Around The World

New York’s ‘official’ real estate boom
A strange thing is happening in New York city – and we are talking about a real estate trend here. While residential property prices have stagnated, commercial property prices are going through the roof. Literally! Here’s an example. In Manhattan, reportedly, commercial complexes that are worth more than $5 million are now selling for a whopping $730 per square foot; this is almost 18% more than what these same spaces were selling for last year; and here’s more: this is a huge 143% up from what they were selling for in 2004. In April this year, The New York Times (NYT) building was sold for $525 million (to Israeli conglomerate Africa Israel Investments); in 2004, the NYT building was worth only $175 million. Rents too are seeing an upward spiral. In the Big Apple’s Financial District (which houses Wall Street) rents have shot up by 25% over last year – and 62% over November 2004.

Slim’s rich pickings puts him on top of the world
Who is the richest man in the world? That’s easy enough you think – isn’t it Bill Gates? Well, not really. It happens to be Carlos Slim, the Mexican tycoon, who’s now worth an estimated $67.8 billion (about whom it’s often joked that, “there’s nothing slim about Carlos Slim”!). At least, that’s what a Mexican financial tracker, Sentido Comun, claims. And it doesn’t seem to be a far-fetched claim at all, if you go by facts and figures. So read on. America Movil, which happens to be South America’s largest mobile phone operator, is controlled by Slim. The company recently had a 27% surge in share prices – and this has made that all-important difference in adding value to Slim’s personal wealth. He is now worth $8.6 billion more than Gates. In April, Forbes magazine reported that Slim had taken over the second spot in the world’s richest people list – by overtaking billionaire investor Warren Buffett; but obviously he was behind Gates. Just before that, Sentido Comun’s Eduardo Garcia claimed that Slim’s wealth was more than Gates’ – but by a very narrow margin. This is what Garcia had to say about this new development, which puts Slim in the driver’s seat in the riches stakes: “When I put Slim ahead three months ago, Forbes bumped him up to second place (in world ranking) a few days later… Let’s see if the same happens again.” So will Forbes publish the story of changing fortunes in its new list? Let’s wait and watch!

Is Motorola’s CEO in deep trouble?
As second-quarter sales at Motorola – the world’s second-biggest maker of mobile phones – fell way short of what the company’s CEO Edward Zander had predicted in April, there’s a buzz in industry circles that Zander’s job may be in a danger. Motorola’s sales fell to between $8.6 billion and $8.7 billion – much below the $9.4 billion Zander had anticipated. And it is now being felt that other than cost-cutting and laying off workers, the CEO has completely failed to come up with any worthwhile strategy (Zander has already eliminated 7,500 positions and, in the process, cut costs by $1 billion). In the first quarter of this fiscal, Motorola reported its first loss in three years, and Nokia and Samsung won over more market share. So is it the time to give Zander the golden handshake? We didn’t say it – the industry is saying so.

Some bare truths about outsourcing!
A new report by The Work Foundation – an international not-for-profit organisation – that brings all sides of working organizations together to find the best ways of improving both economic performance and quality of working life says that the fear that all ‘good quality’ British jobs are being ‘outsourced’ to India and other developing countries is not so real after all! It may be overstated. Here’s why: while only 5.5% of all jobs were lost across Europe due to outsourcing, in Britain, jobs that can be potentially outsourced (in sectors like call centres) have actually gone up and not down. Which means that lesser jobs are being off shored to countries that can offer cheap labour. “The evidence suggests that while trade in services between Britain and India is certainly rising, it is not happening nearly as fast as is sometimes imagined. An increase from 0.4% to 1.2% between 1995 and 2004 is less of an explosion and more of a slow evolution,” states the report, adding, “Technology has always led to people being displaced from some lines of work into others, but what is not happening is a straightforward job migration from North to South, West to East.” What’s more, the report even says that industrialised nations – not poor, developing ones – are benefiting more from outsourcing. Ain’t that food for thought?

India’s trillionaires: first Mukesh, now Anil
This could be the classic case of sibling rivalry! In May, there were reports about how Reliance Industries’ Mukesh Ambani has become India’s first trillionaire. Now we hear that his younger brother – of Anil Dhirubhai Ambani Group (ADAG) – is not far behind. In fact, he too is now a trillionaire! So while Mukesh Ambani’s wealth is pegged at about Rs. 1,15,000 crores, Anil is not too far behind with his stockholding’s value having risen to Rs.1,00,334 crores! Phew!

Gold coins from Syndicate Bank
Karnataka-based Syndicate Bank (that has 2,125 branches in India) will now sell gold coins, across the counter, through 104 select branches across the country. And they won’t be regular gold coins, mind you: they are going to be imported ‘exclusively’ from Switzerland. The USP? They will be tamper-proof, and come loaded with 999.9 purity certificates, and will clearly do wonders to the bank’s mantra of being a “small man’s big bank.” To be sold with the brand name ‘Syndsona’, the coins can be bought in denominations of four grams, eight grams and 10 grams. In their statement, Syndicate Bank announced: “This import arrangement with Switzerland enables the bank to offer very competitive rates to its customers.” On the first day of the over-the-counter-sale of gold coins, the bank managed to sell 50 kgs of gold – because it had already tied up with its individual clients as well as its corporate clients. This is indeed smart thinking on the part of Syndicate Bank because Diwali and Dussehra are a few months away, and this is a great way to do corporate gifting – so it’s bound to be a win-win situation for the bank.

House of Max Mara to set up home in India
Italian luxury brand Max Mara (or the House of Max Mara, if you please!) has tied-up with Mumbai-based fashion label Kimaya, and is all set to invade the Indian market with its range of haute couture apparel and high-end women’s wear. Kimaya plans to introduce the brand in September in the Indian market with the label ‘Max Mara by Kimaya’. For starters, Max Mara will be sold through Kimaya stores, but the company plans to later launch exclusive boutiques for Max Mara. Max Mara has about 1,200 retail stores, and has about 20 labels in its portfolio (labels such as Sportmax, Penny Black, Marella, Pianoforte etc), other than, the mother brand which is Max Mara (also the most profitable brand for the Group). So is the Indian market getting dressed for the House of Max Mara?

Barclays cash on NRIs
Indian diaspora in the UK now have something exclusive to bank on! In an effort to lure the huge Indian expats population, international banking major, Barclays, has started Non Resident Indian (NRI) Banking in England. This facility will be available in over 50 Barclays’ branches in and around London. From August onwards, Barclays will extend this facility to more than 70 branches across the UK. It will offer, among other services, two types of saving bank accounts: Non Resident External Saving account which will enable customers to manage rupee transactions in India (using their overseas earnings in any foreign currency); and Non-Resident Ordinary (NRO) Saving Account which will allow NRIs to manage the rupee income in India. Both accounts will come with a mandate facility to allow individuals in India to manage the account jointly with the holder, free ATM cards for both accounts and the mandate holder, free chequebook and free pay orders from India. The accounts would earn interest rate of 3.5% and is paid half yearly. A bank’s statement carried this information. “Barclays is helping its Indian customers put their money where the heart is. There are over one million non-resident Indians in the UK. Many with friends and family in India want to share their earnings with them,” Barclays NRI Banking Global Head Arvinder Bharath said.

Car sales go into overdrive
According to figures released recently by Society of Indian Automobile Manufacturers (SIAM), car sales in India witnessed a huge growth in June: despite rising interest rates, car sales went up by 16.36%. And of the 13 auto companies, 10 registered positive growth. Predictably, Maruti Udyog Ltd. is leading this race! In real terms, total passenger car sales was pegged at 94,002 units vis-à-vis 80,784 units in the same month a year ago. Maruti reported a 26.73% increase in sales (at 47,783 units vis-à-vis 37,704 units in the same period last year). The going wasn’t all that great at Hyundai Motor India and Tata Motors though: both companies registered a dip of 3.95% and 7.09% respectively.

High altitude, low fares
Now is the time to pack your bags, and simply fly, fly, fly! And look at the rates you can avail of! A round trip to Singapore from Chennai will cost you under Rs.10,000 (including taxes!). This is thanks to Tiger Airways that has just launched its services to India. Other than it, there is Jazeera Airways that is offering a round trip to Dubai (there’s expected to be 33% increase in capacity in the India-Dubai sector over the next 12 months) for a return fare of Rs. 10,500. And then there is Nok Air which is offering a return fare of Rs.11,000 to do the Bengaluru- Bangkok sector. And if you are okay with chipping in with an extra Rs.5,500, you get to visit the lovely beaches of Phuket – along with two nights’ accommodation at a hotel there! Doesn’t get better than this, does it?

India’s own in Fortune 500
This year’s Fortune Global 500 list (which is published annually by the CNN-Time Warner Group magazine, Fortune) is out – and there is a reason for smiles all around! Five Indian companies have managed to improve their rankings. So let’s give you the good news right away and tell you exactly who these worthies are. They are: Indian Oil Corporation (IOC), Reliance Industries, Bharat Petroleum, (BPCL) Hindustan Petroleum (HPCL), Oil and Natural Gas Corporation (ONGC) and State Bank of India (SBI). The government-owned IOC maintained its position as the highest ranked Indian firm in the list: it has been ranked 135th, having gained 48 positions. Reliance Industries improved its position to 269th position from 342nd in 2006, a jump of 73 ranks. BPCL moved up 43 positions to secure the 325th rank; HPCL secured the 336th position, up 32 positions; and ONGC has been ranked 369th, and has moved 32 positions upwards! SBI, that debuted last year, has secured 495th position. The only Asian company to qualify amidst the coveted top 10 in the list was Japan’s Toyota Motors. American retail giant Wal-Mart is also back in the reckoning, coming out tops. Interestingly, Exxon Mobil had topped the list last year, but has been pushed to the second slot this time.

Don’t be shy!
People say that you are bound to be a party-pooper if you are ‘shy’ and ‘reserved’. Now, here is one more reason why you shouldn’t be shy: if you are not too hot on being sociable and run scared of talking/meeting people, then chances are that you will be prone to heart diseases or even a stroke. This was revealed in a report compiled by researchers at Northwestern University in Chicago. For this study, health of 2,000 men was tracked over a period of three decades. When the study began, these men were between the age group of 40 and 55, and they had to fill up a questionnaire that sought to look into their ‘levels of sociability’. Now, it has been indicated that sociable men have healthier hearts than their more reserved counterparts. The findings reveal that shy men are 50% more likely to die from a heart ailment than the more garrulous ones. So, this should be another good reason for you to go out and make more friends!

China galloping onwards to third position
China, which is always being compared with India on every parameter, will now soon be the world’s third-largest economy. According to the country’s National Bureau of Statistics, the Dragon has been snorting fire like never before and its growth rate in 2006 went up from 10.7% to 11.1%. Now, it is all set to overtake Germany, which is currently in the third position (the US is, of course, numero uno, and Japan is at number two), with its total output being estimated at $2.705 trillion (21.1 trillion yuan), and its foreign reserves touching a new high of $1.33 trillion. And it’s not just the Dragon that has been growing at breakneck speed. Singapore too is witnessing a similar boom. According to Singapore’s trade ministry, GDP grew an annualised 12.8% in the quarter ended June 2006, exceeding all expectations! A lot of the growth is being attributed to the real estate sector.

Harry Potter and the India story
Warner Brothers has been going full throttle with Harry Potter and the Order of the Phoenix in India – make no mistake about that! So, to grab the imagination of the masses – and ensure that they come in hordes into movie theatres, fifth Harry Potter film has been dubbed in regional languages across the country. Warner Brothers has released 250 prints of Harry Potter and the Order of the Phoenix (the movie released on July 13). Of this, there are 75 prints in Hindi and 25 each in Tamil and Telugu; the remaining are in English. English versions of the film have hit markets like Mumbai, Goa, Pune, Bengalooru and Kolkata. English and Hindi versions have been released in Delhi, Indore, Nagpur, Baroda etc. The South (markets like Chennai) has seen releases in Tamil. And so on. The first of the Potter series, Harry Potter and the Philosopher’s Stone, that released in early 2000, earned Rs.2.5 crore in India, while the previous Harry Potter and the Goblet of Fire (released in 2005) made about Rs.5 crore. According to industry estimates, Harry Potter and the Order of the Phoenix may well rake in Rs.8 crore. Turner Group-owned channels like Pogo, Cartoon Network and HBO will all have special programmes and contests around the movie. And the magic does not stop there! Harry Potter video games will soon be available on Microsoft’s Xbox 360 and Sony’s PS3 at a discounted offering of Rs.1,999 (normally these sell for Rs.2,510). Let’s say this for Harry: he’s cast a real spell!

Foreign tourists to take cheaper calls
Now here’s some more sizzling news from the mobile telephony sector. Government-owned BSNL has reduced international roaming tariff for foreigners who use its network in India by up to 40%. This is going to be a big relief for tourists – and seems to be a sound strategy for the service provider. Earlier, the user of services of a European operator, while on roaming in India, would have to shell out over a whopping Rs.50 per minute for a local or STD call, Rs.99 per minute for an ISD call and Rs.75 per minute for an incoming call. Now, the tariff for outgoing local/STD call has been slashed to Rs.30 per minute; and an ISD call will cost Rs.70 per minute; and for an incoming call, foreigners will have to pay a much-lesser Rs.50 per minute.

No wonders here!
On July 7, 2007 – or 7/7/7 – the new Seven Wonders of the World were declared in Lisbon, Portugal. The new architectural marvels were chosen by votes cast by 100 million people from all over the world (by SMS or over the Internet), and the glittering function included appearances by Hollywood actress Hilary Swank (remember Million Dollar Baby and Boys Don’t Cry?), Bollywood star Bipasha Basu and British actor Ben Kingsley; there were performances by Jennifer Lopez and Jose Carreras too. Here, we give you a low-down on the seven great wonders that will forever remain etched in public memory – and, of course, history. And since we are all in India, let’s start with our very own Taj Mahal, built by emperor Shah Jahan in memory of his wife Mumtaz Mahal. Then, there is The Coliseum of Rome (Italy), built by Emperor Vespasian; The Great Wall of China, the longest man-made structure in the world, measuring 4,000 miles; Christ the Redeemer in Rio de Janeiro (Brazil), which stands overlooking the Rio harbour. These are followed by Machu Picchu in Peru and Chichen Itza in Mexico. And finally, there is the city of Petra in Jordan, which is home to the Nabataean ruins.