Apology

Hello Friends,

In Recent times many things has happened at the economic front, the Financial market is down and but with current rally in market there is a hope that this troubled times will over soon even this financial down turn is extending the blame game has started but you guys are wondering why there is no topic at all and for that I would like apologies that because of some personal reasons I was unable to write on any topic but now I am assuring you that I will again start writing on important Financial issues.

With this I would like to tell you that from here onwards I will write on some Financial issues for which there is no daily news or update but these are very very essential in future economics, market.

I hope you all will encourage me by sending your comment on these topics. If there is anything wrong so please correct me.

Thank you and again Sorry for such a long break.

Manan Bhatt

Global Warming : A path towards the End

We wonder do fishes talk the way we talk. Do they gossip? Many will laugh but this is the truth. The cartoonist has shown his worries very intelligently. The way this GLOBAL WARMING is increasing, days are not too far when sea level rise and we all will drown. Now a day every body is talking about GLOBAL WARMING, but we wonder what exactly Global Warming is? Greenhouse gases trap some of the sun’s energy within our atmosphere and increase the temperature of the Earth’s surface and atmosphere and this is termed as Global Warming. When solar energy passes through the atmosphere, is absorbed by the Earth’s surface and warms it up. Greenhouse gases such as CO2 and CFC present in the air absorb some of the reflected heat energy. Human actions gradually increase concentration of greenhouse gases in the atmosphere and lead to global warming. This accelerated process has a number of dangerous impacts.

CO2 and CFC are already present in the atmosphere in a proportion so that Sun rays does not affect earth’s climate but when human become over ambitious and starts processes which will imbalance the atmosphere and increases such greenhouse gases in the atmosphere. There are different actions which cause in increasing greenhouse gases in the atmosphere.

First and the most important is ‘Deforestation’. Deforestation means to cut green forest of trees. This process reduces fertile land which causes food crisis. In Nigeria 250000 hectares of fertile land becomes Desert. This 250000 hectares is equal to the size of a Luxembourg. UN report says that in future 30 to 50% of the fertile land will become Desert which will create huge food crisis. Even today we fell heat of food crisis. Second largest wheat producing country Australia is facing this heat and its largest wheat producing land is under a biggest drought of recent times in Australia. This Deforestation not only brings Drought but it also creates flood situation. Trees play the biggest role in stopping water and deciding its boundary. But as there are no trees water does not stop and the average rate of floods has been increased.

Agriculture too plays a big role in global warming. Agriculture is a huge source of methane and nitrous oxide. To grow foods human have started creating an environment for food so that corps will come easily but it helped in increasing Greenhouse gases.
Report says one quarter of all man-made CO2 emissions is transportation related. Today in this fast world everybody needs faster means of transportation and which cause more and more vehicles on the road because of this large amount of CO2 is being emitted in the atmosphere. 750 million cars worldwide emit a total of approx. 2.25 billion tons of CO2 each year. Oh this is huge. Even industrialization is responsible for more than half of all CO2 emission. Largest quantities of CO2 emitted by energy producers and energy intensive industries.

All this causes high temperature world wide and which causes melting of glaciers. Since the early 1960s mountain glaciers around the world have experienced an estimated loss of over 4000 cubic kilometers of water. Projection says 4 degree rise in average global temperatures would cause nearly all of the world’s glaciers to melt, resulting in rising sea level which causes storm and floods. Globally, the annual number of strong storms doubled from around 8 in early 1970 to 18 and it is still increasing. In 3 months US has face 3 storms. Hurricane Katrina in 2005 was the 6th largest hurricane on record and caused 60 billion US Dollars in damage.

So should we stop agriculture? Should we stop industrialization and using any vehicle? Answer to this is No, but at the same time we should follow some strict rules to reduce greenhouse gases from the atmosphere. While farming wean use organic farming which does not produce greenhouse gases. While driving vehicles we should use gases instead of petrol and diesel which emits less amount of CO2 and even we can green fuel. Even for industries we can use new technologies which reduce CO2 emission by 30 to 50%.

For this government should encourage industries to use such new technology. Even government should try to educate people about Global Warming and its ill effects and with that they should teach people how they can help in reducing emission of CO2 in atmosphere.

UN and some government have started taking steps towards reducing CO2 emission by educating a younger generation not to use age old methods which emits more amount of CO2. EU ahs started giving carbon credits to the industries which reduces their CO2 emission. And these industries can help other industry in lowering CO2 emission. This CARBON CREDIT is very helpful in lowering CO2 emission in industries.

With this note I will appeal everybody to use green products which help in reducing CO2 emission and plant at least one tree it will help the nature and ultimately it will help you and your next generation.

N-Powering India: India-US Nuclear Deal

6 September 2008, A historic day came when NSG (Nuclear Suppliers Group) gave its nod to India-US Nuclear deal. With this nod India’s Nuclear isolation of 34 years has been over. This deal says, India will have uninterrupted supply of Nuclear Fuel for its US-made nuclear reactors. India and the US will agree to transfer nuclear material, non-nuclear material, equipment and components. US will support/help India in developing strategic reserves of nuclear fuel to guard against future disruption of nuclear supply using its international 'Big Brother' role. In case of disruption, US and India will jointly convene a group of friendly supplier countries (NSG) to include nations like Russia, France and the UK to pursue such measures to restore fuel supply.

But this deal is not only about Nuclear Fuel but there are many other advantages of this deal which will make huge impact on both US and India’s economy and it will help India to put it’s economic growth in the second gear. Indian government and the opposition is emphasizing on Energy production with this Nuclear Fuel but this deal is not limited to provide only Nuclear Fuel but it is of providing Nuclear technology which was not accessible to India. Access to these nuclear technologies will help Indian companies to reach on another level.

Biggest beneficiary of this deal is IT and Software industry as a relaxation in global technology rules gives India access to much more advanced tech, spelling a quantum leap for the IT companies of the country. Indian companies now have to reinvent the wheel. For instance access to high-performance computing systems — a lot of which are currently denied to India under various export control regimes will put Indian software and IT R&D in a different league. HPC systems have contributed to leading-edge developments in such diverse applications as weapons design, integrated-circuit simulation, automobile crash simulation, seismic prospecting, and drug design.

Weather analysis and forecasting will benefit with this deal as it has nuclear application which has been denied to India will be easily available. Digital phosphor oscilloscopes, which are indispensable for oil refineries and electronics industry, also have a nuclear role and are currently barred — but will now be available. Filamentary poles, important for making tennis rackets, golf clubs and fishing poles, are also inaccessible because they can be used for uranium enrichment. Compressors, testing systems, furnaces for power generation, mining equipment, high-voltage power supplies, industrial and scientific equipment like heat exchangers, piping, fittings, valves, measuring and calibrating equipment... Many of these have applications in different sectors and access to them would give Indian manufacturing a huge boost.

There is also technology and scientific research that relates to civilian applications in medicine, radiology and industry. Communications switching equipment, certain types of electronic equipment, lower speed photography equipment, pressure-measuring instruments, and numerically controlled machine tools — much of all this is currently out of bounds for India's knowledge economy.

In the field of medicine, X-ray imagers that use cobalt-60 may soon become accessible. So will specialized equipment for oil and gas exploration. Nuclear well-logging is used by advanced countries to help predict the commercial viability of new and existing oil and gas wells, and it could become available in India as well.

Nuclear deal will help India’s defense program as it gets a free hand to purchase previously restricted conventional weapons, most notably Israel's Arrow missile defense system, and partially US-funded program. The Arrow interceptor is a Category I missile capable of delivering a 500-kg payload to a range of 300 km. Also denied to India are ocean surveillance systems and satellite systems for electronic reconnaissance, navigation, military meteorology, and nuclear explosion detection. But the doors are slowly opening.

Indian companies or research entities would like to participate in global projects like Eureka in the EU for market-oriented R&D in robotics, environment technology, agriculture, bio-sciences etc, but a lot of those technologies are currently denied to India. When the denial veil is lifted in one sector it also has a ripple effect in other sectors.

The possibilities are immense in emerging scientific disciplines like nanotechnology and synthetic biology that draw upon many other branches of science, all of which are controlled technologies. The nuclear deal will not suddenly land all these technologies on India's doorstep, but what is important is that people will not turn away Indians automatically. The playing field will become a little less skewed against India.

After this deal when other countries when other countries want to build nuclear reactors in India, it will be Indian companies like L&T and BHEL that will get the contracts for the components. Indian companies will become component providers and vendors to these projects. India will become a nuclear energy components provider but I will take few years. According to L&T sources they have already started working on this component and now they have all technologies to start production.

This Nuclear deal will help India in many ways but it will take some time but the US will see its immediate effect. This nuclear deal is worth 6.4Billion which will help US economy to stabilize. If India purchases 1 nuclear reactor it will generate 5000 direct jobs and more than 10000 indirect jobs in US which will help its economy. India is planning for 14 civilian nuclear reactors this will help many people in US to get job and help government to tackle this crisis situation persists in US.

We hope that Indian government will use this deal to its full extent and allow Indian companies to scale new heights.

GLOBAL FOOD CRISIS: The Biggest Crisis on the glob

Every one is talking about High Crude prices, High inflation but there is a bigger threat GLOBAL FOOD CRISIS is emerging. A global food catastrophe will reach further and be more crippling than anything the world has ever seen. The credit crunch and the reverberations of soaring oil prices around the world will pale in comparison to what is about to transpire. Food prices have been rising for a while. In some countries this has resulted in food riots and in the case of Haiti where food prices increased by 50-100%, the Prime Minister was forced out of office. Elsewhere people have been killed, and many more injured. While media reports have been concentrating on the immediate causes, the deeper issues and causes have not been discussed as much.

The World Bank reports that global food prices rose 83% over the last three years and the FAO cites a 45% increase in their world food price index during just the past nine months. The Economist’s comparable index stands at its highest point since it was originally formulated in 1845. As of March 2008, average world wheat prices were 130% above their level a year earlier, soy prices were 87% higher, rice had climbed 74%, and Maize was up 31%.

Dairy, Oils, Fats, cereals have risen the most in the past year, with more modest rises in sugar and meat. But the crisis was not a sudden one. Prices have been rising for quite some time now, and perhaps earlier warning signs were ignored or missed. Several factors contributed to the rising food prices. Analysts attributed price rise to the poor harvests in various parts of the world. With the Global environmental changes climatic conditions are changing in the world. This changes leads to natural calamities. The most influential is the extended drought in Australia, in particular Murray-Darling basin. The drought has caused annual rice harvest to fall nearly 98%. The other events that have negatively affected the price of food include the unseasonable 2008 rains in Kerala, India, which destroyed swathes of grain. The effects of Cyclone Nargis, in Burma in May 2008 caused spike in the prices of rice. Scientists have stated that such incidents are consistent with the predict effects of climate change.

The other factor for the price rise of food is increasing Biofuel usage. One systematic cause of the high food prices is due to diversion of food corps to fuel. As the environment is taking its toll on the developed countries, now they have found a new to stop sudden environment change by using Biofuel in place of normal crude. An estimated 100 million tonnes of grain per year are being redirected from food to fuel. As farmers are devoting larger parts of their larger parts of corps for fuel production which results in lesser amount of land available for food production. The reports mentions Grain has been diverted away from food, to fuel; (Over a third of US corn is now used to produce ethanol; about half of vegetable oils in the EU go towards the production of biodiesel). Based on the most detailed analysis of the crisis so far, Biofuel have forced global food prices up by 75%, According to World Bank report obtain by the Guardian.

Senior development sources believe the report, completed in April, has not been published to avoid embarrassing situation for world top leaders. Rich countries have tried to blame poor and developing countries like India and China for rising demand. But according to the FAO, with record grain harvests in 2007, there is more than enough food in the world to feed everyone—at least 1.5 times current demand. In fact, over the last 20 years, food production has risen steadily at over 2.0% a year, while the rate of population growth has dropped to 1.14% a year. Population is not outstripping food supply. When we see some 80% of the world’s production is consumed by the wealthiest 20% of the world suggesting an inequality in resource use due to social, economic and political reasons, and perhaps less because of Malthusian concerns about population sizes outstripping resource availability in most cases.

This high food prices are related with the High oil prices too. As the rise in the oil prices has heightened the costs of fertilizers, the majority of which requires petroleum or natural gases to manufacture. Oil also provides the most energy for mechanized food production and transport. Higher prices for liquid fuels from petroleum increase the demand for Biofuel, which may result in diverting some crops from food to energy. Even though per-capita petroleum consumption among the world's poorest people is very low, what petroleum the poor do consume is disproportionately in the form of fossil fuel inputs to the food they eat.

Another factor for high food prices is financial speculations. Financial speculation in commodity futures following the collapse of the financial derivatives markets has contributed to the crisis due to a "commodities super-cycle." Financial speculators seeking quick returns have removed trillions of dollars from equities and mortgage bonds, some of which has been invested into food and raw materials. That American commodities speculation could have a worldwide impact on food prices is reflected in the globalization of food production. As long as food is merely a commodity in societies that don't protect people's right to participate in the market, and as long as farming is left vulnerable to consolidated power off the farm, many will go hungry, farmers among them.

This High food prices has taken its toll more on the poor and developing nations. As we have seen in above video people in Egypt are finding tough even for Bread. The poorest countries in the world like Zimbabwe where inflation touches 2000000% and the area such as Darfur which is totally dependent on UN aid for food is suffering more. Now the time has arrived to think on this issue very seriously. At last I will leave you with the Video of this food crisis in Haiti.




INDIA-BLOGGER

Brand in your hand, Effective way of marketing : Mobile Advertisements

Chunnu, Munnu, Micheal, Andy, Farookh, Ahmed, Charlie, Sonu, Monu, Sona, Tinu...............Every body has Mobile. Even people are spending more time on their mobile than watching Television. Advertising is the communication of a signal (information) with the express purpose of gaining advantage over one’s rivals in a competitive environment. This fact leads Marketing companies to think about Advertising on Mobile. There are many companies working on Mobile Advertising. Current Mobile Advertisement market is above 3 Billion and Expected to cross 4 billion by the year end. In Spain 75% of mobile phone owners receive ads, in France 62% and in Japan 54%.

The most common way of Advertising on Mobile is to send SMS which says about the product. But here problem is that you can not send advertisements to the targeted Segment for whom this product is useful. But now a day’s user involvement in this advertising has increased, in Japan 44% user’s click on these Ads. And now SMS advertising generates around 90% of total Mobile Advertising. One advantage of SMS is that while even in conference, the users are able receive brief messages unobtrusively, while enjoying privacy. The first case of advertising would appear via SMS, when a Finnish news provider offered free news headlines, sponsored by advertising. Now a days SMS marketing is taking new turn, companies using VIRAL MARKETING. In this company will send SMS to one subscriber and when this subscriber forward this message to some one else he become part of this Advertising campaign and his mobile service provider pays him some reward. This way it becomes interactive.

After the evolution of SMS the new thing came was MMS(Multi Media Messaging Service). Now a day’s companies are sending their advertisements through MMS. This MMS clips are becoming popular day by day as it has small act with sound which creates an impact on people's mind.

Day by day mobile phones are becoming very popular and people are using mobile phones with WAP/Web browser. This makes marketing companies job easy to provide advertising on WAP/Web browser. This is either in the form of Mobile Web banner (Top of Page) or Mobile Web poster (Bottom of page banner). So on your mobile screens half of the screen is advertisement and on other part you check your websites this way you can not ignore advertisements which is very important. Even while browsing on mobile marketing companies do not want waste even a small space so Advertisement appears while a requested item of mobile content or mobile web page is loading up. This is called as 'Full Screen Interstices'.

People are spending more and more time on Mobiles calling someone or SMSing but one more activity is taking serious space ion mobile world is Gaming on Mobile. Which prompt marketing companies to provide advertisements during games. The most popular example is game Jump. Jump is a fruit drink and with its name we have a game which is very popular and many Mobile operators are providing this for free. Even in India ITC has used Mobile gaming to market their new product 'BINGO'. This is very useful to create impact on people’s mind.

In place of normal tring tring when someone calls you operators have started providing Caller Tunes which is usually consist of song or dialogue. Which creates one more way for marketing companies is that instead of filmy song or dialogue you have Advertisement. This is called as AdTPT. So whenever any one calls you he can here Advertisement. To subscribe for this service mobile service provider may pay. This is a new concept which is not famous among marketing companies.

But the question is people really gets attract with such marketing. The way Marketing companies are trying to provide as many advertisements on Mobile we can say the Next big thing is 'MOBILE ADVERTISING'.

SO WILL THIS OIL PRICES COME DOWN?

This is the question everyone asking. Will this Oil prices come down? Will we be able to live our life normally? And for that answer is YES, but when will it happen no body can predict this as Solution for lowering oil prices lies in the reason of higher oil prices. Let’s see how this reason helps us to lowering oil prices.

India, China, experiencing economy growth but it does not mean that current oil production is lagging in supplying oil. Infect Iran says that they have lots of oil and they have question where to store this oil? it means Their is no supply problem. Current oil production is sufficient to provide oil on time and with its full capacity.

So what is the problem in lowering Oil prices? It's Speculations in Commodity market. After the US economy crisis Investors in US started investing in Oil commodity to recover their loss from Equity market. And they started rumors of less supply, taking oil calls on higher rate and when purchase increased price of Oil also increased. but The Commodity Futures Trading Commission (CFTC) is investigating the activity commonly referred to as the "Enron Loophole" - under current law, US traders can execute transactions in look-alike contracts in crude oil contracts on the New York Mercantile Exchange (Nymex) and on London's Intercontinental Exchange (ICE), while the US regulators have oversight only on what goes on Nymex - traders are arbitraging between the two markets while the CFTC regulates only half of the trading. The London / Durbin legislation would give the CFTC the ability to exercise power over manipulation, speculation and record-keeping by US citizens and instruct US regulators to assess the foreign regulator's ability to apply comparable regulatory principles prior to granting relief from US regulatory requirements. Similarly, the Commodity Futures Trading Commission's action would condition access to US customers on the Intercontinental Exchange's adoption of position limits and accountability levels on the West Texas Intermediate contract. Now this CFTC's report is due by September. If this is just a speculation we can hope that oil prices will start coming down from September.

Even in November US has their General Elections due so we can hope that after this elections new government in Us will take some actions in taming this crisis. And we can hope it will help in strengthening Dollar again and it will help lowering Oil prices.

These General elections will help lowering speculations about Oil politics. As Bush will leave White house and with whom Venezuela president have a personal problem and the current government does not like Iran's stand on their Nuclear testing and this is not allowing OPEC countries to reach at one conclusion for taming oil prices. Now this General Election might help resolving these issues.

At the same moment countries like India are taking steps towards discovering new Oil fields. Cairn India has discovered new Oil field in Mangala Badmer, Rajasthan. So by India has two oil fields Bombay High and Mangala which will help India in fighting against this oil price rise.

Now with all this issues and the solution for lowering oil prices we can hope Oil prices will come down and we can live our lives back to normal. As this High oil prices has caused high Inflation. Now only thing we can keep is hope.

Oil - It’s HOT: Why?

June 30 2008, $141 at 9.30, $141.35 at 9.35, $142 at 10.00AM and now $143. What is all this? Do not stress your mind this is not a game but this is the price for 'Black gold - OIL'. Many of we know that oil prices are surging up in spite of increasing output from Saudi Arabia. So the question comes why this oil prices are going up? Is their any black market is working for this or is it just a bubble which can burst any moment? Let’s see what the reasons for this high Oil prices are?

Before go into details lets first look at some figures which will clearly shows what is happening with the market.

Oil $10 (12/98)
$68 (7/2007)
$143.67 (June 30 2008)

In last 1 year crude prices are suddenly doubled. There is no. of reasons for this. Let’s see all this reasons one by one.

World is progressing. Countries which were in a development phase now on the verge of changing their status from Developing to Developed, Big economies to bigger Economies. Countries like China, India, Brazil, and Russia are on a high. Economy is booming and with that consumption is increasing too. Countries like China and India requires more oil then the usual and so the demand goes up. And it is very important to increase oil production. But it is not happening at this moment.

when demand is high black marketing starts. This has really created a chance for storing oil and makes some money by increasing prices. Last year in US when people understood this situation started investing in Oil futures. They started storing Oil and selling those at higher rate. This suddenly increased price. At the same time US sub prime problem came up and companies started making big loss. Big investment firm saw scope in oil commodity market and started investing in that. They started selling Equities and started purchasing Oil futures which took Oil prices further up. Currently so many Investors are investing in oil futures and still prices are going up.

Third reason for this is that US economy is not doing well and value for dollar is decreasing. If dollar value decreases further oil prices still go up. If we check oil prices in Euro it is not changing that much, it is quite stable. And this problem remains their till we price oil in dollar.

And this is the main cause for oil politics. Countries in OPEC like Iran do not like US's super power status. They are not happy with United State’s view on them. Iran has a good amount of oil with them. And there are some oil producing countries like Venezuela faces personal differences with Us government. OPEC is body of producing countries. They keep certain limit on oil production. They all know about oil price problem in the world but because of their differences with US, some countries in OPEC are not allowing to increase oil output extensively to bring down oil prices. Iran and other OPEC countries are suggesting that the valuation of Oil should not be calculated in Dollar other currency take its place. And because of this they are not allowing to bring down Oil prices.

At the same time world is gearing up for biggest sports meet, OLYMPICS in China. It is expected that their will be millions of spectators arrive in China for this event. Now, black marketers are waiting to take advantage of this situation. They will not allow Oil prices to calm down easily.

With this we should hope that Oil prices should come down so people can relax. They can enjoy their lives. But will this OIL PRICES COME DOWN?