Information Bite
by Prahasi Paper Pvt Ltd - [private circulation. Weekly Newsletter] - email: information.bite@gmail.com
“If you can’t be the sun, don’t be a cloud.”
US is still not over the Tide
In early 2006, economist Nouriel Rou-
bini broke rank from the prevailing consensus
opinion and blew the whistle on the US hous-
ing bubble and held out grim warnings of a US
‘recession’.
Roubini said, “I’m not sure why the others
didn’t see it... With a bubble, there’s always
wishful thinking, and people believe it will go
on forever.”
Today, the consensus opinion grudging-
ly concedes that the US economy is tottering
on the brink of a recession, but comforts itself
with the hope that it will be “short and shal-
low”. It draws solace from US GDP figures for
the first quarter of 2008, which recorded 0.6%
growth.
The US housing recession - the worst
since the Great Depression — “is nowhere
near the bottom, and US home prices will fall
for another two or three years.” And, worse,
he notes, it’s effect has spread to the rest of
the economy.
But the markets are still in denial,
says Roubini. “Until March 2008, the (US)
markets were reacting negatively, but since
then there’s been a bit of a rally. I call this a
bear market sucker’s rally, born of the hope
that the US Federal Reserve Board’s policy of
monetary easing will prevent a recession or at
least make it a shallow one.” But when people
realise that the real economy is contracting,
there will, he warns, be “more severe down-
turns in the equity market”.
In Roubini’s estimation, the US recession
will last 12 to 18 months - and it will have
a contagion effect in Europe and in Asia as
well.
“If the US recession were short and shallow,
the slowdown in Asia may have been modest.
But conditional on a severe US recession, we
VOL. 1 ISSUE 38 Weekly
Change
10th May, 2008
16,707 q 4,975
4975 q 253
Inflation rises to 7.61 per cent for the week ended
April 26, against 7.57 in the previous week. infla-
tion continued to remin at its 42 month high
will see an economic contraction in Japan, and
a recession in some parts of Europe... And if
most of the advanced economies are in reces-
sion or growing weakly, the negative effect on
Asia - in terms of trade and financial conse-
quences - will be severe,” he says. There will
be a “significant slowdown of growth - more
than the markets are pricing in this part of the
world.”
Beneath the US first-quarter GDP figure -
of a 0.6% growth - “the details are ugly and in
fact confirm that the US is in recession,” says
Roubini.
That’s because inventories of unsold
goods added an artificial 0.8% to growth.
“If that’s taken away, the actual aggre-
gate demand - the actual measure of growth
of true demand - fell in the quarter to minus
0.2%. And the build-up of inventories means
the fall in GDP in the second quarter will be
larger than otherwise as firms will have to re-
Do you Know?
Standing at 553 metres, the CN
Tower in Toronto is currently
the world’s tallest freestanding
structure.
 duce that large inventory of unsold goods via a further reduction in production and employment…”

Roubini believes that the Fed, which called a pause to its policy of monetary easing, may have to
lower interest rates further, of which chances are quite high.

“Japan waited almost two years in the 1990s after its asset bubble collapsed to ease monetary policy
and provide a fiscal stimulus, whereas in the US both steps came early.”

safe and ideal investment options sugested by noble broking house

Date Script BUY TARGET STOP Booked CMP NOTES:

LOSS
10th April HELIOS 66.00 150 - - 77 3 to 4 mths
10th April GSPL 65.00 75 56 - 68.70 1 - 2 Wks
21st April DISH TV 60 100 - - 58.40
23rd April NIIT 139 165/180 121 - 151 2-3WKS
24th April APTECH 257/258 275/291 251 - 264 1MTH

A cumulative profit in the month of April from our calls given in this
section is Rs. 30,100 considering you have bought 100 shares of each call.
A return of 80%!!

The above mentioned investment were suggested by us during the last week. We are also currently following
those scripts in PMS maintanced by us. Editor

Who was the first

international cricketer to carry commercial sponsorship on his bat?

a. Sachin Tendulkar b. Mathew Hayden c. Adam Gilchrist

T i c k l e Yo u r B r a i n
 DLF seeks approval for $150 m FDI:
News
Country’s largest realty firm DLF, which has tied up with Dubai-based develop-
bite er Limitless for developing Rs 60,000-crore township in Bangalore, has sought
Government approval for bringing in foreign direct investments worth $150
million. However, the foreign investment proposal would be given
the final clearance by the Finance Minister, P Chidambaram.
Limitless, a part of Dubai World Company will initially bring $150 million as equity to part
finance the project, market sources said. DLF plans to develop a huge integrated town-
ship spread over 9,178 acre on the outskirts of Bangalore at an estimated investment of
up to Rs 60,000 crore over the next seven years.
The project was awarded to DLF, following a global tender issued by the Bangalore
Metropolitan Regional Development Authority (BMRDA). The township, which would be positioned as
New Bangalore, will be developed at about 30 km from the city of Bangalore and 15 km from Mysore.

Jet Airways plans to expand

fleet by 40 percent:

Jet Airways Ltd, India’s top carrier by market

share, said on Wednesday it plans to expand its
fleet by 40 per cent to 117 planes in the next three
years. The carrier, which flies to 60 destinations,
launched a new route from its base in Mumbai to
Bangkok on Wednesday. The carrier currently has
a fleet of 81 planes, including 10 Boeing 777-300
ER aircraft, eight Airbus A330-200 and 9 Avions
de Transport Regional, or ATR, turboprops. The
average age of its planes is 4.3 years. Jet, which
competes with carriers such as Air India, Kingfish-
er Airlines and Singapore Airlines, launched New
Delhi-Bangkok and Kolkata-Bangkok routes last
year using Boeing 737-800 planes.
The airline, which bought budget operator
Sahara Airlines in April last year for 14.5 billion
India rupees and renamed it JetLite, is also plan-
ning to launch an international low-cost carrier in
Southeast Asia.
In its stepped expansion of its fleet, Jet Air-
ways plans to have 92 planes by March 2009, 106
by March 2010 and 117 by March 2011.

Tyre makers may up prices again in 2 months:

Indian tyre makers are likely to raise prices again in about two months to combat increasing input
costs due to a spike in rubber prices, industry officials said. Earlier this month, major tyremakers such as
Ceat and JK Tyre had raised product prices by 5 percent, while MRF increased it by 2 percent.
Rubber prices, which make up 60 percent of the cost of tyres, have risen more than 22 percent in
2008, according to Rubber Board data. Natural rubber rose on a tight supply, while high crude oil prices
pushed up synthetic rubber.
“We are hoping that in one to two months prices will have a sobering impact but if that does not hap-
pen, we will have to go up again, there is no choice”, Ceat’s managing director, Paras Chowdhary, said.
Raising prices in another couple of months is on the horizon for JK Tyre & Industries along with
CEAT.
India produced 825,000 tonnes in 2007-08, below an earlier forecast of 874,000 tonnes, dented by
a July-Sept shortfall on heavy rains and a viral fever which affected tappers. However, tyre dealers said
the companies tended to be opportunistic about price increases and did not cut prices when rubber prices
came down.
“They are just looking at their profits...when cost goes down they don’t reduce prices,” said S.P. Singh,
convenor of the All India Tyre Dealers’ Federation. “They usually hike prices quietly two- three times
in a year. They don’t revert it back normally, unless auto companies start making noise about it,” said An-
gel Broking analyst Girish Solanki.
 Environment Minister Joan Ruddock said:
Britons waste food “These findings are staggering in their own right,
worth 10 bn pounds: but at a time when global food shortages are in the
headlines this kind of wastefulness becomes even
The cost of wasted food in UK households is more shocking”.
10 billion pounds a year, nearly two billion She added, “What shocked me the most was the
pounds higher than previously estimated, accord- cost of our food waste at a time of rising food bills,
ing to a new research by the Waste & Resources and generally a tighter pull on our purse strings.”
Action Programme (WRAP). For example, each day 1.3 million unopened
The research gives detailed new insights into yoghurt pots, 5,500 whole chickens and 440,000
the nature and amount of food waste thrown away ready meals are thrown away in the UK.
in the UK and is believed to be the most compre- Stopping the waste of good food could avoid
hensive study of its kind ever carried out. 18 million tonnes of carbon dioxide equivalents
The research found that salad, fruit and bread from being emitted each year, the research found.
were most commonly wasted and 60 per cent of all “And there are climate change costs to all of
dumped food was untouched. It revealed that the us of growing, processing, packaging, transporting,
average household throws out 420 pounds of good and refrigerating food that only ends up in the bin.”
food a year. For the average family with children it
is higher at 610 pounds. WRAP helps individuals, businesses and
Researchers also found that more than half local authorities to reduce waste and recycle more,
the good food thrown out, worth 6 billion pounds making better use of resources and helping to
a year, is bought and simply left unused or un- tackle climate change
touched.

!!COMBOLA!!
About the game:
COMBOLA is based on the lines of the very famous Tambola. The twist here is that we have replaced
numbers with company names.
Starting from the 19th of May 2008 we will be calling 5 names daily till the 31st of May 2008.

WHAT DO YOU HAVE TO DO?

You will have to strike out the names called on each day if they are present on your ticket.
For example: You have JP HYDRO, IFCI, Reliance Ind and so on your ticket.
If the names called are RPL, RNRL, Helios, IFCI & Suzlon, you will strike out only IFCI since only IFCI is
on your ticket.
Now the most inportant question.....WHAT WILL YOU GET??

The first person to strike out all the names on his/her ticket and call us to inform us will be de-
clared the winner. The winner will receive a gift voucher from WESTSIDE.
your ticket has been attached. incase you dont receive it, contact us immediatly to get a copy.
!!ALL THE BEST!!
Tickle Answer:
C

SUMIRAJ REALTY INCORP, PUNE

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Disclaimer: This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Persons into whose possession
this document may come are required to observe these restrictions. Investing or trading in stock markets is a high risk activity. Those who cannot afford to risk their money should refrain from dealing in stocks. The
author has no vested interest in any of the stocks mentioned. He and/or his close associates may or may not be having positions at the time of preparing this document.
It is to be understood clearly that the articles have been written purely for informative purposes only and the author cannot take any responsibility whatsoever for transac-
tions, if any, entered into by the reader.
The author does not guarantee that the projected targets will be achieved.