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Tuesday, September 30, 2008
For the price of an air-ticket, you can buy a home in US
here for the same amount! Thanks to the bottom falling out of the US housing market and struggling families abandoning homes, unable to keep up with mortgage payments.
A detailed look at US realty websites such as realtor.com, zillow.com and ziprealty.com show that homes with one bathroom and bedroom are being advertised at anywhere between $1,500-3000 (Rs 69,000-1.38 lakh), an incredible fact by itself, in places such as Detroit, Michigan, Jackson, Mississippi, and Cleveland, Ohio.
"The lowered residential property rates in many parts of the US can be attributed to the sub-prime crisis, which has caused a huge surplus of stock in the market, besides reducing liquidity, which slows down absorption," said Raminder Grover, MD, Homebay, a subsidiary of international property consultants Jones Lang LaSalle Meghraj.
As per law, homes can be purchased by US residents, and the low prices could suit students travelling to US and techies sent for on-site operations. As per the RBI cap, an average Indian can invest upto $200,000 (Rs 93 lakh) in US real estate.
"Students live in apartments or as paying guests by shelling out $250-500 per month. If they or their parents can afford to pay money upfront, this might be a good option for students planning to stay for 1-2 years," said Sridevi, US counsellor for Valmiki Group, which processes study visas for US. Over 6% of US home loans are in arrears and around 1.5-2 million Americans have lost their homes to foreclosure in 2007.
As in India, additional costs could be from the cost of borrowing, brokerage payable for the location of suitable property and registration of the purchase. For the likes of Rohan, an IT professional who is soon to be sent to New York for 3-6 months, a home could straightaway save $500-1000. Junior and middle-level techies get $400-600 per month as house allowance, while project managers and higher-ups are said to get even $1,000 per month.
But students or techies going to states such as Nevada or California may not be as lucky. "In California, homes still come at $50,000-200,000. Indian students cannot afford to pay that much. Plus, a group can still rent out an apartment for $2,000-3000 and split the costs," Sudha Kumar, recruitment coordinator at Viterbi School of Engineering (University of Southern California), said.
Bailout defeat sends markets reeling
TORONTO STAR
A stunning rejection of a $700 billion financial bailout package by the U.S. House of Representatives yesterday sparked a historic North American stock market selloff, and left the United States in a crisis with no end in sight.
During an emotional afternoon in which the House dissolved into partisan finger-pointing, the bill was defeated 228-205 and, even before the voting was complete, the Dow Jones index began a freefall that ended with a loss of 777 points and $1.2 trillion in market value.
Toronto's S&P/TSX composite index collapsed into a sea of red after shedding a whopping 840.93 points to close at 11,285.07. The benchmark index had fallen by more than 900 points at one point during the session, buckling under the weight of tumbling energy and financial shares.
While it managed to recover from that low point, yesterday's 6.93 per cent decline was the index's steepest one-day percentage drop in nearly eight years. With only one trading day left in September, the TSX is poised for its worst monthly performance in about a decade.
The next move in Washington was unclear.
Both sides pledged to go back to work at crafting a package that can pass muster, but Congress now goes dark until Thursday.
More than two-thirds of Republicans, as well as 40 per cent of Democrats voted against the bill.
The vote had reverberations on the campaign trail in both Canada and the United States.
NDP Leader Jack Layton demanded an emergency leaders' meeting as chaos on Bay Street and Wall Street mounted.
Prime Minister Stephen Harper rejected Layton's request and the Conservatives continued to claim their party is the best bet to lead Canada at a time of economic instability.
Liberal Leader Stéphane Dion likened the Conservative approach to the economy to that of the Bush administration.
On the presidential campaign trail, Democrat Barack Obama counselled calm and urged Congress to get back to work.
"Get this done,'' Obama said. "Democrats and Republicans, step up to the plate and get this done.''
Republican John McCain, who dramatically suspended his campaign last week to deal with the crisis, accused Obama of a lack of leadership and said Democrats had torpedoed the effort with a last-minute partisan foray.
The defeated bill would have allowed the government to buy bad mortgages and other toxic assets from banks and financial institutions, relieving pressure so they would be in a position to free up credit. Until that happens, credit continues to be choked off by the troubled financial institutions, further slowing an already sputtering economy.
As it became clear the House bill was going to die, some members started shouting that the Dow was down more than 600 points and television screens around the world offered a jolting split screen of the market diving with every vote in the "nay" column.
In the end, House Republicans, faced with the pleadings of President George W. Bush and the anger of their constituents, turned their backs on the president.
They then attempted to blame Democratic House Speaker Nancy Pelosi, saying a speech she delivered on the floor blasting Bush economic policies had injected partisan politics into the effort to craft a bipartisan solution.
Bush and Treasury Secretary Henry Paulson expressed disappointment and pledged to go back to work, but Paulson looked particularly grim as he spoke to reporters at the White House.
"Markets around the world are under stress, and that reduces the availability of credit that businesses across America depend on to meet payroll and to purchase inventories,'' Paulson said.
"Families, too, feel the credit crunch, as it becomes more difficult to get car loans or a student loan.''
Bush, who last week used his prime-time television bully pulpit to warn Americans of dire consequences, spoke only briefly, pledging to redouble efforts with congressional leaders.
"We put forth a plan that was big because we got a big problem,'' Bush said.
Global banks have already taken some $590.8 billion in write downs and credit losses since the implosion of America's subprime mortgage market triggered the credit crunch last year.
With the IMF predicting losses could eventually top $1 trillion, banks are increasingly skittish about lending to each other.
"Nobody wants to lend money to anybody right now. The cost of funds is very high," said Andrew Martyn, a portfolio manager at Davis-Rea Ltd.
That crisis of confidence also has an impact on Canadian banks, even though they have relatively little exposure to America's subprime market or the troubled mortgage-backed securities that have brought down larger rivals.
Also weighing on market sentiment was Citigroup Inc.'s hastily-arranged takeover of Wachovia Corp. and the partial nationalization of a few European lenders.
Republican House leader John Boehner said he thought he had the votes until the last minute.
"Americans are angry and so are my colleagues. They don't want to have to vote for a bill like this, and I understand that,'' he said.
Republicans say they lost about a dozen votes at the last minute.
"The speaker had to give a partisan (speech) that poisoned our conference, caused a number of members we thought we could get to go south," Boehner said.
Pelosi countered that Democrats had held up their end of the bargain.
Vodafone appoints emerging mkt bosses from within
Vodafone, the world's largest mobile phone group by revenue, announced earlier this month that it would split its emerging markets division into two and appoint two new bosses because the unit was becoming too large.
Vodafone appointed Nick Read, currently chief executive of the UK, to run Asia Pacific and the Middle East, and Morten Lundal, currently chief executive of Middle East & Africa within the emerging markets unit, to run Central Europe and Africa.
Guy Laurence, currently chief executive of Vodafone Netherlands, will replace Read to become chief executive of Vodafone UK.
The original emerging-markets unit covered eastern Europe, the Middle East and Africa, Asia Pacific and Affiliates and was known as EMAPA.
Under the new system, Read will be responsible for Australia, China, Egypt, Fiji, India, New Zealand and Qatar. Lundal will cover the Czech Republic, Ghana, Hungary, Kenya, Poland, Romania, Turkey and Vodacom Group in South Africa.
Vodafone is currently in negotiations to increase its share in Vodacom to 62.5 percent from 50 percent in what is an important market for the company. (Reporting by Kate Holton; Editing by Quentin Bryar)
Above Rs 110, Moser Baer has target of Rs 137: Mathew
E Mathew told CNBC-TV18, "Moser-Baer’s chart is certainly looking better than that of Gujarat NRE Coke. They seem to be having some sort of bargain hunting and the stock seems to have passed into stronger hands somewhere around that Rs 98 and Rs 100 zone."
He further added, "If the stock is able to build a base around this Rs 98-100 zone, it could be an interesting play and once the stock is able to move above that Rs 110 convincingly which it has done today, the initial target would be around Rs 137. So if I were to take a trading bet or even a very short-term investment call, my bets would be on Moser-Baer."
Disclosure: It is safe to assume that analyst & his clients may have an investment interest in the stocks/sectors discussed.
HCL Technologies an underperformer: Karvy
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.
Buy ICICI Bank at Rs 500: Vijay
Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.
Buy Pidilite Industries, target of Rs 195: SKP Securities
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.
BSE 150 stocks hit one-year low
Markets have opened lower in line with Asian markets as they are reading bailout plan negatively. Due to this weakness in markets almost 150 BSE stocks have touched their 52-week low in early trade. This include ‘A’ Group stocks like Bajaj Hind, Bharat Forge, Bombay Dyeing, Deccan Chronicle, Financial Tech, Gammon India, HDIL, Hindalco, Omaxe, Opto Circuits, Patni Computer, Shipping Corp, Sun TV Network, TCS, Unitech and Welspun Guj.
On the Global front, US law makers agreed on $700 billion draft proposal and proposed 3 phases of financial rescue plan. US Congress is set to vote today. However, total $700 billion will not be released at one go; $ 350 billion is dependent on Congress approval.
While on the
List of all stocks that have touched their 52-week low during the day
Group | Today’s High | Today’s Low | CMP 10.04 am | |
A | 121 | 117.4 | 117.6 | |
A | 203 | 195.4 | 196.55 | |
A | 400 | 386.5 | 394 | |
A | 92.6 | 85.55 | 88.5 | |
A | 1230 | 1195.05 | 1195.05 | |
A | 155.5 | 153 | 153 | |
A | 47.5 | 45 | 45.1 | |
A | 29.5 | 27.7 | 27.9 | |
A | 195 | 179 | 179.9 | |
A | 100 | 98.05 | 99.05 | |
A | 116.2 | 114 | 114 | |
A | 101.4 | 99 | 100 | |
A | 258.45 | 251.6 | 251.6 | |
A | 785 | 754.1 | 767 | |
A | 187 | 181 | 183.85 | |
A | 159.85 | 132 | 156.9 | |
A | 200 | 190.2 | 190.2 | |
A | 680 | 663 | 664.1 | |
A | 113 | 107.2 | 107.7 | |
A | 247 | 240 | 243 | |
B2 | 75.6 | 70 | 70.9 | |
B2 | 12.61 | 12.61 | 12.61 | |
B2 | 59.9 | 57.8 | 57.8 | |
B2 | 20 | 18.5 | 19.2 | |
B2 | 11.85 | 11.8 | 11.8 | |
B2 | 6.05 | 6.05 | 6.05 | |
B2 | 15.1 | 14.8 | 14.8 | |
B2 | 83.5 | 79.2 | 79.3 | |
B2 | 75.8 | 72.1 | 75.8 | |
B2 | 113.25 | 112 | 112.4 | |
B2 | 0.58 | 0.56 | 0.56 | |
B2 | 58 | 58 | 58 | |
B2 | 2.06 | 2.02 | 2.06 | |
B2 | 11.4 | 10.4 | 10.55 | |
B2 | 13.7 | 13.05 | 13.25 | |
Chemplast Sanm | B2 | 6.2 | 5.73 | 5.75 |
B2 | 66.5 | 66.5 | 66.5 | |
B2 | 13.65 | 13.65 | 13.65 | |
B2 | 7.6 | 7.6 | 7.6 | |
B2 | 10.6 | 10.6 | 10.6 | |
B2 | 139 | 132 | 132 | |
B2 | 23.5 | 22.3 | 23 | |
Everonn System | B2 | 360.1 | 348.05 | 352 |
B2 | 6.85 | 6.5 | 6.5 | |
B2 | 41.7 | 41.25 | 41.65 | |
B2 | 48 | 46.15 | 47.2 | |
B2 | 356.1 | 344.7 | 344.7 | |
B2 | 18.6 | 18.6 | 18.6 | |
B2 | 73.75 | 66.05 | 66.05 | |
B2 | 8.25 | 8.25 | 8.25 | |
B2 | 190.5 | 188.55 | 190 | |
B2 | 174 | 172.05 | 172.05 | |
B2 | 2.4 | 2.29 | 2.29 | |
B2 | 1.39 | 1.3 | 1.3 | |
B2 | 20.5 | 20.5 | 20.5 | |
B2 | 30.5 | 29 | 29 | |
B2 | 12 | 11.65 | 11.7 | |
B2 | 0.4 | 0.4 | 0.4 | |
B2 | 44.6 | 43.9 | 43.9 | |
B2 | 24.4 | 24.3 | 24.3 | |
B2 | 112 | 106.25 | 106.25 | |
B2 | 10.1 | 10.1 | 10.1 | |
B2 | 144.65 | 120 | 140 | |
B2 | 26.3 | 25.4 | 25.45 | |
B2 | 416.25 | 416.25 | 416.25 | |
B2 | 102 | 100.55 | 102 | |
JK LakshmiCem | B2 | 64 | 62 | 64 |
B2 | 20.3 | 20.3 | 20.3 | |
B2 | 20.75 | 20.4 | 20.4 | |
B2 | 270.5 | 262 | 262 | |
B2 | 14 | 12.3 | 12.3 | |
B2 | 39 | 37.25 | 38.05 | |
B2 | 28.15 | 26.8 | 26.8 | |
B2 | 60 | 60 | 60 | |
B2 | 4.9 | 4.5 | 4.5 | |
B2 | 35.2 | 28.25 | 33.6 | |
B2 | 29 | 24 | 29 | |
B2 | 2344.95 | 2251 | 2251 | |
B2 | 40.5 | 40.1 | 40.1 | |
B2 | 9.4 | 9.1 | 9.1 | |
B2 | 96.5 | 96.5 | 96.5 | |
B2 | 15.4 | 14.9 | 15.4 | |
B2 | 21.05 | 19.8 | 19.8 | |
B2 | 21.05 | 21.05 | 21.05 | |
B2 | 305 | 305 | 305 | |
B2 | 14.55 | 11.25 | 14.55 | |
B2 | 26.5 | 24 | 24.05 | |
B2 | 1.53 | 1.53 | 1.53 | |
B2 | 34.95 | 34.5 | 34.5 | |
B2 | 122 | 118.85 | 122 | |
B2 | 26 | 24 | 24 | |
B2 | 182 | 175.3 | 176.4 | |
B2 | 4.1 | 4.1 | 4.1 | |
B2 | 3.21 | 3.21 | 3.21 | |
B2 | 47.5 | 45.3 | 46 | |
B2 | 159.8 | 130 | 152 | |
B2 | 21.55 | 21 | 21.35 | |
B2 | 33.75 | 31 | 31.75 | |
B2 | 54.9 | 54.9 | 54.9 | |
B2 | 150.9 | 148.3 | 148.3 | |
B2 | 675 | 645 | 645.2 | |
B2 | 141.4 | 134.35 | 134.35 | |
B2 | 2.51 | 2.13 | 2.13 | |
B2 | 109 | 103.5 | 109 | |
B2 | 96 | 80.15 | 80.15 | |
B2 | 27 | 27 | 27 | |
B2 | 65 | 63 | 65 | |
B2 | 0.97 | 0.9 | 0.9 | |
B2 | 64.8 | 62.5 | 64.8 | |
B2 | 0.75 | 0.7 | 0.75 | |
B2 | 99.9 | 92.55 | 92.55 | |
B2 | 190 | 185.55 | 185.55 | |
B2 | 119.25 | 116 | 117.1 | |
B2 | 14.5 | 14.45 | 14.45 | |
B2 | 42 | 40.5 | 40.7 | |
B2 | 20 | 19.55 | 19.95 | |
B2 | 14.6 | 14.55 | 14.6 | |
B2 | 184.55 | 182 | 182 | |
B2 | 3.65 | 3.65 | 3.65 | |
B2 | 2098 | 1818.05 | 1818.05 | |
B2 | 17.1 | 16.5 | 16.75 | |
B2 | 4.75 | 4.75 | 4.75 | |
B2 | 279.1 | 279.1 | 279.1 | |
B2 | 5.55 | 5.55 | 5.55 | |
B2 | 18.3 | 17.4 | 17.6 | |
B2 | 167.85 | 161.1 | 161.1 | |
B2 | 19 | 19 | 19 | |
S | 80.7 | 80.65 | 80.7 | |
S | 77.5 | 77.5 | 77.5 | |
S | 9.8 | 9.75 | 9.8 | |
S | 40.1 | 38.05 | 38.05 | |
S | 9.95 | 8.6 | 9.95 | |
Banswara Synte | S | 22.7 | 21.35 | 21.35 |
S | 14.5 | 13.75 | 13.75 | |
S | 14.85 | 13.75 | 13.75 | |
Camson Bio Tec | S | 55 | 50.05 | 52 |
S | 14.25 | 14.25 | 14.25 | |
S | 35.5 | 30.2 | 35.5 | |
S | 233 | 227 | 227.2 | |
S | 76.55 | 76.55 | 76.55 | |
S | 12.61 | 11.94 | 11.94 | |
S | 125 | 120 | 120 | |
S | 59.6 | 50.55 | 57.7 | |
S | 37.5 | 35.75 | 36.2 | |
S | 175 | 175 | 175 | |
S | 10.2 | 9.1 | 9.11 | |
S | 18.3 | 18.1 | 18.1 | |
T | 19 | 19 | 19 | |
Z | 29 | 24 | 24.5 | |
Z | 7 | 6.36 | 7 |