Archive for November, 2008

U.S. govt steps in to save Citi, markets rally

Monday, November 24th, 2008

The United States agreed to inject $20 billion of new capital to rescue one of the world’s top banks and European leaders said on Monday they would stand by European industry, especially the automobile sector.

Washington, also under pressure to rescue its own ailing motor industry, effectively guaranteed most of Citigroup Inc’s, potential $306 billion losses on high-risk assets. It was the biggest bank bailout yet and a measure of the crisis sweeping the world.

The Gulf emirate of Dubai, home to a new luxury mega-resort built on a manmade palm-shaped island visible from space, announced it was reining in a building spree symbolic of extravagant boom years leading up to the current crisis.

The United Arab Emirates began to bail out Dubai’s lenders and consolidate its financial sector.

Concerns Europe has entered a deep recession that could last well into next year were reinforced when a key survey of German

corporate sentiment hit its lowest level in nearly 16 years in November.

French President Nicolas Sarkozy said after talks with German Chancellor Angela Merkel their “determination to help European industry and notably the automobile industry is total”.

The Citigroup intervention had been widely expected in some form, but Asian markets trimmed losses, while European stocks rose 4 percent on news the U.S. Treasury would not allow the number two U.S. bank to fail in the way of rival Lehman Brothers.

U.S. stock index futures pointed to a higher opening on Wall Street. S&P 500 futures were up one percent.

“The move will help the markets not implode today,” said Rory Robertson, interest rate strategist at Macquarie in Sydney.

“It’s all good stuff but the fact that the Fed has to bail out one of the biggest banks in the world is not exactly a vote of confidence.”

Citigroup has the farthest international reach of any U.S. bank, with operations in more than 100 countries. The bank was widely felt to be too big to be allowed to fail.

The plan calls for Citigroup, America’s second-biggest bank, to issue $27 billion in preferred shares to the U.S. Treasury and the Federal Deposit Insurance Corp.

The Fed, Treasury and FDIC in return will shoulder most of the potential losses on Citigroup’s $306 billion portfolio of debt assets, beyond an initial $29 billion in losses which Citigroup would be responsible for.

“The U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy,” the Federal Reserve, the Treasury Department and FDIC said in a joint statement.

WIDESPREAD RESPONSE

Citigroup, whose shares slumped 60 percent last week, was not the only bank having to raise more funds.

Asian-focused UK bank Standard Chartered said it planned a $2.7 billion rights issue to boost its capital reserves, while other banks were also expected to raise money.

Government sources said Turkey was still talking with the International Monetary Fund on the scale of a new loan accord. Turkey is not under the same strains that have forced other emerging markets countries to seek IMF aid, but has begun to see a sharp slowdown in its $700 billion economy and its currency has lost a third of its value in two months.

The global financial crisis has torn through the Arab Peninsula, until recently thought immune due to massive sovereign savings and earnings from energy exports, with almost the same violence as in Europe and North America.

In a major policy shift, the United Arab Emirates federal government will inject capital into its Emirates Development Bank, a newly created rescue vehicle preparing to absorb merging Islamic lenders Amlak and Tamweel, a leading official said.

A cash injection would represent the first big step by the federal government, dominated by the conservative oil-exporting emirate of Abu Dhabi, to bail out high-flying banks in neighbouring Dubai, suffering under the global crisis.

The Munich-based Ifo economic research institute said its German business climate index, based on a monthly poll of around 7,000 firms, declined to 85.8 in November from 90.2 in October, the biggest month-on-month drop since Sept. 11, 2001.

“It seems as if a wildfire is running through the German economy at enormous speed,” said Carsten Brzeski, an economist at ING Financial Markets. “If you think the third quarter was bad, just wait for the fourth quarter. It might be a disaster.”

UK STIMULUS PACKAGE

Aides said U.S. President-elect Barack Obama was considering delaying a campaign promise to rescind tax cuts on high-income Americans, while the British government was set to announce a stimulus package including temporary tax cuts.

Obama, who takes over from President George W. Bush on Jan. 20, is ready to announce his top economic team on Monday, holding a news conference at 11 a.m. in Chicago.

He plans to nominate Timothy Geithner, president of the New York Federal Reserve Bank, as Treasury secretary, a transition official said. Lawrence Summers, 53, Treasury secretary in the Clinton administration, will help shape policy as director of the White House National Economic Council.

The potential size of the latest U.S. stimulus plan appears to be growing from the $100 billion to $300 billion previously suggested by congressional leaders. One influential Democrat, Sen. Charles Schumer of New York, said on Sunday a package of up to $700 billion was needed to support the American economy.

Britain is expected to announce a 20 billion pounds ($30 billion) package, which will cut sales tax and offer help for businesses, low earners and struggling home owners.

“I don’t see this as a gamble. I see this as necessary, responsible action,” Prime Minister Gordon Brown told the BBC.

Lung Cancer pill as good as Chemo

Saturday, November 22nd, 2008

Iressa, the lung cancer pill, has shown surprising results for patients with advanced lung cancer where it has been at least as effective as a standard chemotherapy treatment, researchers have reported.

The drug also, known as Gefitinib, works as well as chemotherapy as a second-line treatment for lung cancer, according to an international Phase III clinical trial, led by researchers at the University of Texas’ M D Anderson Cancer Center.

However, in contrast to earlier Iressa findings, the study reported on Thursday showed that there was no additional survival benefit for patients who expressed an elevated level of the epidermal growth factor receptor (EGFR) mutation.

“A pill, with less side effects, taken once a day, has similar activity to traditional chemotherapy given by vein every three weeks,” said lead researcher Dr Edward Kim, an assistant professor at the M D Anderson Cancer Center in Houston. This finding should reassure doctors that they are not compromising effective therapy by using a pill, Kim said.

Iressa is not available in the United States, but a similar drug, Tarceva, is. Iressa was first developed by AstraZeneca, but it failed to meet expectations.

The National Cancer Institute ended clinical trials of the drug in 2005 because it failed to prolong the lives of lung cancer patients.

“Based on our findings, I’m hopeful that Iressa can return as a treatment for lung cancer in the United States, offering this some patients a therapy with far fewer side effects,” said Kim.

The study is expected to offer both physicians and patients some confidence in another biological oral therapy, erlotinib, commercially known as Tarceva, that hits similar targets as Iressa.

The Phase III international study enrolled 1,466 lung cancer patients from 149 centers in 24 countries. Of those enrolled, 1,433 were evaluable. All had either locally advanced or metastatic disease and had been previously treated for their cancer. Patients were randomized to receive either Iressa or Docetaxel every three weeks.

The study had two primary survival endpoints: in all treated patients and in those whose tumors had high EGFR gene copy number, explained Kim.

The results showed, median overall survival for those receiving Iressa was 7.6 months and one-year survival was 32 per cent, compared to 8 months and a 34 per cent one-year survival for those taking chemotherapy.

In an assessment of quality of life, Iressa patients experienced far fewer side effects, with the most common being a rash and diarrhea. In contrast, patients taking Docetaxel experienced low blood count, infection, and hair loss.

In the subgroup of 174 patients with a high EGFR gene copy number, median overall survival in the Iressa arm was 8.4 months and one-year survival was 32 per cent, versus 7.5 months overall survival and a one-year survival rate of 35 per cent for those taking chemotherapy.

“Our study found that patients who received Iressa and whose tumors had EGFR mutations will have an improved response rate and progression-free survival compared to Docetaxel, but overall survival was similar in both treatment groups. In contrast,” said Kim.

Retirees hit by “longevity risk”

Saturday, November 22nd, 2008

Like many other elderly Americans, Edie Stark has been hard hit by the meltdown in U.S. financial markets. She is 84 and has been worried a lot lately about outliving her savings.

A retired nurse, Stark is a prime example of what financial planners coldly call “longevity risk,” a reference to the need for a secure income and lasting savings at a time when growing numbers of Americans can live for 30 years in retirement.

Life expectancy in the United States has already reached a record high of 77.8 years, up from 70.8 in 1970, according to the U.S. National Center for Health Statistics. Fueled by continuing health gains, the U.S. Census Bureau projects life expectancy in the world’s wealthiest country will reach 79.2 years by 2015.

Stark said she and her husband had seen more than 50 percent of their retirement assets wiped out since the stock market started tanking several months ago.

She still plans to see out the end of her days with her 88-year-old husband at the Palace, an upscale retirement complex where they live on the palm-fringed southern outskirts of Miami.

She acknowledges that may not be possible, however, as her life savings vanish.

“I have fixed expenses so I can add it up and tell you how many years we can live unless the market comes up,” said Stark.

“We wanted to have money to leave our children. That’s not possible anymore,” said Stark, whose husband suffers from dementia and is cared for in an assisted living facility at the Palace.

Dorie Ryder, 89, a retired school teacher and neighbor of Stark’s at the Palace, said she had lost about 25 percent of her assets to the recent stock market downturn.

She has fond memories of better times when she and her husband lived just a block away from the home of former President Richard Nixon on nearby Key Biscayne.

But Ryder said she is now contemplating a move into a Miami-area apartment, where she’d live alone but pay less rent than the $3,500 she forks out monthly at the Palace.

“I just do the best I can and I’m worried,” said Ryder, who has a small pension. “I don’t know how long I’ll be able to stay here.”

Coping with financial fears is not unique to the elderly, especially at a time of record home foreclosure filings, crumbling real estate values and rising unemployment.

It can be especially painful for the elderly, however, even for those who are still a long way from being destitute.

“Money anxiety when you’re older is just different than when you are young. You don’t have a chance to recover,” said Teresa Ghilarducci, a retirement expert and professor of economic policy analysis at New York’s New School for Social Research.

DYING OF WORRY

“I predict that this spike in anxiety around the security of money is actually going to lead to more sickness,” she added. “People are going to die of worry.”

Experts say millions of middle- and upper-class retirees across the country face mounting insecurity due to exposure to stocks instead of “safe money” investments like short-term bonds and fixed annuities.

Many were lured into the equities because they offered a chance to double their money from 2003 to 2008. Others face foreclosures because they over-borrowed against their homes before the U.S. housing meltdown.

“Probably half our clients are retired and yes, we have a lot of very worried, concerned clients,” said Peggy Cabaniss, president of HC Financial Advisors in Lafayette, California.

“Their leading concerns are, No. 1, that they’re going to run out of money,” she said.

Like the American Psychological Association, Cabaniss said she tells her clients not to get caught up in blow-by-blow media reports about swooning markets and dour economic news.

“The way things are presented it sort of sounds like and feels like the end of the world,” she said.

But avoiding bad news is tough when it affects life savings and people’s retirement security hangs in the balance.

Ghilarducci and Alicia Munnell, director of the Center for Retirement Research at Boston College, say the erosion of retirement savings due to stock declines is something that should be triggering alarm bells.

The United States is the only developed, industrialized and democratic country in the world where traditional pension plans with a nearly guaranteed stream of income are being replaced by 401k plans, in which retirees bear many risks from volatile market investments, Ghilarducci said.

“It’s disastrous,” she said, referring to the outlook for retiring or soon-to-be retired “baby boomers.”

“Late boomers will fare far worse than their parents and grandparents in terms of replacing their income in retirement, mainly because of the erosion in the employer pension system,” Ghilarducci said.

“It highlights the flaws in our retirement income system,” said Munnell.

“The idea that we have people increasingly and solely dependent on accounts which vary with the ups and downs of the stock market just doesn’t make for a very sensible retirement arrangement,” she added.

“My view is that it was always going to take the real suffering of a whole cohort before anybody was going to be willing to do anything to improve the retirement system. And I think the financial crisis may have accelerated that process.”

Global warming predictions may be overestimated

Friday, November 21st, 2008

A detailed analysis of black carbon, in computer climate models, has suggested that those models may be overestimating global warming predictions.

Savanna fires occur almost every year in northern Australia, leaving behind black carbon, which is the residue of burned organic matter that remains in soil for thousands of years.

A new study, by researchers at Cornell University, quantified the amount of black carbon in Australian soils and found that there was far more than expected, according to Johannes Lehmann, a Cornell professor of biogeochemistry.

As a result of global warming, soils are expected to release more carbon dioxide, the major greenhouse gas, into the atmosphere, which, in turn, creates more warming. Elimate models try to incorporate these increases of carbon dioxide from soils as the planet warms, but results vary greatly when realistic estimates of black carbon in soils are included in the predictions, the study found.

Soils include many forms of carbon, including organic carbon from leaf litter and vegetation and black carbon from the burning of organic matter.

It takes a few years for organic carbon to decompose, as microbes eat it and convert it to carbon dioxide.

But, black carbon can take 1,000-2,000 years, on average, to convert to carbon dioxide.

By entering realistic estimates of stocks of black carbon in soil from two Australian savannas into a computer model that calculates carbon dioxide release from soil, the researchers found that carbon dioxide emissions from soils were reduced by about 20 percent over 100 years, as compared with simulations that did not take black carbon’s long shelf life into account.

The findings are significant because soils are by far the world’s largest source of carbon dioxide, producing 10 times more carbon dioxide each year than all the carbon dioxide emissions from human activities combined.

Small changes in how carbon emissions from soils are estimated, therefore, can have a large impact.

The study quantified the amount of black carbon in 452 Australian soils across two savannas. Black carbon content varied widely, between zero and more than 80 percent, in soils across Australia.

“We know from measurements that climate change today is worse than people have predicted,” said Lehmann. “But this particular aspect, black carbon’s stability in soil, if incorporated in climate models, would actually decrease climate predictions,” he added.

Obama must say if he endorses G20 view on slowdown: Chidambaram

Thursday, November 20th, 2008

inance Minister P. Chidambaram Tuesday said India and other like-minded nations would like to know if the incoming Barack Obama administration in the US endorses the views expressed at the G20 Summit on financial crisis last weekend.p-chidambaram Obama must say if he endorses G20 view on slowdown: Chidambaram

“It would be reassuring,” the finance minister said, referring to the summit hosted by US President George W. Bush in Washington but to which his soon-to-be successor Obama had declined an invitation, saying there could be only one US president at a time.

“It’s not quite clear to us whether the incoming administration is fully on board on what the outgoing administration has put on the table,” the finance minister said, adding: “Otherwise it was a good beginning.”

Chidambaram said another “regret” at the Summit, where the Indian side was led by Prime Minister Manmohan Singh, was the failure to have a global oversight mechanism to indicate the problems without the prejudice of individuals.

At the same time, he said, the role of oversight mechanism that was proposed was not to regulate - which had to be at the national level - but to point out where the problems were so that swift remedial action could be taken.

Nevertheless, he said, a satisfactory outcome was the fact that the rich nations realised that developing countries, too, had a role to play in finding ways to end the current global financial crisis.

“G7 recognised, even if belatedly, that G7 does not have a solution,” said Chidambaram, who also attended the Summit along with Planning Commission Deputy Chairman Montek Singh Ahluwalia and senior officials from the ministries of finance and commerce.

“G20 has come to stay as the single most important forum to address the problem and to find a solution for the world.”

Sensex dips below 9k level again; slid 327 pts in early trade

Wednesday, November 19th, 2008

The Bombay Stock Exchange benchmark Sensex on Tuesday extended its downslide and dipped below 9,000 points level again by losing over 327 points in early trade onincreased selling by foreign funds in heavy-weight stocks. sensex-two-year-low Sensex dips below 9k level again; slid 327 pts in early trade

Largely on concerns of growing global recession.

The 30-share index, which had lost nearly 1,250 points in the past four sessions, moved down by another 327.09 points to 8,963.92, a level last seen in October with shares of banking, metals and oil and gas leading the fall.

The National Stock Exchange’s Nifty also fell by 89.70 points to 2,709.85.

Sentiments suffered another jolt on worsening global economic outlook after reports of more economies slipping into recession.

Stock brokers said overnight weakness in the US and similar trends on the other Asian bourses, mainly triggered selling by jittery foreign funds in Mumbai.

They said weak Indian rupee, which depreciated by 29 paise to 49.63 against the dollar, also put pressure on the stock prices.

Major losers, which pulled the Sensex down, were Reliance Industries, Reliance Infra, RCom, Infosys Technologies, Satyam Computers, ICICI Bank, State Bank of India, HDFC Bank, ACC, Larsen and Toubro, BHEL, Maruti, Ranbaxy and Bharti Airtel.

Meanwhile, the US Dow Jones index closed 2.63 per cent down, while London FTSE was down by 2.38 per cent in the last session, Hong Kong’s Hang Seng index slided by 3.17 per cent while Japan’s Nikkei shed nearly one per cent in early trade on Tuesday.

Robots May Come to Aging Boomers’ Rescue

Wednesday, November 19th, 2008

In the not-so-distant future, American seniors may turn to helpful, uncomplaining robots to fill the worrisome “care gap” that many face today.

One of these autonomous devices, called the uBOT-5, is already capable of carrying out simple tasks while it monitors the home environment. The robot can even spot trouble — such as a person falling down — and call 911 if necessary.

The freestanding device can also bring a faraway loved one into an aging person’s home via video Internet hook-up.

“So, if I’m at work, and it’s lunch hour and I want to poke in on Dad, I can get on the Internet and basically ’step inside’ the robot,” said uBOT-5 co-inventor Rod Grupen, who directs the Laboratory for Perpetual Robotics at the University of Massachusetts, Amherst. With their face appearing via video on the front of the robot’s head, the virtual visitor can converse with their loved one while moving the robot around, doing some cleaning, for example, or retrieving a dropped TV remote.

Any “authorized user” can jump into and guide the robot, Grupen said. “So, if you can’t get to your doctor, your doctor can now come to you,” he said. In fact, the UMass team hopes that the uBOT-5 will someday be capable of running simple medical tests, such as measuring blood pressure or blood sugar.

And because it’s fully mobile, with Segway-like wheels, virtual visits from others should include much of the house, and beyond. “Your granddaughter on the West Coast can get into the robot and visit with you outside in the garden, you can have a two-way conversation with audio/video, hold hands and go show them the flowers you just planted,” Grupen said.

There’s a huge and growing need for robotic home assistants that might help care for the elderly or disabled and allow them to stay in their homes, Grupen believes. According to U.S. Census figures, the number of Americans age 65 or over will double by 2030, and two-thirds will need some form of long-term care. At the same time, there’s a dearth of nurses and home health-care aides to care for them; experts predict a shortage of 800,000 nurses by 2020.

The uBOT-5’s design was inspired by the human body. Its myriad sensors mimic human eyes and ears, constantly scanning its environment. It is even programmed to detect and respond to worrisome aberrations, including a fallen, unresponsive human. The robot’s arms are each capable of handling 2.2-pound loads, and they can extend to reach high or pick things up off the floor (a dropped pill bottle, a package in a foyer, for example). The robot can lie prone to scoot itself under a bed (and then right itself), and it may even someday help with household cleaning and grocery shopping, Grupen said.

And the cost? Right now, the prototypes at UMass cost $65,000 apiece, but Grupen envisions a day when commercial versions would be sold for $5,000 plus a monthly Internet hook-up fee, much like today’s computers.

And the uBOT-5 isn’t the only such device in the pipeline. Over at Massachusetts Institute of Technology, researcher Nicolas Roy, at the institute’s Computer Science and Artificial Intelligence Laboratory, has developed an “autonomous wheelchair” that only requires a command to whiz users from one spot to another in a hospital or nursing home.

When first delivered to a facility, the wheelchair — rigged out with high-tech scanning software — has no knowledge of the particular layout. But staff will uncrate it, turn it on, and give it a verbal guided tour, walking it past different rooms and nursing stations.

“You talk to it like you’d talk to a new person, a new nurse. And as a side effect of the thing being walked through the facility once or twice, the wheelchair has now been demonstrated a route between all the points,” explained co-developer Seth Teller, who helps lead the lab’s Robotics, Vision and Sensor Networks Group.

After that, a wheelchair-bound stroke patient or quadriplegic need only say, “Take me to Room 451″ for the chair to understand and then do just that. The device will be launched as a prototype ready for testing in a Boston-area nursing home within two years, Teller said.

Finally, at Georgia Tech, researchers led by assistant professor Charlie Kemp are making their own home-care robots, inspired by the agile intelligence of service dogs.

“We’re using service dogs to answer three important questions: What tasks would be good for a [home] robot to perform? How should people interact with the robot, to tell it to do these tasks? And how can the robot actually perform these tasks, given the complexities of the home?” Kemp said.

Service dogs and the disabled people they help are providing the answers. The new robot is being designed to move about and perform tasks such as opening drawers, turning doorknobs and working light switches, Kemp said. Users indicate what they’d like done by using a laser pointer, and homes are modified slightly to help the robot, just as homes are subtly tweaked to aid service dogs. “Things like tying a small towel to a doorknob” to facilitate grasping, Kemp explained.

The robot may not ever replace a great service dog, but Kemp noted that the average disabled American now pays $16,000 for a properly trained canine, and waiting lists now stretch for years.

“I think there’s a real need,” he said. “So, the hope is that people will support this sort of work. Then, we’ll be able to deliver these things when people need them.”

Fletcher joins South Africa cricket team

Tuesday, November 18th, 2008

Duncan Fletcher’s appointment as consultant to South African cricket team has fuelled speculations that he might leak out some of secrets of the England side when they clash next year.

Fletcher, who has been also roped in by Hampshire as an advisor, is unperturbed by such criticism and does not rule out the prospect of taking up the job for a longer term.

‘It’s not a case of joining South Africa so I can help them against England,’ said Fletcher, who joined as part-time consultant to South African team Monday.

‘But if South Africa are interested and I’m in the position where I want to be involved this time next year, then I’m a professional and we’ll have to see what happens,’ Fletcher was quoted as saying in The Guardian.

The appointment of Fletcher ahead of the start of the Test series against Bangladesh at Bloemfontein Wednesday, has raised the tantalising possibility of his taking on the team that he guided to the Ashes in 2005 when England tour the republic in a year’s time.

‘Don’t forget, I have been in the reverse situation before, my first tour with England was to South Africa. It’s just a case of doing your job as professionally as possible. With Australia coming up, it’s an exciting time to be involved,’ he added.

Fletcher has signed an initial 50-day contract with Cricket South Africa, to be split mainly between the build-up and start of next month’s three-Test tour to Australia and the return tour in the spring.

110 banks have asked for $170B under bailout plan

Monday, November 17th, 2008

At least 110 banks have requested more than $170 billion from the Treasury Department’s rescue fund, and many more are expected to have submitted applications before Friday’s deadline.

The requests would come from the $250 billion the Treasury set aside from the $700 billion fund to purchase stock in banks.

Analysts at Keefe, Bruyette & Woods estimated that 62 banks have received full or preliminary approval from the Treasury for $173 billion from the Troubled Asset Relief Program. The government said Monday that American International Group Inc. also would receive $40 billion from the program.

That $40 billion, however, won’t come from the $250 billion set aside for the banks.

Another 48 banks have applied for about $6.5 billion, according to the Keefe, Bruyette & Woods report. Several banks that have filed applications said they haven’t yet decided whether to accept any funds.

The tally doesn’t include requests from four life insurance companies that are seeking regulatory approval to purchase savings and loans in order to become eligible for government funds.

One of those companies, Hartford Financial Services Group Inc., said it would be eligible to receive between $1.1 billion and $3.4 billion if its purchase of Federal Trust Bank is approved. Generally, only banks and savings and loans are eligible for direct investment from the TARP. AIG is the only nonbank company to receive such funds so far.

The total also doesn’t include American Express Co., which said Monday it has restructured as a bank holding company, reportedly to seek up to $3.4 billion in funding.

Publicly-held banks were required to file their applications by Friday. Private banks have been given an extended, though unspecified, deadline.

Industry sources expect a flurry of last-minute applications will be filed Friday. Treasury spokeswomen on Friday wouldn’t disclose how many applications have been filed or how much has been requested.

Nine large banks, including Bank of America Corp., Wells Fargo & Co., Citigroup Inc. and JPMorgan Chase & Co., received $125 billion last month.

Neel Kashkari, interim director of the bailout at Treasury, told lawmakers Friday that about 20 more banks would receive funds that day.

The Treasury has “approved dozens of applications from banks across the country,” he said.

Several banks announced Friday that they have received funds under the plan, including Huntington Bancshares Inc., Comerica Inc. and KeyCorp.

Baroda pacemen halt Railways

Monday, November 17th, 2008

AS PREDICTED by Railways coach Abhay Sharma, the first session proved crucial in deciding the proceedings of the day. Railways lost five wickets for just 45 runs in the opening session, recovering just enough to post 224 against Baroda in the Super League ‘Group B’ here on Sunday.

In reply, Baroda were one for no loss before bad light stopped the game. Railways’ batting line-up crumbled like a house of cards before Mahesh Rawat and Karan Sharma stitched together a 146-run partnership for the sixth wicket.

Prior to that partnership, Sanjay Bangar (5), Amit Pagnis (19), Harshad Rawle (01) and S Sanyal (1) found the Baroda paceman Salim Vairagi and Irfan Pathan to hot to handle. Yere Goud, the centurion against Karnataka, too couldn’t bring any stability to the innings as he fell lbw to Irfan Pathan for just one run.

Railways were by now in deep trouble, but then came the valuable partnership that helped Railways chug past 200 mark. The duo showed good application and determination to withstand the charged-up Baroda bowlers, gradually bringing the team back on track.

But before that partnership could bail Railways out of trouble, Pathan, in his second spell, sent back Rawat for 67. Sharma, too, fell soon after for 79 off Rajesh Pawar.

And the following batsmen just couldn’t add much to the total. Earlier, Saleem Veragi jolted Railways, giving the initial break through to Baroda.

Bowling in his third First Class match, the 22-years-old right arm medium pacer gave good support to Pathan, who retuned with a rich haul of 4 for 42 from in 22 overs.