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Venezuela says expects OPEC to cut supply at meetCARACAS (Reuters) - Venezuela's economy minister expects OPEC to agree to cut oil supply at an emergency meeting next week to stem crashing world prices by bringing supply and demand into better balance.Source: Reuters: Money News | 18 Oct 2008 | 2:17 pm Bush: U.S. government stakes in banks limitedWASHINGTON (Reuters) - President George W. Bush sought to reassure Americans on Saturday the U.S. government had no intention of becoming a permanent shareholder in private banks, and will later consult with European leaders about the financial crisis that sent tremors through their economies.Source: Reuters: Money News | 18 Oct 2008 | 2:12 pm Wills Lifestyle's contract with FDCI ends, association might continueFashion brand Wills Lifestyle is in the last year of being the title sponsor of the premier Wills Lifestyle India Fashion Week (WIFW) but it promises to continue its association with the event in a 'deeper and stronger' way even after the end of their three-year contract.Source: IndiaeNews.com: Business News | 18 Oct 2008 | 2:01 pm Kingfisher slashes salaries of trainee pilotsKingfisher Airlines on Saturday slashed salaries of its 50 trainee co-pilots as it charted ways to overcome the ongoing financial turbulence in the aviation industry.Source: Daily News & Analysis: Money News | 18 Oct 2008 | 1:51 pm RNRL wants RIL to pay differential between pricesAmbani Group company RNRL on Saturday demanded that Mukesh's RIL pay the difference between the price at which it will sell gas to other buyers and $2.34.Source: Daily News & Analysis: Money News | 18 Oct 2008 | 1:43 pm 2,500 employees of RIL to go on strikeAbout 2,500 employees of Reliance Industries working at its plants here will go on strike on October 24 demanding a hike in Rs 33,000 bonus offered.Source: Daily News & Analysis: Money News | 18 Oct 2008 | 1:42 pm India Tougher Money Laundering Measures - Online-Casinos.com
Source: Google News India - Business | 18 Oct 2008 | 1:40 pm Edifice Architecture: Cashing in on IT boomWhile some get success easily and rather quickly, others have to struggle hard to make their ideas work. Take for instance, the case of architecture design firm Edifice which did not quite takeoff for nearly 5years since inception. Oneday, the tables turned and since then there has been no looking back.Source: Moneycontrol Top Headlines | 18 Oct 2008 | 1:34 pm UPDATE 1-India c.bank employees say to strike on Oct 21 - Reuters India
Source: Google News India - Business | 18 Oct 2008 | 1:33 pm RBI employees say to strike on Oct 21MUMBAI (Reuters) - Employees of the Reserve Bank of India (RBI) will go on a nationwide strike on Tuesday to press for pension increases following salary revisions, a top union official said, a move that could cripple banking operations.Source: Reuters: Money News | 18 Oct 2008 | 1:32 pm RNRL wants RIL to pay differential between prices - Press Trust of India
Source: Google News India - Business | 18 Oct 2008 | 1:06 pm Nissan to make new car in ChennaiJapanese auto major Nissan Motor Co will make next generation March model at its Orgadam plant near here, built in partnership with French car maker Renault, a top official said Saturday.Source: IndiaeNews.com: Business News | 18 Oct 2008 | 1:02 pm Nissan to make new car in ChennaiNissan Motor Co will make next generation March model at its Orgadam plant near here, built in partnership with French car maker Renault, a top official said on Saturday.Source: Daily News & Analysis: Money News | 18 Oct 2008 | 1:02 pm 'Projects worth Rs.132 bn approved for Tamil Nadu ports'The central government has approved development projects worth Rs.132 billion for the three major ports in Tamil Nadu - Chennai, Ennore and Tuticorin - Minister for Shipping, Road and Transport T.R. Baalu said here Saturday.Source: IndiaeNews.com: Business News | 18 Oct 2008 | 1:01 pm Eight Gujarat courts to deal with dishonoured cheques onlyEight courts have come up in Gujarat to exclusively deal with bounced cheques, said a judicial official, adding 'unless we have a system of quick disposal of cases relating to dishonoured cheques, investment growth will not take place'.Source: IndiaeNews.com: Business News | 18 Oct 2008 | 1:00 pm Canada firm eyes Delhi Metro to install CCTVMarch Networks, a Canada-based video systems provider, is in discussions with two transport corporations here to install CCTV cameras at their terminals.Source: Daily News & Analysis: Money News | 18 Oct 2008 | 12:47 pm Delays holding up expansion: Tata Steel chiefProlonged delays in land acquisition, allotment of captive iron ore and other raw material, and inadequate infrastructure are holding up capacity expansion and execution of new Tata Steel plants.Source: Daily News & Analysis: Money News | 18 Oct 2008 | 12:46 pm Eurocopter focussing on Indian marketEurocopter, the global leader in chopper manufacturing, is focussing on the Indian market and hopes to cash in on the increasing demand in various segments of the civilian sector.Source: Daily News & Analysis: Money News | 18 Oct 2008 | 12:45 pm Financial meltdown hits purchases at WIFWIt's already more than halfway through Wills Lifestyle India Fashion Week, but most international buyers are either tight lipped about their investment plans or are still looking around.Source: Daily News & Analysis: Money News | 18 Oct 2008 | 12:45 pm Indian Bank posts 14% rise in Q2 profit to Rs 283cr - Business Standard
Source: Google News India - Business | 18 Oct 2008 | 12:36 pm Allahabad Bank profit dips 83 percentAllahabad Bank's net profit dipped 83 percent in the second quarter this fiscal to Rs.416.8 million as against Rs.2.39 billion in the same period last year.Source: IndiaeNews.com: Business News | 18 Oct 2008 | 12:32 pm Gold plunges by Rs 210 at Rs 12740 per 10 gm - Press Trust of India
Source: Google News India - Business | 18 Oct 2008 | 12:16 pm Nissan to make new car in Chennai - Economic Times
Source: Google News India - Business | 18 Oct 2008 | 12:12 pm Should distressed airlines be bailed out? Experts answerShould there be a bailout for distressed airlines? How justified are companies when they lay off thousands of employees at one go? Vivian Fernandes gets the answers.Source: Moneycontrol Top Headlines | 18 Oct 2008 | 12:04 pm All roads lead to Begumpet airport - Hindu
Source: Google News India - Business | 18 Oct 2008 | 11:56 am UK's Brown warns of "unbridled free markets"LONDON (Reuters) - British Prime Minister Gordon Brown said on Saturday the global financial crisis had raised questions about the relationship between government and markets.Source: Reuters: Money News | 18 Oct 2008 | 11:38 am OPEC sees $70-$90 as floor for oil prices - paperALGIERS (Reuters) - OPEC oil producers see oil prices bottoming at $70-$90 per barrel, OPEC President Chakib Khelil was quoted as saying in Saturday's edition of Algerian daily El Watan.Source: Reuters: Money News | 18 Oct 2008 | 11:36 am IIM-Lucknow, Karvy to launch online trading gameStockbroking firm Karvy Stock Broking Ltd has announced that it will launch a trading game in association with the Indian Institute of Management-Lucknow (IIM-L), unfazed by the nosedive taken by the equity markets.Source: IndiaeNews.com: Business News | 18 Oct 2008 | 10:31 am IMF investigates Strauss-Kahn over affair - paperPARIS (Reuters) - The International Monetary Fund is investigating its boss, Dominique Strauss-Kahn, to see whether he abused his position in connection with a sexual relationship with a subordinate, the Wall Street Journal said on Saturday.Source: Reuters: Money News | 18 Oct 2008 | 10:25 am India aviation show proves a big hitIndia's first-ever international exhibition on civil aviation, India Aviation-2008, proved a big hit with thousands of people flocking to the Begumpet Airport here Saturday to catch a glimpse of a variety of aircraft on the last day of the four-day event.Source: IndiaeNews.com: Business News | 18 Oct 2008 | 10:01 am Use open standard technology to counter cyber crime: MinisterTo combat increasing cyber crime, a West Bengal minister has asked organisations and individuals to use open standard technology here Saturday.Source: IndiaeNews.com: Business News | 18 Oct 2008 | 10:00 am Govt May Impose 5% Import Duty On Steel - TopNews
Source: Google News India - Business | 18 Oct 2008 | 9:56 am PNB in race for Kazak bankThe public sector Punjab National Bank (PNB) is in the race for acquiring a bank in Kazakhstan. Speaking to newspersons here on Friday, the PNB Chairman and Managing Director, Dr K. C. Chakrabarty said, We see big opportunities there after the IndoUS nuclear deal as the region has sizeable uranium deposits.Source: Moneycontrol Top Headlines | 18 Oct 2008 | 9:41 am ONGC plans to increase acquisition programmeHaving a reserve of $5 billion cash and a debtfree balance sheet, ONGC is planning to step up its acquisition initiative to take full advantage of the global liquidity crisis, the reduction in valuation of oil equity due to fall in crude prices, and heavy asset redemption by funds.Source: Moneycontrol Top Headlines | 18 Oct 2008 | 9:38 am Banks to allow cos to utilise sanctioned loan limitsThe Finance Ministry has advised public sector banks (PSBs) to allow borrowers/companies to utilise the sanctioned term loan and working capital limits. They have also been asked to assess on a priority basis all requests of borrowers for enhancement in existing credit limits.Source: Moneycontrol Top Headlines | 18 Oct 2008 | 9:35 am Allahabad Bank Q2 net dips 83 pc - Hindu
Source: Google News India - Business | 18 Oct 2008 | 9:19 am First trade consignment across Kashmir border would be 'gifts'Carpets, wall hangings, vegetables and fruits will be sent as 'gifts' to the people of Pakistan-administered Kashmir by traders in Jammu and Kashmir in the first convoy of about a dozen trucks that will cross the Line of Control (LoC) from Poonch Tuesday.Source: IndiaeNews.com: Business News | 18 Oct 2008 | 8:31 am Insurance firm plans to bypass agentsIn the distributor-driven Indian insurance market, Aegon Religare Life Insurance plans to toy with direct sales as part of its strategy to break even in three years.Source: IndiaeNews.com: Business News | 18 Oct 2008 | 8:30 am Sensex closes below 10K; Realty,power plunge - Economic Times
Source: Google News India - Business | 18 Oct 2008 | 7:08 am U.S. ramps up probe of Lehman collapse - NYTNEW YORK (Reuters) - U.S. prosecutors have stepped up the investigation into the collapse of Lehman Brothers, with at least a dozen subpoenas being issued including one to the investment bank's chief executive, Richard Fuld, The New York Times reported on Saturday.Source: Reuters: Money News | 18 Oct 2008 | 6:14 am Billionaire Icahn's 177-ft motor yacht up for saleBOSTON (Reuters) - Wanted: A buyer for billionaire investor Carl Icahn's 177-foot motor yacht.Source: Reuters: Money News | 18 Oct 2008 | 2:33 am Goyal apologises; says no wage cut for reinstated staff!Under pressure, Jet Airways today took back the 1,900 sacked staff within 48 hours and its Chairman, Naresh Goyal, personally apologised for the trauma of employees with a promise of not cutting their wages.Source: Zee News : Business | 18 Oct 2008 | 12:26 am Daiichi Sankyo buys 20% stake in Ranbaxy!Japan`s Daiichi Sankyo Co said on Friday it had completed the purchase of 20 percent in Ranbaxy Laboratories, part of its plan to obtain a majority holding in the generic drugmaker.Source: Zee News : Business | 18 Oct 2008 | 12:26 am RIL-RNRL issue: Bombay HC asks Centre to file affidavit!The Bombay High Court on Friday asked the Central government to file an affidavit clarifying its stand on whether its approval was necessary for the price of gas to be produced by Reliance Industries in the Krishna Godavari basin.Source: Zee News : Business | 18 Oct 2008 | 12:26 am Jet-Kingfisher alliance: MRTPC orders inquiry!Anti-monopoly watchdog MRTPC on Friday ordered an inquiry into the operational alliance formed by two leading private carriers Jet Airways and Kingfisher Airlines.Source: Zee News : Business | 18 Oct 2008 | 12:26 am Wipro Technologies wins Asian MAKE Award, 2008!Wipro Technologies, the global IT services business of Wipro Limited on Friday announced that it has been recognized as a winner of the Asian MAKE Awards 2008 and finished third overall; a rise from a ranking of 15th from the previous year.Source: Zee News : Business | 18 Oct 2008 | 12:26 am Bush for free market; says crisis not limited to Wall Street!Defending his government`s move to buy stakes in banks, US President George Bush on Friday said it is not takeover and the step is to preserve free market, even as he noted that crisis is not limited to the Wall Street.Source: Zee News : Business | 18 Oct 2008 | 12:26 am I have been buying US stocks, says Buffett!Legendary investor Warren Buffett has said he is buying American stocks and feels that fears regarding long-term prosperity of country`s many sound companies `makes no sense`.Source: Zee News : Business | 18 Oct 2008 | 12:26 am French bank loses $800 mn in `trading incident`!The French bank Caisse d`Epargne lost around USD 800 million in a derivatives trading "incident" during last week`s market turmoil, the company said on Friday in a statement.Source: Zee News : Business | 18 Oct 2008 | 12:26 am Sony Ericsson reports EUR 25 mn 3Q loss!Mobile phone maker Sony Ericsson said on Friday it had plunged deep into the red in the third quarter with a net loss of EUR 25 million (USD 33.7 million), but its sales volumes beat analysts` expectations.Source: Zee News : Business | 18 Oct 2008 | 12:26 am ONGC not to revise Imperial bid amid falling fuel rates!Oil and Natural Gas Corporation (ONGC) announced on Friday that it will not revise its USD 2.59 billion bid to acquire UK-listed Imperial Energy because of fall in oil prices. Despite global financial turmoil, company has enough liquidity to fund the transaction, Chairman R S Sharma said.Source: Zee News : Business | 18 Oct 2008 | 12:26 am Forex reserves fall $10 b on FII outflowsMumbai, Oct. 17 The country’s foreign exchange reserves fell by around $10 billion, probably the biggest fall in a single week.Source: Business Line - Home Page | 18 Oct 2008 | 12:00 am Ministry asks banks to allow cos to utilise sanctioned loan limitsNew Delhi, Oct. 17 The Finance Ministry has advised public sector banks (PSBs) to allow borrowers/companies to utilise the sanctioned term loan and working capital limits. They have also been asked to assess on a priority basis all requests ofSource: Business Line - Home Page | 18 Oct 2008 | 12:00 am Sensex sinks below 10,000Mumbai, Oct. 17 The widely tracked 30-share Sensex on Friday plunged below the 10,000-level for the first time since July 2006, leaving market participantsSource: Business Line - Home Page | 18 Oct 2008 | 12:00 am Sensex @ 10K: up in 483 days, down in 193Chennai, Oct. 17 Though the Bombay Stock Exchange’s benchmark index, Sensex, took 20 years to scale 10,000, the journey from 10K to 20K was undertaken in record time. It took 483 trading sessions for the benchmark to move from 10,000 toSource: Business Line - Home Page | 18 Oct 2008 | 12:00 am How sectoral indices faredFriday’s fall may have brought the Sensex below the 10k-mark, but not all sectors have chosen to follow the bellwether index in its roundSource: Business Line - Home Page | 18 Oct 2008 | 12:00 am MRTPC orders probe into Jet-Kingfisher allianceNew Delhi, Oct. 17 The high-profile alliance between Kingfisher Airlines and Jet Airways may have flown into some turbulence, with the Monopolies and Restrictive Trade Practices Commission (MRTPC) on Friday asking its investigative arm, theSource: Business Line - Home Page | 18 Oct 2008 | 12:00 am Banks slow to use RBI facility for loans to MFsKolkata, Oct. 17 Asset management companies have welcomed the Reserve Bank of India’s special facility extended to banks to lend to the mutual fund sector recently. They, however, say the banks have been responding inadequately to theSource: Business Line - Home Page | 18 Oct 2008 | 12:00 am Global financial crisis impacts coffeeCoffee prices, like other commodities, have been affected by the current financial turmoil, but it is expected to sustain almost at the current levels during the coming winter months as the demand is likely to outweigh the supply.Source: Business Line - Home Page | 18 Oct 2008 | 12:00 am Is it time to expect retail prices of petrol, diesel to fall?Chennai, Oct. 17 International crude oil prices are in a free fall. The Indian basket of crude oil, valued at $62.86 a barrel on Friday, is very close to the average price last seen in March 2007.Source: Business Line - Home Page | 18 Oct 2008 | 12:00 am Satyam beats guidance; net profit rises 42%Hyderabad, Oct. 17 Satyam Computer Services Ltd’s net profit increased 42 per cent at Rs 581 crore in the September quarter beating its guidance, compared with Rs 410 crore posted in the corresponding quarter of the previous financial year.Source: Business Line - Home Page | 18 Oct 2008 | 12:00 am R&D, move to electric cars can help seize lead in automotivesIndia and China had similar sized economics in the early 80's, the economic reforms of Deng Xiaoping set China on a path upward.Source: Daily News & Analysis: Money News | 17 Oct 2008 | 10:21 pm Satyam lowers dollar guidance by 500 bpsSatyam Computer Services, India's fourth-largest software services firm, revised its dollar revenue guidance downwards to 19-21% from 24-26% earlier.Source: Daily News & Analysis: Money News | 17 Oct 2008 | 10:19 pm IT, consulting jobs to top IIMB placement listThe global financial crisis has forced IIM Bangalore to tweak its game plan for placements this year. Top recruiters from financial institutions and investmentbanks (Ibanks) have given way to IT and consulting companies as the current hot favourites. CNCBTV18\'s Vineetha Athrey looks in to the recruitment opportunities in the IT field.Source: Moneycontrol Top Headlines | 17 Oct 2008 | 8:53 pm DLF begins Rs1,100 crore stock buy-back amid falling marketMumbai: The country’s biggest real estate developer, DLF Ltd, began a Rs1,100 crore stock buy-back programme on Friday after a two-day delay as the stock slumped to below its initial public offering price. The company was initially scheduled to start the repurchase programme on 15 October, and deferred the share buy-back to seek more time to comply with capital markets regulator Securities and Exchange Board of India’s guidelines. Realty shares have plunged on concerns of high borrowing costs, credit crunch The company and its smaller rivals have plunged this year as investors spurned property stocks on concern that borrowing costs at a seven-year high and the global credit crunch will crimp profits. On Friday, shares of DLF fell 10.3% to Rs291.30 at the close of trading on the Bombay Stock Exchange (BSE), as the exchange’s benchmark index, the Sensex, declined 5.7% to its lowest level since June 2006. DLF, which sold shares at Rs525 apiece in June 2007, fell to a record Rs279 on 8 October, down 77% from its high of Rs1,225 on 15 January. The New Delhi-based company will buy back as much as 22 million shares at a price not exceeding Rs600 apiece until 9 July 2009, according to a 10 July statement to BSE. In June 2007, the company had raised Rs9,630 crore selling 175 million new shares, after receiving bids for three times the number on offer. DLF and other real estate development companies had raised $4 billion (Rs19,480 crore today) last year as the Sensex rose 47%, its sixth annual increase. Source: LatestNews-Home - Livemint.com | 17 Oct 2008 | 7:46 pm Early birderThings came to a head two weeks ago on one of the family’s monthly visits to Delhi Zoo. “Look at those birds standing there,” said the wife to the son. “Painted storks.” My son, about to turn six this month, looked for a minute.  Watchers’ club: Your child’s interest can become a family hobby. Jupiterimages, India He was right, of course. I do not remember when my wife and I discovered that our son had a thing for birds and animals. And it wasn’t one of those passing superficial obsessions. Because he had learnt to read early—about the only thing he did before other children—he would read. Not just the books children his age or a little older are supposed to read, but other books as well. Encyclopaedias. Instruction manuals. Wall posters. His reading was indiscriminate. Richard Grimmett, Caroll Inskipp and Tim Inskipp’s Birds of the Indian Subcontinent was his favourite for a while. He would look at the plates, match numbers with the text, and, as we were to discover later, file everything away in his head. The discovery came during a March trip to Corbett national park. We were parked in a quiet and dense corner of the reserve forest. A bird had just descended on a nearby tree. Our guide couldn’t identify it. Nor could the wife. “Black-lored Yellow tit,” said the boy. A copy of Inskipp was produced and checked. He was right. My son’s fascination for birds and animals has changed our lives. Two years ago, when this fascination first began to manifest itself, we knew little about birds, hadn’t really noticed any around our house—in a leafy and quiet corner of Vasant Vihar, one of the several green colonies that Delhi surprises people with—and didn’t own a decent pair of binoculars or any books on birds. Now, both the wife and I are avid amateur birdwatchers (the wife more than me; She is even up to driving to Okhla at the crack of dawn on weekends for birding walks with our dog). We have spotted several species of birds in our garden and around the house (including a Greater Coucal who came visiting once, an Indian Grey Hornbill, a Spotted Owlet, a pair of Lesser Flameback Woodpeckers, Barbets, Green Bee-eaters, parakeets, black kites, bulbuls, mynahs, magpie-robins, Oriental White-Eyes, starlings, lapwings, sparrows, crows, and the Rosy Starlings that visit every year), own a very good pair of binoculars, and at least a dozen books on birds (including a literary anthology that a friend presented us with after she discovered our new-found enthusiasm). A few years ago, Ananda Banerjee, who used to work with me then and who has since written a great book for birding beginners (Common Birds of the Indian Subcontinent: A Field Guide for Beginners), told me that Delhi was the city with the second highest number of bird species in the world, after Nairobi. The number he put to the bird species in Delhi was around 400, I think. That makes this city the best place to be if you are a birder (unless you can find a career doing something at the Silent Valley National Park (Thattekad) where my wife tells me that a certain guide is so much in demand that he is booked for the next six months). It also means there is no shortage of places to go to over the weekend, the only time when we usually get to function like a normal family. There’s Okhla Bird Park or OBP where, depending on the season, you can see flamingoes, bitterns, pelicans and scores of other bird species. There’s the district park at Hauz Khas (next to Delhi Lawn Tennis Association), where you can see geese, several kinds of residential and migratory ducks, lapwings, Black-winged Stilts, parakeets, Bee-eaters, the occasional peacock, hornbills, Golden Orioles, and swallows. There’s Lodhi Garden. There’s Nehru Park. There are the Aravalli and the Yamuna biodiversity parks. These are just some of the places we’ve been to (full disclosure; I haven’t been to all but most; there are some trips the wife and son have made without me). The funny thing is, this isn’t something we do because my son likes it or because it’s something the entire family can do together. My wife and I (and the wife more than me, I must admit) are now genuinely interested in birds. And so, even as I’ve introduced my son to Tolkein (Roverrandom, not The Hobbit), Tea Leaf Green and Steely Dan (his favourite band), he has introduced my wife and me to to the wonderful world of birds. Now that I think about it, the whole thing is kind of magical. There we were, going about our lives and work in a world where the sky was bereft of birds. Then, with a metaphorical snap of his fingers, my son populated the world around us with all manners of wondrous birds. R. Sukumar is the managing editor of Mint. ******** Birdie dance Want to try your hand at bird watching? Contact these networks in your city to get started DELHI www.delhibird.net  Green Bee-eaters (www.kolkatabirds.com) MUMBAI www.bnhs.org You can become a member of the Bombay Natural History Society for Rs50. The annual fee for a couple with two children is Rs1,300. You get updates on camps being organized around the country, and ‘Hornbill’, the quarterly magazine. BANGALORE http://groups.yahoo.com/group/bngbirds/ Birdwatchers’ Field Club of Bangalore meets every second Sunday at 7.30am in the Lal Bagh Glass House. Membership is free. Source: LatestNews-Home - Livemint.com | 17 Oct 2008 | 7:45 pm Inflation not just a short-term problemBanks are pulling back on lending, jobs are scarce and commodity prices are tumbling. It might seem that inflation is no longer a problem. True, but only for a while.  Consumer prices are no longer rising. In the US in the past two months, they have been flat. There’s more non-inflation to come as sharply lower commodity prices work their way through the economy. Indeed, taking the declines in house and other asset prices into account, total price levels are probably falling in the US. The story is similar in most of the world. On the other hand, fear of deflation—a spiral of declining prices and wages—should start to fade. The world’s monetary and fiscal authorities are no longer shy about using their ultimate weapon—infinite borrowing capacity—to keep the financial system in operation. That means money is being thrown into the banking system as if there is no possible inflationary tomorrow to worry about. Measures of money supply growth, which had been slowing sharply, look to be rising again. Right now, that money isn’t being spent. It is going onto bank balance sheets, where it is compensating for losses from falling asset prices. With wages and lending both under pressure, those prices could fall further—more broad disinflation. But look ahead to better times—once the credit system is righted and the recession draws to a close. Then banks will have strong balance sheets (thanks to the monetary flood), ready to ease credit conditions as growth accelerates. It’s almost a recipe for higher prices. In theory, governments will do everything they can to promote price stability. But even if they want to—and they might not actually regret the way inflation erodes the value of their debt—they’ll have to move much faster to raise rates and restrict lending than they have in recent recoveries. Government 10-year bonds yield 4% in the US and 4.1% in Germany. If higher inflation does come, bond investors will be caught by surprise. They trust the authorities to keep the monetary system in good order—just as they trusted them to keep the financial system on an even keel. Source: Home - Livemint.com | 17 Oct 2008 | 7:39 pm Need to Know | RBI employees plan strike for higher pensionMumbai: As many as 25,000 employees of the Reserve Bank of India (RBI) plan to strike work for a day on 21 October for a higher pension, the United Forum of Reserve Bank Officers and Employees’ Association said. The strike at RBI’s 20 offices in the country may affect check clearing and settlement operations, said Samir Ghosh, general secretary of the All India Reserve Bank of India Employees’ Association, one of the four unions that make up the forum. —Bloomberg ********* Essar Oil to restart at least 870 fuel stations Mumbai: The owner of the country’s newest refinery, Essar Oil Ltd, plans to restart at least two-thirds of its 1,250 fuel stations in the country. “With crude oil prices falling, the difference between fuel prices offered by us and by the public sector companies will reduce,” Mohan Nair, spokesman for Essar Oil, said over telephone from Mumbai on Friday. —Bloomberg ********* FIIs lend equities worth Rs348 crore overseas Mumbai: Foreign institutional investors (FIIs), the main drivers in the Indian market, had lent equities worth Rs348 crore to entities abroad for short-selling, during 10-14 October, from available inventory of participatory notes, data from the Securities and Exchange Board of India (Sebi) showed. On Wednesday, the capital markets regulator had asked FIIs to compile and submit this data twice a week to increase transparency. It was also a move by Sebi to clamp down on a parallel offshore market for short-selling Indian securities by foreign investors, which Sebi had denied until this week. Sebi had lifted a year-long curb on participatory notes earlier this month. The data Sebi released on Friday was a compilation of reports from 17 FIIs. Sebi expects subsequent reports to be more complex, the regulator said in a statement. Shares of ITC Ltd, the largest tobacco company in India, were lent the most by FIIs, with some 22.91 lakh shares worth Rs38.6 crore changing hands temporarily. It was followed by 12.66 lakh shares worth Rs16.9 crore of Housing Development and Infrastructure Ltd. —Staff Writer ********* Novartis India July-Sep net profit dips 4% Mumbai: With rise in expenditure during the July-September quarter, Novartis India Ltd, the Indian arm of the Swiss drug maker Novartis AG, posted around 4% drop in net profit at Rs 29.1 crore, despite a 4.76 % increase in sales. The company’s net sales during this just closed quarter in fiscal 2008-09 was Rs 154.4 crore, compared to Rs 147.8 crore a year ago. According to company’s profit and loss account, its expenditure mainly costs on material consumption, employees, and other expenditure had gone up by 7.01% during the period. —C.H. Unnikrishnan ********* IGATE Q3 profit doubles to $8.29 million Bangalore:IGATE Corp., the US-based information technology services firm that has a large delivery base in India, said third quarter profit almost doubled to $8.29 million, as it gained from improved productivity and currency fluctuations. Revenue increased by 10% to $ 55.4 million in the quarter to September. IGATE reported profit of $ 4.33 million on sales of $ 50.4 million in the same period last year, a company statement said. “In a highly volatile market where top-line growth is challenging, we have focused on expanding our margins,” said Phaneesh Murthy, chief executive of iGATE Corp. —Staff Writer ********* Source: LatestNews-Home - Livemint.com | 17 Oct 2008 | 7:29 pm CPI(M) ducks, Trinamool smiles at Tata's Singur adRatan Tata today drew flak from all quarters industry and political for his open letter to the citizens of Bengal, in the form of an advertisement in four newspapers, asking people toSource: Business Standard | Front Page Headlines | 17 Oct 2008 | 7:26 pm Forex reserves fall by $10 bnIndia's foreign exchange reserves fell $9.94 billion during the week ending October 10, 2008 to $274 billion mainly because the Reserve Bank of India (RBI) continued to sell dollars to check the steepSource: Business Standard | Front Page Headlines | 17 Oct 2008 | 7:25 pm Impact of spending slump will be widespread, says InfosysBangalore: India’s largest computer service provider by market value, Infosys Technologies Ltd, said a slump in orders from financial clients will probably spread to retail and manufacturing customers. “The impact is going to be widespread,” chief executive officer S. Gopalakrishnan, 53, said in an interview on Thursday at the firm’s headquarters in Bangalore. “The most difficult part is we don’t know when stability will come.” Click here to watch video Microsoft Corp. chief executive officer Steve Ballmer had said last month that the global credit crunch will discourage corporations from investing in computers and related services. Gartner Inc. said this month technology spending growth may slow to 2.3% next year, less than half the research firm’s previous projection. “Right now, what they are dealing with is the shock of contraction,” Phani Sekhar, a Mumbai-based fund manager at Angel Broking Ltd, overseeing Rs65 crore in Indian stock investments, said in a telephone interview on Friday. “When corporate planners begin to integrate cost-cutting into their business models, that is when the turnaround will happen.” Infosys, which counts Citigroup Inc. and Bank of America Corp. as customers, generated one-third of its revenue from financial companies last quarter. Manufacturing and retail customers include Daimler AG, Cummins Inc. and Sears Holdings Corp. Infosys, which cut its earnings forecast last week, is repeating a client spending plan survey because the deterioration in the financial markets in the past month has rendered the company’s previous one irrelevant, added Gopalakrishnan. Financial companies are reeling from a global financial crisis that led to the downfall of firms, including Lehman Brothers Holdings Inc., Merrill Lynch and Co. and Bear Stearns Companies Inc. Wall Street may lose as many as 35,000 jobs in two years as the impact of the credit freeze spreads, New York city comptroller William Thompson’s office said this week. The proportion of Infosys’ revenue contributed by banking and financial services clients declined to 33.4% during the quarter ended 30 September, compared with 36.5% a year earlier. Clients in the industry say “we don’t know what is happening, what is the situation, what is our situation and so we are not ready to discuss”, Gopalakrishnan said. Infosys has fallen 23% in the past three months, the fourth largest contributor to the benchmark Sensex’s 23% drop during the period. Tata Consultancy Services Ltd, Infosys’ only bigger Indian rival by revenue, has declined 41%. Infosys share lost 5.06% on Friday to close at Rs1,202.55 on the Bombay Stock Exchange, against a 5.73% fall in the Sensex. Source: Home - Livemint.com | 17 Oct 2008 | 7:25 pm Jet to restructure cabin crew flying hoursGoyal discusses plan with reinstated employees in Mumbai.Source: Business Standard | Front Page Headlines | 17 Oct 2008 | 7:24 pm No pay cuts in Jet Airways, says Shiv Sena unionJet Airways management may not able to implement the pay cut it wanted in lieu of retaining 800 retrenched employees.Source: Business Standard | Front Page Headlines | 17 Oct 2008 | 7:24 pm Sensex back to four digitsIndia the worst performer in Asia.Source: Business Standard | Front Page Headlines | 17 Oct 2008 | 7:23 pm Left, BJP accuse govt of ‘undermining’ ParliamentNew Delhi: Even as political parties limbered up for assembly elections in five key states by the end of the year, main opposition Bharatiya Janata Party (BJP) joined the Left parties—despite ideological differences—to attack the government for not convening the regular monsoon session of Parliament and not taking it into confidence before signing the Indo-US civilian nuclear deal.  Under fire: PM Manmohan Singh addressing the media on Friday. Vijay Verma / PTI According to Communist Party of India (Marxist) leader Sitaram Yechury, the notices were given on the ground “the Prime Minister in his reply to the confidence motion (which was put to vote on 22 July) that the government would come back to Parliament after getting the consent of IAEA (International Atomic Energy Agency) and the NSG (Nuclear Suppliers Group) before operationalizing the (123) agreement with the US.” The BJP-led National Democratic Alliance severely criticized the government on the manner in which it convened the Parliament session and demanded that there should be a rescheduling of the session in addition to a full-fledged winter session. “This government has made this Parliament redundant and irrelevant,” said BJP spokesperson Sushma Swaraj. Pointing out that at least 10 days of this session will be lost due to public holidays, Swaraj said, “We want rescheduling of the session.” The Left parties, too, demanded a full-fledged winter session. Indicating that the BJP, which is gearing up for a tight fight with the ruling Congress in at least four states in November-December, would put the government on the mat, leader of opposition in the Lok Sabha L.K. Advani said, “We told the government that this Parliament session cannot be considered a continuation of the last session when the trust vote was held.” Source: LatestNews-Home - Livemint.com | 17 Oct 2008 | 7:16 pm Stock and saleHaryana/ Punjab: The government’s annual food procurement — which takes place between September-October (for rice) and April-July (for wheat) — is critical to ensure the country’s food security, particularly for the poor. With double-digit inflation, low rice stocks and assembly elections in five key states starting next month, the government has been working furiously in rice growing states such as Punjab, Andhra Pradesh, Haryana, Uttar Pradesh, Orissa and Chhattisgarh (due for elections). Besides releasing stocks for open market sales, the government also channels grains at subsidized prices through the public distribution system for the poor. Click here to watch video The process of collecting rice and distributing it to the country’s poor is a complex one, and involves the Union and state governments, their agencies, farmers, rice shellers, the railways and the roadways. After paddy is harvested, it is taken to the mandis to be procured by the Food Corporation of India (FCI) and state government agencies. It is then sent to rice millers for dehusking, and finally stored in FCI godowns to be sent in lots to the rice deficient states. Also Read The Goddess diaries At this time of the year in the interiors of Punjab and Haryana, there are long queues of trucks outside rice mills and FCI godowns. Busy rice shellers check the moisture content of paddy before putting it in machines to convert it into rice. “Due to extended rains, the moisture in paddy has been high...we can only mill paddy with a moisture content of less than 15%,” says Umesh Garg, owner of Shriram Rice and General Mills, a small rice miller in Dhand village of Haryana’s Kaithal district. His workers spend hours drying the paddy in the sun. Just next to Garg’s mill, while the FCI godown is full of rice and wheat, thousands of bags containing paddy procured by Haryana’s procuring agency, Hafed, lie in the open for lack of storage facilities. In wheat, however, the government has learnt a lesson and started a pilot project with the private sector. A few kilometres away, the government, in partnership with the Adani Group, has inaugurated a state-of-the-art storage and transportation facility for wheat. The mammoth steel silos can store up to 200,000 tonnes (an additional 200,000 tonnes can be stored at similar facilities in Moga, Punjab) for two years without human intervention and with in-house drying and fumigation facilities. FCI chairman and managing director Alok Sinha flagged off the rakes connected to the silos on 14 October. They are headed for Navi Mumbai, from where the wheat will go to Maharashtra’s ration shops. The technology is not yet suitable for paddy that has higher moisture. Further north, in Punjab, the procurement of paddy goes on in the traditional manner. In the Rajpura mandi, Patiala district, farmers who have brought paddy discoloured by the unexpected rains and floods are being packed off. The good grain is ready to be sold to the consumer. Photographs by Madhu Kapparath/Mint Source: LatestNews-Home - Livemint.com | 17 Oct 2008 | 7:16 pm The other Spider(man)It has been pointed out to me, by one good man who reads well, that it is surprising that I, a journalist who writes a column on comics, should continue to ignore the most famous journalist to populate a comic book. I know you like Menecken, Wolfe and Thompson, this person told your favourite columnist (am not? then you’re on the wrong page), so why has Spider Jerusalem never made an appearance in the column? Why indeed?  Writer’s block: Spider has nothing to say. Jerusalem, for those of you who don’t recognize the names, is where the Wailing Wall is and, as I told you good people once, you are on the wrong page. Spider Jerusalem is a bald skinny man with an abundance of tattoos on his body, who loves shooting and shooting up (a bouquet of exotic drugs including Queen Ant extract, whatever that may be), and who lives in the foreseeable future. A misanthrope at heart (if he has one), Jerusalem takes on the political establishment, including a president or two, through his writings, which are high on invective and feeling and low on fact. In one story, he submits an 8,000-word article featuring one word—f***. While Spider’s own writing is boringly scatalogical at worst and rabidly poetic at best, Ellis’ is sharp, witty, and pithy. That made Transmetropolitan (illustrated largely by the talented Darick Robertson) a cult comic book (it began in 1997 and ended five years later in 2002). While some of the later books (all the books are collected in 10 trade paperbacks) may show what seems like unseemly haste, the plot itself (good journalist against bad politician) is purely incidental. What isn’t is Messrs Ellis and Robertson’s vision of the future—media-rich, druggy, dark, violent (what serious book reviewers would call post cyber or post punk, or, even better, post cyberpunk). So, to return to the original question, why did readers have to wait so long to get to know Spider Jerusalem? Maybe this writer was, to use a cliche, saving the best for last (actually, not really last because there are, by my count, at least two more CFs to go). Maybe he didn’t want to share a good thing. Maybe he thought no one would really get Spider or Ellis. After all, few people get Thompson. Or maybe it was because Spider wanted to be left alone. Surely, even the attention of the fraction of this country’s billion population that reads this paper (I call this group the smart set) would be too much for a man who doesn’t really like to be in the public eye? Write to Sukumar at cultfiction@livemint.com Source: LatestNews-Home - Livemint.com | 17 Oct 2008 | 7:14 pm Layoffs spreading across corporate AmericaBOSTON (Reuters) - Shock waves from the global financial crisis are now being felt in almost every corner of working America as companies press the eject button on increasing numbers of employees.Source: Reuters: Money News | 17 Oct 2008 | 7:04 pm Rupee lowest since June ’02 as Sensex slides below 10,000Mumbai: The rupee fell to a six-year low as the nation’s benchmark equity index slid below 10,000 for the first time since June 2006, stoking concerns that capital outflows will quicken. The currency completed a 10th weekly loss after the Bombay Stock Exchange’s Sensex slumped for a fourth week, taking the benchmark index’s decline this year to a record 51%. The rupee also dropped on concerns that measures taken by global central banks and governments won’t be enough to stave off the credit crisis. “Measures taken by authorities haven’t been able to restore investor confidence,” said P.V. Rao, a currency trader at IndusInd Bank Ltd in Mumbai. “Indian assets are bearing the brunt and a steeper fall looks inevitable.” The rupee weakened 0.8% this week to 48.88 a dollar at the 5pm close in Mumbai, according to data compiled by Bloomberg. That is the lowest since June 2002. The currency’s 10-week losing streak is the longest since December 2005. Anoop Agrawal contributed to this story. Source: Home - Livemint.com | 17 Oct 2008 | 7:02 pm Steel ministry to help industry tackle slumpNew Delhi: The steel ministry has in principle agreed to the demands made by the industry to help it tackle the downward slump in demand, triggered by the worldwide financial crisis. The ministry will shortly forward a note to the finance ministry seeking a combination of provisions that may include duty imposition on steel products to check cheaper imports and reduction in export duty among others. In return, the industry has promised not to increase prices from the current levels. However, analysts say with the demand slowing down worldwide, it will automatically bring down prices. “The worldwide recession would impact the greenfield expansion plans of the Indian steel companies as raising finances is a big issue,” Ram Vilas Paswan, union minister for steel, chemicals and fertilizers briefed reporters after a meeting with the representatives of the steel industry such as Naveen Jindal, executive vice chairman and managing director, Jindal Steel and Power Ltd, Sajjan Jindal, vice chairman and managing director JSW Steel, Sushil Kumar Roongta, chairman, Steel Authority of India Ltd, B Muthuraman, managing director, Tata Steel and Prashant Ruia, managing director, Essar Steel Limited among others. “It is for the finance ministry to decide on the measures. If we had not found merit in the steel industry’s proposal, we would not have called the meeting. The raw material prices have substantially increased. For example, the coking coal prices have increased three times from $100 per tonne from last year. The problem has reached a point when the industry will face problems in surviving,” Paswan added. Expressing the steel industry’s fears Muthuraman added, “There is a problem in raising finances.” Tata Steel is the largest private sector domestic steelmaker. In a related development the steel ministry also wants to form a special purpose vehicle and invite private sector participation for the Jharia coal mines to tackle the problem of underground fire and tap 17 billion tones of coal reserves. “Coal India Ltd does not have the resources to deal with the problem,” Paswan said. Source: LatestNews-Home - Livemint.com | 17 Oct 2008 | 7:01 pm Rajasthan to guarantee title for property buyersNew Delhi: In a move of far reaching implications, the Rajasthan assembly on 8 October, little less than week before elections were notified in the state, endorsed a pioneering land title bill under which for the first time in the country, the state government will guarantee title for property buyers. Guaranteeing land title is an essential precondition to getting grants under the Rs50,000 crore Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for urban renewal projects. Mint had earlier reported that at least three states were in the process of implementing the reforms. ”We have finally accomplished it. This (signing the bill) means the government has finally proclaimed its intent. This means it is only a matter of time,” said Swati Ramanathan, co founder of advocacy group Janaagraha, who spearheaded the project, called CLEAR (complete land evaluation and administration of records) for the government of Rajasthan. Under the system envisaged, the government will provide what is called provisional title that will convert to indisputable title if it is not challenged over a two-year period. The move will remove uncertainty surrounding more than half the land deals in the country because most property owners do not have clear title to their holding. The government currently does not guarantee ownership of land. It merely endorses a property transaction between two parties for which it has collected tax. ”We are in the process of signing an MoU (memorandum of understanding) with the NSDL.” The National Securities Depositary Ltd, the agency that led the move to dematerialize shares, or convert them into electronic form, will help in mapping the records and converting them into electronic records. Ramanathan however said that it could be as many as 6 months before the first guaranteed titles are handed out. Until recent; all land in Rajasthan technically belonged to the government, with citizens only holding what is called a leasehold. Rajasthan chief minister Vasundhara Raje had in her budget speech of 2007 announced the government’s intention to undertake fundamental land reforms. For a start the act would cover all government-distributed land, while providing incentives to private land owners to convert to freeholds. Source: LatestNews-Home - Livemint.com | 17 Oct 2008 | 7:01 pm Satyam’s low recruitment target spells worries But there are enough worrisome signs in the company’s results that explain why its shares trade at less than eight times estimated earnings for the current year. To start with, the company has said that it would hire only 8,000-1,000 people on a gross basis this year, against its earlier target of 14,000-15,000 employees. On a net basis, the addition will be much lower. For instance, the company hired 5,200 employees in the first half of the year, but lost more than half that number through attrition. The net addition to the employee base was just 2,465. If the same number of employees are added in the second-half period, that would translate into a growth of less than 11% in employee base this year. Since revenues in dollar terms are expected to grow by about 21% this year, that probably points to a lacklustre outlook for the next year. The low rate of employee addition is only one of analysts’ worries. Some of the beleaguered financial institutions in the US, such as Lehman Brothers Inc. and American International Group Inc., are clients of the company, and although the company claims that it’s business as usual with these clients, the markets aren’t convinced that things will stay that way. One analyst pointed out that the drop in the number of clients providing more than $1 million (Rs4.87 crore) in annual revenues, from 237 at the end of the June quarter to 230 currently, is also disconcerting. The consulting and enterprise solutions segment, which contributes to as much as 44.5% of revenues, grew at a slightly lower rate than the company average. This segment has traditionally grown at a faster rate and, considering that SAP AG has recently stated that it expects sales of its enterprise solutions packages to slow, the outlook for Satyam’s largest service offering looks bleak. In sum, valuations may look cheap based on current year’s earnings, but note that next year’s earnings may well decline if the situation in the US doesn’t improve quickly. With a bleak outlook on earnings and negative newsflow expected as far as IT spend is concerned, Satyam shares may well continue to be cheap. Write to us at marktomarket@livemint.com Source: Home - Livemint.com | 17 Oct 2008 | 7:01 pm HDFC rides the housing slump Last quarter, loans grew at a lower rate of 22.6%. The reported net interest income grew by 29% in the three months to September, at the same level as the June quarter. But adjusted for profit on sale of investments, net income grew by 26.6%, lower than the 33.2% reported in the June quarter. Growth rates may have dipped, but the markets are not worried. In fact, considering the rate at which the housing market has slowed, it’s commendable that demand for HDFC’s loans continues to grow at a steady pace. As a result, even though the markets fell by about 6% on Friday, HDFC shares fell only 1%. In fact, since the company last reported results in mid-July, its shares have outperformed the Nifty index on the National Stock Exchange by 24%. Even after adjusting the value of its subsidiaries and investments, HDFC trades at a rich valuation of about 3.2 times book value. Also See Outperformer (Graphic) Given its relatively high foreign institutional holding of over 60%, one would have expected its shares to take a beating this year, especially since foreign institutional investors, or FIIs, have been offloading most Indian stocks. It instead turns out that HDFC is one of the rare stocks where FII holding has increased compared with the June quarter. Evidently, the markets like the steady growth in earnings the company reports quarter after quarter. Despite the slowdown in disbursements last quarter, operating profit grew by an impressive 30%, a rate of growth which the markets have come to expect. Of course, growth rates could fall since high interest rates are expected to take a toll on demand for housing finance. But it’s also important to note that the average size of HDFC’s loan disbursements is rather low at Rs15 lakh, indicating that its exposure to the high-end segment is limited. Demand in the low mid-size market is not expected to drop as much as the high end of the market, and in that respect HDFC seems relatively well placed. Write to us at marktomarket@livemint.com Graphics by NSE Source: Home - Livemint.com | 17 Oct 2008 | 7:00 pm Why Indian banks are immune to the US diseaseAs the global financial crisis deepens, rumours continue that Indian banks could eventually be faced with similar problems. Such speculation needs to end because it has no basis in fact. The situation that has developed in the US has little similarity to the reality in India. The root cause of the problems the US banks face is simply that a large number of Americans were enticed by mortgage lenders into taking unrealistically high housing loans, which represented 100% and more of the value of the houses, and that they did not have the wherewithal to make the necessary repayments. With slowing economic growth and growing mortgage defaults, the underlying asset value of housing in America went into decline. In too many cases, this has resulted in loan values exceeding the market value of the properties. In such a situation, the financial incentives for householders to continue to pay mortgages on properties—where the loan value exceeds the value of the property—are very low. As a result, homeowners started voluntarily defaulting on repayments. For primary lenders and others holding these debts on their books, this has meant that they have been unable to recover the full value of the housing loans, leading to huge business losses. This is not the situation in India for three reasons. The first is that almost 90% of the national housing stock is owned outright. This means that the aggregate exposure of lenders in the country to residential mortgage debt is modest by American standards. Second, for the minority of homes in India financed partly by loans, the equity householders have in their homes is typically high. This is because mortgage lending norms in the country are more conservative and generally require borrowers to have a savings history and the ability to self-finance house purchases to the tune of at least 20% of the value of the house at the time of purchase. In a typical case, therefore, buyers entering the housing market have a sensible equity stake in the property at the point of purchase that insulates the value of their equity should house values fall. In other words, the financial incentives for Indian borrowers to voluntarily default on housing loans is low because the possibility of the loan value exceeding the market value of the property is remote. Also, Indian banks generally ensure that borrowers have the financial capacity to make the necessary loan repayments before agreeing to lend and this better assures that involuntary defaults on loan repayments is minimized. In addition, Indians have a preference to buy assets with the money they have rather than taking a loan. This means the general orientation of Indian consumers, unlike their US counterparts, is to minimize rather than maximize credit exposure. The fundamentals of the lender-borrower relationship, in terms of risk-sharing is, therefore, sound. The third reason is that Indian banks hold only a part of the aggregate housing mortgage debt. Traditional borrowing practices are still strong, with a significant number of loans being sourced from informal channels and not banks. In 2006-07, for example, at least 40% of house buyers borrowed from informal sources, including friends and relatives. The current situation, therefore, is that there is no need for anxiety that Indian banks will find themselves in the same situation as banks in the US. But it does produce a paradox of sorts. Shoring up sagging residential housing demand is one strategy that can be considered to ensure a softer landing for the Indian economy in a slowing global growth scenario, and to achieve that, some easing of bank housing mortgage interest rates rather than any anxiety to limit mortgage exposure could be a desirable step. Christopher Butel is chairman of IIMS Dataworks. The article is based on findings from the Invest India Incomes and Savings Survey 2007. Respond to this column at feedback@livemint.com Source: Home - Livemint.com | 17 Oct 2008 | 7:00 pm Bonds advance for a third straight weekMumbai: Government bonds completed a third weekly gain as crude oil more than halved from its July peak, spurring optimism that inflation will cool. The benchmark 10-year yields declined to the lowest in almost seven months on speculation the central bank will cut interest rates for the first time in more than five years after inflation slowed to a four-month low. Measures by the central bank and the government to boost cash at banks lowered the overnight lending rate to a seven-week low, increasing demand for bonds. “Investors are now pricing in the probability of a cut in interest rates as inflation is showing a slowing trend and growth has been choked off a bit too much,” said Sanjay Arya, treasurer at state-owned Bank of Maharashtra in Mumbai. “That is making fixed-income securities a lot more attractive at present.” The yield on the benchmark 8.24% note due April 2018 fell 8 basis points this week to 7.72% at close in Mumbai, according to the central bank’s trading system. The price rose 0.52 per Rs100 face amount to Rs103.47. A basis point is 0.01 percentage point. The 2018 bond yield may decline to 7.5% next week, Arya said. India’s inflation slowed to a three-month low of 11.44% in the week ended 4 October, government data show. The Reserve Bank of India on 15 October reduced the amount of deposits lenders must set aside as reserves for the second time in a week and eased restrictions on its lending to banks. It cut the so-called cash reserve ratio to 6.5% from 7.5%. The bank had lowered the cash ratio by 150 basis points last week, the steepest cut since 2001. India has injected Rs1 trillion through reserve ratio cuts since 11 October as money market rates surged and mutual funds sought government help to meet the highest redemptions by investors this year. The rate at which banks lend to each other overnight closed at 6.95% the lowest level since 29 August. It had soared to 23% on 10 October, a 19-month high. Crude oil on Thursday fell $4.69, or 6.3%, to $69.85 a barrel, the lowest settlement since 23 August 2007. Crude traded at $70.48 at 1.29pm London time on the New York Mercantile Exchange. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 17 Oct 2008 | 6:58 pm Mismanaged moneyThis is the worst of times; or the best of times—for the government to take a hard look at better managing the public money it has at its disposal. And Thursday’s strictures by comptroller and auditor general (CAG) Vinod Rai are very pertinent while taking that hard look. At the latest biannual meet to assess the challenges that CAG faces in its role of ensuring public accountability, Rai indicated just how bad the situation is. CAG reports, which regularly provide stark details of lapses in public accounts, are tabled in Parliament and require action-taken responses by the ministries concerned. Rai pointed to “huge pendency” in submission of even basic, first-level replies for audits from 1994 right till 2008. This only affirms lack of genuine accountability in government. At the same venue, there was talk about making NGOs using public funds accountable to Parliament. Which is fine. The irony here is that civil society attempting social audit of state spending faces hostile governments. More than CAG, it’s the institution of Parliament that’s facing a big challenge. Source: Home - Livemint.com | 17 Oct 2008 | 6:47 pm Why India is worse off today than in 2006Mumbai: India’s benchmark stock index, the Bombay Stock Exchange’s Sensex, fell below 10,000 Friday, a level it hasn’t seen since 20 June 2006, finally catching up to macro-economic indicators that point to a rather stark conclusion: the country, and by extension, its people, are worse off now than they were 28 months ago. The same 28 months that saw the Sensex cross the 21,000 mark had also witnessed other dramatic changes in factors affecting India’s economy and its standing as an investment for foreign companies and investors. The prevailing sentiment in June 2006 was greed. In October 2008 it is fear supported in part by worsening economic data. The Sensex closed at 9,975.35 on Friday. The rupee at Rs48.89. And, on Thursday, the government announced that inflation, as measured by a rise in wholesale prices was 11.44%. Also See Worse off (Graphic) In June 2006, inflation was 5.21%. And the rupee was trading at Rs46.06 to the dollar. The currency would go on a twisting ride that would see it touch Rs39 to the greenback in 2007 before threatening to touch Rs50 in recent weeks. The rupee has lost more than 19% this year, the most since 1991 when an acute balance-of-payments crisis forced the nation to pawn its gold with the International Monetary Fund to pay for imports. And the country’s industrial growth has slid from 9.6% in June 2006 to 4.9% now. In 2006, not too many people in India were familiar with the term subprime mortgage, or housing loans extended to people with poor credit history that were bundled into complex securities and sold, and which eventually resulted in the collapse of several US investment banks and the ongoing credit crisis across the world. But, while politicians and bulls caught flatfooted would like to point to the US, not all of India’s ailments can be blamed on the US-led markets meltdown alone. For instance, the country’s fiscal deficit now is Rs116,890 crore sharply above the June 2006 level of Rs77,740 crore. Also See How the Sensex stock fared (Graphic) Meanwhile, key economic reforms, many requiring parliamentary approval, have languished as the ruling United Progressive Alliance government lurched from one political crisis to another, the latest being a trust vote that it won on 22 July for the India-US nuclear deal. Now, with five states going to the polls in the next two months and Lok Sabha elections scheduled to happen sometime in the first half of 2009, analysts agree that the next few months are unlikely to see a change in pace of policy making. Despite inflation being where it is—and higher in recent months—some economists blame the Reserve Bank of India’s (RBI) tight monetary policy. As inflation soared on the back of growth and a global boom in commodity markets with the consequent increase in prices, the central bank had, until now, sought to control it. “We are in the soup we are in because of hawkish monetary policy,” claims Surjit Bhalla, managing director, Oxus Research and Investments, a New Delhi-based economic research, asset management and advisory firm. It took the Sensex 19 months from June 2006 to touch its lifetime high of 21,206.77 on the back of a seemingly unending flow of foreign institutional investors (FIIs) enamoured with the so-called India story. But the global credit crisis, an unprecedented liquidity crunch and looming recession in the world’s biggest economy have seen the index plunge to the current level in just nine months. In the process, Indian stocks may have just become more affordable to some willing to ignore decelerating earnings and a weakening economy. The price earnings (PE) multiple of the Sensex’s 30 constituent stocks was 17.78 in June 2006. This has fallen to 12.52 now. This PE indicator is the price of a stock expressed as a multiple of the earnings per share. But, the India story has worn thin too in this period, although the country is still much better off than several others. While still respectable, especially by current global standards and recessionary talk, the growth of India’s gross domestic product (GDP) is down to 7.9% now from 9.6% in June 2006. and several economists predict it will go down further. “In the worst case scenario, we should see 6-7% GDP growth over the next three years. While other economies are sliding into recession, we are only talking of a slowdown in growth,” said Anoop Bhaskar, head of equity at UTI Asset Management Ltd. The rupee touched a six-year low on Friday and would have fallen further but for the RBI’s continuing sale of dollars in the market to meet the demand of importers. RBI’s aggressive dollar sale is evident from the fact that India’s foreign exchange reserves fell by record $9.9 billion (Rs48,213 crore) to $265 billion in the week ended October 10. India’s foreign exchange reserves in June 2006 were much lower—around $156 billion—and quickly rose to cross $320 billion in May. Since then, the pile has been coming down in the absence of fresh inflow of dollars and RBI’s dollar sale. FIIs have pulled out $11.2 billion from Indian markets this year after pumping in $17.36 billion in 2007. RBI’s policy rate too was lower in June 2006 than what it is now. Similarly, banks’ reserve requirement or the money that commercial banks need to keep with the central bank was higher. On both these counts, RBI is set to adopt a softer approach now as economic deceleration is fast emerging a bigger threat than inflation. The RBI has already cut banks’ cash reserve ratio and released Rs1 trillion into the financial system. Still, liquidity alone may not he able to change the face of Indian stock market. The equity opportunity in India was one of the most celebrated global themes till early this year but the country’s appeal now seems to have waned. The global credit crunch has seen most global investors scrambling to raise cash from their equity portfolios and take them back them home. Worsening macroeconomic indicators are also contributing to this. And the pain here isn’t over, say some investors, because the credit crisis has generated a huge appetite for and almost as big a scarcity of cash. “When preference for cash weakens, only then will investors look at risky assets,” said Narayan Ramachandran, chief executive officer of the India unit of US-investment bank Morgan Stanley. “India (till then) will be a reasonable middling emerging market country in terms of attractiveness.” The biggest short-term risk for Indian stock markets and other Asian markets is more capital outflows as risk aversion grows and portfolio funds continue to face redemptions, say analysts. The risk of short-term capital outflow “is clear from the recent dramatic weakening of emerging market currencies in current account-deficit countries,” said Christopher Wood, chief strategist at foreign brokerage CLSA Asia-Pacific Markets, in his Thursday report. Still, he wrote, “Asia and emerging markets will end up being the chief beneficiary of the current increasingly aggressive global monetary easing in terms of where the liquidity flows in the next liquidity cycle.” Brokers and foreign fund managers in India, however, don’t expect to see any of that money soon. They say the sell-off by FIIs will continue for at least another three months. “It’s going to be another couple of quarters, may be three quarters, before FIIs turn net buyers in the market,” said Ramachandran. Meanwhile, local institutional investors are taking a longer-term view. “People should focus on what will happen in five to 10 years, equities will outperform holding cash,” said UTI’s Bhaskar. Still, India’s economy is fundamentally strong say some economists, pointing to strong foreign direct investments inflows, which hit $14.6 billion in the five months to August compared to $6.5 billion in the year-ago period. “We expect interest rates to come down early next year and the growth to return to 8% by 2010,” said D.K. Joshi, principal economist at rating agency Crisil Ltd. All eyes are now on RBI which meets next week for a mid-year review. After greed and fear, comes hope. nesil.s@livemint.com Ashwin Ramarathinam of Mint and Anoop Agrawal of Bloomberg contributed to this story. Source: Home - Livemint.com | 17 Oct 2008 | 6:46 pm No liquidity crisis at ONGC, says CMDNew Delhi: India’s biggest exploration company, Oil and Natural Gas Corporation or ONGC, has said the current financial crisis will not affect its plans to buy UK’s Imperial Energy Plc. ONGC, which agreed to buy Imperial Energy at 1.4 billion pounds, last month said it might take a $1 billion bridge loan to partly fund the purchase. ”We’ll not be entirely dependent on that (bridge loan). … That was as a matter of due diligence that we wanted to have bankers also, those who have helped us in financial due diligence to take part in funding process…if need be, we have the liquidity available with us,” ONGC Chairman R S Sharma said at an Energy Summit organized by industry body Assocham in New Delhi on Friday. Click here to watch video International oil prices averaged around $115-120 a barrel in August when ONGC made the 1,250 pence a share successful bid to acquire Imperial, a company that has oilfields in Russia. The crude oil prices have since fallen below $70 a barrel. Crude prices decide the value of acquisitions in the oil and gas sector as they indicate the monetary value of the reserves in ground. Sharma said ONGC had not slowed down on overseas acquisition because of a slide in crude oil prices. Instead he said the company would in fact continue to pursue acquisitions aggressively. “We have not slowed down. We in fact feel it is suitable time for stepping up the ante,” he said, adding the company at any given point of time would be looking at 6-10 opportunities. According to Bloomberg Data, the company had almost $5 billion in cash and deposits, including short-term investments as of March this year. When asked whether the fall in crude oil prices were denting ONGC’s margin, Sharma said, ”The impact is going to be diluted.” He said that the depreciation of the rupee against the dollar has helped the company’s overall revenues. He added he did not see crude oil prices staying at the current levels. ”When we talk of fundamentals, fundamentals say that prices are going to remain firm. Today’s situation of oil at $70/barrel is not because of market forces or fundamentals”. Sharma said the cooling down of the oil prices was due to a fall in artificial demand. Source: LatestNews-Home - Livemint.com | 17 Oct 2008 | 6:38 pm MRTPC orders probe into JetKF allianceMRTPC or Monopolies and Restrictive Trade Practices Commission has ordered a probe into Jet Airways Kingfisher Airlines alliance, reports CNBCTV18 quoting PTI. Earlier, CNBCTV18 had reported on October 15 that MRTPC was planning a probe on the JetKingfisher alliance.Source: Moneycontrol Top Headlines | 17 Oct 2008 | 6:25 pm Govt mulls fuel rate cut after airlines toe lineNew Delhi / Mumbai: In a quid pro quo of sorts, the government said it would consider a rationalization of jet fuel prices if the country’s airlines, bleeding under the cost of fuel and slowing passenger traffic, do not lay off employees. Statements hinting that a cut in the cost of jet fuel or aviation turbine fuel (ATF) was in the offing, and that the oil companies would go slow on recovering dues from airlines for fuel sales were made by the civil aviation minister Praful Patel and petroleum and natural gas minister Murli Deora, and came a day after the country’s largest airline by passengers flown, Jet Airways (India) Ltd, reversed a decision to lay off 1,900 employees, a move that provoked outrage among the workers and evoked strong reactions from politicians, including the Union labour minister. Also See Dollar Advantage (Graphic) Jet fuel accounts for around 45-55% of the operating costs of airlines in India and costs 70% more in the country than in foreign markets because of multiple taxes, including one levied by the states. Around 4.7 million tonnes of jet fuel is sold in the country every year and domestic airlines consume half of this. Mint reported on Friday that India’s airlines owe oil companies around Rs1,800 crore over and above the credit limit they have with these firms. “I told him (Naresh Goyal, the chairman of Jet Airways) that until and unless you create an atmosphere for the government to consider your demand (of rationalizing ATF prices), we cannot be pushing it. A committee headed by the cabinet secretary (K.M. Chandrashekhar) is looking at it. Everybody has to understand that industry is in trouble,” Patel said. Independently, Deora and a senior member of the parliamentary standing committee on transport, tourism and culture, who did not wish to be named, confirmed that a move was afoot to rationalize ATF prices. “There is a chance of rationalizing ATF prices. It will be worked out between the ministries,” Deora said. Key Opposition parties said the move had their conditional support. Sitaram Yechury, a member of the Communist Party of India (Marxist) said: “It (ATF price rationalization) should be neutral to all players. However, first the prices of diesel and petrol should be brought down, which should be followed by ATF price rationalization.” “I am not aware that the government is considering rationalization of jet fuel taxes. If it happens, it will not only help us, but also (the) entire aviation (industry),” said a Jet Airways executive, who asked not to be named given the controversy surrounding the airline’s initial decision to fire 1,900 employees that was subsequently rescinded. India’s airlines, including Jet, are expected to end this year with aggregate losses of around $2 billion (Rs9,740 crore), up from last year’s losses of around $1 billion. Neither Jet’s executive director Saroj K. Datta nor chief executive officer Wolfgang Prock-Schauer could be reached for comment. A paper released by consulting and research firm Deloitte, on 16 October at the Hyderabad Air Show, said rising fuel prices affect an airline’s profitability and have a cascading effect on the other support services. Government levies on ATF work out to around 35%, including an import duty (20%) and an excise duty (8%). Recommending a uniform tax, Deloitte said one option would be to reduce the excise duty to 4% and to undertake measures to remove the disparity in taxes levied by states. “ATF may be put under declared goods category to bring about uniformity in levy of sales tax. The government can also allow airlines to import ATF to reduce the cost by almost 25% than what the airlines are paying oil companies,” the paper said. Kingfisher Airlines Ltd is in talks with Reliance Industries Ltd and other state-run oil marketing firms to import ATF. “The application for the same is stuck with the government,” said a Kingfisher Airlines executive, who asked not to be named because he is not authorized to speak to the media. A. Raghunathan, chief financial officer of the UB Group-owned airline said: “Our fuel bill per month is around Rs200 crore. Therefore, what ever percentage is the reduction in the ATF prices — that should be our relief.” Earlier this week, the government threw in its lot with that of the sacked employees of Jet. Elections to five key states are to be held in the next two months ahead of Lok Sabha elections that are scheduled for next year. Patel contradicted Goyal, who said the airline had unilaterally decided to reverse its initial decision on the layoffs. The minister said the decision was due to the government’s intervention. The Jet Airways executive quoted in the first instance said the decision was not “motivated by any political pressure”. “Had Jet not taken back the employees, they would have faced consequences,” said a minister, who did not want to be identified. “We support the civil aviation ministry’s proposal. The oil companies and airlines will work together to sort out their differences. Even Vijay Mallya (chairman of Kingfisher Airlines) spoke to me and promised that he will not lay off employees. If airlines lay off employees, they will not have my support,” said Deora. Shiv Sena’s executive president Uddhav Thackeray and Maharashtra Navnirman Sena chief Raj Thackeray, too, said they were responsible for Jet’s decision. liz.m@livemint.com Source: Home - Livemint.com | 17 Oct 2008 | 6:25 pm Jet’s top brass eye 25% pay deferral; seek other savingsMumbai: Jet Airways (India) Ltd’s senior management is considering up to 25% reduction or deferral in pay for a year, as the airline tries to ride out tough times even as it faced — and caved in to — political pressure over job cuts. A senior Jet executive confirmed the development while not wanting to be identified.  On cloud nine: Reinstated Jet Airways employees celebrate in Mumbai on Friday. The job cuts had come on the heels of Jet striking a deal with rival Kingfisher Airlines for sharing resources and network. Indranil Mukherjee / AFP Late Thursday night, Jet said it will no longer fire some 1,900 employees, many of them cabin staff, who were being asked to go because the airline, along with its Indian peers — has run into a perfect storm of rising fuel prices — an ill-timed international expansion and falling passenger traffic within India. Jet Airways founder and chairman Naresh Goyal tried to repair the public relations damage stemming from two days of protests and political backlash over the job cuts by meeting some of the reinstated cabin crew at the Hilton Hotel in south Mumbai. The staff were transported in some dozen buses from Jet’s headquarters. The gesture as well as the decision to reverse course on layoffs appears to be working. “It was a wonderful experience. We are very happy to be back in the company,” said Zuhaib Gul, after the meeting with Goyal. He has been with Jet for six months when he was let go on 15 October. “It was like a father (Goyal) kicking his child (cabin crew) out of his house to take in his neighbour (Kingfisher Airlines Ltd owner Vijay Mallya),” said another cabin crew member who didn’t want his name used. “The suspension letter was a shock to us. Hope things will be alright now.” Some other flight attendants told Mint that Goyal assured them there would be “no pay cuts” for the reinstated employees and that they could start work on Monday. The job cuts had come on the heels of Jet striking a deal with rival Kingfisher to share resources and network. In announcing the reinstatement, Goyal insisted that he was only following his conscience and not any directives from politicians and ministers, many of whom openly said they would seek a reversal of the Jet decision. Several attempts to talk to Jet Airways chief executive officer Wolfgang Prock-Schauer were unsuccessful. The rehiring adds to the economic stress that Jet, India’s largest carrier by passenger volume, is facing. Indeed, the airline has also started negotiations with vendors, including airplane lessors, parts and fuel suppliers to look for more ways to save costs. “The airline has started re-negotiations with its vendors and has taken steps to reduce fixed costs,” said another Jet executive, adding that it plans to return some planes to lessors or to do a sale-and-lease-back arrangement to reduce losses. “We are also in talks with providers of engineering services, spare and other support measures to explore discounts or concessions.” Jet Airways’ stock closed 6.3% lower at Rs243.85 a share on Friday. Jet noted on 15 October that India’s aviation industry is expected to lose $2 billion in fiscal 2008-09. Jet has already pruned its long-haul expansion apart from offering 15% fewer total flights. Beginning April, Jet had started several routes, including to West Asia, Hong Kong, San Francisco, Toronto, Bangkok and New York. The number of employees went up from 11,088 as on 31 March 2007 to 13,163 through March 2008. As a result, employee remuneration, increments and benefits for the same period also increased 28.5% from Rs938.1 crore to Rs1,205.2 crore “Instead of sacking flight attendants of Jet Airways and its subsidiary JetLite Ltd, Goyal should have revisited the salaries of foreign national managers and celebrities in the company,” complained one middle-level manager with Jet who didn’t want to be named, claiming that the expenses of the company’s board, which includes actor Shah Rukh Khan and lyricist Javed Akhtar, comes to Rs25 crore annually. Mint couldn’t independently confirm this figure. Khan is also a recent pitchman for Jet’s international service ads. Source: Home - Livemint.com | 17 Oct 2008 | 6:25 pm Asia Pacific Breweries to expand in IndiaMumbai: Asia Pacific Breweries Ltd, the Singapore-based joint venture between Dutch brewer Heineken NV and Singapore’s Fraser and Neave Ltd, is consolidating its position in India by setting up two new breweries and appointing a new chief executive for South Asian operations. The firm’s Indian operations came under a cloud after Heineken, a majority stakeholder, inherited a 37.5% holding in rival United Breweries Ltd, India’s largest beer company, from Scottish and Newcastle Plc. (S&N) after a global buyout in January. S&N had been a long-time partner in the Vijay Mallya-led United Breweries. Asia Pacific, which sells global brands, Baron’s Strong Brew and Tiger, as well as local brand Cannon in India, operates the fully owned Asia Pacific Breweries (Aurangabad) Ltd in Maharashtra and another at Hyderabad in partnership with the Andhra Pradesh brewer C.K. Jaipuria. Asia Pacific is now planning a third, new brewery in Goa, with a proposed annual brewing capacity of 350,000 cases, and another in an yet undecided location. Asia Pacific is likely to re-launch Arlem beer in India and is looking at Himachal Pradesh as a possible brewery location. Asia Pacific’s newly appointed South Asia chief executive officer and head of Indian operations, Aswin Deo, said the company plans to expand its brewing capacities to northern India as well as Goa. He declined to give details. Source: World Business - Livemint.com | 17 Oct 2008 | 6:02 pm Is Hino gearing up for commercial launch by AprilMay \'09?Home grown commercial vehicle majors Tata Motors and Ashok Leyland might have some stiff competition coming up and this time from an unlikely source, Toyota. Japanese commercial vehicle major Hino, which is half owned by Toyota, has chalked out concrete plans for India.Source: Moneycontrol Top Headlines | 17 Oct 2008 | 5:52 pm Goldman Sachs, Edelweiss bid for 75% in PNB Gilts: SourcesPunjab National Bank is looking to sell it 74.7% stake in PNB Gilts. Sankalp Saini of NewsWire 18 informed CNBCTV18 that the bids for this stake has been submitted and would be opened on October 30. He added that he heard from sources that Goldman Sachs and Edelweiss Capital were among the bidders.Source: Moneycontrol Top Headlines | 17 Oct 2008 | 4:20 pm United Phosphorus eyes 2040% in Israel co: SourcesSources said CNBCTV18\'s Varinder Bansal that United Phosphorus, which has been on the spree of acquisition for last two years, is in talks to buy 2040% stake in israel\'s Makhteshim Agan Group. Bansal finds out how far have the talks reached.Source: Moneycontrol Top Headlines | 17 Oct 2008 | 4:00 pm Merrill wealth unit shows signs of weaknessNEW YORK (Reuters) - Merrill Lynch & Co reported a worse-than-expected third-quarter net loss on Thursday, as even its wealth management business -- previously a cash cow for the struggling bank -- saw more money leave than come in.Source: Reuters: Money News | 17 Oct 2008 | 3:25 pm
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