NEWS ABSTRACTS
From MCCIA
International & National Business and Economy
Updates
For the week ended on 16th February 2013
Dear Members,
In an ongoing effort to add value to the SMEs and other business units,
the Chamber during the week organized a few programs that were
designed according to the industry requirements.
MCCIA in association with the Indian Red Cross Society arranged for a
certificate course in “Basic first aid at workplace”. For our members from
the Agro sector we had a seminar on “Agri Food Processing for value
addition’’. We had an intensely interactive program on “India MSME
Darshan”, This program was orgnised with an objective to understand the
latest issues, problems and perspectives of entrepreneurs. The workshop
on “Getting started with exports: Foreign trade policy, procedures,
documentation and incentives available under foreign trade policy”, was
well attended.
We also had a one to one meeting with an official from the Consulate
General of the Netherlands in Mumbai. Another event was organized on
preparing for IT business with Germany and Switzerland. We had a very
interesting session on “Workplace Turbulences – Lessons for HR/ IR” by
Dr. G. Manjunath, Deputy Labour Commissioner, Government of
Karnataka. The introductory course on “Electrical preventive maintenance
& best practices” was well appreciated by our participants.
We always look forward to your suggestions and feedback. Kindly read
through the weekly updates on the national and international economy
with “NEWS ABSTRACTS from MCCIA”.
ANANT SARDESHMUKH
DIRECTOR GENERAL
INTERNATIONAL ECONOMY AND BUSINESS NEWS
Eurozone recession deepened at end of 2012
The eurozone recession deepened in the final three months of 2012, official figures
show. The economy of the 17 nations in the euro shrank by 0.6% in the fourth quarter,
which was worse than forecast. It is the sharpest contraction since the beginning of
2009 and marks the first time the region failed to grow in any quarter during a
calendar year. It followed news that the economies of Germany, France and Italy had
all shrunk by more than expected.
Japanese economy contracts for third straight quarter
Japan's economy contracted for the third straight quarter in the three months to end
of December, underlining the challenges the new government faces in reviving
growth. The economy shrank 0.1% compared with the previous three months. Most
analysts had forecast growth of 0.1%. That is equivalent to an annualised dip of 0.4%
in gross domestic product. Japan's growth has been hurt by a drop in exports to key
markets as well as subdued domestic consumption.
UK retail sales fall unexpectedly in January
UK retail sales fell unexpectedly in January, confounding economists' expectations
for a rise. Volumes fell 0.6% from December 2012, hurt by heavy snowfall, the office
for National Statistics said, Volumes also fell 0.6% from a year ago, the first annual
fall in 17 months. The ONS highlighted weak sales in the food sector, which dropped
2.6% year-on-year to the lowest level since April 2004. It also said small stores had
fared worse than large stores.
Consumer Sentiment in U.S. Increases to Three-Month High
Consumer confidence in the U.S. rose in February to a three-month high, which may
help to preserve recent gains in household spending. Consumer confidence in the U.S.
rose in February to a three-month high, which may help to preserve recent gains in
household spending. Increased property values, a strengthening job market and
stocks at five-year highs are providing a boost to Americans’ balance sheets. A pickup
in wealth would help make up for recent gains in gasoline prices and the hit to takehome pay from a two percentage-point increase in the payroll tax.
Spanish Core Inflation Up Even as Recession Deepens
Spain’s core inflation rate accelerated in January as the deepest austerity measures
in the nation’s democratic history sustained price increases while pushing the
economy deeper into recession. Core inflation which excludes energy and fresh food
prices, accelerated to 2.2 percent in January, the National Statistics Institute in
Madrid said today. That’s more than the 2.1 percent median of four forecasts in a
Bloomberg survey. Underlying prices fell 1.6 percent from the previous month.
Spain, the euro area’s fourth largest economy, is headed for a second straight year of
recession as Prime Minister Mariano Rajoy’s tax increases and spending cuts
undermine domestic demand.
INDIAN ECONOMY AND BUSINESS NEWS
Exports up 0.8% in January, imports rose 6%
India's exports rose an annual 0.8 percent in January and imports for the month rose 6
percent, leaving a trade deficit of $20 billion, a senior trade ministry official said on
Wednesday. Exports between April and January fell 4.9 percent to $239.7 billion.
India's exports have fallen since last year as demand slowed from major sales
destinations, adding to the country's economic gloom and heightening worries about
its trade and current account deficits.
Govt raises gold import duty, hopes for a fall in demand
Finance ministry Monday raised the import duty on gold and platinum to 6 per cent
from 4, and announced measures to augment domestic supply of the yellow metal. "It
is difficult to establish the impact on the current account deficit (CAD), but there will
be some moderation in the demand for gold, not only from the import duty increase
but also due to unlocking gold from the ETFs," said Arvind Mayaram, secretary,
department of economic affairs. Gold prices rose by Rs 315 to Rs 31,250 per 10 gm in
Delhi following the announcement. Chidambaram had earlier this month hinted at a
possible increase in the customs duty for gold imports, which are a big drain.
Inflation jumps to 10.79% in January
Rising for the fourth consecutive month, retail inflation remained in double digits at
10.79 per cent in January, driven by higher prices of vegetables, edible oil, cereals
and protein-based items. The retail inflation had stood at 10.56 per cent in
December, 9.90 per cent in November and 9.75 per cent in October, 2012. The
vegetables basket in January recorded the highest inflation of 26.11 per cent among
all the constituents that make the Consumer Price Index (CPI), according to data
released today.
India needs an extra 200 bn rupees to implement food security bill
India needs an additional 200 billion rupees ($3.72 billion) to implement its proposed
Food Security Bill, Food Minister K.V. Thomas said on Thursday. The current cost of
the food subsidy is 1 trillion rupees, he added. India is drafting the bill, which when
enacted would ensure subsidized grains to the poor. The bill was introduced in the
lower house of parliament in 2011.
Sensex down 39 points amid weak trend in world markets
The BSE benchmark Sensex today fell over 39 points in early trade as selling by funds
and retail investors amid a weak trend in global markets. The 30-share barometer fell
by 39.26 points, or 0.20 per cent, to 19,457.92. The index had lost nearly 111 points
yesterday. Stocks of realty, auto, banking and power sectors declined on increased
selling. Similarly, the wide-based National Stock Exchange index Nifty fell by 18.90
points, or 0.32 per cent, to 5,878.05.
Rupee up 6 paise Vs US dollar in early trade
The rupee today gained six paise to 53.86 against the dollar in early trade at the
Interbank Foreign Exchange on fresh selling of the US currency by exporters. Forex
dealers said strengthening of yen against the dollar overseas also supported the
rupee. The local currency had lost 10 paise to close at 53.92 on yesterday due to
renewed dollar demand. Meanwhile, the BSE benchmark index Sensex fell by 39.26
points, or 0.20 per cent, to 19,457.92 in early trade today.
Gold recovers on modest demand, silver declines
Gold prices recovered after three-session losing spree at the bullion market here
today on modest low-level buying interest from traders and retailers. Silver,
however, declined following speculative selling on the back of reduced industrial
demand. Standard gold of 99.5 per cent purity rose by Rs 70 per 10 gm to end at Rs
30,280 from Wednesday's closing level of Rs 30,210. Pure gold of 99.9 per cent purity
also gained Rs 70 per 10 gm to conclude at Rs 30,415 from Rs 30,345. However, silver
ready (.999 fineness) fell by Rs 130 to close at Rs 58,220 per kg from Rs 58,350
yesterday.
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