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Amul to foray in beverage mktFirst it was milk, then it was milk products, then bakery items like bread and frozen pizzas. Now, Amul is looking for a stronger presence in the Rs 500 crore milk beverages market and to bridge the gap into the much larger fruitbased beverage market.Source: Moneycontrol Top Headlines | 6 Nov 2008 | 5:28 pm PE funds pull out of agreements with real estate developersThe slowdown in the real estate sector is getting worse. CNBC TV18 has learnt that PE funds are now pulling out of prior commitments made to real estate developers.Source: Moneycontrol Top Headlines | 6 Nov 2008 | 5:24 pm Mundra SEZ new export hub for auto cosGujarat is fast becoming a hub for auto majors, not just as an expansion option, but as an export hub. Adani\'s Mundra Port and SEZ is one such magnet. CNBCTV18s Sushmita Mohapatra finds out how Mundra Port turns into a new auto export hub.Source: Moneycontrol Top Headlines | 6 Nov 2008 | 4:36 pm Ashok Leyland to announce production cuts in few daysAshok Leyland\'s total sales in October stood at 3,397 units as compared 6825 units YoY. Vinod Dasari, COO, Ashok Leyland, said the company is looking for a production cut and will finalise the same in the next few days.Source: Moneycontrol Top Headlines | 6 Nov 2008 | 2:34 pm Eyeing Rs 5060cr profitability from 2 projects: GVK PowerIsaac George, CFO, GVK Power, said two projects of 684 mw are stranded due to nonavailability of gas.Source: Moneycontrol Top Headlines | 6 Nov 2008 | 2:33 pm Toyota slashes forecasts as global crisis bites!Japan`s Toyota Motor Corp more than halved its profit forecasts, saying annual net earnings will plunge to a 9-year low as a financial crisis batters demand for its cars, cuts access to credit and sends the yen higher.Source: Zee News : Business | 6 Nov 2008 | 1:19 pm Bank of England makes shock 150 basis point rate cutLONDON (Reuters) - The Bank of England delivered a shock 1-1/2 percentage point cut in interest rates on Thursday, taking official borrowing costs to 3.0 percent, their lowest level in more than half a century.Source: Reuters: Money News | 6 Nov 2008 | 1:05 pm Buffett, Soros continue buying stake in cosIn the midst of people selling their stocks as market values touch the nadir, legendary investors-- Warren Buffett and George Soros-- seem to be swimming against the tide.Source: Daily News & Analysis: Money News | 6 Nov 2008 | 1:04 pm Sesa Goa to invest 4 bln rupees for expansionKOLKATA (Reuters) - Sesa Goa, India's top iron ore exporter, plans to invest about 4 billion rupees in the next two years to develop mines and infrastructure, a top official said on Thursday.Source: Reuters: Money News | 6 Nov 2008 | 12:55 pm ECB cuts rates by 50 bps, more action expectedFRANKFURT (Reuters) - The European Central Bank slashed interest rates by 50 basis points on Thursday, hoping to breathe life into the euro zone economy as it faces its first recession.Source: Reuters: Money News | 6 Nov 2008 | 12:52 pm Mkts end in red on higher inflation nos, weak global cues - Moneycontrol.com
Source: Google News India - Business | 6 Nov 2008 | 12:48 pm UPDATE 1-Sesa Goa to invest 4 bln rupees for expansion - Reuters India
Source: Google News India - Business | 6 Nov 2008 | 12:43 pm European shares down after huge British rate cut - Reuters
Source: Google News India - Business | 6 Nov 2008 | 12:42 pm Oil extends loss below $64 after UK rate cutLONDON (Reuters) - Oil slipped further below $64 a barrel on Thursday after the Bank of England cut interest rates by an unprecedented 150 basis points, highlighting deepening fears of a demand-crushing global recession.Source: Reuters: Money News | 6 Nov 2008 | 12:35 pm Hyundai India exports first shipment of 2820 i20s to Europe - Wheels Unplugged - Indis'a Automobile Magazine
Source: Google News India - Business | 6 Nov 2008 | 12:33 pm Volvo CE India expects decline in growthVolvo Construction Equipment India said it expects its growth to decline more than half to 10-15 per cent this year due to the global economic meltdown, which has also hit India.Source: Daily News & Analysis: Money News | 6 Nov 2008 | 12:21 pm Google scraps advt deal with Yahoo!Search engine giant Google has scrapped the much talked about advertising services agreement with internet major Yahoo! primarily due to regulatory concerns.Source: Daily News & Analysis: Money News | 6 Nov 2008 | 12:21 pm I am still young: L N Mittal on successionThe richest Indian and steel czar Lakshmi N Mittal may have worked hard to create the world's biggest steel entity, but says he's not tired and is not yet ready to hang his boots.Source: Daily News & Analysis: Money News | 6 Nov 2008 | 12:20 pm Rajnikant Patel joins Reliance MoneyReliance Money, on Thursday announced that Rajnikant Patel has joined the company as its President--Exchange Business.Source: Daily News & Analysis: Money News | 6 Nov 2008 | 12:19 pm Inflation rises to 10.72% - Times of India
Source: Google News India - Business | 6 Nov 2008 | 12:16 pm Rupee ended at 47,71 - Economic Times
Source: Google News India - Business | 6 Nov 2008 | 12:16 pm New broad gauge line for Sikkim approvedThe Cabinet Committee on Economic Affairs Thursday approved the construction of a new 52.7-km broad gauge line from Sivok to Rangpo in Sikkim on an investment of Rs.13.39 billion.Source: IndiaeNews.com: Business News | 6 Nov 2008 | 12:02 pm Software industry asked to tap domestic marketGujarat Chief Minister Narendra Modi Thursday urged the Indian IT industry to focus on the domestic market to overcome the challenges of global slowdown.Source: IndiaeNews.com: Business News | 6 Nov 2008 | 12:00 pm Equities end in red, key index below 10,000 againAfter yet another day of mauling, Indian equities markets ended in the red once again Thursday with a key index shedding nearly 400 points to close below the psychologically important 10,000-point mark.Source: IndiaeNews.com: Business News | 6 Nov 2008 | 12:00 pm Inflation rate up marginally, touches 10.72 percentIndia's annual rate of inflation, which had been easing for five consecutive weeks, rose slightly to 10.72 percent for the week ended Oct 25, from 10.68 percent the week before, government data released Thursday showed.Source: IndiaeNews.com: Business News | 6 Nov 2008 | 12:00 pm SBI cuts both its PLR and deposit rates; OBC, IOB cut PLR - Economic Times
Source: Google News India - Business | 6 Nov 2008 | 11:44 am Asia-Pacific stocks plunge on Wall Street's cueAsian stocks took a big dive on Thursday, reacting to a sharp fall overnight on Wall Street and wiping away gains from earlier in the week.Source: Daily News & Analysis: Money News | 6 Nov 2008 | 11:33 am Inflation rate rises, touches 10.72%India's annual rate of inflation, which had been easing for five consecutive weeks, rose slightly to 10.72 percent for the week ended Oct 25.Source: Daily News & Analysis: Money News | 6 Nov 2008 | 11:32 am Comexes’ turnover up by 47% despite slump in agri-futuresPTI New Delhi: With the ban on futures trading in eight farm commodities still lingering, commodity exchanges have lost over 32% of their business in agri-futures even as the total turnover rose by 46.90% to nearly Rs28,00,000 crore during 2008-09 till 15 October. The agri-commodities business on commodity exchanges clocked during the review period Rs3,36,431 crore, down by 32.37% from the previous year, the commodity market regulator Forward Markets Commission (FMC) said in a release. Experts attributed the ban on eight farm commodities like pulses, potato and soya oil as the main reason for the slump in agri-futures trading. The government suspended futures trading in rice, wheat, urad and tur without setting any timeframe, while the other four -- rubber, soya oil, potato and gram (chana) -- have been banned till the end of this month. However, during the 1 - 15 October period, the total turnover of the three national exchanges and 19 regional exchanges increased by 39.48% to Rs2,05,590 crore as compared to the year-ago period, according to FMC, which releases trade data every fortnight. As per the FMC data, the turnover of the leading exchange, Multi-Commodities Exchange, stood at Rs1,85,045 crore, while the leading agri-commodity bourse, National Commodities and Derivatives Exchange, recorded a business of Rs18,134 crore. Ahmedabad-based National Multi-Commodities Exchange registered a turnover of Rs1,019 crore. Among the regional bourses, Indore-based National Board of Trade made a business of Rs439.74 crore, while the Surendranagar Cotton and Oilseeds Association’s turnover stood at Rs317 crore in the second fortnight of September. Source: LatestNews-Home - Livemint.com | 6 Nov 2008 | 11:31 am Sensex sheds over 385 points, tumbles below 10k levelClosing Mumbai: The Bombay Stock Exchange benchmark Sensex Thursday once again dipped below 10,000 points level after losing over 385 points on the funds’ selling spree on concerns of deepening global recession fears, coupled with a moderate rise in inflation rate. The Sensex, which had lost 511 points in previous day’s trading, fell by another 385.79 points at 9,734.22 after touching the day’s low of 9,635.22, following a steep fall in blue-chip stocks led by Reliance Industries. The wide-based National Stock Exchange index Nifty also fell below 2,900 points level to trade at 2,892.65, reflecting a loss of 102.30 points. It hit the lowest level of 2,860.25 points during the day. Inflation rose to 10.72% for the week ended 25 October on account of higher prices of cereals and vegetables. Besides, a weakening trend in global stock markets influenced by global financial crisis fears also dampened the trading sentiment on the domestic bourses. While heavyweight stocks led by Reliance Industries, Infosys Technologies and ICICI Bank fell sharply on brisk selling, a smart recovery in realty and healthcare sector stocks saved the market from further fall. “The stock markets are trapped in a global sell-off on fears of a deep recession in the US,” said Rajiv Malik of RNM Financial Services. He said the market was still struggling to recover as even the last cushion of short-covering was not visible after most of the pending long positions were cleared in view of the volatile movements. Opening Mumbai: The benchmark Sensex tumbled by over 430 points and again dipped below the 10k level in early trade today on heavy selling by foreign funds as well as retail investors, tracking an overnight slide on the US markets. The 30-share index, which had lost 511.11 points yesterday, dropped by another 430.17 points, or 4.25% at 9,689.84, as all the sectoral indices were trading in negative zone with losses between 1.3 to 5.25%. The National Stock Exchange index Nifty also fell by 128.90 points, or 4.26% to 2,866.05. Marketmen said fresh capital outflows by foreign funds following weakening global equity markets and weak Indian rupee against US dollar mainly led to a fall in the stock markets. They said drop in stock prices in the two straight sessions wiped out almost half of gains, recorded in the past five sessions. “Weak global cues mainly dampened trading sentiments here,” said a leading Delhi-based stockbroker. The Indian rupee depreciated by 50 paise to Rs47.94 against the US dollar at the forex market in opening trade. Major losers which dragged the Sensex down were Reliance Industries, Reliance Infra, RCom, Bharti Airtel,Infosys Technologies, Satyam Computers, Wipro, Tata Consultancy, Bhel, L&T, Tata Steel, Sterlite Industries and Tata Power. Banking stocks such as ICICI Bank, HDFC Bank and State Bank of India were also trading in the negative zone. Meanwhile, the US Dow Jones Industrial Average closed 5.06% down, while most of the Asian stock markets, led by Hong Hong, were down by almost six per cent in opening trade. Source: Home - Livemint.com | 6 Nov 2008 | 11:26 am BSE Sensex falls sharply on global recession fearsNEW DELHI (Reuters) – The BSE Sensex fell 3.8 percent on Thursday to its lowest close in a week, caught in a broad global sell-off on fears of a deep U.S. recession, while higher-than-expected inflation data added to the pain late on.Source: Reuters: Money News | 6 Nov 2008 | 11:20 am Govt not considering fuel price cut - officialNEW DELHI (Reuters) - India is not considering a cut in retail prices of petrol and diesel as state-run firms are still incurring revenue losses by selling at government-fixed prices, Oil Secretary R.S. Pandey told reporters on Thursday.Source: Reuters: Money News | 6 Nov 2008 | 11:18 am World markets tumble on renewed economic fearsLondon: European stock markets traded sharply lower following overnight losses in Asia, as investors fretted about the global economy ahead of expected interest rate reductions later from the European Central Bank and the Bank of England. The FTSE 100 index of leading British shares was down 146.82 points, or 3.2%, at 4,383.91, while Germany’s DAZ was 169.40 points, or 3.3%, lower at 4,997.47. France’s CAC-40 was down 121.79 points, or 3.4%, at 3,496.32. Europe’s losses echoed those seen on Wall Street Wednesday and in Asia overnight. The Dow Jones industrial average fell 486.01, or 5.1%, to 9,139.27, while the Standard & Poor’s 500 index shed more than 5%. It’s not expected to get much better later, with stock futures down. Dow futures were down 107 points, or 1.1%, at 9,070, while S&P futures were 12.9 points, or 1.4%, lower at 945.1. The losses on Wall Street triggered a renewed bout of selling in Asia with Japan’s Nikkei stock average down 6.5% at 8,899.14, and Hong Kong’s Hang Seng Index 7.1% lower at 13,790.04. “Equities are back in reverse as traders fail to find any letup in the run of downbeat economic and corporate news,” said Matt Buckland, a dealer at CMC Markets. Stocks around the world have enjoyed a strong rally over the last week or so, partly on relief that the US presidential election was coming to an end. However, investors know that President-elect Barack Obama will have his work cut out to improve the US’s immediate economic prospects and that Inauguration Day is still more than two months away. Further proof of the scale of the downturn in the world’s largest economy came Wednesday with the news that the US service sector contracted sharply in October as new orders and employment fell. The Institute for Supply Management, a trade group of purchasing executives, says the services sector index fell to 44.4 in October from 50.2 in September. Analysts had anticipated a far more modest drop. “The honeymoon period for Obama is already proving extremely short-lived, with the run of grim US economic data yesterday highlighting the mammoth task ahead in terms of getting the economy back on its feet,” said Mitul Kotecha, an analyst at Calyon. Despite the underlying concerns about the world economy, Europe’s stock markets will be keeping a close eye on how much the European Central Bank and the Bank of England reduce interest rates later. Both banks are expected to follow the US Federal Reserve’s lead and cut interest rates by at least half a percentage point, though there’s growing talk that the Bank of England may reduce interest rates by as much as a full percentage point for the first time since four cuts of that size in 1992-93 when Britain’s economy was last mired in recession. “The ECB and BoE rate verdicts do have the potential to provide some cheer, especially if the cuts end up at the more aggressive end of the spectrum,” said CMC Markets’ Buckland. Earlier, South Korea’s benchmark Kospi index broke a five-session winning streak to dive 7.6%. Markets in Singapore, Australia and mainland China also dropped sharply. Meanwhile, oil prices slipped $0.20 a barrel to $65.10 a barrel. Oil prices have fallen by about 56% since peaking at $147.27 a barrel in mid-July. The euro was 0.4% lower at $1.2909, while the dollar was 0.3% weaker at ¥97.84. Source: LatestNews-Home - Livemint.com | 6 Nov 2008 | 11:17 am Vedanta H1 profit down 24.7 pct, reins in spendingLONDON (Reuters) - India-focused miner Vedanta Resources Plc posted a 24.7 percent drop in first half profit on Tuesday and said it saw room to cut planned investment spending by $5.1 billion as it grapples with lower metal prices.Source: Reuters: Money News | 6 Nov 2008 | 11:08 am Google scraps advertisemnt deal with Yahoo! - Hindu
Source: Google News India - Business | 6 Nov 2008 | 11:03 am Singapore Air profit drops 36 pct, warns of weak bookingsSINGAPORE (Reuters) - Singapore Airlines, the world's largest airline by market value, on Thursday reported a better-than-expected 36 percent fall in quarterly profit and warned of weakness in its advance passenger bookings.Source: Reuters: Money News | 6 Nov 2008 | 11:02 am Cabinet approves integrated check post on land bordersThe union cabinet Thursday approved the setting up of integrated check posts at 13 identified entry points on land borders at a total cost of Rs.6.35 billion.Source: IndiaeNews.com: Business News | 6 Nov 2008 | 11:02 am Inflation rate rises marginally, touches 10.72 percentIndia's annual rate of inflation, which had been easing for five consecutive weeks, rose slightly to 10.72 percent for the week ended Oct 25, from 10.68 percent the week before, data released Thursday showed.Source: IndiaeNews.com: Business News | 6 Nov 2008 | 11:02 am Direct tax collection up despite slowdownThe economic slowdown doesn't seem to have had a major impact on direct tax collection in the country if the figures released by the finance ministry Thursday are anything to go by.Source: IndiaeNews.com: Business News | 6 Nov 2008 | 11:00 am Equities end in red, key index below 9,000 againAfter yet another day of mauling, Indian equities markets ended in the red once again Thursday with a key share index shedding nearly 400 points to close below the psychologically important 9,000-point mark.Source: IndiaeNews.com: Business News | 6 Nov 2008 | 11:00 am Asian market for office space faces increasing slowdownThe market for office rentals in Asia has slowed further as a fallout of the global economic crisis, according to realty consultancy firm CB Richard Ellis' Asia Pacific Office Market Review for the third quarter of 2008.Source: IndiaeNews.com: Business News | 6 Nov 2008 | 11:00 am Allahabad Bank cuts PLR by 75 basis pointsKolkata: Allahabad Bank announced reducing prime lending rates (PLR) by 75 basis points with effect from 10 November. After the reduction, the PLR of the bank will be at 13.25% compared to 14% at present, the bank said in a statement. The bank will also reduce interest on term deposit by 50 basis points from 1 December. The reduction in PLR was announced in response to recent cut in CRR, the amount of deposits banks need to park with the central bank, and short-term lending rate by the Reserve Bank of India, the bank said. Source: LatestNews-Home - Livemint.com | 6 Nov 2008 | 10:58 am Closing Bell - Economic Times
Source: Google News India - Business | 6 Nov 2008 | 10:50 am Come out with 'Nano' of IT: Modi to software industryGujarat Chief Minister Narendra Modi exhorted the Indian IT industry to emerge from the "comfort zone" of providing low-end services.Source: Daily News & Analysis: Money News | 6 Nov 2008 | 10:50 am Financial crisis likely to continue: BankerThe global financial crisis and the risks emanating from it are likely to continue for some more time, a senior banker said.Source: Daily News & Analysis: Money News | 6 Nov 2008 | 10:47 am Alkali Metals ends with huge premium of 68.35% - Moneycontrol.com
Source: Google News India - Business | 6 Nov 2008 | 10:42 am ONGC eyes IPO money for petrochem plantNew Delhi: Oil and Natural Gas Corp (ONGC) is looking at an initial public offering (IPO) of its subsidiary that is building a Rs13,600-crore petrochemical plant at Dahej, closer to project completion in 2012. ONGC is considering selling up to 25% of the equity shares in ONGC Petro-additions Ltd (OPaL), the special purpose vehicle formed for setting up the petrochemical complex at Dahej SEZ, a senior company official said. It plans to give 19% equity stake in OPaL to state-run gas utility GAIL India, while another 25% interest may be offered to Petronet LNG and Bharat Petroleum or a strategic partner. “We are not considering the IPO right now. The offering may happen in 2010-11 or even closer to the project completion in 2012,” the official said. ONGC holds 26% stake in OPaL and 5% is with Gujarat State Petroleum Corp (GSPC). OPaL will use C2-C3 (ethane and propane) compounds extracted from imported liquefied natural gas (LNG) to make polymers at the proposed plant. The Rs 1,100-crore plant to extract C2-C3 from the LNG that Petronet imports from Qatar would be ready by year-end but the petrochemical project would not come up before 2012. ONGC would in the interim period sell C2-C3 compounds to companies like Reliance-owned IPCL or even export, he said. While GAIL had sought equity in OPaL as it already had a presence in petrochemical business, Petronet may be offered an equity as it imports five million tons a year of rich-LNG (gas containing C2-C3 compounds). Source: LatestNews-Home - Livemint.com | 6 Nov 2008 | 10:29 am Toyota slashes annual earnings forecastTokyo: Toyota slashed its annual earnings forecast to less than a third of what it was the previous fiscal year, the latest stunning sign that the global slowdown and strong yen are taking a toll on Japan’s mighty automakers. Toyota Motor Corp., which has been riding high on the success of its Prius hybrid and Camry sedan, reported that its July-September quarter net profit plunged 69% to ¥139.8 billion ($1.4 billion). A contraction in the vital US auto market, the credit crunch and recent jump in the yen from about ¥118 to a dollar a year ago to ¥100 levels which erodes overseas income have dealt a serious blow to Japan’s biggest automaker. “The financial crisis is negatively impacting the real economy worldwide, and the automotive markets, especially in developed countries, are contracting rapidly,” said Executive Vice President Mitsuo Kinoshita adding: “This is an unprecedented situation.” The company said that it would try to cut costs and adjust production amid a variety of risks and uncertainties, including higher energy and raw material prices. Although Toyota’s sales grew in Asia, South America and Africa, that wasn’t enough to overcome the declines in Japan, North America and Europe. In North American, sales plunged nearly 20% for the first 6 months of the fiscal year. The company cut its net profit forecast for the year ending March 2009 to ¥550 billion ($5.5 billion), or about half of its earlier projection of ¥1.25 trillion ($12.6 billion), and about a third of the previous year’s profit of ¥1.72 trillion. That would be the first decline in profit in at least seven years. There are no comparable numbers before Toyota’s accounting change seven years ago. Quarterly sales dropped 8% to ¥5.98 trillion ($60 billion) from ¥6.49 trillion. “Both the quarterly results and annual forecast revision were far worse than what we had expected,” Yasuaki Iwamoto, auto analyst with Okasan Securities Co. in Tokyo said. “I was extremely surprised,” he said, adding that had expected a full-year projection of about ¥1 trillion ($10 billion). “The reduced profit forecast seems to reflect more than just a drop in sales and the strong yen,” he added. He further said: “The downward revision suggests a shift toward models yielding slimmer profit margins, possible planned price cuts and higher marketing costs.” Concerns about oil prices as well as a growing awareness about the environment have pushed consumers away from gas-guzzling trucks and sport utility vehicles to smaller cars, which deliver less profit for manufacturers. Toyota had so far avoided the serious problems of its money-losing US rivals General Motors Corp. and Ford Motor Co., which had seen on-year double-digit vehicles sale declines in the US for some time. But in October, US sales slid to their lowest in 17 years, dipping 32% overall. Like other Japanese automakers, Honda Motor Co. and Nissan Motor Co. Toyota sales were badly hurt, sliding down 23% despite a zero-percent financing offer. Toyota, which also makes the Lexus luxury models, revised its sales forecast for the year through March 2009 to ¥23 trillion ($232 billion). That’s down 12.5% from ¥26.3 trillion the previous year. Toyota had earlier expected ¥25 trillion ($253 billion) in sales for the fiscal year. Toyota said that it was wary of the global slowdown and the gyrations in stock and currency markets, where the yen surged to a 13 year high late last month and has since eased some. It also said competition in compact cars and other lower priced models is growing. For the quarter ended 30 September, Toyota produced 1.95 million vehicles worldwide, down 2.6% from 2 million vehicles the same period a year ago. Toyota stock fell 10.4% to ¥3,810 ($38). Toyota’s earnings were released after trading ended in Tokyo. Source: LatestNews-Home - Livemint.com | 6 Nov 2008 | 10:08 am Adequate liquidity in banking needed: KochharMumbai: “There is a need to ensure adequate liquidity in the banking system as funding sources overseas have almost dried up,” ICICI Bank Joint Managing Director Chanda Kochhar said. “Global funding sources have almost dried up, now the entire responsibility to support growth lies largely with domestic sources,” Kochhar saidon the sidelines of a banking seminar organised by Ficci and the Indian Banks Association. Emphasising the need for liquidity in the banking system, Kochhar said that liquidity was needed also to support the economic growth of the country in the long term. “It is important to provide more liquidity to support growth apart from levelling the gap (in funding) created by overseas sources drying up,” she said. On interest rates, Kochhar said that the interest rates should come down in the interests of the economy. ICICI Bank was dynamically watching its interest rates, she said, without revealing whether the bank would reduce its lending rates soon. Source: LatestNews-Home - Livemint.com | 6 Nov 2008 | 10:07 am Inflation rises marginally to 10.72%New Delhi: Inflation rose to 10.72% for the week ended 25 October on account of higher prices of cereals and vegetables. The annual rate of inflation, measured by movement in the wholesale prices, was 10.68% a week ago. Inflation was at 3.11% in the corresponding period a year ago. Source: Home - Livemint.com | 6 Nov 2008 | 9:58 am Volvo CE India expects decline in growthKolkata: Construction equipment manufacturer Volvo Construction Equipment India said that it expects its growth to decline more than half to 10-15% this year due to the global economic meltdown, which has also hit India. “The company had been growing at a rate of 30% on a year-on-year basis in the last few years,” Volvo CE India Managing Director Mrityunjaya Singh said. However, this year, growth would come down to 10-15% due to the financial slowdown that the economy was going through. “Volvo CE India is an active player in the construction equipment sector in the country and occupies the sixth position in terms of market share,” he said. “The company manufactures 50% of its products at its plant at Bangalore, while the rest is imported from Korea, Canada and Sweden,” he said. Volvo CE India is part of the Sweden-based Volvo Group, which has operations the world-over. It makes trucks, buses, cars and construction equipment. “The company’s financing arm, Volvo Financial Services, was also keen to enter the Indian market for financing dealers and customers,” Singh added. Source: LatestNews-Home - Livemint.com | 6 Nov 2008 | 9:49 am UPM closes mills, cuts 700 jobs in FinlandHelsinki: The world’s largest magazine paper maker, UPM-Kymmene Corp.,said Thursday it will close two mills in Finland by year-end and ax 700 jobs. The layoffs, at the Kajaani paper mill and Tervasaari pulp mill, come on top of previously announced worldwide job cuts of some 1,600 planned for 2009 and 2010. UPM said it found “no financial prerequisites” to continue operations at the Finnish plants in talks with employees since September. “The slowing economy has further weakened the situation of these mills during the autumn,” the Helsinki-based company said. “Profitability of pulp production has significantly decreased in Finland.” UPM said the Kajaani mill was not competitive and prospects to continue operations there “have constantly weakened due to the price development of wood and energy as well as the weak long term demand outlook for its main products.” Last week, Nordic paper maker Stora Enso Oyj said it will cut wood production and lay off more than 500 workers, mostly in Finland, to improve competitiveness in an increasingly difficult market. In September, Stora also announced worldwide production cuts and 1,700 layoffs planned for 2009, and said it will transfer 1,450 employees to a joint venture with Swiss-Swedish electrical engineering company ABB Ltd. Source: LatestNews-Home - Livemint.com | 6 Nov 2008 | 9:48 am UPM closes mills, cuts 700 jobs in FinlandHelsinki: The world’s largest magazine paper maker, UPM-Kymmene Corp.,said Thursday it will close two mills in Finland by year-end and ax 700 jobs. The layoffs, at the Kajaani paper mill and Tervasaari pulp mill, come on top of previously announced worldwide job cuts of some 1,600 planned for 2009 and 2010. UPM said it found “no financial prerequisites” to continue operations at the Finnish plants in talks with employees since September. “The slowing economy has further weakened the situation of these mills during the autumn,” the Helsinki-based company said. “Profitability of pulp production has significantly decreased in Finland.” UPM said the Kajaani mill was not competitive and prospects to continue operations there “have constantly weakened due to the price development of wood and energy as well as the weak long term demand outlook for its main products.” Last week, Nordic paper maker Stora Enso Oyj said it will cut wood production and lay off more than 500 workers, mostly in Finland, to improve competitiveness in an increasingly difficult market. In September, Stora also announced worldwide production cuts and 1,700 layoffs planned for 2009, and said it will transfer 1,450 employees to a joint venture with Swiss-Swedish electrical engineering company ABB Ltd. Source: World Business - Livemint.com | 6 Nov 2008 | 9:48 am Govt advises hotels to prepare for slowdown, cut tariffTourism Secretary Sujit Bannerjee has urged the hotel industry to cut rates by 1015% in anticipation of a slowdown. CNBCTV18\'s Vivian Fernandes reportsSource: Moneycontrol Top Headlines | 6 Nov 2008 | 9:41 am Government approves Rs350 cr biotech PPP schemeNew Delhi: In a bid to boost discovery and innovation in the biotech sector, government today approved a public private partnership programme (PPP) earmarking a budgetary support of Rs350 crore in the 11th five year plan. “The Biotechnology Industry Partnership Programme (BIPP) is an advanced technology science scheme envisaged as a government partnership with industries for support on cost sharing basis for high risk discovery and innovation,” Minister of State in the Prime Minister’s Office Prithvraj Chavan told reporters after a meeting of the CCEA. He said that the programme would also go for accelerated technology development specially for futuristic areas. “An amount of Rs350 crore has been earmarked for the scheme during the 11th Plan,” Chavan said. “The scheme is aimed at increasing competitiveness of Indian industry in new and futuristic technologies and enhance ownership of IP in these areas,” he added. “This will also help in addressing national unmet technological needs in agriculture, human health, animal productivity, energy and environment where expected social and economic impact is high,” Chavan said. The programme will also help fulfill biotech strategy objectives of 30% of Department of Biotechnology’s research and development (R&D) investment in partnership with industry. “The scheme provides for a government contribution of 30-50% to the industry for discovery linked innovation,” he said, adding that the support would be provided only for futuristic areas, transformational technology and product development for public good. Besides, Chavan said that a meeting of the Union Cabinet approved the National Biodiversity Action Plan (NBAP), which is aimed at strengthening and integration of in-situ (protection of endangered species in its natural habitat) and ex-situ (protection of endangered species in relocation in a new habitat). “NBAP will also augment natural resources base and its sustainable utilisation, ensuring inter and intra-generational equity,” he added. The plan will regulate introduction of invasive alien species and their management, besides undertaking assessment of vulnerability and adaptation to climate change and desertifications. It will also undertake a host of other steps such as development and integration of biodiversity databases, strengthening implementation of policy, legislative and administrative measures for biodiversity conservation and management Source: LatestNews-Home - Livemint.com | 6 Nov 2008 | 9:37 am Inflation at 10.72 pct on Oct 25NEW DELHI (Reuters) - India's wholesale price index rose 10.72 percent in the 12 months to Oct. 25, marginally above the previous week's annual rise of 10.68 percent, government data showed on Thursday.Source: Reuters: Money News | 6 Nov 2008 | 9:35 am Marxists allege $13-bn scam in India's spectrum allocationTaking the recent stake sale by Swan Telecom and Unitech as case points, the Communist Party of India-Marxist (CPI-M) has alleged a major scandal in the latest round of radio frequency allocation to mobile telecom operators.Source: IndiaeNews.com: Business News | 6 Nov 2008 | 9:31 am Anglo America sees $40 bn investment over 5-10 yrsKolkata: Mining group Anglo American Plc plans to invest $40 billion globally over the next five to 10 years, and was also exploring opportunities for partnerships in India, a senior official said on Thursday. “Our current plan is to invest $40 billion over next five to 10 years, and we will just look at how we will phase that, ” chief strategy officer Russell King told reporters when asked whether the firm was reviewing investments. “We will spend our money wisely,” he said, without elaborating on where or on what it would be spent. On 23 October, the company had said it would review capital expenditure plans due to uncertainty on markets as it posted a 12.7% fall in third-quarter copper output, its most important metal. “Fundamentally, the minerals that we are in, are in a good position,” King said when asked about the impact of falling metal prices worldwide. In India, the firm was interested in opportunities in minerals such as iron ore and coal, and was looking into partnerships with local companies, he said. Source: Home - Livemint.com | 6 Nov 2008 | 9:26 am CCEA gives go-ahead to NEEPCO’s 110 MW hydro projectNew Delhi: The government today approved NEEPCO’s 110 MW hydel power project at Pare in Arunachal Pradesh, entailing an investment of Rs574 crore. A meeting of Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh, gave approval to North Eastern Electric Power Corp Ltd (NEEPCO) for implementing the Pare Hydro Electric Project, Minister of State in the Prime Minister’s Office Prithviraj Chauhan said. The project would be set up at a cost of Rs573.99 crore, which includes Interest During Construction (IDC) and Financing Charges of Rs68.06 crore. “It would be funded through Rs172.20 crore equity from the central government, while Rs401.79 crore would be borrowed for the project,” he said. The Pare Hydro Electric Project is scheduled for commissioning in 44 months or over three-and-half years. “The power generated would meet energy requirements of Arunachal Pradesh, Assam and other North Eastern Region states,” he said. It would use the existing 132 KV transmission system of Ranganadi Hydro Electric Project to transmit the power. Source: LatestNews-Home - Livemint.com | 6 Nov 2008 | 8:58 am Adidas Q3 net up 2% but pulls ’09 guidanceFrankfurt: Adidas AG, the world’s No. 2 athletic gear and apparel maker, said Thursday its third-quarter profit rose 2% on higher sales and confirmed its outlook for the rest of the year. But uncertainty led it to pull its guidance for 2009, the company said. Adidas earned €302 million ($390.6 million) in the July-September period compared with €298 million a year ago, as sales rose 5% to nearly €3.1 billion ($4 billion) compared with €2.9 billion last year. Looking to the end of the year, Adidas said it still expects net profit growth of 15%, but “as a result of the uncertain global macroeconomic environment”, it canceled its outlook for next year. Adidas trails Nike Inc. in global sales but is bigger than rival Puma AG. Source: Home - Livemint.com | 6 Nov 2008 | 8:54 am Fords expansion plans for India on trackDespite the tightening credit situation in the automotive industry, Ford India said on Wednesday that its expansions plans, including the $500million outlay for its Indian operations, are firmly on track.Source: Moneycontrol Top Headlines | 6 Nov 2008 | 8:46 am Glenmark Pharma launches blood pressure tablets in UKMumbai: Glenmark Pharmaceuticals today said its European subsidiary has launched in the UK its first product - Perindopril tablets - which helps in lowering blood pressure. Glenmark Generics Ltd has launched the tablets in three strengths - 2, 4 and 8 mg, the parent company said in a filing to the Bombay Stock Exchange. “We are glad to have our first product for the UK market. We see significant growth potential in this region.” Glenmark Generics Chief Executive Officer Terrance Coughlin said. Glenmark Generics’s current portfolio in Europe consist of two approved products and eight marketing authorisation applications. Perindopril Erbumine is being manufactured at the Glenmark Generics plant in Goa, India. Source: Home - Livemint.com | 6 Nov 2008 | 8:44 am Private sector, foreign banks to consider rate cutThe private sector and foreign banks have assured the Government that they will consider its plea for a cut in interest rates. None of the banks, however, indicated by how much the rates will be cut.Source: Moneycontrol Top Headlines | 6 Nov 2008 | 8:43 am Hyundai begins export of i20 to EuropeA shift in preference in favour of smaller cars in Europe has helped Hyundai Motor India Ltd bag orders for the supply of 30,000 units of its latest model, the i20 hatchback.Source: Moneycontrol Top Headlines | 6 Nov 2008 | 8:42 am Toyota Kirloskar investing Rs 1,553 cr in second plantToyota Kirloskar Motor Private Ltd (TKM) will invest an additional Rs 1,553 crore into its second plant which is being set up for building compact cars for the Indian market.Source: Moneycontrol Top Headlines | 6 Nov 2008 | 8:41 am Govt may restore DEPB for steel sectorNew Delhi: In an effort to incentivise steel exports, the government may soon restore the duty entitlement passbook scheme (DEPB) for the industry, an official said. Responding to the steel sector’s demand, the Ministry of Commerce is understood to have forwarded the proposal for DEPB restoration to the Committee of Secretaries (CoS), said the official. “It is now up to the CoS to take a final call,” a senior official with the Steel Ministry said. Under the DEPB scheme, companies can avail of refund of customs duty paid on imported raw material for manufacturing products meant to be exported under the norms of the Directorate General of Foreign Trade. The government had in mid-June withdrawn DEPB benefits for the steel sector as part of inflation control measures and to augment the domestic supply of the commodity. Now that there is a slump in demand for steel and prices have fallen steeply due to the global economic recession, the industry wants the scheme re-introduced and also the 15% import duty on steel re-imposed to ward off cheaper shipments from China and Ukraine. “Even if there isn’t much scope for steel producers to export now because demand has fallen, providing DEPB benefits will surely help the industry when the international market improves,” said an official of a steel company. The restoration of the scheme will come as a respite for steel companies that have long-term export commitments, he added. In India, almost all steel producers used to avail of the DEPB scheme till it was withdrawn. The DEPB rate normally varies between 2 and 8% on iron and steel items. Source: Home - Livemint.com | 6 Nov 2008 | 8:35 am SBI cuts lending rate, plans to raise fundsMUMBAI (Reuters) - State Bank of India, the country's biggest lender, is cutting its main lending rate by 75 basis points and will raise $1-$2 billion this year to help tide over tight liquidity conditions, its chairman said on Thursday.Source: Reuters: Money News | 6 Nov 2008 | 8:24 am Without Google’s help, Yahoo’s options limitedSeattle: Without Google’s muscle behind it, Yahoo’s chances for digging out of a long slump are looking even poorer, making it appear more likely that the company will turn to Microsoft or AOL to help weather the economic downturn. Yahoo Inc., which runs the No. 2 search engine, agreed in June to let No. 1 Google Inc. sell some of the ads shown next to Yahoo’s search results. The deal was intended as a lifeline for the struggling Internet pioneer after it spurned Microsoft’s rich $47.5 billion takeover bid less than a month before. Now that Google has scrapped the Yahoo partnership rather than challenge the Justice Department over its antitrust objections to the deal, Yahoo is back where it began the year, scrambling to engineer a turnaround under a management team on shaky ground with shareholders. Except now, the climate is much worse. The crumbling economy is discouraging advertisers from spending online, particularly on the billboard-style display ads that are Yahoo’s bread and butter. Sunnyvale, California-based Yahoo, already adjusting, announced it would lay off 10 percent of its work force after profits plunged 64 percent in the most recent quarter. Yahoo Chief Executive Jerry Yang may have wrung the last drops of shareholder goodwill by betting on a Google deal instead of taking Microsoft’s offer. To avoid getting pushed out by Yahoo’s board, which now includes activist investor Carl Icahn, Yang is under intense pressure to boost the company’s bottom line. In an appearance Wednesday night, Yang said Microsoft Corp. would be wise to make another bid for his company, though he didn’t suggest a price. Yang turned down Microsoft’s offer of $33 a share in the spring, and now finds Yahoo trading around $13. “To this day, I believe the best thing for Microsoft to do is to buy Yahoo,” Yang said Wednesday. Barring that, his list of options is limited, and the most obvious moves have been on the table for months. Imran Khan, an analyst for JP Morgan, said he believes it would make sense for Yahoo to sell its search operations to Microsoft - an idea that Microsoft proposed this spring but Yahoo rejected. The result would be cost savings for Yahoo, and more energy to focus on the display ad business. Khan estimates $1.4 billion in cost savings or, after factoring out $694 million in lost annual revenue, a net gain of $725 million. Yahoo could use the cash to buy back stock, make smart acquisitions and “more strategic, targeted head count reductions,” Khan argues. “We think continued investment in search, at the expense of display investment, has given competitors the opportunity to bite into Yahoo’s leading display ad market share,” Khan wrote in a recent research note. Yahoo shareholders are still interested in some sort of Microsoft deal, and despite Microsoft’s current stance that it doesn’t need Yahoo to challenge Mountain View, California-based Google, many industry watchers think the software maker is still interested, to a point. Matt Rosoff, an analyst for the independent research group Directions on Microsoft, said he can’t see Microsoft buying all of Yahoo, for the same reasons talks fell apart in the first place: Microsoft was hoping for a quick and painless integration, but Yahoo resisted. Rosoff said he does think Microsoft will consider buying Yahoo’s search business, but not in the next few months. “At this point, given how the online ad market has changed and how the overall economy has changed, they might just wait for Yahoo’s situation to get worse,” the analyst said. Microsoft may also wait to “see what happens to Google and their revenue. Perhaps Google won’t look like a threat, and Internet advertising won’t quite look like such a good business.” Rosoff said he could also see Microsoft trading its MSN Web portal for Yahoo’s search engine, or configuring a similar swap. Rob Sanderson, an analyst for American Technology Research, noted that giving up its search business to Microsoft would undercut one of the pillars of Yahoo’s go-it-alone strategy, that having both search and display ads will eventually pay off more than keeping just one. So for Yahoo to benefit from selling its search engine to Microsoft, the price would have to be a lot sweeter than the $1 billion Microsoft offered last time, Sanderson said. But Microsoft made that offer knowing Yahoo’s Google partnership was in the works. Now that the deal is off the table and Yahoo’s shares are foundering, the software maker has little incentive to raise its bid. Last week, the Redmond, Washington-based software maker reiterated the message that it’s no longer interested in acquiring Yahoo. The company would not address whether it would consider buying Yahoo’s search operations separately. An alternate possibility for Yahoo: acquiring at least a slice of Time Warner Inc.’s AOL. Melding two companies seen as dot-com has-beens is unlikely to yield a new powerhouse, but if Yahoo has the stomach to eliminate scores of redundant jobs, the combined company could be more efficient and profitable. The idea is less popular with Yahoo shareholders, but such a deal could augment Yahoo’s display advertising business. AOL operates Platform-A, the largest ad network in the U.S., which lets advertisers buy display ads across AOL’s own sites, like gossip news source TMZ.com, and those of outside publishers like Merriam-Webster. In September, 91% of U.S. Web surfers visited a page on the Platform-A network, according to research group comScore Inc. That’s more than the 86% who visited a Yahoo ad network page or the 83% who landed on a Google ad network page. However, AOL’s online advertising business isn’t as lucrative as Google’s or Yahoo’s despite its wider reach. Time Warner said AOL’s ad revenue fell 6% in the third quarter. On the search-advertising side, Yahoo’s potential gains from an AOL acquisition are also unclear. For one thing, Google, which owns a 5% stake in AOL, currently operates AOL’s search - presumably raking in more money than Yahoo could get if it took over. Mark May, a Needham Co. analyst, argues that a deal between AOL would be fraught with problems, from the companies’ disparate cultures to their different technology platforms. Buying AOL could, ironically, make Yahoo a more appealing target for Microsoft, especially if the buyout goes badly. Microsoft could wait a few months, then vacuum up two competitors, which still attract large online audiences, at a bargain rate. Yahoo does have another choice: slash costs and accept its lot as a distant second to Google. The company’s recent layoff announcements indicates to Sanderson that Yahoo is more willing to do so than it was in the past. “Their aspirations for being a huge player,” he said, “were a little bit too lofty.” Source: Home - Livemint.com | 6 Nov 2008 | 8:24 am Without Google’s help, Yahoo’s options limitedSeattle: Without Google’s muscle behind it, Yahoo’s chances for digging out of a long slump are looking even poorer, making it appear more likely that the company will turn to Microsoft or AOL to help weather the economic downturn. Yahoo Inc., which runs the No. 2 search engine, agreed in June to let No. 1 Google Inc. sell some of the ads shown next to Yahoo’s search results. The deal was intended as a lifeline for the struggling Internet pioneer after it spurned Microsoft’s rich $47.5 billion takeover bid less than a month before. Now that Google has scrapped the Yahoo partnership rather than challenge the Justice Department over its antitrust objections to the deal, Yahoo is back where it began the year, scrambling to engineer a turnaround under a management team on shaky ground with shareholders. Except now, the climate is much worse. The crumbling economy is discouraging advertisers from spending online, particularly on the billboard-style display ads that are Yahoo’s bread and butter. Sunnyvale, California-based Yahoo, already adjusting, announced it would lay off 10 percent of its work force after profits plunged 64 percent in the most recent quarter. Yahoo Chief Executive Jerry Yang may have wrung the last drops of shareholder goodwill by betting on a Google deal instead of taking Microsoft’s offer. To avoid getting pushed out by Yahoo’s board, which now includes activist investor Carl Icahn, Yang is under intense pressure to boost the company’s bottom line. In an appearance Wednesday night, Yang said Microsoft Corp. would be wise to make another bid for his company, though he didn’t suggest a price. Yang turned down Microsoft’s offer of $33 a share in the spring, and now finds Yahoo trading around $13. “To this day, I believe the best thing for Microsoft to do is to buy Yahoo,” Yang said Wednesday. Barring that, his list of options is limited, and the most obvious moves have been on the table for months. Imran Khan, an analyst for JP Morgan, said he believes it would make sense for Yahoo to sell its search operations to Microsoft - an idea that Microsoft proposed this spring but Yahoo rejected. The result would be cost savings for Yahoo, and more energy to focus on the display ad business. Khan estimates $1.4 billion in cost savings or, after factoring out $694 million in lost annual revenue, a net gain of $725 million. Yahoo could use the cash to buy back stock, make smart acquisitions and “more strategic, targeted head count reductions,” Khan argues. “We think continued investment in search, at the expense of display investment, has given competitors the opportunity to bite into Yahoo’s leading display ad market share,” Khan wrote in a recent research note. Yahoo shareholders are still interested in some sort of Microsoft deal, and despite Microsoft’s current stance that it doesn’t need Yahoo to challenge Mountain View, California-based Google, many industry watchers think the software maker is still interested, to a point. Matt Rosoff, an analyst for the independent research group Directions on Microsoft, said he can’t see Microsoft buying all of Yahoo, for the same reasons talks fell apart in the first place: Microsoft was hoping for a quick and painless integration, but Yahoo resisted. Rosoff said he does think Microsoft will consider buying Yahoo’s search business, but not in the next few months. “At this point, given how the online ad market has changed and how the overall economy has changed, they might just wait for Yahoo’s situation to get worse,” the analyst said. Microsoft may also wait to “see what happens to Google and their revenue. Perhaps Google won’t look like a threat, and Internet advertising won’t quite look like such a good business.” Rosoff said he could also see Microsoft trading its MSN Web portal for Yahoo’s search engine, or configuring a similar swap. Rob Sanderson, an analyst for American Technology Research, noted that giving up its search business to Microsoft would undercut one of the pillars of Yahoo’s go-it-alone strategy, that having both search and display ads will eventually pay off more than keeping just one. So for Yahoo to benefit from selling its search engine to Microsoft, the price would have to be a lot sweeter than the $1 billion Microsoft offered last time, Sanderson said. But Microsoft made that offer knowing Yahoo’s Google partnership was in the works. Now that the deal is off the table and Yahoo’s shares are foundering, the software maker has little incentive to raise its bid. Last week, the Redmond, Washington-based software maker reiterated the message that it’s no longer interested in acquiring Yahoo. The company would not address whether it would consider buying Yahoo’s search operations separately. An alternate possibility for Yahoo: acquiring at least a slice of Time Warner Inc.’s AOL. Melding two companies seen as dot-com has-beens is unlikely to yield a new powerhouse, but if Yahoo has the stomach to eliminate scores of redundant jobs, the combined company could be more efficient and profitable. The idea is less popular with Yahoo shareholders, but such a deal could augment Yahoo’s display advertising business. AOL operates Platform-A, the largest ad network in the U.S., which lets advertisers buy display ads across AOL’s own sites, like gossip news source TMZ.com, and those of outside publishers like Merriam-Webster. In September, 91% of U.S. Web surfers visited a page on the Platform-A network, according to research group comScore Inc. That’s more than the 86% who visited a Yahoo ad network page or the 83% who landed on a Google ad network page. However, AOL’s online advertising business isn’t as lucrative as Google’s or Yahoo’s despite its wider reach. Time Warner said AOL’s ad revenue fell 6% in the third quarter. On the search-advertising side, Yahoo’s potential gains from an AOL acquisition are also unclear. For one thing, Google, which owns a 5% stake in AOL, currently operates AOL’s search - presumably raking in more money than Yahoo could get if it took over. Mark May, a Needham Co. analyst, argues that a deal between AOL would be fraught with problems, from the companies’ disparate cultures to their different technology platforms. Buying AOL could, ironically, make Yahoo a more appealing target for Microsoft, especially if the buyout goes badly. Microsoft could wait a few months, then vacuum up two competitors, which still attract large online audiences, at a bargain rate. Yahoo does have another choice: slash costs and accept its lot as a distant second to Google. The company’s recent layoff announcements indicates to Sanderson that Yahoo is more willing to do so than it was in the past. “Their aspirations for being a huge player,” he said, “were a little bit too lofty.” Source: World Business - Livemint.com | 6 Nov 2008 | 8:24 am SBI cuts PLR by 0.75%, more banks to follow suitLoans from premier public sector lender, State Bank of India, will be cheaper with the bank deciding to cut its Prime Lending Rate (PLR) by 0.75 per cent from Monday.Source: Daily News & Analysis: Money News | 6 Nov 2008 | 8:11 am News Corp profit off 30%, slashes outlookLos Angeles: News Corp. reported a 30% drop in quarterly profits on Wednesday and the media empire run by Rupert Murdoch said its operating profit for the current fiscal year will drop because of the U.S. dollar’s strength overseas and a slowdown in advertising revenue. Company executives said they expected a “low to mid-teens” percentage drop in operating profits in the fiscal year that began in July. The forecast was a major departure from analysts’ expectations of profit growth. Murdoch, the company’s chief executive who controls more than a third of its shares, said the forecast was a “clear reflection of the economic downturn, which we believe will persist through fiscal 2009.” He added that the company is now “intensely focused on cost reductions.” Cost cutting moves include outsourcing the work of 10 of 17 plants that print the Wall Street Journal within two years, saving $3 million per plant annually, and merge the back-office functions of the Journal and the New York Post. The fiscal 2009 forecast was based on $5.13 billion in operating profits from continuing operations in 2008. The gloomy news came after the company said net income for the first quarter that ended 30 September dropped to $515 million, or 20 cents per share, from $732 million, or 23 cents per share, a year ago. Revenue rose 6.3% to $7.5 billion. Murdoch said one-third of the fiscal 2009 profit downgrade was based on predictions of lower income from overseas operations when translated into U.S. dollars, and much of the rest was from a slowing ad market. Chief Operating Officer Peter Chernin told analysts that there were even signs of weakness in the DVD market, where film studios, like its Twentieth Century Fox, derive most of their profits. “In the last three or four weeks, we are beginning to see quite a bit of softening in the DVD business,” he told analysts and reporters on a conference call. Murdoch said the uncertainty meant he would put his appetite for dealmaking on hold, even with the $5.5 billion in cash on the books. He said the company had no talks to combine with Yahoo Inc., which was left without a new ad partner Wednesday when Google Inc. backed out of a deal in order to avoid an antitrust suit by the U.S. Justice Department. “We don’t want to do anything until there is a great deal more visibility in the market,” Murdoch said. “We’ll be ready for it if the right thing comes.” Analysts surveyed by Thomson Reuters had expected first-quarter earnings per share to fall two percent to 23 cents, on revenue of $7.7 billion, 8% higher than a year earlier. They had predicted fiscal 2009 earnings per share would increase two percent to $1.17 as revenues grew three percent to $33.9 billion. Much of the first-quarter weakness had to do with a $447 million write-off associated with German pay TV operator Premiere AG. Operating income fell nine percent to $953 million, compared to the $1.1 billion reported a year ago. Movie revenue from Twentieth Century Fox and other studios fell 20% to $1.3 billion in the quarter and television revenue fell 15% to $974 million, partly affected by the sale of eight Fox-affiliated TV stations. Ad revenue at the remaining TV stations declined 17%. But cable network programming revenue rose 19% to $1.3 billion, on advertising and affiliate revenue gains at Fox News Channel, FX and the Big Ten Network. Revenue from newspapers and information services rose 37% to $1.7 billion after the acquisition of Dow Jones & Co., which owns the Wall Street Journal. Dow Jones, which News acquired for $5 billion last December, had a $4 million operating loss, but the overall newspaper group’s operating profit rose 44% to $134 million due to lower depreciation expenses. The Fox Interactive Media group, which owns MySpace, saw revenue grow 17% to $220 million, but the company said profits did not increase because of higher development spending. The “other” category that contains the MySpace group posted an operating loss of $101 million, compared to a $43 million loss a year ago. Operating profit from Italian satellite TV unit Sky Italia tripled to $165 million from $48 million as it added 359,000 subscribers to more than 4.6 million. Source: World Business - Livemint.com | 6 Nov 2008 | 8:05 am News Corp profit off 30%, slashes outlookLos Angeles: News Corp. reported a 30% drop in quarterly profits on Wednesday and the media empire run by Rupert Murdoch said its operating profit for the current fiscal year will drop because of the U.S. dollar’s strength overseas and a slowdown in advertising revenue. Company executives said they expected a “low to mid-teens” percentage drop in operating profits in the fiscal year that began in July. The forecast was a major departure from analysts’ expectations of profit growth. Murdoch, the company’s chief executive who controls more than a third of its shares, said the forecast was a “clear reflection of the economic downturn, which we believe will persist through fiscal 2009.” He added that the company is now “intensely focused on cost reductions.” Cost cutting moves include outsourcing the work of 10 of 17 plants that print the Wall Street Journal within two years, saving $3 million per plant annually, and merge the back-office functions of the Journal and the New York Post. The fiscal 2009 forecast was based on $5.13 billion in operating profits from continuing operations in 2008. The gloomy news came after the company said net income for the first quarter that ended 30 September dropped to $515 million, or 20 cents per share, from $732 million, or 23 cents per share, a year ago. Revenue rose 6.3% to $7.5 billion. Murdoch said one-third of the fiscal 2009 profit downgrade was based on predictions of lower income from overseas operations when translated into U.S. dollars, and much of the rest was from a slowing ad market. Chief Operating Officer Peter Chernin told analysts that there were even signs of weakness in the DVD market, where film studios, like its Twentieth Century Fox, derive most of their profits. “In the last three or four weeks, we are beginning to see quite a bit of softening in the DVD business,” he told analysts and reporters on a conference call. Murdoch said the uncertainty meant he would put his appetite for dealmaking on hold, even with the $5.5 billion in cash on the books. He said the company had no talks to combine with Yahoo Inc., which was left without a new ad partner Wednesday when Google Inc. backed out of a deal in order to avoid an antitrust suit by the U.S. Justice Department. “We don’t want to do anything until there is a great deal more visibility in the market,” Murdoch said. “We’ll be ready for it if the right thing comes.” Analysts surveyed by Thomson Reuters had expected first-quarter earnings per share to fall two percent to 23 cents, on revenue of $7.7 billion, 8% higher than a year earlier. They had predicted fiscal 2009 earnings per share would increase two percent to $1.17 as revenues grew three percent to $33.9 billion. Much of the first-quarter weakness had to do with a $447 million write-off associated with German pay TV operator Premiere AG. Operating income fell nine percent to $953 million, compared to the $1.1 billion reported a year ago. Movie revenue from Twentieth Century Fox and other studios fell 20% to $1.3 billion in the quarter and television revenue fell 15% to $974 million, partly affected by the sale of eight Fox-affiliated TV stations. Ad revenue at the remaining TV stations declined 17%. But cable network programming revenue rose 19% to $1.3 billion, on advertising and affiliate revenue gains at Fox News Channel, FX and the Big Ten Network. Revenue from newspapers and information services rose 37% to $1.7 billion after the acquisition of Dow Jones & Co., which owns the Wall Street Journal. Dow Jones, which News acquired for $5 billion last December, had a $4 million operating loss, but the overall newspaper group’s operating profit rose 44% to $134 million due to lower depreciation expenses. The Fox Interactive Media group, which owns MySpace, saw revenue grow 17% to $220 million, but the company said profits did not increase because of higher development spending. The “other” category that contains the MySpace group posted an operating loss of $101 million, compared to a $43 million loss a year ago. Operating profit from Italian satellite TV unit Sky Italia tripled to $165 million from $48 million as it added 359,000 subscribers to more than 4.6 million. Source: Home - Livemint.com | 6 Nov 2008 | 8:05 am Isro’s new satellite to take images through cloudsBangalore: The Indian Space Research Organisation (Isro) has developed a new satellite that could take images through the clouds, enabling space-based application in such scenarios to manage cyclones, floods and agriculture related activities. India’s current earth-observation satellites are working in visible and infrared bands, which means they can take pictures, only when the sky is cloud-free. “Often, during cyclones and floods the entire sky will be clouded. To see through the cloud, the new Radar Imaging Satellite (Risat) will be important. In fact, we have got a tie-up with Canadian space agency...we are now using their satellite images to assess floods and other problems,” Isro Chairman G. Madhavan Nair told PTI. “Once our satellite (Risat) is put into orbit, we will be able to use this for all purposes. And that will also help us in assessing the agriculture during monsoon season — how much sowing has been done and how much harvesting,” Nair, who is also Secretary of Department of Space said. According to Isro officials, Risat mission would have a C-band Synthetic Aperture Radar (SAR) payload, operating in a multi-polarisation and multi-resolution mode. SAR, an active sensor, operated in the microwave range of electromagnetic spectrum, provides the target parameters such as dielectric constant, roughness and geometry. With its unique capability for day-night imaging and in all weather conditions, including fog and haze, provides information on soil moisture. Source: Tech News - Livemint.com | 6 Nov 2008 | 7:05 am Isro’s new satellite to take images through cloudsBangalore: The Indian Space Research Organisation (Isro) has developed a new satellite that could take images through the clouds, enabling space-based application in such scenarios to manage cyclones, floods and agriculture related activities. India’s current earth-observation satellites are working in visible and infrared bands, which means they can take pictures, only when the sky is cloud-free. “Often, during cyclones and floods the entire sky will be clouded. To see through the cloud, the new Radar Imaging Satellite (Risat) will be important. In fact, we have got a tie-up with Canadian space agency...we are now using their satellite images to assess floods and other problems,” Isro Chairman G. Madhavan Nair told PTI. “Once our satellite (Risat) is put into orbit, we will be able to use this for all purposes. And that will also help us in assessing the agriculture during monsoon season — how much sowing has been done and how much harvesting,” Nair, who is also Secretary of Department of Space said. According to Isro officials, Risat mission would have a C-band Synthetic Aperture Radar (SAR) payload, operating in a multi-polarisation and multi-resolution mode. SAR, an active sensor, operated in the microwave range of electromagnetic spectrum, provides the target parameters such as dielectric constant, roughness and geometry. With its unique capability for day-night imaging and in all weather conditions, including fog and haze, provides information on soil moisture. Source: Home - Livemint.com | 6 Nov 2008 | 7:05 am Gold extends losses on weak overseas marketsMumbai: Indian gold futures extended losses on Thursday on weak global cues, where a strong dollar spurred selling, but a weak rupee may cap losses later in the day, analysts said. “The lower opening can be attributed to continued strength in the dollar (against the euro),” said Harish Galipelli, head of research at Karvy Comtrade Ltd. India imports most of its gold and pays for it in US dollars. Foreign gold extended a 2% drop in New York, erasing some of this week’s gains. Gold has an inverse relation with the dollar as the two compete for funds. The Indian rupee fell one percent on Thursday on worries foreigners would keep pulling funds out of falling stocks, but dollar sales by some foreign banks helped contain the losses. There has been no fresh buying in the yellow metal, adding to the downward pressure, Galipelli added. The benchmark December gold contract is supported at Rs11,470 levels, an analyst said. The contract declined 1.54% in the previous session. December silver may trade in the range of Rs16,730-17,200 per kg. Open interest for December gold on MCX was at Rs8,953, up from Rs8,616 lots a day earlier. Volume on Wednesday was 57.8 kgs. Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 11:15 a.m. Source: Home - Livemint.com | 6 Nov 2008 | 6:37 am Pharma cos may gain in talent due to US slowdownHyderabad, Nov. 5 The pharmaceuticals industry may stand to gain from the economic slowdown in the US and parts of Europe as far as the availability of quality manpower isSource: Business Line - Home Page | 6 Nov 2008 | 12:00 am Day Trading GuideFresh short-position can be initiated if the stock declines below Rs 440, with tight stop-loss.Source: Business Line - Home Page | 6 Nov 2008 | 12:00 am Tata Motors declares 3-day closure of Jamshedpur plantMumbai, Nov. 5 Hit by a slowing demand, Tata Motors has decided to shut down its Jamshedpur plant for three days from Thursday.Source: Business Line - Home Page | 6 Nov 2008 | 12:00 am Industry hopes Obama will go by American business needsBangalore/Hyderabad, Nov. 5 Apprehensions of unfavourable policies on offshoring by the new Government in the US took a back seat as the Indian IT industry affirmed that offshoring is basically driven by business needs and the Government wouldSource: Business Line - Home Page | 6 Nov 2008 | 12:00 am ‘We can’t let Main Street suffer’New Delhi, Nov. 5 From a no-experience Senator of just over two years to the President of the US; from the log cabin to the White House; from the Civil War of 1861-1865 to Martin Luther King’s dream; from Little Rock where the federalSource: Business Line - Home Page | 6 Nov 2008 | 12:00 am October gold imports down 27%Mumbai, Nov. 5 Sharp fall in the value of the rupee against the dollar has taken a heavy toll on gold imports even as prices came down on eve of Diwali and Dhanteras - the two occasions when buying gold is consideredSource: Business Line - Home Page | 6 Nov 2008 | 12:00 am BoI cuts lending rates by 75 bpsMumbai, Nov. 5 Bank of India on Wednesday announced a 75 basis points cut in its benchmark prime lending rate to 13.25 per cent with effect from November 6. The bank has also decided to reduce deposit rates by 50 basis points with effect fromSource: Business Line - Home Page | 6 Nov 2008 | 12:00 am ‘IT critical for US competitiveness’Bangalore/New Delhi/ Hyderabad, Nov. 5 Notwithstanding past apprehensions over Democrat Mr Barack Obama’s anti-outsourcing stance during the run-up to the polls, the Indian IT industry today welcomed his Presidential victory.Source: Business Line - Home Page | 6 Nov 2008 | 12:00 am Sulking easterlies extend cold snap in SouthThiruvananthapuram, Nov. 5 The near total absence of easterly to northeasterly winds continued to provide the perfect ruse for colder westerlies from northwest India to fan out into the peninsula along the southern flank of a seasonalSource: Business Line - Home Page | 6 Nov 2008 | 12:00 am Areva T&D (Rs 176.05): SellWe recommend a sell in Areva T&D India from a short-term trading perspective. It is apparent from the charts of Areva T&D India that it has been on a medium-term downtrend from its September high of Rs 366. The stock commenced itsSource: Business Line - Home Page | 6 Nov 2008 | 12:00 am Airlines fear job losses for 8,000 ground staffAirline companies under the Federation of Indian Airlines (FIA) plan to make a presentation to the civil aviation ministry saying they will be forced to axe 8,000 employees if the governmentSource: Business Standard | Front Page Headlines | 5 Nov 2008 | 6:51 pm 'Change has come to America'Barack Obama claimed the White House, saying his election as the first African-American president of the United States sent a message that change has come to a troubled nation.Source: Business Standard | Front Page Headlines | 5 Nov 2008 | 6:49 pm IT companies to tread carefully till dust settlesHyderabad: Several mid-sized information technology (IT) firms have speeded up collecting dues and increasing the amount of advance payments in new deals on the back of volatile currency rates and uncertain business environment.  Payment concerns: B.V.R. Mohan Reddy of Infotech Enterprises says the firm is opting for stricter terms of payment while negotiating new deals to reduce room for any uncertainty regarding payment realizations. Hemant Mishra / Mint “We are concerned about who will pay up and who may not,” said G.V. Kumar, chief executive of Hyderabad-based Megasoft Ltd. “For our existing contracts, we are trying to re-negotiate payment terms to get advance payments and for new deals, we are trying to get a certain percentage of the deal value as upfront payment.” “We are not very happy with the outstanding days’ payments and we are working on bringing in more financial discipline to bring it down from the current 80-85 days to about 72-75 days,” said Rostov Ravanan, chief financial officer (CFO) of Bangalore-based MindTree Ltd. Most technology services companies deliver a certain number of days’ worth of work to a client—typically called day sales outstanding, or DSO—for which it gets payment after 30-60 days, depending on the terms of a contract. Besides the current business environment, what is worrying MindTree is currency fluctuations and how it may end in foreign exchange losses when the dues are realized. To reduce such losses, MindTree, which earns nearly 90% of its revenue in dollars, recently formed a team to speed up the collection of receivable days’ payments. Companies such as MindTree and Megasoft are also undertaking intensified risk profile monitoring of clients to figure out possible defaults or delays in payments. Another mid-sized IT company specializing in banking solutions, New Delhi-based Nucleus Software Exports Ltd, said realizing payments on time has become more important in the current environment to sustain growth and hold profit margins. “To keep uncertainty to a minimum”, Nucleus Software has adopted a “proactive strategy towards collections”, said Niraj Vedwa, president and head of company’s global sales and marketing. The current challenging business environment has pushed the firm to initiate a “rigorous follow-up” process to ensure “billing and collections process is in sync with the company’s goal for growth and profitability”, Vedwa said. Hyderbad-based Infotech Enterprises Ltd’s chief executive B.V.R. Mohan Reddy said his company has hired an external consultant in the second quarter to figure out ways to improve collection of dues and establish a process to reduce uncertainty in receivables. “We are sensitizing our sales team about the importance of monitoring of the receivables and the need for constant follow-up,” Reddy said. He also said the firm is opting for stricter terms of payment while negotiating new deals to reduce room for any uncertainty regarding payment realizations. Infotech specializes in engineering services. Ramesh Reddy, CFO of another Hyderabad-based firm, Cambridge Technology Enterprises Ltd, said his company has made it a priority to ensure there are no surprises in the expected cash inflow. “We are using this opportunity to put in place systems to ensure that at least 90% of our DSOs can be realized within the 30-day period,” Ramesh said. Abhijit Ranade, associate director at audit and consultancy firm PricewaterhouseCoopers, said higher risk-profiling of clients and pre-deal due diligence by Indian IT firms are going to be the order of the day, especially where US and European clients in financial services are involved. “In such situations...any company would want to know who they are going to be working with and if the clients are creditworthy, especially where payments are going to be done after work,” Ranade said. “Given that smaller IT companies who may not have huge cash reserves, it is natural that they will want to shift towards fixed-price contracts so that they can demand advance payments, which will go towards their operating income.” So for now, “cash and caution is our motto for the next two quarters, till the dust settles down and there is more clarity about the future,” said Megasoft’s Kumar. Source: Tech News - Livemint.com | 5 Nov 2008 | 6:32 pm Nannies worse off than hedge fund guys in rout Roughly 10% of the Philippine population works overseas for lack of well-paid jobs at home. Their earnings support one of Asia’s most vulnerable economies. In 2007, for example, overseas Filipinos sent home $14.4 billion (Rs670,968 crore today), or 10% of gross domestic product (GDP). There is good and bad news here. First the bad: The recession-bound US is the Philippines’ largest source of remittances from overseas nationals. The good news? Slumping US growth, believe it or not. The search for silver linings in Asia as the US growth drops is a challenging business. Yet there’s reason to think that when this global crisis ends, people will no longer be the key export of the Philippines. Gloria Arroyo hinted as much on 22 October when the Philippine President said the nation may need a “massive” retraining programme if events in the US cause Filipinos to lose jobs at home and abroad. “We will need, should there be a recession in the US, a massive skills upgrading and retooling service,” Arroyo said at a conference in Manila. Too bad, it has taken the worst global crisis since the 1930s to shake Arroyo’s government out of complacency. Throughout the 2000s, the Philippines implicitly encouraged its citizens to leave and support families back home. If not for immigration challenges, more Filipinos would be working in New York, Hong Kong or Riyadh. The Philippines isn’t the only government failing its people. For every doctor leaving Manila to become a nurse in Boston because the pay is far better, a young woman is leaving rural Indonesia or Sri Lanka to become a nanny or maid in London or Singapore. Yet the Philippines gets the most remittances after India, China and Mexico. Its “OFWs” (overseas Filipino workers) are often referred to as a secret economic weapon. In reality, the arrangement is a key weakness for the nation’s 96 million people that’s becoming apparent as global growth wanes. “The stark reality is that developing countries must prepare for a drop in trade, capital flows, remittances, and domestic investment, as well as a slowdown in growth,” World Bank president Robert Zoellick said in Washington on 15 October. Policymakers in Manila downplay the risks. “Remittances are recession-proof” because many overseas Filipinos are in medical care and “professional jobs,” says central bank deputy governor Diwa Guinigundo. Arroyo also says Filipinos working abroad “are in areas less sensitive to recession,” including teaching, nursing, care-giving and information technology. Higher oil prices have fuelled a West Asia construction boom that has resulted in a “surge” of remittances from there, she says. If this global crisis worsens, it’s not clear how many recession-proof industries there will be a year from now, if any. While the focus today is on hedge funds blowing up, it will soon be on Filipino nannies, engineers and domestic helpers losing jobs. That’s why it is good to hear Arroyo talking about a so-called human-capital fund. Far more investment is needed both to train Filipinos and keep skilled workers at home. The planned fund will amount to just 100 billion pesos ($2 billion). With unemployment at 7.4%, the second highest level in the Asia-Pacific region, the Philippines must work much harder. The $144 billion Philippine economy is a fraction of the almost $14 trillion US one. Yet $2 billion is too small a percentage of GDP to expect the results the Philippines needs here. While money is understandably scarce, this is about the nation’s future prosperity. The Philippines can no longer compete with China and India on cost basis. The skills of its large English-speaking population are better suited to industries that rely on information and technology—like the nation’s big push into call centres and back-office-processing services. Given high poverty rates, remittances make sense in the short run. The trouble is that the Philippines has never articulated a long-term plan to attract back many of its best and brightest. The result is a brain drain that lowers the quality of the nation’s labour force. The Philippines needs more of its human capital at home to raise living standards. Money flowing in has an exponential effect on growth. It helps the government make debt payments, supports banks and boosts the retail, transportation, real estate and telecommunications sectors. It’s a vital stabilizer. “Their overall impact on the economy is arguably much larger given the multiplier effect on consumption spending,” says Ed Bancod, head of research at ATR-Kim Eng Securities Inc. in Manila. The pain may already be beginning. Remittances were growing at a 25% year-over-year rate in July. In August, it slowed to 10%. As fallout from the global crisis heads Asia’s way, inflows will continue slowing. It’s as clear a sign as any that exporting people like a commodity has its risks. If Arroyo works to reverse the tide, the Philippines could actually benefit from today’s turmoil. Respond to this column at feedback@livemint.com Source: World Business - Livemint.com | 5 Nov 2008 | 6:32 pm
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