Work on "taming" firms wins Frenchman economics Nobel Reuters

French economist Jean Tirole won the 2014 Nobel Prize for economics for work that has
shed light on how governments can "tame" the big businesses that dominate once-public
monopolies like railways, highways and telecommunications. The academy said Tirole
has clarified policies about regulating industries with a few powerful firms, especially
after a wave of privatizations had set governments a conundrum over how to encourage
private investments in sectors like healthcare and railways while reining in profits.
Cyclone kills 24 in east India, sparks fears of floods Reuters
The death toll from a powerful cyclone which battered India's eastern coastline rose to
24 on Monday, as the storm weakened and moved inland, leaving a swathe of
destruction and triggering fears heavy rains would bring flash floods. Packing wind
speeds of up to 195 kph (over 120 mph), cyclone Hudhud hammered the coasts of
Andhra Pradesh and Odisha on Sunday, forcing tens of thousands of coastal inhabitants
to seek safety in storm shelters.
In the port city of Visakhapatnam, home to two million people, government workers
began removing uprooted trees which had blocked roads, restoring snapped power and
telecoms lines and clearing up debris including sign boards and corrugated iron roofs
which had been ripped off buildings by the strong gusts.
High Street clothing sales take a battering as Indian summer leaves coats on
rails at Marks & Spencer and Next This is Money.co.uk
Clothing sales at Marks & Spencer and Next look set to be the latest casualty of the
Indian summer as new data shows a record low in High Street fashion.
Footwear and clothing were the worst performing categories in September, according to
the BRC-KPMG retail sales monitor. It reports today record declines since April 2012
and March 2013 respectively, casting a pall of gloom over the embattled clothing
retailers.
Marc Bolland, chief executive of Marks & Spencer, has been under intense pressure to
show a raft of initiatives have kick-started growth in his troubled clothing arm.
The warm September weather, which has prompted shoppers to delay buying winter
coats and boots, will not be a welcome development.
David McCorquodale, head of retail at KPMG, said: After a bumper summer, this is a
disappointing outcome for retailers and has undoubtedly reversed some of the sales
gains made in August.

However, if temperatures drop to a more seasonal level this cooler weather will quickly
turnaround retailers fortunes and help them to sell their autumn-winter ranges.
M&S shares fell 3.2p yesterday, closing at 383.9p, while Next dropped 50p to 6390p.
Overall UK retail sales were down 2.1 per cent on an underlying basis from September
2013. On a total basis, sales were down 0.8 per cent, against a 2.4 per cent rise in
September 2013.
This is the weakest performance since December 2008.
GE aircraft unit to buy helicopter lessor Milestone for $1.78 bn Reuters
General Electric Co's aircraft leasing unit announced plans on Monday to buy Dublinbased helicopter leasing company Milestone Aviation Group for $1.78 billion, branching
out into an area tipped for solid growth in coming years.
Milestone, co-founded by NetJets Inc founder Richard Santulli in 2010, owns a fleet of
helicopters worth $2.8 billion and has placed orders worth $3 billion.
The company's helicopters are primarily used in offshore oil and gas industries and for
search, rescue and emergency medical services.
"The addition of Milestone will deepen our domain expertise in aviation and oil and gas,
two critical GE industries," GE Capital Chief Executive Keith Sherin said in a statement
on Monday.
The world's largest aircraft lessor aims to carry out the diversification partly because of
concerns over the value of some current-generation jets, Norman Liu, chief executive of
GE Capital Aviation Services, said in the interview.
The acquisition also, however, comes at a time when GE is trying to reduce exposure to
financing and increase profits from its industrial businesses.
Ebola and food security topic at World Food Prize Associated Press
The West African Ebola epidemic and its impact on food security will be a topic of
discussion as international dignitaries gather for the annual World Food Prize award
ceremony to discuss the challenges of feeding a growing world population. Sierra Leone
and Liberia are among the nations represented at the World Food Prize Foundation's
three-day symposium held each year in conjunction with the awarding of the prize.
More than 2,500 confirmed cases of Ebola and 753 deaths have been reported in Sierra
Leone, the World Health Organization said last week. The country's agriculture minister
for forestry and food security and a special adviser to Koroma, Monty Jones, the 2004
World Food Prize laureate, plans to attend. Quinn said discussion will include the
immediate impact of the Ebola epidemic on food production and distribution in the
countries at the center of the outbreak. The gathered experts also will talk about how
such events affect the ability to provide enough food for an estimated global population
of
9
billion
by
2050,
Quinn
said.
The Food and Agriculture Organization of the United Nations said last week that Ebola
is already reducing the purchasing power of tens of thousands of vulnerable households
in Guinea, Liberia and Sierra Leone, "which means less food on their plates and
increased nutritional risks for families already on subsistence diets," Bukar Tijani, a

regional representative for the FAO in Africa, said in a statement. "Fear and
stigmatization also threaten to reduce agricultural activities, thereby placing food
security
at
risk."
How falling crude oil prices will benefit India ET bureau
Brent crude oil fell below $88 a barrel on Monday, its lowest in almost four years,
aboost for the country, since it imports nearly two-thirds of its requirements.
The slide in crude oil prices to four-year lows is a huge positive for India as the country
depends on imports for more than three-fourths of its consumption. It is expected to
help improve pivotal macroeconomic indicators such as current account and fiscal
deficit besides giving a fillip to energy firms, tyre makers and consumer companies.
India's net imports of crude oil amount to about a billion barrels every year. So, if crude
oil prices average about $100 per barrel in the current fiscal (vs about $106 per barrel in
the first six months of the financial year), the country's import bill will fall by $10 billion
(about Rs 61,000 crore), which is close to one-third of the current account deficit or
CAD in 2013-14. Analysts say that if crude oil averages at $100 per barrel this fiscal,
India's CAD will reduce to 1.3% of GDP from 1.7% in the previous year.
Cooling crude prices will also help bring down fuel under-recoveries (cost of selling LPG
& kerosene below cost), lowering the government's share in the total under-recoveries
and, therefore, resulting in narrowing of fiscal deficit.
RBI sells 65 per cent of Rs 10,000 crore government bonds ET Bureau
The Reserve Bank of India on Monday sold about 65 per cent of Rs 10,000 crore
government bonds stipulated for an unorthodox open market operation or OMO, which
was
primarily
aimed
at
sucking
excess
funds
from
the
system.
These bonds have varying maturities of seven, 12 and 13 years. Yields were priced at
about 20-25 basis points above the liquid ten-year benchmark bond. However, the
central bank did not accept bids for the bonds with three-year maturity as it did not find
any favourable quote. According to bond dealers, the falling bond yields, which move
inversely to prices, may have prompted RBI to conduct the OMO sales. The central
bank, which has a fierce anti-inflation stance, is likely to cut interest rates only if lower
inflation
persists.
Government bond yields are expected to fall further on the latest benign inflation
data and improvement in India's macroeconomic fundamentals. The benchmark yield
may dip to 8.25 per cent or even lower in the next three-six months.