Thursday, February 24, 2011
Toyota has recalled more than 14 million vehicles globally, that included fuel gauge, gas pedals and other brake issues, and has already been under pressure from many countries over such recalls, costing them billions already.
But whats interesting to note here is that, China is surprisingly not in this recall list. The General Administration of Quality Supervision, Inspection and Quarantine met with Toyota executives based in China on Feb. 18 regarding the issue, but Toyota has yet to issue a formal response, the report cited administration spokesman Li Yuanping as saying. China has requested an explanation and "specific technology details" from Toyota Motor Corp. (7203.TO) about why the company's global recall of 1.7 million vehicles for quality problems doesn't include China, Xinhua News Agency reported Thursday, citing a spokesman for the country's quality watchdog.
you can lodge a complain if yours is also not working to the mark .
Anyhow back to what tip for today is there from HBR, i wonder how they get something new yet so obvious everyday. Anyhow, they are of some weight anyhow.
Everyone of us thinks what we want to be or do in 1 year, 5 years or 10 years time, but guys, what about today. Have we got this day planned, what if Crude Oil passes $105 mark today, are we sure we have enough margin to tackle today's quotes or are we planned on what you want to have for lunch today. What if we don't see tomorrow??
When you're working on large goals, days can easily blend together. Instead of thinking about what needs to happen today, you're focusing on what needs to get done this week, month, or quarter. But, don't lose sight of what's in front of you: one day of work. By starting each day right, you're more likely to do the work that leads to achievement of those bigger goals. When you begin your day, pause and ask yourself whether you are ready for what is to come. Are you prepared for all your meetings? Do you know what work you need to accomplish? What risks can you anticipate and prepare for? Answering these questions will help you make the most of each day and set you up for success in the long term.Today's Management Tip was adapted from "A Life-or-Death Question to Start Your Day" by Peter Bregman.
This wasn't the best of weekends for Middle Eastern autocrats. The forced departure of Egypt's 30-year president Hosni Mubarak, less than 24 hours after he pledged to stay in power, gives victory to the Tahrir square protesters but other dictators will worry about the trend. After all, it was only last month that the Tunisian despot Zine El Abidine Ben Ali was forced from office.
Markets took the Mubarak news with relief, having plunged on earlier fears that he would obstinately cling to power, and his country might descend into uncontrolled violence. But the relief rally may be premature. The fact that Mubarak is gone does not automatically mean that calm will return. Nor does it guarantee a smooth transition to a more democratic regime and the rule of law. Emboldened protesters in neighbouring states may also confront other potentates in highly unpredictable showdowns. In a politically combustible region, similar sparks could ignite very different fires.
For the unpleasant truth is that, in Egypt and elsewhere, the likelihood of persistent chaos is higher than that of an orderly transition. Panicked dictators can react in a dangerous way, while the absence of civil society and durable political parties can easily lead to anarchy, perhaps civil war. The end result might be that one dictatorship is replaced by another. Look at Algeria, a Mediterranean country blessed by oil and scarred by poverty: who could predict what would happen there if a confrontation between Islamic parties and the army rekindled the civil war of the nineties?
So, markets beware. Consider what would happen if the Suez canal was closed or if oil supplies were hit by protests in Saudi Arabia's eastern province?
True, oil doesn't have the same importance today as in 1973 and 1979, when major oil shocks followed the geopolitical upheaval of the last Egypt-Israeli war, and the Iranian revolution. But a major disruption of oil supplies retains its capacity to seriously hurt Western economies.
In the longer term, there's no doubt that more democratic regimes will bring more stability and more prosperity to the region. But it will take some time to get there. In the meantime, global investors should tighten their seat belts.
© 2011 Financial Post and Leaksource.com
As co-founder and Chief Executive Steve Jobs has become indefinitely sidelined with an undisclosed medical condition, investors have increasingly demanded more information about the company’s future.
At its annual meeting on Wednesday, shareholders of the world’s most valuable technology company voted down a proposal to outline its plan for who will succeed Jobs. However, they passed a requirement for a majority vote before appointing unopposed board directors.
Tim Cook, Jobs’ top lieutenant, took the spotlight as shareholders dug for answers not just about Jobs, but also the company’s succession plan, what it might do with its $60 billion cash pile, and what devices may follow the iPad and the iPhone in coming years.
© 2011 Financial Post, MusicAlly.com
Wednesday, February 23, 2011
The last time we saw crude oil in above the $100 mark was in September 2008 before the crash took place.
Now as the reports Start coming in, crude oil futures futures for April delivery have reached Near $99.50. The High for today had already topped $99.95 a barrel, and are expected to increase to $110 if the Libyan crisis don't come to end. According to CME Light Crude Oil Index, May's futures are trading at $101.01 a barrel and October 2011 futures are at $102.33 a barrel
|UK Prime Minister David Cameron with Qatar Prime Minister Sheikh Hammad bin Jassim|
In 2008, UK's third largest bank Barclays, went to the east, rather than the doors of westminister, as they turned to China, Qatar and Abu Dhabi to invest in their banks, which has always had a safer risk appetite in comparison to the other counterparts, as far as i have heard. And this was in par, a key to Barclays, that had tried to be healthy while being in the financial crisis.
Oh yes. One of the masters of the universe LEHMAN BROTHERS. Our freinds at HBR, have a tip on how to make risks, in tough times.
So lets hope we all sail the rough seas easily in desperate times.
Over the past few years, the economy has forced many companies to play it safe and take few, if any, risks. If your company culture has become — or always has been — risk-averse, try doing the following three things to turn it around:
- Evaluate risk-taking. Take an honest look at your company or unit and assess whether people avoid risks. Utilize interviews, skip-level meetings, or anonymous surveys to gauge whether people feel anxious or hold back ideas.
- Make idea-sharing safe. Create a "safe space" where managers and employees can voice their concerns, feedback, and ideas — without fear of retribution.
- Experiment. Ask a team in a part of the company you want to grow to conduct a series of rapid-cycle experiments to test new ways of working. Make it explicit that failure is acceptable as long as learning comes from it.
Tuesday, February 22, 2011
Good bosses strike a careful balance between telling people what to do and empowering them to do things on their own. Struggling with this balancing act is common, especially for new managers. Here are three ways to let others take ownership, while giving them what they need:
- Make goals clear. Your job is to make sure the team understands its objectives. But, leave it up to team members to decide how to achieve those goals.
- Share leadership. Identify informal leaders among the group who can take on roles such as heading up ad hoc task forces and arranging off-site meetings.
- Ask for solutions, not problems. When your team members encounter an obstacle, ask them to come to you to explain the problem and present a proposed solution. Encourage them to problem solve before asking for your perspective.
As reproted by Bloomberg The Libyan Investment Authority owned 2 percent of Finmeccanica SpA, Italy’s biggest defense company, as of Jan. 17, 2011, Italy’s market regulator Consob said on its website. Libya also owns 7.5 percent of Juventus soccer club.
Not just that, world's biggest oil and gas exploration company extracts more than 245,000 barrels a day of oil in Libya. Thus this oil led infusion has led to Libyan investments in Italy to become one of the biggest foreign investors in Italy. Libyan investors own 7.2 percent of UniCredit SpA, Italy’s biggest bank, including a 4 percent stake held by Libya’s central bank.
But all this is started to change due to the ongoing political clashes between the freeman and the government. A civil was as called by Gaddafi's son Seif al-Islam who also said that "his father would "fight until the last man, the last woman, the last bullet."
Monday, February 21, 2011
Necessity is the mother of invention. When times or resources are tight, people usually figure out how to make due: they create work-arounds, devise new ways of operating, and make better use of limited assets. If you're looking for a creative solution or an innovative new product, remember that creative problem-solving is the inevitable result of working with constraints. Try deliberately imposing scarcity on a process. Trade in "blue sky" thinking for "closed world" techniques. Limit time, money, options, or other resources. Or, you can capitalize on the external constraints that the economy presents.
Saturday, February 19, 2011
|teargas being used to scatter the protesters|
Although the protest movement in Bahrain is fueled by economic and political concerns, the breakdown of power runs along sectarian lines. The country's Shia majority complains of discrimination and abuse at the hands of the Sunni-dominated government.
I wish that there would have been better ways to get the reality out of Facebook's Farmville, so that everyone would have had dollars in their pockets to give their neighborer some cat and vegetables for free. Anyhow, back to the reality on why investors are getting in cash available to the farmlands
NUMBER 1: Food Prices are Rising
Food inflation leads to core inflation which reflects the rising demand for food and soft commodities like corn, wheat and rice. Sovereigns are rushing to buy land and farmland is becoming increasingly scarce. Recently, a US based fund, Hancock Agricultural Investment Group, snapped up 1,100 acres of land in Quebec, Canada and has plans to seek more properties
NUMBER 2: Inflation is Red Hot
Farmland is "earthen gold" because there is a limited supply of it and if there is any increase in demand, there is a translated increase in food prices and thus, inflation. Globally, the value of farmland has appreciated 2% higher than inflation since the 1950s.
NUMBER 3: Farmland has stable returns
Properly managed farmland is a source of steady income generated by leasing the land to a local farmer to grow crops; the market for productive farmland to lease is very competitive. Since cash rents are generally paid before the growing season begins, this makes the revenue stream from farmland very secure. If for any reason the leasing operator cannot make the rent payment, it is easy to find a replacement tenant.
NUMBER 4: Farmland offers portfolio diversification Developed markets are a better fit for investors concerned solely with wealth preservation even though values are higher, reflecting the sophistication of the agricultural industry. These include Western Europe, USA, Canada, Australia and New Zealand.
NUMBER 5: Tax breaks for buying farmland
In the U.K. income off farmland investment benefits from tax planning advantages if you've lived on the land for two years. Property owners also benefit from a business relief for 5 years if their farmland makes a loss. The U.S. and Canada offer tax incentives as well.
Copyright © 2011 Business Insider, Inc, farmlandgrab.org and Agrinuity LLC.
Citigroup inc is managing this transaction. The price range represents a discount of 3.5% to 4.1% to Lenovo's closing price Friday of HK$4.88. Lenovo's Hong Kong-listed shares have risen about 8% since the start of February, outperforming the broader market's 0.6% rise, making it an opportune time for IBM to sell its stake. The latest share sale came after private-equity firms TPG Inc., Newbridge Capital and General Atlantic LLC sold more than 280 million shares in Lenovo in November. TPG Capital, Newbridge Capital and General Atlantic invested a total of $350 million in Lenovo in 2005 to support its acquisition of IBM's PC business. TPG invested $200 million, Newbridge, now part of TPG, contributed $50 million, and General Atlantic put in $100 million as read on Bloomberg
|Lenovo LePad and Ideapad|
Lenovo just announced net profits worth $100 million on thursday, making it the fourth alrgest pc maker by shipments after HP, Acer and Dell. The profits were up 25% .
Lenovo is also going to rollout UI IdeaPad and LePad in India within a year, Lenovo India managing director Amar Babu said.
UI IdeaPad is a laptop with detachable touch screen that functions as a standalone Linux tablet. It debuted in China a year ago. LePad is an Android-based slate that is expected to be launched in China by March.
Lenovo, however, has no immediate plans to launch LePhone, the Android-based smart phone that comes with an innovative swirl keyboard.
These awesome gadgets would let me think shifting from Toshiba to Lenovo, can't handle all this at once. Simply Great
The widely quoted and influential director of the Peterson Institute for International Economics in Washington, Fred Bergsten has until recently been one of the most prominent critics of China’s policy of intervening in foreign exchange markets to weaken its currency. Now he thinks progress is finally being made to resolve this acrimonious dispute between the U.S. and China. In an article he wrote for the Institute’s website last week, he said that a “breakthrough” appeared to have been made because of a combination of Chinese inflation and the gradual appreciation in the yuan’s nominal exchange rate to the dollar since mid-2010, which is putting the inflation-adjusted exchange rate on track to achieve a needed correction of 20 to 30% over the next two to three years.
Friday, February 18, 2011
First of these is that Nokia can now be able to customize the windows Phone Software, by updating the surface that are quick updates and wont cause any much delays while the windows phone itself updates and Deep-running customizations that will be integrated into the OS by Microsoft and made available to both Nokia and any other competing manufacturer
So now there is a definite green signal on how this partnership works. Elop also said that the final agreement and deal points would be available in coming months.
Elop also bought 150,000 Nokia shares today and sold his Microsoft shares, which has already pushed Nokia shares up 0.7 percent to 6.76 euros.
Elop also said that this partnership will bring down windows phone prices, making it accessible to a wide range of consumers, who would be able to use the phone for both business and pleasure, and this would be a better product, that could differentiate in terms of the overall user experience in contrast to what apple and android are offering. Elop said one of the key topics in the talks on doing a deal with Microsoft was convincing Nokia that it could reach "a very low price point. We have become convinced that we can do that very quickly," Chief Executive Stephen Elop said in a meeting with Finnish business journalists.
So the stakes are high on this one now, and we all are eagerly waiting for the first device to later this year or earlier next year 2012
|Guido Mantega Brazil s Finance Minister|
Brazil's IPCA consumer price index, the country's main measure of inflation, accelerated 5.99% in the 12-months through January, well above the 4.5% center-point of Brazil's official annual inflation target.
Brazil is world's eighth larges economy by GDP and seventh largest by purchasing power in the world and also part of the G20 and G8 member nations that symbolize the biggest economies in the world
BRIC ECONOMIES: An acronym for the economies of Brazil, Russia, India and China combined. The general consensus is that the term was first prominently used in a Goldman Sachs report from 2003, which speculated that by 2050 these four economies would be wealthier than most of the current major economic powers.
The news was originally reported in a Huffington Post article, which said that the change was made at the recommendation of Facebook's Network of Support, a coalition that the social network created with gay and lesbian advocacy groups to encourage tolerance and combat harassment. At the time, the tragic stories of several gay teenagers who had been "cyberbullied" to the point of suicide were making headlines.
"This has been a highly requested feature from users," a Facebook representative said in an e-mail to CNET. "We want to provide options for people to genuinely and authentically reflect their relationships on Facebook."
This has been a concern for many countries, where such derivatives trading has made an alarming situation, and where there is uncertainty over whether the contracts are liquid enough to be transacted at the given time.
But now there is a need for a platrom, by which the transparency, audit trails and parties can be identified. The world leaders gave this task to The International Organization of Securities Commissions (IOSCO).
Hans Hoogervorst, chairman of IOSCO's technical committee, said in a report on Friday that platform trading of derivatives would boost competition, transparency and supervision - as long as the conditions were not too narrow so that a wider range of contracts can be captured. You can see the IOSCO's media release here
Then i bought a Nokia 5800 Expressmusic, iWhen i stand up against others am using now as well, its one of Nokia's best smartphone glory in touchscreen. All future midranged symbains follow the design. I dont mind a symbian, what i mind here is the way symbian was developed
Thursday, February 17, 2011
The recall includes 167,000 vehicles in Japan, 156,000 in China, and 233,000 in the rest of Asia, Honda said. About 122,000 cars were being recalled in North America it added. more than 100,000 cars from US and 15,000 Fit cars from Canada are being recalled.
The spring was placed improperly in a small box inside the engine, so that, in some cases, the problem could cause the engine to stall, Okada said. No accidents or injuries have been reported as yet.
"In most organizations, functional groups use their own languages with specific terms to talk about the work they do. If you bring people from different parts of the organization together to innovate, it's possible this jargon will get in the way. Help them understand when they are saying the same thing. A finance person may use the phrase "financial modeling," while a design person says "rapid prototyping." They are both talking about necessary tasks that are part of exploring opportunities. Challenge them to build a common language and to use terms that resonate with everyone on the team."
#1 - GLOBAL LARGE ENTERPRISE/PUBLIC SECTOR NOTEBOOK MANUFACTURERS
Iranian, Navy warships that are as said heading to their destination to Syria, are going to cross the Suez canal this morning. they were to pass by Wednesday night. But Israel's Navy has been on HIGH ALERT and they are ready to counter any contingencies, that may follow.
Wednesday, February 16, 2011
When we are part of a team and we all are on the same page, regarding the type of actions or procedures to follow, it becomes very frustrating when we come to know that or we see that, one of our colleagues takes a different approach suddenly and, is no more part of the action plan. these things affect the ultimate goal and the results we want to achieve. It can be a good thing, as if he might know something which is better and wants to do it all alone, but it can be agonizing and unprofessional at time. The following tips can be used to deal with such passively-aggressive colleagues.
Tuesday, February 15, 2011
|Twitter CEO, Dick Costolo|
Dick Costolo, joined twitter as Chief Operaitng Officer in September 2009, and was the man behind the so called Promoted Tweets. Dick Costolo joined Twitter after selling his own internet company FeedBurner to Google in 2007. He has replaced Evan Willaims, the second CEO and co-founder of Twitter
Today in Barcelona, Mr Costolo said Twitter as not in talks with Google Regarding any mergers or deals or any takeovers. He laughed off questions about tie-ups with Facebook and Google, saying he didn't know "where such talk came from". There has been news that Google made an offer of as much as US$10bn for Twitter
"I am proud of what we achieved in 2010, especially our profit growth and enhanced capital and liquidity positions," said Barclays chief executive Bob Diamond.
Total group revenues came in at £31.44bn. Pay, pensions and bonuses per head for the 24,800 bankers working at Barcap was about £236,000, up from £196,000 in 2009, said the BBC's business editor Robert Peston.
Net income for 2010 fell to 3.56 billion pounds ($5.7 billion), the London-based lender said in a statement today. Analysts had estimated profit would drop to 3.2 billion pounds, according to the median estimate of 13 surveyed by Bloomberg, after a one-time gain from the sale of its asset management unit boosted profit to 9.39 billion pounds the previous year. Writedowns dropped 30 percent to 5.67 billion pounds in 2010.
"We continue to see good impairment trends across the group and are cautiously optimistic that we will see further improvement in 2011,” Finance Director Chris Lucas said in the statement. “The group is embarking on a program to reduce its underlying cost base.”
Barclays reaped 6.33 billion pounds from the sale of its Barclays Global Investors asset management unit in December 2009. Group pretax profit in 2010, excluding asset sales, rose 32 percent to 6.07 billion pounds.
You can see the whole Barclays presentation and results here
|The HTC Salsa (left) and the HTC ChaCha (right)|
Before going forward with the low inflation but high risk, i want to tell that China has overtaken the Japanese Economy as the second-Largest economy in the world. China has also increased their lending rates for second time in past six weeks, in order to tighten the overall inflation risks and housing bubble news.
There are so many factors that are being involved in assessing the Chinese economy that we can't leave every other measure behind, such as the increase in food prices, the strikes in southern china last year that led to wage hikes, the housing prices that have been increasing sharply, banks have been asked to lend less and were asked to increase their reserves twice.
The inflation rates reported by the central bank was around 4.9%, which is higher than their forecasts, but is low than the 5.3%, that was being expected by many analysts. But its very early to call on anything as yet, knowing that Beijing has also hasn't increased their rates and are still struggling to bring the prices down.
The main measure was part of the housing price measures that have increased over the times.
|BOJ Gov. Masaaki Shirakawa|
BOJ Gov. Masaaki Shirakawa said last week the economic improvement "seems to have paused from the fall of 2010, but recent data suggest that Japan's economy looks like it is about to emerge from that pause." Data have shown recent improvements in exports and industrial production.
Monday, February 14, 2011
- Describe. Provide a general overview of the problem, and explain the impact. Be sure to position this in terms of what matters to your manager.
- Identify a solution. Recommend a specific solution or approach, along with alternatives.
- Analyze your solution. Share the pros and cons and explain the implications. Be prepared to discuss the risks or barriers that may be of concern to your boss.
- Accept responsibility. Let your manager know that you are willing to take the responsibility for the outcome of your proposed approach
Saturday, February 12, 2011
But it has also been heard that this news is fake and there hasn't been any news or updates from the Nokia officials as yet. But something is on, and we will see this all Tomorrow as WMC 2011 kicks start and the world of technology is unveiled. So far no hardware specifications have come forward, but we can expect an AMOLED or Clear Black Technology of Nokia, 720p video recording, 1GHz processor, graphics accelerators and a 8MP Fixed Focus Camera. I am saying fixed focus as Nokia has spent some time making us all understand this fixed focus technology
If you want to hear my opinion, TRUST ME, this is going to be one hell of an ecosystem for Nokia, you get Mobility, true On-line Enterprise Experience. I can't say what you think, so you can POLL on this partnership, but i am optimistic and would like to hold a Nokia WinMo 7 Phone soon.
Management Tip of the Day
Many Comapnies dont allow the use of social networking plugins and programs in their workspaces, because they think that a full days use of Facebook or other social networking sites, would hinder productivity and would divert their workforce.
But they should instead, try providing social applications that enable getting work done. For example, implement a chat feature within a sales tracking application that allows people to converse about the likelihood of a sale. Or, provide a discussion board in a task management system to help employees more effectively complete their tasks. Even a cleint and customer interation page and continous interaction with the customers can bring in new ideas to work upon for future.
"Combine the best of social and structured applications to get work done faster and more effectively."
Today's management tip was adapted from "Want Value From Social? Add Structure" by Tom Davenport.
Pakistan's economy is already under inflationary and growth pressure, with the reforms of RGST, many think that the poverty levels would increase drastically. The IMF misison that visited Isalmaabd is closely monitoring the overall developments in RGST reforms by March 2011. “If the government takes a prompt action, it could pave the way for reviving the derailed $11.3 billion programme and Islamabad would be able to draw the last two tranches of $3.4 billion till September 2011 under the ongoing Standby Arrangement (SBA) programme,” the officials said.
The fund needs the federal government to abolish POL and electric subsidies, raise the level of excise duty and other income generating measures to strengthen the economic base of the country. Pakistan;s Government has been in talks with the fund, in order to ease pressure on RGST, by telling them they have been working on the other public sector revenue generating areas, and they want IMF to continue the flood hit economy.
But still the point of interest is that the government needs to mobilize all resources that can be taken into consideration, and stop the overall misuse of the economic cash and their assets, which is very UNLIKELY TO HAPPEN IN PRESENT GOVERNMENT. though we do expect a 3% GDP growth this year as a so called positive sign of economic revivial
If you are thinking that Mr Hosni Mubarak, who came into power in 1981 after the assassination of Sadat, was under presumer in 2003 as well. Kefaya, an Arabic word for "enough", emerged in 2004, as a popular anti-war movement against the US led war in Iraq. it was one of the most popular protests and in turn developed into the first public demonstrations against President Mubarak since he had taken office in 1981. This resulted in key constitutional amendments and reshuffling of the Egyptian cabinet
Friday, February 11, 2011
Management Tip of the Day
"Can You please do me a favor. Can You please hold this for me, the image says GRUDGE. IN 2004 a film directed by Takashi Shimizu. An American nurse living and working in Tokyo is exposed to a mysterious supernatural curse, one that locks a person in a powerful rage before claiming their life and spreading to another victim."
Whether they are holding a door open or introducing you to a potential client, everyone offers favors at different times in life. But, asking someone for a big favor can be daunting. Next time you need someone's help, try following these three steps
- Set the stage. Be explicit about the nature of your request. The phrase, "I have a favor to ask," implies a contract in which you will someday try to return the favor.
- Explain the reason. People like to know why they are being asked to do something. Saying "Can you cover that meeting for me?" is far less effective than "Can you cover that meeting for me because I have another meeting I can't miss?"
- Give an out. No one feels good about being forced to do something. Offer an escape route by saying. "If you can't, I understand," or "I know you're busy."
|Today's Management Tip was adapted from "Asking for a Favor: The Three Keys" by Jodi Glickman|
You can see the Press Conference as well
From a week now, everyone has been betting on what is Nokia going to do in order t get back the lost image to Andriod, the answers are coming in with Partnerships with Microsoft. The latest news that has come confirms that Nokia is going to enter into a "broad strategic partnership" with Microsoft.
\Here is a Video for the official announcement made
Thursday, February 10, 2011
Its not coming as a surprise that tomorrow Stephen Elop is going to state to his investors a new strategy in order to enhance the software of Nokia's high end deviser. As to be heard, Nokia, want to have a differentiating factor in order to take the market share lost to Android and Apple.
In a news update, The Telegraph has just said that according to a tweet from a senior Google Executive, Nokia might be inching closer to a partnership with Windows Mobile 7, Microsoft's flagship Software that powers its next generation of smartphones.
Gundotra, the search giant’s vice president of engineering, said that “Two turkeys do not make an eagle”. Nokia had been rumoured to be considering beginning to use either Google’s own Android operating system or Microsoft’s, but Gundotra’s tweet appears to suggest that Android has not been selected.
You can visit HBR for more insight and updates on latest issues and the Business world @ http://hbr.org/
China Vanke Co., the country’s biggest developer by market value, said an expansion into central and western Chinese cities, including Wuhan and Chengdu, helped 2010 revenue exceed 100 billion yuan ($15 billion), a target it had set for 2014, while Evergrande Real Estate Group Ltd. counted on towns in the nation’s interior to boost sales.
Cheaper land and rising incomes in inland cities are luring developers as the government targets speculators, focused on Shanghai and Beijing, with stricter mortgage requirements and property taxes. Land investment in less affluent cities jumped 35.4 percent in the past year, according to data from China Real Estate Information Corp., which tracks 40 publicly traded developers.
“Absolutely policy is a driver of this, both because the policy’s footing in more developed cities is stricter and also because there is tremendous unmet demand for modern housing in these second-tier cities where incomes are rising quickly,” said Michael Klibaner, head of China research at Jones Lang LaSalle Inc. in Shanghai.
First-tier cities include wealthier Shanghai, Beijing and Guangzhou, in southern China, according to China’s National Bureau of Statistics. The second tier includes provincial capitals and the third includes smaller cities.
The plunge, led by a 19 percent drop in Reliance Infrastructure Ltd., dragged the benchmark Sensitive Index to a seven-month low yesterday. The group said “unscrupulous corporate rivals” spread rumors that led to “panicked” sales, according to an e-mailed statement.
It’s a familiar refrain for investors. Three weeks ago, Ambani criticized media reports based on unidentified sources and rumors in a press conference where he said he had agreed not to trade in shares for a year after an investigation by the stock market regulator. Since then, the combined value of his listed companies has plunged by 29 percent to $16.8 billion, Bloomberg records.
“Every time there’s a development there will be a media reporting and media scrutiny, which we welcome,” Ambani, 51, told reporters in Mumbai on Jan 16. “But most of it is based on rumors and sources and nothing is based on facts.”
Four phone calls made to Ambani’s office in Mumbai yesterday were unanswered and an e-mail elicited no response.
India’s stock market is the world’s worst performer after Egypt this year as a combination of corruption scandals, rising inflation and Asia’s most aggressive round of interest rate increases have dimmed investor appetite for Asia’s third-biggest economy. Ambani’s telecom and infrastructure companies have fallen the most among benchmark stocks this year.