Financial Forecasts

Wal-Mart Goes to Washington -- Maybe See full article from DailyFinance: http://srph.it/anCdpZ

noreply@blogger.com (Documents) — Tue, 06 Jul 2010 19:36:08 PDT

Just a few days after Wal-Mart Stores (WMT) appears to have won over skeptics in the Windy City of Chicago, the retailer has its sights set on another untapped metropolitan area: Washington, D.C. According to The Washington Post, the nation's capital and the world's largest retailer are reportedly close to a deal that would bring the first Wal-Mart to the District.

Apparently, Wal-Mart may be weighing the possibility of opening a location on New York Avenue NE (near the intersection of Bladensburg Road) and could sign a lease by this fall. A family-run taxi company currently owns more than 11 acres surrounding this intersection and a prior deal for a housing and retail complex recently fell through. The location could provide Wal-Mart with ample room for a large store and a sizable parking lot, right in the middle of the city.

A company spokesman neither confirmed nor denied the speculation, noting, "Wal-Mart does not have any new projects to announce in [D.C.] but we continue to evaluate opportunities that would allow us to create jobs and provide affordable groceries to D.C. residents." So ... if there isn't any D.C. development planned, how are residents supposed to get those cheap groceries? It's a puzzle. There are Wal-Marts located in the D.C. suburbs in Virginia and Maryland, but a District-based location would keep sales taxes local and save travel time for District residents.

About 19% of D.C. Residents Live Below the Poverty Line

Unemployment in the D.C. region is less scary than that in Chicago, which means Wal-Mart won't have the job-creation card to play with quite as much urgency. What D.C. does have, however, (despite a respectable per-capita income), is a shocking economic disparity. In 2009, 18.9% of District residents were living below the poverty line, up from 16.9% the previous year. Access to inexpensive necessities like groceries, diapers and housewares will be a big selling point as WMT tries to establish a foothold.

Several days ago, Chicago's City Council approved a 145,000 square-foot Wal-Mart store that will open in the Pullman Park neighborhood. This will likely be the tip of the falling-prices iceberg, as Wal-Mart has been negotiating a starting wage for its employees that would make it possible to open as many as 21 Chicago stores.

See full article from DailyFinance: http://srph.it/anCdpZ

noreply@blogger.com (Documents) — Sat, 26 Jun 2010 21:22:24 PDT

Saving Money on Any Insurance
by MoneyNing

There are some forms of insurance you just can’t live without. Car insurance is mandatory in all states, homeowners insurance is required if you carry a mortgage, and any parent will tell you that medical insurance is crucial. With rising costs hitting all of these necessary protections, it pays to make the most of every dollar.
Car Insurance
Since you have absolutely no choice about having car insurance, you may as well shop around to find the best deal. I know that there are many advertisements trying to entice you to change companies, but before you do that, compare what you are getting right now to what they are offering. Frequently companies “save” you money by providing lesser coverage; in my book that is no savings. Shop around and do it early, insurance companies will almost always match any legitimate offers you find.
The quickest and easiest way to drop those premiums is to raise your deductible. By increasing your deductible from $200 to $500 dollars, you can save 30% on your insurance premiums. Make sure to set aside the money needed if you do have an accident and need to produce the higher premium.
Ask about discounts. Teen drivers usually get a discount for good grades or certain types of driver’s education programs. If you don’t drive much, or your job is just a couple of miles from home, you may be able to get a low-mileage deduction. Also, consult your insurance agent when purchasing a new car so you know in advance which ones cost less to insure. Some companies offer lower deductibles for each year you go without having a claim, so make sure you ask that because it could save you money long term.
Homeowners Insurance
Just like auto insurance, increasing your deductible will decrease your premiums. Many companies will offer discounts to customers who purchase multiple policies with them, so bundle your car and homeowners insurance to save some money.
Only insure your home, not the land for replacement costs in case of disaster. This common mistake costs many people money. You won’t have to replace the land, just the building, so check your policy to make sure you are insuring only what you need.
Another thing to consider is staying with a company for the long haul since many offer loyalty discounts. Improving your home’s security and disaster resistance will generally garner you some deductions as well.
Medical Insurance
Many people simply can’t afford private medical insurance. Before you raise your hands in frustration and walk away, consider that a major medical bill will bankrupt your family, so even something is better than nothing. Many States now offer basic health insurance based upon income levels; call your state offices and ask if you can get insurance that way.
Again, raising your deductible will help if you have insurance but are struggling to pay for it. See what kinds of plans your company offers, and if you can get insurance through work. Compare the plans and make sure you are comparing apples to apples, even with the complicated wording of many policies. Also, take advantage of medical savings accounts that let you put aside money to pay for medical expenses, tax free.
Keeping on top of your insurance costs and options will save you money immediately and in the long run. The key is to comparison shop often so you always get the best discounts.
Taken from the free How to Save Money on Everything ebook, where tips are constantly being added. Get your copy by subscribing to the frugal newsletter.
---
Related Articles at Personal Finance Blog by Money Ning:
7 Types of Car Insurance: Which Ones Do You Really Need?

Most Affordable Health Insurance May Not Be The Cheapest

Car Insurance Company Can Lower Your Bill

Why Renter’s Insurance

Misunderstanding of Frugal Living

noreply@blogger.com (Documents) — Sat, 26 Jun 2010 06:11:52 PDT

Toothbrush Designed Like A Tumble-Doll Stands Upright

from TreeHugger

100+ people liked this

Shared by

Sometimes you see an idea that makes you smack yourself on the side of the head and ask why nobody thought about that before, and this, from Yanko Design, of them. Ryan Harc designed this toothbrush (called DEWS) with a weight in the base to make it stand upright....Read the full story on TreeHugger

noreply@blogger.com (Documents) — Sat, 26 Jun 2010 06:06:08 PDT

Apple launched Safari 5 for Mac and Windows. In addition to a better support for HTML5 and a much faster JavaScript engine, Safari added an interesting feature for reading news articles and blog posts.

"Safari Reader removes annoying ads and other visual distractions from online articles. So you get the whole story and nothing but the story. It works like this: As you browse the web, Safari detects if you're on a web page with an article. Click the Reader icon in the Smart Address Field, and the article appears instantly in one continuous, clutter-free view. You see every page of the article — whether two or twenty. Onscreen controls let you email, print, and zoom."

The feature works well, but the "Reader" option is not always available. It's quite difficult to detect news articles and to extract their content, so Safari's heuristics are far from perfect. Safari Reader is especially useful for sites that split articles into multiple pages to increase the number of page views. Some of these sites offer a printer-friendly version of the article, but that's usually difficult to read.

If you're using Google Chrome, there's an extension called Readability Redux which offers similar features. Firefox users can install the Readability extension. Both extensions are based on the Readability project, whose goal is to make "reading on the Web more enjoyable by removing the clutter around what you're reading".

noreply@blogger.com (Documents) — Sat, 26 Jun 2010 05:57:11 PDT

Google Maps Navigation for Canada and 10 European Countries
by Alex Chitu
93 people liked this
Google Maps Navigation for Android is now available for Canada, Austria, Belgium, Denmark, France, Germany, Italy, the Netherlands, Portugal, Spain, and Switzerland, in addition to the 3 countries that were already supported: US, UK and Ireland. It's interesting to notice that Google still uses data from Tele Atlas for all the countries supported by Google Maps Navigation, except for the US and Canada.

"Google Maps Navigation is an Internet-connected GPS navigation or 'satnav' system that provides turn-by-turn voice guidance as a free feature of Google Maps. Google Maps Navigation (beta) with Search by voice is available in version 4.2 of Google Maps, on Android devices 1.6 and higher," explains Google.

Free turn-by-turn navigation could be an important reason why people choose a mobile phone, so Google and Nokia try to make the most of Google Maps Navigation for Android and Ovi Maps for Symbian. Most likely, in the near future, all smartphones will include a free application for navigation.

In other related news, Google Search by Voice is now available for German, Italian, Spanish and French. Search by voice is an important feature of the Quick Search Box app for Android, Google Mobile App for iPhone and Blackberry. The nice thing is that you don't have to download an update for none of the applications, as the new languages are automatically recognized.

noreply@blogger.com (Documents) — Sat, 26 Jun 2010 05:55:09 PDT

Google Street View is now available for South Africa and you can see the 10 World Cup stadiums in a gallery. Google Earth links to 3D models of the stadiums and the 9 cities that host the World Cup.

Popout

{ via John Mueller and Websonic }

From Investors' Solutions

noreply@blogger.com (Documents) — Mon, 14 Dec 2009 19:03:32 PST

11/20/09 - 6 common misconceptions about dividends
By: Jason Whitby,CFP, CFA, MBA, AIF
During periods of low yields and market volatility, more than a few experts recommend dividend stocks and funds. This may sound like good advice, but unfortunately, it is often based on misconceptions and anecdotal evidence.

It is time to take a closer look at the six most common reasons why advisors and other experts recommend dividends and why, based on these reasons, such recommendations are often unsound advice.

Misconception No. 1: Dividends are a good income-producing alternative when money market yields are low.
Taking cash and buying dividend stocks isn't consistent with being a conservative investor, regardless of what money markets are yielding. Additionally, there is no evidence that money market yields signal the right time to invest in dividend-focused mutual funds. In fact, money market yields were anemic throughout 2009, a year that is also one of the worst periods for dividend-focused funds in history.

Many advisors also call dividends a good complement to other investments during times of high volatility and low bank yields. In an October 22, 2009 article, financial guru Suze Orman recommended the following dividend funds: iShares Dow Jones Select Dividend Index (NYSE:DVY), WisdomTree Total Dividend (NYSE:DTD) & Vanguard High Dividend Yield Index (NYSE:VYM).

Reality Check: The 12-month performance after Orman's recommendation was DVY (+7.86%), DTD (+21.91%), VYM (+17.72%). These returns seem pretty good - until you realize you could have just held on to the S&P 500, which was up +26.36% over the same period.

Misconception No.2: Dividend companies are more stable and better managed.
It is generally believed that companies that raise their dividends over a long period have solid market positions and strong cash flow. As a result, the stocks' total return is likely to outpace other stocks.

It's also common to hear the argument that dividends tend to hold companies to a certain standard of financial discipline and that, as a result, these companies budget more carefully and avoid wasteful projects out of fear that shareholders will punish the stock if it fails to return profits to its investors.

Reality Check: It's easy to pick a "solid" stock in retrospect but it is impossible to pick a company today that will meet this statement moving forward. Sure, if you had purchased Coke in 1962…but what about today? In 2007 we would have said that General Electric (NYSE:GE) and AIG (NYSE:AIG) were stable and well-managed dividend companies. Would we say the same in 2009? What about in the future?

The notion that dividend-paying companies are held to higher standards does not bear out. Look no further than the financial industry. In September 2008, AIG had a $4.40 dividend - almost a 4% dividend yield. By 2009, it was clear that AIG and others such as Freddie Mac, Fannie Mae, Bank of America, Bear Stearns and Citigroup were far from being financially disciplined companies, despite that fact that they were all long-time dividend-paying companies. As it turns out, dividends aren't much of an indicator of the financial discipline or the quality of a company's management.

Misconception No.3: You can count on dividends from solid companies.
Many people believe that it's rare for a solid company to suddenly reduce or rescind its dividend payment.

Reality Check: "Solid" companies like Bank of America (NYSE:BAC), General Motors, Pfizer (NYSE:PFE) and GE, have either suspended or cut their dividends. Unfortunately, it is a lot easier to identify companies that had a solid record than to identify companies that will have a solid record going forward. It is impossible to predict which "solid" companies today are going to be on shaky ground tomorrow. There is no certainty or stability in future dividends.

The idea that dividends allow you to get paid to wait doesn't make sense. It is the total return of your portfolio that matters, not the current yield. Throughout 2008 and 2009, companies were cutting or suspending their dividend payments at record levels, proving that there is no guarantee for those who buy in to these companies. Just ask anyone holding Freddie Mac since June 12, 2008, which was when Freddie Mac last distributed a dividend and traded at $23.01 a share. At that time, Freddie Mac had a dividend yield of 4.34%. By October of 2009, the stock was down over 90% and hope for future dividends had all but evaporated.

Misconception No.4: Dividend stocks provide upside potential and downside protection.
A 2009 SPDR University brochure states that "Dividends provide a stable source of income that can help partially offset market price depreciation that occurs in turbulent markets."

Reality Check: Dividends provide very little - if any - downside protection during market corrections. The S&P 500 was down -41.82% during the September 2008 to March 2009 crash. During the same time, the SPDR S&P 500 Dividend ETF was down -35.87%, which doesn't seem like much downside protection. Additionally, some well-known, dividend-focused funds provided no downside protection and performed worse than the S&P 500 over this period. For example, the Fidelity Dividend Growth Fund was down -46.94% and the iShares Dow Jones Select Dividend Index was down -43.07%.

Since 1926, dividends have provided about one-third of the total return for the S&P 500, while capital appreciation has provided the other two-thirds. Focusing on dividends, which provided less returns than capital appreciation, makes little sense, especially since the dividend focus is just as risky.

Misconception No.5: Preferential tax treatment makes dividend stocks more attractive.
This misconception seems to imply that dividend stocks are more attractive investments since they are taxed at a preferential rate. Obviously, the lower rate is better than the normal income rates but what does it really mean? Does it mean you should avoid dividends in tax-deferred accounts since they are less attractive?

Reality Check: Of course it doesn't. Then why should the tax treatment warrant dividend investments more attractive than capital gains? It doesn't, which is shown by the lack of any noticeable bounce in 2003 when the preferential tax law was implemented. We need to remember that the tail should not be wagging the dog. After-tax returns are important, but taxes should not drive your investment decisions.

Misconception No.6: Dividend-focused investing is ideal for retirees and conservative investors.
An October 5, 2009, article in the Wall Street Journal stated that "Most types of fixed-rate bonds don't provide any protection against inflation and can lose value when investors are worried inflation will flare. Rising dividends, along with any appreciation in the share price of the company paying them, offer a measure of insurance against inflation."

Reality Check: This statement is incredibly misleading. First, if you want a bond that protects against inflation, you can buy an I-bond instead of taking equity risk. Secondly, all equity investments provide a measure of protection against inflation, not just dividend stocks.

No one ever said you could only have one investment. If you are a conservative investor, you can simply create a portfolio of bond funds and a little bit in a stock fund. The idea is to create an investment portfolio, not an investment collection. Each investment in the portfolio should work with the others to achieve a goal. This works much like the ingredients in a recipe, which come together to create a great dish.

Why are dividends a better way to generate income than capital gains? Capital gains are not a sure thing, but neither are dividends. And there is simply no way to know which stocks will continue to be "solid" in the future.

Conclusion
Dividends are absolutely an important part of the investment equation. Yet there is no empirical evidence that focusing on dividends is a wise decision. Actually, Miller and Modigliani received the Nobel Memorial Prize in large part for their paper, "Dividend Policy, Growth, and Valuation of Shares," in which they found that dividends are irrelevant to a company's value ("irrelevant" is their word, not mine).

On one side the media is dishing out long-lived misconceptions about dividends. On the other side, the Nobel winners are saying dividends are "irrelevant" to stock values. I'm not sure about you, but I know which one of these two groups I'm going with.

Now, job loss cover to make pink slip less painful

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 20:18:29 PDT

Now, job loss cover to make pink slip less painful
27 Mar 2009, 0420 hrs IST

Uncertainty in the job market has led to the introduction of a product that covers the risk of being laid off. Besides assuaging employees, the product could provide reassurance to wary lenders.

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 20:18:29 PDT

MF distributors may side-step commission disclosure norms
26 Mar 2009, 0241 hrs IST, Shailesh Menon & Gaurav Pai, ET Bureau

MUMBAI: The best laid plans of regulators can go awry, thanks to the ingenuity of those they regulate. Last month, the Securities and Exchange

Board of India proposed to make it mandatory for distributors to disclose the commission received for recommending the schemes of fund houses to the investors. Even if the proposal becomes law, distributors may be able to get around it.

According to fund houses, distributors and top independent financial advisors ask for “extra toppings” — apart from the normal commission of 2.25% — to recommend schemes.

These include event sponsorships, advertisements in in-house magazines (of the distributor), customised forms and sponsored tours. “Even if the regulator makes it mandatory for the distributors to mark the commission gained from the AMCs, there will be plenty of hidden incentives for recommending a particular fund house,” said the marketing head of a bank-promoted fund house.

“The distributor may show 2.25% as commission received from the AMC without revealing the sponsorships or advertisement money received in excess to the commission,” said the fund marketer.

According to industry sources, distributors (mainly independent financial analysts) push fund houses to the brink, demanding an additional 50 to 100 bps for pushing the fund house’s schemes to the investors. The smarter ones ask for advertisements in their weekly reports, publications and websites and many even seek financial aid to conduct investor meet programmes and investment seminars. During the bull-run, distributors even sought all-expense paid overseas trips and expensive gifts.

“Financial advisors are tough bargainers and sometimes their demands can be petty. For instance, a few of them customised application forms bearing the agent name and code in printed form,” said the channel-head of a private mutual fund company.

Sebi is thinking of publicising distributor commission as part of measures to introduce transparency in mutual fund pricing. The regulator has sought public opinion on implementing variable loads on mutual fund schemes. Fund marketers, in private, are elated that the power of distributors will be curtailed greatly with implementation of variable load structure and open pricing model.

“Fund houses are very conservative in paying distributors. They give additional benefits (and 2.25% commission) to the big distributors and banks; smaller distributors get commission only in the range of 1.50 - 1.75%,” said Rakesh Goyal, head of distribution at Bonanza Portfolio.

According to Mr Goyal, there is no pressure on asset management companies to insert advertisements in distributor’s publications or sponsor events. “Such steps are usually initiated by fund houses to drive up AUM. The fund house promoted by a leading corporate pays nearly 6% as commission to the big distributors,” said a Mumbai-based broker-distributor.

Avail special benefits offered by insurance companies

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 20:18:29 PDT

Avail special benefits offered by insurance companies

Yash Mohan Prasad, senior VP, HDFC Standard Life says, “Some insurance companies have special policies meant for non-smokers . They conduct specific blood tests to determine the nicotine levels.

The proposer is considered eligible for such policies if the nicotine content is within tolerance limits. Similarly , medical tests can also determine the consumption level of alcohol by an applicant.” The standard industry practice to define a non smoker is two years of “nicotine free period.

Some insurers have reduced it to a period of one year to be treated at par with standard risk individuals. Typically, women enjoy better longevity. In fact, insurers charge a lower premium to women for the same reason. For example, a 25 year old woman pays a premium which is equal to that of a 23 year old man.

Obese individuals to pay more premium if he opts for insurance

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 20:12:49 PDT

Obese individuals to pay more premium if he opts for insurance

If an obese individual opts for the same policy he may have to pay up to Rs 16,500 for the same policy. Similarly a diabetic may have to pay a similar amount depending upon his/her medical history coupled with family medical history. Hospitalisation due to illnesses such as typhoid or jaundice could advance your insurance needs.

If your proposal is within 6 months of hospitalisation the insurer will insist on all reports to prove that you are back in shape. According to industry estimates smokers pay an extra premium of 10-25 % depending upon other factors.

In the above example, a smoker will have to pay a premium of up to Rs 12,500 as against Rs 10,000 paid by a non-smoker . However, the medical reports have the final say.

Quickies Opting for timely insurance can bring down cost of premium II

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 20:12:49 PDT

Certain conditions jack up the premium for insurance

Prospective buyers of life insurance often discover that there is an ordinary rate based on the tables and there is the actual rate with various types of loadings. These loadings can be avoided by changing your lifestyle.

Smoking/drinking, cholesterol levels, obesity, diabetes, family medical history, age, gender, risky hobbies or even hazardous professions will increase your premiums compared to the other peers.

All the medical conditions can jack up the premium by almost 30% depending upon the intensity of the medical condition.

For example if an individual has opted for an insurance cover with a sum assured of Rs 50 lakh the premium amounts to about Rs 10,000 assuming he is in the pink of health and an appropriate medical history.

Quickies Opting for timely insurance can bring down cost of premium

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 20:12:49 PDT

Quickies
Opting for timely insurance can bring down cost of premium

Vidyalaxmi & Preeti Kulkarni, ET Bureau

Most insurance buyers are under the impression that there is little they can do to influence the cost of life insurance. But a clever approach to buying and a healthy lifestyle can bring down costs by 60%.

One example of clever buying is in the timing.

In life insurance rate tables you age much before your next birthday. Says Pranav Mishra, senior VP, products , ICICI Prudential Life: “If your age is 30 years and five months 29 days you will get the same rate as a 30 year old.

If you just delay the policy by another 2 days then you would be charged the same premium as a 31 year old. So the best time to buy cover is six months before your next birthday.

Premium income takes 10% knock

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 20:18:29 PDT

Premium income takes 10% knock
26 Mar 2009, 0446 hrs IST, Debjoy Sengupta, ET Bureau

KOLKATA: The life insurance industry has registered a 10% decline in first year premium income between April 2008 and February 2009, against the

previous corresponding period.

According to data released by IRDA, top insurers led by Life Insurance Corporation of India (LIC), ICICI Prudential and Bajaj Allianz all saw their premium income decline during the period.

The slide in premium income of insurers is based on the industry standard, where only 10% of first premium income from single-premium policies is considered.

First premium income in such scenarios, include only individual single-premium and individual non-single premium inflows. But total first year premium has shown a marginal Rs 46 crore growth during the period under review, against the previous corresponding period. Total first year premium considers 100% of first premium from single-premium policies and group policies.

In terms of the number of policies, the industry saw the count decline by nearly 45,260 policies. In percentage terms, these are near zero growth. Based on adjusted first premium income, LIC saw a 26% dip, while ICICI Prudential recorded a 19% slide. Bajaj Allianz Life and Aviva, in turn, saw adjusted premiums decline by 30% and 29%, respectively.

Others like, SBI Life, HDFC Standard Life, Birla Sunlife, Max New York Life and Kotak Life, saw adjusted first year premium income growth of 15%, 8%, 34% and 39% respectively. Others like Reliance Life, Met Life, Tata AIG and Sahara Life registered growth rates of 63%, 52%, 16% and 14% respectively.

In absolute terms, first premium income for LIC, however, saw a 4% decline to Rs 43883.24 crore during the period April 2008 to February 2009. In terms of the number of policies sold, LIC saw a 4% fall.

A senior LIC official said: “The fall is mainly due to the economic downturn. But we have seen a major shift in policy buying from unit-linked policies to traditional products. But the rise in number of traditional policies sold could not offset the fall in the number of Ulips bought by our customers.”

“Under the current economic uncertainty, individuals are deferring their decisions to buy since these are long term products. They would not like to enter into long term commitments as of now,” Mr Sunil Kakkar, chief financial officer at Max New York Life told ET.

Private insurers cumulatively showed a 7% rise in first premium income in absolute terms while the number of policies sold rose by 6%. ICICI Prudential, the largest private sector life insurer, in contrast saw a 12% decline in first premium income and a 5% fall in the number of policies sold.

Bajaj Allainz Life also saw a 28% fall in first premium income as well as the number of policies sold. Aviva’s first premium income declined 27% on a 3% decline in number of policies sold.

But private insurers like Tata AIG Life saw a 15% growth in first premium income, Reliance Life 46%, SBI Life 23%, Birla Sunlife 54%, Kotak Mahindra Old Mutual 35% and Max New York 25%.

Managing your money online

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 20:18:29 PDT

Managing your money online
27 Mar 2009, 0013 hrs IST, Sudhir Syal, ET Bureau

Like most people applying for a loan, Adhil Shetty, a graduate from the Columbia University and former consultant with Deloitte went through his

share of intensive search and confusion. “On one of my trips back home, I tried applying for a home loan for my parents and realised that a major pain point existed in the space. There was no clarity in terms of eligibility for a loan and consumers were often left running from one bank to the next,” he recalls.

Shetty teamed up with his brother Arjun who had experience in setting up an online finance marketplace for Amazon.com. With seed funding from Chennai-based AVT Group, the brothers launched Bankbazaar.com, a unique web platform that works in line with the financial product approval system in banks. So a user can enter his details, find out which financial products he is eligible for and apply for all of them within 2-3 minutes.

While Bankbazaar’s model is recent and regulatory issues regarding online applications are yet to be sorted out, scores of similar online plays such as Apnapaisa, Rupeetalk and Ratekhoj are making their presence felt in the personal finance market. The early players in this space have been web portals such as Web 18’s MoneyControl, Sify’s Walletwatch and Rediff’s MoneyWiz, which have served as an information resource for users.

Those looking for specific financial products usually go through search engines like Google and are directed to platforms such as Deal4loans, Loanraja and Loanshop, which form the category of ‘lead aggregators’. Here essentially, the user expresses his desire to purchase a loan and provides his contact information, this information is sent to financial companies which then compete with one another by calling the user and providing him with their best offer.

Another category is that of financial comparison engines that go one step further by providing customers with an opportunity to compare multiple financial products in the market and then apply for the one they believe best suits them. The leader of this category in terms of traffic is Apnapaisa.com, started by ex-ICICI banker Harsh Roongta,

“The biggest challenge in this format is in updating product information from the vast array of financial products in the market. We have a team of 60 people dedicated only to this. Our value proposition thus is in giving consumers the most neutral selection of products, empowering them to make a decision.” Apnapaisa has gone through a complete cycle, starting first as a DSA (direct sales agent) for banks, then moving to lead aggregator and finally finding its current format.

True to its proposition, Apnapaisa deals with investments, insurance and loans and lists information both on products of its advertisers as well as on other products. Roongta claims his website attracts approximately 500,000 unique users per month with a conversion of 12%.

Buoyed by the success of Apnapaisa, startups such as Rupeetalk and Ratekhoj have followed suit with all of them offering similar comparison engines on their site. Founded by IIM Lucknow graduate Satkam Divya, RupeeTalk has been built on the basis of the founder’s learnings while working with financial institutions such as Times Financial Services and ICICI.

“I helped set up the credit card sales module of ICICI Bank’s website and within just six months, I noticed the number of credit card applications go up from 1,500 to almost 35,000 a day. I thought, if this can work with credit cards why not with every other financial product,” he says. So with early stage investment from Seed Fund he launched RupeeTalk, which covers the entire gamut of credit, investment and insurance products. The site has seen a revenue run rate of Rs 10-12 lakh a month with approximately 10,000 leads being generated every month.

Another startup that uses the comparison model is Policybazaar, which is an insurance comparison engine from the Naukri.com group.

Now, job loss cover to make pink slip less painful

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 20:18:29 PDT

Now, job loss cover to make pink slip less painful
27 Mar 2009, 0420 hrs IST, ET Bureau

MUMBAI: Uncertainty in the job market has led to the introduction of a product that covers the risk of being laid off. Besides assuaging

employees, the product could provide reassurance to wary lenders.

With many companies laying off employees and few new jobs being created, the risk of unemployment has increased. ICICI Lombard has introduced a cover that will pay three equated monthly instalments (EMIs) on any individual loan. The job loss cover is sold as an add-on cover with its critical illness policy. Apart from job loss and, as the name suggests, critical illness, the policy covers risks such as accidental death and permanent total disability.

Such cover is common in the West and has been around for a while. In the UK, there are over two million mortgage payment protection insurance (MPPI) covers — policies that pay loan instalments if the borrower loses her job. Claims under the policies have jumped 200% on unemployment spurting to a 12-year high in Britain. This has compelled insurers to hike renewal premium on MPPI covers.

Under the newly-introduced cover, the insurer pays three EMIs of the policy holder in the event of job loss. The job loss may be as a result of closure of a division or a department due to financial limitations or action of any public authority resulting in the closure of the employer’s company. The job loss also covers the EMIs in the case of termination from employment due to illness. However, there’s a catch: the policy does not cover retrenchment due to underperformance, voluntary resignation or early retirement.

The validity of the job loss cover is five years. In other words, if a borrower wants the cover throughout the term of a 15-year loan, he will need to renew the job loss cover thrice.

“If the individual uses the job loss cover option, she can renew it only after five years. If she doesn’t use it, the premium is not refundable,” says ICICI Lombard head (customer service, health & accident) Sanjay Datta.ICICI Lombard is reviewing the possibility of increasing the three-month clause given the slowdown in the country. “We are evaluating the possibility. Since this is an in-built feature in the mediclaim product, we have to seek Irda approval before making changes to the features of the product,” Mr Datta adds.

As of now, there is no standalone job loss cover in the country. Even as job loss insurance has picked up in developed countries, it’s still testing waters in India. And even as other general insurers are mulling bundling their products with job loss covers, they aren’t confident of launching a standalone product to cover the risk of retrenchment. “The products come with low premia. Despite recessionary expectations, they haven’t seen significant demand in the market. Unless we see significant volumes, there is no incentive to roll out standalone job loss insurance covers,” an insurance broker said.

DKNY enters India through DLF Brands

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 20:18:29 PDT

DKNY enters India through DLF Brands

27 Mar 2009, 0105 hrs IST, Piyush Pandey & Pradeep Pandey, ET Bureau

MUMBAI: Global fashion design house Donna Karan International, part of the world’s leading luxury goods group LVMH Moet Hennessey Louis Vuitton,

is set to enter India.

The company on Wednesday signed an agreement with DLF Brands, the retail arm of real estate major DLF Group, to set up exclusive DKNY stores in India. DKNY, currently a public-traded venture, was founded in 1985 in New York by Donna Karan and her late husband Stephan Weiss. It was later purchased by LVMH Moet Hennessey Louis Vuitton.

DLF Brands is the recently-formed, wholly-owned subsidiary of DLF. It promotes over half-a-dozen leading international brands, including Armani, in India. DLF Brands managing director Kelvin Coyle told ET : "We have entered into an agreement with Donna Karan on Wednesday to bring its two brands — Donna Karan New York and DKNY — to India. Initially, we will set up three DKNY freestanding stores in India, which will showcase the DKNY ready-to-wear and accessories collections. Other Donna Karan New York and DKNY freestanding stores will be unveiled in the capital shortly."

India is fast becoming a major fashion hub and the next big destination for luxury. In India, the brand will cater to globetrotters and individuals who have a penchant for style, he added.

A top official of Donna Karan International said the company recently forayed into South Korea and Mainland China. The company has a long-term perspective on the growth potential of the Indian market and it plans to fully capitalise on the strong awareness the Donna Karan New York and DKNY brands already have in India, he said. The proposed entry in India is in line with the company’s strategy of selecting the most competent local partners, he added. Another source said both the companies have been in talks for over nine months.

Meanwhile, DKNY is also learnt to be in negotiations with Mumbai-based textiles and apparels firm S Kumars Nationwide (SKNL), to form a JV, where SKNL will be the sole supplier of raw materials to most of DKNY’s retail outlets. The JV will have the right to appoint all future franchisee of DKNY, barring 14 countries including India.

Donna Karan International designs, markets and distributes collections of women’s apparel, sportswear, accessories and shoes under the Donna Karan and DKNY brands.

Advertisers to get big breaks in IPL-2

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 19:58:55 PDT

Advertisers to get big breaks in IPL-2

27 Mar 2009, 0109 hrs IST, Ratna Bhushan & Shailesh Dobhal, ET Bureau

NEW DELHI: The Board of Control for Cricket in India (BCCI) is learnt to have tweaked the IPL 2 format. The board plans to introduce two

Celebrities at IPL Season 2
IPL 2: The Big buyouts

five-minute ‘strategy breaks’ — essentially ad breaks after every 10 overs, per match, during telecasts. This will add 600 seconds of commercial time per match. This is part of a renegotiation deal with broadcaster Multi Screen Media (MSM, earlier Sony Entertainment).

A BCCI official confirmed the development to ET. “It is true that as part of the new contract inked between the IPL management and MSM, after every 10 overs, there will be a five-minute commercial break,” the official said. With this, MSM will have access to extra air-time of 300 seconds each in both innings per match. So in totality, the broadcaster would get commercial airtime of around 2,600 seconds per match in Season 2, against approximately 2,000 seconds per match in Season 1.

MSM president (network sales) Rohit Gupta declined to comment on the development.

Apart from getting an opportunity to earn incremental revenues compared to Season 1, MSM will also not be pressurised to increase ad rates to recover costs. As of now, the broadcaster has maintained its ad rates of Rs 3-4 lakh per 10 seconds, to maximise chances of roping in even those advertisers, impacted by the slowdown. Now that there is clarity on the broadcaster, MSM is fast-tracking on closing its sponsorship and advertising deals. It is expected to formalise all sponsorship deals by the weekend.

MSM has shelled out a record $1.63 billion (Rs 8,200 crore) for IPL’s broadcast rights for nine years, and access to extra commercial time would help it in recovering the incremental costs involved in acquiring IPL rights for Season 2. This is much higher than its 10-year deal inked last year, when sports management firm World Sports Group (WSG) had bought the T-20 tournament’s multi-media rights for $918 million for 10 years and had, in turn, sold the rights to MSM for five years.

The MSM-WSG combine had additionally committed an additional promotional spend of $108 million. Last year, MSM had acquired IPL’s India broadcast rights for Rs 220 crore annually for a five-year period. After the deal was scrapped following a legal battle, WSG-Mauritius had bought back the broadcast rights from BCCI for around Rs 335 crore annually — 50% higher than its original deal with MSM.

BCCI is also learnt to have told the MSM management that the number of matches and teams could increase by 2011, which would help the broadcaster hedge its commercial risks over the 9-year period. Interestingly, BCCI had charged MSM with breach of contract on various fronts, one of which was including too many commercial inserts during matches and replays during Season 1.

Meanwhile, with the tournament being shifted back by a week and scheduled to start on April 18 instead of April 10, on air-deals with advertisers are being reworked, media buyers said. “There is a definitely a concern among advertisers because the number of matches on a single day on weekdays will increase significantly. We do expect an impact on ratings,” a leading media buyer said. The 59 matches are scheduled to be played across 36 days, and on average, there is a 20% drop in television ratings between prime time (9 pm) matches and matches played at 4 pm.

Steel cos pump up the volume

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 19:57:57 PDT

Steel cos pump up the volume

27 Mar 2009, 0320 hrs IST, Pramugdha Mamgain & Subhash Narayan, ET Bureau

NEW DELHI: India’s largest steelmakers are operating at full capacity after a five-month lull that saw them cutting production, raising hopes

that an economic recovery may be just around the corner.

SAIL, Tata Steel, JSW and Essar have all resumed normal production, a marked contrast from last October when most steel companies were forced to cut output by up to 40% due to a steep fall in demand.

The steel sector’s revival can be linked to an improvement in the economic situation since January, largely due to the fiscal and monetary measures taken by the government and RBI to spur demand. Demand in the rural sector has also picked up in the past two months.

“Since steel has a high co-relation with the GDP, a pickup in production is a clear indication of an increase in manufacturing and industrial growth,” said HDFC Bank chief economist Abheek Barua.

Domestic steel prices fell by over 35% from the July 2008 peak of Rs 50,000/tonne to Rs 28,000-30,000/tonne earlier this month. Prices have more or less stabilised since then.

Incidentally, global steel prices have seen a steeper fall to around $450-500/tonne from last year’s peak of $1,400. “While prices continue to fall marginally in the international market due to a dip in raw material prices, steel prices have almost stabilised in the domestic market on the back of a revival in demand,” said AS Firoz, a steel and natural resources consultant.

India’s largest steelmaker SAIL expects this quarter to be better than the October-December one. It clocked a 9-10% growth in sales in February and expects similar growth this month. “Demand of steel is coming mainly from rural construction, infrastructure, consumer durables and auto sectors,” said SAIL chairman SK Roongta. The firm is currently operating at 110% of its annual capacity of 16 million tonne to meet rising demand.

Rival Tata Steel recorded a 47% jump in sales in February over the corresponding month in 2008, with long products registering a 65% increase, according to company estimates. Despite a severe slowdown in demand, the company did not resort to production cuts in October-December.

Mumbai-based Essar Steel, which cut production by almost 40% last October, started operating at full capacity early this month.

Auto companies see no direct threat from Nano

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 19:55:48 PDT

Auto companies see no direct threat from Nano

NEW DELHI: Tata Motors newly-launched Nano will have only a marginal impact on the sale of Maruti-800, said Maruti Suzuki chairman RC Bhargava on

Price of Nano variants
Making of Nano
Nano in pics
Nano Europa

Thursday, but he denied any plan to cut prices to compete with the latest offering from the Tata stable.

Two-wheeler makers Hero Honda, Bajaj Auto and TVS Motors, too, underplayed the anticipated impact of Nano, saying the two-wheeler market would remain unaffected by the onslaught of Nano.

Talking to reporters on the sidelines of the annual session of CII, Mr Bhargava said, “Nano may impact the sale of our entry-level model Maruti 800. This is natural whenever a new car is launched in the market. Nano will also expand the market and add incremental numbers to the domestic passenger car market,” he said.

Asked about the plans of the company to counter the competition, Mr Bhargava said that Tata’s Nano and Maruti Suzuki’s small cars fall in two different segment. “There is no direct competition,” he said. Hero Honda MD and CEO Pawan Munjal said that Nano has not impacted the two-wheeler market from the day it was show-cased.

Agilent to cut 2,700 jobs, warns of revenue drop

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 19:55:03 PDT

Agilent to cut 2,700 jobs, warns of revenue drop
26 Mar 2009, 1842 hrs IST, REUTERS

Agilent Technologies Inc (A.N) is reducing its workforce by 2,700 people, or 14 percent, in response to a steep reduction in revenue expected

for 2009 due to the weak economy and "no prospects for a meaningful recovery in the foreseeable future."

The company said a restructuring of its electronic measurement business would have a cash cost of $160 million but would reduce annual costs by $300 million.

It also expects another $10 million in cost-cutting in its semiconductor and board test segment from the job cuts.

Agilent said it expects fiscal 2009 revenue in its electronic measurement business to fall roughly 30 percent from 2008 to the lowest in its 10-year history.

It also warned that revenue in its semiconductor and board test segment would be down more than 50 percent from last year and 65 percent from its peak.

Google to cut 200 jobs from sales force

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 19:51:54 PDT

Google to cut 200 jobs from sales force

27 Mar 2009, 0132 hrs IST, REUTERS

SAN FRANCISCO: Google Inc is cutting its sales and marketing team by roughly 200 employees, saying it had over-invested in certain parts of the

company.

The move is the Web search leader's latest effort to cut costs amid a tough economy and a broad slowdown in advertising spending. In January, Google laid off about 100 recruiters and it said up to 40 people would be laid off in February, when Google pulled the plug on its radio advertising effort.

"When companies grow that quickly it's almost impossible to get everything right and we certainly didn't," Google Senior Vice President of Global Sales and Business Development Omid Kordestani said in an announcement posted on Google's blog on Thursday.

Lawyers from US, UK find jobs in India

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 19:47:09 PDT

Lawyers from US, UK find jobs in India
27 Mar 2009, 0203 hrs IST, Mini Joseph Tejaswi, TNN

BANGALORE: Indian law firms and legal process outsourcing outfits have been attracting many American and British law professionals in the past

Office parties can make or break careers

few months.

The reason: The recession has severely impacted the global legal practising industry; one out of every 10 lawyers in the US is said to have been laid off. To cut cost, many corporations are discontinuing their contracts with external law firms or are outsourcing a substantial portion of their legal engagements to countries like India. This has resulted in a flood of US/UK lawyer CVs to India.

Mumbai-based legal process outsourcing (LPO) firm Mindcrest recently hired five senior US lawyers. It's planning to hire another 10 American lawyers this year. Pangea3, another Mumbai-based LPO firm, recently hired three American legal professionals , while another two are expected to join the company within a month. SDD Global Solutions, a Mysore-based legal practices outsourcer, is also hiring many foreign lawyers.

Mindcrest MD Rohan Dalal said US corporates are significantly downsizing their corporate legal departments. ‘‘ Besides, having India on their CV will give a multi-culture dimension which could help them in future. It's also good for Indian lawyers as they get global mentoring and guidelines.''

Mindcrest, which specialises in litigation documentation, litigation support , corporate law, contracts drafting, due deligence, compliance of laws, business analytics and case analysis, plans to employ 1,000 lawyers by the end of the year, up from the current 616. Pangea3 co-CEO Sanjay Kamlani said a large number of US lawyers have been getting in touch with them. "Some are personally coming to India and meeting us to explore options.''

Russel Smith, president of SDD Global Solutions, said outsourcing to India is enormously cost effective because US lawyers are very expensive. "They are paid $300/900 an hour while it is less than 1/10 of that in India. Globally, the traditional hour-based working style of law firms are changing . Companies these days prefer smaller firms who believe in flat rates,'' said Smith.

SDD Global does legal research, strategic legal analysis, and legal opinion-drafting for upcoming motion picture releases from 20th Century Fox, Sony Pictures and Universal Studios.

According to Sajay Singh, partner and head for technology in law firm J Sagar Associates, apart from reputed legal practioners, a large number of interns are also looking at India. ‘‘ Many Indian law firms today have foreign interns, as US law firms now give only few seats for interns.''

Foreign lawyers are not allowed to practice in India, however they are allowed to join domestic law firms and indirectly advise clients.

Some say the recession in the US legal market will mean a 100% growth for the Indian LPO market. It's currently pegged at $500 million.

Obama says to help US automakers as GM workers leave II

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 19:46:04 PDT

Obama says to help US automakers as GM workers leave
27 Mar 2009, 0301 hrs IST, AGENCIES

Both automakers have yet to reach related deals with the UAW that would allow them to pay the union in stock rather than cash for half of

their remaining obligations to a trust fund for retiree health care, Voluntary Employee Beneficiary Association.

GM bondholders also face pressure to write off two-thirds of the more than $27 billion they are owed in exchange for stock in a recapitalized company.

Advisers to GM bondholders met with Rattner and the autos task force earlier this month, but complained as recently as Sunday that they had been shut out of ensuing talks with both US government representatives and the GM executives.

A person briefed on those negotiations said on Thursday that the two sides had begun talking again this week.

GM shares ended up 14.1 per cent at $3.41 on the New York Stock Exchange on Thursday afternoon, off an earlier high at $3.49. Rival Ford Motor Co shares ended 6.1 per cent higher at $2.94.

Standard & Poor's said in a research note that Thursday's rally in GM shares was "unwarranted" because of lingering risks of stock dilution or bankruptcy. But higher share prices could help GM as it negotiates a debt-for-equity swap with bondholders and the UAW, it added.

'NO SIGNS OF RECOVERY'

A White House spokesman said Obama has been frustrated with the auto industry for some time, and said the president believes industry executives have made bad business decisions over several years.

GM and Chrysler, which lost a combined $39 billion last year, have been hit by a deepening downturn in US car sales, which slumped by more than a third in January and February and hit their lowest levels in 27 years.

Toyota Motor Corp President Katsuaki Watanabe said US auto industry sales have shown no signs of recovery in March from a weak start to the year and he could not tell when global car sales would bottom.

"Annualized sales in January and February were a little above 9 million, and we're hearing that March will be about the same, if not worse than February," Watanabe told a news conference on Thursday.

Honda Motor Co, Japan's No. 2 automaker, also said it saw no signs of a recovery in market demand as it announced further delays to the start of a new factory in Japan by at least a year.

In South Korea, the government announced tax breaks for new car buyers and measures for easier consumer financing to support its domestic car industry.

Most automakers have been reducing production, scaling back investment and cutting jobs in an effort to preserve cash as the sales slump bites around the globe.

Obama says to help US automakers as GM workers leave

noreply@blogger.com (Documents) — Thu, 26 Mar 2009 19:44:52 PDT

Obama says to help US automakers as GM workers leave
27 Mar 2009, 0301 hrs IST, AGENCIES

DETROIT/WASHINGTON: US President Barack Obama said on Thursday that his administration would unveil in the coming days the next part of its plan

to help the troubled US auto industry, provided the companies push ahead with sweeping restructurings.

The signal of additional federal support prompted a rally in General Motors Corp shares and came as the embattled automaker announced that 12 per cent of its US hourly workers had accepted buyouts.

Auto sector shares rallied across the board and GM jumped more than 14 per cent as Obama's comments bolstered expectations that while US officials would demand tough concessions from creditors and shareholders, they would not force GM and its smaller US rival Chrysler LLC into bankruptcy.

"What we're expecting is that the automakers are going to be working with us to restructure. We will provide them some help," Obama said at a town hall meeting conducted at the White House for viewers on the Internet.

"I know that it is not popular to provide help ... to auto companies," he said. "If they're not willing to make the changes and the restructurings that are necessary, then I'm not willing to have taxpayer money chase after bad money."

GM and Chrysler face a March 31 deadline from US officials to act on a request for up to $22 billion in additional emergency loans to help them ride out the weakest auto sales in three decades.

On a combined basis, the two automakers have relied on $17.4 billion in loans from the US Treasury to stay in operation since the start of the year.

The request for additional funding, which is being reviewed by a White House panel led by former investment banker Steve Rattner, hinges on the companies' ability to win concessions from the United Auto Workers union and creditors.

As part of its efforts, GM said on Thursday that 7,500 US hourly workers represented by the UAW had accepted buyout offers and would be off its payroll by April 1.

Including the latest round of buyouts, GM has cut 60,500 jobs since 2006 -- more than half of its US. factory workforce -- as US auto sales have slowed and its own cash position has weakened.

Separately, Chrysler said it would extend a buyout program that it offered to all its 26,000 US hourly workers last month.

GM and Chrysler have won pending contract changes from the UAW intended to help them cut hourly wage costs to the level of Japanese automakers' operating plants in the United States.