2 Boats Carrying Migrants Capsize On Way To Europe

Indian IT outsourcers want a bigger byte out of Europe

Coast guard spokesman Marco Di Milla says “a good number” of the estimated 200 people have been rescued. He says the coast guard received a satellite phone call from the boat and was able to locate it based on the satellite coordinates. A Maltese armed forces statement says that since the boat was in Maltese search and rescue waters, a Maltese aircraft was sent up and reported that the boat had capsized and that “numerous” people were in the water. The aircraft dropped a life raft and a patrol boat soon arrived at the scene. ALSO THIS WEEK: Italy detains suspected boat captain as death toll hits 275 Egypt’s state news agency says the coast guard received a call for help Friday from a boat carrying the migrants and naval forces went out to the rescue. It said the survivors were 72 Palestinians, 40 Syrians, and four Egyptians. The nationalities of those who drowned were not immediately available. Officials said rescue efforts continued. At least 70,000 Syrians are registered in Egypt as refugees. Many non-registered, including thousands of Palestinians who also fled the war in Syria, use the country as a stop before making the perilous sea trip to Europe. Thousands of Egyptians also make the sea journey to flee poverty and high unemployment. SHARE 83 CONNECT 38 TWEET 8 COMMENTEMAILMORE Copyright 2013 The Associated Press.

GTY 183712205

Europe accounts for roughly one-third of revenue for India’s $108 billion IT services industry, although Britain has long made up the bulk of that share. In continental Europe, Indian IT firms are making their deepest inroads in northern European countries where English is widely spoken. However, language barriers and tight labour rules mean Europe is yet to surpass even Britain as a revenue source for Indian IT firms, which are expected to rely on acquisitions to build up their offerings in big markets such as France and Germany. India is also not yet compliant with a European data privacy directive, which limits some of the work that can be moved to the country. “Europe has been a very conservative market compared with the U.S.,” said Sharat Kumar, head of delivery for Europe at No. 5 Indian player Tech Mahindra, whose European clients include food giant Nestle SA and aerospace firm EADS . “The customers are conservative in starting the initiative, but once they do, these are the customers that don’t just go back and forth or drop it, so what we’ve seen is that there is a lot more stability in the European customer,” he said. For European companies, many of them battered by a prolonged economic slowdown, Indian IT firms offer cost advantages to using local vendors or doing the work in-house. Global rivals such as IBM and Capgemini also have big operations in India that can take advantage of lower costs. Indian vendors are also taking on increasingly complex work. “To a certain extent, the skills shortage in continental Europe is driving the growth for offshore openness,” said Katharina Grimme, a principal consultant with outsourcing advisory Pierre Audoin Consultants (PAC) in Cologne, Germany. LOCAL CHALLENGES Indian IT’s progress in Europe comes at the expense of local vendors, which according to NelsonHall are seeing flat sales. In 2009, India’s TCS ranked just 21st in IT services revenue from Europe, the Middle East and Africa, but rose to 11th at the end of 2012, according to PAC. Indian rivals Wipro and Infosys ranked 18 and 23, respectively, in 2012, after not cracking the top 25 in 2009. To address labour issues and speed growth in Europe, Indian companies have been acquiring local firms.

IMF and Europe Part Ways Over Bailouts

“Greece is the saddest case of all,” Mr. Borges said. “The program was wrong from the start.” Three years on, troika staffers now recount how they were involved in shouting matches over Greek growth projections, bank restructurings and public debt-to-output ratios. “We had to negotiate the figuresThat’s not how it is supposed to work,” a European official said, referring to hourslong debates about projecting Greece’s 2013 growth rate. A big source of tension has been the IMF’s Debt Sustainability Analysis, which is heavily based on projections of the ratio of government debt to economic output. IMF rules prevent the fund from giving aid to states unable to repay their debts, so this analysis has been critical in ensuring the fund continues lending. But the analysis wasn’t well regarded by some officials. One IMF official called it “a joke,” a commission official described it “a fairy tale to put children to sleep” and a Greek finance ministry official said it was “scientifically ridiculous.” Mr. Borges politely said the exercise was “highly subjective.” An IMF review in June of Greece’s first bailout contained a scathing critique of the commission’s role in the troika. It also admitted that the fund had bent its own rules to lend to Greece. The report was received badly in Brussels.

Diesel Flow to Europe to Cap Winter Price Surge

U.S. refiners currently have about a $2-a-barrel advantage over their European counterparts as surging crude production provides them with cheaper feedstock, Torbjorn Tornqvist, chief executive officer of Gunvor Group Ltd., said Oct. 1 in a speech at the Oil & Money conference in London. Plant Closures I expect the next two years we will see probably five, six plants being closed in Europe, accounting for about 500,000 to 700,000 barrels a day of refining capacity, he said. Gunvor, an oil-trading company with offices in Cyprus and Geneva, bought refineries in Belgium and Germany last year from Petroplus Holdings AG, Europes largest independent refiner before it became insolvent. MOL Hungarian Oil & Gas Plcs Mantova refinery in Italy last week became the latest European facility to close, citing the unfavorable economic environment that the refining business faces in Italy. It joined 15 sites in the region to have shut since 2008, according to the IEA. Chartering of ships to haul diesel from the U.S. to Europe climbed in the third quarter to the most since Bloomberg began compiling the data last year, as refiners increase production amid North Americas oil shale boom. Europe imports about 16 percent of the diesel it uses, IEA data show. Russia , which supplied a third of Europes imported diesel in 2012, according to the IEA, has also entered seasonal maintenance, taking offline 21 percent of its refining capacity in the week ended Oct. 2, according to the countrys Energy Ministry. When the overhauls end in November, Russian flows of the fuel will rebound, according to the survey of refining executives. Russian Diesel Russia, the worlds largest oil producer, has doubled exports of high-quality diesel to Europe this year to about 650,000 barrels a day, Facts Globals Parker said. OAO Rosneft, the worlds largest publicly traded oil producer by volume, is spending $25 billion on refinery upgrades.