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Starred Articles

No Cliffhanger for the US economyCorporate> USA

The American Taxpayer Relief Act of 2012, which includes a rare increase in taxes on the wealthiest householdsin US, was approved by the US Congress. The tax rates would rise to 39.6 per cent from 35 per cent for

individual incomes more than $400,000 and couples more than $450,000, while tax deductions and credits

would start to be phased out on incomes as low as $250,000. This bipartisan budget deal will prevent the

world's largest economy from falling into another fiscal crisis.

Background:

A package of significant tax cuts, first enacted under President George W. Bush expired in December 2012. As

the marginal tax rate was reduced from 39.6 per cent to 35 per cent by these cuts, after these cuts expired tax

rates would have increased in January 2013.

The Budget Control Act of 2011, effective from January 2013, would automatically cut or sequester the

government spending if it would exceed the budget resolution.

This increase in taxes coupled with spending cuts in the budget would have resulted in reduction in the US

Budget deficit and would have pulled the nation dependent on financial stimulus into another official

recession. So the US Congress debated about the measures to make the deficit larger by reducing taxes or

increasing spending.

By signing the American Taxpayer Relief Act of 2012, the US has successfully avoided the conundrum. Although

the bill is passed on 1stJanuary 2013, the passing of this bill is backdated to help the US to technically avoid

going over a "fiscal cliff.

Kingfisher Airlines loses license to flyIndia >AviationThe troubled Kingfisher Airlines has lost its permit to fly after a deadline to renew its suspendd license expired.

Directorate General of Civil Aviation Arun Mishra said Kingfisher Airlines has failed to provide additional details

on the funding of operations in reference to Kingfishers reinstatement plans submitted to the DGCA last

month. Recently, the troubled airline said it was in talks with Etihad Airways and other investors to take a stake

in it. The Vijay Mallya owned Kingfisher airlines has made losses for 5 years in a row and it is $1.4bn in debt

and has been unable to pay staff, airports, tax authorities and its lenders. Meanwhile, 17 member consortium

met in Bangalore to discuss the companys turnaround plans amidst demands by the staff to sell assets and pay

them their dues.

Pre-Trial Proceedings to start for the Delhi Gang - Rape caseIndia> CrimeA Delhi court today acted on the chargesheet filed by the Delhi Police on the Gang Rape case. Five of the

accused have been booked for murder, attempt to murder, gang rape, unnatural offences, causing hurt in

committing robbery, dacoity, dacoity with murder, destruction of evidence, common intention and dishonestly

receiving stolen property. Two of the accused, Pawan Gupta and Vinay Sharma expressed their wish to become

prosecution witnesses but the police said that they had doubts on the reliability of the accused.

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JanThe sixth accused, who is a juvenile, will be tried before a Juvenile Justice Board. He will attain majority in 5

months. With older Juveniles getting away, there is a demand that the Juvenile Justice Act needs to be

amended.

As an answer to the demands from various quarters, the UPA government has decided to implement all the

recommendations of the Justice Malimath Committee and tighten laws on sexual assault in an attempt to make

the criminal justice system more efficient.

Hate Speech accused Akbaruddin Owaisi arrestedIndia>Andhra PradeshThe Andhra Pradesh Police have arrested hate speech accused Majlis-e-Ittehadul Muslimeen MLA Akbaruddin

Owaisi. The police have registered four cases against Owaisi, the MLA of Chandrayangutta constituency in

Hyderabad, on charges of promoting enmity between different groups and waging or attempting to wage war

or abetting waging of war against the government of India. Owaisi had allegedly delivered an inflammatory

speech on Dec 22 last year in Nirmal Town of Adilabad district against a particular religious community. He had

been remanded to a 14-day judicial custody by a magistrate court in Nirmal Town. Owaisi had previously been

accused on many occasions of delivering communal speeches against the Hindu community.

Arjun Munda recommends dissolution of Jharkhand State AssemblyIndia>JharkhandJharkhand Chief Minister Arjun Munda has recommended the dissolution of the state assembly to Jharkhand

Governor Syed Ahmed. The Shibu Soren led Jharkhand Mukti Morcha (JMM) met the governor and officially

withdrew support to the Bharatiya Janata Party. The Munda government has technically become a minority

after the JMM withdrew support. With JMM withdrawing support, the BJP-led NDA government has the

support of only 26 MLAs in the 81 member assembly.

Background:

The political crisis started when JMM chief Shibu Soren wrote to the Chief Minister Arjun Munda on 25th

December asking him to hand over the Chief Ministers post to JMM as part of a 28 month power sharing deal.

However, Munda denied in writing that any such deal had happened at the time of forming the government

and refused to step down stating that the government has to take a decision keeping the stability of the state in

mind. The BJP had firmly stated its support to Munda and dismissed any such claims of a power sharing deal.

Messi wins Player of the Year Award for the 4th

consecutive timeSports> SoccerArgentine football great Lionel Messi won the FIFA Balon dor the FIFA Men Player of the year Award for the 4th

consecutive time. This came as an expected achievement for the 25 year old, who had an astounding year with

91 goals for Argentina and Barcelona in 2012. Messi beat Christiano Ronaldo of Spanish champion Real Madrid

and Barcelona teammate Andres Iniesta to win the trophy. Messis fourth award broke former records of

soccer legends Brazils Ronaldo and Frances Zinedine Zidane who had each won the FIFA Player of the Year

award thrice.

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Train fares to go up from January 21st

midnightIndia> RailwaysRailways Minister Mr. Pawan Kumar Bansal announced today that train fares will go up from January 21st,

Midnight. The increase ranges from 2 paise per kilometre for second class ordinary (suburban) trains to 10

paise per km for AC 1st class trains. Usually the hike in train fare is announced during the Railway Budget.

However the Railway Minister said that this was the need of the hour as fares have not been increased for a

decade and the railways had incurred a loss to the tune of 20000 crores in 2010 -11. The fare hike is expected to

contribute 6000 crores to the railways.

Pakistani Troops behead and mutilate two Indian soldiersIndia> LOCIn a major disruption of the ceasefire agreement that has been in force since 2003, Pakistani troops entered

Indian territory, and beheaded an Indian soldier and mutilated his counterpart before killing him. India has

termed the incident ghastly, inhuman and unacceptable and asked the Pakistani government to immediately

investigate the matter. Indian Foreign Secretary Ranjan Mathai summoned Pakistan High Commissioner Salman

Bashir and made it clear that such events were unacceptable and Pakistan must uphold the sanctity of the Line

of Control. The attacks are seen as a clear attempt to disrupt diplomatic relations between the two countries

and an already slow moving peace process since the 2008 attacks in Mumbai.

Pakistan and India violate LOC normsPolitics and Government> Indo-Pak RelationsIn what is said to be the largest blow to Indo-Pak relations since the 2003 ceasefire, the last week has seen as

many as five soldiers losing their lives in cross-border firing.

It all started with the Indian Army accusing Pakistani troops for violating the ceasefire between the twocountries and mutilating the bodies of two jawans on December 8th2012. One of the jawans, Lance Naik

Hemraj was beheaded. In reply to this, Pakistan accused India of killing one of its soldiers in a cross-border

attack. The Indian army has released a statement saying that it did open fire on Pakistani troops but it had not

crossed the border.

The Pakistan government had summoned Indian High Commissioner Sharat Sabharwal about the Indian attacks

on Pakistani troops, calling them unacceptable and unprovoked. On 11 thJanuary 2012, Pakistani troops fired

across the LoC at five posts in the Krishna Ghati and Sona Gali sectors of Jammu and Kashmir. The Indian army

said that this was a Pakistani attack whereas the Pakistani army says that it was a counter-attack.

Firing was also seen in Nangitikri and Krishnagati areas in Poonch district of J&K. On 14thJanuary 2013, both

countries held a flag meeting at Chakan da Bagh in Poonch district along the Line of Control (LoC) in Kashmir.

The meeting which lasted thirty-five minutes, was the first on-ground contact between the two armies sincelast weeks tension. Pakistan agreed to the meeting after much persistence from India for the last four days.

Meanwhile, Indian martyr Lance Naik Hemrajs family went on a six day hunger strike which ended on 14 th

January 2013 after being assured by political forces that justice will prevail.

In response to the entire episode, Indian External Affairs Minister Salman Khurshid has said that India will

continue to make efforts to get to the bottom of the matter and that truth was a necessary ingredient of any

reconciliation.

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Apple penetrates into Chinese marketsCorporate>AppleChief Executive Officer of Apple, Tim Cook, has visited China twice in one year and has said that the Asian giant

will soon be taking over the United States of America as the largest market for Apple products in the world.

Currently China is the second-largest market for Apple products and the technology biggie sold more than two

million iPhone 5 handsets in just three days of it being launched in China, on 14th December 2012.

Cook has shown excitement in launching new products in China and has plans to launch a cheaper iPhone for

emerging markets in Asia.

Barack Obama, Hamid Karzai meet at White HousePolitics and Government> U.S. - AfghanistanAfghanistan President Hamid Karzai arrived in the U.S. on 11th of January 2013. His day began in the White

House with President Barack Obama discussing post-war relations between the two countries. The U.S. has

certain commitments towards Afghanistan which it will look to fulfill. The discussion also covered the number

and nature of NATO troops to remain in Afghanistan.

The two hour meeting was followed by lunch and then a short press conference. President Barack Obama also

discussed with President Karzai a schedule to bring all 68,000 American troops back to their homeland and the

future needs of Afghanistan to meet its own security needs.

In the press conference Obama stated plans of an anti-terror operation to get to the root of the Taliban and

eliminate Al-Qaeda. Obama discussed troops of 3,000, 6,000 and 9,000 for various post-war operations. The

White House suggested that Obama was looking to fast-track operations so that zero Americans remain in

Afghanistan.

Inflation slows to 3-year low, RBI may cut ratesEconomy> InflationAccording to Indias Commerce and Industry Ministry, the countrys overall inflation has fallen to a three -year

low, based on monthly wholesale price index. Currently, the countrys inflation stands at 7.18% as of December

2012. This may lead to a drop in interest rates to support faltering growth.

The Ministry also said that good news was in store as inflation has been showing signs of moderation,

especially in the manufacturing sector. This comes as a relief from the more-or-less stubborn inflation rates in

the past months. The government has also revised the October inflation number from 7.455 to 7.32%.

On the downside, retail inflation went back to double digits, according to the nationwide consumer price index.

Meanwhile, the RBI has tightened monetary policy to keep a check on sticky inflation but the rates will be

eased when it reviews its policy on January 29.

2 year high for SensexEconomy>Macro economyThe decision of the Finance Ministry to fasten the economic reforms process by modifying the General Anti-

Avoidance Rules (GAAR) has had a positive effect on the Stock Market. The SENSEX and NIFTY, both rose to a 2

year high.

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JanInvestors gained up to Rs 80,000 crore and were also pleased with relaxed inflation figures, which dropped to a

three-year low, that in turn raised chances of a cut in rates by RBI later this month.

Market experts and investors say that the tough decision to change the provisions of GAAR will also boost

foreign investment in India. Gautam Trivedi, MD & head of equities-India, Religare Capital Markets said that the

foreign investors are happy with the way the government of India is responding to their concerns.

The banking and finance sector saw company stocks soar, with HDFC up 1.9% at Rs 825 and ICICI Bank closing1.7% higher at Rs 1,185.

IT stocks also soared as the sectors stalwarts like Infosys and TCS performed very well in the first quarter

making high profit margins to gain bigger contracts. The Infosys stock gained 3.5% to add to its 17% gain on

11th January 2013 and close at Rs 2,807, while TCS was up 2.1% at Rs 1,334. The IT index on BSE was up 2.6%.

Infosys chief executive, S.D. Shibulal had something positive to say since June 2012, TCS said that it will surpass

Nasscoms revenue forecast of 11 to 14 percent growth for the year end of 31st March.

Urjit Patel takes charge as RBI deputy governor

Economy> RBIThe Reserve Bank of India has a new deputy governor in the form of Urjit Patel. Patel will be heading the

department of monetary policy which was earlier headed by Subir Gokarn.

Mr. Patel has been appointed as deputy governor for a period of three years, effective from 11th January 2013.

He will be joining the other three deputy governors namely K C Chakrabarty, Anand Sinha and Harun R. Khan.

Urjit Patel has a Ph.D. in economics from Yale University and an M. Phil from Oxford.Prior to his appointment as

the deputy governor of the Reserve Bank, Patel was adviser (energy & infrastructure), Boston Consulting

Group.

Pakistan SC orders arrest of Prime Minister Raja Pervez AshrafPolitics and Government> PakistanThe Pakistan Supreme Court on Tuesday ordered the arrest of Prime Minister Raja Pervez Ashraf on grounds of

receiving bribes in Rental Power Projects (RPPs) as Federal Minister of Water and Power. This is the second case

of a Prime Minister losing office in less than a year after the exit of Yusuf Raza Gilani in June 2012. The Pakistan

Supreme Court had, in March 2012, declared all RPP contracts as illegal and ordered authorities to take steps

against those involved in clearing the contracts including Pervez Ashraf.

Meanwhile, accompanied by thousands of supporters, Pakistani-Canadian Sufi cleric Tahir-ul Qadri launched his

Million-Man Long March from Lahore to Islamabad on Sunday. He said the march would mark the protest of

the Pakistani people against corruption and the oppression of the poor by those in power. Early on Tuesday,

Qadri had demanded the dissolution of the National and State Assemblies. The Supreme Courts recent order is

seen by many as an immediate reaction to Qadris demands. Soon after the Supreme Court issued the order,

Qadriss supporters cheered and welcomed the decision.

Tahawwur Rana, convicted of aiding terrorist outfit LET, sentenced to 14

years in prisonWorld> CrimeTahawwur Rana, a 52 year old Pakistani-Canadian and accomplice of convicted terrorist David Headley was

sentenced to 14 years of prison by a US Court for providing material support to the 2008 Mumbai attack group

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JanLET and helping plan an aborted plot to behead staff at a Danish newspaper. He was, however, cleared of the

more serious charge of helping plot the Mumbai attacks which resulted in the loss of 160 lives.

Convicted terrorist David Headley was the governments star witness in the trial. Pakistani -American David

Headley had earlier pleaded guilty of laying the groundwork for the Mumbai attacks and help plan the attack

on the Danish newspaper. During the trial, prosecutors had argued that Rana had allowed Headley to open

offices of his Chicago based immigration services in Mumbai which Headley used as a cover to survey sites andgain access to newspaper offices for the 2008 Mumbai terrorist attacks.

DLF to sell wind energy business for 900 croreCorporate> DLFIndias biggest real estate company DLF will sell its wind energy business to an unlisted firm, Bharat Light and

Power (BLP), owned and founded in 2010 by former General Electric President and CEO for India, Sri Lanka and

Bangladesh, Tejpreet Singh Chopra. DLF plans to first sell windmills that can generate up to 200 megawatts of

power. Assets that can generate another 28 MW of power will be sold later. The latest sale follows a string of

disposals done by the real estate giant in recent months to reduce its debt pile acquired in the past decade to

acquire large tracts of land, build hotels and develop real estates across the country. Last month, DLF

announced a deal to sell its stake in luxury hotel group Aman Resorts. Last year, it sold another hotel firm in

Kolkata and also a large land parcel in Mumbai.

Background:

DLF, founded by billionaire Kushal Pal Singh, has a land bank of 10,255 acres, the biggest in the real estate

sector. At its peak, its debt pile stood at Rs 23,000 crore. It hopes to end March 2013 with an overall debt level

of 18,000 crore.

Foreign Investment Promotion Board (FIPB) clears IKEAs investment

proposalCorporate >IKEAThe Foreign Investment Promotion Board has approved Swedish Home Furnishings Company IKEAs Rs. 10,500

crore investment proposal which the Board had earlier rejected in November 2012. This approval allows the

company to set up retail stores along with its popular cafes in stores and also increase its product categories in

India from 15 to 18. The Cabinet Committee on Economic Affairs will take the final call on the endorsement as

the FIPB can endorse investments upto Rs. 1,200 crore only.

Government hikes import duty on GoldEconomy> GoldImport duty on gold and platinum will now be 6% against 4% earlier. The government has also directed gold

exchange traded funds to park a part of their gold holdings with banks. It has also eased the terms of gold

deposit schemes of banks to encourage individuals to deposit some of their idle gold to partially meet the

demand through domestic sources. This move comes after Indias Current Account Deficit (CAD) widened to a

record 5.4% of gross domestic product in the first half of the current fiscal as gold and crude oil imports

remained high.

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Former Haryana CM Om Prakash Chautala and son sentenced to 10 years in

JailPolitics and Government> Teacher Recruitment ScamFormer five-time Haryana CM Om Prakash Chautala and his son Ajay Chautala were sentenced to 10 years of

rigorous imprisonment by a special CBI Court for illegal recruitment of junior basic trained (JBT) teachers. On

January 16, the court had held Chautala, his son and 53 others guilty of illegally recruiting 3,206 junior basic

trained teachers in Haryana in 2000. In protest against the judgement, over 600 supporters of Indian National

Lok Dal (INLD) chief Chautala clashed violently with the police outside the court.

Rahul Gandhi appointed Congress Vice-President, Rajnath Singh to replace

Gadkari as BJP chiefPolitics and Government>Political PartyThe Congress on 20 January appointed Rahul Gandhi as the vice-president of the Congress party, a position

that elevated him to the number two position in the party after mother Sonia Gandhi. The decision was taken

at the recently concluded two-day Chintan Shivir intended to create an agenda for 2014.

In another development, BJP party President Nitin Gadkari resigned after protests following Income Tax raids

on businesses that had invested in Purti group founded by him. Former BJP chief and UP leader Rajnath Singh

has been appointed as the new party president.

Developing nations on top in 2012 FDI indexEconomy>FDIAccording to the United Nations Trade and Investment Think Tank (UNCTAD), developing nations have, for the

first time, attracted more foreign direct investment than the industrialized nations, where FDI flows have

dipped 18 percent in the last year. Weak investments in the crisis-hit developed economies of the United

States, European Nations and Japan have been largely responsible for the USD 300 billion-decline in global FDIlast year. However, developing countries have also registered a dip in FDI inflows. Asia, which raked in 59 per

cent of all FDI to developing countries, saw its inflow drop 9.5 per cent, with China, the world's second-largest

recipient of such investments, registering a 3.4-per cent drop in 2012 FDI inflows dropped despite the fact that

the world economy grew 2.3 percent in 2012.

Toyota regains position as worlds biggest car makerCorporate> ToyotaJapanese carmaker Toyota has regained its position as the worlds biggest car maker after the company posted

22% increase in sales from 2011. Toyota sold 9.75 million vehicles in 2012, more than General Motors sales of

9.29 million vehicles. In 2011, General Motors held the top spot. Toyotas sales in 2011 had been hit by natural

disasters in Japan and Thailand which had slowed down production at its factories. Toyotas rivals such asNissan Motor and Honda Motor have also reported record number for vehicle sales in 2012. The decline in the

Yen against the dollar since last November, might have aided Toyota which relies heavily on overseas sales.

RBI cuts REPO rates by 25 basis points, reduces the Cash Reserve RatioEconomy > Macro economyThe Reserve Bank of India cut the short-time lending rate, also called REPO by 0.25 percent to 7.75 percent for

the first time in the past nine months to support the slow economic growth. In another unexpected move, the

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JanRBI has reduced the CRR, the share of deposit banks must keep with the RBI, by 25 bps to 4 percent which will

release 18,000 crore additional liquidity into the system. The cut in REPO rates is expected to reduce the cost of

borrowing for individuals and the CRR reduction would improve the availability of funds.

Philips to sell home entertainment businessCorporate> PhilipsAmsterdam based Philips Electronics has decided to quit its traditional business of home entertainment by

selling its audio and video businesses to Japan based Funai Electronics Company for 150 million Euros, a move

intended to focus more on its profitable home appliances and healthcare businesses. Philips had already hived

off its television business last year by setting up a joint venture with Hong Kong-based TPV, after facing steep-

competition from low-cost Asian manufacturers including Samsung and LG. With most people turning to online

download of movies, games and music, Philips decided to get out of home entertainment even though it was

profitable last year. In future, the consumer division will focus on appliances such as shavers and electric

toothbrushes as well as toasters, juicers and coffee makers.

Etihad Airways to buy 24% stake in JetCorporate>AviationAbu Dhabi based airline Etihad will pick up 24% stake in Naresh Goyal owned Jet Airways for about $330

million. The 24% stake is to be valued at Rs. 7,652 crore, a substantial premium to Jets market capitalization of

almost Rs. 5,100 crore. FDI in the aviation sector has paved the way for Indian carriers to get both funds and

expertise from foreign airlines. Senior officials from Etihad will be meeting the Commerce and Aviation

ministers to apprise them of the decision.

Background:

Naresh Goyal, a non-resident Indian, owns 80% stake in Jet, with 79.9% through his Isle of Man -based company

Tailwinds. Previously, Goyal had to buy back 40% stake in Jet Airways which was held equally by Gulf Air and

Kuwait Airlines when FDI by foreign airlines was disallowed in 1996.

Awards

Padma Vibhushan and Padma Bhushan awards announcedPadma AwardsThe government came out with a list of 108 Padma awardees that included actors, sportspersons and other

distinguished personalities from the field of art, science and literature. Noted physicist Yash Pal, space scientist

Roddam Narasimha, renowned sculptor Raghunath Mohapatra and painter S. Haider Raza were chosen for this

years Padma Vibhushan, Indias second highest civilian award after the Bharat Ratna. 24 people were chosen

for the Padma Bhushan which included names like Rahul Dravid, Rajesh Khanna and Sridevi. Among the 80

Padma Shri awardees are B. Jayashree (art) from Karnataka, film Director of Sholay fame Ramesh Sippy, noted

Photo journalist Pablo Bartholomew, and fashion designer Ritu Kumar. Olympians Mary Kom, Yogeshwar Dutt

and Vijay Kumar also featured among the Padma awardees.

Nobody was named for the Bharat Ratna for this year too. The last awardee was the late Pandit Bhimsen Joshi

in 2008.

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Bank Specific

ING exits Life Insurance in India, sells entire stakeING

ING has sold its entire 26% stake in ING Vysya Life Insurance to its joint venture partner Exide Industries Ltd. ina deal that valued the company at 1,100 crore. Although ING held only the maximum permissible stake of 26%,

it had controlled the life insurance operations for over a decade whereas the Indian shareholding changed

several hands. ING said it was exiting India as part of its plans to divest its insurance and investment

management business in Asia. However the company clarified that this decision does not impact ING Vysya

Bank in which ING has a 44% stake nor its fund-management businesses in the country. Exide is now looking for

a foreign insurer who will buy the 26% stake. ING is the fourth insurer to exit India after the opening up of the

insurance sector.

Background:

The ING Group is a Dutch multinational banking and financial services corporation headquartered in

Amsterdam. Its primary businesses are retail banking, direct banking, commercial banking, investment banking,

asset management, and insurance services.

Automotive battery manufacturer Exide is a Rajan Raheja group company and has a market capitalization of

over Rs 10,000 crore. The company got into the life insurance business by buying out GMR group.

Banks step up hiring at IIMs, offer 1-crore plus salariesJobsBanks seem to be the top hirers at IIMs this placement season and have offered at least three 1 -crore salary

packages so far. Deutsche Bank has given two such offers at IIM-Ahmedabad for its London office and Morgan

Stanley has offered a 1-crore package to a student at IIM-Calcutta for a stint abroad. Most global and Indian

banks are hiring more than last year and are offering pay packages which are 10 -15% higher. Leading banks

such as Standard Chartered, HSBC, HDFC and Axis Bank are offering salaries in the range of 15 -18 lakhs. The

top five consulting firms, including BCG and McKinsey, are also likely to hire more than 200 people this year.

However, e-commerce companies, which had been the largest recruiters in campuses last year, are hiring less

this year.

Corporate

Mid-Sized Technology Outsourcing Companies to cut down on pay hikes and

campus hiring in 2013IT OutsourcingSlowdown in the US and European markets has forced mid-sized technology outsourcing companies to decide

on lower pay hikes and cut down on campus hiring this year. Since the financial crisis of 2008, the $100 billion

Indian IT industry has been facing slower growth and lower revenues. Software services exporters such as

Infinite Computer Solutions, Mastek, Mahindra Satyam and Infotech Enterprises said the pay hikes could be as

low as 5% this year. Also, IT hiring figures of close to 1.5 lakh students every year, might go down drastically.

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JanIn a similar development, Indias 2nd largest software company, Infosys has started to lay off underperforming

employees in an attempt to reduce operational costs and focus on a more aggressive sales strategy. Infosys is

asking about 5000 of the 1.5 lakh workforce to leave straightaway.

US Federal Trade Commission dismisses allegations of unfair practices by

GoogleGoogleIn an investigation spanning 19 months, the US Federal Trade Commission (FTC) declared that they didnt find

enough evidence to suggest that Google unfairly favors its own services in search results. The judgement came

as a blow to Microsoft Corp. and other Google rivals who had complained against the search majors business

practices. However, Google will sign an agreement requiring the company to charge "reasonable" prices to

license hundreds of patents for rival mobile devices such as Apple Inc.s iPhone, Research in Motion Ltd.s

BlackBerry and smartphones running on a Microsoft Corp's Windows software. Upon request, Google will also

exclude snippets from other websites in its summaries of key information.

Background:

Google gained ownership of the patents when it acquired Motorola Mobility Holdings at $ 12.4 billion in 2012.

Bank of America to pay billions as mortgage loans to Fannie MaeUS Mortgage LoansBank of America will pay US Mortgage Agency Fannie Mae $ 10.3 bn as a settlement of claims related to

residential home loans and $1.3 bn as compensation. Fannie Mae had held bank of America responsible for the

losses as it complained that the Bank had sold all its toxic debts. In a related development, 10 big mortgage

providers which include Bank of America, Citigroup, JP Morgan and Wells Fargo, will provide $8.5 bn as

compensation to individual owners for mistakes in repossessing homes. In October, 2012, the US Government

had sued Bank of America, JP Morgan Chase and Wells Fargo for alleged mortgage fraud.

Background:

Fannie Mae and Freddie Mac are two US government Mortgage agencies. Both these agencies buy mortgages

from banks providing them with more funds to lend out. The US Mortgage market collapsed in 2008 after the

housing bubble burst. Both Fannie and Freddie suffered $30 bn because of their investments in the subprime

mortgages. They were later bailed out by the US government.

Tata Motors aims to become No. 2 carmakerTata MotorsFour month old managing director of Tata Motors, Karl Slym, is a man on a mission. He has initiated a major

restructuring program which looks to make Tata Motors, which is Indias largest automaker by revenue, theworlds second-largest car maker, by 2020.

One of these restructuring elements including a common vision statement for the two types of cars

commercial cars and passenger cars. The vision will be called One Team One Vision. Also, the company has

appointed the man behind the Tata Nano and Tata Ace concept, Mr, Girish Wagh to head the product planning

team.

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and South Korea and also improve backend services like designing, engineering and sourcing. It also aims at

repositioning its micro car and creating a number of two -seater in the vehicle industry.

Bharti Airtel India CEO, Sanjay Kapoor steps down, Gopal Vittal takes hispositionBharti AirtelSanjay Kapoor, CEO of India and South Asia, Bharti Airtel, has decided to step down from his position after a

stint of 15 years. Bharti started an organizational restructuring after Kapoor's exit, placing Gopal Vittal as the

new CEO (India). Gopal Vittal had rejoined the company in April 2012 as group director (special projects).

Kapoor will continue to be associated with the company as a director on board of Indus Towers and Bharti

Global and will be available for a smooth transitional process until March 31st, 2013.

Reebok India plans revival as Adidas appoints new MD

AdidasReebok India is looking at plans to revive operations throughout the country. The German sportswear major

suffered a severe setback last year in a 870-crore scam that made headlines. Erick Haskell has been named the

India MD of Adidas AG which owns Reebok. Haskell, who was COO of Adidas China before being transferred to

India, said that his immediate priority is to put forth a growth plan for Reebok India and to introduce an

aggressive marketing campaign in the coming months. Haskell also said that Reebok is contemplating opening

its own retail outlets in India as India currently allows 100% foreign investment in single brand retailing. The

fraud, last year, had prompted Adidas to announce closure of two-thirds of Reebok stores and overhaul its

entire Indian business model. Haskell further said that no more stores will be closed and its previous 800-odd

franchisees have agreed to switch to a new model of business.

Manchester United becomes first football team to be valued at over $ 3

billionManchester UnitedEnglish Premier League soccer club Manchester United became the worlds first professional sports team to be

valued at over $3 billion, according to a Forbes magazine report. Manchester United is listed on the New York

Stock Exchange. New sponsorship deals and lucrative payouts in the Champions League and the English

Premier League seem to have contributed to the surge in Uniteds shares. 19 times EPL champion Manchester

is ahead of the world's second-most valuable sports team, the National Football League's Dallas Cowboys

which is valued at $2.1 billion. United, who claim to have 659 million followers worldwide, are owned by the

American Glazer family who retained a tight grip on the club after the shares of the club were floated on the

NYSE last year.

Samsung Buys US medical imaging firm NeuroLogicaSamsungSamsung Electronics has brought a full stake in a Massachusetts-based medical imaging firm NeuroLogica as it

wants to expand in the medical sector. NeuroLogica makes medical devices including CT scanners. Samsung

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imaging business.

Background:

Samsung Electronics, the world's top maker of smartphones, memory chips and flat-screen TVs, is the flagship

unit of the Samsung group. Samsung, in 2010, declared that it would spend $20 billion over the following 10

years on five "new growth" areas including light-emitting diode technology, medical devices, biotech drugs,electric-vehicle batteries and solar panels.

Research in Motion changes name to Blackberry, launches new mobile

computing platformBlackberryResearch in Motion, the makers of Blackberry smartphones have changed their corporate name to Blackberry

in a move to leverage on the global brand name of its Blackberry mobile devices and revive its smartphone

business. The move also coincides with the launch of a new mobile computing platform BB 10 and the launch

of two revamped smartphones, one in the touch format known as BlackBerry Z 10 and another in the physicalkeyboard format known as Blackberry Q 10. Blackberry has been facing tough competition in recent times from

Apple Inc.s IPhone and Samsungs Galaxy devices in the smartphone market. The name change is seen as a

crucial marketing move for the company that has undergone a management change and a major restructuring

in recent times.

Economy

Following on US footsteps, India contemplates higher taxes for the

superrichTaxProminent economists around the country urged the government to bring inflation down to 4 -5% at the

earliest. Key economic advisor to the Prime Minister Mr. C Rangarajan had suggested that the government

should impose a marginal tax rate higher than the current 30% on individuals with substantially higher income.

His suggestion came a day after the US Congress approved a rare tax increase on the nations wealthiest, the

first time in two decades. Also, there were suggestions for higher investment in health and education sector,

higher capital expenditure on agriculture and also for expanding the Tax base so that that the governments

revenue could increase significantly.

Gold Imports not responsible for growing Current Account DeficitGoldThe widely perceived notion that rising Gold imports were responsible for the worsening of the Current

Account Deficit had much less to do in reality with the actual issue. The CAD worsened to a record $22.4 billion

or 5.4% of the GDP in July-September last year. The overall merchandise trade deficit attributable to the

growing difference between Oil imports and exports caused the CAD to widen to such alarming figures.

However, the government increased customs duty twice to curb the import of Gold. Since the increase, gold

imports have come down significantly as compared to last year but the CAD has not decreased much. To

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imports of some finished goods.

Nobel laureate warns India about FDI leading to instabilityFDINobel laureate and American economist, Joseph Stiglitz said that the current craze for FDI in India is not going

to be productive. He has said that FDI in multi -brand retail would lead to instability as MNCs adopt corrupt and

exploitative ways to gain monopoly in competitive markets.

Mr. Stiglitz gave an example of Wal-Mart in Mexico where the retail giant was offering bribes to officials at

various levels to gain monopoly. He said that the same will happen in India and the labor force will be the worst

affected. He also denounced the myth of benefits of FDI in the agricultural sector farmers, producers and

consumers.

Chinese economy grows 7.8% in Q4

ChinaThe Chinese Economy grew 7.8% in Q4, up from 7.4% in Q3. This is the slowest growth in 13 years. It is down

from 9.3 per cent in 2011 and 10.4 per cent in 2010. In 2012, the gross domestic product reached 51.93 trillion

yuan (USD 8.28 trillion). Amid apprehensions whether the GDP would miss the official target, it picked up in the

last three months of the year mainly driven by Christmas and New Year sales. Analysts said that government

stimulus measures introduced since early 2012 have helped to avert further slowdown.

Oil Companies Shares gain as Sensex crosses 20,000 markSensexThe governments bold economic reforms measure of hiking diesel price seemed to bear fruits as the shares of

major oil companies such as RIL and ONGC gained and the Sensex crossed the 20,000 mark. The government

had, on 17th January, partially deregulated diesel price allowing a hike of 40-50 paise a litre per month for

retail customers and nearly Rs 11 for bulk consumers. The BSE benchmark Sensex on Friday rose 123.75 points,

or 0.62 per cent, to 20,087 with stocks of oil and gas, auto, PSUs, metal and banking sectors extending support.

Shares of ONGC were trading at Rs 348.10 apiece, up 10.68 per cent in the early morning trade, RIL rose

897.30, up 7.65 per cent.

Indian IT Companies eye software outsourcing deals coming up for renewal

worth $50 billion in 2013Information Technology

Software Outsourcing Deals worth $ 50 billion (2.7 lakh crore), worth almost half the size of the Indian ITIndustry, are coming up for renewal in 2013. There is expected to be fierce competition among companies in

the form of aggressive discounting. HCL Technologies, which recently won a contract from Deutsche Bank

worth several millions dollars, could get it only because of aggressive discounting. Some of the long-term

contracts coming up for renewal in 2013 are from Procter & Gamble, Bank of America, American Express and

Unilever, first signed during 2002-03.

The top four Indian IT companies Tata Consultancy Services (TCS), Infosys, Wipro and HCL Technologies have

posted better growth figures. However, it doesnt mean that the period of slow growth is entirely coming to an

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fundamental technological and business model transformations.

Environment

Erratic weather worldwideWeather Patterns2012 saw floods, droughts, deluges, storms and hurricanes in different parts of the world. People everywhere

have become desensitized to these natural calamities and have accepted these erratic weather patterns as the

new normal.

While China is experiencing the coldest winter in thirty years, Brazil is going through a heat spell. Parts of

Russia are freezing with -50 degrees Celsius. Australia has seen bush fires in the previous year and Pakistan has

seen devastating floods. The Middle East and the United States of America are also experiencing record

breaking heat. The U.K. saw floods on three different occasions in 2012.

These are just a few examples of the unpredictable weather conditions that we are facing. Forecasters andexperts say that such uncertainty in climate may be seen throughout 2013 as well.

India

Worlds largest religious gathering, Kumbh Mela, beginsKumbh MelaThe Maha Kumbh Mela, which is the worlds largest religious gathering, started off on 14th January 2013 in

Allahabad. Devotees flocked in large numbers to take a holy dip in the Ganges.

The festival will last for fifty-five days and is expected to have over one crore devotees participating in it.

The next festival will take place at Ujjain, Madhya Pradesh in the year 2016.

Government to toughen anti-rape laws, provide for life imprisonmentLegal

Prime Minister Manmohan Singh said that the government would act on the recommendations of the Justice J

S Verma Committee and toughen laws dealing with crimes against women by providing for life imprisonment

for rape-murder and addition of new offences such as disrobing of women, voyeurism, stalking and trafficking.

The government also agreed to the committees recommendations to reject death penalty and chemical

castration as punishment for rapists.

Meanwhile, the Supreme Court agreed to look into the demand for tighter laws for juveniles based on thenature of the crime committed by them.

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Others

Legendary Violinist M S Gopalkrishnan passes awayArts

Violin maestro Padmabhushan M.S. Gopalkrishnan passed away after a brief illness. He was 82. MSG, as he isfondly referred to in the business circles, started performing at the age of 8. He has since then went on to

perform with stalwarts before becoming an expert himself on Hindustani and Carnatic systems of classical

music. His amazing quality of interpreting an artists musical expressions and complementing it with his unique

sensitivity earned him the Padma Bhushan, the Padma Shri and the Sangita Kalanidhi title conferred by the

Music Academy, Chennai. He is survived by his wife, two daughters and a son.

Top ten with 100 percentiles at CAT 2012CAT 2012Engineers emerged as toppers yet again of the Common Admission Test 2012, with nine engineers and two

Indian Institute of Technology-Bombay graduates in top ten students who scored 100 percentile.The results for the 1.9 lakh candidates who took the test were declared on 9th January, and it revealed that

Mumbai fared better than other metros. Out of nearly 17,000 Mumbai candidates in 2012, 180 scored more

than 99 percentile ahead of Delhi's 168 out of 21,224 candidates and Bangalore's 157 out of 19,553 candidates.

About 19 candidates have scored in the 99.99 percentile this year and around 1,895 candidates scored in

between 99 and 100 percentiles.

Politics & Government

Barack Obama begins 2ndterm as US President, pledges to end warU.S.Barack Obama began his 2nd term at the White House after his re-election and swearing in as US President for

4 more years. In his inaugural address, Obama pledged to focus more on internal social, political and economic

dynamics and involve in less confrontation with the world. He was sworn in for a second term by Chief Justice

John Roberts in a grand ceremony watched by more than 600,000 people.

Anna renames India Against Corruption as Jantantra MorchaAnna Hazare

Anna Hazare declared that India Against Corruption (IAC) would henceforth be called as Jantantra Morcha.

Hazare stressed on the importance of civil society participation in the legislation process and said that theMorcha will mobilize people on a host of issues with a demand for effective legislation to strengthen the

democratic process.

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Science and Technology

30th

Birthday of the InternetInternet

One of the greatest inventions of our times, the internet, turned 30 on the 4th of January. On the 1st ofJanuary, 1983, the US Department of Defence commissioned Arpanet Networks, replaced all previous

networking systems and fully switched to the use of the Internet Protocol Suite (IPS) communications system.

The new system was designed to overcome the failures associated with the previous programme. The internet,

has since then, gone on to change the way millions work across the globe.

India successfully test fires medium range underwater ballistic missileNuclear MissileIndia today successfully test fired a medium range nuclear capable K-5 ballistic missile from an underwater

platform in Bay of Bengal. With this achievement, India has successfully completed the nuclear triad which will

give it the capacity to successfully fire nuclear-tipped missiles from land, air and sea. The missile has beendeveloped by the Hyderabad laboratory of the Defence Research and Development Organisation and is part of

the Indian Strategic Forces underwater platforms. U.S., China, Russia and France are the only other nations

who have an underwater nuclear-capable ballistic missile.

Sports

Michael Hussey retires from Test CricketCricket

Michael Hussey, fondly nicknamed Mr.Cricket because of his spectacular performances on the field, bid adieuto his Test Cricket career on 6th January, 2013. The Australian great announced his retirement on a winning

note after Australia beat Sri Lanka in a 3-0 series whitewash. Hussey, who is 37 years old had an illustrious

career and had been the man behind many of Australias wins. Hussey scored 6,235 runs at an average of 51.52

in 79 Tests.

Lance Armstrong admits to dopingLance ArmstrongDisgraced former cycling champion Lance Armstrong admitted to doping, in the first part of an elaborate two -

part interview with Chat Show host Oprah Winfrey on her Own Network. Armstrong revealed that he had taken

performance enhancing drugs that put him to the top of the Tour de France seven consecutive times. Earlier, hehad been served with a lifetime ban from participating at all sanctioned events. World Anti-Doping Agency

director-general David Howman said that Armstrong could provide information that might get his ban reduced

to 8 years. Armstrong had returned to triathlons, where he begun his professional career as a teenager, after

retiring from cycling in 2011 and had since then expressed his desire to make a comeback.

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Novak Djokovic wins Australian Open for record third consecutive timeAustralian OpenWorld Tennis No. 1 Novak Djokovic became the first person to win the Australian Open for the third

consecutive time in the 45-year professional era. Djokovic defeated Andy Murray in a final that lasted 3 hours

40 minutes. It is Djokovics 4th Australian Open title joining Roger Federer and Andre Agassi, who had each wonthe Australian Open title 4 times.

Mumbai win 40th

Ranji Trophy titleRanji TrophyMumbai defeated Saurashtra by an innings and 125 runs, in less than 3 days to win the Ranji Trophy title at the

Wankhede stadium. Mumbais pace attack headed by Ajit Agarkar and Dhawal Kulkarni helped the hosts defeat

Saurashtra who were playing their first Ranji Trophy final. Though Mumbai were restricted to 355, Saurashtra

could only manage 82 in 36.3 overs. Mumbai have reached the Ranji Trophy final 44 times. They have won the

trophy a record 40 times and finished runners-up on 4 occasions.

World

Air India to ground six Dreamliners over safety concernsBoeing 787On the lines of US Airline Regulator FAA, the Directorate General of Civil Aviation (DGCA) has ordered Air India

to ground all six Boeing 787s, known as Dreamliners, over rising concerns on the safety standards of the

batteries used in the aircraft. The issue surfaced when All Nippon Airways (ANA) and Japan Airlines (JAL), which

are among the biggest customers of the Boeing 787, decided to ground their entire fleet. This was because

ANA reported that a snag in the battery triggered a cockpit error message that forced the planes to land inSouthwestern Japan. The DGCA directive might prove to be a hurdle in Air Indias revival plans as it was relying

heavily on Boeing 787s for its return to profitability.

The Dreamliner is the first commercial airliner to use Lithium-ion batteries so extensively. Investigations are on

to find out the error. Lithium-ion batteries are notorious for overheating and have caused major issues for auto,

computer and cell phone manufacturers.

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Starred Articles

Indias 82nd Union Budget announcedIndia > Union Budget

Finance Minister Mr. P. Chidambaram presented Indias 82nd Union Budget on the 28th Of February. The totalbudget expenditure for 2013-14 is seen at 16.65 lakh crore rupees. Out of this, non-planned expenditure is

estimated at Rs. 11.1 lakh crore whereas planned expenditure is Rs. 5.5 lakh crore.

Highlights of the Union Budget 2013-14:

No change in basic tax slabs. Surcharge of 10 percent on those with a taxable income of over Rs. 1

crore. Surcharge on corporates with income over Rs. 10 crore raised to 10 percent from 5 percent. A

tax credit of Rs. 2000 to every person with total income in the tax bracket of Rs. 2 lakhs to Rs. 5 lakhs

Fiscal deficit for FY 2013 seen at 5.2 percent and for FY 2014 at 4.8 percent

Additional deduction of interest up to Rs 1 lakh for a person taking first home loan up to Rs 25 lakh

from 1st April, 2013 to 31st march, 2014

Foreign Portfolio Investment in excess of 10 percent will be considered as a Foreign Direct Investment.The entry rules for Foreign Institutional Investors (FIIs) will be eased further

Government will borrow Rs. 6.3 lakh crore from the market

The excise duty on mobile phones priced over Rs. 2000 will be hiked to 6 percent

Rs. 1000 crore Nirbhaya Fund announced for the welfare of women.

Duty free limit for Gold raised to Rs. 50,000 in case of male passengers and Rs. 1, 00,000 in case of

female passengers.

10,000 crores set apart for expenditure likely under the Food Security Bill

Rs. 3511 crore allocated to Minority Affairs Ministry

Key Budget proposals across various sectors:

Auto:

1) Excise Duty on SUVs hiked from 27% to 30%

2) Customs Duty on Luxury Vehicles hiked to 100 %

3) Higher allocation to JNNURM leading to additional demand of 10,000 buses augurs well for all

commercial vehicle manufacturers

FMCG:

1)

Excise Duty on cigarettes increased by 18%

2) Tax on royalty increased from 10% to 25%

Oil and Gas:

1) Import Duty on crude-oil might be re-imposed

2)

Removal of 5% customs duty on LNG and Natural Gas

Banking:

1) Rs. 14,000 crore capital infusion into Public Sector banks by 2013-14

2) PSU Banks to have ATMs at all their branches by 2013-14

3) Reduction in STT. Introduction of commodity transaction tax on non-agri products

Infrastructure:

1) Constitution of a regulatory authority for road sector

2) 3000 km of road projects to be awarded in first 6 months of FY 14

3) Infrastructure Development Funds (IDFs) to provide long-term low-cost debt

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Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling

capacity

5) Tax-free infrastructure bonds of Rs.50,000 crore to be issued

6) Textile Ministry and Handloom Sector to be allocated Rs. 50 crore and Rs. 96 crore respectively

7) Incentive allowance of 15 percent over and above permitted depreciation to those investing over

Rs.100 crore in infrastructure projects

8)

Seven new cities identified along Delhi-Mumbai Industrial Corridor

Healthcare:

1)

Rs. 37,333 crore allocated for health and family welfare in 2013-14

2)

Royalty / technical fees paid to NRIs increased to 25 percent

Agriculture:

1) Rs.27,049 crore allocation to the Agriculture Ministry in 2013-14

2) Target of Rs. 7 lakh crore fixed for agriculture credit for 2013-14 compared to Rs. 5.75 lakh crore in the

current year.

3)

Eastern Indian states to get Rs. 1,000 crore allocation for improving agricultural production

Costlier Cheaper

Mobile Phones Diamonds

Cigarettes Leather goods

Set Top Boxes Readymade garments

MP3 Players Imported jewellery

Silk Handmade carpets

marble Electrical plants

Railway Budget reveals Rs.63, 363 crore Annual Plan for Railways in 2013-14India > Railway Budget

Railway Minister Pawan Kumar Bansal presented the railway budget on Tuesday, 26th Feb and announced thatthe annual plan for Railways in 2013-14 financial year is proposed at Rs.63, 363 crore. The amount of money

for doubling of tracks, safety, and passenger and staff welfare has also been increased significantly from about

Rs 11,410 crore in 2012-13 to Rs 13,220 crore for 2013-14, an increase of 16 per cent. The number of

passengers is expected to increase by 5.2 per cent and as such the freight earning target has been increased by

9 per cent to Rs 93,554 crore.

Financing sources of the annual Railways Plan for 2013-14:

Gross Budgetary

Support (GBS)

Road Safety Fund Internal Resources Market Borrowings Public-Private

Partnerships

Rs. 26,000 crore Rs. 2,000 crore Rs. 14,260 crore Rs. 15,103 crore Rs. 6000 crore

Highlights of the budget:

Financial:

No increase in passenger fares - but reserved passengers to pay more

Railways will absorb Rs. 850 crore on account of no hike in passenger fare

Railways hopes to end 2013-14 with a balance of Rs. 12,506 crore

Rs. 3,000 crore loan from Finance Ministry re-paid with interest by Railways this financial year

5 per cent average increase in freight

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26 new passenger trains and 67 express trains to be launched along with 9 Electric Multiple Unit (EMU)

trains

500-km new lines to be completed in 2013-14

New coach manufacturing and maintenance facilities to be set up in various places including Rae

Bareli, Bhilwara, Sonepat, Kalahandi, Kolar, Palakkad and Pratapgarh26 new passenger trains and 67 express trains to be launched along with 9 Electric Multiple Unit (EMU)

trains

500-km new lines to be completed in 2013-14

New coach manufacturing and maintenance facilities to be set up in various places including Rae

Bareli, Bhilwara, Sonepat, Kalahandi, Kolar, Palakkad and Pratapgarh

Induction of e-ticketing through mobile phones, SMS alerts to passengers

New e-ticketing system to support 7200 users per minute

Free wi-fi facilities in select trains. 60 more 'adarsh' stations

Target of Rs. 4,000 crore for railway production units in 2014

Trying to connect Manipur through railways

Safety measures including new coaches with anti-climb features to be brought inMore ladies specials in metros and a helpline number to be implemented

Labs to test food provided in trains. ISO certification for all rail kitchens

Rs. 100 crore to be spent to augment facilities at Delhi, New Delhi and Nizamuddin railway stations

Hiring:

Seek to fill 1.52 lakh vacancies in railways this year. 47,000 vacancies for weaker sections and

physically challenged to be filled up soon

Impact:

With increase in freight rates, that would be linked with the diesel price movements, the prices of

those products which use the railways for transportation purposes might go up.The stock market has not reacted positively to the Railway Budget. Attainment of the revenue targets

might be difficult given that it is based more on higher traffic on both passenger and freight, which is

based largely on the state of the economy.

Railways network expansion plans are also not in sync with the need of the hour. It has propsed only

500 km of new lines, and 450 km of converting to broad gauge, both of which are less than that of last

year.

BJP has termed the budget as Rae Bareilly budget. UPA allies Samajwadi party and Bahujan Samaj

Party too have expressed discontent for ignoring Uttar Pradesh in the budget.

Solicitor General of India Rohinton F Nariman resigns over differences with

law ministerPolitics and Government> Solicitor General of IndiaRohinton F Nariman resigned on Monday, ending his tenure as the Solicitor General of India from July 2011 to

January2013. It is believed that Nariman had resigned over serious differences of opinion with Law Minister

Ashwani Kumar on representing the government in certain cases outside Delhi. Nariman was drafted in as

Solicitor General of India in July 2011 after Gopal Subramaniam quit in protest against Narimans engagement

as lawyer for Kapil Sibal in the 2G scam case. In the last four decades, only three people have managed to

complete a full five-year term as Solicitor General L N Sinha (1972-77), Dipankar Gupta (1992-97) and G E

Vahanvati (2004-09).

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Europol uncovers match fixing in international footballSports >FootballEuropean anti-crime agency Europol declared that it had found evidence that around 680 matches including

qualifying games for the World Cup and European Championships and for the champions league for European

club sides had been fixed around the world in a scam run from Singapore. About 380 of the suspicious matcheswere played in Europe and a further 300 were played in Asia, Africa, South and Central America between 2008

and 2011. The racket involved a network of 425 corrupt officials, players and criminals in 15 countries and

there was proof of 8 million Euros ($11 million) in gambling profits from the match fixing.

IMF lowers Indias 2012 growth forecastto 4.5 percentEconomy> GrowthThe International Monetary Fund has lowered its projections for Indias economic growth to 4.5 percent for

2012 from its earlier projected figure of 4.9 percent, less than other South Asian nations such as Indonesia,

Philippines and even Bangladesh. Although the size of the Indian economy is larger than these countries, their

interest rates are lower and exports are growing compared to India. The IMF world economic outlook updateshowed the ASEAN 5 region comprising Indonesia, Malaysia, Philippines, Thailand, and Vietnam growing by

5.7% in 2012, while the Emerging Market and Developing Economies block is forecast to grow 5.1%. Policy

missteps, administrative paralysis and weak investments have been primarily responsible for Indias slow

growth last year. However, the IMF predicted that the Indian Economy is likely to grow by 5.9percent in 2013,

slightly lower than its earlier projection of 6 percent.

Dell to go private in $ 24.4 Billion buyoutCorporate >DellWorlds third largest PC maker Dell decided to go private in a $ 24 billion leveraged buyout by a group of

investors that include company founder Michael Dell, private-equity firm Silver Lake and MicrosoftCorporation. Dells decision to go private is part of an attempt to revive its PC business away from the financial

pressures of the Wall Street. The deal is the largest leveraged buyout of any type since November 2007 when

Alltel sold for $25 billion to TPG Capital and a Goldman Sachs subsidiary. PC sales had fallen 3.5 percent last

year, the first annual decline in more than a decade and Dell and fellow technology companies such as

Hewlett-Packard, Intel and Microsoft Corp. are witnessing slow growth because of the shift from PCs to

smartphones and tablet computers.

Parliament Attack convict Afzal Guru hanged in Tihar JailIndia >Parliament Attacks

Afzal Guru who was convicted in the 2001 Parliament attack case was hanged and buried in secrecy in DelhisTihar Jail on Saturday, 9th February, 2013. President Pranab Mukherjee had rejected Gurus mercy petition on

3rd February and the Home Minister had given his approval on February 4 for the hanging. Curfew was

imposed in Kashmir valley and local TV channels and SMSes were shut down in anticipation of protests against

Gurus hanging. Despite the curfew, at least 50 persons were injured in different incidents of stray violence

across the Kashmir Valley.

The government faced strong criticism for not adequately informing Gurus family about his execution and not

giving them one last chance to meet him. Afzal Gurus family received a letter on Monday 11th February, two

days after his execution, disclosing that he was to be hanged on February 9, for his role in the 2001 attack on

Parliament. Gurus family said that they heard of the execution via news channels. However, Home Minister

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midnight of 7th February.

Meanwhile, Human Rights activists expressed their dissent at Afzal Gurus sudden hanging as advocate Kamini

Jaiswal who was representing Guru said that the government failed to consider a petition in the Supreme

Court that challenged on whether death sentence should be applicable if not implemented within a certain

time period. Jaiswal also questioned on why the government had hanged Guru in such hurry when theSupreme Court was still hearing the petition.

Pope Benedict XVI to resign over age related health issuesWorld >Roman Catholic ChurchPope Benedict XVI announced that hell retire on February 28, saying that he is too old to discharge his duties

of office as the head of the worlds Roman Catholics. This is the first Papal resignation after Gregory XII in

1415. The next Pope will be chosen by members of a 117 member nominating conclave held in the Sistine

Chapel at the Vatican.

Background:

Cardinal Joseph Ratzinger was elected Pope Benedict XVI on 19th April, 2005 after Pope John Paul II's death.

Pope Benedict was a doctrinal conservative who asserted that Catholicism is true and other religions are

deficient and that Catholicism is in competition with Islam. He also opposed homosexuality, the ordination of

women priests, stem cell research, abortion and the use of condoms to stop HIV/AIDS.

Some specific controversies during his papacy;

1. In 2006 the Pope, while delivering a lecture, referred to a controversial 14th century statement by a

Byzantine emperor that had called Muhammads preaching evil and inhuman and also referred to Jihad as

violence in the name of religion. This sparked off protests throughout the Muslim World.

2. On 24 January 2009 thePope lifted the excommunication of four bishops, Bernard Fellay,Bernard Tissier de

Mallerais,Richard Williamson, andAlfonso de Galaretta. A number of progressive Catholics expressed surprise

at the Popes decision to revoke the excommunications. Bishop Williamsonsdenial of the Nazi genocide

killing six million Jews have lent credibility to the accusation that he is a Holocaust denier. The lifting of his

excommunication presented problems for Catholic-Jewish relations, culminating in the Chief Rabbinate of

Israel severing ties with the State of the Vatican City in protest on 28 January 2009.

3. Benedicts tenure as Pope was marked by the expose of sexual abuse scandals in the Roman Catholic Church

and his lenient behavior towards the accused priests.

Head of Italian firm arrested on bribery charges in a helicopter purchase

deal with IndiaPolitics and Government > Helicopter Deal ScamItalian authorities have arrested Giuseppe Orsi, CEO of Italian military consortium Finmeccanica on charges of

bribery related to a helicopter purchase deal with India. On Feb 8, 2010, the Defence Ministry signed a Rs.

3,546 cr deal to buy a dozen AW-101 helicopters for Indian VVIPs from UK-based AgustaWestland, a subsidiary

of Finmeccanica. Italian authorities suspect that about 51 Million Euros (Rs. 350 cr) had been paid in bribes to

politicians and other middlemen involved in the deal. The arrests have put substantial pressure on the Indian

government forcing it to launch a CBI probe into the deal. The names of an Indian lawyer Gautam Khaitan,

Sanjeev Tyagi (the cousin of a former IAF chief) and a firm Aeromatrix also allegedly figured in tape

conversations according to the Italian probe.

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http://en.wikipedia.org/wiki/Pope_Benedict_XVIhttp://en.wikipedia.org/wiki/Bernard_Tissier_de_Malleraishttp://en.wikipedia.org/wiki/Richard_Williamson_(bishop)http://en.wikipedia.org/wiki/Alfonso_de_Galarretahttp://en.wikipedia.org/wiki/Alfonso_de_Galarretahttp://en.wikipedia.org/wiki/Richard_Williamson_(bishop)http://en.wikipedia.org/wiki/Bernard_Tissier_de_Malleraishttp://en.wikipedia.org/wiki/Pope_Benedict_XVI

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American Airlines and US Airways to merge in $ 11 billion dealCorporate >MergersAMR Corporations American Airlines and US Airways are set to merge in a $ 11 bn deal that would form the

worlds biggest airline. American Airlines had sought bankruptcy protection on November 29, 2011. American

Airlines bankruptcy creditors will have 72% shareof the new company while 28% will go to US Airwaysshareholders. US Airways Chief Executive Officer Doug Parker will run the new airline, which will retain the

name American Airlines whereas AMRs CEO Tom Horton will become the new chairman. The AMR-US Airways

merger still requires approval from the US Justice Department and needs to be endorsed by the court

overseeing AMRs bankruptcy.

Securities and Exchange Board of India (SEBI) orders freezing of accounts of

two Sahara Group CompaniesCorporate >SaharaThe Securities and Exchange Board of India (SEBI) has ordered freezing of the bank accounts of Sahara India

Real Estate Corporation Ltd and Sahara Housing Investment Corporation Ltd on its failure to refund money in ahigh-profile investor refund case involving over Rs. 24,000 crore. SEBI has also ordered the attachment of

properties of the two companies, their top executives, including the Group Chairman Subrata Roy and has also

asked the two Sahara firms to furnish, within 21 days, details of their investments.

Background:

SEBI said that Sahara India Real Estate Corporation Ltd and Sahara Housing Investment Corporation Ltd had

raised Rs 6,380 crore and Rs 19,400 crore respectively from bondholders; and various illegalities were

committed in raising of these funds. The Supreme Court, in August 2012, had asked Sahara group firms to

refund the money with 15 per cent interest and had asked SEBI to facilitate the refund. The group, in

December 2012, was allowed to pay the money in three installments, including an immediate payment of Rs

5,120 crore, followed by an installment of Rs 10,000 crore in the first week of January and remainder by thefirst week of February 2013. SEBI said that neither of the two installments had been paid and therefore it was

initiating action as per Supreme Court orders.

Oscar Pistorius charged with girlfriend's murderWorld >Oscar PistoriusParalympic sportstar from South Africa, Oscar Pistorius, has been charged with murder after his girlfriend

Reeva Steenkamp was shot dead at his home. The exact circumstances surrounding the murder are yet not

clear. The news that he may have killed his girlfriend has shocked the country as the athlete is one of South

Africa's national icons.

In 2009 Pistorius was arrested and charged with common assault by South African police for slamming a dooron a woman at his home. The charges were later dropped.

Background:

Oscar Pistorius is a Johannesburg-born athlete, who was born without fibulas in his legs and had his limbs

amputated below the knee when he was just 11 months old.

Pistorius made history at the London 2012 Olympics when he became the first double-amputee sprinter to

compete in the able-bodied Games, running in the 400m and 4x400m relay. He reached the 400m semi-finals

in the London 2012 Olympics. At the Paralympics he won silver in the T44 200m, gold in the 4x100 relay and

gold in the T44 400m, setting a Paralympic record.

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FebIn 2008 he won a legal battle over his blades with the International Association of Athletics Federations (IAAF)

for the right to compete in able-bodied competitions.

French Prez Hollande in India to dicuss defence & trade deals

World >Indo-French RelationsIndia and France, went one step further to cement their trade ties during the visit of French President Francois

Hollande to India. This is the first visit of the newly-elected French President to an emerging country in Asia.

The ties between the two countries cover areas such as defence, civil nuclear energy, space and counter-

terrorism, besides education, science and technology and culture.

Among the defence deals likely to be inked would be for Indias $2-billion light utility helicopter (LUH)

programme. Eurocopter of France is one of the competitive bidders to sell 197 LUHs to India. India and France

have also been working on the short-range surface-to-air missile (SRSAM) project for the past few years.

The two big ticket deals with France the over $10-billion contract for the purchase of 126 Rafale fighter jets

and French reactors for the Jaitapur nuclear power plant are not ready for being inked during the visit.

Reader's Digest files for bankruptcyCorporate >Reader's DigestThe parent company of Reader's Digest magazine, RDA Holding Co., filed for a Chapter 11 bankruptcy, which

allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization, as part

of a financial restructuring move that includes reducing its $465 million debt and converting it to equity .The

company also has a commitment for $105 million in debtor-in-possession financing. Last year, RDA sold its

Allrecipes.com property to Des Moines-based magazine publisher Meredith for $175 million and its Weekly

Reader to Scholastic for an undisclosed sum.

According to RDA Holding CEO Robert Guth, this course of action will most effectively enable them to maintain

their momentum in transforming the business and allow them to capitalize on the growing strength and

presence of their outstanding brands and products.

The 91-year-old magazine was once among the world's best-selling magazines.

14 killed and several injured in Hyderabad blastsIndia >Hyderabad Blasts

Two powerful bombs fastened to parked bicycles exploded in Hyderabads busy Dilsukhnagar Area on

Thursday, 21st February killing 14 people and injuring 119 others. The two bombs went off at around 7pm in

the evening near the Dilsukhnagar bus stop and a popular movie theatre. The blasts are suspected to be the

handiwork of banned outfit Indian Mujahideen. The government has ordered the National Security Guard toprobe into the blast and has sanctioned Rs 2 lakh each to next of kin of those killed and Rs 50,000 each to

those seriously injured.

Air Asia to launch low-fare flight plan for tier-II and tier-II I Indian citiesIndia >Aviation

Malaysia based budget airlines Air Asia will launch low-fare flight plan for tier-II and tier-III city routes. It is

expected to give tough competition to Spice Jet which already has a strong regional presence and Jet Airways

and Indigo which have aggressive expansion plans in tier II and II cities. Air Asias primary strategy has been its

low-cost structure which has enabled it to offer some of the lowest fares among airlines in Asia. In 2001, Air

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FebAsia had a domestic market share of 9.8% in Malaysia and by 2011; it had grown to become the largest carrier

in the country with 58% market share. On international routes, it had a share of 0.9% in 2001, which rose to

39% in 2011. Air Asia CEO Tony Fernandez said that price would be the key differentiator with other Indian

carriers and it would avoid certain airports which are most costly. Air Asias cost per available seat per

kilometer or CASK was the lowest globally at $4.1 in 2011. Indian competitor Spice Jets CASK was $4.7 while

Jet Airways CASK was even higherat $7.9.

Reserve Bank of India to allow private players to enter the banking sectorBank Specific > RBI

The Reserve Bank of India, on Friday 22nd Feb, released new rules that would allow private players and non-

banking finance firms to enter the tightly regulated banking sector. Private sector companies, public sector

groups and non-banking finance companies are eligible to apply for new bank licenses by July 1 by setting up

non-operative financial holding companies. The minimum equity capital required for setting up a bank under

the new rules is Rs. 500 crore. Also, foreign shareholding should not exceed 49 per cent in the first five years.

Yes Bank was the last private sector bank to enter in 2004, as the RBI had kept tough entry barriers to protect

depositors and ensure stability of the financial system.

Kingfisher loses international flying rights and domestic slotsCorporate > Kingfisher

The Ministry of Civil Aviation has decided to withdraw with immediate effect the international bilateral traffic

rights of Kingfisher Airlines because of non-utilization affecting routes to Bangladesh, Hong Kong, Nepal,

Singapore, Sri Lanka, Thailand, UAE and the UK. These international traffic rights, which are in much demand,

will be made available to others carriers which will help increase 25,000 extra seats per week. In another

significant move, the domestic slots allotted to Kingfishers Airlines were also withdrawn so that they can be

made available to other domestic carriers.

Kingfisher, controlled by Vijay Mallya, was once India's second biggest airline but has reported annual losses

for five years in a row. It has $1.4bn (870m) in debts and its license to fly has expired at the end of 2012. The

airline has been grounded since October 2012, following repeated strikes by workers over unpaid wages.

No party wins clear majority in Italian parliamentary ElectionsPolitics and Government > Italy Elections

The recently concluded parliamentary elections in Italy might result in a hung parliament as none of the parties

had succeeded in obtaining a majority in the Upper House of Parliament known as the Senate. The center-left

coalition headed by Pier Luigi Bersani has won the lower house vote but has failed to secure a majority in the

Senate. Bersani's coalition won 29.54% of the vote cast for the lower house, less than half a percentage point

more than the center-right coalition headed by controversial three-time Prime Minister Silvio Berlusconi,

which garnered 29.18% of the vote. Of the total vote cast for the Senate, the center-left won 31.63% of the

vote, compared with the center-right's 30.72%. Comedian turned politician Beppe Grillo's anti-austerity Five

Star Movement seemed to have gained widespread popularity among the masses and won 25.55% of the

votes in the Lower House. Meanwhile, a bloc led by current Prime Minister Mario Monti came fourth, with

only about 10% of the votes in the Lower House.

Italys large government debt is a problem for the entire Eurozone. The absence of a clear majority in the

Italian parliament will likely delay Italys efforts to achieve economic growth and strengthen public sector

finances.

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FebBackground:

Italian parliamentarians are elected for five-year terms, with the current one due to end in April, 2013. But in

December, the People of Freedom Party (PDL) led by Berlusconi withdrew its support of the reformist

government led by Mario Monti, saying it was pursuing policies that "were too German-centric." Monti

subsequently resigned, and the parliament was dissolved.

Former Prime Minister Silvio Berlusconi left office in November 2011, facing claims of economicmismanagement as the Eurozone struggled to contain Italy's debt crisis. Berlusconi was convicted of a tax

fraud in 2012 for which he was sentenced to four years in jail. The verdict will be delivered after the elections.

85th Academy Awards announced, Daniel Day Lewis wins best actor for

third timeAwards > Oscars

The Academy of Motion Picture Arts and Sciences (AMPAS) presented the 85th Academy Awards, more

commonly referred to as the Oscars, on the 4th of February to honor the best films of 2012. The ceremony was

held at the Dolby Theatre in Hollywood, California. It was the most watched ceremony since the 76th AcademyAwards in 2004, with 42.40 million viewers. Life of Pi won four awards (the most for the evening), including

Best Director for Ang Lee. Argo won three awards, including Best Picture. Les Misrables also won three

awards. Django Unchained, Lincoln and Skyfall won two awards each. Other winners were Silver Linings

Playbook, Brave, Zero Dark Thirty, Anna Karenina, Searching for Sugar Man, Inocente, Curfew, Amour and

Paperman with one award each. Daniel Day-Lewis won the Best Actor award for a third time, portraying the

titular character in Lincoln. With his win, Lewis became the first actor to win three best-actor Academy

Awards, adding the top prize to those for 2007's There Will Be Blood and 1989's My Left Foot. Jennifer

Lawrence won the Best Actress award for her role in Silver Linings Playbook.

AwardsPandit Ravi Shankar awarded Best World Music Album GrammyGrammy

Sitar Maestro Pandit Ravi Shankar was on Sunday, 10th Feb, posthumously awarded the best world music

album trophy at the 55th Grammy Awards held in Los Angeles. Pandit Shankar had also been conferred the

Lifetime Achievement Award by the Recording Academy a day prior to the Grammies. His album The Living

Room Sessions Part 1 beat competition from daughter Anoushka Shankars Traveller, Amadou and

Mariams Folila, Daneil Hoes On a Gentle Island Breeze and Hugh Masekelas Jabulani to win the award.

Bank Specific

SBI net up 4% on bad loan provisionsSBI

State Bank of India's (SBI) third quarter net profit rose at a slower pace by only 4 percent year-on-year to Rs

3,400 crores on the back of lower net interest income, which declined nearly 3% year-on-year to Rs 11,154

crore during the same period.

Over the last one year, the bank has been aggressively cutting its base rate, which has impacted its interest

margin. Its strong CASA (Current Account Saving Account ) base will help protect its interest margin.

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FebWhile SBI expanded its loan book nearly 16 per cent to Rs 9.78 lakh crore, gross non-performing asset ratio

increased to 5.30 per cent (at Rs 53,460 crore) as against 5.15 per cent in the July-September quarter.

Corporate

Court denies rights to Bisleri to market Maaza in IndiaMaaza

The Delhi High Court in a recent verdict declared that Bisleri could not market Maaza in India though it could

use the brand in overseas markets. The verdict follows a five-year old court case between Bisleri International

proprietor Ramesh Chauhan and Coca Cola International over the trademark rights of Maaza mango drink.

Though Bisleri cannot sell Maaza in India, it can manufacture it for export outside India. Bisleri already sells

Maaza in four countries outside India, whereas Coca Cola has yet not marketed Maaza overseas.

Background:

Coca Cola reentered India in 1993 and bought out Parle beverage brands namely Thums Up, Limca, GoldSpot,

Citra and Maaza from Ramesh Chauhan. Coca Cola had filed for registration of Maaza in some internationalmarkets in 2007 following which Bisleri sent a legal notice to Coca Cola in 2008 stating that it was the neither

the owner nor proprietor of the trademark Maaza.

Banks decide to recall loans given to Kingfisher AirlinesKingfisherA consortium of lenders led by SBI has decided to start the process of recovering Rs. 7,500 cr outstanding loans

from the non-operational Kingfisher Airlines, because of the airlines failure to come up with a specific revival

plan. Each bank will decide its individual course of action. The banks might start encashing securities including

Kingfisher owner Vijay Mallyas personal property if the airline fails to repay the loans as well as overdue

payments amounting to more than Rs. 1,000 cr.

Philips stops production of TV sets and video playersPhilips

Philips has decided to stop production of TV sets and video players to focus more on the profitable consumer

lifestyle, healthcare and lighting businesses. With this, Philips aims to completely shut down its poorly

performing home-entertainment business. Philips Chief Executive Frans Van Houten has also cut jobs and

overheads, including office space and IT systems, scaled back inventory to free up cash flow, and launched a 2

billion euro share buyback aimed at bringing Philips back on a profitable note. All these reform measures have

pushed the stock to its highest level since March, 2011.

Uninor shuts services in Mumbai, 18 lakh users sufferUninor

Telecom operator Uninor shut down its Mumbai operations following a Supreme Court order. The court had

cancelled 22 licences of Uninor in February 2012. The shutdown follows a Supreme Court order that all

operators who did not win spectrum in the previous auctions close down services immediately.

The majority stakeholder of the company, Tele