So whats new?

A new study tells us that physicians order unnecessary tests and hospitalizations out of fear of malpractise lawsuits. Big deal .. what else is new? Everyone knows the medical system in the US is in a mess - due to a variety of reasons - be it high insurance rates, the tort system, and probably many more things than I'd ever understand. Its all a vicious circle and the causes can be seen by others as effects of some other cause itself. Insurance rates are high because costs are high and costs are high because insurance is ready to pay big bucks. What actually amuses (perhaps not the best word to use ) me is that in this kingdom of capitalism - where supply and demand as well as a free market are supposed to keep everything in balance, how the medical system in the US is spiralling out of the common man's control.

The yawing of the Yuan

China has finally revaluated the Yuan. Fixed at 8.28 to a dollar for years, China has chosen to move towards a flexible currency. The shift from 8.28 to 8.1 - albeit small (2%) is a significant one. First of all the very fact that China revaluated it's currency is significant. Second, it has chosen to restrict the Yuan within a very strict band of change. The People's Bank of China will allow the Yuan to vary by just 0.3% per day. So, baby steps it is. Don't look at the 0.3% and go 'aaargh' .. its 0.3% per day .. which can very well mean a significant change over time.

China, though reluctant to make the change, chose to do so at an opportune time. Chinese manufacturers will find their products more expensive for their customers to buy, but their (Chinese) imports will be cheaper. This will mean good news for those who import their raw materials. In the US, I doubt that major traders with China will increase prices. Walmart, in typical style will probably aim to make itself leaner - and meaner to soften the blow instead of raising prices.

For China, this means a variety of things. The Chinese economy, growing at break-neck speed since time unknown, can now be effectively regulated. Also the growing tension between the US and China will decrease somewhat. I think this is a nice trick China is playing. With tensions high over the revaluation, Unocal and Maytag, the Chinese are foxing the emotionally high-strung anti-China US senators into thinking that China blinked first. This is bound to result in a laxness - an opportunity the Chinese will not let go waste.

PM begins US visit

The Indian PM, Dr. Manmohan Singh began his official visit to the US today. Even as the media are playing their part by reporting every detail of the visit including what the PM and his wife were wearing (and no doubt, later on had for dinner), we all wait to see what actual work is done during the 'historic' meet.
The highlights will be the PM's address to the US congress, the talks for elevated nuclear cooperation, talks for sharing defense practises and technology and also two new initiatives - the CEOs forum and linking the agricultural universities in India with those in the US. I like this new agricultural focus as if undertaken properly, it will renew agricultural research in India.
In the CEO's Forum. 10 CEOs from each side will sit down and discuss FDI inflow into India. The forum will also address the difficulties in setting up investments in India, including but not limited to Red Tape, and also aim towards cooperation in research in various fields. This is a very good step - leaving politicians and the babus out of this discussion. It will probably be 'guided' by bureaucrats, but hey, something is better than nothing. The selection of both groups clearly indicates the wide spectrum of discussions to take place. It is a neat mix of Infrastructure support in the areas of Finance, Agriculture, Industry and Technology.
The list -
CEOs from the US-
• Charles O. Prince, Citigroup
• Paul Hanrahan, AES
• Stanley Warren, Cargill
• David Cote, Honeywell International,
• William B. Harrison, Jr, J P Morgan Chase
• Harold McGraw III, The McGraw Hill companies
• Thomas J. O’Neill, Parsons Brinckerhoff
• Steve Reinemund, Pepsi
• Christopher Rodrigues, VISA International
• Anne M. Mulcahy, Xerox

CEOs from India-
• Ratan Tata, Tata Sons
• Deepak Parekh, HDFC
• Mukesh Ambani, RIL
• Nandan Nilekani, Infosys
• Ashok Ganguly, ICICI OneSource Ltd
• Y C Deveshwar, ITC Ltd
• Kiran Mazumdar-Shaw, Biocon
• Analjit Singh, Max (India) Ltd
• Pratap C Reddy, Apollo Group of Hospitals
• Baba N Kalyani, Bharat Forge Ltd

Lets hope this is the start of a new path leading towards cooperation and mutual benefits.

Ebbers gets 25

Bernard Ebbers, ex-CEO of Worldcom was sentenced to 25 years in prizon for his role in orchestrating the largest fraud / accounting scandal in US history. Bernie and associates cleaned off a cool 11 billion dollars. Lets hope all that money will help to keep him out of trouble in prizon. [It will].
Ebbers claimed having a weak heart and so, a lenient sentence. Interestingly the judge observed that she did not believe Ebber's heart condition was serious enough to warrant a lenient sentence. Way to go judge!
Bernie's fraud impacted tons of investors (directly) and more 'innocent bystanders' (indirectly) as Worldcomm went into banruptcy and re-emerged as MCI. MCI pestered millions of people by flooding them with junk mail and cold calls to take up their service.

Remaining Giant?

I have always compared the house of TATAs and Reliance and have noted the differences between the two. Now, everyone will no doubt be comparing them again and drawing their own conclusions. With Reliance splitting up, it is surely tempting to consider the TATAs as the sole family owned/run empire now remaining in India. (if we doscount Ranbaxy, Birla and other whatnots).

I remember writing about Dhirubhai Ambani, long back .. in fact on my old site. (I still havent transferred the archives). I should have written about the TATAs as well, just to balance the offset. Well, Newsweek has done a spendid job here.