Finance News

Possibility of supply disruptions has raised oil prices to a record high. Prices for US light, sweet crude oil have reached $117.48.

Major causes for recent oil price hike:
• High demand from rapidly developing countries like India and China.
• Falling dollar value.
• Reluctance of oil producing countries to increase production.
• Recent militant attack on pipelines in Nigeria. This resulted in a decrease in oil production.
• A Japanese oil tanker lost thousands of gallons of fuel after it was attacked off the coast of Yemen.

If the drop in inflation is any indication, Government's tough finance measures seems to be working. Inflation has dropped by 0.27% to 7.14% for the week ending April 5, 2008. Inflation was at a peak of 7.41% the previous week.

World Bank announces emergency measures to tackle rising food prices around the world. The Bank endorsed bank head Robert Zoellick's action plan for boosting agricultural production.

The proposed steps include

• Calling on the international community to make up the $500 million food gap required by the UN's World Food Program
• Doubling of agriculture lending in Africa from $400 million to $800 million.
• ncreasing financial support for short-term needs (restructuring existing projects and increasing the size of upcoming grants and loans when needed).

India's inflation reached 7.4% this March. This is the highest rate since November 2004. Rising International oil, food and metal prices has also contributed to this increase.

With election round the corner, rising prices has become a sensational issue for the Government. Government is hoping that a good wheat harvest this year will bring the prices down.

In an effort to control rising food costs, Government of India has banned the export of rice. The export ban is applicable to non-basmati rice varieties.

India is the third largest exporter of rice in the world and second largest producer of rice.

The shortage of rice is a global issue since production of rice has declined to a 25 year low. The move by India government is expected to raise the price of rice further in the global market.

Rising rental, tax and salaries are forcing Indian IT companies to look for cheaper countries.

Real estate prices have shot up drastically, thereby increasing the rental values. With regards to corporate taxes, countries like Singapore, Malaysia and many African countries have favorable tax regime. While the corporate taxes in India remains very high. The salaries of professionals has also increased at a fast rate.

India's Tata motors has bought luxury car brands marques Jaguar and Land Rover from Ford motors. Tata will be paying $2.3 billion in this all cash deal. The negotiations for the takeover has lasted over 9 months.

Tata, India's biggest vehicle maker will now employ about 16,000 staffs of Jaguar and Land Rover.

The rising crude oil prices has forced Reliance to shut down its retail petroleum outlets. Reliance that operates around 1400 retail outlets has said that lack of Government subsidy and the rising oil prices has forced it to take the decision.

Per the sixth pay commission recommendations Central government employees are to get hike in the range of 40 percent. Justice B N Srikrishna, who heads the commission, submitted its report to Finance Minister P Chidambaram today morning. The sixth pay commission recommendations will cost Rs 12,561 crore to the government this year.

The commission is a panel set up by Government of India every decade to determine the salaries of government employees. This is the sixth pay Commission to be set up by Government of India after independence.

According to the new proposal, United States prohibits employers from filing multiple H-1B visa applications for the same employee.

In a statement issued, the US Citizenship and Immigration Services said "To ensure a fair and orderly distribution of available H-1B visas, USCIS will deny or revoke multiple petitions filed by an employer for the same H-1B worker and will not refund the filing fees submitted with multiple or duplicative petitions".

These changes are expected to ensure a fair and orderly distribution of available visas.