If you manage accounts well, you can run the bank well. However, if you do your sums right, it can help banks cover their risks in the financial markets. Deutsche Bank has ventured into an interesting exercise to harness the power of maths to manage risks better.
The German bank has in a joint venture facilitated by Matheon, the German Research Centre (DFG), set up a QP Lab (Qualitative Product Lab) in Berlin to focus on risk management and handling of derivates in the financial markets. Mathematicians from the famous Humboldt University and Berlin Technical University are working with bankers to develop and design new models that will help Deutsche Bank de-risk and also handle the volatility in the financial markets better, explained Prof. Dr Juerg Kramer, President and Head of the Dept. of Mathematics, Humboldt University.
Dr Kramer, who is also member of the Executive Board of the DFG Research Centre Matheon, told Business Line that the theory of probability, new algorithms and codes are useful tools in mathematical finance that can help industry. About 25-30 researchers are working at the Lab, which gets an annual funding of €4 million from the bank.
Matheon is joining hands with industry to develop models, simulate and optimise real world processes in the area of discrete mathematics, numerical analysis, computing, etc., to solve the latter's problems. Dr Kramer is leading a large team of German mathematicians to the ongoing ICM 2010 here.
Mathematics powers several of the technologies that make our lives better. For example, the use of computers, cars, airplanes and cell phones. “We play the stock market or juggle credit-card debts”, without realising that behind all these technologies lay mathematics. Maths ensures that flight schedules can be kept, telephone networks don't break down and software runs smoothly, Matheon says.
Tuesday, August 24, 2010
Tata Global Beverages plans wellness products
Starting as a producer and seller of tea, Tata Global Beverages (till recently Tata Tea Ltd) has emerged a beverage company with the ultimate goal of being in the food business. This was indicated by its Chairman, Mr Ratan Tata, here on Monday.
“Change in name has been done to reflect the change in business of the company, which , going forward, will be more and more beverages and eventually and possibly into food through innovations and the accent will be on wellness and good health products,” Mr Tata observed while addressing the company's shareholders at the annual general meeting.
“We would stay away from products that tend to be unhealthy and injurious to people's health.”
Promoters' stake hike
He indicated that the promoter's stake in all group companies, including Tata Global Beverages, would be hiked and the option available was the creeping acquisition route of five per cent subject to financial limitations.
There would be restructuring of Tetley; he, however, declined to comment on the delisting of Tetley shares in the UK and listing in India.
He sounded very bullish about the tie-up with Pepsi. “The proposed joint venture will be to produce non-carbonated drinks, particularly fortified water products which truly accentuates the company's global intentions in terms of meeting markets,” he said.
The Himalayan mineral water would be part of this operation. The rationalisation of operations through mergers would depend on the scale, he said. The various initiatives pursued to broadbase product categories included infusions in Canada, organic tea in the UK and green tea in Australia and Tion in India which was a new product.
“Change in name has been done to reflect the change in business of the company, which , going forward, will be more and more beverages and eventually and possibly into food through innovations and the accent will be on wellness and good health products,” Mr Tata observed while addressing the company's shareholders at the annual general meeting.
“We would stay away from products that tend to be unhealthy and injurious to people's health.”
Promoters' stake hike
He indicated that the promoter's stake in all group companies, including Tata Global Beverages, would be hiked and the option available was the creeping acquisition route of five per cent subject to financial limitations.
There would be restructuring of Tetley; he, however, declined to comment on the delisting of Tetley shares in the UK and listing in India.
He sounded very bullish about the tie-up with Pepsi. “The proposed joint venture will be to produce non-carbonated drinks, particularly fortified water products which truly accentuates the company's global intentions in terms of meeting markets,” he said.
The Himalayan mineral water would be part of this operation. The rationalisation of operations through mergers would depend on the scale, he said. The various initiatives pursued to broadbase product categories included infusions in Canada, organic tea in the UK and green tea in Australia and Tion in India which was a new product.
Export ban on non-basmati rice, wheat to stay for now
India is not looking to lift the export ban on wheat and non-basmati rice for now, the Commerce and Industry Minister, Mr Anand Sharma, has said.
The export restrictions on these commodities were put in place a couple of years ago on the onset of high food inflation to ensure domestic availability.
“As of now, there is no proposal to rollback the restrictions on exports of commodities including non-basmati rice and wheat. Basmati rice exports will continue to be allowed. An appropriate view will be taken once the monsoons are over,” Mr Sharma told a press conference after unveiling the annual supplement 2010-11 to the foreign trade policy 2009-14.
Inflation
Mr Sharma also highlighted that the current food price inflation implied that the Government needed to pay close attention to domestic availability. Food price inflation has remained in double digit for several months in a row despite the policymakers' assurances that they would get a handle over the situation and that wholesale price index (WPI)-based inflation would come down to 5-6 per cent level by end December this year.
SEZ units
To a query on tax breaks for special economic zones (SEZs) in the proposed Direct Taxes Code (DTC), Mr Sharma expressed confidence that the concerns of industry would be addressed when the final version of the DTC is sent to Parliament.
“I have already discussed this with the Finance Minister and also with the Prime Minister. The Finance Minister is fully sensitive to our concerns and also the apprehensions of the industry and investors,” Mr Sharma said.
He assured industry and investors in SEZs and SEZ units that their benefits will be fully protected and policy stability will be ensured when it comes to SEZs that have already been notified and those that will be notified before the DTC comes into force.
The Commerce Secretary, Dr Rahul Khullar, later said that the Commerce Ministry was working on a “compromise solution” with the Finance Ministry on the issue of tax breaks for SEZ units in the proposed Direct Taxes Code regime.
Mr Sharma said that the financial implications of the export incentives (bonus incentives and add on to focus product schemes) announced on Monday would be about Rs 1,050 crore. The Rs 1,050 crore will not be money voted as demand for grants through Parliament.
“What we are doing here is issuing scrips as incentives. This is not in the nature of an expenditure. It is what is called tax expenditure — that is you are foregoing revenue and not actually spending any money. The tax expenditure is done through an executive order,” official sources said.
The export restrictions on these commodities were put in place a couple of years ago on the onset of high food inflation to ensure domestic availability.
“As of now, there is no proposal to rollback the restrictions on exports of commodities including non-basmati rice and wheat. Basmati rice exports will continue to be allowed. An appropriate view will be taken once the monsoons are over,” Mr Sharma told a press conference after unveiling the annual supplement 2010-11 to the foreign trade policy 2009-14.
Inflation
Mr Sharma also highlighted that the current food price inflation implied that the Government needed to pay close attention to domestic availability. Food price inflation has remained in double digit for several months in a row despite the policymakers' assurances that they would get a handle over the situation and that wholesale price index (WPI)-based inflation would come down to 5-6 per cent level by end December this year.
SEZ units
To a query on tax breaks for special economic zones (SEZs) in the proposed Direct Taxes Code (DTC), Mr Sharma expressed confidence that the concerns of industry would be addressed when the final version of the DTC is sent to Parliament.
“I have already discussed this with the Finance Minister and also with the Prime Minister. The Finance Minister is fully sensitive to our concerns and also the apprehensions of the industry and investors,” Mr Sharma said.
He assured industry and investors in SEZs and SEZ units that their benefits will be fully protected and policy stability will be ensured when it comes to SEZs that have already been notified and those that will be notified before the DTC comes into force.
The Commerce Secretary, Dr Rahul Khullar, later said that the Commerce Ministry was working on a “compromise solution” with the Finance Ministry on the issue of tax breaks for SEZ units in the proposed Direct Taxes Code regime.
Mr Sharma said that the financial implications of the export incentives (bonus incentives and add on to focus product schemes) announced on Monday would be about Rs 1,050 crore. The Rs 1,050 crore will not be money voted as demand for grants through Parliament.
“What we are doing here is issuing scrips as incentives. This is not in the nature of an expenditure. It is what is called tax expenditure — that is you are foregoing revenue and not actually spending any money. The tax expenditure is done through an executive order,” official sources said.
Govt announces Rs 1,050-cr sops for exporters
In the face of ‘fragile recovery' of the world economy, the Government today extended export sops worth Rs 1,050 crore.
The export policy support measures covered labour-intensive segments such as leather, handloom, and handicrafts, and some engineering sectors for both market diversification and technological upgradation. The popular Duty Entitlement Passbook (DEPB) scheme for imported inputs was extended by another six months.
The measures unveiled by the Union Commerce and Industry Minister, Mr Anand Sharma, in the Annual Supplement to the Foreign Trade Policy, include additional benefit of 2 per cent bonus over and above the existing benefits of 5 per cent (3 per cent for focus market scheme and 2 per cent for focus product scheme of f.o.b., or free-on-board, value), for 135 existing products.
The zero duty Export Promotion Capital Goods scheme introduced in August 2009 and valid for two years has been further extended by one more year till March 31, 2012 and would cover new units of paper and paperboard, ceramic products, refractories, glass, plywood, marine products, sports goods and toys and additional engineering products. As status holders contribute substantially to exports, the one per cent Status-Holder Incentive Scheme is extended by one more year to 2011-12. This scheme, to support status holders upgrade technology, was introduced in August 2009 and was valid for two years. It would now cover additional segments such as chemicals and allied products, paper and paperboard, glass and glassware, rubber, plywood, electronic products, sports goods and toys. It also provided for additional flexibility for transferability of duty credit scrips under Vishesh Krishi and Gram Udyog Yojana scheme by allowing transfer of scrip for import of cold chain equipment to units in the Food Park.
For the beleaguered readymade garment industry, the benefits under the Market-Linked Focus Product Scheme provided earlier for six months has been extended up to March 31, 2011 for exports to 27 countries of the European Union.
The export policy support measures covered labour-intensive segments such as leather, handloom, and handicrafts, and some engineering sectors for both market diversification and technological upgradation. The popular Duty Entitlement Passbook (DEPB) scheme for imported inputs was extended by another six months.
The measures unveiled by the Union Commerce and Industry Minister, Mr Anand Sharma, in the Annual Supplement to the Foreign Trade Policy, include additional benefit of 2 per cent bonus over and above the existing benefits of 5 per cent (3 per cent for focus market scheme and 2 per cent for focus product scheme of f.o.b., or free-on-board, value), for 135 existing products.
The zero duty Export Promotion Capital Goods scheme introduced in August 2009 and valid for two years has been further extended by one more year till March 31, 2012 and would cover new units of paper and paperboard, ceramic products, refractories, glass, plywood, marine products, sports goods and toys and additional engineering products. As status holders contribute substantially to exports, the one per cent Status-Holder Incentive Scheme is extended by one more year to 2011-12. This scheme, to support status holders upgrade technology, was introduced in August 2009 and was valid for two years. It would now cover additional segments such as chemicals and allied products, paper and paperboard, glass and glassware, rubber, plywood, electronic products, sports goods and toys. It also provided for additional flexibility for transferability of duty credit scrips under Vishesh Krishi and Gram Udyog Yojana scheme by allowing transfer of scrip for import of cold chain equipment to units in the Food Park.
For the beleaguered readymade garment industry, the benefits under the Market-Linked Focus Product Scheme provided earlier for six months has been extended up to March 31, 2011 for exports to 27 countries of the European Union.
Wednesday, June 23, 2010
What is new in Microsoft Bing?
Microsoft is making its Bing search engine more entertaining by
spotlighting music, films, games and television shows.
spotlighting music, films, games and television shows.
The US technology giant added an array of features to make it easier
for Bing users to find and play their favorite songs, movies, TV
programs or online games.
"In this release of Bing one of the biggest investments we are making
is in the area of entertainment," Bing senior vice president Yusuf
Mehdi said in a blog post.
"Bing is making a first step today to help make entertainment on the
Web easy and fun, so you spend less time searching for entertainment
and more time doing the stuff you love."
Bing software was modified to improve results to entertainment-related
searches and a page devoted to the content was launched at
www.bing.com/entertainment.
Microsoft tapped into its games divisions, which makes titles for the
company's Xbox 360 videogame consoles, to arrange for people to be
able to play scores of popular online games on Bing pages.
Bing users can search out song lyrics as well as get videos or concert
tour dates of musicians and even sample tunes.
Bing offers new tools to get information about movies along with local
restaurant, parking and other information "you need to get to the
movie stress-free and have a great night out," according to Mehdi.
Microsoft is also tailoring Bing for television lovers.
"We've brought together a very comprehensive collection of full-length
TV episodes and visually organized them so it's easy to find what you
are looking for and start watching," Mehdi said.
"And if you are one of those people who watch TV on an actual TV,
we're pulling in guide information to help you easily find what's on
in your area from your service provider."
RBI cautioned against hawkish monetary policy stance
The country's chief statistician Pronab Sen has cautioned RBI against
taking a hawkish monetary policy stance, saying too many measures to
control inflation can be detrimental to growth.
taking a hawkish monetary policy stance, saying too many measures to
control inflation can be detrimental to growth.
"Very very strong measures (monetary) can be detrimental to growth,"
Mr Sen said, while inaugurating a workshop on the National
Consultation on Certification of Project Managers on Wednesday.
Core inflation entered provisionally double digits in May, fuelled by
over 16 per cent food inflation.
While the Government has been projecting the economy to expand by 8.5
per cent this fiscal, it has acknowledged inflation as a major cause
for concern.
Asked if the Reserve Bank of India could take some monetary steps, Mr
Sen said: "Yes, it could as core inflation is starting to get
worrying. But it is not just inflation, it is full bunch of other
sectors that RBI need to take into account (before tight ening of the
money supply)."
Factory output grew at a healthy rate of 17.6 per cent in April, but
higher interest rate regime could curtail corporate spending and hit
borrowing for new investment — key to economic growth.
Asked whether RBI will raise the amount of deposit that banks are
mandated to park with the apex bank (CRR) or the short-term lending
rate (repo rate), Mr Sen said, "Whether it is CRR or repo rate, it
depends on the diagnosis of the problem."
Asked when the apex bank should take the monetary steps, he said,
"Anytime, RBI has to take a call on that."
In April, RBI had hiked key short-term rates and CRR by 25 basis
points each to rein in inflation.
The apex bank hiked repo and reverse repo by 25 basis points each to
5.25 per cent and 3.75 per cent, respectively.
UK's new Chancellor sets out his ‘unavoidable' Budget
A new tax on bank assets, a freeze in payments to the Queen, and a
hike in sales tax are hardly the trappings of an easy first budget for
a young Treasury minister.
hike in sales tax are hardly the trappings of an easy first budget for
a young Treasury minister.
Yet these were some of the tough measures announced by Mr George
Osborne, Britain's youngest Chancellor, in over a century, as he
pledged to dramatically reduce the nation's deficit, which is now the
second highest in the whole of Europe.
Summing up his measures as "tough but fair", Mr Osborne declared it to
be an "unavoidable" budget, needed to restore confidence in the
economy.
There were few surprises in Mr Osborne's budget, though the most
significant of all announcements was the confirmation that as of next
year, both British banks and banks with the UK operations would face a
levy on their balance sheets – in agreement with France and Germany.
This could generate as much as £2 billion of annual revenues,
estimated Mr Osborne, brushing aside criticisms that it was not
reasonable or fair to introduce it before the rest of the world. The
news received a cautious welcome from the British Banker's
Association.
"We know this is a difficult budget for everyone," it said, adding the
caveat that the levies "must not prevent the industry in the UK from
being able to compete. It is essential that the international banks do
not find themselves taxed multiple times for the same thing."
As if to demonstrate that everyone – absolutely everyone – would be
sharing the burden, Mr Osborne also announced that the so-called Civil
list – received by the Queen from Parliament for her public duties and
currently £7.9 million – will be frozen for the next 30 years.
As of midnight – the highest rate tax payers will see a 10 per cent
increase on their capital gains from the sale of assets such as second
homes or shares to 28 per cent, added Mr Osborne.
However, top earners were far from the only targeted, with child
benefit payments frozen, and a two-year pay freeze for public sector
workers, while the sales – or value-added tax on most consumer goods
will rise to 20 per cent from 17.5 per cent.
One of the few winners were businesses – which will see the current
rate of corporate tax of 28 per cent fall to 24 per cent over the next
four years, while small businesses will also see a small drop in
levies.
Such measures would show that Britain was ready "open for business,"
declared Mr Osborne. The measures announced so far won't be the last
this year – at the end of October, the results of a spending review
will identify even more ways to cut government spending.
Despite heavy criticism and warnings from opposition politicians as
well as economists that fiscal tightening could hamper the economic
recovery, Mr Osborne has gone ahead with the deep deficit cuts, amid
fears that its scale could undermine confidence in the UK. The
severity of Britain's fiscal troubles have recently been highlighted
by ratings agencies Standard & Poor's and Fitch, triggering concerns
that the nation's sovereign ratings could be cut
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