NEWSLETTER

12 Pages 23rd Aug 2012 – 29th August 2012 www.xedintellect.com

BUSINESS NEWS

ECONOMIC INDICATORS 2 COVER STORY 3 PERSONALITIES OF THE WEEK 4

CORPORATE INTELLIGENCE 5 NEWS ANALYSIS 6 NEO CORNER 11

NEWS DIGEST…

IN BRIEF

PERSONALITIES OF

THE WEEK

CORPORATE INTELLIGENCE

MCX Gold: 30,900

(as on August 29, 2012)

Rs Vs Dollar: 55.65

(as on August 28, 2012)

ECONOMIC

INDICATORS

Russia enters the World

Trade Organization (WTO)

COVER STORY

Hurricane Isaac torments US on anniversary of

Hurricane Katrina

GLOBAL NEWS

Bundesbank chief: ECB bond

buying like an ―addictive drug‖ for weak economies

Mamata Banerjee

… a weekly news bulletin

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MISCELLANEOUS NEWS

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PART TWO

Vinod Rai

INDIAN LIFE INSURANCE COMPANIES

ROCKET INTERNET

KKKNNNOOOWWW YYYOOOUUURRR BBBAAASSSIIICCCSSS::: SSSEEECCCUUURRRIIITTTIIIZZZAAATTTIIIOOONNN Investopedia defines Securitization as ―The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors. The process can encompass any type of financial asset and promotes liquidity in the marketplace.‖ An example would be a financing company that has issued a large number of auto loans and wants to raise cash so it can issue more loans. One solution would be to sell off its existing loans, but there isn't a liquid secondary market for individual auto loans. Instead, the firm pools a large number of its loans and sells interests in the pool to investors. For the financing company, this raises capital and gets the loans off its balance sheet, so it can issue new loans. For investors, it creates a liquid investment in a diversified pool of auto loans, which may be an attractive alternative to a corporate bond or other fixed income investment. The ultimate debtors—the car owners—need not be aware of the transaction. They continue making payments on their loans, but now those payments flow to the new investors as opposed to the financing company.

MCX Gold 30,900 as on Wednesday, August 29, 2012 Source: Economic Times Over all price movement trend – Upwards 1. Gold has been gaining new highs recently based on global influencers like positive news from US Fed Reserve hinting at further easing of monetary policy. 2. The current rise in Gold prices also reflects fund movement from equities (shares and stock) to Gold as people feel it is a more reliable investment based on current economic situation. 3. The current strength of the dollar which is riding all time highs is also influencing gold prices. A still weak rupee is further pulling up gold prices as India is the largest importer of Gold. 4. In India with gold prices reaching such incredible highs, gold imports are likely to dip as domestic consumers curtail purchases of the metal. Rs Vs Dollar – 55.65 closing as on Tuesday, August 28,2012 Source: Economic Times Analysis: 1. The Rupee has shown a trend towards progressive weakening. ECB chairman Mario Draghi‟s focus on Eurozone and the resulting strengthening of the Euro pushed the rupee down to as low as 55.85. 2. The recent parliamentary disruptions over the coal allocation issue has also raised concerns for the Rupee‟s situation. 3. A weakening Indian economy has raised concerns and it is being touted that the rupee will only strengthen to sub 55 levels if the GDP growth rates climb beyond 5%.

The benchmark interest rate in India was last reported at 8.00 percent. Historically, from 2000 until 2012, India Interest Rate averaged 6.49 Percent reaching an all time high of 14.50 Percent in August of 2000 and a record low of 4.25 Percent in April of 2009. In India, interest rate decisions are taken by the Reserve Bank of India's Central Board of Directors. The official interest rate is the benchmark repurchase rate. The interest rate term structure is the relation between the interest rate

and the time to maturity of the debt for a given borrower in a given currency. Interest Rates are commonly plotted on a graph which is informally called "the yield curve." Yield curves are usually upward sloping asymptotically; the longer the maturity, the higher the yield, with diminishing marginal growth. There are two common explanations for this phenomenon. First, it may be that the market is anticipating a rise in the risk-free rate. Another explanation is that longer maturities entail greater risks for the investor .

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In today‟s era of cut-throat competition, patent infringement news items are commonplace. The latest one about the two mobile giants Apple & Samsung is quite interesting & intriguing. It‟s not only about patent infringement but also about the desperation of Apple to become a monopoly by killing the competition. This case also throws light on how patent rights of a country can be exploited to decimate products of the competitors. The trial that concluded last week opened the World War of patents. The verdict is out and Samsung has been fined a penalty of one billion dollars & a potential ban on the sale of its products in the US, however, the final hearing on banning the import of Samsung‟s products is yet to take place.

The Fallout: Apple accused Samsung‟s Android Phones & tablets of

copying features that were patented by Apple. Apple sued Samsung (which also happens to be its component supplier) of patent infringing on three utility patents & four design patents. It also claimed for the rectangular design of its devices under a design patent 504,889. The patent war between Apple & Samsung extended to 10 countries (including South Korea) with 50 litigations for damages claims.

Court’s Verdict: Apple alleged Samsung of knocking off some features from its iPad & iPhone. Apple wanted Samsung to pay $ 2.5 billion in damages & a court‟s injunction banning Samsung from selling some of its popular phones in the US. On the contrary, Samsung also accused Apple of stealing & claimed that some of Apple‟s patents are invalid & asked for $ 442 million. The deliberations that lasted for three weeks, which included the daunting task of answering of 700 questions by the jurors, found Samsung guilty for infringing on Apple‟s six products. Apple got scot free & Samsung was awarded a penalty of $ 1 billion & forbidden from selling some of its popular products in the United States. Samsung‟s most popular devices such as Galaxy S, Galaxy SII, Nexus Galaxy Tab & Tab 10.1 that might face a ban in the United States.

Is patent infringement the only issue? Apple and Samsung are mobile rivals, especially in smartphones. Apple dominates the tablet market, but Samsung is the biggest seller of mobile phones in the world. According to Gartner, Samsung occupies approximately 22 per cent of the market where as Apple has around 7 per cent & occupies number 3 position. Besides, being the market leader in smartphone

category, Samsung is also the biggest vendor of Google‟s operating system Android. Analysts believe that Google‟s success in penetrating the market has irked Apple. Remember the words of late Steve Jobs “I will spend my last dying breath if I need to, and I will spend every penny of Apple‟s $40 billion in the bank, to right this wrong. I‟m going to destroy Android, because it‟s a stolen product. I‟m willing to go thermonuclear war on this”. Apple has always accused Google of patent infringements, however, never proved it. In fact, Google is suing Apple for infringing Motorola patents that it acquired when it bought that company. In case, Google‟s Android is found infringing Apple‟s patent, other mobile set manufacturers that use Android such as HTC, Sony & LG may have to pay a heavy price. The verdict is undoubtedly negative for Android ecosystem.

Impact on the mobile industry: The impact of the verdict cannot be predicted as yet. Some believe that

end users will have to pay more & some believe that mobile companies will be propelled to produce a newer variety of devices. Apple Samsung saga can be a lesson for other mobile manufacturers to innovate & outperform their competitors. But patent infringement issue still remains unaddressed – How a rectangular design can be patented & how all features of an electronic device can be changed so that they don‟t bear any resemblance to the features of any other device. This case certainly warrants a review of patent laws.

Conclusion: The smartphone wars highlight a very important question: what‟s the correct tradeoff between

competition & patent? The courts hearing these cases have a very important role to play as hundreds of millions of consumers use tablets & smartphones. The only doubt which remains unclear is the efficiency of the patent system. However, one thing is for sure; such trials are great news for the law firms laughing all the way to the bank.

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Mamata Banerjee - Chief Minister of West Bengal Mamata Banerjee is the 11th Chief Minister of West Bengal and the first women to hold the office. She is the Founder & Chairperson of All India Trinamool Congress. In 2011, Banerjee led her party to a massive win and defeated the world‟s longest-serving democratically-elected communist government, Communist Party of India (Marxist), thus bringing an end to 34 years of Left Front rule in the state. Also known as Didi, she has a knack for being in the news for all the wrong reasons-such as taking a dictatorial stance on the recently published cartoons, the Nandigram fiasco which forced Tata Motors to move its Nano plant from West Bengal to Gujarat or the stubborn opposition to hike in railway fares which led to the resignation of Railway Minister, Dinesh Trivedi, a member of her own party. In 2012, she was named as one of the “100 Most Influential People in the World” by Time magazine.

Rise to Power!!! Mamata Banerjee was born in Kolkata in 1955. Her father, Promileswar Banerjee, was a freedom fighter. She started her political career with the Congress party and in the 1970‟s worked her way to the top to become the General Secretary of Mahila Congress. In the 1984 general elections she defeated veteran communist politician Somnath Chatterjee, to become one of India‟s youngest parliamentarians ever. In 1991, Mamata Banerjee was made the Union Minister of State for Human Resource Development, Youth Affairs & Sports and Women & Child Development but was discharged of her portfolios in 1993 when she protested against her own government. In 1997, Banerjee started the All India Trinamool Congress and rapidly turned it into the main opposition party to the long-standing Communist Party in the state. In 1999, she joined the NDA government and was made the Railway Minister.

Power not Enough??? Before the 2009 parliamentary elections, Mamata Banerjee joined the UPA and was made the Railway Minister for the second time. During her 2-year tenure she turned the Indian Railways into a loss making company, due to her populist measures like introducing more passenger trains and was also blamed for neglecting her duties – concentrating on campaigning for the upcoming State elections. With her victory in 2011, one of her first decisions was to return 400 acres of land to Singur farmers. Her stance was criticized as being discouraging to the growth of industries in the state. In recent months, Banerjee‟s irrational outbursts have made her infamous among a vast spectrum of people including the Indian Judiciary which is considering charging her with „contempt of court‟. In the words of veteran journalist Vivian Fernandes, "It is getting clearer by the day that Mamata Banerjee's poribortan is not a change for the better. Like the communists, she can only tear, not build."

Vinod Rai - Comptroller and Auditor General of India [CAG] Vinod Rai is the current CAG who assumed office in Jan 2008. Mr Rai is frequently in the news for his unforgiving audits which blame various government departments, ranging from the biting report highlighting sloppy preparation for the Commonwealth Games, to flawed allocation of 2G-spectrum & the latest CoalGate scandal. In spite of having one of the toughest jobs in the country, Rai‟s colleagues say that he has an uncanny ability to cut through red tape & get work done.

Working his way to the top!!! Vinod Rai holds a Masters in Economics from Delhi University and a Masters in Public Administration from Harvard University. He is a 1972 batch Kerala cadre IAS officer. Serving as a Collector of Thrissur for 8 years, he was instrumental in bringing about the development of the city. Rai has handled a variety of portfolios both at the Central and State level including:

MD of Kerala State Co-operative Marketing Federation Principal Secretary (Finance) in the State Government of Kerala Senior positions in the Ministries of Commerce and Defence, Government of India

Prior to becoming the CAG, Rai worked as a Secretary in the Ministry of Finance where he was responsible for managing the financial services sector including banks and insurance companies. He is credited with setting up the India Infrastructure Finance Company and successfully served on the Board of Directors of various banks including SBI and ICICI. Controversy’s Child!!! On the international scene, Vinod Rai is currently Chairman of the UN Panel of External Auditors, a member of the International Organization of Supreme Audit Institutions (INTOSAI) and the Chairman of the Governing Board of Asian Organization of Supreme Audit Institutions (ASOSAI) - a post he was elected to in February 2012. During Rai‟s tenure, CAG reports have been scandalous and questioning of policies of Congress led-UPA. The reports slammed the Government‟s running of its flagship rural employment guarantee scheme, accused the government of allocating scarce coal mines at throw-away prices, criticized the blatant generosity to GMR(an infrastructure company) in an airport project among other things which led to confrontations between the two institutions. Vinod Rai, on his part, is trying to convince theGovernment that CAG Audits can be constructive and should be taken in the righ spirit.Considering he is an avid tennis player and loves trekking, he ought to know a thing or two about “spirit”.

"At times

favourable

verdicts are

given in

return for

money.

These days,

judgements

are

purchased.

There is

corruption

among a

section of

the

judiciary."

“You won't

want to

read them.

No

parliament

arian reads

them, and

after I've

sent them,

even I

won't read

them.” On

Social

Audits

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Indian Life Insurance Sector was opened up for private companies in the year 2000. Since then the sector

has grown rapidly with companies trying to acquire larger market share with new products & increasing their reach across various geographies. The sector, which has been predominantly ruled by the state-run Life Insurance Corporation of India, ranked 15th in the world with a share of 1.58% in world insurance premium. It saw speedy growth only till 2009 – when the world economy was afflicted by recession - and after that has witnessed downfall with many private players in huge losses. The early birds to enter the life insurance scene were the lucky ones, but the companies which entered in mid 2000s including Future Generali are on their deathbed. Amidst accumulating losses these firms are slowly diversifying from the insurance business. The past 2-3 years have been tumultuous for life insurance sector as it saw decline in premium collected, which was at ₨ 2.65 lakh crores in FY 10-11. However, reports by IRDA states that out of the total population of over 100 Crore, only 57 crore Indians are insured (2010), which leaves a significant market yet to be acquired by insurance companies.

Life Insurance Corporation of India (Life & Health Insurance, Investment Management & Mutual Fund)

Overview: LIC is the single largest life insurance company in India with a market share of roughly 69% and as a PSU funds about 25% of the expenses incurred by the government. Besides the core insurance business which includes products like health plans, Unit plans – which consists of ULIPS (Unit linked insurance plans – marketed as a channel to invest in stock markets), micro insurance plans etc., LIC also has diversified businesses like housing finance, mutual fund, pension fund & cards services. LIC has always maintained its position as one of the best companies in the Indian service industry & also acquired the 8th position in the list of most trusted brands of India published in Brand Trust Report 2011. In March 2012, LIC came as a savior to ONGC and bought about 37.7 Crore shares (worth ₨ 11,450 crore) of ONGC at the end of the auction day after the latter‟s high priced shares failed to attract investors.

ICICI Prudential Life Insurance Company (Life & Health Insurance)

Overview: ICICI Prudential Life commenced operations after the Indian government liberalized the insurance sector in the late 90‟s. The company has maintained its market leadership (on new business retail weighted basis) among other private life insurance companies since past 11 years. The products offered by ICICI are term plans, wealth plans, child plans, health plans, retirement plans, group plans & rural plans. ICICI Prudential has underwritten over 12 million policies, since it started operations & has conferred various awards. The company‟s continuous focus on building flexible products, wider distribution network & higher client servicing standards has helped it evolve rapidly while catering to various customer segments across the nation.

SBI Life Insurance (Life & Health Insurance)

Overview: According to the latest reports by IRDA, SBI Life Insurance is the top company (in terms of new business premium) with a market share of around 20% in the private life insurance sector. It serves consumers with products like protection plans, savings plans, child plans, group plans etc. Formed by a JV between India‟s largest bank & one of the world‟s largest insurance company, SBI life has managed to acquire such a feat in a relatively short time due to its multi-distribution model. While cross-selling insurance along with other products like personal loans, housing loans & pension plans, the company has managed to access SBI‟s consumer base of over 100 million people across all regions in the country. After posting a profit growth of over fifty percent at ₨ 556 crores in the financial year ending 2012, SBI Life is now

planning to announce a dividend of five percent.

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Founded: 1956

Formed By: Merger of 243 insurance

companies & provident societies

Owned by: Government of India

Chairman: D. K. Mehrotra

Total Assets: ₨ 13.25 lakh crores (2010)

Headquarters: Mumbai

Zonal Offices: 8

Branches: 2,048 (across India)

Agents: Over 13 lakhs

Founded: 2000

Formed By: JV between ICICI bank (74%) & Prudential Plc (26%)

Total Capital: ₨ 4,780 crores (2011)

MD & CEO: Sandeep Bakhshi

Total Assets: ₨ 68,000 crores (2011)

Headquarters: Mumbai

Offices: 1,400 (across India)

Touch Points: 5,000 (Distribution) &

10,000 (Service)

Advisors: 1.75 lakhs

Founded: 2001

Formed By: JV between SBI bank (74%) & BNP Paribas Cardif (26%)

Total Capital: ₨ 3,000 crores (2011)

MD & CEO: Mahadev Nagendra Rao

Total Assets: ₨ 40,163 crores (2011)

Headquarters: Mumbai

Offices: Over 18,000 (branches of SBI

across India)

Distribution: Bancassurance channel

Advisors: 80,000

1) Russian entry into the World Trade Organization (WTO) – ET/Livemint/Reuters IMPACT: The Russian Federation became the latest member of multilateral trade organization – WTO, last week. The Russian authorities had started negotiations for their entry two decades ago when the DOHA development round was commenced in 2001. The Kremlin, which is now free to trade with other 156 member nations of WTO, has reduced its import taxes by up to seven per cent from the previous 15%. It will also acquire the “Most Favoured Nation” tag which will eradicate any discriminatory practices followed by other countries against the nation. According to the membership rules, Moscow has agreed to:

Liberalize 11 sectors and over 100 sub-sectors under GATS (General Agreement on Trade in Services)

Allow only subsidiaries of foreign banks to enter the country & capital investments by them is only up to 50%

Unlike any other country, which opened up their market for foreign banks after becoming members of WTO, Moscow has kept foreign banks from directly entering the country. Also it has protected its domestic automotive industry, by negotiating with WTO to continue its auto production law – mandatory production & local sourcing for next six years after which the law will be removed. The US Lookout: The United States is in a dilemma as pressure mounts on it to eliminate the Jackson-Vanik amendment which forbids the country to provide normal trade relations status to Russia. The amendment was introduced as a measure to restrict trade with countries that do not allow free immigration. Russia used to charge taxes from Jews to immigrate into the country. KEY PLAYERS: WTO, Russia, US, Argentina WHY IT IS IMPORTANT? The Russians also made a big bang entry with its first attack on Argentina – criticizing the country for its stringent import rules. Russia‟s ability to negotiate terms with WTO – protecting its local companies, has come as encouraging news to developing nations that wish to make changes in trade agreements with WTO. 2) Internet banking is a hit for ICICI bank – Moneycontrol.com/Reuters IMPACT: With the increase in internet penetration, the banking industry has undergone a revolution with increasing number of customers opting for the internet for their bank transactions. The company in forefront to take full advantage of the opportunity is India‟s leading private sector bank – ICICI. According to ICICI chairman, Chanda

Kochhar, the bank has seen a substantial increase in the user base of online banking & latest results show that internet banking transactions constitute about one third of the overall transactions carried out by the bank. The mobile phone market – which has changed completely after the introduction of smartphones and is currently growing at a rate of 100% - has helped drive this growth. ICICI has now introduced facilities like e-locker and electronic branch to cater to the faster growing internet consumer segment. KEY PLAYERS: ICICI Bank, Internet Banking, RBI WHY IT IS IMPORTANT? Contrary to ICICI‟s views about internet banking, the

RBI, few weeks ago had announced that its initiative of mobile banking had failed miserably as it received tepid response from customers. If the current trends are seen, many private & foreign banks in India are encouraging transactions (internet & mobile based) that would not require customers to visit banks. Internet banking is a boon to consumers who can perform their banking operations from the comfort of their homes & offices or in fact anywhere. 3) Mickey & Donald maker - Walt Disney Company to invest in India – ET/NDTV/Reuters IMPACT: The finance minister is on his heels trying to uplift the nation from the current economic slowdown. With the country in dire need of foreign investments, the FM has asked the board of foreign investment promotion to fast track the process of approval of investment propositions by global companies in single brand retail in India. And with this speedy process the board has managed to approve over 60 proposals of foreign companies‟ investments in India in past four weeks. One such company is the American mass media conglomerate Walt Disney, which will invest about Rs. 1,000 crores into the country. According to analysts, Disney‟s investments were related to its acquisition of UTV Software Communications, one of India‟s leading media & Entertainment Company. UTV is the wholly owned subsidiary of Walt Disney & the latter wants to restructure major operations of UTV & might invest the amount for this purpose. Disney plans to focus on segments like interactive, mobile & online TV. KEY PLAYERS: The Walt Disney Company, UTV, Finance Minister WHY IT IS IMPORTANT? The Indian subsidiary of Walt Disney had acquired a controlling stake of 50.44% in UTV Software Comm in June 2011. Walt Disney brought out the public shares for about Rs. 2,000 crores and delisted the company in subsequent months.

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4) Sony Mobile to launch cheaper smartphones – The Hindu Business Line/TOI IMPACT: The mobile phone market is going to be more competitive, as the once sought after premium brand Sony has announced the launch of a series of low cost smart-phones priced below Rs. 11,000. The latecomer in the smart-phone market currently has the Xperia series priced between Rs. 13,000 to Rs.40,000. According to reports, smart-

phones shall acquire majority share in the global handsets market with projections for 2013 putting smart-phone exports at 54% of the total mobile phone market. Sony will compete head-on with the likes of Samsung, HTC & Nokia to increase its presence in the smart-phones market. Until now, Apple & Sony were the only premium brands; but it seems after parting ways with Ericsson, Sony wants to shed its premium image. Sony Ericsson lost majority of its market share while shifting from feature phones to smart phones three years ago. It had only a meagre share of 12% in the smart-phones market which was dominated by the South Korean giant Samsung. KEY PLAYERS: Sony Mobile, Smartphone Market WHY IT IS IMPORTANT? Sony acquired Swedish telecom giant Ericsson‟s share in

February 2012, in the joint venture that was formed in 2001. Sony Mobile shall arm the cheaper smartphones with applications and features that would be outsourced from its sister companies. The company will source features from the group‟s subsidiary businesses like Sony Music, Sony Entertainment, Sony Television and Sony Pictures. 5) New Lifeline for Flipkart – Company secures fourth round of funding – TOI/Moneycontrol.com IMPACT: One of India‟s leading e-commerce Company, Flipkart was in troubled waters a few months ago – with shortage of funds to run its business. Since last year, the company has been in talks with various investment companies for funding - to keep the business afloat. Flipkart‟s talks with global equity investment firm also went sour last year as the latter undervalued the former‟s stake. However, the South Africa based media conglomerate Naspers has now agreed to invest in the company and shall contribute over $90 million in the total investments of $150 million. The total investments, which would secure Flipkart‟s operations for next three years, shall be made by MIH (subsidiary of Naspers), Iconiq Capital & Flipkart‟s existing shareholders – Tiger Global & Accel Partners. The company intends to invest this amount in enhancing its product portfolio, supply chain operations across the country & finally building a talent pool for top management. KEY PLAYERS: Flipkart, Naspers, Iconiq, Tiger Global, Accel Partners WHY IT IS IMPORTANT? Flipkart, whose second major shareholder is now Naspers, launched the “Cash on Delivery” payment model two years ago. The company projected that this model would help revolutionize the Indian e-commerce industry. But the company itself became a victim of the drawbacks of cash on delivery payment system. The money was locked up with logistics companies for about 2-3 weeks which is a long period considering start-ups are always in need of money. Secondly, it invested heavily into building supply chain network thus drying up its funding pool earlier than expected. 6) SBI chief demands abolition of CRR, RBI disagrees- ET/BS/Moneylife IMPACT: After being under-fire for not being able to reduce its share of NPAs (non performing assets) SBI chief, Pratip Chaudhuri, seems to have found a unique solution for it- abolishing the Cash Reserve Ratio. He reasons that because it doesn‟t earn any interest, it‟s a dead asset or a kind of tax on the banking system, keeping banks at a disadvantage against NBFC‟s & mutual funds. His assertions are based on the fact that SBI‟s annual loss due to CRR can be approximated to nearly 30% of the declared net profit in FY12 or ₨ 3,500 crore. According to him, for RBI, SLR (statutory liquidity ratio) & Open Market Operations (OMO) are enough to fight inflation. Further, he insisted that RBI‟s definition of NPA is quite stringent and needs to be changed. RBI deputy governor KC Chakrabarty on the other

hand sees no merit in the argument. He even suggested SBI chief to find some other place if he is not okay with RBI‟s regulatory environment. KEY PLAYERS: Pratip Chaudhari, KC Chakrabarty WHY IT IS IMPORTANT? The idea to relax CRR is not new. Finance Ministry had also proposed RBI to offer 7% interest on CRR deposits just about ten days ago. CRR which is currently at 4.75 per cent has been one of the main monetary tools used by RBI to control solvency and liquidity issues. At the same time, SBI chief‟s demand is not entirely baseless.

India would not be the first nation to abolish CRR if it decides to; Australia, Canada, New Zealand, Sweden & UK have also removed CRR from their system & now depend on OMO for controlling inflation.

7) China continues its bullying in the south-China sea region- WSJ/Bloomberg/Indian Express IMPACT: State owned China National Offshore Oil Corp. has opened up 26 blocks in the disputed South China Sea region for foreign exploration companies. In the past, Vietnam & Japan have opposed China‟s interference in this region. The area put under auction, which is second this year, is just 50 km from Parcel Islands which China had completely taken over from Vietnam after a conflict in 1974. However, apart from Vietnam, Philippines, Taiwan, Malaysia, & Brunei still claim some parts of the Parcel Islands. This hasn‟t prevented China from increasing its dominance in the region. It has also started building a city named Sansha on one of these islands, where it plans to move a military garrison. In an earlier auction in June, China had offended world‟s third largest economy- Japan by offering one of the blocks very close to an island which somehow falls within the official maps of both China & Japan. KEY PLAYERS: China, Vietnam, Japan WHY IT IS IMPORTANT? It may be recalled that ONGC decided to leave the South China Sea in May, which it officially claims was done because the project was unviable. However, some experts also like to view it as a government decision taken to strengthen the Sino-Indian relationship. Although, the US Secretary of State Hillary Clinton will be discussing the issue in an extended trip to Asia-Pacific, that includes visits to China and Russia, the US has so far remained ambiguous in taking a stand over the issue. 8) Telenor looking for a new partner for its India business- BS/ET/Hindu Business Line IMPACT: Norwegian telecom major Telenor is looking for a new business partner to which it will offer 26 per cent stake in the joint venture. It also wants to make sure that the new partner will have nothing to do with operations, which means it should not be a telecom company. The company also made clear that it will avoid real estate players as well because its previous JV with Unitech (Delhi based real estate company) was far from perfect. Earlier this month Telenor was forced to settle ₨ 9809 crore of Uninor loans to the banks. Telenor has blamed Unitech for most of

its troubles, as it obstructed equity inflow via rights issue and prevented Uninor‟s shareholders money from getting used for funding. This essentially meant the JV had to take loans from banks, which turned hostile after the company lost all 22 of its telecom licences in the Supreme Court‟s 2G verdict this year. Uninor is now evaluating government‟s policy on reallocation of the spectrum. At the same time it faces a possible backlash from its miffed partner Unitech, which may engage the company in legal hassles. KEY PLAYERS: Uninor, Unitech, Telenor WHY IT IS IMPORTANT? Telenor has operations in 11 countries. Its revenue growth has come down to 7 per cent in 2007 from 12 per cent in 2011. However, its top four markets have generated 2.5 to 6 times the revenues it has generated from its 45.5 million strong subscriber base in India. It may suggest that Indian operations of the company are highly unprofitable but the tremendous growth in India (see box) has forced it to retain its hold in the region. The company has a no frills business model and plans to add 675 new cell sites to its existing 3,076 sites across India.

9) Export slump builds mountains unsold goods in China – Nytimes/Moneycontrol/ Hindu Business Line IMPACT: Hit by global economic slowdown, piles of unsold goods are now a common sight in factory warehouses, shop floors and car dealerships in China, posing a threat which is bigger than the 2008 crisis. The trend appears somewhat subdued in government reports which experts find dubious. According to HSBC market survey, the rise in inventory of finished goods was highest in August this year since it started its surveys in 2004. This may result in a cycle of gloom where demand by Chinese companies would decline, resulting in fall in prices of goods by global suppliers & overall reduction in manufacturing across the globe. HSBC's flash employment sub-index has remained at one of its lowest levels that it reached in June this year. It shows conditions similar to what China had been in at the end of March 2009.

Chinese government has also complicated the matters with its policies supporting the auto & real estate sector in the country. Chinese car market is now biggest in the world; still auto-companies are forced to operate at only 65 percent of their capacity which translates into losses. Real estate sector has different worries as a ban on purchases of second or subsequent homes has brought down real estate prices considerably. However, even this hasn‟t filled up the empty houses across the country.

KEY PLAYERS: Chinese companies, China Government

WHY IT IS IMPORTANT? China is witnessing deeper than expected slump due to continuing Euro Zone crisis, affecting exports to its biggest trade partners. HSBC PMI (purchasing Managers‟ Index), which separates slump from growth at a numerical level of 50, has remained below 50 for China for the last ten months. All this may require greater efforts for resolution than masking or obstructing of economic data by government, a fact that has become widely known after release of several reports from leading organisations. 10) FinMin: Banks should force builders to cut property rates to boost demand- ET/ MoneyLife/ Firstpost IMPACT: Since banks finance both builders and property buyers, they can have a say in the pricing of property-especially the housing sector. According to RBI data, banks have lent ` 1.2 lakh crore to builders and close to ` 2.5

lakh crore to home buyers in the first 3 months of the year alone. Experts are of the view that builders should not only depend on banks to lower interest rates on home loans to revive the stagnating economy but should also

contribute to the process by lowering home prices. This may not be difficult as approximately 5 lakh flats are lying vacant or unsold in Mumbai alone leading to a huge amount of blocked capital which is harmful for the Indian economy as this cannot be invested in other instruments and is simply losing value. KEY PLAYERS: Finance Ministry, Government-owned banks, Real estate developers

WHY IS IT IMPORTANT? A few years back, huge investments were made in this sector to create affordable housing for the masses. But a lot of this money has increased speculation and created an asset bubble. Even in the changed scenario after the economic downturn, developers do not want to reduce their profit margins and investors do not want decreasing returns and as a result, consumers end up paying higher prices. Also, in

most cases builders do not pay for land (which makes up 70% of the sale price) and thus have no qualms about holding on to pilling-up inventories. In the long run, this situation can develop into a housing bubble similar to the 2008 sub-prime crisis witnessed in USA. 11) Bundesbank chief: ECB bond buying like an ―addictive drug‖ for troubled economies- Reuters/ BS IMPACT: The primary objective of the ECB is to maintain price stability within the Euro zone, which is the same as keeping inflation low. The bank does this by collateralised borrowing or repo agreements. To contain the Euro zone crisis, the ECB purchased bonds issued by the governments of weaker states at the risk of deteriorating its balance sheet. Over time, this proved harmful for the stability of the Euro as tax revenues and credit of wealthy member nations was used to refinance the previous borrowing of weaker member nations. A section in the ECB has criticized this strategy as being synonymous with outright financing of irresponsible Governments. KEY PLAYERS: European Central Bank (ECB), German Bundesbank (Central Bank of Germany) WHY IS IT IMPORTANT? The statement exposes a widening rift within the ECB that does not bode well for financial markets. The fact that Germany is reluctant to finance the debt of weaker countries indicates that it would prefer that Greece, Italy, Portugal and Spain left the Euro zone atleast temporarily. The German government's current position is, to keep Greece within the euro zone, but not at any cost. If the worst comes to the worst, priority will be given to the Euro's stability. But seeing that Bundesbank is just one of 17 constituents in the ECB, which is headed by Italian Mario Draghi, its stance is not likely to make any significant impact on ECB‟s future bond buying plans. 12) US Republicans consider a return to Gold Standard- ET/ infowars IMPACT: The Gold Standard was done away with more than 40 years ago. If the Republicans are successful in bringing about its return, gold prices would increase to $ 10,000 an ounce (which is 6 times higher than the current price), the dollar‟s creditability would all but disappear and global superpowers would risk a new trade war. A reintroduction to the Gold Standard has gained widespread support in recent years amid an escalating debate over how to tackle US debt levels and spending, hoping that it will force USA to live within its means. However, the World Gold Council foresees such a scenario as improbable citing international disagreement over the converting price and

the fact that annual growth in gold stock may not match the monetary base. KEY PLAYERS: Republican Party (USA), Federal Reserve, US Government WHY IS IT IMPORTANT? The Republican Party reflects American conservatism in the US political spectrum-basing its ideology on the support of classical principles. The party‟s desire to return to the Gold Standard reflects this ideology. The practical hurdles to bring about this change cannot be ignored. But it is also true that Governments around the world are renewing their interest in keeping a part of their reserves in the form of gold in the face of economic uncertainty. World central banks as

a group became net buyers of bullion in 2010 after two decades of showing net sales.

13) Hurricane Isaac torments US on anniversary of Hurricane Katrina – The Gurdian/ NYtimes/ SF Gate IMPACT: Hurricane Issac has chosen exactly the same timing that Hurricane Katrina did for invading the Gulf coast seven years ago. However, this time devastation is much more pronounced. The warnings by state, were misunderstood as they showed a slightly milder hurricane on paper. It was downgraded from Category 1 hurricane (wind speeds of 80 mph) to a tropical storm by mid afternoon on Wednesday. Katrina, for comparison was a Category 3 hurricane (wind speeds of 130 mph). However, because the winds are slower there is huge amount of rain in relatively concentrated areas, bringing major damage. On Wednesday, Governor of Louisiana Bobby Jindal said that more than 4,000 people were in shelters across the state. He added that the efforts of more than 5000 National Guard troops have prevented any fatality, which is remarkable considering most of them were caught off guard by the effect of the storm. KEY PLAYERS: Rescue teams, US Government WHY IT IS IMPORTANT? The storm has caused flash floods as the Mississippi river flows in the region. Though the storm is milder on paper, its threat is as big as Katrina. It has struck America's largest oil refineries along the Gulf Coast from Texas to Alabama, in exactly the same fashion as Katrina did. This has forced some refineries to close down, causing a rise in oil prices across the nation. 14) The Indian Wellness Industry to double by next three years: PwC – Moneylife/FE IMPACT: With the growing disposable income of the Indian population, the amount being spent on one‟s wellbeing is increasing day by day. The Indian Wellness industry, which has been since the past three years growing at the CAGR of about 20 per cent, shall see a twofold growth by 2015. The industry will reach over ₨ 95,000 crores in next two

years. The report which projects such huge growth was presented by PwC. Among the top segments in the wellness industry include beauty, skin, fitness & health. To cover a larger consumer base the companies have started expanding their operations in Tier 2 & 3 cities. Firms selling beauty (skin & hair) products are taking advantage of e-commerce websites to sell their products thus increasing their reach in rural markets. Also the report states that the

largest consumer segment for the wellness products is the forty plus age group & the traditional wellness products still acquire over fifty percent of market share. KEY PLAYERS: Wellness industry WHY IT IS IMPORTANT? The wellness industry is currently below ₨60,000 crore & a large number of consumers have acquired a taste for newly introduced products like fortified foods, dietary supplements, cosmetic treatments and rejuvenation therapies. The availability of a variety of wellness products & services coupled with the rising use of e-commerce websites for shopping has contributed largely to the growth of this industry. Many

companies also believe that the internet is becoming an important channel for interacting with their customers.

15) DLF ends IPL sponsorship, will sponsor other sports – ET/Hindu Business Line IMPACT: DLF has missed its July 28 deadline to renew Indian Premier League sponsorship meaning that it will pull out of the event with which it remained associated for the last five years. DLF Group Executive Director Rajeev Talwar said that the decision to sponsor IPL events was taken as a brand building exercise and the goal has been achieved. In 2007, he added, the company was very aggressive in expanding its business to all parts of the country. At that time DLF had a good presence in most of the big cities. Over a period of five years DLF spent ₨ 250 crore over IPL.

However, now it is on a different path where it will be focussing more on its core business around the NCR region. At the same time, DLF will be evaluating the option to sponsor other emerging sports which matches with its business profile. For instance, DLF actively participates in yearly golf event at Guragaon where it offers an impressive prize money of ₨ 1 crore. It is also one of the sponsors in Davis cup this year.

KEY PLAYERS: DLF, IPL WHY IT IS IMPORTANT? DLF is currently trying to reduce the debt it incurred in the property bubble burst of 2008-09. This year it plans to raise around ₨ 6000 crore by selling some non-core assets. One of these assets - prime land in Mumbai – was recently sold to Lodha developers in a deal worth ₨ 2700 crore. Additionally, it plans to sell hospitality chain Aman resorts & its wind energy business. However, DLF needs to retain its brand recall and hence will continue to engage in branding exercises such as sponsorship of events. Though, it has also stated that such investments would be now lower by ₨ 50 crore than what it used to be in IPL.

MMMIIISSSCCCEEELLLLLLAAANNNEEEOOOUUUSSS NNNEEEWWWSSS

Rocket’s crazy ride

Continued from last week…

Operational Strategy

Rocket’s strategy is based on gaining dominance in execution. Oliver Samwer believes that there are two kinds of entrepreneurs, one who ideates and another kind, who executes. Both have their own strengths and it is not necessary to be first in everything as long as the execution is better than the rest. Rocket internet’s ruthless approach to execution is reflected in the fact that the company takes barely a month to launch a full fledged e-commerce website. This timeline starts from deciding to execute, to planning the model and actually launching the site. What this reflects is the sheer speed with which a business model can be cloned. Where startups launched the “normal” way take months or even years to get up and running, a website that can come into the market so quickly and backed by serious marketing spend capacity can be a game changer. This has already happened in the Indian e-commerce market, wherein Jabong is fast catching up with existing players. In fact Jabong’s recent strategy seems to be aimed at populous markets which have a nearly virgin internet market and developing economic infrastructure. That they seem to focus on non-English speaking markets seems to be part of

the same strategy and takes advantage of the fact that established US giants are at best laggards at going beyond American markets. This is especially true if it involves changing your model to suit local needs. Rocket Internet on the other hand, has focused its efforts in south-east Asia after its relative success in Europe and South America. Rocket Internet understands the importance of localization though the remarkable similarity of the ad campaigns run in India recently with its prior ad campaigns for similar sites in Europe, involving a screaming lady seems to be a case of “economizing creativity”. Rocket’s global strategy of speed is executed based on their most influencing strength, Human Resources. Laser focus on HR Rocket Internet’s HR policies might not find support with a lot of employees outside (and some inside) the company, but they do get results. The HR strategy for the company is simple; hire MBAs from top universities with good consulting or investment banking experience and make them founding and managing directors of Rocket’s startups. Brands like Booz & Co, McKinsey and Goldman Sachs are common to most of the top management at Rocket’s Startups. For example in Jabong’s top leadership itself, one of the co-founders, Manu Kumar Jain earlier worked as an engagement manager for McKinsey & Co. Why this focus on consultancy types? According to Der Spiegel which ran a feature on Rocket Internet, “These are the types of people who are accustomed to putting a clearly delineated plan into practice, rarely complain about having to work overtime and don’t want too much freedom.” , In other words, those who follow orders and rarely question the Samwers. Work hours at the Berlin Head quarters of the company often stretch from 9 A.M. to 11 P. M. Oliver Samwer has been accused of ruling with an Iron fist. Recently an email was released that exhorted the MDs of his startups to show results and sign a ”pact in blood”. The coarse nature of the email drew the ire of many a

NNNEEEOOO CCCOOORRRNNNEEERRR PART TWO

Part 2

detractor of the brothers’ style of working. Oliver did apologize for the same later but the incident showcases the “no quarter given” approach employees are expected to follow and work according to. This does get results although the verdict is still out on the long term impact of this approach to people management. Funding Even if it is a clone, launching a brand new e-commerce website costs a lot. Combine it with the salary requirements of the best resources and you are looking at a pretty hefty bill. It is in fact estimated that Rocket invested nearly $45 million in India alone. Rocket internet gets its funding from Summit Partners, Access Industries, DST Global, Holtzbrinck Ventures, Kinnevik, and New Enterprise Associates, which are part of the European Founder’s Fund. A look at Rocket’s India Strategy Jabong.com is Rocket internet’s main venture in India where it has put in its best team and resources. Dealing in Lifestyle products like apparel, shoes and accessories, Jabong receives nearly 83,000 unique visitors per day. Keep in mind that this figure was achieved in barely five months. Myntra.com the market leader in the same segment on the other hand has

123.224 unique visitors a target achieved at a much slower pace. Jabong employs nearly 120 employees in the country and operates out of Gurgaon. Jabong doesn’t have a CEO, instead it has three co-founders (See graphic from Businessworld for Details). Jabong’s logistics are handled by its own in house team called Jvas. The portal, based on 2011 data, had 15000 stock keeping units and a 40,000 sq. ft. warehouse in Pataudi. Xerion Retail owns Rocket’s Brands in India including Jabong and handles back-end logistics as well. Jabong’s rapidly growing share of mind

has been driven by its advertising blitz. It is estimated that Jabong has set aside a whopping Rs 75-80 crore for online advertising. In an industry already suffering from high customer acquisition costs, Jabong has set new standards. Jabong at present is supposedly spending nearly Rs 2,000 per customer in terms of acquisition costs. Flipkart and Myntra are spending similar amounts as well. However, industry experts are worried by the huge cash burn rates this is creating for these companies. Whether it is sustainable in the long run is an open question. Considering that Rocket internet’s business strategy is to execute quickly, scale up fast and exit via sale to a market leader, Jabong’s ad spends and high customer acquisition costs seem to be part of the strategy to raise valuation to peak levels based on customer traffic. The higher the orders per day or traffic visiting the site, the higher the valuation of an e-commerce site or so the market wisdom goes. Whether Jabong will lead to a sale to an existing market leader is something only the coming months will tell. In the meanwhile, Jabong’s stellar growth is a good case in point on how cloning business models works provided you have the capital to burn. The gamble lies in exiting the business when the going is good. With existing e-commerce players showing signs of stress, it would be interesting to see how Jabong fairs and whether India plays out for the Samwers.

SOURCES

Charts & Graphs: http://www.tradingeconomics.com/india/exports

SOURCES FOR COVER STORY

http://www.itproportal.com/2012/08/27/the-real-loser-in-the-apple-vs-samsung-case-google/ http://economictimes.indiatimes.com/tech/hardware/apple-vs-samsung-verdict-to-alter-the-dynamics-of-mobile-phone-

industry/articleshow/15734023.cms http://mashable.com/2012/08/24/apple-samsung-verdict/

http://economictimes.indiatimes.com/tech/hardware/Apples-victory-over-Samsung-in-US-may-mean-fewer-phone-options-for-consumers/articleshow/15680610.cms

http://economictimes.indiatimes.com/tech/hardware/apple-samsung-case-shows-smartphone-as-legal-magnet/articleshow/15733743.cms

http://www.eweek.com/c/a/Apple/Apple-vs-Samsung-Court-Message-Create-Dont-Emulate-679294/ http://www.forbes.com/sites/haydnshaughnessy/2012/08/26/why-the-apple-vs-samsung-verdict-is-a-big-mistake/

http://www.forbes.com/sites/ewanspence/2012/08/25/in-the-apple-vs-samsung-decision-the-real-winner-is-microsofts-windows-phone/

http://www.itproportal.com/2012/08/27/the-real-loser-in-the-apple-vs-samsung-case-google/ http://www.itproportal.com/2012/08/25/apple-awarded-over-1bn-in-epic-us-patent-trial-against-samsung/

http://businesstoday.intoday.in/story/a-summary-of-apples-$1-billion-verdict-against-samsung/1/187543.html http://blogs.economictimes.indiatimes.com/Cursor/entry/apple-vs-sansung-patently-absurd

http://timesofindia.indiatimes.com/tech/enterprise-it/strategy/Apple-vs-Samsung-How-verdict-can-alter-the-dynamics-of-smartphone-industry/articleshow/15815443.cms

SOURCES FOR PERSONALITIES OF THE WEEK:

http://en.wikipedia.org/wiki/Mamta_Banerjee

http://www.preservearticles.com/2012012521460/short-biography-of-mamta-banerjee.html https://aitmc.org/theleaderspeaks.php

http://www.iloveindia.com/indian-heroes/mamata-banerjee.html http://news.oneindia.in/2012/08/14/mamata-banerjee-attacks-judiciary-ready-to-go-to-jail-1053552.html

http://en.wikipedia.org/wiki/Vinod_Rai http://www.cag.gov.in/html/about1.htm

http://www.forbes.com/2011/01/06/forbes-india-person-of-the-year-vinod-rai-auditor-general.html

CORPORATE INTELLIGENCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article3304231.ece

http://www.lifeinscouncil.org/about-us/industry-overview http://www.ibef.org/industry/insurance_industry.aspx

http://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_India http://www.licindia.in/about_us.htm

http://www.licindia.in/Annual_Report_2011.pdf http://en.wikipedia.org/wiki/ICICI_Prudential

http://www.iciciprulife.com/public/Why-Us/Choosing-right-provider-our-growth.htm http://www.iciciprulife.com/public/About-us/About-Us.htm

http://en.wikipedia.org/wiki/ICICI_Prudential http://www.dnaindia.com/money/report_sbi-life-to-add-135-branches-this-year_1417977

http://en.wikipedia.org/wiki/SBI_Life_Insurance_Company_Limited http://www.sbilife.co.in/sbilife/content/8_3421

http://www.sbilife.co.in/sbilife/common/news.do?contentid=6300&sectionid=22&adminnewsdetails=0 http://www.sbilife.co.in/sbilife/content/8_0

SOURCES FOR NEWS ANALYSIS (1-15)

1) Russian entry into the World Trade Organization (WTO) – ET/Livemint/Reuters http://articles.economictimes.indiatimes.com/2012-08-23/news/33342530_1_russia-permanent-normal-trade-trade-rules-president-

vladimir-putin http://www.livemint.com/2012/08/27214455/Russia-and-the-future-of-WTO.html?h=B

http://www.reuters.com/article/2012/08/27/us-argentina-trade-mexico-idUSBRE87Q0T420120827 2) Internet banking is a hit for ICICI bank – Moneycontrol.com/Reuters

http://www.moneycontrol.com/news/business/icici-bank-sees-internet-overtaking-branch-banking-channel_748569.html http://in.reuters.com/article/2012/08/02/benefits-and-drawbacks-of-internet-banki-idINDEE87106320120802

3) Mickey & Donald maker - Walt Disney Company to invest in India – ET/NDTV/Reuters http://in.reuters.com/article/2012/08/23/india-economy-fdi-walt-disney-idINDEE87M09220120823

http://articles.economictimes.indiatimes.com/2012-08-14/news/33201502_1_single-brand-single-brand-promod-sas http://www.ndtv.com/article/india/india-approves-walt-disney-s-rs-1-000-crore-investment-258473

4) Sony Mobile to launch cheaper smartphones – The Hindu Business Line/TOI http://www.thehindubusinessline.com/industry-and-economy/marketing/article3811611.ece?ref=wl_industry-and-economy

http://timesofindia.indiatimes.com/tech/news/hardware/Smartphones-to-lead-global-handset-market-by-2013-Survey/articleshow/15928979.cms

5) New Lifeline for Flipkart – Company secures fourth round of funding – TOI/Moneycontrol.com

http://timesofindia.indiatimes.com/business/india-business/Cash-strapped-Flipkart-raises-150m/articleshow/15650742.cms

http://www.moneycontrol.com/news/features/cash-delivery-doesn%60t-work-for-companies_750010.html

http://in.reuters.com/article/2012/08/27/flipkart-raises-series-d-round-of-fundin-idINDEE87Q05Z20120827 6) SBI chief demands abolition of CRR, RBI chief disagrees- ET/BS/Moneylife

http://articles.economictimes.indiatimes.com/2012-08-28/news/33450306_1_crr-requirement-pratip-chaudhuri-kc-chakrabarty

http://moneylife.in/article/cash-reserve-ratio-a-non-performing-asset-for-banks/28066.html http://business-standard.com/india/news/sbi-chief-wants-npa-rules-tweaked/484223/

7) China continues its bullying in the south-China sea region- WSJ/Bloomberg/Indian Express http://online.wsj.com/article/SB10000872396390443537404577578953575891264.html?mod=googlenews_wsj

http://www.bloomberg.com/news/2012-08-28/china-offers-oil-exploration-blocks-near-disputed-waters-1-.html http://www.indianexpress.com/news/china-launches-infrastructure-projects-in-disputed-islands/993764/0

8) Telenor looking for a new partner for its India business- BS/ET/Hindu Business Line http://business-standard.com/india/news/telenor-settles-rs-9809-cruninor-loans/483900/

http://articles.economictimes.indiatimes.com/2012-08-28/news/33450641_1_telenor-group-uninor-growth-engines http://www.thehindubusinessline.com/industry-and-economy/info-tech/article3831612.ece?homepage=true

9) Export slump builds mountains unsold goods in China – Nytimes/Moneycontrol/ Hindu Business Line http://www.thehindubusinessline.com/news/international/article3827287.ece

http://www.moneycontrol.com/news/world-news/china-hsbc-flash-pmi-at-9-mth-low-new-export-orders-sink_748181.html http://www.nytimes.com/2012/08/24/business/global/chinas-economy-besieged-by-buildup-of-unsold-

goods.html?_r=1&pagewanted=all 10) FinMin: Banks should force builders to cut property rates to boost demand- ET

http://articles.economictimes.indiatimes.com/2012-08-22/news/33322516_1_builders-bank-chiefs-home-prices http://www.moneylife.in/article/facing-high-real-estate-loans-china-india-both-pressure-banks/27972.html

http://www.firstpost.com/economy/fm-will-have-to-break-investor-builder-cartel-to-tame-realty-prices-425908.html 11) Bundesbank chief: ECB bond buying like an ―addictive drug‖ for troubled economies- Reuters

http://in.reuters.com/article/2012/08/26/ecb-bundesbank-bonds-idINDEE87P04W20120826 http://in.reuters.com/article/2012/08/26/eurozone-merkel-idINDEE87P06E20120826

http://business-standard.com/india/news/bundesbank-chief-says-ecb-bond-buying-likedrug/484657/ http://en.wikipedia.org/wiki/European_Central_Bank#Response_to_the_crisis

12) US Republicans consider a return to Gold Standard- ET

http://articles.economictimes.indiatimes.com/2012-08-27/news/33425302_1_gold-stocks-gold-prices-dollar-and-gold

http://www.infowars.com/republicans-consider-returning-to-gold-standard-real-or-red-herring/ http://en.wikipedia.org/wiki/Republican_Party_(United_States)

13) Hurricane Isaac torments US on anniversary of Hurricane Katrina – The Gurdian/ NYtimes/ SF Gate http://www.sfgate.com/business/article/Isaac-unlikely-to-hit-U-S-gas-prices-3825653.php

http://www.nytimes.com/2012/08/30/us/hurricane-isaac-makes-landfall.html?pagewanted=2&_r=1 http://www.independent.co.uk/news/world/americas/hurricane-isaac-new-orleans-battered-by-powerful-winds-as-torrential-rain-

brings-heavy-flooding-to-the-citys-suburbs-8092292.html 14) The Indian Wellness Industry to double by next three years: PwC – Moneylife/FE

http://www.moneylife.in/article/wellness-industry-to-reach-rs1-trillion-mark-by-2014-report/28038.html http://www.financialexpress.com/news/wellness-industry-seen-at-rs-1tn-mark-report/992703/0

http://www.thehindubusinessline.com/industry-and-economy/economy/article3824637.ece 15) DLF ends IPL sponsorship, will sponsor other sports – ET/Hindu Business Line

http://articles.economictimes.indiatimes.com/2012-08-28/news/33450353_1_dlf-masters-executive-director-rajeev-talwar-largest-realty-firm

http://business-standard.com/india/news/dlf-ends-innings-as-ipl-sponsor/184415/on http://www.thehindubusinessline.com/companies/article3763420.ece?homepage=true&ref=wl_home

NEO CORNER SOURCES (ROCKET INTERNET):

http://www.businessworld.in/businessworld/businessworld/content/Original-Copycats.html

http://www.pluggd.in/rocket-internet-in-india-297/ http://www.pluggd.in/rocket-internet-in-india-297/

http://sgentrepreneurs.com/commentary/2012/03/26/samwer-brothers-rocket-internet-southeast-asi/ http://techcircle.vccircle.com/500/jabong-bangs-into-top-rung-of-indian-e-commerce-can-it-sustain/

http://www.digitaltrends.com/mobile/rocket-internet-launches-payleven-a-square-clone/ http://blogs.wsj.com/tech-europe/2012/05/14/rocket-internet-leads-the-clone-war/ http://techcrunch.com/2012/07/20/rocket-

internets-new-site-reveals-a-huge-global-cloning-operation-in-full-flow/ http://techcrunch.com/2011/12/22/in-confidential-email-samwer-describes-online-furniture-strategy-as-a-blitzkrieg/

http://www.spiegel.de/international/business/the-samwer-brothers-are-germany-s-titans-of-internet-entrepreneurs-a-833374-2.html

http://www.businessweek.com/articles/2012-02-29/the-germany-website-copy-machine#p4