of demand recovering...in the United States if anything there's some bottoming, improvment in one or two subsectors but not yet firm enough to call a recovery," he said.Shell said net profit was $3.25 billion (euro2.21 billion), down from $8.45 billion in the same period a year ago. Sales fell 43 percent to $75.0 billion.Shell Chief Financial Officer Simon Henry said the company is not expecting a swift economic recovery and will this year cut around 5 percent of its work force, some 5,000 jobs, primarily in middle managment.

Motorola posts 3Q profit, names permanent CFO

Now I have to admit it, this is a surprise for me.Motorola Inc. reported an unexpected quarterly profit Thursday as operating losses in its struggling mobile phone division narrowed. The company also forecast stronger-than-anticipated earnings for the current period.Motorola shares jumped 64 cents, or 8 percent, to $8.60 in premarket trading.The results marked Motorola's second straight quarter in positive territory after months of heavy losses and shrinking market share in the cell phone business.Sales continued to fall, but the company is pinning its turnaround effort on a new slate of phones powered by Google Inc.'s Android operating system. Two of the phones, including a new device called the Droid introduced by Verizon Wireless on Wednesday, will be available as the holiday season arrives.Motorola seems to me way behind market trends to produce only-covering-basics touchscreen phones which the recession-stricken but touchscreen-hungry consumers seem to love.They surely need to take more out of the books of LG and Samsung which have come out this quarter with buckets full of cash.

The company also said it has named Edward Fitzpatrick, the Motorola's acting chief financial officer, as permanent CFO

TURKEY JOINING EU

Vehemently opposed by French and the Germans while wholeheartedly supported by most other Europen nations, the accession of Turkey to EU is highly controversial. A membership of EU has some pretty obvious advantages: being a european, having access to all european markets without barriers, having common trading policies, having simplified financial procedures and what not, and to get it the Turks have left no stone upturned: whether it be promoting secularism by not allowing scarfs by legislation and wholeheartedly supporting homosexuals or reducing the trade barriers it has opposed, but these acts of passion have done little to warm the hearts of the European powers, some of whom remain adamant about not allowing Turkey to join.

The argument about trade is valid but what about an important benefit to be gained from the accession i-e Turkey serving as a gateway to Islamic world. While Turkey may not fit the stereotype most westerners have of a muslim coubtry, only a few have realized the role of Turkey as a mediator in dialogues with the muslim world. Afterall, Turkey is 99% muslim and one only has to go to the arteries of Istanbul (the supposedly most westernised city of Turkey) to note the Islamic and mid-eastern influences.Therefore, I believe Turkey's accession will strengthen the bond between the West and the Muslim world. Perhaps Mr. Obama should consider this point while he embarks his

http://http://www.thecrimson.com/article.aspx?ref=529697CRIMSONITE ECONOMISTS PUSH SAFE INVESTING STRATEGIES

http://www.thecrimson.com/article.aspx?ref=529697

Here is an article about how the crimsonites (if there is that word because I just made it up! Okay lets keep it simple "The Havard") economists make sure their money is not wasted. Good to see they all have their own strategies to keep it safe and they are sometimes pretty disimilar to each other. You know what they say about the economists, "They can never agree on anything". Well, basically the article is a pretty interesting read, so enjoy.

Children have more DVDs and computer games than books, survey finds

According to a survey, Scottish children have more DVDs and computer games than books. The study, commissioned for BookTime, a branch of the independent charity Booktrust, which delivers free books to toddlers and children, found that one in every 20 households in Scotland owns just ten books or fewer.One in every 10 adults surveyed said their child "rarely or never" read the books they had.
A third of parents and carers (32%) said their children's shelves had more DVDs and computer games than books.
More than half of parents and carers (54%) said their child spent more time in front of a television or computer screen than reading.
A total of 622 parents and 205 children from across Scotland were questioned about children's reading habits.

I am one of the lucky few who has more books than DVDs and computer games combined. Call me pedantic, bookworm or whatever but I think studying books are imperative not only for our language development but also for our character development. And that is not to say that I do not enjoy music or games, because I enjoy both. However, I find that bookreading is increasingly becoming a thwarted habit and this survey

KSE takes a downward plunge

The KSE has plummeted by about 350 points.Bears once again dominate Karachi Stock Exchange (KSE), plummeting the benchmark KSE-100 Index by 321 points to 9,247. The share market opened in the negative zone and remained under selling pressure throughout the session.Selling by foreign investors in energy stocks was seen as the main cause behind today’s bearish activity.The trade volume stood at 200 million shares today. Arif Habib Securities emerged as today’s volume leader which increased by paisas 54 to close at Rs51.91.KSE-30 Index finished the 336 points low to peg at 10,770.

UPDATE: The KSE sure looks gloomy these days. It has not even been able to keep up to 9000 points

O & A LEVELS PAPERS CANCELLED

As I had been pretty busy with the exams myself, I have scarcely visited my blog, but the news is that O and A levels papers which were were scheduled to take place from 21 to 25 October have been cancelled due to security reasons . The papers scheduled for next Monday will take place as usual. The cancelled papers will most probably be held towards the end of the examining session. According to a British council informant, "University of Cambridge has adequate measures in place to ensure that candidates who, by a genuine reason, are unable to take the exam are not disadvantaged in any way". While the final decision regarding the cancelled/postponed papers will be sent to the concerned schools, speculations are abound about the final status of the missed papers. Some are convinced that the examination will take place, while others assert that the expected grades sent to UCLES will be used to deduce the final grade. As we anxiously wait for the final decision about the cancelled papers, we also pray to God that the

GERMAN'S INITIATIVE

The elite and the wealthy of the germans have filed a petition in court which practically imposes a higher tax on them. Why would any sane man in the world do such thing, you ask? Well, the answer aint that difficult, the germans are a true patriotic nation and the wealthy have decided that they would increase the tax percantage to 5% so that they can help to relieve germany out of the economic crisis. They are of the opinion that they can not bear having mounds of wealth while the rest of germany faces financial crisis. The self imposed tax would generate a revenue of 100 billion euros and according to the elite group would have 'minimal effect on us'. This example stands in stark contrast to the example set by the Pakistani elite who, when we had the liquidity crisis, serrepititously smuggled all their amassed wealth in forein accounts:thus, worsening the situation. This act of the germans shows their quintessentialchauvinism for their country, which I for one salute.

Ford to make low cost compact car in India

The four-door "Figo", which is Italian slang for 'cool', will go on sale in India during the first quarter of next year, Ford executives told a press conference Wednesday. There are also plans to export the low-cost car to other Asian countries.
The automaker declined to reveal the Figo's sale price and initial production volumes. One analyst said he expects the Figo to sell for 300,000 to 400,000 rupees ($6,000 to $8,000), putting it in competition with several other compact models, including the high-end Tata Nano, which sell for 250,000 to 550,000 rupees.
The Figo represents a change of gear for U.S. automakers, which have been slow to penetrate India's small but fast-growing car market but are now increasingly chasing growth in Asia.
"This new car will be a game changer," said Michael Boneham, president of Ford India. "It will give us muscle in the heart of the Indian market."
Ford chief executive Alan Mulally said he expects a third of global car sales to come from Asia in 20 years, a third from the Americas and a third from Europe and Russia.
The company has a lot of catching up to do in Asia. Ford, the only major U.S. automaker to survive the financial crisis without a taxpayer bailout, has about 15 percent market share in North America, 10 percent in Europe and just 2 percent in Asia.
Executives said they would be making an announcement later this week about ramping up Ford's China production capacity, currently at 450,000 vehicles a year. They wouldn't confirm reports the automaker will open a third assembly plant in China.
The Figo is the first fruit of a $500 million India investment Ford announced last year. That money will also be used to double production at its factory in the southern city of Chennai, to 200,000 vehicles a year, and raise engine production to 250,000 a year. The expansion is part of Ford's effort to transform India into a small car production and export hub -- a strategy that Hyundai, India's largest car exporter, has excelled at.
In India, U.S. automakers have proven less nimble than their Japanese, Korean and Indian competitors in offering cars that are small and cheap enough to attract the mass of the buying public.
Three-quarters of all cars sold in India are compacts. Though Ford has been doing business in India since 1995, the Figo is its first compact offering to target the mass market.

EID MUBARAK!!!!!!!!!!!!

I WISH ALL OF MY READERS A HAPPY EID!

EU financial watchdog to rely on moral authority

The European Union's new economic watchdog plans to use "moral pressure" instead of regulatory authority to crack down on countries posing major risks to Europe's economy, the European Commission said Wednesday.
The EU's executive body laid out a new financial oversight structure Wednesday that it wants EU governments to back to prevent a repeat of last year's banking crisis. Still, it is shying away from creating forceful new regulators who could unilaterally overrule member states.
This move is contingent upon a asic assumption that consumers pay heed to ''moral pressure"which is considerably debatable.

Oil drops below $69 as dollar gains, stocks slide

Oil prices dropped below $69 a barrel Monday, hurt by a rise in the U.S. dollar, which tends to weigh on commodities, and a slide in regional stock markets.
By midday in Europe, Benchmark crude for October delivery was down 59 cents to $68.70 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, the contract tumbled $2.65 to settle at $69.29.
Oil prices have fallen about $4 in the last two trading days as the dollar rebounded off its lows of the year last week. Oil is priced in dollars so it becomes more expensive when the U.S. currency gains.
The euro fell Monday to $1.4538 from $1.4594 on Friday, the British pound fell to $1.6539 from $1.6687 and the dollar rose to 90.80 Japanese yen from 90.57 yen.
Oil traders are also eyeing stock markets for an overall reading of investor confidence. Most Asian and European indexes fell Monday.
"Oil's being driven down by the dollar and weakness in Asian stocks," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. "There are also worries about oil demand."
Crude has traded between $65 and $75 for the last few months as investors seek to understand how far consumer demand can recover as the global economy stabilizes.
Shum said oil will likely remain in that range until there is a strong new catalyst.
"There are no clear forces to cause oil to break out of that range," Shum said. "I don't expect this pullback to be very significant."
Britain's KBC Market Services concurred, but warned that "if the improved economic mood doesn't last then a major correction could happen very fast."
In other Nymex trading, gasoline for October delivery fell 1.87 cents to $1.7411 a gallon, and heating oil dropped 0.83 cents to $1.7225 a gallon. Natural gas rose 5.4 cents to $3.014 per 1,000 cubic feet.
In London, Brent crude was down 37 cents to $67.32 on the ICE Futures exchange.

China: Trade penalties will hurt US relations

President Barack Obama's decision to impose trade penalties on Chinese tires has infuriated Beijing at a time when the U.S. badly needs Chinese help on climate change, nuclear standoffs with Iran and North Korea and the global economy.
China condemned the White House's announcement late Friday as protectionist and said it violated global trade rules. At home, the punitive tariffs on all car and light truck tires coming into the U.S. from China may placate union supporters who are important to the president's health care push.
To the White House, it was "simply about enforcing the rules of the road and creating a trade system that is based on those rules and is fair for everyone," spokesman Robert Gibbs told reporters traveling with Obama on Saturday to a health care event in Minneapolis.
Chen Deming, China's minister of commerce, said the penalties would hurt relations with the U.S. A ministry statement said Obama had "compromised to the political pressure of the U.S. domestic trade protectionism."
"The Chinese government will continue to uphold the legitimate interests of China's domestic industry and has the right to take corresponding measures," Deming said.
Obama had until this coming Thursday to accept, reject or modify a U.S. International Trade Commission ruling that a rising tide of Chinese tires into the U.S. hurts American producers. The United Steelworkers blames the increase for the loss of thousands of American jobs.
The federal trade panel recommended a 55 percent tariff in the first year, 45 percent in the second year and 35 percent in the third year. Obama settled on 35 percent the first year, 30 percent in the second and 25 percent in the third, Gibbs said
"For trade to work for everybody, it has to be based on fairness and rules. We're simply enforcing those rules and would expect the Chinese to understand those rules," Gibbs said.
The decision comes as U.S. officials are working with the Chinese and other nations to plan an economic summit in Pittsburgh on Sept. 24-25 of the 20 leading rich and developing nations. China will be a major presence at the meeting, and the United States will be eager to show it supports free trade.
Many of the nearly two dozen world leaders Obama is hosting have made strong statements critical of countries that protect their key industries. Obama, too, has spoken out strongly against protectionism, and other countries will view his decision on tires as a test of that stance.
Governments around the world have suggested the U.S. talks tough against protectionism only when its own industries are not threatened. U.S. rhetoric on free trade also has been questioned because of a "Buy American" provision in the U.S. stimulus package.
The tire decision could have ramifications on issues such as the nuclear disputes with Iran and North Korea and on efforts to address climate change. China is the world's third-largest economy and a veto-holding member of the U.N. Security Council.
Roy Littlefield, executive vice president of the Tire Industry Association, which opposes the tariff, said it would not save American jobs. He said the penalties would cause tire manufacturers to move production to another country with less strict environmental and safety controls, less active unions and lower costs than the United States.
The steelworkers union brought the original case in April, accusing China of making a recent push to unload more tires ahead of Obama's expected action. The union says more than 5,000 tire workers have lost jobs since 2004, as Chinese tire overwhelmed the U.S. market.
The U.S. trade representative's office said four tire plants closed in 2006 and 2007 and three more are closing this year. During that time, just one new plant opened. U.S. imports of Chinese tires more than tripled from 2004 to 2008 and China's market share in the U.S. went from 4.7 percent of tires purchased in 2004 to 16.7 percent in 2008, the office said.
In a two-page statement China said the tariffs do not square with the facts.
There hasn't been an obvious increase of exports of tires to the U.S., the statement said, citing a 2.2 percent increase in 2008 from 2007, and a 16 percent fall in exports in the first half of 2009 compared with first half of 2008.
The new tariffs, on top of an existing 4 percent tariff on all tire imports, take effect Sept. 26.

China: Trade penalties will hurt US relations

A $100 M question:Where is broadband?

The national stimulus package passed by Congress in February may have been too enthusiastic about spending money on one particular project: figuring out where broadband Internet access is available and how fast it is.

The $787 billion stimulus bill championed by the Obama administration set aside up to $350 million to create a national broadband map that could guide policies aimed at expanding high-speed Internet access. That $350 million tag struck some people in the telecommunications industry as excessive, compared with existing, smaller efforts. The map won't even be done in time to help decide where to spend much of the $7.2 billion in stimulus money earmarked for broadband programs.
Now it appears the final cost won't be as high as $350 million -- though just how much it will be is unclear.

BUT IS THAT TRULY WARRANTED, ONE MIGHT ASK BUT THE SIMPLE ANSWER IS WHO KNOWS

Even $100 million might be high. The firm could create a national broadband map for $3.5 million, and "would gladly do it for $35 million," Altman said.
Dave Burstein, editor of the DSL Prime, believes a reasonable cost for the map would be less than $30 million.
The map should reveal what most individuals already know: whether their homes can get broadband, and how fast it is. Officially, the goal for the map is to help shape broadband policy and determine where best to invest government funds. It may also help consMumers shopping for Internet service.

mark Seifert, who is overseeing the broadband grant and mapping programs at the NTIA, offers several reasons why the federal government may spend proportionally more on mapping than some states. For one thing, he said, most efforts that have been done in states have focused on so-called "last-mile" connections that link homes and businesses with the broader infrastructure of the Internet. The NTIA also wants extensive data on that behind-the-scenes Internet infrastructure.What's more, since much of the mapping data will come from phone and cable companies, the NTIA wants the information to be independently verified -- which could involve knocking on doors to confirm where broadband is and is not available and conducting other on-the-ground checks."You can spend less money on a map ... but you get what you pay for," he said. "Data costs money."

POTENTIAL DOWNTURNS AROUND THE CORNER

While we may be lampooning the current global market downturn, some believe that more might be around the corner because of the unquenchable capability of human beings when confronted with long periods of prosperity to presume that it will continue.
Hop on to this page to find this interesting and sort of intmidating article about what dangers lie ahead.
http://finance.yahoo.com/tech-ticker/article/325783/Ten-Bubbles-in-the-Making;_ylt=Av.fwhhLHVk9ksSQCBU0YS1brdIF;_ylu=X3oDMTEybWhkcjl1BHBvcwMxBHNlYwNhcnRpY2xlBHNsawMxMGJ1YmJsZXNpbnQ-?tickers=%5Egspc,%5Edji,xlfi

A MEAGRE CONFERENCE TO HONOUR 'LITERACY DAY'

While most of the populace of Pakistan was understandably unaware that yesterday was the World Literacy Day, it was the ignorance of the media and the government that was most astonishing. All that was done was to have the Education minister to adress some people in Marriott hotel. The minister asserted that we have been going the wrong way in proliferating education in Pakitan for the last 62 years. He also contended the notion that the new government plan was working in the direction of making education widely available and accessible. There was nothing said about the future plans or changes that the Minister intends to implement in the educational system.

HAPPY LITERACY DAY!!!

I think we have had enough of the extremely sophisticated and esoteric language of my news post and so, I use a very candid tone to wish you all a belated HAPPY LITERACY DAY!! What was said and done on this day in Pakistan comes right after this post.

HOW TRUE!!

Greg Mankiv recently posted this picture. How true is that cartoon. Sort of reminds me article in my economics texbook from the Economist about the same issue.http://http://gregmankiw.blogspot.com/2009/09/secret-is-out.html
Keep going Greg, YOU ROCK!!

World trade body ruling reflects pre-crisis time

The World Trade organization's ruling that European loans for Airbus wre illegal subsidies is being cheered by U.S. lawmakers loyal to the Boeing Co., even though the preliminary decision may seem quaint in a world where government subsidies, bailouts and takeovers are now commonplace.
Friday's ruling reflects the world as it existed five years ago when the United States brought the case against the European Union, arguing that such subsidies were unfair trading practices.
But since then, the deep global recession has led to hundreds of billions of dollars in government subsidies and intervention in nearly all the world's major economies, including big government ownership stakes in banks, and auto and insurance companies.
Furthermore, other countries, including China, Japan and Brazil, are busy expanding or developing their domestic airline industries.
At issue is a 1,000-page confidential ruling that was given to U.S. and European trade officials. It was not released yet, and officials were under instructions not to speak publicly. the ruling "confirms that Boeing has been competing on an uneven playing field for decades."

Brown to G-20: Economy at 'critical juncture'

British PM, Gordon Brown has urged the world leaders to make a strong and clear commitment to increase effforts for boosting growth. He asserted today that the world economy is at a 'critical jucture'.
Addressing finance officials from the Group of 20 rich and developing countries at the start of their talks , Brown warned against ""complacency or overconfidence" in the face of mounting signs of at least a modest economic upturn.We meet at a critical juncture for co-operation in the global economy," Brown told officials from countries representing 80 percent of the world's output. "The G-20 needs to agree on a clear and unambiguous mandate for itself to give priority to the resumption of global growth and to help countries achieve sustainable growth going forward.
Japan, Germany, France and Australia all recording growth in the second quarter. Britain is widely expected to do so in the third quarter.
The International Monetary Fund has said that the global economy is beginning a sluggish recovery from its worst recession since World War II. The IMF last month increased its estimate for global economic growth in 2010 to 2.5 percent, from an April projection of 1.9 percent. But it also downgraded its forecast for this year to a contraction of 1.4 percent, from 1.3 percent.
The timing of a so-called exit strategy from the recent massive economic stimulus to drag the world economy out of recession is not yet agreed upon.
Germany has pushed for the G-20 to start talking about when and how they will withdraw stimulus measures, but others have warned that withdrawing the massive amounts of money injected into the ailing world economy any time soon could risk a double-dip recession. Pulling back the stimulus too late, however, risks corrosive inflation, some think.

SAT Scores Fall as Gap Widens; Asians Gain

High-school students' performance last year on the SAT college-entrance exam fell slightly, and the score gap generally widened between lower-performing minority groups and white and Asian-American students, raising questions about the effectiveness of national education reform efforts.
Average scores for the class of 2009 in critical reading dropped to 501 from 502, in writing to 493 from 494 and held steady in math, at 515. The combined scores are the lowest this decade and reflect stalled performance over the past three years. The reading scores are the worst since 1994.

The results come a week after the disclosure that only a quarter of 2009 high-school graduates who took the ACT, the other main college entrance exam, had the skills to succeed in college.
Gaston Caperton, president of the College Board, the New York-based nonprofit that oversees the SAT, stressed what he considered the good news in Tuesday's data: the growing and diverse number of students taking the exam.
A record 1.53 million students took the exam in 2009. About 40% were minority students, up from 29% in 1999. Education analysts said scores would be expected to drop as more students take the test, so College Board officials interpreted the stability in scores as encouraging.
Noting the gap in achievement between lower-performing minority students and the general population, College Board officials said those who lagged tended to go to school in poorer districts with fewer resources. "As a country, we must do better providing students of every background access to the best education," Mr. Caperton said.
College Board officials said that Asian-American students appeared to do better at all income levels. Officials said that was because they tend to take more Advanced Placement and other rigorous courses, and their families place a strong value on success in education.

SAT Scores and Family Income

There has been quite a commotion going on over the blogosphere about the correlation between incoma and SAT scores. Much research has been done and opponents of the correlation have always found some snag in the research but to me, it does seem that such a correlation exists. Although, it might have some pretty serious repercussions and also mean some problems for the College Board, it seems logical that a correlation exists because a higher income means better SAT prep test and an affordability of reappearing in the test. I found these graphs in the New York Times blog which I would like to share which show a breakdown of SAT component scores and their realtion with income.http://http://economix.blogs.nytimes.com/2009/08/27/sat-scores-and-family-income/

KSE crosses the 8900 mark

It has happened at last,folks. While the world lampoons the signals that contradict the expectation of an economic recovery, the Karachi Stock Exchange Index (KSE) has crossed the level of 8,900 after more than eight months whereas yesterday, foreign investors made buying of $24, million, the highest during last 17 months.The trading started with increment of 76 points, however, KSE-100 Index soon cross the level of 8,900 with the increment of 200 points. Last time, such activity was witnessed in December 15, 2008 when KSE-100 Index reached at 8817 points level.Most of the buying of shares occurred in the sectors of oil and gas, banking, telecom, cement and transport.

Murdoch son: BBC threatens independent journalism

James Murdoch, the 36-year-old executive in charge of News Corp.'s businesses in Europe and Asia, spoke late Friday at the Edinburgh International Television Festival -- 20 years after his father delivered a keynote speech at the same event
In this all-media marketplace, the expansion of state-sponsored journalism is a threat to the plurality and independence of news provision, which are so important for our democracy," Murdoch said.
The BBC is subsidized by the British government and funded, in part, by television licenses that consumers must pay if they use a television.
Rupert Murdoch's News Corp. controls British Sky Broadcasting Group PLC, one of the BBC's main competitors in Britain.
"As Orwell foretold, to let the state enjoy a near-monopoly of information is to guarantee manipulation and distortion," Murdoch said, referring to George Orwell's book, "1984."
He said broadcasting policy had failed to keep pace with changes, relying on regulation and intervention from the state rather than empowering consumers.
Greg Dyke, the BBC's former director general, said Murdoch's argument was "fundamentally flawed."
"Journalism is going through a very difficult time -- not only in this country but every country in the world because newspapers, radio and television in the commercial world are all having a very rough time," he said.
Dyke said it was not the fault of the BBC that the recession and loss of advertising revenues had hampered news organizations.
Last month, a journalist told a British parliamentary committee that James Murdoch approved an out-of-court payment to settle a controversial phone hacking case.
News of the World editor Colin Myler said that Murdoch was told that 700,000 pounds ($1.1 million) would be paid to settle a case against the company.
The suit was brought by Gordon Taylor, head of the Professional Footballers' Association, one of the targets of the hacking.
The allegations against the News of the World, part of Rupert Murdoch's News Corp. empire, have been waged as part of a wider scandal concerning journalistic abuses.
Source:Yahoo News

EU signs trade pact with southeast African nations

The European Union signed a temporary trade pact on Saturday with South East African countries namely Mauritius, Seychelles, Zimbabwe and Madagascar calling for abolishing tariffs on European goods over the period of next 15 years.
These four countries in southeast Africa have had full access to the EU consumer market -- the world's biggest -- since the start of 2008 for most goods. Trade barriers for rice and sugar, however, are being removed gradually.
Zambia and Comoros have indicated they will sign the EU pact at a later date, the EU said.
Djibouti, Ethiopia, Eritra, Malawi and Sudan, which have been negtiating a regional trade pact, may also join the EU accord. As poor developing nations ,they currently do not pay tariffs on exports to the EU.
EU Trade Commissioner Catherine Ashton said the new interim deal would help counties of eastern and southern Africa in creating a single regional trade pact with the EU that would eventually cover trade in services, investment and protection for emerging industries in Africa.
The European Union imported some euro3.2 billion ($4.6 billion) of goods from eastern and southern Africa last year, mostly textiles, clothes, sugar, fish products and copper. European exports -- mostly mechanical and electrical machinery and vehicles -- were worth euro4.3 billion ($6.18 billion). Source:Yahoo News
To sum it up, a game of quid-pro-quo

Oil prices hover above $72 in Asia because of concerns over slowing US demand

After reaching a 10 month high last thursday,the oil prices in Asia plummeted to a lower value of $72. This downfall was amid the concerns over slowing demand for oil in the US, the world's largest energy copnsumer.
Benchmark crude for October delivery was up by 43 cents at $72.48 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.
The oil prices reached their 10 month peak, buoyed by new signals of rising U.S. consumer confidence but descended from that value to settle at $72.05 after a new report from Washington projected a cumulative $7 trillion U.S. deficit for the next decade.
Energy prices had risen sharply this year, riding on a rally in equity markets mostly on the belief that the global economy is improving and demand will rebound soon.

Whats your IQ?

IQ (Intelligent Quotient) is a numerical figure used to assess a person's mental capability. The term was coined by a German scientist and has now become a standard measure of mental acumen. According to most sourced, an IQ equal to or above 140 is regerded as a genius but this is controversial as many factors can affect the accuracy of the value including the credibility of the test administered, the conditions in which the test was taken, the age and sex of the test taker, among many other things.
I gave the test when I was 12 and I got a 180;so, according to the thresholds, I am a super genius but the test was taken by my aunt who was but a psychology student. Thus, the credibility of the IQ value is debatable.
Anyways, if anyone of you is interested, you can go to the follwing link.Fair warning though!folks. Since, I am about to take the test, I can not comment on the value of the test but nevertheless, if you got some time free, its worth a try, isn't it?

White House to project $2 trillion higher deficit over next decade

Obama administration expects the federal deficit to be $2 trillion bigger than the previous estimate. This predicition has been made due to a slower economic recovery. While a white house official told this on the account of anonymity, he also contended that this higher deficit could also lead to troubling waters ahead for the Obama administration who are already being panned for their Stimulus Plan. This also means that Obama's goal to cutting down America's deficit to to $512 billion in 2013.
In its earlier projections, the White House said the deficit would be manageable if it slides to 3 percent of gross domestic product. Earlier projections barely met that standard -- even after relying on optimistic assumptions like the wars in Iraq and Afghanistan costing $50 billion a year instead of the $130 billion budgeted for 2010.
Now, the deficits could easily exceed 4 percent of GDP, even after cost-cutting efforts or new revenues claimed in Obama's budget.
Now, to keep true to their promise, Obama and his asministration may have to bend or even break the other promise of not raising any taxes on individuals who make less than $200,000 and we may see something similar to former President Bill Clinton's tax-heavy 1993 deficit reduction plan. (Source: Yahoo News)

Oil prices hit 10-month high as optimism grows

Oil prices jumped Friday to a new high for the year after Federal Reserve Chairman Ben Bernanke said that the U.S. economy is nearing a recovery and other economic data backed him up.
Benchmark crude for October delivery rose 98 cents to settle at $73.89. After Bernanke spoke at an annual Fed conference in Jackson Hole, Wyo., prices briefly neared $75.
The price for natural gas plummeted to a new seven-year low, which suggests some skepticism about an economic rebound. Natural gas is used by major industries, including utilities, for power.
Energy experts had a hard time explaining how natural gas can plunge while prices for other energy futures, including heating oil and gasoline, continue to rise.
"If there's a recovery, people would be using electricity first before they buy gasoline," said Peter Beutel at Cameron Hanover. "Yet oil prices are going up and natural gas prices are down."
Oil started climbing early in the morning after financial information company Markit said its composite purchasing managers' index showed the European economy was stabilizing.
"If Europe's coming out of recession, the euro could get even stronger," analyst Phil Flynn said. "That means more demand for oil."
And the dollar did fall against the euro to end the week, effectively making dollar-based oil cheaper across the globe. That created its own momentum and drew a lot of investor money into crude, meaning the price for gasoline and other fuels will likely move up as well.
Gasoline prices have flattened and few expect a major run on prices as the driving season winds down.
Retail gas prices were almost unchanged, rising a hundredth of a cent to a new national average of $2.625 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service. A gallon of regular unleaded is 16.4 cents more expensive than it was a month ago, but it's $1.077 cheaper than last year.
In addition to the falling dollar and other upward pressures on energy prices, new housing data showed that people are buying.
Just as Bernanke began to speak, the National Association of Realtors said that home resales posted the largest monthly increase in at least 10 years, which may have helped push energy prices higher.
Crude this year has tended to jump even marginally good economic news. It has been slightly more than a year since a barrel of crude soared close to $150 per barrel and few people believe that at some point, demand for energy will not rebound strongly.
The question is when.
Earlier this week, the U.S. government reported that crude in storage, which had been building for weeks, fell by a surprising 8.4 million barrels as refiners cut back on petroleum imports. Crude prices jumped sharply.
In other Nymex trading, gasoline for September delivery added 1.34 cents to settle at $1.9956 a gallon and heating oil for September delivery added 1.97 cents to settle at $1.9049 a gallon. Natural gas for September delivery tumbled another 14.1 cents to settle at $2.804 per 1,000 cubic feet.
In London, Brent prices rose 86 cents to settle at $74.19 a barrel on the ICE Futures exchange

Large Texas bank shut down by federal regulators

Hi guys! school has started and I am sorry for becoming irregular in my posts but unfortunately, my first post after this break is not quite heartening, to be honest.
Guaranty Bank has become the second-largest U.S. bank to fail this year aftr the Texas lender was shut down by regulators and most of its operation sold at a loss of billions of dollars for the U.S. government to a major Spanish bank.
The bank failure, the 10th largest in U.S. history, is expected to cost the deposit insurance fund an estimated $3 billion.
Guaranty Bank, with 162 branches in Texas and California, saw its investmens in real estate lending and mortgage-backed securities bought from other banks sour and had been teetering near collapse for weeks. Its parent, Guaranty Financial Group Inc., reaffirmed Monday in a regulatory filing that the company was critically short of capital and didn't believe it could stay in business.

Japan's economy rebounds in 2Q

After a long year in recession, Japan's economy emerges out of the murky waters with an annual growth rate of 3.7%. Thus, it joins the elite countries' list which appear to be emerging out of the financial crisis.

But economists and politicians sounded cautious, noting that the main driver of growth was exports and that domestic consumer spending remained fragile amid plunging incomes and rising unemployment.

The recovery in the April-June quarter was driven by robust demand for cars, video recorders and other electronics goods, according to government data. Shipments to China and other emerging markets were particularly strong, although exports to the U.S. and Europe also showed modest recoveries. Exports grew 6.3 percent from the previous quarter, the highest rate in seven years.

Although, the Japanese government warns that risk factors remain, including unemployment and production is still on a low level, if the economy goes on at this rate, the economy would grow 3.7 percent. (Source: Yahoo News)

Sorryyyyyy!!!! I forgot

I have been pretty busy lately and it seems my brain has gone into a state of hibernation. I mean, how could I forget to wish all my dear readers HAPPY INDEPENDENCE DAY?? May this independence day bring end to the civil war, betterment in educational facilities and improvement in our economic condition. Amen

Planning to go on a vacation to US? Read about which places not to visit

ecI found this quirky and, at the same time, informative article about places which should rather be avoided if somebody goes on a jaunt to The Land Of Oppurtunity. The author seems to be an avid tourist as he describes the worst tourist attrractions in abut terse way. Do stop by here if you plan to go sightseeing in the US
http://http://travel.yahoo.com/p-interests-29489009;_ylc=X3oDMTE1dDB2bmFrBF9TAzI3MTYxNDkEX3MDMjcxOTQ4MQRzZWMDZnAtdG9kYXltb2Q-

Mexico's president supports idea of free trade deal with Brazil proposed by business sector

Mexican President Felipe Calderon said that he supported the idea of fomation of a free trade area between Mexico and Brazil, the two biggest economies of Latin America.
Calderon says that he's enthusiastic about the idea of a deal proposed by Brazilian business executives to push for a commercial accord for the two nations.
Calderon made the comments Saturday in Sao Paulo at the start of a three-day visit to Brazil. He will tour installations of Brazil's state-run oil company Sunday and will meet on Monday with Brazilian President Luiz Inacio Lula da Silva.
The Mexican leader says a free trade accord could help both nations because the economies of Brazil and Mexico generate more than 70 percent of all economic activity in Latin America.

Qatar acquire 17% Porsche stake

Qatar Holding has announced it will acquire a 17 percent stake in Volkswagen AG, which is merging with Porsche, in a deal that will exceed $10 billionhis comes after the Porsche and Piech families said it will sell a 10 percent stake of their shares to the Gulf company.
In a statement released late Friday, Qatar Holding said it will now be the third largest shareholder in VW, after Porsche and Lower Saxony.
The purchase follows the UAE's Aabar Investment acquisition in March of a 10 percent stake of Daimler AG, famed for its Mercedes-Benz brand, indicating continuing Gulf interest in the European automotive sector despite the economic downturn.
The statement says Porsche will also establish research facilities in Doha as part of the deal..

A SUPER COOL 52 INCH LCD FOR $9.99?

O man!!1 This is hillarious.Few if any of the deals retailers have offered online during the recession has been as good as Best Buy Inc.'s sale price of $9.99 for a 52-inch TV Wednesday. But it quickly turned out the offer was too good to be true.
he electronics retailer said it will not honor the $9.99 price posted Wednesday morning on its Web site for a 52-inch Samsung flat-screen TV. By early afternoon, the TV was listed at $1,799.99, almost half off the original $3,399.99 price.
Bloggers and Twitterers lit up the Internet with posts about the offer, some insisting Best Buy must honor it, others making jokes.
Best Buy, based in Richfield, Minn., said it has corrected an online pricing error and will not honor the incorrect price. Orders made Wednesday morning at the incorrect price will be canceled and customers will receive refunds, the company said.
Best Buy did not immediately return a call for additional comment.
Shares fell 27 cents to close at $36.50 Wednesday.Well ,of course,what else do you expect for such a small, little, tine, toony mistake?

GOOOOOD NEWS!! Hong Kong recession ends as economy grows 3.3 pct

HEYY PEOPLE!! I am so happy that after the previous not-so-good post, I get to post some good news. And here it is : Hong Kong's economy hasbroken out of a yearlong recession in the second quarter as the territory benefited from strong growth in mainland China andThe pickup adds to the list of economies in Asia and beyond to emerge from recession or shrink at a less-horrible pace since the banking crisis sent global production and demand plunging last year. Both Germany and France resumed growing last quarter. better conditions in the West, the government of Honk Kong said on Friday.
the southern Chinese territory's economy, slammed four straight quarters by free-falling world demand for exports, grew by 3.3 percent on a seasonally adjusted quarter-to-quarter basis, the government said. The economy contracted 4.3 percent in the first quarter.
"While we are seeing some light at the end of the tunnel, I should warn that the outlook remain highly uncertain because the situations in the United States and Europe are still very weak," said government economist Helen Chan.(heyy!!! that is being a typical economist:) )
Exports dropped 12.4 percent in the second quarter compared to the same period last year, the government said. That was tamer than the nearly 23 percent drop-off in the first quarter.
Hong Kongers were also more willing to spend. Private consumption was up 4 percent from the previous quarter, though still down 1 percent from the same period last year.
Hot money had been flooding Hong Kong over the last year, chasing equities, real estate and other assets, ever since central banks began freeing up funds and governments spent more to help their economies.
The southern Chinese trading and financial center, Merrill Lynch said in report, has become a " dumping ground for global liquidity" -- helped by China's hunger for non-dollar assets, lower U.S. interest rates and global demand from investors for all things that are made in China.

Consumer prices flat in July as energy retreats

U.S. consumer prices were flat in July as energy costs retreated following a big surge in June. Over the past 12 months, prices dropped the most in nearly six decades as the recession and lower energy costs kept a lid on inflation.
But hold on, people!! Is it even something to worry about? Well,Some economists have expressed concerns that the economy could be headed toward a dangerous period of falling prices, something the U.S. has not experienced since the Great Depression of the 1930s. However, most analysts believe the Federal Reserve has responded aggressively enough to battle the current downturn and prevent outright deflation.
n July, energy costs fell 0.4 percent after having surged 7.4 percent in June, which reflected a big rise in the cost of gasoline and other energy products.
Gas prices, on a seasonally adjusted basis, fell 0.8 percent in July. The average price at the pump is $2.65 per gallon, up from $2.50 a month ago but well below the record high of $4.11 hit a year ago.
Food costs dropped 0.3 percent in July reflecting declines in a number of categories led by a 0.6 percent fall in the cost of dairy products.
Wal-Mart Stores Inc. on Thursday reported its first-ever drop in same-store sales for its overall U.S. business for the quarter. The world's largest retailer said a big factor was price deflation, primarily in grocery products like dairy.
Airline fares rose 2.1 percent in July, while clothing costs jumped 0.6 percent. (Source:Yahoo News)

Make money by driving YOUR OWN car

Can we really do that? I mean it sounds too good to be true, right? But yes, this is the truth. While perusing an article about trying to make money in the recession-stricken times, I found this idea. The article said that by allowing different companies to paste their own sticker on your car's body, you can earn up to $900. Well, to be honest, in my part of the world, I have never heard of such stuff except for a van fully painted in U-fone logo, which frequents my area but does not that sound a good idea?

Investors finally find good news on unemployment

The economy's most vexing problem, unemployment, is showing the first signs of easing. And Wall Street is celebrating.
Major stock indexes jumped more than 1 percent Friday after the government said the nation's unemployment rate unexpectedly fell in July for the first time in 15 months and that employers cut fewer jobs. Bond prices fell, driving yields higher as investors left the safety of Treasurys.
The Labor Department report handed investors the best evidence yet that the economy could be climbing out of the recession. Analysts widely consider unemployment the biggest obstacle to a recovery in the economy, which is driven by consumer spending
The government said employers shed 247,000 jobs in July, the fewest in a year. Economists had expected 320,000 lost jobs. The unemployment rate dropped to 9.4 percent from 9.5 percent in June, rather than rising to 9.6 percent as forecast.
"It really gave the market the proof that it needed to see," said Burt White, chief investment officer at LPL Financial in Boston.
JUST TO TELL YOU I COPY PASTED ALL THIS COZ I FEEL LAZY
I WILL PROVIDE LINK TO THE NEWS
http://http://finance.yahoo.com/news/Investors-finally-find-good-apf-2848453904.html?x=0

A SCHOOL'S INITIATIVE

I have studies all my primary classes at SLS School and it's name always brings to me an unsuppressable feeling of nostalgia. After all, it was my first ever school. But what sets my school really apart is their 'KEHAKSHAN'. What is KEHEKSHAN, you ask? Well, it is a initiative to educate the poverty stricken kids of the neighbourhood for free. When it was started, I ,to be honest, was skeptical about the quality of education that would be given. After all, I thought, it is a very harsh reality that beggars are never choosers but I was pleasantly surprised to find out that it was at par with the education given to the regular students who payed exorbitant fees and that says something because the school has stellar academic reputation. I ,always grumbling about the quality of education in my country, see this initiative as a paradigm for other schools to follow and thus help to alleviate the biggest problem we face today. GOOD GOING SLS

AMERICAN TAXPAYERS MONEY GOING TO PORN????

While the heading of today's post may raise some eyebrows but this is really the truth, at least partially. Many of you might be conversant with the futility of the Obama plan, but only some of you might be aware that the tax payers' money is also going to support thr highly controversial National Endowment for Arts which allegedly churns out porn. One of the organisation's projects is, apart from many other embarrasing things, a highly erotic movie which might give a porno run for its money. Although, the fine line between art and pornography has not only been debated in the past but also capriciously shifted from one end to the other, it is the idea that taxpayer money is being spent on something as contemptible as porn is what makes the issue highly scandalous. Do we have another political earthquake brewing for the Obama folks?

.....AND NOW SOMETHING TO LAUGH YOUR HEADS OFF

I have been going on rambling about some very grave news in the previous days but here is something to cheer you all up. I found this article while surfing around the net and it has to be one of the funniest articles I have read till date.If you want to have some goog laughs then go to http://http://finance.yahoo.com/career-work/article/107451/10-promotional-stunts-that-horribly-backfired.html?mod=career-leadership. It was such a pleasure to read the funny advertisment campaigns that such respectable and renowned firms have done. I will never forget Sandisk's naive attempt to earn a market share; it sure was FUNNY!!!

Stocks pull off lows following report on housing

Stocks are paring early losses as investors cheer a report showing more signs of healing in the housing market.
The National Association of Realtors says pending home sales rose for a fifth straight month in June. The results were far better than analysts expected.
Stocks pulled off their lows and traded mixed following the report. The market was slightly lower in early trading, following declines on overseas exchanges.
Still, the market's reaction to the report was generally muted, a sign that investors have come to expect the signs of slow improvement in housing.
The Dow Jones industrial average is up 5 at 9,291. The Standard & Poor's 500 index is down 2 at 1,000, while the Nasdaq composite index is down 6 at 2,001.
*(Source:Yahoo News)

OIL SOARS TO $70

Oil prices soar to a $70 high after consumers have renewed confidence that economy is improving.The positive manufacturing industry research reports have helped boost investor confidence causing the the oil prices to rise.Many now believe that the worst part of recession is over and there might be recovery just round the corner.Now isnt that a good news?

Japan's way to combat the growing unemployment

Just minutes before, I was watching a programme on CNN which showed Japan intuitive measures to overcome the harms of unemployment.Say Hello to Hello Work!!! That's right, Japan's new initiative includes these places where the unemployed can not only register to get unemployment benefits but also receive Job training.The administrators said that all sorts of jobless people were getting trained there; from motor company employees to office workers,everybody is there to learn some new tricks.This ensured that the jobless people get, at least, some of their pay to feed their families. While Japan's economy has been synonimous for some time with economic slowdown, the worlwide slowdown has hit it hard,causing exports to plummet down. Let us see whether these Hello Work centres actually Hello jobs in the future!

PM's ambitious dreams!!!!!!

Today's latest news is our esteemed PM has asserted that he wants the country's literacy rate to be 100% 15 years fro now.One thing is for sure,our PM sure loves bright students. Anybodywho has seen the prize giving ceremony of the matric high achievers can attest this fact. But then, dont you think that this claim is too far fetched? One might as well start believing that the recession is going to end completely in the next few minutes.
Although,this statement shows that our PM wants our literacy rate to improve but the assertion itself is extremely difficult to achieve.Unless, Mr.president is planning to sell everybody he has and ask every country for aid(which is, of course, his favourite past time),it remains an utter impossibility - especially with the time frame given.Although, nobody is going to be happier than me if that were true.Lets hope, a miracle happens and what Mr.Gillani has said comes true:)

Samsung mobile phones sales increase by 14 percent in Q2

Day before yesterday,Samsung announced its quarterly financial report and the company obviously finds itself in a very good spot with each of its divisions' profits on the rise.
The consolidated operating profit for the quarter has been about 1.42 billion euro, marking a 5 percent increase year-over-year and 436 percent rise over the previous quarter.

The sales of mobile handsets have increased 14 percent quarter-over-quarter to 52.3 million units in the second three-month period of the year. Another good news is the 2 percent increase in the average sales price for Samsung handsets, suggesting a larger number of high-end devices sold.

Samsung are estimating that the world economies are starting to shake off the financial crisis consequences and expect the handset demand to increase by 5 percent in Q3. This seems pretty bold compared to the far more conservative predictions of most competitors for continuation of the hard market conditions.

The South Korean company expects to continue to gain market share by expanding its product lineup and through close partnerships with mobile service providers.

Samsung even forecast that even with the current market conditions it will exceed its full year sales target of 200 million units. Now certainly if the trend of Samsung outperforming the market goes on for a while longer we might just have a new market leader in the coming years.
For all you,numerophiles (if that is even a word) I will also post the link to the samsung's officially released report.http://www.samsung.com/us/aboutsamsung/news/newsIrRead.do?

THE BIG FAIL

tate regulators shut down seven regional banks Friday, the Federal Deposit Insurance Corporation said, bringing the total number of banks to fail in the United States to 64 this year.
Six of the banks that closed were subsidiaries of one larger bank, the Security Bank Corporation, based out of Macon, Ga. So far in 2009, 16 banks have failed in Georgia, more than in any other single state.
The State Bank and Trust Company, headquartered in Pinehurst, Ga., will take over all of the deposits of the six bank subsidiaries that failed. As of March 31, the six subsidiaries had total assets of $2.8 billion and total deposits of approximately $2.4 billion.
The six failed Georgia banks had a total of 20 branches, and the branches will reopen Saturday as branches of State Bank and Trust Company.
Earlier in the evening, Waterford Village Bank, of Clarence, N.Y., was shut down, and the FDIC was named the receiver. Evans Bank, N.A., headquartered in Angola, N.Y., took over all of the deposits of the failed bank.
It makes sense,doesnt it?The smalller banks give out loans to smaller firms and lenders who are more prone to recession and stuff.So,it is easy to see that the banks were mostly small.However,this closure is costly as it would cost the FDIC $812.6 million,bringing the total cost for failed banks to $14.6 billion as compared to $17.6 billion in all of 2008.So,apparently,this is no ha-ha business.

Stocks pull back a bit after prior day's big jump

After crossing the high 9000 psychological marker,stocks are slightly lower in the early friday market.Stocks are slightly lower in early trading Friday, as disappointing earnings news from companies like Microsoft Corp. and Amazon.com Inc. weigh on the market.
Microsoft shares dropped more than 7 percent after the tech giant said late Thursday its revenue fell short of analysts' expectations. Amazon.com also reported weaker-than-expected sales, and its shares fell more than 6 percent in early trading. (Source:Yahoo News)

Although the theme had been one of consistent reports of increased earnings by the companies,these had been achieved more by agressive cost-cutting strategies than increased sales but still, expectations that a recovery in the next quarter is iminent have not abated.

US leading economic indicators rise more than expected in June, 3rd straight monthly increase

"More plans to build homes, higher stock prices and fewer people filing first-time claims jobless aid sent a private-sector forecast of U.S. economic activity higher than expected in June.
It was the third straight monthly increase for the New York-based Conference Board's index of leading economic indicators, and another sign pointing toward the recession ending later this year.
The index rose 0.7 percent last month. Wall Street analysts polled by Thomson Reuters expected a gain of 0.4 percent."(Source:Yahoo News)
People,and here is the good news,it is also said that the figures in themselves(as always) do not signify that recession is over but do send a positive message that we can expect a slow recovery this autumn.Now aint that a thing to party about?

BROADBAND GAINS TRACTION DESPITE ECONOMIC CRISIS

More people worldwide are subscribingto high-speed internetconnections,despite the economic downturn,with China and other Asian countries among the world leaders. This was indicated in a study released at the CommunicAsia 2009 trade fair in Singapore last month.
The study showed that the number of broadband lines grew by 16.6 million globally in the last quarter alone to more than 429 million. I t said that broadband penetration in 20 countries grew by 10% or more in the first quarter from the previous three months,with the biggest rise coming from India at 13.4%.Sure,all this goes on to show the importance given to broadband that even at these harsh times, broadband continues to excel. (Source:Yahoo News)

I know I should have posted this post before sony ericsson(think it would have made a better comparison) but nevertheless here I go.Well when the report of Q1 came out,I had not started this blog,so, for the uninitiated I would like to tell that Nokia saw a 90% decline in Q1 and things looked gloomy.Now as the report for Q2 came out, things look a little flashier than before.
The numbers are showing sings of recovering from the shock of the recession - their operating profit went up by almost 51% and their estimated market share increased a percent to 38%. The total number of phones they shipped was just over 103.2 million, a healthy improvement over the 93.2 million the previous quarter.
Reading through the report shows that things are improving since the begging of the year but they are still not as good as they used to be. Net sales for the quarter rose 7% from last quarter's 9.28 billion, but are 24.6% lower than those for the same period last year. Operating profit has also shrunk by 71% from the same quarter the previous year, but compared to Q1's 90% it's not as abysmal.
Geographically, sales for the quarter went up by about a third in the Middle East and Africa, as well as Latin America compared to Q1. The other regions saw a more moderate increase of between 4 and 7 percent, the only exception being North America, where Nokia sales were down by 5.9% .
The Average Selling Price went down to 62 euro from the 65 euro from the previous quarter, which Nokia explain with increased production of lower-end phones. In an attempt to counteract this, they've began shipping their flagship smartphone the Nokia N97, their flagship imaging phone - the N86 8MP, and finally, their flagship email-oriented phone - the E75. In other words - Nokia is gearing up retake some turf at the high end, too.
Here are all the numbers a nd flashy words if anybody wanna see.
http://http://www.nokia.com/about-nokia/financials/quarterly-and-annual-information/q2-2009

Sony Ericsson summarizes Q2 financially, loses more ground

While nokia's position improved a little relative to Q1 but sony ericsson's position is definitely not stable. Just as planned, day before yesterday, Sony Ericsson announced their Q2 financial results. The times are getting tougher and tougher for them it seems, the number of units shipped fell 5% compared to the previous quarter (and they weren't spectacular then, too).
The good news is, the Average Selling Price went from 120 euro to 122 driven by a "more favourable product mix", which resulted in 4% higher gross margin. This wasn't enough though - the net loss was 213 million euro (the fact that this is better than the loss of 293 million the previous quarter is hardly any consolation). The reason for this, according to Sony Ericsson lays in the challenging market conditions, with Latin America being singled out as particularly tough.
Sony Ericsson are trying to handle the situation, their programs for reducing expenses are on track and the restructuring charges related to those programs are within the expected bounds. Part of those cost reduction programs included reducing the global workforce by 2,350 workers.
By Sony Ericsson's estimates, their market share is slightly more than 5 percent.(figures from GSMARENA.COM) The company admits that they need to turn things around and grow financially if they are to retain their Tier one manufacturer status.The company even expects a global mobile market contraction of 10% throughout this year.
Catch the full numbers and statements here:http://http://www.sonyericsson.com/cws/corporate/press/pressreleases/pressreleasedetails/q209financialpressrelease-20090716

BofA posts 2nd-quarter profit of $2.4 billion, beating Street, in sign banks may be recovering .http://http://us.rd.yahoo.com/finance/news/rss/story;_

of America said Friday its earnings after payment of preferred dividends were down at 33 cents per share compared with a profit of $3.22 billion, or 72 cents per share, a year earlier. The earnings beat the forecasts of analysts surveyed by Thomson Reuters, who forecast Bank of America would earn 28 cents per share.
Revenue rose to $32.77 billion, slightly below analysts' forecast of $33.1 billion http://us.rd.yahoo.com/finance/news/rss/story;_ylc=X3oDMTI1dWE4aGJsBFJfYWlkAwRSX2RtbgN5YWhvby5jb20EUl9maWQDNTdhYTAxNTA5NGQxMDIzOGZiNjlmZTllMzNjNDMyOTQEUl9sdHADMQ--/*http://us.rd.yahoo.com/finance/news/topfinstories/*http://biz.yahoo.com/ap/090717/us_earns_bank_of_america.html

Weighing Price and Value When Picking a College

This article appeared recently in Wall Street Journal (http://online.wsj.com/article/SB10001424052970203739404574288301760990542.html) about the ever going debate whether elite and expensive universities are really worth it or a person can be as happy in attending a cheaper stste-run university?Basically,I would think it really depends on the person:if a person can afford to pay the heavy fees,then so be it,he should go to his dream school(provided he gets admission which is getting really tough these days,frankly).As I am an international,I would talk about International financial aid:schools like Yale provide full financial assistance)and there are some schools like Duke which provide financial aid according to demonstrated need to a few applicants .This increases exponentially the private rate of return to students who study in such excellent universities and as I discussed the news about Obama spending more on higher education,this is exactly what the esteemed president wants

RECESSION AINT THAT BAD ANYMORE?

Industrial companies cut back production yet again in June but not nearly as deeply as they have been, another sign the recession is easing its grip.
The Federal Reserve reported Wednesday that production at the nation's factories, mines and utilities fell 0.4 percent last month as the recession crimped demand for a wide range of manufactured goods, including cars, machinery and household appliances.
Well, due to diminished consumer appetites,industries were inclined to put more of their plants on closure,which made the overall operating rate at 62,a record low since 1967 but it looks a lot better now as these reports might help restor consumer's confidence and as Geithner urged middle-east to invest in US.Who knows? they might just comply!!It just constitutes a small step to make the prediction of economists of abating recession in Q3 true.

CONSUMER PRICES JUMP 0.7%IN JUNE

The government of US says consumer prices shot up in June by the largest amount in 11 months, reflecting the biggest jump in gasoline prices in nearly five years.
This was a little higher than the expected 0.6% predicted by economists.However,the big jump is only temporary as inflation is not going to happen in economies emerging out of recession.Although we can expect a substantial amount of infaltion when we are back on the road of economic growth but for now,given the high amount of cyclical or keynesian unemployment taking place which keeps a lid on wage price and,thus prevents wage price inflation.

RISING DEFICITS AND ....... WORRIES

The U.S. government rang up a $94.32 billion budget deficit in June, a record for the month, as the price tag for efforts to prop up the economy, banks and automakers mounted while revenues weakened.
Move down to the end of the article to get the link but I'll talk you through it anyway.Well as the situation stands,the US deficit is at a post WW2 high and that sure looks gloomy.While,June is usually a month which enjoys a surplus;it is after 1991 that it has experienced a deficit and that is saying something.While a panel of senior economists said last week that the economic crisis will end in Q3 of the fiscal year while others say the deficit is yet to climax at 1.5 trillion.But either way, the situation is uncertain enough to expect this deficit to go down overnight (who would be naive enough to think that?) but as I say lets hope the clouds of doom go away quick enough.

BIG NEWS FOR EDUCATION IN US

I was going through my daily dose of news when I saw this news and this is a biggie.President Obama announced a $12 billion plan for community colleges in an effort to aid the United States towards its goal of highest proportion of graduates by 2020. Now that is what we call ambitious.For the complete story,visit http://http://news.yahoo.com/s/nm/20090714/pl_nm/us_usa_education_obama.Yes I have given up the practice of copying the whole story to my blog as it is time consuming and did not go well with a visitor to the blog.So I will only post links.Whoa!I wish our government did something similar as ourhigher education system is mourning its downfall.But then again we are not America,we are Pakistan. Wish I had that kind of power,then I would make the educational system my first priority.Listen everyone! Pakistan can not flourish until we get good education.Is not the vision to see pakistani people getting good education reason enough to live, to strive,to put forward one's life. For me it is!

TOP UNIVERSITIES

I am about to apply to universities for undergraduate study.So,I have been doing some research about the universitites.Now,for the uninitiated (as I was some while ago),a good place to start is at the Times Higher Education rankings.Not only will it give you information about the top universitites of the world but it also serves as a good index for universities (I admit I didnt know at least 90% of the universities listed) so it helps you to explore new options for your higher education.The link ishttp://www.topuniversities.com/worlduniversityrankings/results/2008/overall_rankings/fullrankings/
Remember all of the universities in the website are the world's best and you would get good education in them. Instead,try to focus on a university that fits your personality so you would be happy there.