The high price of steel has sent Mr Mittal's wealth soaringOnly one of Britain's five wealthiest people was born in the UK, according to the Sunday Times Rich List 2007.
The £19bn fortune of Indian steel magnate Lakshmi Mittal ensured he kept his title as Britain's richest person.
The Duke of Westminster was ranked at number five in the list behind four non-Britons, including Chelsea owner Roman Abramovich who is worth £10.8bn.
Analysts said a growing number of mega-rich foreigners are attracted to the UK by a generous tax regime.
As well as Russia and India, the wealthy from Scandinavia and France are also looking to base themselves in the UK.
Paranoia
There were several reason why the UK was a big draw, said the list's compiler, Dr Philip Beresford.
It's income from around the world that we wouldn't get a sniff of otherwise
Patrick StevensErnst and Young
"London is such an attractive place for the very rich, not just tax wise but because they have the city, the culture and the safety and security," he told the BBC.
"And New York has shot itself in the foot with its onerous regulation.
"There is also general paranoia in the US after 9/11 that makes foreign billionaires feel uncomfortable, and London is winning as a result."
Ernst and Young tax expert Patrick Stevens said that the real draw was a tax regime allowing foreign residents to be taxed only on what they actually brought into the UK - regardless of how much money was earned overseas.
"It's a very attractive regime compared to other parts of the world," Mr Stevens told the BBC.
Roman Abramovich's divorce "barely dented" his fortune
"Every few years the subject comes up about whether its right to have a separate tax regime for people from overseas who come to live here, but nothing has happened and there's no immediate sign of it changing."
The money which did come in was a "boost for the economy", he added.
"If we didn't have the regime they wouldn't come and it's income from around the world that we wouldn't get a sniff of otherwise."
Self-made millionaires
Full details of the 2007 Sunday Times Rich List have not yet been released but it is expected to include about 65 billionaires - up from 54 last year.
To get onto the 1,000-strong list you must live in the UK and have at least £70m, compared with £60m a year ago.
When first launched in 1989, 75% of those on it had inherited their wealth.
Today, 78% of those on the list have made their money themselves through business.
However, fewer than 10% of those on the rich list are women.
Stelios takes off
The continuing high steel price has helped Mr Mittal, whose Mittal Steel bought rival Arcelor last year boost his wealth from the $14.8bn he had last year.
Meanwhile, a costly divorce settlement with his wife Irina had "barely dented" Mr Abramovich's fortune, Dr Beresford said.
Climbers include Easyjet's Stelios Haji-Ioannu in 49th place with a personal worth of £1.29bn, singer Robbie Williams, ranked 755th with £95m, and David Beckham, placed 619th with £112m.
X Factor and American Idol judge Simon Cowell saw his wealth balloon by £40m to about £100m.
Sir Richard Branson slipped two places to number 11, with his £3.1bn fortune.
The Queen has an estimated wealth of just about £300m, Dr Beresford said.
But he added that if the royal art collection and other assets had been classed as belonging to her, she would have been in the "top two or three" of the list.
Wednesday, April 25, 2007
Sharp decline in US house sales
Boom times in the housing market seem a long time agoSales of non-new US homes fell 8.4% in March, the sharpest month-on-month drop for 18 years and a further illustration of weakness in the US housing market.
The data, from the National Association of Realtors, also showed the number of homes sold was at a near-four year low.
The housing market has stuttered badly in recent months, raising fears about the health of the economy in general.
Confidence has been hit by problems in the sub-prime mortgage market, with many lenders under severe pressure.
Sub-prime lenders loan money to people with poor credit histories and the recent collapse of one such lender is being investigated by regulators and Congress.
Separate figures published by the Conference Board showed US consumer confidence fell last month to its lowest level since August.
'Bottoming out'
The housing market is a vital barometer of the US economy, which is expected to slow this year.
Some analysts remain worried that a sharp fall in the market, allied to weakness in manufacturing, could potentially trigger a recession.
The Fed will need to cut rates some time this year to jump-start the economy
Andrew Brenner, Man Financial
The latest figures showed an 11.3% fall in existing home sales, compared with a year ago.
About 6.1 million existing homes were traded in March, the lowest figure since June 2003, while the average price of a house is now $217,000, down 0.3% on 2006.
"In terms of home sales numbers we are in the middle of a bottoming process which is going to take us some time," said Michael Vogelzang, president of finance firm Boston Advisors.
"I think the sub-prime stuff is all tied up in the middle of this."
Rates dilemma
Policymakers have held US interest rates at 5.25% for the past six months, trying to balance fears of persistent inflation with the palpable signs of a slowdown in economic activity.
But inflation eased slightly last month, leading some analysts to call for the Federal Reserve to consider cutting rates soon.
"Simply put, these numbers are bad," Andrew Brenner, an analyst at Man Financial, said of the housing figures.
"The Fed will need to cut rates some time this year to jump-start the economy."
The data, from the National Association of Realtors, also showed the number of homes sold was at a near-four year low.
The housing market has stuttered badly in recent months, raising fears about the health of the economy in general.
Confidence has been hit by problems in the sub-prime mortgage market, with many lenders under severe pressure.
Sub-prime lenders loan money to people with poor credit histories and the recent collapse of one such lender is being investigated by regulators and Congress.
Separate figures published by the Conference Board showed US consumer confidence fell last month to its lowest level since August.
'Bottoming out'
The housing market is a vital barometer of the US economy, which is expected to slow this year.
Some analysts remain worried that a sharp fall in the market, allied to weakness in manufacturing, could potentially trigger a recession.
The Fed will need to cut rates some time this year to jump-start the economy
Andrew Brenner, Man Financial
The latest figures showed an 11.3% fall in existing home sales, compared with a year ago.
About 6.1 million existing homes were traded in March, the lowest figure since June 2003, while the average price of a house is now $217,000, down 0.3% on 2006.
"In terms of home sales numbers we are in the middle of a bottoming process which is going to take us some time," said Michael Vogelzang, president of finance firm Boston Advisors.
"I think the sub-prime stuff is all tied up in the middle of this."
Rates dilemma
Policymakers have held US interest rates at 5.25% for the past six months, trying to balance fears of persistent inflation with the palpable signs of a slowdown in economic activity.
But inflation eased slightly last month, leading some analysts to call for the Federal Reserve to consider cutting rates soon.
"Simply put, these numbers are bad," Andrew Brenner, an analyst at Man Financial, said of the housing figures.
"The Fed will need to cut rates some time this year to jump-start the economy."
Phenomenal rise of India's savings
One economic variable that eludes popular attention but is arguably the most important indicator of an economy's long-term health is the savings rate.
A nation's savings rate or investment rate - the two are usually closely aligned - is the fraction of the nation's total income that is saved or invested.
In India, amid all the news of the dogged rise of the nation's foreign currency reserves, the obduracy of inflation, and the waxing and waning of the Sensex (not to mention Shilpa Shetty's moods), what has gone unnoticed is the phenomenal rise of the savings and investment rates.
These now stand at 32% and 34%, respectively.
The savings sprint over the last three years... is the most unexpected and most important change that has occurred in the economy in recent times.
Through the 1970s and 1980s observers around the world marvelled at the surging growth of the East Asian nations and the fact that each one of them saved more than 30% of their national income.
Since virtually no other nation saved and invested at such high rates, a 30-plus savings rate was considered an exclusively East Asian phenomenon.
Economic theory had long taught us that savings and growth are closely connected. But it is not easy to deliberately raise a nation's savings rate.
Up to the late 1960s India's savings rate remained below 15%. It rose to just over 20% by the late 1970s and thereafter remained between 20% and 24% up until two or three years ago.
The savings sprint over the last three years, which puts India in the East Asian category, is, at the same time, the most unexpected and most important change that has occurred in the economy in recent times.
Unknown cause
It gives reason to believe that the high growth of over 8% per annum of the national income is sustainable.
What caused this change? For the rise that occurred between 1969 and 1979 it is reasonable to hazard that the cause was the founding of the Unit Trust of India in 1964 and the sharp rise in the number of bank branches following the nationalisation of banks in 1969.
At that time there were around 9,000 branches in India; this rose to over 38,000 by 1981. Ordinary folks, who previously had no place to keep their savings, came out in large numbers to save in units, banks and post offices.
The savings rate rise of the last three years is too recent for us to be sure of the cause.
But some insight can be gleaned from the break-up of the total savings.
Over the last few years, household savings have undergone some changes in composition - people are putting more of their money in financial assets than physical assets.
But aggregate household savings have increased upwards only at a glacial pace.
Interesting things have however happened to the state sector. By the late 1990s the public sector had become a net "dis-saver".
Trustworthy nations
That is, it consumed more than it earned. But it managed to put its house in order by 2003, and now has a small positive savings rate of 2% of the national income.
The real gain, however, has come from the corporate sector, which has doubled its savings rate, from just under 4% in 2001 to over 8% in 2005. Hence, the improvement in aggregate savings in India is probably caused by a combination of better fiscal management and bullishness in the corporate sector.
Unlike stock market indicators or the rate of inflation, the savings rate does not fluctuate too much. Hence, barring some calamitous change, our savings rate should not drop below 30% for some years to come.
But I have another reason for being optimistic. What economists do not realise is that a large part of a nation's economic performance depends on social and cultural factors. Francis Fukuyama had argued that more trustworthy nations tend to do better in the long run.
This stands to reason. One cannot rely on the courts to enforce every contract and every promise. So when we want to offer a business deal or a trade pact, we look for people who are known to be honest and trustworthy.
East Asians are reputed for their trustworthiness; it is not surprising that investment flows into East Asia.
From the point of view of an individual, honesty is partly an in-built trait, but it is also in some measure a matter of choice. If we are interested only in the short run, we would not hesitate to ditch a business partner in order to make a quick buck.
On the other hand, as our horizon becomes longer, we are more willing to forego short-term gains for the sake of long-run reputation. In other words, it is worthwhile for us to make "investments" in our reputation.
Some of the same factors that make us invest and save more, make us want to be more dependable and trustworthy.
I cannot provide statistical evidence for this, but my hunch is that in India both these processes have been set in motion and the high growth that we are witnessing now is an outcome of increases in both these economic and social investments.
A nation's savings rate or investment rate - the two are usually closely aligned - is the fraction of the nation's total income that is saved or invested.
In India, amid all the news of the dogged rise of the nation's foreign currency reserves, the obduracy of inflation, and the waxing and waning of the Sensex (not to mention Shilpa Shetty's moods), what has gone unnoticed is the phenomenal rise of the savings and investment rates.
These now stand at 32% and 34%, respectively.
The savings sprint over the last three years... is the most unexpected and most important change that has occurred in the economy in recent times.
Through the 1970s and 1980s observers around the world marvelled at the surging growth of the East Asian nations and the fact that each one of them saved more than 30% of their national income.
Since virtually no other nation saved and invested at such high rates, a 30-plus savings rate was considered an exclusively East Asian phenomenon.
Economic theory had long taught us that savings and growth are closely connected. But it is not easy to deliberately raise a nation's savings rate.
Up to the late 1960s India's savings rate remained below 15%. It rose to just over 20% by the late 1970s and thereafter remained between 20% and 24% up until two or three years ago.
The savings sprint over the last three years, which puts India in the East Asian category, is, at the same time, the most unexpected and most important change that has occurred in the economy in recent times.
Unknown cause
It gives reason to believe that the high growth of over 8% per annum of the national income is sustainable.
What caused this change? For the rise that occurred between 1969 and 1979 it is reasonable to hazard that the cause was the founding of the Unit Trust of India in 1964 and the sharp rise in the number of bank branches following the nationalisation of banks in 1969.
At that time there were around 9,000 branches in India; this rose to over 38,000 by 1981. Ordinary folks, who previously had no place to keep their savings, came out in large numbers to save in units, banks and post offices.
The savings rate rise of the last three years is too recent for us to be sure of the cause.
But some insight can be gleaned from the break-up of the total savings.
Over the last few years, household savings have undergone some changes in composition - people are putting more of their money in financial assets than physical assets.
But aggregate household savings have increased upwards only at a glacial pace.
Interesting things have however happened to the state sector. By the late 1990s the public sector had become a net "dis-saver".
Trustworthy nations
That is, it consumed more than it earned. But it managed to put its house in order by 2003, and now has a small positive savings rate of 2% of the national income.
The real gain, however, has come from the corporate sector, which has doubled its savings rate, from just under 4% in 2001 to over 8% in 2005. Hence, the improvement in aggregate savings in India is probably caused by a combination of better fiscal management and bullishness in the corporate sector.
Unlike stock market indicators or the rate of inflation, the savings rate does not fluctuate too much. Hence, barring some calamitous change, our savings rate should not drop below 30% for some years to come.
But I have another reason for being optimistic. What economists do not realise is that a large part of a nation's economic performance depends on social and cultural factors. Francis Fukuyama had argued that more trustworthy nations tend to do better in the long run.
This stands to reason. One cannot rely on the courts to enforce every contract and every promise. So when we want to offer a business deal or a trade pact, we look for people who are known to be honest and trustworthy.
East Asians are reputed for their trustworthiness; it is not surprising that investment flows into East Asia.
From the point of view of an individual, honesty is partly an in-built trait, but it is also in some measure a matter of choice. If we are interested only in the short run, we would not hesitate to ditch a business partner in order to make a quick buck.
On the other hand, as our horizon becomes longer, we are more willing to forego short-term gains for the sake of long-run reputation. In other words, it is worthwhile for us to make "investments" in our reputation.
Some of the same factors that make us invest and save more, make us want to be more dependable and trustworthy.
I cannot provide statistical evidence for this, but my hunch is that in India both these processes have been set in motion and the high growth that we are witnessing now is an outcome of increases in both these economic and social investments.
Thursday, April 19, 2007
Baghdad bombings
Baghdad bombings toll mounts to 195
Baghdad: The death toll from Wednesday's violent blasts across Iraq climbed to 195 a day later.Of the many bomb attacks, the three largest ones exploded in the mostly Shia areas of Baghdad, making it one of the deadliest days in Iraq.The European Union and the US condemned the attacks. In Tel Aviv, US defence secretary Robert Gates called the bombings "horrifying" and accused Al Qaeda of engineering the attacks.In central Baghdad's Sadriya district, at least 140 people were killed and more than 150 wounded when a car bomb detonated, Voices of Iraq news agency reported citing a security source. The district is mostly populated by Shias.The overcrowded Sadriya district, which contains a big number of markets and stores, had witnessed several attacks in the past. This attack followed three previous blasts around Iraq, which had killed at least 30 Iraqis.A car bomb detonated in Mothafer Square near the Shia Sadr city east of Baghdad, killing at least 40 and injuring 45 others, according to Voices of Iraq.In central Baghdad, a remote-controlled car bomb went off in the Karada district, killing 10 Iraqis. In other attacks in Baghdad, at least five more people were killed.The attacks were launched despite intensified safety measures and the deployment since mid-February of 3,000 US and 10,000 Iraqi additional soldiers in Baghdad.Joint US-Iraqi Wednesday arrested Sheikh Ali Hussein al-Bayati, a leader of Sadr's office in Khalis district, along with 11 Mahdi army militiamen, including al-Bayati's brother. The detainees are accused of launching attacks on a sectarian basis.Also Wednesday, five terrorist suspects were killed and four others wounded, while 26 more were detained during an operation near Karmah, a rural area northeast of Fallujah, the US military announced Wednesday.
Baghdad: The death toll from Wednesday's violent blasts across Iraq climbed to 195 a day later.Of the many bomb attacks, the three largest ones exploded in the mostly Shia areas of Baghdad, making it one of the deadliest days in Iraq.The European Union and the US condemned the attacks. In Tel Aviv, US defence secretary Robert Gates called the bombings "horrifying" and accused Al Qaeda of engineering the attacks.In central Baghdad's Sadriya district, at least 140 people were killed and more than 150 wounded when a car bomb detonated, Voices of Iraq news agency reported citing a security source. The district is mostly populated by Shias.The overcrowded Sadriya district, which contains a big number of markets and stores, had witnessed several attacks in the past. This attack followed three previous blasts around Iraq, which had killed at least 30 Iraqis.A car bomb detonated in Mothafer Square near the Shia Sadr city east of Baghdad, killing at least 40 and injuring 45 others, according to Voices of Iraq.In central Baghdad, a remote-controlled car bomb went off in the Karada district, killing 10 Iraqis. In other attacks in Baghdad, at least five more people were killed.The attacks were launched despite intensified safety measures and the deployment since mid-February of 3,000 US and 10,000 Iraqi additional soldiers in Baghdad.Joint US-Iraqi Wednesday arrested Sheikh Ali Hussein al-Bayati, a leader of Sadr's office in Khalis district, along with 11 Mahdi army militiamen, including al-Bayati's brother. The detainees are accused of launching attacks on a sectarian basis.Also Wednesday, five terrorist suspects were killed and four others wounded, while 26 more were detained during an operation near Karmah, a rural area northeast of Fallujah, the US military announced Wednesday.
Govt decides to exempt exports from service tax - India
New Delhi: The Government on Thursday decided to exempt services exports from service tax and expanded the scope of a host of schemes to boost merchandise exports while fixing a target of $160 billion for 2007-08.
Announcing the annual supplement of the Foreign Trade Policy, Commerce and Industry Minister Kamal Nath said the export target of 125 billion dollars for 2006-07 has been met and the government hopes to achieve $160 billion in the current financial year.
Besides merchandise exports, the country also exported services worth $76.10 billion, he said. Under the review of the trade policy, the Vishesh Krishi and Gram Udyog Yojana for promoting agriculture exports has been expanded to include soyabean and coconut oil as well as food preparations such as soups.
The government also extended the popular Duty Entitlement Passbook (DEPB) scheme for exporters till March 2008. A new scheme to replace DEPB would be finalised by then, Nath said.
Further, the Focus Product and Focus Market schemes has been expanded to include additional items and 16 more countries. The corpus of Focus Product scheme has been increased to Rs 1,000 crore from Rs 650 crore last fiscal.
In a bid to encourage SEZs, Nath said, developers and co-developers of these zones would be covered under duty refund schemes
New Delhi: The Government on Thursday decided to exempt services exports from service tax and expanded the scope of a host of schemes to boost merchandise exports while fixing a target of $160 billion for 2007-08.
Announcing the annual supplement of the Foreign Trade Policy, Commerce and Industry Minister Kamal Nath said the export target of 125 billion dollars for 2006-07 has been met and the government hopes to achieve $160 billion in the current financial year.
Besides merchandise exports, the country also exported services worth $76.10 billion, he said. Under the review of the trade policy, the Vishesh Krishi and Gram Udyog Yojana for promoting agriculture exports has been expanded to include soyabean and coconut oil as well as food preparations such as soups.
The government also extended the popular Duty Entitlement Passbook (DEPB) scheme for exporters till March 2008. A new scheme to replace DEPB would be finalised by then, Nath said.
Further, the Focus Product and Focus Market schemes has been expanded to include additional items and 16 more countries. The corpus of Focus Product scheme has been increased to Rs 1,000 crore from Rs 650 crore last fiscal.
In a bid to encourage SEZs, Nath said, developers and co-developers of these zones would be covered under duty refund schemes
Announcing the annual supplement of the Foreign Trade Policy, Commerce and Industry Minister Kamal Nath said the export target of 125 billion dollars for 2006-07 has been met and the government hopes to achieve $160 billion in the current financial year.
Besides merchandise exports, the country also exported services worth $76.10 billion, he said. Under the review of the trade policy, the Vishesh Krishi and Gram Udyog Yojana for promoting agriculture exports has been expanded to include soyabean and coconut oil as well as food preparations such as soups.
The government also extended the popular Duty Entitlement Passbook (DEPB) scheme for exporters till March 2008. A new scheme to replace DEPB would be finalised by then, Nath said.
Further, the Focus Product and Focus Market schemes has been expanded to include additional items and 16 more countries. The corpus of Focus Product scheme has been increased to Rs 1,000 crore from Rs 650 crore last fiscal.
In a bid to encourage SEZs, Nath said, developers and co-developers of these zones would be covered under duty refund schemes
New Delhi: The Government on Thursday decided to exempt services exports from service tax and expanded the scope of a host of schemes to boost merchandise exports while fixing a target of $160 billion for 2007-08.
Announcing the annual supplement of the Foreign Trade Policy, Commerce and Industry Minister Kamal Nath said the export target of 125 billion dollars for 2006-07 has been met and the government hopes to achieve $160 billion in the current financial year.
Besides merchandise exports, the country also exported services worth $76.10 billion, he said. Under the review of the trade policy, the Vishesh Krishi and Gram Udyog Yojana for promoting agriculture exports has been expanded to include soyabean and coconut oil as well as food preparations such as soups.
The government also extended the popular Duty Entitlement Passbook (DEPB) scheme for exporters till March 2008. A new scheme to replace DEPB would be finalised by then, Nath said.
Further, the Focus Product and Focus Market schemes has been expanded to include additional items and 16 more countries. The corpus of Focus Product scheme has been increased to Rs 1,000 crore from Rs 650 crore last fiscal.
In a bid to encourage SEZs, Nath said, developers and co-developers of these zones would be covered under duty refund schemes
Hot Fuzz & The Art Of Making Films For DVD
This week we went along to the Lincoln Center to a screening of Hot Fuzz, the new film from the makers of Shaun of the Dead and Spaced. The film is superb - go see it - but what's more interesting is the way they wrote the script and filmed it. At the Q&A with Dan Smith afterwards, Simon Pegg and Edgar Wright told the audience about how they realized that their fans of their shows would analyze the details of the films and write about them in forums and on blogs. So, Pegg and Wright created a film that can be watched many times and rewards the viewer each time they watch it (on DVD). Wright said:
"Everything in the film is connected. For everything a character says, there's a pay-off."
Pegg said,
"In the film we actually put punchlines before the set ups. If you watch the film a second time you realize all the people who get murdered actually predict their demise: The florist tells the cop 'I'm just about to pop off.' and the amateur dramatist says to his young love, 'We haven't got long now.' There's so much you're only going to get a second or third time you watch the DVD."
The DVD will also contain narrated graphic back-stories and even feature the flick-book animation PC Danny Butterman has drawn in his note book that the main character refuses to look at.
Although it's not necessaily a new startegy, it shows how film makers are changing the way they create work in order to satisfy the way their audience is consuming it.
"Everything in the film is connected. For everything a character says, there's a pay-off."
Pegg said,
"In the film we actually put punchlines before the set ups. If you watch the film a second time you realize all the people who get murdered actually predict their demise: The florist tells the cop 'I'm just about to pop off.' and the amateur dramatist says to his young love, 'We haven't got long now.' There's so much you're only going to get a second or third time you watch the DVD."
The DVD will also contain narrated graphic back-stories and even feature the flick-book animation PC Danny Butterman has drawn in his note book that the main character refuses to look at.
Although it's not necessaily a new startegy, it shows how film makers are changing the way they create work in order to satisfy the way their audience is consuming it.
Wednesday, April 18, 2007
WELCOME NOTE!!
Hi!!! Lookin forward to meet some great people around here. Will soon furnish you with whats new and whats hot from my side. Certainly will shed light on my profile and whats cooking by my side. Till then cheers !! and happy blogging @ Revived
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