US government spending bill stalls in Senate

Posted by: Manjeet Kripalani on March 06

The US government’s $410 billon spending bill stalled in the Senate, just short of one vote for the 60 needed to break the Republican filibuster. The bill, if passed, would provide funding for much of the federal government for the current year, and provide large spending increases across departments. It would also result in some changed policies from the Bush regime – like permitting US citizens to visit Cuba once a year instead of once in three years, and be less rigid about food and medicine exports to Cuba.

Such provisions grounded the bill; members also objected to its enormous size and the 8,570 earmarks for projects like a fish hatchery visitor center in Alaska. If it does not pass next week, the federal government’s spending budget will continue at current levels.

Source: Washington Post

Dow, Nasdaq plunge again to new lows

Stocks fell to new 12-year lows on unrelenting bad economic news, and blue-chips traded at the very bottom. The Dow closed at 6,594, its lowest since 1997, and Nasdaq at 1,299, the lowest since 2003. Wall Street gems like General Motors and Citibank – whose stock at one point fell to 97 cents, its lowest ever -took a beating, as did financial sector stocks. Together, they have dragged dragged the market. Analysts worry that there is still no sign of the bottom, and no relief in sight.

Source: CNN Money

New CIO will make nation Web 2.0-savvy

President Obama’s pick to be the country’s chief information officer, Vivek Kundra, has a daunting task – to implement Obama’s vision of having a Web 2.0 government and save it money by using more open source technology. His job will be to ensure co-ordination of the information technology operations across government agencies, mostly. But he also intends to help the public re-think the way they interact with government through information technology, and hopes that his effort will launch new waves of entrepreneurship. organize themselves on the Web.

Source: CNET News

Honda Sells Formula One team

Honda finally found a buyer for its Formula One racing team – barely three weeks before the first race of the year takes place in Austria. Honda, which expects its net profit to fall 69% in the year ending March 31, had been looking for a buyer for months now. But its team, which spent the most money in the circuit last season, only finished eighth in the world championship, making it less attractive. Though people like Sir Richard Branson were interested in Honda’s team, its offers were not serious, the car company said. It finally sold to the team’s former manager, Ross Brawn. The team was renamed Brawn GP, and will retain Honda’s two drivers.

Source: Financial Times

US job losses rise

Job losses in the US for the month of February are likely to hit a 25-year high. According to estimates by Reuters, non-farm job losses in February will be about 648,000, far higher than the 598,000 job losses of January. That would send the US unemployment rate to 7.9%, the highest since 1984. Economists predict it could be worse – a Citigroup report estimates job losses of 700,000 in Febuary, symptomatic of a severe recession. The Labor Department is scheduled to release the Febuary non-farm payroll report this morning.

Source: Reuters

Pricewaterhouse revamps in India

PricewaterhouseCoopers, the US auditing firm that was caught in the accounting scandal at Indian IT outsourcer Satyam Computer Services in January, says it will make sweeping changes in its India operations to “re-emphasise” quality. Two of the firms partners in Hyderabad which audited Satyam’s accounts – later declared by its founder R. Raju to be over-stated by $1.6 billion - have been in jail without bail for the last two months on charges of criminal conspiracy and cheating. The firm says there is no evidence against them. But it is moving forward with the overhaul to quieten questions about more widespread quality problems about its Indian operations. Several of the new executives appointed in India will now come from outside the country.

Source: New York Times

GM’s revival plans based on old assumptions

General Motors’ is betting its revival strategy on two big assumptions: a bonanza of demand after the downturn, and that the rebound will be big enough for GM to service the massive debt it is taken on from the government. GM expects consumers to buy 16 million cars annually by 2012, even 18 million – about the same that were selling in the go-go decade just past. But the company would be wise to be wary of inflated numbers, whether in housing, finance, or autos.

Source: BusinessWeek

Indian liquor baron buys Gandhi memorabilia in controversial auction

Vijay Mallya, owner of India’s Kingfisher beer and Kingfisher Airlines, bought Mahatma Gandhi’s sandals, glasses, supper bowl and other items for $2.1 million in a controversial auction in New York. James Otis, the US collector who owned the items, caused a diplomatic palaver when he announced he would withdraw the items from auction unless the Indian government increased its funding to fight poverty. Mallya, who also retrieved the 18th century sword of an Indian prince in a 2003 auction, said the items belonged to India and should go there. The Mahatma’s great grandson said he was proud an Indian bought the lot.

Source: Bloomberg

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