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RILRNRL case: HC asks govt for its stance on gas pricingThe spotlight shifts in the RIL versus RNRL gas tussle. The critical KG Basin gas tussle between the Ambani brothers resumed today at the Bombay High Court. This time around, the focus of the HC bench was not on the stance of the two parties but on the stance of the government. Ashwin Mohan reports.Source: Moneycontrol Top Headlines | 11 Nov 2008 | 5:11 pm Roads ahead sluggish, risky for BOT projectsConstruction companies have seen a tough quarter with margins contracting, cash flows being tough and interest costs also shooting up. Quite a lot of concerns are hovering over the construction space currently. The companies feel its risky to undertake buildoperatetransfer (BOT) projects as of now.Source: Moneycontrol Top Headlines | 11 Nov 2008 | 3:44 pm ONGC says may lose 3-4 bln rupees/yr on finmin orderNEW DELHI (Reuters) - Oil and Natural Gas Corp will lose 3-4 billion rupees annually if it follows a finance ministry direction and keeps 60 percent of its surplus cash with state-run banks, chairman R.S. Sharma said on Tuesday.Source: Reuters: Money News | 11 Nov 2008 | 12:36 pm Rupee falls 1.6 pct to 1-wk low as stocks slideMUMBAI (Reuters) – The rupee closed at its lowest in a week on Tuesday as a sharp fall in the domestic equity market raised concerns of more foreigners repatriating funds, pressuring the currency lower.Source: Reuters: Money News | 11 Nov 2008 | 12:34 pm India negotiates higher iron ore export prices-MMTCMumbai: Indian firms have negotiated price increases of 80-97% for iron ore exports to Japan and South Korea, state-run trading company MMTC Ltd said. The price of iron ore fines, a powdery material that is converted into pellets before being used by blast furnaces, will be raised by 79.9%, while iron ore lumps, used directly in furnaces without much processing, will cost 96.5% more, the firm said in a statement. The new prices, negotiated by government officials and state-run firms MMTC and National Mineral Development Corp, were in line with benchmark prices settled with Australia, it said. The two firms have 5 year term contracts with Japanese steel mills and South Korea’s POSCO till 2010, under which the quantities and prices are decided annually. Exports to mills in Japan and POSCO would remain at last year’s level of 4.27 million tonnes, the statement said. “As a result of the price settlement achieved this year, the iron ore exports to Japan and South Korea would earn foreign exchange to the tune of Rs25 billion ($520 million),” the release said. India exports about 90 million tonnes of iron ore, mainly to China. Most of the sales are done on a spot basis, unlike other big suppliers who tie up long-term contracts. Source: LatestNews-Home - Livemint.com | 11 Nov 2008 | 12:25 pm Govt watching cheap steel imports; decision on import duty soon - Economic Times
Source: Google News India - Business | 11 Nov 2008 | 12:24 pm OVL gets Russian approvals for Imperial Energy acquisitionNew Delhi: ONGC Videsh Ltd (OVL), the overseas investment arm of state-run Oil and Natural Gas Corporation (ONGC), has said that it has received all regulatory approvals from the Russian government for the acquisition of UK-listed Imperial Energy. “Regulatory approvals have been granted in respect of the ownership of Russian entities by entities controlled by a foreign government,” OVL said in a filing to the London Stock Exchange. Russia’s Federal Anti-Monopoly Service (FAS) had earlier approved the $2.59 billion deal under anti-trust laws. OVL confirms that both of the Pre-Conditions to the Offer have been satisfied, the filing said. However, surprisingly, OVL, despite being a wholly-owned subsidiary of a listed public sector company, choose to make the announcement on the acquisition only on the London Stock Exchange. It had done the same last week when it won the anti-trust ruling, keeping the vital information away from the BSE and the NSE where ONGC is listed. OVL in its filing to the LSE said its acquisition of Imperial Energy, which has oilfields in Russia, was subject to approval of the Government Commission of the Russian Federation in respect of the restrictions on the ownership of Russian entities by entities controlled by a foreign government and that of FAS in respect of anti—monopoly regulations. Both the approvals are in place now, it said. “OVL will now make an open offer to shareholders of Imperial Energy in 28 days and the entire process would be completed in three months,” a top official of the company said. Source: LatestNews-Home - Livemint.com | 11 Nov 2008 | 12:18 pm Reliance Pet may begin fuel exports in AprilNEW DELHI (Reuters) - Reliance Petroleum may start exports from its new 580,000 bpd refinery in April although the plant is likely to begin trial runs near to its end-December target, analysts and trade sources said.Source: Reuters: Money News | 11 Nov 2008 | 12:16 pm Sensex down 233 points in early trade!The Bombay Stock Exchange benchmark Sensex fell by over 233 points in early trade today, snapping two-session winning streak, on selling by foreign funds and retail investors following weak global cues.Source: Zee News : Business | 11 Nov 2008 | 12:11 pm Asia stocks lackluster, China stimulus hopes wane!Asian stock markets were lackluster Tuesday after weakness on Wall Street, as concerns about the global economy sapped enthusiasm over China`s nearly USD 600 billion package to boost growth.Source: Zee News : Business | 11 Nov 2008 | 12:11 pm AmEx wins Fed nod to become bank holding co!American Express Co said it won approval to become a bank holding company, in a step that could cut its borrowing costs and give it more access to government money.Source: Zee News : Business | 11 Nov 2008 | 12:11 pm World`s largest banking lobby seeks more measures to avert recession!The world`s largest banking lobby has called for additional government intervention to help avoid a global recession, but warned that any state takeovers of the private sector must be temporary.Source: Zee News : Business | 11 Nov 2008 | 12:11 pm UK`s Orange to revert call centres from India!British mobile major Orange has announced plans to bring back all its offshore call centres from India to the UK as part of a drive to improve services for its 15 million customers.Source: Zee News : Business | 11 Nov 2008 | 12:11 pm Govt issues Rs 22,000 cr special bonds to help oil marketing cos!In a move to help cash-strapped oil marketing companies reeling under huge under-recoveries, the government today issued Rs 22,000 crore special bonds to IOC, BPCL and HPCL.Source: Zee News : Business | 11 Nov 2008 | 12:11 pm Indictments possible in UBS inquiry: Report!A US tax investigation into UBS AG is concentrating on senior and midlevel executives and bankers, and could result in one or more indictments, the New York Times said, citing people briefed on the matter.Source: Zee News : Business | 11 Nov 2008 | 12:11 pm Indian economy on sound footing; no immediate cut in fuel prices: PM!The Indian economy was on a strong footing and the government would do everything within its power to help the industry tide over the impact of the global financial crisis, Prime Minister Manmohan Singh said Monday.Source: Zee News : Business | 11 Nov 2008 | 12:11 pm Crude oil prices fall to $60 in Asia as China spending optimism wanes!Oil prices fell to near an 18-month low at USD 60 a barrel Tuesday in Asia as optimism waned that a huge Chinese spending plan will avert a prolonged slowdown in the global economy.Source: Zee News : Business | 11 Nov 2008 | 12:11 pm Indra Nooyi wins leadership award for advancing diversity!Indra K. Nooyi, India-born chairman and chief executive officer of PepsiCo, has been named the winner of the Chicago United 2008 Bridge Award honouring exemplary leadership in support of advancing diversity and inclusion.Source: Zee News : Business | 11 Nov 2008 | 12:11 pm Reliance Petroleum may begin fuel exports in AprilNew Delhi: “Reliance Petroleum may start exports from its new 580,000 bpd refinery in April although the plant is likely to begin trial runs near to its end-December target,” analysts and trade sources said. The export-focused refinery is entitled to a 5 year tax holiday, but if commercial production were to start in December or January, the firms would only receive tax breaks for 3 months in the first year. India’s fiscal years run from April to March. “It makes sense to announce it in April and avail benefits for the whole year,” said Manish Joshi, a research analyst with Karvy Stock Broking. Reliance aims to export products to developed markets in Europe and the United States. “But US oil consumption has declined by 3-4%. It may so happen that Reliance may not find buyers in the US and Europe and may be forced to sell to other countries, which could impact margins,” said Joshi. Analysts say the new refinery may be started and stabilised in phases over the first quarter of 2009. Reliance Chairman Mukesh Ambani in June told shareholders revenue from the new refinery would begin from this year. But since then, slowing demand has hit the outlook for refineries, prompting firms like Total and Petroplus to consider cutting back runs on unprofitable products like gasoline. Refinery margins for complex Asian refiners in October were about $6.34 a barrel while those for simple refiners were about $2.29 a barrel. Reliance commissioned its existing 660,000 barrels per day (bpd) refinery 6 months ahead of schedule but only announced commercial operations 6-8 months after trial runs. Earlier this year, Reliance sold several cargoes of diesel under term contracts to various trading houses, including its first ever advance term sale of 0.005% sulphur diesel, which will be produced at the new refinery. The sales were an attempt to lock in customers before the plant comes online. A trade source, who could not be named, said that Reliance had not yet signalled when supplies of ultra-low sulphur diesel would begin. Source: LatestNews-Home - Livemint.com | 11 Nov 2008 | 12:10 pm Grim economy data throws spotlight on crisis summitLONDON (Reuters) - Weak economic readings from China, Japan and Britain and a grim corporate outlook worldwide reinforced fears on Tuesday of a prolonged recession, prompting investors to look to a world leaders' summit for solutions.Source: Reuters: Money News | 11 Nov 2008 | 12:05 pm DoT to levy 3% licence fee on 3G mobile operatorsNew Delhi: “Government has decided to impose an annual licence fee of 3% of revenue on the those mobile operators who will offer 3G services on stand—alone basis,” Telecom Secretary Siddhartha Behura said. “In a meeting, Department of Telecom (DoT) took the decision that existing 2G players, who would also offer 3G services, would have to pay 1% of their total revenue to the government as revenue share,” said Telecom Secretary Siddhartha Behura, who is also the Chairman of Telecom Commission. The Commission, however, did not taken any decision on the one-time spectrum enhancement charge on 2G radio waves. “In another development, the Commission is learnt to have approved the DoT proposal to slap 1% additional spectrum usage charges for radio waves below 8 MHz and 2% above 8 MHz. This would be effective from 1 January, 2009,” Behura said. At present, the operators pay 2-6% of spectrum usage charges, which would now become 3-8% from January 2009. One-time spectrum fee has been deferred for the time-being. Source: LatestNews-Home - Livemint.com | 11 Nov 2008 | 12:02 pm ONGC says conditions met for $2.6 bln Imperial bidLONDON (Reuters) - ONGC Videsh, the overseas arm of ONGC, said all conditions for its $2.6 billion bid for Imperial Energy had been met, effectively sealing a deal investors feared might be scuppered by falling oil prices.Source: Reuters: Money News | 11 Nov 2008 | 11:39 am DLF Pramerica gets Sebi nod to start MF ops - Business Standard
Source: Google News India - Business | 11 Nov 2008 | 11:33 am BSE Sensex drops 6.6 pct on global recession fearsBANGALORE (Reuters) – The BSE Sensex fell 6.61 percent on Tuesday, its biggest fall in more than two weeks reversing most of the 8 percent-plus rise of the previous two days as fears of a protracted global recession saw investors pare risk again.Source: Reuters: Money News | 11 Nov 2008 | 11:32 am Key equities index ends 700 points in redAs analysts had feared, the bull run lost steam just after two successive sessions and Indian equities markets once again came under a severe bear grip Tuesday with a key share index shedding nearly 700 points at close to finish below the psychologically important 10,000 mark.Source: IndiaeNews.com: Business News | 11 Nov 2008 | 11:30 am Markets tumble, Sensex down by 696 ptsMumbai: Markets cut short its two-day gaining-spree with the benchmark Sensex dipping below 10,000 level after losing nearly 700 points on selling pressure triggered by concerns over companies cutting down on output and country’s exports slowing down. The bellwether index tumbled by 696.47 points at 9,839.69 to end the day. Today’s loss has washed away the most of 800-point gain Sensex recorded in the past two trading days. The key index had last broken 10,000 level on 6 November. Similarly, the wide-based National Stock Exchange index Nifty dipped below 3,000 points level by losing 209.60 points at 2938.65. Marketmen said Reliance Industries, the most valuable company, fell after reports that it might miss production deadlines because of a slump in fuel demand. They said a fall of 15% in country’s exports in October amid lingering global recession concerns also dampened the trading sentiment. Capital goods index suffered the most by losing 587.55 points at 7530.88 after stocks of BHEL, Larsen and Toubro, Reliance Industrial Infrastgructure and Punj Llyod fell sharply. Source: Home - Livemint.com | 11 Nov 2008 | 11:17 am SAIL may have to cut production: Steel Secretary - Business Standard
Source: Google News India - Business | 11 Nov 2008 | 11:15 am India seeks Gulf funds to boost growth - India Infoline.com
Source: Google News India - Business | 11 Nov 2008 | 11:08 am Europe markets follow Asia down on economic fearsLondon: Europe’s stock markets opened lower on Tuesday following losses in Asia amid mounting concerns about the world economy following downbeat corporate news in the US. The FTSE 100 index of leading British shares was down 70.43 points, or 1.6%, at 4,333.49, while Germany’s DAX was 101.08 points, or 2.0%, lower at 4,924,45. France’s CAC-40 index was 67.87 points, or 1.9%, lower at 3,437.88. Earlier, Tokyo’s Nikkei 225 index dropped 272.13 points, or 3%, to 8,809.30, while the Hang Seng benchmark in Hong Kong lost 703.73 points, or 4.8%, to 14,040.90. Analysts blamed the latest bout of selling on fears that the economic recession in the US will be deeper than anticipated and could lead to some high-profile casualties. Electronics retailer Circuit City Stores Inc. was the latest company in the US to report mounting difficulties as it filed for bankruptcy protection. Investors are also speculating about the fate of automakers General Motors Corp., Chrysler and Ford Motor Co. after the automakers met with lawmakers last week in hopes of securing financial help. Shares of GM, which announced a $2.5 billion third-quarter loss on Friday and warned that it could run out of cash next year, plunged 23% overnight to levels not seen since shortly after World War II. Those fears are weighing on Wall Street too, where the Dow Jones index closed Monday down 73.27, or 0.8%, at 8,870.54, after rising by 215 points in early trading. A further sell-off is anticipated at the opening bell as Dow futures were down 59 points, or 0.7%, at 8,828. Trading in the US though is expected to be modest as the bond market is on holiday for Veterans’ Day. Worries about the global economy are taking their toll on oil prices and energy stocks too. By early morning London time, the cost of a barrel of oil was down $1.60 cents at $60.81, fueling further selling pressure of heavyweights BP PLC and Royal Dutch Shell, both down nearly 3%. In Europe, financial stocks were doing particularly badly with Swiss bank UBS AG down 6% and Deutsche Bank 4% lower, and Allianz nearly 6% down. Source: LatestNews-Home - Livemint.com | 11 Nov 2008 | 11:07 am Brown prepared to borrow to boost economyLONDON (Reuters) - British Prime Minister Gordon Brown is ready to borrow more to give the economy a much-needed boost, he said on Tuesday, following weak housing and retail figures that gave fresh indication of a deepening recession.Source: Reuters: Money News | 11 Nov 2008 | 11:04 am Cadila acquires Italian vaccine research company Etna BiotechLeading Indian healthcare major Zydus Cadila said in a regulatory statement here Tusday that it has acquired Italy-based Etna Biotech, a wholly owned subsidiary of the Dutch biopharma company, Crucell N.VSource: IndiaeNews.com: Business News | 11 Nov 2008 | 11:02 am Key Indian equities index loses 6.61 percentAfter two trading sessions ending in the green, Indian equities markets again came under bear mauling Tuesday with a key share index shedding nearly 700 points at close to finish below the psychologically important 10,000 mark.Source: IndiaeNews.com: Business News | 11 Nov 2008 | 11:00 am Margins to remain subdued going forward: Idea CellularSanjeev Aga, Managing Director, Idea Cellular, said he expected overcapacity leading to the margin pressure over the next few months. \"The margin compression last quarter was planned. It may be subdued for sometime.\"Source: Moneycontrol Top Headlines | 11 Nov 2008 | 11:00 am Govt asks firms to keep funds with govt-run banksNEW DELHI (Reuters) - India's finance minister has urged state-run firms to keep 60 percent of their surplus funds with government-owned banks, a senior official said on Tuesday.Source: Reuters: Money News | 11 Nov 2008 | 10:57 am Tough days ahead for media firms as profits shrinkNew Delhi: Hit by a fall in advertisement revenues, media sector firms have witnessed a sharp drop in profits in the September quarter and experts believe they are likely to remain under pressure for the next 1 year. According to an analysis of the quarterly earnings of the ten leading media houses including NDTV, HT Media, TV Eighteen and Zee Entertainment as many as seven firms have suffered a significant impact on their bottomlines in the second quarter this fiscal. Prannoy Roy led-NDTV widened its net loss to Rs119.38 crore for the second quarter ended 30 September, while HT Media, which publishes Hindutsan Times, Mint and Hindustan, posted a 49% decline in net profit at Rs16.28 crore in the same period. The key reason for media firms’ profits getting impacted is the clear fall in the ad spends which have been impacted by the economic environment. “Pressure is likely to continue in the Media and Entertainment space for the next one year in line with the overall economy,” consultancy firm BMR Advisors Partner for Media and Entertainment Industry Practice Vivek Gupta said. “However, the long term scenario remains bullish as a lot of the consuming class has still not been penetrated. And several triggers exist in the industry,” Gupta added. Media conglomerate Television Eighteen posted a net profit of Rs18.12 crore, whereas it had a net profit of Rs26.27 crore in the corresponding period previous financial year. Meanwhile, two media houses, TV Today and Subhash Chandra — led Zee Entertainment Enterprises — posted a growth in their net profit in the second quarter of current fiscal. Zee Entertainment posted a positive result with a net profit of Rs178.1 crore, a 45.53% growth as compared to Rs97 crore for the same period a year ago. While, TV Today Group, which broadcasts news channel Headlines Today and Aaj Tak, posted a net profit of Rs7.57 crore against Rs5.35 crore a year ago. Another analyst from leading brokerage firm believes as corporate houses are cutting their advertisement expenditures, the media sector including print and TV are likely to witness an impact on their revenues. South-based Deccan Chronicle, who owns Hyderabad team of Indian Premier League (IPL) and publishes Asian Age and Deccan Chronicle, suffered a 45% drop in profits at Rs45.27 crore against Rs82.60 for the quarter ended 30 September, 2007. Globally, the media sector has also not performed well and ad revenues have decline amid the economic crisis impacting the the corporate sector. Media services firm Zenith Optimedia has cut its forecast for global adspend growth to 4.3% in 2008 down from its earlier 6.6% expectations. Source: LatestNews-Home - Livemint.com | 11 Nov 2008 | 10:39 am Indian Bank reduces benchmark lending rates by 13.25%PTI Mumbai: Chennai-based Indian Bank today reduced the benchmark lending rates by 75 basis points in tandem with other state-run banks. In a filing to the Bombay Stock Exchange, the bank said that it has decided to reduce the Benchmark Prime Lending Rate (BPLR) from 14% to 13.25% with effect from 10 November. Several PSU banks, including market leaders State Bank of India and Punjab National Bank, have already cut the benchmark lending rates following their meeting with the Finance Minister P Chidambaram earlier this month. As interest rates on advances are mostly linked to the BPLR, the loans for housing, auto etc would become cheaper following reduction of the benchmark rates by the banks. The other PSU banks which have lowered their BPLRs include Bank of Baroda, Union Bank of India, UCO Bank, IDBI Bank, Oriental Bank of Commerce and Syndicate Bank. Source: LatestNews-Home - Livemint.com | 11 Nov 2008 | 10:39 am Europe marks 90th anniversary of WWI armisticeDouamont, France: Leaders of a united Europe on Tuesday marked the 90th anniversary of the end of World War I, which tore the continent apart and cost millions of lives. French President Nicolas Sarkozy and Britain’s Prince Charles attended the solemn ceremony near one of the conflict’s bloodiest battlefields. It was held in the northeastern French town of Douaumont, near the site of the Battle of Verdun. There, an estimated 300,000 soldiers lost their lives in 300 days of ferocious fighting between French and German troops for control of River Meuse, a key strategic post on the eastern approach route from Germany to Paris. The French forces prevailed in December 1916. Prince Charles, Australia’s governor-general Quentin Bryce, Sarkozy and Peter Mueller, president of German Bundesrat, laid wreaths at foot of massive French flag that soared over esplanade between two large fields of crosses - the burial markers. Hundreds of people including veterans from other wars stood outside a huge stone ossuary in Douaumont, where the remains of unknown soldiers from both sides of the war are buried. France has been reflecting on how best to keep the memory of the 1914-1918 war alive, following the death earlier this year of the last of the 8.4 million Frenchmen who fought in the conflict. Lazare Ponticelli died in March, at age 110. Germany’s last veteran from the war also died earlier this year, leaving only a handful of living veterans from the conflict. Britain will mark the anniversary with its three surviving World War I veterans Henry Allingham, 112, Harry Patch, 110 and Bill Stone, 108. The three will take part in ceremonies in London at the Cenotaph, a war memorial near the Houses of Parliament. The Duchess of Gloucester will attend as patron of the World War I Veterans Association, together with Prime Minister Gordon Brown, the chiefs of staff and defense minister. Source: LatestNews-Home - Livemint.com | 11 Nov 2008 | 10:38 am BSA Motors launches eScooters - Sify
Source: Google News India - Business | 11 Nov 2008 | 10:37 am Cadila acquires Italian vaccine research company Etna Biotech - Economic Times
Source: Google News India - Business | 11 Nov 2008 | 10:35 am Equities end at day's low; Nifty down 7% - Economic Times
Source: Google News India - Business | 11 Nov 2008 | 10:35 am Qatar to invest $5 bn in energy, fertilizer in IndiaOnboard PM’s Special Aircraft: Qatar may invest $5 billion in energy and fertilizer projects in India as part of New Delhi’s efforts to use surplus funds from the energy-rich Gulf region to shore up slowing economic pace. Prime Minister Manmohan Singh, on his way back from the three—day maiden visit to the region, said he discussed with the Qatari leadership the modalities of setting up the $5 billion fund dedicated for investments in India. “We discussed the modalities of Qatar investing about $5 billion in India. In the next 2 or 3 months, we will work out modalities (and) identify projects in the area of energy, power, fertilizer and related activities,” he said. The discussions over the next couple of months would enable the Government of Qatar to decide where it wants these funds to be invested in. Discussions on the Qatar Investment Fund followed India and Oman signing an agreement on 8 November to set up a $100 million joint investment fund for financing projects in telecom, infrastructure, utilities, health and urban infrastructure. “The India—Oman Joint Investment Fund, with an equal contribution from each side, would eventually go up to $1.5 billion,” the Prime Minister said. From Qatar, India is keen to source a minimum of 2.5 million tonnes of additional liquefied natural gas (LNG) and buying fertilizers on a long-term contract. “We also discussed the possibilities (of Qatar) supplying fertilizers (to India through) either investments in fertilizer plants in India or expanding production fertilizer plants in Qatar with assured buyback in India. And it was agreed the two countries will explore possibilities,” he said. The Prime Minister said Qatar has agreed to consider selling more LNG to India in one or two years. “On my request and on the request of Petroleum Minister Murli Deora, the Government of Qatar has agreed to consider enhancing our allocation in the course of one or two years,” Singh said. India currently buys five million tonnes of LNG a year from RasGas of Qatar under a 25 year contract. Next year an additional 2.5 million tonnes of LNG will be available under the same long-term contract. Deora in his meeting with Qatar Deputy Prime Minister and Energy and Industry Minister Abdullah bin Hamad al Attiyah projected a shortfall of 5-7.5 million tonnes of LNG for industries in India. Qatar stated that its current LNG production is all tied up and will consider New Delhi’s request when new projects come up in 2011. Source: LatestNews-Home - Livemint.com | 11 Nov 2008 | 10:30 am Financial crisis closes in on GMAFP New York: The global financial crisis closed in on two more victims today after General Motors said it would need a government rescue and major US electronics retailer Circuit City filed for bankruptcy. The news capped another day of gloomy developments in the United States, the world’s largest economy, undermining hopes that coordinated action by governments around the world could keep the global downturn from getting worse. Fannie Mae, the US mortgage giant bailed out by the government earlier this year, posted a $29 billion loss. Meanwhile the United States expanded its bailout of insurer AIG to more than $150 billion. The latest dire reports from the United States triggered more woe for Asian stock markets, which lost ground today in line with US shares. Tokyo lost 3.0% while Hong Kong was off 0.6% at the mid-day break. General Motors CEO Rick Wagoner said the US automaker would need state help before Barack Obama takes over the White House in January, telling industry publication Automotive News that time was of the essence. “This is an issue that needs to be addressed urgently,” he said, calling on the government to “overshoot, not undershoot” the level of assistance. His call for support came as GM shares lost 23% yesterday after analysts at Deutsche Bank said they expected the stock eventually to be worth nothing at all. Source: LatestNews-Home - Livemint.com | 11 Nov 2008 | 10:28 am Financial crisis closes in on GMAFP New York: The global financial crisis closed in on two more victims today after General Motors said it would need a government rescue and major US electronics retailer Circuit City filed for bankruptcy. The news capped another day of gloomy developments in the United States, the world’s largest economy, undermining hopes that coordinated action by governments around the world could keep the global downturn from getting worse. Fannie Mae, the US mortgage giant bailed out by the government earlier this year, posted a $29 billion loss. Meanwhile the United States expanded its bailout of insurer AIG to more than $150 billion. The latest dire reports from the United States triggered more woe for Asian stock markets, which lost ground today in line with US shares. Tokyo lost 3.0% while Hong Kong was off 0.6% at the mid-day break. General Motors CEO Rick Wagoner said the US automaker would need state help before Barack Obama takes over the White House in January, telling industry publication Automotive News that time was of the essence. “This is an issue that needs to be addressed urgently,” he said, calling on the government to “overshoot, not undershoot” the level of assistance. His call for support came as GM shares lost 23% yesterday after analysts at Deutsche Bank said they expected the stock eventually to be worth nothing at all. Source: World Business - Livemint.com | 11 Nov 2008 | 10:28 am PM rules out fuel price cut for now - India Infoline.com
Source: Google News India - Business | 11 Nov 2008 | 10:21 am India adds record 7.7 mln GSM mobile users in OctNEW DELHI (Reuters) - India added a record 7.7 million mobile users in October to its GSM-based networks, an industry body said, as operators maintained rapid expansion despite signs of a slowing economy.Source: Reuters: Money News | 11 Nov 2008 | 10:19 am PM promises more steps to deal with fin crisisWith signs of growth slowing to its lowest rate in four years, Prime Minister Manmohan Singh promised more steps to deal with the global financial crisisSource: Daily News & Analysis: Money News | 11 Nov 2008 | 10:06 am Zydus Cadila acquires Italy-based Etna BiotechPTI Mumbai: Pharmaceutical firm Zydus Cadila today said it has acquired Italy-based biotechnology firm Etna Biotech for an undisclosed amount. Etna Biotech is the wholly-owned subsidiary of Netherland-based Crucell NV. This is the company’s first acquisition in the research space, it would offer a highly evolved research platform for the group to develop new vaccines and technology, Cadila Healthcare, the flagship company of Zydus Cadila Group, said in a filing to the Bombay Stock Exchange. “With this acquisition we will be at the forefront of innovation for vaccine research and development,” Zydus Cadila CMD Pankaj R Patel said. Etna Biotech is focused on research, development, production and marketing of vaccines, proteins and antibodies that prevent and treat primarily infectious diseases, it said. Cadila was trading at Rs 267.90, down 2.24 per cent in afternoon trade on the BSE. PTI SKR KG Source: Home - Livemint.com | 11 Nov 2008 | 9:49 am 'No immediate cut in transport fuel prices'Prime Minister Manmohan Singh has ruled out any immediate cut in the prices of transport fuels since state-run petroleum retailers continued to incur losses.Source: Daily News & Analysis: Money News | 11 Nov 2008 | 9:31 am Valecha Engineering bags Rs 160 cr orders - Economic Times
Source: Google News India - Business | 11 Nov 2008 | 9:28 am Syndicate bank to open 75 new branchesThe public sector Syndicate Bank was planning to consolidate its business by opening 75 new branches in the country this yearSource: Daily News & Analysis: Money News | 11 Nov 2008 | 9:26 am M\'rashtra may slash township area limit to 25 acresMaharashtra Chief Minister Vilasrao Deshmukh while turning down a proposal from developers to cut stamp duty charges, has said the state is looking into a series of proposals, including one where the area limit to build townships may be slashed from 100 acres to 25 acres. He said the feasibility of VAT will be discussed with the Finance Minister.Source: Moneycontrol Top Headlines | 11 Nov 2008 | 9:14 am Experts see boom in pharma outsourcing due to eco crisisA little under 10% of the Indian pharma industry thrives on outsourcing. But experts believe this segment is in for some robust growth, thanks to the global economic slowdown. Sriram Iyer and Vivin Mathew find out that global companies are eyeing India as a destination for outsourcing of manufacturing and research and development.Source: Moneycontrol Top Headlines | 11 Nov 2008 | 9:11 am Indian Bank reduces benchmark lending rates by 75 bps - Hindu
Source: Google News India - Business | 11 Nov 2008 | 9:02 am Economic slowdown will not be significant: PMEmphasising that the Indian economy continued to be on a sound footing, Prime Minister Manmohan Singh has said that a slowdown, if any, would not be significant, even as he assured all steps to tide over the impact of current global financial crisis.Source: IndiaeNews.com: Business News | 11 Nov 2008 | 9:02 am Bear grip sends key Indian index below 10,000 againBears were again on the rampage in the Indian equities markets Tuesday, just as had feared, the last two sessions' upward rally proving short-lived. A key share index shed nearly 600 points by mid-afternoon to once again go below the psychologically important 10,000 mark.Source: IndiaeNews.com: Business News | 11 Nov 2008 | 9:01 am Tube Investments to supply car doors for Nano from Pune plantTube Investments of India (TI), a Rs.17.82-billion multi-product firm, has announced it will supply door frames to Tata Motors' small car Nano from its Pune manufacturing facility.Source: IndiaeNews.com: Business News | 11 Nov 2008 | 9:01 am NBFCs see sharp dip in disbursement levels: CrisilThe last two months have seen a sharp fall in the disbursement levels of NonBanking Financial Companies, or NBFCs, says a Crisil report. Commenting on the report\'s findings, Crisils Managing Director and CEO Roopa Kudva said there is a sharp decline seen in business volumes and disbursement levels.Source: Moneycontrol Top Headlines | 11 Nov 2008 | 9:00 am Murugappa group plans infrastructure biz entryChennaibased Murugappa group is planning to enter the infrastructure sector. It has recently incorporated a company, Parry Infrastructure Ltd, for this purpose, sources in the group told Business Line on Monday.Source: Moneycontrol Top Headlines | 11 Nov 2008 | 8:56 am East Coast Energy secures nod for Rs 600cr jettyEast Coast Energy Ltd, now in the process of securing clearances for a 2,640 MW coalbased plant near Bhavanapadu in Srikakulum district of the State, has received nod to create a Rs 600crore jetty to meet the fuel evacuation needs.Source: Moneycontrol Top Headlines | 11 Nov 2008 | 8:47 am Advertisement agencies work overtime to beat slowdown bluesThe Rs 19,000 crore advertising industry in India could be the next to feel the heat of the economic slowdown but advertising agencies are working overtime to sustain topline growth.Source: Moneycontrol Top Headlines | 11 Nov 2008 | 8:42 am RIL arm may take 67% stake in KG Gas NetworkReliance Gas Corporation Ltd, a subsidiary of Reliance Industries, has been invited to acquire 67 per cent stake in the Krishna Godavari Gas Network Ltd, a special purpose vehicle carved out for gas distribution through a pipeline grid.Source: Moneycontrol Top Headlines | 11 Nov 2008 | 8:37 am China struggles to revive economyLou Qijun is one of the many Chinese toy and gift manufacturers who anticipates a visit from Santa Claus every year in the form of seasonal orders from Europe and North America.Source: Daily News & Analysis: Money News | 11 Nov 2008 | 8:35 am Indra Nooyi wins leadership awardIndra K Nooyi has been named the winner of the Chicago United 2008 Bridge Award honouring exemplary leadership in support of advancing diversity and inclusion.Source: Daily News & Analysis: Money News | 11 Nov 2008 | 8:35 am 'Indians want quality products at low rates'Oriflame India, the wholly owned subsidiary of Swedish direct selling company Oriflame, claims to have understood the Indian market, and says that Indians want quality products at low rates.Source: Daily News & Analysis: Money News | 11 Nov 2008 | 8:34 am Economy fears weaken Asian marketsHong Kong: Asian stock markets and commodities retreated on Tuesday while the yen pushed higher as a souring economic outlook took some of the wind out of investor hopes sparked by China’s massive stimulus plan. Stocks pulled back after shares of General Motors sank to a 62-year low and brokerages forecast that Goldman Sachs will post its first-ever quarterly loss, stirring worries about the earnings damage to come as the global economy faces a recession. The bankruptcy of No. 2 US electronics retailer Circuit City also dashed the previous day’s optimism. China’s announcement that it was planning a nearly $600 billion package focusing on infrastructure, along with expectations US President-elect Barack Obama will push for more fiscal spending, spurred investor risk-taking on Monday. Investors have grappled with whether the drop in shares now reflects enough the expected downturn in economic growth and corporate earnings that drove the broad MSCI index of Asian markets outside of Japan to a 4-1/2-year low last month. The MSCI Asia ex-Japan fell 3.1% but is still up about 24% from the low struck in October when investors dumped assets across the board to raise cash, hitting higher-yielding currencies and commodities as well. Japan’s Nikkei average shed 3.3% to 8,781.45 after having jumped nearly 6% the previous day. The Shanghai Composite Index held up better than other markets, dipping 0.3% after having posted its biggest one-day gain since September on Monday. Hong Kong’s Hang Seng drifted down 0.5%. Companies such as Japan’s Hitachi Construction Machinery climbed for a second day on hopes that China’s big spending to help underpin its slowing economy would provide a boon of new orders. In commodities, US crude oil prices fell $1.68 a barrel to $60.73, back near a 1-1/2-year low struck last week. The yen edged up slightly, gaining as market players cut positions favouring higher-yielding currencies that tend to perform better when stocks rise and investor appetite for risk improves. The dollar dipped 0.2% from late US trade to 97.85 yen, while the euro was down 0.4% at 124.50 yen. Activity in currencies was relatively muted compared with the sharp swings seen in some higher-yielding currencies against the yen over the past month. With year-end approaching, market players said they were bracing for more hedge fund selling to raise cash holdings and prepare for investor redemptions. The sharp sell-off across financial markets in October was driven in part by funds selling assets to boost cash holdings, especially with money markets remaining under such severe stress. US bond markets were closed for the Veterans Day holiday, but US stock markets will be open as normal. Source: Home - Livemint.com | 11 Nov 2008 | 8:18 am Bihar to set up film city with Bollywood actors' helpBihar will seek the help of Bollywood actors and filmmakers hailing from the state to set up a film city on public-private partnership basis.Source: IndiaeNews.com: Business News | 11 Nov 2008 | 8:02 am Kerala to market vegetable 'kits' at Rs.18With vegetable prices spiralling in Kerala, the agricultural department Tuesday decided to supply vegetable 'kits' priced at Rs.18 across the state.Source: IndiaeNews.com: Business News | 11 Nov 2008 | 8:02 am No immediate cut in transport fuel prices: PMPrime Minister Manmohan Singh has ruled out any immediate cut in the prices of transport fuels since state-run petroleum retailers continued to incur losses.Source: IndiaeNews.com: Business News | 11 Nov 2008 | 8:01 am Satyam eyes acquisitions in France, bets big on GermanyPTI Mumbai: As part of its expansion plans in Europe, leading software major Satyam Computer Services is mulling acquisitions in France, a top company official said. “We see fairly large opportunities and are looking at acquisitions of French companies to expand our operations,” Satyam’s Continental Europe Head, Peter Heij, told visiting journalists at the company’s Wiesbaden facility near Frankfurt recently. The company is also mulling an expansion in Germany, the largest economy in Europe, he said. Satyam has recently sealed a few acquisitions, those of Nitor Global Solutions and Citisoft Plc in the UK and S&V Management Consultants in Belgium. “Our vision is to have 30% of our global revenue emanating out of Europe by FY’10. To enter some of the European countries, we have to hire local people and acquire companies. We need to have an office in France,” Heij said. In the current business scenario, European markets are evolving as a major IT park for software development. These markets are demanding greater knowledge and understanding of country-specific issues, EU directives and resolutions, he said. France preferred to undertake sourcing of IT services in its own language and with local firms. Major international firms are well represented in France with providers like AtosOrigin, Sopra, Sogeti & Thales capitalising on the advantage of “being French”. Source: Home - Livemint.com | 11 Nov 2008 | 7:21 am China stimulus plan fuels hopes for global growthBeijing: A $586 billion economy-boosting program is China’s “biggest contribution to the world,” Premier Wen Jiabao said amid hopes that heavy spending on construction and other projects will help support global growth by fueling demand for imported machinery and raw materials. The huge $586 billion package, announced on Sunday, comes as President Hu Jintao prepared for next weekend’s Washington meeting of leaders of 20 major economies to discuss a response to the global financial crisis. “China has really set the pace for expansionary policies elsewhere,” Tim Condon, Asia regional economist for the Dutch bank ING, said on Monday. Wen, the country’s top economic official, said the plan is meant to boost investment and consumer spending, maintain export growth and promote corporate competitiveness and financial reform, state television reported on its national evening news. It said he made the comments at a meeting of government leaders. The plan calls for higher spending through 2010 on airports, highways and other infrastructure, more aid to the poor and farmers and tax cuts for exporters. That could boost demand for iron ore from Australia and Brazil, factory and construction equipment from the United States and Europe and industrial components from throughout Asia. “Faster growth in China will be better for its neighbours. For every country in the region, it’s either their top trading partner or is on the way to becoming the top,” Condon said. The dramatic Chinese plan was motivated by growing government alarm at an unexpectedly sharp downturn in the country’s fast-growing economy that raised the threat of job losses and social unrest. China’s economic growth slowed to 9% in the last quarter, down from last year’s stunning 11.9 percent growth and its lowest level in five years. Export orders have fallen sharply as global demand weakens, leading to layoffs and factory closures. Analysts have slashed forecasts of next year’s economic growth but said Monday that with the new stimulus it should be at least 8%. The new stimulus plan depends heavily on getting China’s companies to invest, economists said. Beijing might supply as little as one-quarter of the announced spending, or $145 billion, with the rest coming from state companies, bank lending or bond sales by local authorities, said Ting Lu, a Merrill Lynch economist. Source: Home - Livemint.com | 11 Nov 2008 | 6:42 am Rupee reacts downward by 12 paiseMumbai: The Indian rupee slid by 12 paise to Rs47.50/51 in line with the equity markets against the greenback in late morning deals on Tuesday. The domestic unit moved in the range of Rs47.46 and Rs47.65 per dollar before being quoted at Rs47.50/51 on the Interbank Foreign Exchange (Forex) market. It resumed sharply lower at Rs47.63/64, following the weakness in global equity markets. At 10:30am, the Indian benchmark Sensex was down by nearly 338 points or 3.21%, while most of the Asian indices also quoted in the red. Fall in global crude oil prices near $60 a barrel attracted oil refiners to buy dollars to meet their import requirements, which also weighed on the rupee. Market participants are still wary about the recovery in sluggish world economy and expect more capital outflows in the near future, despite last week’s net purchases. Firmer dollar against most of the major rivals also dampened the rupee sentiment. Source: Home - Livemint.com | 11 Nov 2008 | 6:24 am Fed’s bailout for AIG swells to more than $150 bnWashington: When the government offered an emergency loan to insurer American International Group in September, eyebrows shot up at the $85 billion price tag. Now it looks like pocket change. The size of the AIG lifeline swelled to more than $150 billion on Monday, a record for a private company. But the head of the broader financial rescue package was cool to other companies reaching for a piece of the bailout pie. The new AIG package includes a $40 billion chunk of the $700 billion financial bailout. It’s the first time money from the big rescue bill has gone to any company other than a bank. General Motors, Ford and Chrysler, burning through cash and bleeding jobs, are prodding the government for more help. The leaders of the House and Senate have urged Treasury Secretary Henry Paulson to get some of the $700 billion to the Big Three. The automakers, covering all their options, are also pushing to get help as part of a new, multibillion-dollar stimulus package for the economy if Democrats push it through Congress when a lame-duck session convenes next week. President-elect Barack Obama has said his transition team would explore options to provide relief to the auto industry, and President George W. Bush’s press secretary said Monday the White House would “listen to” Congress if they try to help automakers. Any money would be on top of the $25 billion in loans that Congress passed in September to help retool auto plants to build more fuel-efficient vehicles. Neel Kashkari, the interim head of the $700 billion bailout program, was cool to the idea of funneling the money to companies beyond banks and AIG. “This morning’s action with AIG was a one-off event necessary for financial stability. It is not the establishment of a new program,” he said at a financial conference in New York. The original Fed loan to AIG was $85 billion, and the Fed added a $38 billion loan in October. But that has not been enough to firm up the company, which is so big and interconnected to other firms that its failure would devastate the economy. Under the new plan, the Fed will provide $60 billion in loans. The Treasury will provide $40 billion to buy up preferred stock. And the government will spend close to $53 billion to buy up mortgage-backed assets and other AIG contracts on debt. Total package: $153 billion. And AIG has also taken advantage of a federal plan to buy up short-term debt routinely issued by companies, known as commercial paper. The $40 billion going to AIG will buy preferred shares of company stock, giving taxpayers an ownership stake. In turn, restrictions will be placed on executive pay at the firm. The Fed stepped in with an $85 billion loan in September because the company is so big linked to mutual funds and retirement products held by millions of Americans, not to mention ties to US mortgages that its failure would have devastated the economy. AIG also came under fire for spending hundreds of thousands of dollars on a California retreat just days after the Fed loan was announced in September. In other bailout news Monday, mortgage finance company Fannie Mae said it may have to tap a $100 billion government lifeline as early as next year after posting a massive third-quarter loss. Fannie Mae, seized by federal regulators more than two months ago, posted a staggering loss of $13 per share for the July-to-September quarter, compared with a loss $1.56 a share, for the same period last year. The company’s net worth what it owns minus what it owes fell to $9.4 billion at the end of September, from $44.1 billion at the end of last year. If that number turns negative, Fannie Mae said it would be required to tap Treasury for help. The new package for AIG was unveiled as the insurer issued new, bleak quarterly results. It lost $24.5 billion in the third quarter after turning a $3.1 billion profit in the third quarter of 2007. Under the restructuring, AIG also gets easier terms on the Fed loans, reducing the risk AIG will have to sell off assets at firesale prices to pay back the government. Fed officials expressed confidence the money would eventually be repaid to taxpayers, and presidential press secretary Dana Perino said it would also be good for the fragile US economy. Source: Home - Livemint.com | 11 Nov 2008 | 6:18 am Bears back, key Indian equities index down 300 pointsAfter two days of gains, bears were again on the rampage in Indian equities markets Tuesday and a key index opened more than hundred points lower and fell further to rule more than 300 points lower half an hour into trading.Source: IndiaeNews.com: Business News | 11 Nov 2008 | 6:02 am PM rules out immediate cut in fuel pricesOnboard PM’s Special Aircraft: Ruling out an immediate reduction in petrol and diesel prices, Prime Minister Manmohan Singh has said the government will wait till public sector oil companies break-even on fuel sales before considering such a move. International crude oil prices have slid from an all-time high of $147 to $60 a barrel, but public sector oil companies continue to make losses on sale of diesel, domestic LPG and kerosene. “When we see that the Indian oil companies are able to sustain a reduction that will be the right (time for such a) decision,” he told reporters on way back from his three-day maiden visit to the energy-rich Gulf region. Though Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum have started making profit on sale of petrol, they lose about Rs155 crore per day on sale of other three products. “Oil companies have to bear a very heavy burden (and) there are limits to which government can go on subsidising,” he said. Government compensates half of the revenue loss on fuel sales through oil bonds and one-third of the losses are borne by cash-rich firms like ONGC. Yet, IOC posted its largest-ever net loss of Rs7,047.13 crore in July-September quarter. BPCL posted a net loss of Rs2,625.17 crore in the second quarter on top of Rs1,066.70 crore in April-June, while HPCL reported a loss of Rs888.12 crore in Q1 and another Rs3,218.92 crore in Q2. “If prices keep on going down, we can explore these possibilities (of reducing prices),” the Prime Minister said. Oil firms make a profit of Rs4.12 a litre on petrol but lose Rs0.96 on every litre of diesel, Rs22.40 per litre on kerosene and Rs343.49 per LPG cylinder. Source: Home - Livemint.com | 11 Nov 2008 | 6:02 am Maharashtra Seamless bags order worth Rs757 crMumbai: DP Jindal Group’s flagship firm Maharashtra Seamless today said it has bagged an order worth Rs757 crore from state-run Oil and Natural Gas Corporation for supply of seamless pipes. “The delivery under this contract would commence immediately and would be spread in next 15 months and the revenues would be accrued accordingly,” the firm said in a filing to the Bombay Stock Exchange. With this contract, the order-book of the company stood at Rs1,370 crore. In June, the pipe manufacturing company had won an export order of $45 million from a US firm. Seamless pipes are used in extreme conditions such as those at oil fields and in transportation of gas. Maharashtra Seamless was trading at Rs195.10, up 3.64% in morning trade on the BSE. Source: Home - Livemint.com | 11 Nov 2008 | 6:01 am Scope for further RBI rate cuts - PM adviserNEW DELHI (Reuters) - The Reserve Bank of India has some scope for further rate cuts and it may act if overnight cash rates move up, a top economic adviser to the Prime Minister said on Tuesday.Source: Reuters: Money News | 11 Nov 2008 | 5:38 am Top US electronics retailer seeks bankruptcy protectionAtlanta: Circuit City Stores Inc, the No. 2 US consumer electronics retailer, filed for bankruptcy on Monday just weeks before the start of the holiday shopping season, becoming the largest retailer to file for Chapter 11 since Kmart in 2002. Circuit City fell victim to tighter credit terms from vendors, a dwindling cash position and decreased consumer spending amid a deepening economic crisis. The filing comes one week after the 59-year-old retailer said it would close 155 US stores, or more than one-fifth of its retail base, and cut 17% of its US work force. The retailer and 17 affiliates filed for protection from creditors in US bankruptcy court in Richmond, Virginia, where it is based. Its Canadian operations also filed for creditor protection in an Ontario court. Analysts said there was now a possibility the company would close more US stores as it negotiates to exit costly leases in Chapter 11. The company could face an uphill struggle to reorganize and emerge from bankruptcy since credit is tight and consumer spending has plummeted. US home-goods retailer Linens ‘n Things tried to maintain operations by closing a portion of its stores after its May Chapter 11 filing, but finally liquidated altogether. Last week, smaller electronics chain Tweeter filed Chapter 11 and said it was holding store-closing sales. Circuit City received court approval for a $1.1 billion debtor-in-possession revolving credit facility that would provide critical liquidity while it reorganizes. The financing is provided by the lenders of Circuit City’s current asset-based credit facility and enables it to pay vendors and other business partners in the ordinary course for goods and services received after the filing. Circuit City expressed hope it would be able to emerge from Chapter 11 in the first half of 2009. In a filing, the company said 1,300 workers were laid off on 7 November. That day, the Richmond newspaper reported that hundreds of workers had been let go from company headquarters. Source: Home - Livemint.com | 11 Nov 2008 | 4:02 am Target prices of India Inc weighed downChennai, Nov. 10 The stock market turmoil might have prompted some downward revision in stock prices but global brokerage houses are bullish on quite a few Indian stocks.Source: Business Line - Home Page | 11 Nov 2008 | 12:00 am Chinese stimulus package buoys marketsMumbai, Nov. 10 The equity market snapped its four-day losing streak on Monday as world markets surged after China announced a massive economic stimulus package.Source: Business Line - Home Page | 11 Nov 2008 | 12:00 am SMEs, services account for three-fourths of credit offtakeNew Delhi, Nov. 10 Small and medium enterprises (SMEs) and services accounted for nearly three-fourths of the incremental non-food credit provided between August 2007 and August 2008 even as companies in three other sectors — petroleum,Source: Business Line - Home Page | 11 Nov 2008 | 12:00 am Bharat Forge, Alstom to form two joint venturesNew Delhi, Nov. 10 Bharat Forge Ltd and Alstom Ltd will form two joint venture companies for manufacturing equipment for power sector, the companies announced onSource: Business Line - Home Page | 11 Nov 2008 | 12:00 am IndiGo beats headwinds, plans to hire more staffNew Delhi, Nov. 10 At a time when several domestic airlines are looking to prune their staff strength, the Delhi-based low cost airline, IndiGo, is on the look out for more pilots, cabin attendants, customer service and airport service agents.Source: Business Line - Home Page | 11 Nov 2008 | 12:00 am Hindustan Construction (Rs 58.8): BuyInvestors can buy Hindustan Construction Company at current levels with a short-term perspective. The stock bottomed at Rs 30.1 on October 27 after a protracted down trend. It had rebounded from this support in January 2005 too. WeeklySource: Business Line - Home Page | 11 Nov 2008 | 12:00 am BoE rate-cut: Barking at the moon?In what is being hailed as an unprecedented move in more than half a century, the Bank of England on Thursday (November 6) cut interest rates by 1.5 percentage points, beating the most optimistic expectations by half a percentage point. EconomistsSource: Business Line - Home Page | 11 Nov 2008 | 12:00 am ICICI Home Finance offers 11.15% on fixed depositsMumbai, Nov. 10 ICICI Home Finance, the housing finance arm of the largest private sector bank in the country, on Monday announced a fixed deposit scheme offering 11.15 per cent interest a year, probably the highest deposit rate being offered bySource: Business Line - Home Page | 11 Nov 2008 | 12:00 am Exporters bearish on maize export prospectsChennai, Nov. 10 Corn (maize) exporters are bearish on export prospects in the short-term but are expecting a pick-up from around December. On the other hand, with arrivals beginning to flood the markets, the prices have startedSource: Business Line - Home Page | 11 Nov 2008 | 12:00 am Trading terminals of 124 brokers disabled in OctoberMumbai, Nov. 10 The number of broker-member terminals deactivated by the NSE in October was more than double the deactivations in the previousSource: Business Line - Home Page | 11 Nov 2008 | 12:00 am Auto's worst Q3 in years loomsIt's verily Nightmare on Auto Street. October-December, or the third-quarter, is going to be the worst in at least five years for the automobile sectorSource: Daily News & Analysis: Money News | 10 Nov 2008 | 10:30 pm NBFC metamorphosis on the cardsA sharp decline in loan disbursements by non-banking finance companies is likely to force them to change their business model and partner with banks in order to survive competition.Source: Daily News & Analysis: Money News | 10 Nov 2008 | 10:27 pm Pharma players see Crams booming under slowdownNow that the dark clouds are lifting slowly, the silver lining is clearer. At least for pharmaceutical companies in the contract research and manufacturing services (Crams) space.Source: Daily News & Analysis: Money News | 10 Nov 2008 | 10:24 pm Spencer's nears deal with BHPCSpencer's Retail is close to signing a franchise agreement with Beverly Hills Polo Club (BHPC), a US-based casual apparel brand.Source: Daily News & Analysis: Money News | 10 Nov 2008 | 10:22 pm Ministerial group suggests new formula for 3G, 2G+3G pricingNew Delhi: A ministerial committee looking at how India can charge for spectrum in a business environment where some telcos provide second-generation, or 2G, services, some provide data-rich third-generation, or 3G, services, and some provide both has suggested a formula that seeks to address difficulties in accounting and monitoring involved in levying this charge. The committee, comprising representatives from several ministries, has suggested that firms offering only 3G services pay 3% of their annual gross revenue and those offering both 2G and 3G services pay 1 percentage point more than what they currently pay for spectrum—a proportion that ranges between 2% and 5% of annual gross revenue for firms offering services on the GSM platform and 2% for those offering services on the competing CMDA platform. Both will kick in a year after firms have been issued licences and spectrum, allowing them enough time to roll out their services. The Telecom Regulatory Authority of India, or Trai, had earlier recommended that telcos offering 3G services pay 1% of their revenue as spectrum charges. This, however, would have meant that while these firms paid 1% of their annual gross revenue, those offering 2G services would have had to pay up to 5% of their annual gross revenue as spectrum fees. The ministerial panel was created by the department of telecommunications (DoT) to look at a fair model of charging firms offering 3G services and ways to segregate revenue from 2G and 3G services. The panel, in its report, however, said segregating revenue between 2G and 3G services of a telco would be difficult. The report cites “huge difficulties in verification and audit to prevent creative accounting and arbitrage, and other practical difficulties” to rule out segregation of 2G and 3G revenues. 3G services won’t generate much revenue initially because they will likely be restricted to the metros and “be a high-end service”, said Romal Shetty, director at audit and consulting firm KPMG. “The fact that it is being given out by auction and the fact that the handsets are priced at Rs10,000 at least does not allow for the service to be really cheap and driven by volumes.” Shetty said it would take at least two or three years for revenue to come in. With DoT considering raising charges for 2G spectrum by 1 percentage point, the panel has also suggested that firms providing both 2G and 3G services continue to pay what they currently do for 2G spectrum. The additional 1 percentage point would mean doubling the spectrum charge for telcos in the lowest slab, the panel’s report said. Meanwhile, in an unrelated development, India’s telecom minister A. Raja, under fire for allocating spectrum to new entrants without an auction, is likely to ask for an investigation into how DoT didn’t issue new licences before he took charge, claiming there was no spectrum available, news agency PTI reported, citing unnamed sources. PTI contributed to this story. Source: Tech News - Livemint.com | 10 Nov 2008 | 7:21 pm Slowdown cools attrition in outsourcing industryBangalore: First they tried bonuses. Then award programmes, and long-term planning for career. But the US financial crisis has helped Indian outsourcing firms do what they couldn’t quite do on their own: get employees to stick around. Business process outsourcing (BPO) companies have struggled for years with a labour pool largely defined by young workers who hopped from one employer to another, and stayed with one, on average, for only 11 months. But that was before several of the world’s largest banks collapsed, the credit markets froze, and people started to worry more about whether or not they had a job than how good a job it was. The BPO industry’s churn rate has come down below 20% in the third quarter, down from 35% in 2007, and the low 20s earlier this year.  Campus bound: Employees at a Convergys call centre in Gurgaon. As employees are staying with their current employer, many outsourcing firms are turning more to campuses for fresh recruitment. Madhu Kapparath / Mint As call centre agents and other outsourcing workers stay put, companies are cutting their recruiting budgets, scaling back or refocusing training efforts and agreeing that the frenzied wooing of employees is a thing of the past. “There are lesser jobs on the job market, but there is also more maturity in the job market,” says Samir Chopra, president of the Business Process Industry Association of India. “They would leave for a few hundred rupees’ increment, or a few whimsical perks. Now, they are more stable with the general state of the economy,” he says. Attrition occurs in different forms, and is calculated in different ways, so statistics are often difficult to compare. The bulk of call centre employees simply choose a day to stop showing up, but a smaller minority serve out a notice period. Nina Nair, who heads human resources for the BPO 24/7 Customer, Inc. says she has seen a significant drop in numbers of the latter, but hasn’t yet seen the same kind of decline in the number of so-called “no-shows”. “The number of no-call, no-shows should come down, and that’s where the positive impact will be,” says Nair, who estimates that the company’s attrition rate hovers around 38-40%, but that voluntary resignations have come down 8 percentage points in the past few months. The slowdown on attrition has made some internal development goals easier to fulfil. Genpact, for example, Mehta says, set a target for itself to fill 80% of new roles through internal promotion, a goal that is easier to reach when employees are staying with the company long enough to rise through the ranks. “Clearly, slowdown is a good thing in attrition,” Mehta says, “but we also have fewer positions to fill. Eighty per cent is ambitious and we’re doing well.” BPO company Convergys Corp. has also used the slowdown to move more employees into new mid-level positions within the organization. “At last year’s (attrition) level, we would have hired more from outside,” says recruiting director Ashutosh Sinha. “We wouldn’t have that luxury to move people internally.” Convergys, which has been expanding amid the downturn with new business lines, including work for financial companies counselling mortgage defaulters in the United States on how to pay off their debts, is also feeling the flip side of low attrition—a tough environment to recruit. The company planned to hire around 2,500 agents between September and December, which is more than double the amount the company has ever recruited in the past within the same time frame, Sinha says. “It has forced us to add more budget to advertisements, vendor costs, the cost of referrals,” he says, “and right now we are actually seeing no let-down on those costs.” In order to recruit in an environment where employees aren’t as likely to move around, the company is trying out things it hasn’t in the past, including television advertisements, on channels such as MTV and Times Now, incentives for team leaders to promote referrals within their team, and training sessions for candidate that didn’t make the cut on the first try. “The stretch in my team is huge,” Sinha says. “People are not job-hopping across companies so easily, so we are doing more to give them confidence that we are giving them a secure job.” Since agents are staying with their current employer, many outsourcing firms are turning more to campuses for hiring. “We’re getting a whole lot of people coming in for employment,” says 24/7’s Nair, “and most are youngsters looking at taking up a job with a BPO.” The decrease in attrition does have a downside, since attrition is often considered an easy way to get rid of low performers. Most don’t expect attrition to drop enough to make firing underperformers a major issue, but they do expect the next round of salary raises and evaluations to be much stricter. “The guys who started at Rs5,000 and were suddenly sitting on Rs20,000 when supply was shorter than demand,” says Chopra, “those Rs20,000 might get salary corrections.” “Employers have a choice, and will be more strict in terms of quality, appraisal,” he says, “and only the best will get salary increments.” Source: Tech News - Livemint.com | 10 Nov 2008 | 7:15 pm Goldman Sachs cuts India 2008-09 forecast to 6.7%Goldman Sachs on Monday cut its India growth estimate to 6.7 per cent from 9 per cent in the year ending March 2009 due to the knock-on effects of the global financial crisis.Source: Business Standard | Front Page Headlines | 10 Nov 2008 | 6:42 pm Taxes, costing methods make Indian ATF prices highest in Asia-PacificDespite a 36 per cent cut in aviation turbine fuel (ATF) prices since August and a waiver on customs duty, India can still boast of some of the highest prices in Asia-Pacific with or withoutSource: Business Standard | Front Page Headlines | 10 Nov 2008 | 6:41 pm Exports shrink in October: DGFTFirst fall since 2003, small exporters hit hardest.Source: Business Standard | Front Page Headlines | 10 Nov 2008 | 6:40 pm Chinese bailout boosts stock, commodity mktsEquity and commodity prices surged across the world after China announced a $586-billion stimulus package that may spur economic growth in that country, the worlds third largest economy, andSource: Business Standard | Front Page Headlines | 10 Nov 2008 | 6:39 pm What we googled for during the US elections Mumbai: The US presidential election provided an opportunity for some Indian companies such as Jet Airways (India) Ltd to plug their brands online.  Global popularity: Barack Obama at a campaign rally inVirginia on 28 October. The highest global search-hits for the word Obama came from Kenya, followed by the US, in the week preceding the elections. Jason Reed / Reuters Two India-related brands that tried to capitalize on the election through search engine marketing and online campaigns were the Reuters India website and Telugu movie star Chiranjeevi’s fledgling Praja Rajyam Party, says Prasanth Mohanachandran, executive director, digital services, Neo@Ogilvy, an arm of OgilvyOne Worldwide. The firm conducted a detailed study on search results in the run-up to the election. Mahesh Murthy, founder of digital marketing firm Pinstorm, says his company leveraged election-related words for the Jet Airways campaigns for the Indo-US route and one for Canon dual camcorders (“capture the election”, for instance) aimed at the Singapore market. The number of people who saw Jet ads on 5 November on Google alone would have been more than twice the usual search volumes, he says. Karnataka and Tamil Nadu dominated the search in India for issues such as outsourcing and H1B visas Amar Deep Singh, vice-president of digital marketing agency Interactive Avenues, says key election-related words delivered 20% more daily clicks for ads for client Mypopkorn.com, a video and entertainment portal, with at least 50 US election-related videos in the lasts two days of the elections. “The cost per click was 60% lower than the campaign average as there was hardly any competition on these key words. We regularly use these type of tactics to deliver value to our clients; we used it last time for UTVi.com and Mypopkorn.com when the US financial meltdown was unfolding with results being declared by various companies such as Lehman Brothers, AIG, etc.” Singh said. Interestingly, Murthy claims that Indian searchers predicted the electoral college results. Obama-related searches outnumbered McCain-related searches 2.3:1, nearly the same as the electoral college results. This ratio is based specifically on search volumes that the word Obama got versus McCain on 5 November for an international campaign that bought these words. Words related to Sarah Palin, the running mate for Republican presidential candidate John McCain, outnumbered searches for her Democratic counterpart Joe Biden 5:1. Also, there were more searches for Obama than for generic US election-related key words, adds Murthy. In India, Karnataka’s online community led the search for Palin in the month preceding the US election, followed by Maharashtra, Delhi and Tamil Nadu, according to Neo@Ogilvy. Of course, the IT-savvy south Indian belt of Karnataka and Tamil Nadu dominated the search in India for issues such as outsourcing concerns. And, south Indian states topped the search charts globally for H1B—the US visa programme for tech and other workers—as a secondary word together with Obama, says Mohanachandran. Interestingly, late US civil rights leader Martin Luther King Jr’s “I have a dream” speech started resonating stronger with online searchers in the US as the campaign advanced and financial turmoil deepened. From the No. 10 spot in the US three months before the election, it rose to No. 4 a month before. No other country matched the US’ search-hit index of “Obama change”, reflecting the fact that people there associated Obama with change, as his campaign promised, according to the Neo@Ogilvy study. As a reflection of Obama’s Kenyan roots (Obama’s father was a Kenyan), the word Obama evoked the highest interest levels in Kenya followed by the US in the week preceding the elections, according to the study. The Neo@Ogilvy study highlights that in the week leading to the US elections, the secondary words most searched for in conjunction with Obama included—“India Pakistan” searched most for by Karnataka and Tamil Nadu online in India, and Kenya, the US and Ethiopia worldwide; “outsourcing”—searched most by Tamil Nadu and Karnataka and again Kenya, the US and Ethiopia worldwide. Not surprisingly, BPO, or business process outsourcing, was searched for most by Internet surfers in Tamil Nadu and Karnataka in India, and Kenya, the US and Ethiopia globally. A more disquieting search glossary of words used with Obama included Kashmir and terrorism—both searched for most by Karnataka and Delhi in India and Kenya, the US and Ethiopia worldwide. Source: Tech News - Livemint.com | 10 Nov 2008 | 4:52 pm Jivox expands footprint, opens sales office in MumbaiMumbai: Spurred by a significant growth in its business, on-line video advertising services provider Jivox India opened a sales office in Mumbai. This is the company’s second sales office in the country, the other being in Delhi, a statement said here. Jivox India also announced the appointment of Vishwanath Shanbhag as its General Manager- Ad Sales. The company has its headquarters in Bangalore, which houses the core sales and marketing team as well as the development team. Jivox’s Director, Asia-Pacific Sales, Kshitiz Randhir Short, said: “Over the past year, we have seen a tremendous growth in our customer base in India. Mumbai, in particular, has seen over a 400% growth in revenue in the past quarter.” “Our opening of a sales office in Mumbai, with an experienced media professional, allows us to efficiently serve our clients,” he added. Recently, Jivox had announced that BigAdda would use Jivox video playing technology to deliver its extensive video assets to a nation—wide audience. Jivox India Managing Director Naren Nachiappan said: “Our product removes the final cost-barrier to video advertising and makes it a very cost-effective platform.” The company, which is California-headquartered, started its India operations in March through a sales and development office in Bangalore and a sales office in Delhi. It provides the only integrated service that allows an advertiser to create, publish and closely monitor and refine the performance of a video advertisement on the Internet. Source: Tech News - Livemint.com | 10 Nov 2008 | 12:14 pm
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