General Affairs
Engaging With Pak 'To Try And Turn Course of History': PM Modi
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KOCHI: Prime Minister Narendra Modi today said resumption of talks with Pakistan was to "try and turn the course of history" and to bring an end to terrorism but made it clear that the neighbouring country would be judged by its commitment on terrorism.
PM Modi also asserted that India will never drop its guard on security as he admitted that there are many challenges and barriers on the path.
Speaking to India's top military commanders on board the country's largest aircraft carrier INS Vikramaditya, he said "we are engaging Pakistan to try and turn the course of history, bring an end to terrorism, build peaceful relations, advance cooperation and promote stability and prosperity in our region."
PM Modi said," There are many challenges and barriers on the path. But the effort is worth it because the peace dividends are huge and the future of our children is at stake."
This is the first time that PM Modi has spoken on the relations with Pakistan after the two countries announced the re-engagement under bilateral comprehensive dialogue last week.
The announcement came after PM Modi had met his Pakistani counterpart Nawaz Sharif on the sidelines of the climate change summit in Paris on November 30 where the two also agreed to hold National Security Advisor (NSA)-level talks.
"But ours is a difficult neighbourhood with the full spectrum of security challenges. We see terrorism and ceasefire violations, reckless nuclear build-up and threats, border transgressions and continuing military modernization and expansion. The shadow of West Asian instability is becoming longer," he said.
PM Modi said that India is also pursuing closer relations with China to harness the full potential of the country's economic partnership.
"We will continue to strengthen our defence capabilities and infrastructure, engage our neighbours more closely and strengthen our regional and global partnerships, including in maritime security," he said.
PM Modi said that old rivalries can play out in new theatres such as space and cyber.
"And new technologies offer us new ways to be more effective against both traditional and new challenges," he said adding that "we in India must be ready for the present and prepare for the future."
The Prime Minister stressed that "one should learn from the experience of the others, but must frame our systems and commands on our own genius."
"Our National Defence University will be a reality soon," he said adding that "we also need reforms in senior defence management."
KOCHI: Prime Minister Narendra Modi today said resumption of talks with Pakistan was to "try and turn the course of history" and to bring an end to terrorism but made it clear that the neighbouring country would be judged by its commitment on terrorism.PM Modi also asserted that India will never drop its guard on security as he admitted that there are many challenges and barriers on the path.
PM Modi said," There are many challenges and barriers on the path. But the effort is worth it because the peace dividends are huge and the future of our children is at stake."
This is the first time that PM Modi has spoken on the relations with Pakistan after the two countries announced the re-engagement under bilateral comprehensive dialogue last week.
The announcement came after PM Modi had met his Pakistani counterpart Nawaz Sharif on the sidelines of the climate change summit in Paris on November 30 where the two also agreed to hold National Security Advisor (NSA)-level talks.
"But ours is a difficult neighbourhood with the full spectrum of security challenges. We see terrorism and ceasefire violations, reckless nuclear build-up and threats, border transgressions and continuing military modernization and expansion. The shadow of West Asian instability is becoming longer," he said.
PM Modi said that India is also pursuing closer relations with China to harness the full potential of the country's economic partnership.
"We will continue to strengthen our defence capabilities and infrastructure, engage our neighbours more closely and strengthen our regional and global partnerships, including in maritime security," he said.
PM Modi said that old rivalries can play out in new theatres such as space and cyber.
"And new technologies offer us new ways to be more effective against both traditional and new challenges," he said adding that "we in India must be ready for the present and prepare for the future."
The Prime Minister stressed that "one should learn from the experience of the others, but must frame our systems and commands on our own genius."
"Our National Defence University will be a reality soon," he said adding that "we also need reforms in senior defence management."
PM Modi Visits Sivagiri Mutt In Varkala, Pays Tribute To Narayana Guru
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VARKALA: Prime Minister Narendra Modi today visited the Sivagiri Mutt, a revered spiritual centre established in by the renowned 20th century saint-social reformer Sree Narayana Guru, and paid respects at his samadhi.
Accompanied by a group of sanyasins of the mutt, Mr Modi spent about a few minutes at the Sivagiri hillock, located around 50 kms away from Thiruvananthapuram, and offered obeisance at the 'maha samadhi mandapam', the final resting place of the legendary Guru.
The prime minister also touched the feet and took the blessings of swami Prakashananda, Sree Narayana Dharma Sangham Trust president and the senior most swami of the mutt.
In a brief speech at the Mutt, Mr Modi said he was happy to get the blessings of this 'Pavithra sthal' (holy place) and that of saints here which has given him strength to work for the Dalits, backward and marginalised sections of the society.
A quality of the Hindu religion was that whenever there is lot of evil prevailing, great people are born to save the society. Narayana Guru had awakened and united the people to fight against untouchability and other ills in the society, he said.
Mr Modi also remembered the contributions of Adi Sankara, the early eighth century philosopher, who consolidated the doctrine of 'Advaita' philosophy.
Established by Narayana Guru who propagated the message of 'One Caste, One Religion and One God for Mankind', the Sivagiri Mutt is a major spiritual-cum-pilgrim centre of the backward Ezhava community in Kerala.
Mr Modi, on his maiden visit to the Mutt after becoming prime minister, planted a sapling at the campus.
He also unveiled a bilingual plaque of 'Daiva Dasakam', a universal prayer song penned by Guru, to mark the centenary of its composition.
The prime minister went round the 'Vaidika Mutt' in the Sivagiri campus, a more than 100-year-old building where Mahatma Gandhi and Rabindranath Tagore had met the Guru.
He also offered prayers at nearby Sarada Mutt, a temple, dedicated to Goddess Sree Sarada (the Goddess of Knowledge), which had been consecrated by Guru.
Mr Modi had earlier visited Sivagiri in April, 2013 when he was Chief Minister of Gujarat.
Congress chief Sonia Gandhi is scheduled to visit the Mutt later this month as part of the annual Sivagiri pilgrimage.
Accompanied by a group of sanyasins of the mutt, Mr Modi spent about a few minutes at the Sivagiri hillock, located around 50 kms away from Thiruvananthapuram, and offered obeisance at the 'maha samadhi mandapam', the final resting place of the legendary Guru.
The prime minister also touched the feet and took the blessings of swami Prakashananda, Sree Narayana Dharma Sangham Trust president and the senior most swami of the mutt.
In a brief speech at the Mutt, Mr Modi said he was happy to get the blessings of this 'Pavithra sthal' (holy place) and that of saints here which has given him strength to work for the Dalits, backward and marginalised sections of the society.
A quality of the Hindu religion was that whenever there is lot of evil prevailing, great people are born to save the society. Narayana Guru had awakened and united the people to fight against untouchability and other ills in the society, he said.
Mr Modi also remembered the contributions of Adi Sankara, the early eighth century philosopher, who consolidated the doctrine of 'Advaita' philosophy.
Established by Narayana Guru who propagated the message of 'One Caste, One Religion and One God for Mankind', the Sivagiri Mutt is a major spiritual-cum-pilgrim centre of the backward Ezhava community in Kerala.
Mr Modi, on his maiden visit to the Mutt after becoming prime minister, planted a sapling at the campus.
He also unveiled a bilingual plaque of 'Daiva Dasakam', a universal prayer song penned by Guru, to mark the centenary of its composition.
The prime minister went round the 'Vaidika Mutt' in the Sivagiri campus, a more than 100-year-old building where Mahatma Gandhi and Rabindranath Tagore had met the Guru.
He also offered prayers at nearby Sarada Mutt, a temple, dedicated to Goddess Sree Sarada (the Goddess of Knowledge), which had been consecrated by Guru.
Mr Modi had earlier visited Sivagiri in April, 2013 when he was Chief Minister of Gujarat.
Congress chief Sonia Gandhi is scheduled to visit the Mutt later this month as part of the annual Sivagiri pilgrimage.
Tarun Gogoi Backs Rahul Gandhi's Claims, Says He Was Stopped At Temple By RSS
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NEW DELHI: Assam Chief Minister Tarun Gogoi today backed Congress vice president Rahul Gandhi's claims that he was denied entry into a temple in Barpeta by RSS workers and said he has intelligence report on the matter.
"It is true that Rahul Gandhi was stopped at a temple by RSS. I have intelligence on that," Mr Gogoi said outside Parliament in New Delhi.
The Congress vice president yesterday alleged that he was stopped from entering a Vaishanvite monastery in Barpeta by RSS workers during his recent visit to Assam. Mr Gogoi said he has intelligence reports about the RSS-sponsored attempt to block Rahul Gandhi's entry into the temple.
"We had intelligence report that there would be attempts by RSS to prevent Gandhi's entry into the temple," he said, adding that an inquiry has been ordered into the incident.
"There was a blockade by women at the staircase of the temple and they were from RSS as per intelligence report," Mr Gogoi added.
"It is true that Rahul Gandhi was stopped at a temple by RSS. I have intelligence on that," Mr Gogoi said outside Parliament in New Delhi.
The Congress vice president yesterday alleged that he was stopped from entering a Vaishanvite monastery in Barpeta by RSS workers during his recent visit to Assam. Mr Gogoi said he has intelligence reports about the RSS-sponsored attempt to block Rahul Gandhi's entry into the temple.
"We had intelligence report that there would be attempts by RSS to prevent Gandhi's entry into the temple," he said, adding that an inquiry has been ordered into the incident.
"There was a blockade by women at the staircase of the temple and they were from RSS as per intelligence report," Mr Gogoi added.
Mamata Banerjee Says Trinamool Congress Not Engaged In Politics Of Religion
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GAJOLE: In a veiled attack on the BJP, West Bengal Chief Minister Mamata Banerjee today said that unlike "some parties" Trinamool Congress was not engaged in religion-based politics.
"Trinamool Congress is not like some parties which love to use religion for petty politics. I believe 'Saare Jahaan Se Achha, Hindustan Humara'. The soil of Bengal belongs to the legacy of Rabindranath, Nazrul, Dwijendralal Roy. We believe in unity not hatred," she said.
Further, expressing "shock" at CBI raid at the office and residence of Delhi chief minister Arvind Kejriwal's Principal Secretary, Ms Banerjee said the agency's move was beyond her understanding.
"Today they have sent the CBI to raid the office of Delhi CM. I am shocked! Why are they doing this?" she said.
Addressing a rally at the Gajole college ground, 35 kms off Malda, Ms Banerjee claimed that despite the Centre taking away a major chunk of its revenue as interest on loans, the state's assets have increased by 600 per cent in the last four years.
"Growth in Bengal's asset has increased by 600 per cent in the last four years. Let them stop taking our taxes. We do not need their funds. We are asking for our right. The state revenue has increased from Rs. 21,000 crore to Rs. 40,000 crore," Ms Banerjee said, adding that if there was not a huge outgo of the state's revenue, lakhs of people could have been provided jobs.
"We are paying for the sins of the CPI-M. They imposed a debt burden on the youth. Neither the Congress nor the BJP helped us," she told the meeting.
Ms Banerjee said during her visit to Delhi she had also raised the issue of bad condition of national highways in the state.
She also said that West Bengal was self-sufficient in power, claiming, "We are developing 'power bank'. We will export power to other states in future."GAJOLE: In a veiled attack on the BJP, West Bengal Chief Minister Mamata Banerjee today said that unlike "some parties" Trinamool Congress was not engaged in religion-based politics.
"Trinamool Congress is not like some parties which love to use religion for petty politics. I believe 'Saare Jahaan Se Achha, Hindustan Humara'. The soil of Bengal belongs to the legacy of Rabindranath, Nazrul, Dwijendralal Roy. We believe in unity not hatred," she said.
Further, expressing "shock" at CBI raid at the office and residence of Delhi chief minister Arvind Kejriwal's Principal Secretary, Ms Banerjee said the agency's move was beyond her understanding.
"Today they have sent the CBI to raid the office of Delhi CM. I am shocked! Why are they doing this?" she said.
Addressing a rally at the Gajole college ground, 35 kms off Malda, Ms Banerjee claimed that despite the Centre taking away a major chunk of its revenue as interest on loans, the state's assets have increased by 600 per cent in the last four years.
"Growth in Bengal's asset has increased by 600 per cent in the last four years. Let them stop taking our taxes. We do not need their funds. We are asking for our right. The state revenue has increased from Rs. 21,000 crore to Rs. 40,000 crore," Ms Banerjee said, adding that if there was not a huge outgo of the state's revenue, lakhs of people could have been provided jobs.
"We are paying for the sins of the CPI-M. They imposed a debt burden on the youth. Neither the Congress nor the BJP helped us," she told the meeting.
Ms Banerjee said during her visit to Delhi she had also raised the issue of bad condition of national highways in the state.
She also said that West Bengal was self-sufficient in power, claiming, "We are developing 'power bank'. We will export power to other states in future."
"Trinamool Congress is not like some parties which love to use religion for petty politics. I believe 'Saare Jahaan Se Achha, Hindustan Humara'. The soil of Bengal belongs to the legacy of Rabindranath, Nazrul, Dwijendralal Roy. We believe in unity not hatred," she said.
Further, expressing "shock" at CBI raid at the office and residence of Delhi chief minister Arvind Kejriwal's Principal Secretary, Ms Banerjee said the agency's move was beyond her understanding.
"Today they have sent the CBI to raid the office of Delhi CM. I am shocked! Why are they doing this?" she said.
Addressing a rally at the Gajole college ground, 35 kms off Malda, Ms Banerjee claimed that despite the Centre taking away a major chunk of its revenue as interest on loans, the state's assets have increased by 600 per cent in the last four years.
"Growth in Bengal's asset has increased by 600 per cent in the last four years. Let them stop taking our taxes. We do not need their funds. We are asking for our right. The state revenue has increased from Rs. 21,000 crore to Rs. 40,000 crore," Ms Banerjee said, adding that if there was not a huge outgo of the state's revenue, lakhs of people could have been provided jobs.
"We are paying for the sins of the CPI-M. They imposed a debt burden on the youth. Neither the Congress nor the BJP helped us," she told the meeting.
Ms Banerjee said during her visit to Delhi she had also raised the issue of bad condition of national highways in the state.
She also said that West Bengal was self-sufficient in power, claiming, "We are developing 'power bank'. We will export power to other states in future."GAJOLE: In a veiled attack on the BJP, West Bengal Chief Minister Mamata Banerjee today said that unlike "some parties" Trinamool Congress was not engaged in religion-based politics.
"Trinamool Congress is not like some parties which love to use religion for petty politics. I believe 'Saare Jahaan Se Achha, Hindustan Humara'. The soil of Bengal belongs to the legacy of Rabindranath, Nazrul, Dwijendralal Roy. We believe in unity not hatred," she said.
Further, expressing "shock" at CBI raid at the office and residence of Delhi chief minister Arvind Kejriwal's Principal Secretary, Ms Banerjee said the agency's move was beyond her understanding.
"Today they have sent the CBI to raid the office of Delhi CM. I am shocked! Why are they doing this?" she said.
Addressing a rally at the Gajole college ground, 35 kms off Malda, Ms Banerjee claimed that despite the Centre taking away a major chunk of its revenue as interest on loans, the state's assets have increased by 600 per cent in the last four years.
"Growth in Bengal's asset has increased by 600 per cent in the last four years. Let them stop taking our taxes. We do not need their funds. We are asking for our right. The state revenue has increased from Rs. 21,000 crore to Rs. 40,000 crore," Ms Banerjee said, adding that if there was not a huge outgo of the state's revenue, lakhs of people could have been provided jobs.
"We are paying for the sins of the CPI-M. They imposed a debt burden on the youth. Neither the Congress nor the BJP helped us," she told the meeting.
Ms Banerjee said during her visit to Delhi she had also raised the issue of bad condition of national highways in the state.
She also said that West Bengal was self-sufficient in power, claiming, "We are developing 'power bank'. We will export power to other states in future."
Court Dismisses Nobel Laureate Kailash Satyarthi's Plea In 1997 Suit
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NEW DELHI: Nobel laureate Kailash Satyarthi's plea seeking a direction to trustees of a charitable trust, who have filed a suit against him in 1997, to deposit security for litigation costs to be incurred by him has been dismissed by a Delhi court which said the matter relates to public interest.
It, however, left the issue open saying if found necessary at any stage of the proceedings, it can intervene appropriately in accordance with the law.
Additional District Judge Kamini Lau agreed with the submissions of Satyarthi and his wife Sumedha Satyarthi that to check frivolous litigations there should be pre-deposit of litigation expenses.
But she noted that "the concept of pre-deposit of costs is yet to be introduced in a big way in the Indian Legal System."
Noting that this could be done by appropriate legislation, the court said, "hence in view of the above, the application filed by defendants is accordingly dismissed."
Mr Satyarthi had sought a direction to the plaintiffs, trustees of the charitable trust Mukti Pratishthan Trust, to deposit security for costs incurred or likely to be incurred by him and his wife to defend themselves in the matter.
Plaintiffs Sheotaj Singh and others had opposed the plea of Mr Satyarthi.
NEW DELHI: Nobel laureate Kailash Satyarthi's plea seeking a direction to trustees of a charitable trust, who have filed a suit against him in 1997, to deposit security for litigation costs to be incurred by him has been dismissed by a Delhi court which said the matter relates to public interest.It, however, left the issue open saying if found necessary at any stage of the proceedings, it can intervene appropriately in accordance with the law.
Additional District Judge Kamini Lau agreed with the submissions of Satyarthi and his wife Sumedha Satyarthi that to check frivolous litigations there should be pre-deposit of litigation expenses.
But she noted that "the concept of pre-deposit of costs is yet to be introduced in a big way in the Indian Legal System."
Noting that this could be done by appropriate legislation, the court said, "hence in view of the above, the application filed by defendants is accordingly dismissed."
Mr Satyarthi had sought a direction to the plaintiffs, trustees of the charitable trust Mukti Pratishthan Trust, to deposit security for costs incurred or likely to be incurred by him and his wife to defend themselves in the matter.
Plaintiffs Sheotaj Singh and others had opposed the plea of Mr Satyarthi.
Business Affairs
Sensex ends 170 points up, Nifty tops 7,700 ahead of US Federal meeting
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The S&P BSE Sensex ended 170 points higher, while broader CNX Nifty topped its crucial psychological level of 7,700 on Tuesday ahead of US Federal Reserve's two-day policy meeting which will kick off later tonight.
Market rose after oil explorers like Reliance Industries gained tracking a rise in crude oil prices after a slump to near 11-year lows in the previous session triggered investors' buying appetite.
The 30-share index ended the day 25,320.44, up 170.09 points, while broad-based 50-share index closed at 7,700.90, up 50.85 points.
Market breadth turned positive with 18 of the 30 Sensex components ending the day in green.
Gains were led by stocks of Hindustan Unilever, Lupin and Reliance Industries which settled the day over 2 per cent higher.
Shares of IT firm Tech Mahindra tumbled 4.18 per cent, while those of Mahindra and Mahindra ended flat after gaining over 1 per cent as Mahindra group announced it will acquire Italian automotive and industrial design firm Pininfarina for an overall outgo of over 50 million Euros (nearly Rs 370 crore).
Meanwhile, banking stocks such as PNB, ICICI Bank, SBI and Canara Bank fell up to nearly 3 per cent in trade on Tuesday on worries that a widely anticipated US interest rate hike by the Federal Reserve may prompt the Reserve Bank of India to keep key interest rate unchanged for longer.
Worries over ballooning non-performing assets (NPA) of banks also continued to drag on banking stocks. NPA is a technical term for bank loans gone bad.
Bank Nifty, the gauge for banking stocks, shed 0.94 per cent to 16,188.05, but recovered in the late trade to close at 16,398.65, up 0.29 per cent.
Among Asian markets, China's Shanghai Composite ended 0.29 per cent down. Hong Kong's Hang Seng settled the day 0.17 per cent lower, while Japan's Nikkei lost 1.68 per cent.
Overnight, US stocks closed higher after energy stocks gained as crude oil prices inched up on Monday. Oil fell below $35 a barrel at some point but settled higher for the first time in seven sessions.
Lowdown on markets today
03:15 pm
Sensex at 25,331.51, up 181.16 points
Nifty at 7,702.55, up 52.50 points
12:33 pm
Sensex at 25,157.86, up 7.51 points
Nifty at 7,650.20, up 0.15 points
9:22 am
Sensex at 25,158.80, up 8.45 points
Nifty at 7,652.95, up 2.90 points
The S&P BSE Sensex ended 170 points higher, while broader CNX Nifty topped its crucial psychological level of 7,700 on Tuesday ahead of US Federal Reserve's two-day policy meeting which will kick off later tonight.
Market rose after oil explorers like Reliance Industries gained tracking a rise in crude oil prices after a slump to near 11-year lows in the previous session triggered investors' buying appetite.
The 30-share index ended the day 25,320.44, up 170.09 points, while broad-based 50-share index closed at 7,700.90, up 50.85 points.
Market breadth turned positive with 18 of the 30 Sensex components ending the day in green.
Gains were led by stocks of Hindustan Unilever, Lupin and Reliance Industries which settled the day over 2 per cent higher.
Shares of IT firm Tech Mahindra tumbled 4.18 per cent, while those of Mahindra and Mahindra ended flat after gaining over 1 per cent as Mahindra group announced it will acquire Italian automotive and industrial design firm Pininfarina for an overall outgo of over 50 million Euros (nearly Rs 370 crore).
Meanwhile, banking stocks such as PNB, ICICI Bank, SBI and Canara Bank fell up to nearly 3 per cent in trade on Tuesday on worries that a widely anticipated US interest rate hike by the Federal Reserve may prompt the Reserve Bank of India to keep key interest rate unchanged for longer.
Worries over ballooning non-performing assets (NPA) of banks also continued to drag on banking stocks. NPA is a technical term for bank loans gone bad.
Bank Nifty, the gauge for banking stocks, shed 0.94 per cent to 16,188.05, but recovered in the late trade to close at 16,398.65, up 0.29 per cent.
Among Asian markets, China's Shanghai Composite ended 0.29 per cent down. Hong Kong's Hang Seng settled the day 0.17 per cent lower, while Japan's Nikkei lost 1.68 per cent.
Overnight, US stocks closed higher after energy stocks gained as crude oil prices inched up on Monday. Oil fell below $35 a barrel at some point but settled higher for the first time in seven sessions.
Lowdown on markets today
03:15 pm
Sensex at 25,331.51, up 181.16 points
Nifty at 7,702.55, up 52.50 points
12:33 pm
Sensex at 25,157.86, up 7.51 points
Nifty at 7,650.20, up 0.15 points
9:22 am
Sensex at 25,158.80, up 8.45 points
Nifty at 7,652.95, up 2.90 points
Crude glass half full? Oil prices could rise sooner than expected
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Even with a global glut in oil supplies set to last well into 2017, indications are emerging that a recovery in prices could get underway sooner rather than later.
Oil prices have fallen by two-thirds since mid-2014 to trade near 11-year lows below $40 a barrel and most analysts don't expect them to regain the $100 mark until 2017 or later, arguing that producers will continue to pump out more crude than is demanded.
A growing number of traders are, nonetheless, positioning themselves for notably higher prices a year from now through the purchase of bullish call options.
Open interest in Brent crude call options tied to strike prices from $50 to $80 per barrel has climbed steeply in recent weeks, indicating growing confidence that prices will stage a strong recovery from current levels.
Factors supporting a more positive outlook range from higher car sales to heightened security and political risks in some oil producers and debt-laden shale firms on their last legs.
Indeed, some banks are now holding a more bullish view on the crude market.
"Although there are some downside risks for oil prices in the near-term, we believe that oil prices will recover in the course of 2016," ABN Amro said.
Morgan Stanley said that "continued demand growth and less supply mean that the oversupply in oil markets could disappear by year-end" of 2016.
FUELING UP: STRONG CAR SALES FROM EAST TO WEST
The glut is a result of oversupply, yet global gasoline demand has been strong, thanks to rising car sales.
China's November car sales jumped 20 per cent from a year earlier, putting the world's biggest automobile market on track for annual sales growth of 5-7 per cent.
Almost 25 million new cars will have hit China's roads in 2015, and by 2020 most analysts expect annual sales of 50 million.
Even European car sales are growing, with Western European markets up 5-10 per cent, according to monthly industry data.
US car sales are on track for a 2015 increase of 3 per cent and are expected by the National Automobile Dealers Association to hit a record next year before dipping slightly in 2017.
India's oil demand, approaching 4 million barrels per day (bpd), is also soaring as its economy grows at more than 7 per cent a year and hundreds of thousands buy their first car.
The resulting gasoline demand is expected to spur refiners to produce as much fuel as they can and should bolster 2016 crude demand as long as refining margins remain profitable..
SHALE "ZOMBIES"
On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) is expected to maintain near record-high output next year, especially if Iran's sanctions-hit sales fully resume. Outside OPEC, Russian production is also showing no signs of slowing.
But US production - which rose from under 6 million bpd in 2010 to more than 9 million bpd this year, driven by output from shale - has started to fall as operators wrestle with mounting debt.
The slump has created dozens of "zombies" among shale-drillers, a term used to describe companies that have just enough money to pay interest on debt but not to drill sufficient new wells to replace older ones that are drying out.
FULL THROTTLE
Global oil producers have little spare capacity to raise output to meet demand in the event of a large-scale supply disruption.
While most producers are running flat out, only Saudi Arabia has significant spare production and even it could only plug a gap of 2 per cent of global demand at predicted 2016 rates.
Risk consultancy Control Risks said in its RiskMap 2016 outlook that "the security and political risk outlook is worse than at any point in the past decade", citing a mix of terrorism threats, political instability and economic uncertainty.
At the same time, China is expected to build its strategic petroleum reserves further, adding to oil demand that is already more than 10 million bpd.
Because of all this, the International Energy Agency (IEA) expects global oil demand to rise from an average of 94.6 million bpd this year to a record 95.8 million barrels in 2016.
With oversupply estimated between 0.5-2 million bpd, it would only take OPEC pulling back from its current output of more than 31.5 million bpd to its long-standing quota of 30 million bpd to re-balance the market.
"The oil market remains more tightly balanced than is reflected in today's low prices. The oversupply is about 1.5 per cent of a 95 million bpd market with limited spare capacity in a risky political setting for weak petro states prone to disruption," Citibank said.
Even with a global glut in oil supplies set to last well into 2017, indications are emerging that a recovery in prices could get underway sooner rather than later.
Oil prices have fallen by two-thirds since mid-2014 to trade near 11-year lows below $40 a barrel and most analysts don't expect them to regain the $100 mark until 2017 or later, arguing that producers will continue to pump out more crude than is demanded.
A growing number of traders are, nonetheless, positioning themselves for notably higher prices a year from now through the purchase of bullish call options.
Open interest in Brent crude call options tied to strike prices from $50 to $80 per barrel has climbed steeply in recent weeks, indicating growing confidence that prices will stage a strong recovery from current levels.
Factors supporting a more positive outlook range from higher car sales to heightened security and political risks in some oil producers and debt-laden shale firms on their last legs.
Indeed, some banks are now holding a more bullish view on the crude market.
"Although there are some downside risks for oil prices in the near-term, we believe that oil prices will recover in the course of 2016," ABN Amro said.
Morgan Stanley said that "continued demand growth and less supply mean that the oversupply in oil markets could disappear by year-end" of 2016.
FUELING UP: STRONG CAR SALES FROM EAST TO WEST
The glut is a result of oversupply, yet global gasoline demand has been strong, thanks to rising car sales.
China's November car sales jumped 20 per cent from a year earlier, putting the world's biggest automobile market on track for annual sales growth of 5-7 per cent.
Almost 25 million new cars will have hit China's roads in 2015, and by 2020 most analysts expect annual sales of 50 million.
Even European car sales are growing, with Western European markets up 5-10 per cent, according to monthly industry data.
US car sales are on track for a 2015 increase of 3 per cent and are expected by the National Automobile Dealers Association to hit a record next year before dipping slightly in 2017.
India's oil demand, approaching 4 million barrels per day (bpd), is also soaring as its economy grows at more than 7 per cent a year and hundreds of thousands buy their first car.
The resulting gasoline demand is expected to spur refiners to produce as much fuel as they can and should bolster 2016 crude demand as long as refining margins remain profitable..
SHALE "ZOMBIES"
On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) is expected to maintain near record-high output next year, especially if Iran's sanctions-hit sales fully resume. Outside OPEC, Russian production is also showing no signs of slowing.
But US production - which rose from under 6 million bpd in 2010 to more than 9 million bpd this year, driven by output from shale - has started to fall as operators wrestle with mounting debt.
The slump has created dozens of "zombies" among shale-drillers, a term used to describe companies that have just enough money to pay interest on debt but not to drill sufficient new wells to replace older ones that are drying out.
FULL THROTTLE
Global oil producers have little spare capacity to raise output to meet demand in the event of a large-scale supply disruption.
While most producers are running flat out, only Saudi Arabia has significant spare production and even it could only plug a gap of 2 per cent of global demand at predicted 2016 rates.
Risk consultancy Control Risks said in its RiskMap 2016 outlook that "the security and political risk outlook is worse than at any point in the past decade", citing a mix of terrorism threats, political instability and economic uncertainty.
At the same time, China is expected to build its strategic petroleum reserves further, adding to oil demand that is already more than 10 million bpd.
Because of all this, the International Energy Agency (IEA) expects global oil demand to rise from an average of 94.6 million bpd this year to a record 95.8 million barrels in 2016.
With oversupply estimated between 0.5-2 million bpd, it would only take OPEC pulling back from its current output of more than 31.5 million bpd to its long-standing quota of 30 million bpd to re-balance the market.
"The oil market remains more tightly balanced than is reflected in today's low prices. The oversupply is about 1.5 per cent of a 95 million bpd market with limited spare capacity in a risky political setting for weak petro states prone to disruption," Citibank said.
StanChart axes top bankers in energy M&A team
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Standard Chartered plc has axed at least half a dozen oil and gas advisory banking roles in recent weeks, ending an eight-year attempt to build a global energy M&A team, people familiar with the matter told Reuters.
Asia-focused lender Standard Chartered expanded its energy M&A advisory team just before the global financial crisis by acquiring Harrison Lovegrove, a well regarded boutique advisory firm for oil and gas. At that time, more than two dozen bankers came over to Standard Chartered from Harrison Lovegrove.
But Chief Executive Bill Winters, who is cutting 15,000 jobs globally to restore profitability, is getting rid of expensive specialised bankers and taking a step to reduce the bank's global ambitions in the M&A space.
Most of the roles are in Singapore, three people familiar with the situation said.
A Standard Chartered spokeswoman declined comment on the departures.
The bank wants to move away from depending on advisory fees, and rely more on revenues generated by selling forex hedging products used in M&A transactions, the sources said.
"The model of pure advice doesn't fit with Standard Chartered's new scheme of things. It's an expensive proposition," one person familiar with the development said.
COSTLY AMBITION
In years following Harrison Lovegrove acquisition, Standard Chartered's Asia-Pacific M&A league table ranking improved to 13th in 2013 from 35th in 2008, according to Thomson Reuters data.
But as the bank's overall performance dropped due to higher regulatory problems, its energy M&A business also suffered and Standard Chartered's ranking slipped to 44th this year.
When Standard Chartered acquired Harrison Lovegrove in 2007, it had advised on about $20 billion worth of M&A. One of the founders, Martin Lovegrove, later quit Standard Chartered and now is a senior adviser to US energy major Chevron Corp.
The sharp fall in oil prices has resulted in less M&A opportunities, in particular from national oil companies, and increased the need for preserving capital, resulting in less work for bankers. However, bankers say, it is at times like this when clients need advice on business restructuring and capital raising.
Standard Chartered plc has axed at least half a dozen oil and gas advisory banking roles in recent weeks, ending an eight-year attempt to build a global energy M&A team, people familiar with the matter told Reuters.
Asia-focused lender Standard Chartered expanded its energy M&A advisory team just before the global financial crisis by acquiring Harrison Lovegrove, a well regarded boutique advisory firm for oil and gas. At that time, more than two dozen bankers came over to Standard Chartered from Harrison Lovegrove.
But Chief Executive Bill Winters, who is cutting 15,000 jobs globally to restore profitability, is getting rid of expensive specialised bankers and taking a step to reduce the bank's global ambitions in the M&A space.
Most of the roles are in Singapore, three people familiar with the situation said.
A Standard Chartered spokeswoman declined comment on the departures.
The bank wants to move away from depending on advisory fees, and rely more on revenues generated by selling forex hedging products used in M&A transactions, the sources said.
"The model of pure advice doesn't fit with Standard Chartered's new scheme of things. It's an expensive proposition," one person familiar with the development said.
COSTLY AMBITION
COSTLY AMBITION
In years following Harrison Lovegrove acquisition, Standard Chartered's Asia-Pacific M&A league table ranking improved to 13th in 2013 from 35th in 2008, according to Thomson Reuters data.
But as the bank's overall performance dropped due to higher regulatory problems, its energy M&A business also suffered and Standard Chartered's ranking slipped to 44th this year.
When Standard Chartered acquired Harrison Lovegrove in 2007, it had advised on about $20 billion worth of M&A. One of the founders, Martin Lovegrove, later quit Standard Chartered and now is a senior adviser to US energy major Chevron Corp.
The sharp fall in oil prices has resulted in less M&A opportunities, in particular from national oil companies, and increased the need for preserving capital, resulting in less work for bankers. However, bankers say, it is at times like this when clients need advice on business restructuring and capital raising.
GST draft law to be finalised in a month, says FinMin official
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The draft model law on Goods and Services Tax (GST) will be finalised in a month's time, a top finance ministry official on Tuesday said.
"We are also working on draft GST model law. The draft which has been put up by someone in public domain is not the official one. In fact we are still working on it. The draft will take one more month and once that is done, we will be putting it in public domain and the similar process of consultation with trade bodies will be done", Special Secretary in the Ministry of Finance Rashmi Verma said at an event organised by industry body Assocham.
Verma said whatever is in circulation is just the base paper prepared for kicking off the discussion on the draft law and there might be number of changes in it further.
Once the Constitution amendment bill to roll out GST is passed by Parliament, the centre and states will have to adopt their own law to give effect to the new indirect tax regime.
The Special Secretary said that the government is open to dropping proposed one per cent additional tax on inter-state movement of goods, if industry demands.
"If after consultation with various industry and political parties, it is felt that we should drop one per cent additional tax then we are open to it", Verma said.
"And definitely, I also agree, with one per cent additional tax going(away), GST structure will improve considerably because even if it is going to be there for only 2 years, there will be some amount of cascading effect", she added.
Verma, however pointed out that the government has already made changes in GST Bill, which is currently in Rajya Sabha, to minimise cascading effects of one per cent additional tax on inter-state movement of goods.
"There are a number of opinions about proposed one per cent additional tax. The select committee, which looked into it, also gave its recommendation, which we have accepted and with that, the cascading effect will be minimised because the one per cent additional tax will now be only on sale, and not on supply of goods. So, fear that every time goods move from one state to other, there will be one per cent additional tax need not be there because that change has already been made in Bill", she said.
On dispute resolution mechanism, Verma said GST council will not decide on the dispute but will only look at the modalities.
"So what would be an independent mechanism for dispute resolution will be recommended by the GST council. It can be in the form of tribunal, authority or others. The council itself would not be resolving the issues", she said.
The draft model law on Goods and Services Tax (GST) will be finalised in a month's time, a top finance ministry official on Tuesday said.
"We are also working on draft GST model law. The draft which has been put up by someone in public domain is not the official one. In fact we are still working on it. The draft will take one more month and once that is done, we will be putting it in public domain and the similar process of consultation with trade bodies will be done", Special Secretary in the Ministry of Finance Rashmi Verma said at an event organised by industry body Assocham.
Verma said whatever is in circulation is just the base paper prepared for kicking off the discussion on the draft law and there might be number of changes in it further.
Once the Constitution amendment bill to roll out GST is passed by Parliament, the centre and states will have to adopt their own law to give effect to the new indirect tax regime.
The Special Secretary said that the government is open to dropping proposed one per cent additional tax on inter-state movement of goods, if industry demands.
"If after consultation with various industry and political parties, it is felt that we should drop one per cent additional tax then we are open to it", Verma said.
"And definitely, I also agree, with one per cent additional tax going(away), GST structure will improve considerably because even if it is going to be there for only 2 years, there will be some amount of cascading effect", she added.
Verma, however pointed out that the government has already made changes in GST Bill, which is currently in Rajya Sabha, to minimise cascading effects of one per cent additional tax on inter-state movement of goods.
"There are a number of opinions about proposed one per cent additional tax. The select committee, which looked into it, also gave its recommendation, which we have accepted and with that, the cascading effect will be minimised because the one per cent additional tax will now be only on sale, and not on supply of goods. So, fear that every time goods move from one state to other, there will be one per cent additional tax need not be there because that change has already been made in Bill", she said.
On dispute resolution mechanism, Verma said GST council will not decide on the dispute but will only look at the modalities.
"So what would be an independent mechanism for dispute resolution will be recommended by the GST council. It can be in the form of tribunal, authority or others. The council itself would not be resolving the issues", she said.
Australian court tosses out Adani coal mine challenge
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An Australian court on Tuesday rejected a bid to stop Adani Enterprises building one of the world's biggest coal mines, saying the project should go ahead provided the firm complies with a host of environmental measures.
The ruling by the Land Court of Queensland sets Adani back on track to proceed with the stalled A$10 billion ($7 billion) project in the undeveloped Galilee Basin that could generate billions of dollars in export revenue for Australia.
However it adds to pressure on the Australian government just days after it joined some 200 countries in signing a climate deal in Paris which is intended to curb the use of fossil fuels.
The mine got the sign-off from Environment Minister Greg Hunt in October after the company cleared concerns about two rare outback species, but a conservation group challenged the decision, saying it would contribute to climate change and spoil groundwater and the Great Barrier Reef.
Land Court president Carmel MacDonald said in the ruling that she would recommend Hunt approve the mine "subject to the inclusion of additional conditions in the environmental authority", including measures to protect the endangered black-throated finch.
The conservation group which opposed the Carmichael mine, Coast and Country, said the Queensland state government could and should still block "the wrong mine on the wrong side of history".
"A matter of days ago, the world signed an historic climate deal that will end the age of coal. Carmichael is the planet's third biggest coal mine," Coast and Country spokesman Derec Davies said in a statement.
If the state government approves the mine it will be "will be "a travesty and a betrayal of all Queenslanders and the world community" Davies added.
An Australian court on Tuesday rejected a bid to stop Adani Enterprises building one of the world's biggest coal mines, saying the project should go ahead provided the firm complies with a host of environmental measures.
The ruling by the Land Court of Queensland sets Adani back on track to proceed with the stalled A$10 billion ($7 billion) project in the undeveloped Galilee Basin that could generate billions of dollars in export revenue for Australia.
However it adds to pressure on the Australian government just days after it joined some 200 countries in signing a climate deal in Paris which is intended to curb the use of fossil fuels.
The mine got the sign-off from Environment Minister Greg Hunt in October after the company cleared concerns about two rare outback species, but a conservation group challenged the decision, saying it would contribute to climate change and spoil groundwater and the Great Barrier Reef.
Land Court president Carmel MacDonald said in the ruling that she would recommend Hunt approve the mine "subject to the inclusion of additional conditions in the environmental authority", including measures to protect the endangered black-throated finch.
Land Court president Carmel MacDonald said in the ruling that she would recommend Hunt approve the mine "subject to the inclusion of additional conditions in the environmental authority", including measures to protect the endangered black-throated finch.
The conservation group which opposed the Carmichael mine, Coast and Country, said the Queensland state government could and should still block "the wrong mine on the wrong side of history".
"A matter of days ago, the world signed an historic climate deal that will end the age of coal. Carmichael is the planet's third biggest coal mine," Coast and Country spokesman Derec Davies said in a statement.
If the state government approves the mine it will be "will be "a travesty and a betrayal of all Queenslanders and the world community" Davies added.
General Awareness
Cancellation and Refund of Railway Tickets – New Rules
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With effect from 12 November 2015, certain provisions of Railway Passengers (Cancellation of tickets and refund of fare) Ruleshave been amended and comprehensive Railway Passengers Rules 2015 have been notified through Gazette Notification G.S.R. 836(E). dated 4 November 2015.
- The information was given by the Minister of State for Railways Shri Manoj Sinha in Rajya Sabha.
Important changes made in Railway Passengers Rules:
- Refund on cancellation of unused confirmed tickets.
- If confirmed ticket is presented for cancellation upto 48 hours before the scheduled departure of the train, per passenger minimum cancellation charge is levied.
- If confirmed ticket is presented for cancellation between 48 hours and upto 12 hoursbefore the scheduled departure of the train, 25% cancellation charges is levied subject to minimum flat cancellation charge.
- If confirmed ticket is presented for cancellation between 12 hours and upto 4 hoursbefore the scheduled departure of the train irrespective of distance, 50% cancellation charge is levied subject to minimum flat cancellation charge.
- Refund on confirmed ticket is granted only upto 4 hours before the scheduled departure of the train.
Refund on cancellation of unused RAC or Wait-listed tickets/Partially confirmed tickets
When RAC or Wait-listed ticket or Partially confirmed tickets is presented for cancellation, the refund of fare minus clerkage charge is made upto 30 minutes before the scheduled departure of the train.
- No cancellation charge or clerkage charges is levied and full fare is refunded to all passengers holding confirmed, RAC and Wait-listed tickets if the journey is not undertaken due to late running of the train by more than three hours of scheduled departure of the train from the journey commencing station, subject to the condition that the ticket is surrendered prior to the actual departure of the train
Reservation charts are being prepared at least 4 hours in advance, which facilitates purchase of available berths till 30 minutes before departure of the train.
- With effect from 12 November 2015, certain provisions of Railway Passengers (Cancellation of tickets and refund of fare) Ruleshave been amended and comprehensive Railway Passengers Rules 2015 have been notified through Gazette Notification G.S.R. 836(E). dated 4 November 2015.
- The information was given by the Minister of State for Railways Shri Manoj Sinha in Rajya Sabha.
- Refund on cancellation of unused confirmed tickets.
- If confirmed ticket is presented for cancellation upto 48 hours before the scheduled departure of the train, per passenger minimum cancellation charge is levied.
- If confirmed ticket is presented for cancellation between 48 hours and upto 12 hoursbefore the scheduled departure of the train, 25% cancellation charges is levied subject to minimum flat cancellation charge.
- If confirmed ticket is presented for cancellation between 12 hours and upto 4 hoursbefore the scheduled departure of the train irrespective of distance, 50% cancellation charge is levied subject to minimum flat cancellation charge.
- Refund on confirmed ticket is granted only upto 4 hours before the scheduled departure of the train.
Refund on cancellation of unused RAC or Wait-listed tickets/Partially confirmed tickets
When RAC or Wait-listed ticket or Partially confirmed tickets is presented for cancellation, the refund of fare minus clerkage charge is made upto 30 minutes before the scheduled departure of the train.- No cancellation charge or clerkage charges is levied and full fare is refunded to all passengers holding confirmed, RAC and Wait-listed tickets if the journey is not undertaken due to late running of the train by more than three hours of scheduled departure of the train from the journey commencing station, subject to the condition that the ticket is surrendered prior to the actual departure of the train
Reservation charts are being prepared at least 4 hours in advance, which facilitates purchase of available berths till 30 minutes before departure of the train.
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