Clariant AG: Clariant further improves profitability based on better demand and reduced cost base

July 30, 2010 By Leave a Comment

Clariant AG / Clariant further improves profitability based on better demand and reduced
cost base processed and transmitted by Hugin AS. The issuer is solely responsible for
the content of this announcement.

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Q2 sales up 20% in local currencies and 18% in CHF as global economic activity continued
to rebound year on year

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Q2 operating income before exceptional items rose to CHF 211 million compared to CHF 69
million a year ago and CHF 183 million in the first quarter, mainly driven by higher
sales volumes

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Q2 operating income margin before exceptional items reached 11.1% compared to 4.3% a
year ago

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Q2 cash flow from operations amounted to CHF 33 million from CHF 184 million in the
previous year given a volume-related temporary increase in inventories and trade
receivables

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Outlook: Against the backdrop of an anticipated softening of the global economy,
Clariant expects lower sales growth in the second half of the year with demand remaining
solid. Clariant guides for sales growth in the high-single digit percentage range and an
operating margin before exceptionals for the full-year above 8%.

CEO Hariolf Kottmann commented: “In the first half of 2010 the economic tailwind
leveraged the results of our restructuring program. Consequently we recorded a good
operating income before exceptionals and a strong cash flow. We maintained our good cost
position and further reduced our debt. For the second half of the year we predict a
softening in demand compared to the first half as a result of a weaker economy and the
traditional seasonal effects of our businesses. Until the end of the year we will
continue with our focus on restructuring with the expected impact of restructuring costs
on our net income. All in all we expect a satisfactory year 2010 for our company. ”

Key Financial Data

Second quarter First half year
in CHF million 2010 2009 % CHF % LC 2010 2009 % CHF % LC
Sales 1’894 1’609 18 20 3’711 3’213 15 18
EBITDA before exceptional items 264 125 111 121 499 168 197 206
– margin 13.9% 7.8% 13.4% 5.2%
EBIT before exceptional items 211 69 206 218 394 56 604 626
– margin 11.1% 4.3% 10.6% 1.7%
EBIT 124 0 – – 198 -68 – –
Net income / loss 25 -61 – – 35 -152 – –
Operating cash flow 33 184 192 340
Number of employees 17’2681 17’5362

1 as of 30 June 2010 2 as of 31 December 2009

Clariant Q2, 2010 Performance

Muttenz, July 29, 2010

-Clariant, a world leader in specialty chemicals, today announced sales of CHF 1.894
billion in the second quarter 2010, compared to CHF 1.609 billion in the previous year.
Sales increased 18% in Swiss Francs and 20% in local currency.

Volumes were up 20% over an extremely weak second quarter 2009, but remained
significantly below pre-crisis levels. On the back of a broad economic recovery,
Clariant reported sales growth across all businesses and regions. The Business Units
Pigments, Additives, Leather and Masterbatches benefited the most from the improved
economic environment and grew above group average.

Against the backdrop of the depreciation of the Euro against the USD and an increased
competitiveness, demand in Europe developed better than expected compared to the low
basis year on year, which resulted in a strong 22% sales growth for Clariant. Demand in
the regions Asia, Latin and North America increased as well, favorably affecting the
company’s sales volumes.

Clariant significantly improved the gross margin to 28.9% from 24.8% year on year, based
on good capacity utilization. Sequentially, the company increased sales prices by 1% in
order to respond to a 4% uptake in raw material costs. However these price increases
have not been sufficient yet to fully compensate for the feedstock markup and will be
intensified in the coming months in particular as raw material costs are predicted to
further increase.

Despite the negative margin squeeze Clariant managed to keep the gross margin stable
sequentially also due to a favorable development of exchange rates and higher volumes.

As part of its Global Asset Network Optimization (GANO) efforts Clariant continued to
improve the structure of its production facilities and decided to relocate the Pigments
site in Tianjin (PR China) – as part of the consolidation of the Pigments activities in
China – and to close Pigments production in Onsan (South Korea). Both sites will have
stopped their operations in 2010/11. At the same time the investment in a new
ethoxylation plant in Dayabay (PR China) is proceeding as planned. The site will go on
stream in early 2011.

As a result of the ongoing focus on cost reduction, SG&A costs decreased to 16.3% of
sales, compared to 18.6% a year ago. In absolute terms, SG&A costs slightly increased to
CHF 309 million, from CHF 299 million year on year, due to one time costs resulting from
the restructuring projects and necessary IT upgrades. Personnel costs further decreased.

Consequently the operating income (EBIT) before exceptional items increased to CHF 211
million, compared to CHF 69 million a year ago and CHF 183 million in the first quarter
of 2010. The EBIT margin before exceptional items improved to 11.1% from 4.3% a year
ago.

Restructuring and impairment costs amounted to CHF 87 million. However, the favorable
development of the operating result could more than offset the restructuring costs.
Hence Clariant reported a net profit of CHF 25 million for the quarter, compared to a
net loss of CHF 61 million a year ago.

As a consequence of the pick-up in business activity, inventories and trade receivables
were significantly higher than in the second quarter of 2009 that had marked the peak of
the economic crisis. Nevertheless cash flow from operations remained positive at CHF 33
million compared to CHF 184 million in the second quarter of previous year based on
decisive net working capital management and good EBIT generation.

The company’s cash position – including an investment of CHF 382 million in short-term
deposits – remained strong at CHF 1’221 million.

Clariant continued to reduce its net debt to CHF 379 million from CHF 545 million at the
end of 2009. The gearing – net debt divided by equity – improved to 20%, compared to 29%
by year-end 2009 and remained stable compared to the end of the first quarter 2010.

Outlook

Although demand will remain solid in the remainder of the year, Clariant expects a
weaker second half-year as the global economy is expected to soften and the normal
seasonality of its businesses returns in 2010. In addition, raw material costs are
expected to rise further.

In the second half-year, Clariant will continue to focus on generating cash, decreasing
costs and reducing complexity, which will result in an additional reduction of job
positions. The ongoing restructuring program will be finalized by the end of the year
and the company will be managed for profitable growth as of 2011. However some of the
measures – in particular related to the GANO activities – will not be completely
implemented before 2013.

Based on the good results in the first half of the year and the continuing restructuring
efforts, Clariant aims for a high single digit sales growth in local currency and an
EBIT margin before exceptionals of above 8% for the full year. The cash flow from
operations will remain strong.

Clariant confirms its target of a sustainable, above-industry-average return on invested
capital (ROIC) by the end of 2010.

Contacts

Media Relations

Stefanie Nehlsen Phone: +41 61 469 67 42
E-Mail: stefanie.nehlsen@clariant.com
Arnd Wagner Phone: +41 61 469 61 58
E-Mail: arnd.wagner@clariant.com

Investor Relations

Ulrich Steiner Phone: +41 61 469 67 45
E-Mail: ulrich.steiner@clariant.com

Clariant – Exactly your chemistry.

Clariant is a global leader in the field of specialty chemicals. Strong business
relationships, commitment to outstanding service and wide-ranging application know-how
make Clariant a preferred partner for its customers.

Clariant, which is represented on five continents with over 100 group companies, employs
around 17,300 people. Head-quartered in Muttenz near Basel, Switzerland, it generated
sales of CHF 6.6 billion in 2009. Clariant is organized into ten Business Units:
Additives; Detergents & Intermediates; Emulsions; Industrial & Consumer Specialties;
Leather Services; Masterbatches; Oil & Mining Services; Paper Specialties; Pigments; and
Textile Chemicals.

Clariant is committed to sustainable growth, which is derived from its own innovative
strength. Clariant’s world-class products and services play a key role in its customers’
manufacturing processes and add value to their end products. The company’s success is
based on the know-how of its people and their ability to identify new customer needs at
an early stage and to work together with customers to develop innovative, efficient
solutions.

www.clariant.com

HUG#1434582

Financial Review Q2 2010 http://hugin.info/100166/R/1434582/380143.pdf
Media Release Deutsch http://hugin.info/100166/R/1434582/380142.pdf
Media Release English http://hugin.info/100166/R/1434582/380141.pdf

— End of Message —

Clariant AG
Rothausstrasse 61 Muttenz 1 Switzerland

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Factbox: Five facts about Germany’s “Love Parade”

July 26, 2010 By Leave a Comment

- The Love Parade has been called the world’s largest techno dance party. It started in West Berlin in 1989 just four months before the Berlin Wall collapsed as a demonstration for peace, tolerance and understanding through love and music.

– The event is now held against a backdrop of electronic dance music such as House, Trance and Techno, flamboyant outfits and energetic dance moves.

– It was held almost annually in Berlin between 1989 and 2006, attracting more than one million participants. It moved to the western German Ruhr region in 2007.

– During the 1990s it was heralded as one of Berlin’s biggest attractions after the Berlin Wall fell.

– More than one million music lovers from around the world regularly crowded into Berlin for a six-km (four-mile)-long gyrating party fueled by dance, drink and drugs.

– Internationally, similar Love Parades have taken place in Zurich, San Francisco, Mexico City, Acapulco, Vienna, Cape Town, Tel Aviv, Sydney, Santiago, Rio de Janeiro, Oslo and Budapest.

(Writing by Erik Kirschbaum; editing by Myra MacDonald)

Filed Under: International News Tagged With: , , , , , , , , , , , , , , , , , , ,

UPDATE 4-Subdued AgBank debut dampens China fundraising outlook

July 16, 2010 By Leave a Comment

SHANGHAI, July 15 (Reuters) – Agricultural Bank of China’s (601288.SS) record $22 billion IPO made a lacklustre debut in Shanghai, underscoring the challenges ahead for China’s markets as other big banks look to tap investors for billions of dollars.

AgBank’s listing completes its transformation from technical insolvency to a sprawling giant with assets of close to $1.4 trillion as of March and a customer base of 320 million, larger than the population of the United States.

However, it comes against the less-than-ideal backdrop of a stock market that has been the world’s second-worst performer this year after Greece, questions over economic growth and rival banks returning to capital markets to supplement their coffers after a state-decreed lending spree last year.

“There’s a lot profit-taking pressure from investors, who are not optimistic about the long-term prospects of China’s economy or the banking sector,” said Liu Jun, analyst at Changjiang Securities in Wuhan.

“The debut reflects worries over slower growth and rising bad loans at Chinese lenders, and continued weakness in the stock may prompt a renewed slump in the overall market.”

AgBank shares were up 0.8 percent to 2.70 yuan ($0.40) in afternoon trade, versus its IPO price of 2.68 yuan.

Analysts surveyed by Reuters had expected the stock to gain about 5 percent or less. The Hong Kong shares (1288.HK) list on Friday and are seen making similarly modest gains.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

For TAKE A LOOK on AgBank [ID:nSGE65307X]

StarMine comparative data r.reuters.com/jan46m

FACTBOX on China's AgBank [ID:nTOE65308J]

Graphic comparing China banks:

link.reuters.com/vah95m

For Reuters Insider clip on China capital raisings:

link.reuters.com/heh67m

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

LOW KEY APPROACH

AgBank, which is aiming to raise a record $22 billion after exercising an overallotment option, took a low-key approach to its listing, not opening the debut ceremony to foreign media.

Chairman Xiang Junbo, a former soldier and scriptwriter, marked the occasion by giving a crystal model of AgBank’s Beijing headquarters to the head of the Shanghai Stock Exchange, who gave Xiang a bronze opening gong in return, live television pictures showed.

Investors around the country watched the debut of the last of China’s “Big Four” lenders to go public closely, looking for signs of whether the beleaguered stock market might find relief after shedding about a fourth of its value so far this year, in part because of jitters over the massive AgBank offering.

At one brokerage in downtown Shanghai, individual investors, many of them retirees, swapped theories on how much the government was controlling the stock market while watching with disappointment as AgBank’s share price failed to take off.

“Apparently, investors think the AgBank IPO was overvalued, and the only reason it isn’t falling is that it’s a political task to keep it above the IPO price,” said Qiu Zhicheng, an analyst at Guosen Securities Co in Shanghai. “This is not good for other banks’ fundraisings going forward.”

However, some retail investors looked to AgBank’s modest day-one performance as a positive sign for the long run.

“A debut like this means the stock price will soon choose a direction, and I think it’s more likely to rise,” said Tony Shu, a lawyer who bought 20,000 shares, worth around $8,000, in the IPO. “I won’t sell AgBank until it reaches 3 yuan, which I think is very possible,” he said.

The lacklustre debut for China’s third-largest bank by assets weighed on other banking stocks, despite encouraging economic data that showed inflation stayed in check in June. The main stock index .SSEC fell 0.3 percent in afternoon trade. [ID:nTOE66D06L] [.SS]

AgBank has about a 5 percent weighting in the index, putting it neck-and-neck with China Construction Bank (CCB) (601939.SS) as the index’s third-biggest component.

A weak performance in its first days of trade could bode ill for upcoming fundraisings by peers including Industrial & Commercial Bank of China (ICBC) (0349.HK)(601398.SS) and Bank of China (3988.HK)(601988.SS), who are returning to capital markets to raise tens of billions of dollars to supplement their capital.

The “Big Four” will have a market capitalisation of roughly $680 billion if AgBank exercises its overallotment options, more than Turkey’s gross domestic product last year.

FUNDRAISINGS IN FOCUS

AgBank’s debut achieved a much smaller price gain than its rival banks, whose shares jumped up to one-third in their first day of trading in Shanghai. After exercising its over-allotment, ICBC raised $21.9 billion in its October 2006 listing, which stands as the world largest IPO to date.

AgBank, founded by Mao Zedong in 1951 and which now has some 441,000 employees in more than 23,000 branches, has said it would grow at a faster pace than its major rivals, reporting on Tuesday a 40 percent jump in first-half net profit.

The bank which was technically insolvent just three years ago and had non-performing loans of around 24 percent. It sold 22.2 billion yuan-denominated shares in Shanghai at the top of an indicated range, while the Hong Kong deal priced in the middle of its original range.

It is expected to pay a total of $248 million in fees to the firms that handled its IPO, the lowest underwriting payout of any of the Big Four.

AgBank sold 40 percent of the Shanghai offering to 27 strategic investors including China Life Insurance (2628.HK) (601628.SS) and China State Construction (601668.SS). They are subject to lock-up periods of 12-18 months.

Eleven cornerstone investors have been selected for its Hong Kong share offering, including Qatar Investment Authority and Kuwait Investment Authority, taking a combined $5.45 billion worth of shares. ($1=6.77 Yuan)

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Experts Explore Emerging Evidence Linking Diabetes and Cancer

June 17, 2010 By Leave a Comment

ALEXANDRIA, VA, Jun 16 (MARKET WIRE) —
A new consensus statement of experts assembled by the American Diabetes
Association and the American Cancer Society reviews emerging evidence
that suggests cancer incidence is associated with diabetes as well as
certain diabetes risk factors and treatments. The new report reviews the
state of science concerning the association between diabetes and cancer
incidence/prognosis; risk factors common to both diseases; possible
biologic links between diabetes and cancer risk; and whether diabetes
treatments influence the risk of cancer or cancer prognosis. In addition,
the report outlines key unanswered questions for future research.

Diabetes and cancer are common diseases that have a tremendous impact on
health worldwide. Epidemiologic evidence suggests that people with
diabetes are at a significantly higher risk of many forms of cancer. Type
2 diabetes and cancer share many risk factors, but potential biologic
links between the two diseases are not completely understood. Moreover,
evidence from observational studies suggests that some medications used
to treat hyperglycemia are associated with either an increased or reduced
risk of cancer. Against this backdrop, the American Diabetes Association
and the American Cancer Society convened a consensus development
conference in December 2009. After a series of scientific presentations
by experts in the field, the writing group independently developed a
consensus report to address important questions: Is there a meaningful
association between diabetes and cancer incidence or prognosis? What risk
factors are common to both cancer and diabetes? What are possible
biologic links between diabetes and cancer risk? And do diabetes
treatments influence cancer risk or cancer prognosis?

For each of these areas, the authors were asked to address current gaps
in evidence and potential research and epidemiologic strategies for
developing more definitive evidence in the future. Below is a summary of
their findings and recommendations.*

– Diabetes (primarily type 2) is associated with an increased risk of
some cancers (liver, pancreas, endometrium, colon/rectum, breast, and
bladder). Diabetes is associated with a reduced risk of prostate
cancer. For some other cancer sites, there appears to be no
association or the evidence is inconclusive.
– The association between diabetes and some cancers may be due in part
to shared risk factors between the two diseases such as aging,
obesity, diet, and physical inactivity.
– Possible mechanisms for a direct link between diabetes and cancer
include hyperinsulinemia, hyperglycemia, and inflammation.
– Healthy diet, physical activity, and weight management reduce the risk
and improve outcomes of type 2 diabetes and some forms of cancer and
should be promoted for all.
– Patients with diabetes should be strongly encouraged by their health
care professionals to undergo appropriate cancer screenings as
recommended for all people of their age and sex.
– The evidence for specific drugs affecting cancer risk is limited, and
observed associations may have been confounded by indications for
specific drugs, effects on other cancer risk factors such as body
weight and hyperinsulinemia, and the complex progressive nature of
hyperglycemia and pharmacotherapy in type 2 diabetes.
– Although still limited, early evidence suggests that metformin is
associated with a lower risk of cancer and that exogenous insulin is
associated with an increased cancer risk. Further research is needed
to clarify these issues and evaluate the possible association of
insulin and other diabetes medications with the risk of cancer.
– Cancer risk should not be a major factor when choosing between
available diabetes therapies for the average patient. For selected
patients with a very high risk of cancer occurrence (or for recurrence
of specific cancer types), these issues may require more careful
consideration.
– Many research questions remain.

“Traditionally there hasn’t been much overlap between research in
cancer and in diabetes,” says Edward Giovannucci, MD, SCD, co-chair of
the consensus report group. “But recently it’s become clearer that there
are fascinating links between the two. Our summary may raise more
questions than provide answers, but we hope that it will spur additional
studies.”

“The vast majority of patients with diabetes need not consider cancer
risk when weighing their diabetes therapy options,” added David M.
Harlan, MD, co-chair of the consensus report group, “Only patients with a
very high risk for cancer occurrence, or re-occurrence, may wish to
carefully consider their options. Even then, the association appears to
exist for some cancer types, and not for others. We have much to learn.”

*Recommendations in this report are solely the opinions of the authors
and do not represent the official position of the American Diabetes
Association or the American Cancer Society

Article: “Diabetes and Cancer: A Consensus Report.” Edward Giovannucci,
MD, ScD; David M. Harlan, MD; Michael C. Archer, MA, PhD, DSC; Richard M.
Bergenstal, MD; Susan M. Gapstur, PhD; Laurel A. Habel, PhD; Michael
Pollak, MD; Judith G. Regensteiner, PhD; Douglas Yee, MD. Diabetes Care,
Published Online: June 16, 2010; Print Issue Date: July 2010.

Diabetes Care, published by the American Diabetes Association, is the
leading peer-reviewed journal of clinical research into one of the
nation’s leading causes of death by disease. Diabetes also is a leading
cause of heart disease and stroke, as well as the leading cause of adult
blindness, kidney failure, and non-traumatic amputations.

The American Diabetes Association is leading the fight to stop diabetes
and its deadly consequences and fighting for those affected by diabetes.
The Association funds research to prevent, cure and manage diabetes;
delivers services to hundreds of communities; provides objective and
credible information; and gives voice to those denied their rights
because of diabetes. Founded in 1940, our mission is to prevent and cure
diabetes and to improve the lives of all people affected by diabetes. For
more information please call the American Diabetes Association at
1-800-DIABETES (1-800-342-2383) or visit www.diabetes.org. Information
from both these sources is available in English and Spanish.

Contact:
Dayle Kern
(703) 549-1500 ext. 2290
dkern@diabetes.org

Copyright 2010, Market Wire, All rights reserved.

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FOREX-Euro up on Spain auction; caution before ECB

June 11, 2010 By Leave a Comment

LONDON, June 10 (Reuters) – The euro rose on Thursday as strong demand at a Spanish debt auction eased concerns about how the country will fund its large debt, but caution before a European Central Bank policy decision capped gains.

Peripheral euro zone government bond yield spreads over German benchmarks narrowed after the auction of new three-year bonds. [ID:nLDE6590T9] [ID:nLDE6590U7] Widening spreads in recent days have weighed on the single currency.

But traders said market players were wary of taking on long euro positions ahead of the ECB decision, with option expiries at $1.20 and $1.21 later in the day also helping to confine the single currency within a $1.20-$1.21 range.

Technical analysts said the euro’s downward trend would remain intact barring a move above $1.2135, the 50 percent retracement of the 2000-2008 euro rally.

The ECB is expected to hold rates at 1.00 percent. It could offer extra funds to banks to ease strains from the euro zone debt crisis, and bank chief Jean-Claude Trichet will be pressed for details of its bond-buying programme. [ID:nLDE6560K2]

“The ECB decision is all about event risk,” said Gavin Friend, currency strategist at nabCapital. “It is difficult to see anything positive coming out of it, although the mood is likely to be set by the broader market backdrop.”

“The Spanish auction has cemented euro support a little. It adds to the story that the euro may be due a bit of a bounce as it has come a long way down in a relatively short space of time,” he said.

At 1005 GMT, the euro was up 0.6 percent against the dollar EUR= at $1.2052, above Monday’s four-year low of $1.1876. Traders said investors were tending to sell on rallies towards $1.21, but a break above $1.21 could see the euro extend gains.

Severe debt problems in a number of euro zone countries, coupled with concerns about the future of the euro have caused the currency to fall around 16 percent against the dollar since the start of the year.

Against the yen, the euro rose 0.1 percent to 109.50 yen EURJPY=R. The dollar was down 0.2 percent at 91.04 yen JPY=, staying above its 200-day moving average at 90.90 yen.

ECB AWAITED

The ECB’s decision is scheduled for 1145 GMT, with Trichet’s accompanying news conference at 1230 GMT.

“If they continue to buy bonds that may be seen as positive, but on the other hand they haven’t succeeded so far in stabilising yields,” said Antje Praefcke, currency strategist at Commerzbank in Frankfurt.

The Bank of England announces its policy decision at 1100 GMT with no change to interest rates expected. [BOE/INT]

Earlier, Dai Xianglong, chairman of $114 billion China’s National Social Security Fund, said the euro would gradually stabilise and the U.S. fiscal deficit remained a big concern, which helped lift the euro back above $1.20.

The comments came as a relief as some in the market have said the euro zone debt crisis could prompt central banks, including China’s, to cut their euro reserves.

The euro was also helped by China confirming exports jumped 48.5 percent in May from a year earlier, which buoyed shares and riskier currencies. [ID:nTOE65605K]

The Australian dollar rose 1.7 percent against the U.S. dollar AUD=D4, buoyed by strong Australian jobs data, while a rate rise in New Zealand dollar lifted the Kiwi 1.6 percent versus the U.S. dollar NZD=D4.

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Cameron says Britain must heed Greek warning

June 8, 2010 By Leave a Comment

MILTON KEYNES, England, June 7 (Reuters) – Prime Minister David Cameron told Britons on Monday the scale of the country’s budget problems was even worse than he had anticipated and cited crisis-hit Greece as an example of the risk of failing to act.

Cameron painted a bleak backdrop two weeks ahead of an emergency budget on June 22 in which his coalition government will give more details of measures to cut a deficit running at 11 percent of national output.

Giving few details of where cuts will come, he attacked the previous Labour government for economic mistakes over the past decade that he said had left the legacy of a debt crisis.

“Greece stands as a warning of what happens to countries that lose their credibility, or whose governments pretend that difficult decisions can somehow be avoided,” Cameron said in a speech in Milton Keynes, central England.

“I want to set out for the country … why the overall scale of the problem is even worse than we thought,” he said, adding that the structural nature of the debt meant “a return to (economic) growth will not sort it out”.

Cameron said the public sector had grown too large under Labour. If no action were taken, within five years its debt-servicing costs would be more than it spends on schools in England, climate change and transport combined.

“Based on the calculations of the last government, in five years’ time the interest we are paying on our debt, the interest alone is predicted to be around 70 billion pounds ($101 billion). That is a simply staggering amount.” [ID:nCAM070610]

G20 SUPPORT

Cameron said the weekend summit in South Korea of the Group of 20 leading economies had endorsed the steps taken by Britain. The government, which took office last month, has already trimmed six billion pounds in costs to start to reduce a deficit that reached 156 billion pounds in the financial year to April.

In opposition, Labour has warned that cuts planned by the coalition risks killing off a fragile economic recovery and throwing Britain into a double-dip recession.

Cameron acknowledged the cuts to come would hurt a government still enjoying something of a honeymoon with voters.

“This is fraught with danger. This is a very, very difficult thing we are trying to do,” he said in answer to questions at distance learning institute the Open University.

Cameron heads Britain’s first coalition government since 1945, his centre-right Conservatives having teamed up with the smaller Liberal Democrats after last month’s election.

Flanked by Lib Dem Treasury minister Danny Alexander, Cameron said the coalition would make it easier to win over the public, saying there were “two parties together facing up to the British people.”

Economist Alan Clarke of BNP Paribas said it was natural for a new government to lay the blame for ills at the door of its predecessor and that the message for the budget was clear.

“Fiscal tightening, spending cuts and tax increases are going to bear down on growth and disposable income. It’s going to hold back growth which is going to hold back inflation. It’s not going to be pleasant for anyone,” Clarke said.

Finance minister George Osborne and Treasury number two Alexander will present on Tuesday the framework for a spending review this year.

The Treasury is expected to consult on the spending review with the private sector, voluntary organisations, trade unions and the general public. (Additional reporting by Matt Falloon, Tim Castle and Peter Griffiths; Editing by Ruth Pitchford)

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Centre to crack down on Karnataka mining mafia: Handique

June 6, 2010 By Leave a Comment

With the Karnataka government rejecting suggestions for a CBI probe, the Union Mines Ministry is pursuing other moves to crack down on the mining mafia in the state.

In the face of the Karnataka government’s resistance to a CBI probe, the matter was referred to the Cabinet and the issue was discussed in the Prime Minister’s office, Mines Minister B K Handique said. One of his concerns was whether any money from illegal mining was going to terrorists and the issue was discussed at the PMO.

Asserting that the “crackdown” on illegal mining was on the top of his agenda, Handique said that at present there were not enough legal provisions for central intervention and he would make attempts to incorporate provisions for this in the proposed Mining Act.

“There were discussions at the PMO level (on illegal mining). It would be tracked down. If money goes to terrorists, then licenses will be cancelled. It is a big thing. With NIA (National Investigation Agency) now, things are moving,” he said.

“We thought that CBI will be the right approach. But we can’t enforce it. We have given it to Cabinet now. We have asked them (their help) for investigation,” he said.

Asked to elaborate, he said that there was a provision in the law governing NIA and the Home Ministry may be on the path of tracking where the money was going. “They have been consulting us also on this,” he added.

Handique said the problem of not having adequate provisions in the law now was also discussed with Law Minister Veerappa Moily. “With Moily, we have discussed. We have discussed this with Chidambaram also. He had organised a meeting.”

Handique’s insistence on a probe and action in Karnataka comes against the backdrop of allegations of illegal mining by the Reddy brothers, who are ministers in the Karnataka government.

The current moves come at a time when Karnataka Governor and former Union Law Minister H S Bharadwaj has decided to refer to the Election Commission a complaint seeking disqualification of three ministers, including G Janardhana Reddy and his brother and Revenue Minister G Karunakara Reddy, from the state assembly.

Hitting out at the state government, Handique said, “Illegal mining is a dent on the industry… They (Karnataka government) don’t give (permission for CBI probe). They say without CBI enquiry we can control. We (Centre) cannot take any action. It is a criminal act.”

Admitting that he faced severe political pressure in his crusade against illegal mining, Handique said, “Many MPs have come to me…. (it is a) sensitive area, no doubt about it.”

He said the proposed legislation would ensure that anybody can file a case against illegal mining, contrary to the provisions in the existing MMDR Act, under which only state government officials have the powers.

Karnataka is one of the mineral rich states in India with about 11 percent f the country’s hematite iron ore reserves. It has over 9,000 million tonnes of iron ore resources concentrated in the Bellary-Hospet area, while the rest is found in the Chitradurga, Bagalkot and Tumkur districts.

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Businesses tipping slower September quarter

May 12, 2010 By Leave a Comment

The latest National Business Expectations Survey from Dun and Bradstreet suggests the Reserve Bank’s interest rate rises are helping to contain price inflation.

The survey of 1,200 business owners and senior executives shows many are expecting slower growth in selling prices, sales, employment and inventories during the September quarter compared to the June quarter.

The research from Dun and Bradstreet also shows one-third of those surveyed named interest rates as the primary influence on their business.

Dun and Bradstreet chief executive Christine Christian says if prices do fall or at least remain steady, that would reduce the need for more interest rate increases.

“The decline in selling price expectations is a sign there may be some easing of inflationary pressures as firms respond to the impact of rising interest rates,” she said.

“Given that the RBA has listed rising selling prices as a key trigger for interest rate rises, this may reduce the need for further immediate action.”

Ms Christian says businesses have been extremely resilient during the economic recovery, but there may be some challenges in the months ahead.

She says many sections of the business community are still struggling to get finance.

“The overall outlook for Australian executives remains positive and was substantially better than at the same point in time in 2009,” she said.

“I think with the backdrop – particularly in the US and the UK – the question now is how long will this positive outlook continue.

“Despite some of the statements that have been coming out of both Government and the banking sector … there is still some concern by businesses that their future growth is being hampered by these very tight credit policies.

“In fact, 21 per cent of firms had less access to credit in the last quarter.”

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Raveena Tandon makes comeback with a woman-oriented film

May 11, 2010 By Leave a Comment

Mumbai, May 11 (ANI): Bollywood actress Raveena Tandon is all set to make her comeback in Bollywood with a woman-oriented film titled ”Agni – The Fire”.

Directed by Rajeev Walia, the movie also stars newcomers Jeetendar Modi, Archana Gupta and Eva Grover.

Producer V. Kumar appeared pleased with Tandon”s return, as he said the actress has returned with a more appealing personality, which can do justice to her character.

“The movie that we were making, we felt that compared to Raveena in her earlier films, now she has come back with a better personality. So we thought of casting her as she can do justice to the character she is playing in the film,” said V. Kumar.
The official launch of the film, which is set in the backdrop of rural Rajasthan, took place in Mumbai on Monday.

The National Award-winning actress is back to pursuing her acting career after her marriage with film distributor, Anil Thadani, in 2004.

“The story of the film is set in rural Rajasthan. So I have been given the get-up according to that. Although the film is not like ”Godmother”, it is the story of a woman who raises her voice against orthodox traditions,” said Tandon.

In 2002, Tandon won the National Award for Best Actress for her performance in ”Daman” as a victim of marital violence in 2001. (ANI)

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New Zealand mulls sending cricketers for Indian domestic cricket stint eyeing 2011 WC

May 8, 2010 By Leave a Comment

Wellington, May 8 (ANI): New Zealand Cricket is exploring the idea of sending promising players for a stint of Indian domestic cricket and Auckland opener Jeet Raval is one of those who might benefit from playing cricket in India.

New Zealand A or Emerging Players teams have often come to India for tournaments like the Buchi Babu event held in Chennai.

NZC believes that there could be greater benefit accrued by sending individuals rather than teams for matches, the NZ Herald reports.

The backdrop is the preparation for the 2011 World Cup, being hosted by India, Sri Lanka and Bangladesh, which the NZC has discussed in detail.

The New Zealand team’s visit to all three countries has been lined up between July and December this year, which should prove an ideal buildup to the World Cup.

According to the paper, Auckland’s Jeet Raval and Josh Brodie of Wellington would certainly benefit from the experience.

“An emerging youngster spending a couple of months playing club cricket in India might be a better use of resources than just sending a team,” NZC chief executive Justin Vaughan said on Friday.

“We’re trying to be quite selective and individualised in the way of preparing players and in some instances that may need to break the traditional mould of having teams touring. (The benefits of) sending players to the subcontinent for a period would be considerable,” he said.

Vaughan said that New Zealand has struggled in the past to play spin well in the subcontinent, and added that to do well in the World Cup players will have to perform against Harbhajan Singh, Muttiah Muralitharan, or Saeed Ajmal. (ANI)

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CPI-M seeks apology from Trinamool over unparliamentarily language against its leader

May 5, 2010 By Leave a Comment

New Delhi, May 5 (ANI): The Communist Party of India-Marxist (CPI-M) on Wednesday sought an apology from the opposition Trinamool Congress over the alleged derogatory remarks made by its leader Sudip Bandyopadhyay against CPI-M leader Basudeb Acharia inside the Parliament.

“From the very beginning we have seen whenever we try to say anything inside the House, immediately all the Trinamool members shout, and interrupt, disturb so they are doing this thing from very beginning,” said CPI-M leader Basudeb Acharia.

“Strategy, we will ask, request the Speaker to ask him to apologise,” he added.

Meanwhile, CPI-M State Secretary Biman Bose said the Parliament should deal with the matter.

“Actually this issue has to be dealt with by the parliament and the custodian, they are to look after the issue seriously,” said Bose.

Controversial remarks disrupted Parliament on Wednesday leading to adjournments of each of the Lok Sabha and the Rajya Sabha, with an angry opposition seeking an apology.

Bandyopadhyay is in the eye of a storm for his remarks against Acharia inside the Parliament on Tuesday in the backdrop of the motormen”s strike in Mumbai . (ANI)

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CPI (M) Politburo meeting begins today

May 4, 2010 By Leave a Comment

New Delhi, May 4 (ANI): The CPI (M) Politburo would hold a day-long meeting on Tuesday, which would be followed by a three-day session of the party”s Central Committee here.

The prevailing political situation, including assembly polls in Bihar and upcoming elections to local bodies in West Bengal, would be discussed.

The party would also discuss seat sharing arrangements with other parties, including the Left, in the Bihar assembly polls.

The party would also debate foreign policy issues.

Legislations on nuclear liability, women”s reservation, foreign education providers and food security are also likely to be discussed during the meeting.

The meeting comes against the backdrop of the defeat of the Left-sponsored cut motion in the Lok Sabha to demand reduction in prices of petrol, diesel and fertiliser. (ANI)

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Instant View: Hungary’s Fidesz wins 2/3 in next parliament

April 26, 2010 By Leave a Comment

(Reuters) – Hungary’s center-right Fidesz party secured more than two thirds of parliamentary seats in Sunday’s second round of voting, according to preliminary figures from the National Election Committee.

World

ANALYST COMMENTS

GERGELY SUPPAN, TAKAREKBANK

“In the near term markets can give a vote of confidence in the new government but they will have to come out with their plans rather quickly.

“We may see some specific measures already in the days ahead. Some things have already leaked between the two rounds, on the basis of these it is likely that they are serious about halving the number of local government and parliament MPs.

“They apparently also want to clamp down of bureaucracy, but this will take more than one day.

“All this has to be seen against the backdrop that room for maneuver is limited so they will obviously make a push to make it larger, therefore they will pledge to eradicate corruption.

“I think they will come to agreement with the IMF quickly as they have already held consultations.

“Among analysts it is a rather widespread view that they will offer reforms in exchange for bigger room for maneuver, the question is what time frame we are looking at and when they can start.

“There are about 8,000-9,000 tasks performed by the state, they will take more than one day to halve, this is a process that requires months, maybe even years.

“If they start (reforms) quickly, that can trigger a positive market reaction in the longer run as well.

“Near term, there will be a vote of confidence in the new government and then the market will blend into the global environment, it will be driven by themes of Greece and the global recovery.

“If they act quickly, the forint can firm a bit but it must be said that this result was by and large priced in already.”

(Reporting by Sandor Peto)

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Music lovers at Big Chill Fest to bare-all for ‘nude landscape’!

April 1, 2010 By Leave a Comment

London, Apr 1 (ANI): Music lovers heading to the Big Chill Festival this year are being encouraged to strip off.

While Massive Attack and MIA are to headline the festival, artist Spencer Tunick has been commissioned to create a new living masterpiece during the weekend – and is urging volunteers to take part in a mass disrobing.

On stage, R”n”B star Kelis will join the festival, which will be held from August 5 to 8 against the backdrop of Eastnor Castle Deer Park in Herefordshire.

Tunick’s “nude landscapes” will be his first installation at a European music festival.

Volunteers will be instructed to arrive at a specific time and shed their clothing.

Organisers have said that participants” nudity will be handled with “respect and sensitivity”.

Tunick, whose work has been staged in Dublin, New York, Barcelona and at the Sydney Opera House, enlists ordinary members of the public in his projects, putting them at the heart of his artwork.

“For me to be able to create one of my artworks in such a beautiful landscape is a real privilege. I”ve never carried out an installation at a European music festival before. I”m looking forward to doing a fantastical work, celebrating the body at play and interacting with such a unique setting,” the Mirror quoted him as saying. (ANI)

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Headley to cooperate with Indian investigators, says counsel

March 24, 2010 By Leave a Comment

Chicago, Mar 24 (ANI): Lashkar operative David Coleman Headley’s counsel John Theis said here on Wednesday that his client would cooperate with Indian authorities as per terms of plea agreement.

However, Theis said it’s for the US administration to decide when to allow Indian authorities to question Headley.

The terms of plea agreement requires Hedley allows himself to be interviewed by Indian or by any foreign authorities in the US soil.

“Headley will cooperate to the extent it is required to by the terms of his plea agreement but as for the specifics. I think really our government and our US attorney”s office have to be the ones to determine the actual form (of access),” Theis said.

Thesis statement came in the backdrop of the comment by the US Ambassador to India Timothy J Roemer that no decision on direct access for India to Headley has been made.

“He is in US custody and so interviewing him does implicate the security issues and things like that,” Theis added.

Commenting over assurance to Indian investigators, who come to the US that they would get access to Headley, Thesis said:”I”m not the one to ask that. You will have to ask our government, our US attorney”s office. They are the ones who are going to determine how this actually happens”.

Meanwhile, commenting on the issue the Federal Bureau of Investigation (FBI) said that if the Headley has agreed to meet Indian investigators, then the questioning will happen.

“If the plea agreement says that Headley has agreed to meet with investigators from India, then that is what he will do. It is a question of when and where. But I”m sure if that is what he agreed to, that is what will happen,” the FBI spokesperson said.

Earlier, Union Home Minister P Chidambaram, who is in UK tour, reiterated confidence that India would get access to Headley.(ANI)

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Kayani leaves for US to take part in next week’s strategic dialogue

March 20, 2010 By Leave a Comment

Islamabad, Mar.20 (ANI): Pakistan Chief of Army Staff (COAS), General Ashfaq Parvez Kayani has left for the United States to take part in the upcoming strategic dialogue between the two countries on March 24.

During his ‘official’ visit, Kayani is also likely to meet top US military and government officials in Tampa and Washington, The Dawn reports.

Foreign Minister Shah Mehmood Qureshi would head the Pakistani delegation while the Secretary of State Hillary Clinton would represent Washington during the next week’s talks.

In recent months, senior Obama Administration officials have been hailing the close ties with Pakistan, which has acted tough on extremist leaders hiding inside its boundary.

Next week’s strategic dialogue, the first at the ministerial level, takes place in the backdrop of Pakistan’s consistent demands from the US to help it ‘more’ in order to enable it to take on the extremists more effectively in the ‘war on terror’. (ANI)

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India yet to send formal proposal for next round of talks: Pak FO

March 16, 2010 By Leave a Comment

Islamabad, Mar.16 (ANI): Welcoming External Affairs Minister SM Krishna’s statement that the next foreign secretary level talks between India and Pakistan would take place soon, Pakistan Foreign Office spokesman, Abdul Basit has said New Delhi has still not sent any formal proposal for the high level deliberations.

“The statement made by Indian External Affairs Minister, S M Krishna is really encouraging and Pakistan welcomes it but it was his personal desire not the official stance,” Basit told The Dawn.

Basit also stressed that both countries must have a ‘mutual understanding’ while proceeding for further talks.

Earlier, talking to reporters on the sidelines of a function in New Delhi, Krishna had indicated that a team of Indian delegates headed by Foreign Secretary Nirupama Rao might visit Islamabad for the next round of talks.

“We have already taken the initiative. Prime Minister Dr Manmohan Singh is in good faith. Provided the backdrop of having talks at the level of foreign secretary,” Krishna had said.

“The foreign secretary of Pakistan came here, and then, perhaps it is time for the foreign secretary of India to go to Pakistan,” he added. (ANI)

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Website launched for senior citizens by Mumbai police

September 19, 2009 By Leave a Comment

Mumbai, Sep 18(ANI): Mumbai police on Friday launched a website for senior citizens to ensure their welfare in the backdrop of increasing crime rate against them.

The website titled ‘Hamari Suraksha’ was launched by Police Commissioner of Mumbai, D. Shivanandan, in the presence of Bollywood actress Simi Garewal and several senior citizens of Malabar area in Mumbai.

According to D Shivanandan, the website has several features, where senior citizen can register the details of their servants with photograph so that Mumbai Police can record their data.

“This is a better software which is very easy to handle and servants registration is a added feature. They can also put their own picture and put their relatives, friends and various others,” Shivanandan said.

“If they are in any foreign country, and in case we have to provide them any information, we can use the website and inform them. Their relatives from abroad can also ask us to check about the whereabouts of senior citizens and we will be able to help them. Our beat marshals will go and visit if there is a problem,” Shivanandan added.

Several senior citizens present at the launch of the website, appreciated the initiative.

“We don’t have to go to people and beg for information. We can get it on our own laptops. It is very useful and we are very thankful for that,” said Dolly, a senior citizen. (ANI)

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Jagger’s daughter paints herself red, white and blue for hot photoshoot

September 17, 2009 By Leave a Comment

London, Sept 16 (ANI): Rolling Stones star Mick Jagger’s daughter showed off her patriotic colours by painting herself red, white and blue for a hot photoshoot.

The 17-year-old Georgia, youngest daughter of Jagger and Jerry Hall stripped to bra and jeans painted red, blue and white for American denim brand Hudson.

She is seen gracefully reclining on the backdrop of a Union Jack and pouts provocatively at the camera in the photos.

The campaign is Georgia’s first big shoot since being snapped up by a modelling agency last year.

“It’s all about the heritage of having Mick Jagger as a dad and Jerry Hall as a mum,” the Daily Star quoted Hudson spokesman David Lipman as saying

“More than anything, it’s her spirit that captivates me,” he added. (ANI)

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Sharifs soften stance against Musharraf trial under Saudi pressure

September 7, 2009 By Leave a Comment

Islamabad, Sep 7 (ANI): The Sharif brothers and top leadership of the Pakistan Muslim League-Nawaz (PML-N) are believed to have softened their demand for the trial of former President Pervez Musharraf owing to international pressure by his guarantors, including the Kingdom of Saudi Arabia.

Well-placed party sources said that the PML-N central leadership would take the party hierarchy into confidence about the pressure for softening their anti-Musharraf stance and to chalk out the party’s new plan of action to prepare it for next elections at party’s scheduled CEC meeting in Murree on Monday.

Sources attach great importance to Nawaz Sharif’s visit to Saudi Arabia in next few days where apart from performing Umrah he is expected to meet the Saudi high-ups in the backdrop of Musharraf’s recent visit to the Kingdom and his meeting with the King Abdullah.

The Nation quoted sources as saying that Saudi authorities have already conveyed to the Sharifs to take soft stance on Musharraf’s trial as the Kingdom regards him needy for help and cooperation as they were while out of power.

The meeting, sources further said, would discuss and evolve a comprehensive strategy to hold party’s elections but after pushing it through an intense process of restructuring and reorganization at grass root level in all parts of the country.

The CEC meeting would decide about the election timeframe either by the end of this year or early next year.

The meeting would also take host of political issues for consideration including PML-N, PPP relations, law and order situation in Balochistan, fate of Local Bodies and implementation of Charter of Democracy by the PPP-led coalition government, they added. (ANI)

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