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India's government, fresh from surviving a confidence vote this week, will push to lift restrictions on overseas investors controlling privately-run banks, Finance Minister Palaniappan Chidambaram said.

Stalled legislation removing a 10 percent cap on foreigners' voting rights in banks may be revived before laws on pensions and insurance when parliament convenes next month, Chidambaram said.

“Bills in advanced stages of consideration will be taken up first,'' Chidambaram said in a telephone interview from New Delhi. “We seem to have acquired the political space to take the liberalization process forward.''

The banking index tracking 17 lenders is set for its biggest weekly gain after Prime Minister Manmohan Singh remained in power with support from new allies who replaced communists opposed to foreign investment. The bill would give ING Groep NV, the largest Dutch financial services company, more control over Bangalore- based ING Vysya Bank Ltd. with its 44 percent stake.

“There is likelihood of further reforms,'' said Tushar Poddar, a Mumbai-based economist at Goldman Sachs Group Inc. “Given the limited time at the government's disposal, and the motley group of new allies, reforms are by no means certain.''

Manmohan Singh's five-year tenure comes to an end in May. Amar Singh, whose Samajwadi Party replaced the communists as the government's main ally, said on July 10 he may back legislation easing curbs on foreign companies seeking to expand in insurance, pensions and banking.

Removing Cap

The bill to remove a 10 percent cap on the voting rights of foreign investors in non-state banks is pending in parliament while a parliamentary committee is considering the bill to open the pensions business to overseas investors, Chidambaram said.

The draft bill to raise the foreign investment ceiling for insurers to 49 percent from 26 percent is with the government, he said. The banking and pension bills have been languishing in parliament for three years and the finance minister announced the insurance measures in 2006.

“All three are on the agenda of the ministry of finance,'' Chidambaram said. “We are looking into various aspects of the foreign direct investment regime, trying to see whether further liberalization is possible.''

New York-based American International Group Inc., the world's largest insurer by assets, New York Life Insurance Co. and Prudential Plc, based in London, are among insurers that are restricted to 26 percent stakes in their ventures in India cash advance.

Reviving the reforms may entice Lloyd's of London, the world's largest insurance market, to scale up its operations in India, where it writes about $400 million of business, spokeswoman Louise Shield said July 10.

Greater Role

Manmohan Singh's plans to give overseas companies a greater role in India's financial industry were blocked by his erstwhile communist partners, who this month withdrew support over the nuclear accord with the U.S.

Singh got 275 votes in his favor and 256 against in the confidence vote in the 541-member lower house, a margin that will force Chidambaram to secure backing from opposition parties to ensure the government's pending legislation is approved.

“In a parliamentary democracy, the ruling party reaches out to all opposition parties,'' Chidambaram said.

Chidambaram also said the government will revisit plans to list shares of government-run companies.

“Listing improves governance. There are many companies looking for capital,'' Chidambaram said, without revealing which company will sell shares. “We have to see what the market is like and what the appetite in the market is like.''

India's stock market surged more than fourfold in the first 3 1/2 years of Singh's administration as the 75-year-old prime minister presided over an economic expansion that averaged 8.9 percent a year, the fastest since independence in 1947.

Record Sales

This year, foreign investors, who bought a record $17.2 billion of stocks in 2007, have turned sellers as the benchmark equity index has lost about a third of its value. The central bank expects growth in Asia's third-largest economy may slow to 8 percent this year, dragged down by record high oil prices.

To contain inflation, Reserve Bank of India Governor Yaga Venugopal Reddy has raised interest rates 15 times and ordered banks to set aside more reserves eight times since October 2004. The governor will unveil the next monetary policy statement on July 29, which will be Reddy's last policy announcement if he retires as scheduled in September.

India will announce its decision regarding the country's next central bank governor “well in time,'' Chidambaram said.

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Gov. David Paterson was admitted to Mount Sinai Medical Center in New York City Tuesday morning after he began experiencing migraine-like symptoms.

The governor’s office said in a short statement that Paterson was evaluated and preliminary tests were found to be normal. He is expected undergo more tests later in the day, according to the statement cash advance.

Paterson, who replaced Eliot Spitzer as governor in mid-March, was to deliver a commencement speech at Columbia University Tuesday afternoon.

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Federal Reserve policy makers, sensing both renewed inflation dangers and a possible economic boost from government rebate checks, may be nearing a pause in interest-rate cuts after the fastest reductions in two decades.

In remarks this week, Fed Governor Kevin Warsh, San Francisco Fed President Janet Yellen and three other district- bank presidents voiced concerns about rising prices. Harvard University economist Martin Feldstein, who for almost 30 years has headed the group that decides the dates of recessions, called for an end to Fed rate cuts.

Investors are increasingly taking such talk, along with economic data and company earnings, as signs that the Fed will leave interest rates unchanged for the rest of the year after a quarter-point cut on April 30. The central bank has already reduced rates three times this year, to 2.25 percent.

“We are close to the end of rate cuts,'' said Dean Maki, chief U.S. economist at Barclays Capital Inc. in New York. “The economy will be improving. Also, the inflation pressures are only intensifying at this point.''

While Maki, a former Fed economist, is forecasting the Fed will stop for the rest of the year after a half-point cut to 1.75 percent this month, the chance of a quarter-point reduction increases if financial markets improve, he said.

Chairman Ben S. Bernanke and the rate-setting Federal Open Market Committee next meet April 29-30 in Washington.

Stocks Rally

Stocks rallied and Treasuries dropped this week as investors reacted to earnings results that topped analysts' estimates and pared their anticipation of Fed rate cuts. The Standard & Poor's 500 Index advanced 4.3 percent, the most since February, stoked by results from companies from Citigroup Inc. to Google Inc. to Caterpillar Inc.

Two-year Treasury notes posted their biggest weekly decline since 2001, with yields climbing to 2.13 percent from 1.74 percent a week before.

The Fed has lowered the overnight lending rate between banks by 3 percentage points since September. Two points of those cumulative cuts came in the first 11 weeks of 2008, including two cuts by 0.75 percentage point, the largest since the federal funds rate became the principal tool of monetary policy around 1990.

`Be Alert'

Warsh, in a speech about financial markets on April 14, included a warning that “we also need to be alert to risks to price stability,'' citing higher food and fuel prices that are “putting upward pressure on core inflation and inflation expectations.''

Yellen, a former Fed governor and chairman of the White House Council of Economic Advisers, told reporters April 16 that the Fed “will have to be careful not to leave monetary accommodation in place longer than it is needed.''

Three other Fed bank presidents known for their more- forceful anti-inflation stances reiterated their concerns on prices paydayloans.com.

Philadelphia Fed President Charles Plosser said the federal funds rate is already low enough to support growth, while Dallas Fed President Richard Fisher said that he's hesitant to lower rates further and warned against “inflating'' the economy out of the credit crisis. Both men voted against last month's 0.75 percentage point rate cut.

Richmond Fed President Jeffrey Lacker, who dissented four times in 2006 in favor of higher rates, said yesterday that he's “uncomfortable'' waiting for a contraction in the U.S. economy to bring down inflation.

`Nearing the End'

“The Fed is nearing the end of the easing process,'' Pacific Investment Management Co. fund manager Paul McCulley told reporters following a speech in Charlotte, North Carolina, today. “I think they have signaled that.''

At the same time, the Fed isn't saying that the financial- market crisis is over and that the economy is out of the woods. At a Washington press conference April 12 held in connection with the Group of Seven meetings, Kohn said that the “turmoil has not yet settled down'' and the situation is still “fragile.'' Bernanke and Yellen said this month that the economy may contract in the first half, though it may rebound in the second half.

Also, in a potential sign of renewed financial-market pressures, the three-month London Interbank Offered Rate jumped from 2.73 percent on April 16 to 2.91 today. The British Bankers' Association said it will speed up a review of how money-market rates are set amid concern that some contributors are providing misleading quotes.

Bear Stearns

The Fed last month, in its first extension of credit to non- banks since the Great Depression, opened up lending to Wall Street securities firms at the 2.5 percent discount rate and agreed to rescue Bear Stearns Cos. from bankruptcy. The central bank also began auctioning up to $200 billion in loans of Treasury securities.

“I wouldn't rule out the idea of the Fed either increasing the size of their current operations or even switching to other possible tools to ease the situation,'' said Maki of Barclays. “I would be surprised if they're feeling more comfortable on the term liquidity issue at this point.''

Pimco's McCulley said the Fed has “stressed that a lower fed funds rate by itself as a solo tool can't cure all that ails us.''

That's an “open invitation for fiscal authorities, regulatory authorities and the private sector to pick up some of the load,'' he said. “It doesn't mean the Fed won't ease a lot more if it has to, but it would prefer to have some partners, if you will.''

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The Portland Business Alliance has endorsed both City Commissioner Sam Adams and Sho Dozono, considered the top mayoral candidates in a 13-person field, in the May 20 primary.

The PBA also opted to not endorse a candidate in one of the Portland City Council races and endorsed Nick Fish in the other. The group further endorsed Commissioner Randy Leonard, who's running for re-election.

Other endorsements include Deborah Kafoury for the Multnomah County Commission's first position and Carla Piluso for the commission's fourth position. The group issued no endorsement for the third position race.

In Clackamas County, the group endorsed current chair Lynn Peterson for re-election and Martha Schrader for re-election to the commission's third position. It did not endorse candidates for the county's open fourth and fifth positions.

Metro Councilor Rex Burkholder earned PBA's endorsement for the fifth position race.

Megan Doern, a PBA spokeswoman, said the dual endorsement of Adams and Dozono isn't that unusual because of the multi-candidate field running in the primary free credit report instantly.

"We have great relationships with both of them, we know them well and they both have a strong understanding of what business means to the Portland region and economy," Doern said.

"The Alliance has a positive working relationship with each candidate and has found that both candidates have a number of attributes that would benefit the city, said Sam Brooks, chairman of the group's board of directors, in a statement.

The PBA analyzed candidates' plans for building a strong economic base for the city and creating family-wage jobs, as well as their commitment to working with the business community.

Group members interviewed 29 candidates. Its endorsements must be ratified by at least two-thirds of PBA board members at the meeting where the board issues its choices.

PBA represents more than 1,300 businesses in the region.

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Jean-Claude Trichet's European economy may be reaping the rewards of risk aversion.

As the U.S. teeters on the brink of a recession after the end of a five-year housing boom, growth in the 15 nations that share the euro is poised to outpace the American economy for a second straight year.

The region's resilience lets Trichet, who today presides over the European Central Bank's monthly policy meeting, focus on fighting inflation instead of cutting interest rates. Because Europeans save more than Americans and splurge less on houses and stocks, the continent is better placed to withstand the global credit squeeze without the need for lower borrowing costs.

“To be thrifty is a good thing and definitely a plus for the European economy in this tough period,'' said Jean-Michel Six, chief European economist at Standard & Poor's in London. “The attitude to debt and credit is clearly very different between the U.S. and Europe.''

U.S. growth will slow to 1.5 percent this year from 2.2 percent in 2007, according to the International Monetary Fund. The Washington-based fund forecasts the euro-area economy will expand 1.6 percent after 2.6 percent last year.

While that has pushed the euro to a record against the dollar, German companies have compensated by improving efficiency and reducing labor costs. Adidas AG, the world's second-largest sporting-goods maker, reported a 63 percent jump in fourth- quarter profit yesterday, and sports-car maker Porsche SE said March 4 that first-half profit rose 44 percent.

`Best Performance'

“We are seeing the best performance in years despite the exchange rates,'' ECB council member Nout Wellink said on Feb. 27. The euro has risen 16 percent against the dollar in the past year, reaching $1.53 for the first time yesterday.

Growth in Europe's service industries accelerated in February, unemployment fell to the lowest since records began in 1993 and business confidence in Germany, the region's largest economy, unexpectedly rose for a second month.

The economy's performance will allow the ECB to keep its benchmark rate at a six-year high of 4 percent today, said all 54 economists surveyed by Bloomberg News. The ECB announces its decision at 1:45 p.m. in Frankfurt and Trichet, 65, briefs reporters 45 minutes later. Inflation is running at 3.2 percent, the fastest since the euro's debut in 1999.

Contrast With Fed

The ECB's inflation-fighting zeal contrasts with the growth- oriented policy of the Federal Reserve. The Fed has cut its key rate by 2.25 percentage points as the U.S. economy reels from the worst housing recession in a quarter century. The slump has made banks reluctant to lend and caused credit markets to seize up in August free credit report online.

U.S. manufacturing shrank at the fastest pace in almost five years last month and in January U.S. home sales fell to the lowest level since records began.

The euro area isn't completely immune, given the U.S. is the second-biggest customer for its goods. German exports to the U.S. dropped 5.9 percent last year.

Spain, Ireland and the Netherlands may also be tripped up by housing busts of their own, while Morgan Stanley forecasts the Italian economy will slip into a recession this year.

“The economy seems set for a substantially weaker 2008,'' said Howard Archer, chief European economist at Global Insight Inc. in London, who predicts the ECB will start cutting rates in June. The central bank is likely to lower its forecast for 2008 growth to 1.8 percent from 2 percent today, Archer said.

Less Debt

Still, European consumers are more reluctant than their American counterparts to run up debt, and have more savings to support them when expansion falters.

European household debt amounts to 90 percent of gross domestic product, compared with 134 percent in the U.S., according to estimates by Six at Standard and Poor's. Consumers in Europe save about 14 percent of their disposable income; Americans' savings rate is about zero.

While lower debt means Europe's economy is less likely to benefit from market booms, it also helps it avoid busts.

“If you haven't borrowed then you're not really exposed to the debt cycle going wrong,'' said David Mackie, chief European economist at JPMorgan Chase & Co. in London.

Europe's resilience marks a change from 2001, when a U.S. recession dragged the economies of Germany, France and Italy down with it. Since then, European companies and governments have taken steps to overcome structural obstacles to growth.

35-Hour Week

Germany in 2003 cut jobless benefits for the first time since World War II and in France, President Nicolas Sarkozy has effectively scrapped the 35-hour working week. Companies such as Siemens AG and Daimler AG have forced staff to work longer for less pay.

Profit growth has accelerated since 2003 to about 6.5 percent, according to JPMorgan, encouraging companies to hire.

With exports to Asia and the Middle East also helping manufacturers cope with the stronger euro, Europe may come out of the credit squeeze in better shape than the U.S., said Klaus Baader, chief European economist at Merrill Lynch & Co. in London.

“The euro area is well placed to weather the storm,'' said Baader.

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Zinfi Technologies Inc. hired Sugata Sanyal as president and CEO.

The Pleasanton company was previously run by Art Battacharya, its general manager of operations. Battacharya will keep his GM job at the company, which was started in 2003.

Sanyal's last job was as a vice president at SonicWall Inc cash advance. He also worked at Philips Electronics.

Zinfi sells software development, network management and help desk support.

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