2. RBI to raise rates by 75 bps in 2011:
Deutsche
•The central bank is likely to resume its rate tightening cycle
in January and raise key interest rates by another 75 basis
points
•The central bank would like to push inflation below 5 per
cent in the medium term," Deutsche said.
Deutsche Bank expects inflation to stabilize around 6 per
cent levels next year, and for real interest rates to be
comfortably positive, the repo rate needs to be at 7 per cent
3. Google terminates employee for leaking
salary hike plan
• Google has fired an employee who leaked its plans to
give a 10 per cent salary hike
• Google CEO Eric Schmidt had written an email to
employees about the salary hike plan, which was leaked
to the media by an employee
• The planned pay hike comes as Google steps up its
battle with competitors like Facebook Inc to secure
talented staff
4. Kelloggs to launch more affordable
products in India
• Breakfast food-maker Kelloggs plans to introduce more
affordable products targeted at the mass market
segment to penetrate deeper into India
• Targeted at males over 35 years of age
• Other FMCG giants like Britannia and GSK Consumer
Healthcare have also expressed their interest in getting
into the Indian breakfast cereals market
5. Pak to import vegetables from India due
to crop loss
• Pakistan government has allowed import of vegetables
from India, amongst other countries, in a bid to tackle a
sharp rise in its prices
• Among the items whose import will be allowed through
the Wagah land border are green chilli, capsicum,
cabbage, radish, ladyfinger, cauliflower, ginger and
carrot.
Payment for imports will be made in accordance with
procedures, including those for acquisition of letters of
credit from specified banks, laid down by the State Bank
of Pakistan.
6. Power Grid FPO fully subscribed in retail
portion
• Power Grid Corp of India's share sale worth up to $1.7
billion was fully subscribed in the retail portion
• The strong response to the FPO is on the lines of that
seen when the company had come out with its IPO in
September 2007
• The fall in the share price was attributed to the wide
discount between the current market price and the FPO
price
• Power Grid's FPO is part of the government's plan to
raise Rs 40,000 crore in the current financial year
through divesting stake in various PSUs
7. G20 leaders vow to curb protectionism
• No competitive devaluation or protectionism
• Exchange rate flexibility and reserve country caution
against monetary policy that would set off destabilizing
capital flows to emerging markets
• Positive for developing nations
“We will move towards more market-determined
exchange rate system and enhance exchange rate
flexibility to reflect underlying economic fundamentals
and refrain from competitive devaluation of currencies,”
the declaration said
8. PM meets Ethiopian, Mexican & British
govt heads
• Big bilateral meeting of the day is, of course, the one
between US president Barack Obama and his Chinese
counterpart Hu Jintao
• Indian delegation is clear that there is as yet no
commonly shared diagnosis of the world’s economic ills
and how to establish balance between surplus and
deficit countries
• India held an India-Africa summit in February 2009 and
the next one is slated for 2011 in Africa
• India is doing quite a few things by way of capacity
building in Africa
