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Economic slowdown, high oil prices hit capitive power unitsThe ongoing cashcrunch is not only hurting companies that produce power, it\'s also taking the zing out of captive power generators. Many captive power units have already been shut down, and there\'s no relief in sight.Source: Moneycontrol Top Headlines | 18 Nov 2008 | 4:48 pm RPG Enterprises to add 325 stores over next 12 monthsSanjiv Goenka, ViceChairman of RPG Enterprises, said, unless banks start lending vigorously and the government cuts excise duty, the company cannot cut prices. Goenka said the company will add 325 stores over the next 12 months at an investment of Rs 1200 crore and will go slow on recruitments for Spencer.Source: Moneycontrol Top Headlines | 18 Nov 2008 | 3:33 pm Repricing ESOPs to aid dilution for India InfolineIndia Infoline has cancelled warrants issued to its promoters and key employees. While the management says that there will be no further equity dilution analysts believe the new ESOP scheme and repricing of existing ESOPs will create further dilution.Source: Moneycontrol Top Headlines | 18 Nov 2008 | 3:00 pm Eyeing investment by PE, hotel funds in new hotels: UnitechCommenting on reports about the possible sale of its hotel properties, Sanjay Chandra, Managing Director, Unitech, told CNBCTV18 that it is in talks with a few private equity players to invest in some of its new hotel assets.Source: Moneycontrol Top Headlines | 18 Nov 2008 | 2:13 pm Sobha Developers pledge further 6% with Swiss bankSobha Developers promoters have pledged further 5.89% equity with Bank Sarasin, Switzerland. Promoters have pledged 24.4% equity with Bank Sarasin, and Credit Suisse till now. The total equity pledged with Bank Sarasin has gone up to 13.7%.Source: Moneycontrol Top Headlines | 18 Nov 2008 | 1:41 pm Govt to act speedily to shield economy - ChidambaramNEW DELHI (Reuters) - The government is keeping a careful watch on the economy and will act speedily depending on the needs of various sectors, Finance Minister Palaniappan Chidambaram said on Tuesday.Source: Reuters: Money News | 18 Nov 2008 | 1:32 pm India sees G20 as top forum, but some concernsNEW DELHI (Reuters) – The finance minister said the Group of 20 nations will be the top economic forum for the future but he is concerned that no mechanism exists to oversee an economic action plan agreed by world leaders last weekend.Source: Reuters: Money News | 18 Nov 2008 | 1:31 pm Intel launches fastest processor on the planetMumbai: Intel launched its most advanced desktop processor Intel Core i7 processor in India Tuesday. The Core i7 processor is the first member of a new family of Nehalem processor designs and is the most sophisticated ever built, with new technologies that boost performance on demand and maximize data throughput. The Core i7 processor speeds video editing, immersive games and other popular internet and computer activities by up to 40% without increasing power consumption. Broadly heralded by the computing industry as a technical marvel, the Intel Core i7 processor holds a new world record of 117 for the SPECint_base_rate2006* benchmark test that measures the performance of a processor. This is the first time ever for any single processor to exceed a score of 100 points. “Intel has delivered the fastest desktop processor on earth to the most demanding users on earth, the ones who are using their PCs for video, gaming and music,” Intel’s South Asia Marketing Director, Prakash Bagri, told reporters. The Core i7 also has the latest Intel power-saving technologies, allowing desktops to go into “sleep-states” formerly reserved for Intel-based notebooks. Source: Tech News - Livemint.com | 18 Nov 2008 | 1:21 pm Ford abandons Mazda control with 20 pct stake saleTOKYO (Reuters) - Ford Motor Co, scrambling for cash as the U.S. Big Three automakers struggle to stay alive, will end 12 years of control of Mazda Motor Corp through the sale of a 20 percent stake in the Japanese carmaker for around $540 million.Source: Reuters: Money News | 18 Nov 2008 | 1:16 pm Citigroup layoffs to have a limited impact on IndiaNew Delhi: Allaying fears of possible job cuts, global financial services giant Citigroup on Tuesday assured that about 52,000 layoffs over the world will have a ‘limited’ impact on India. “The headcount reduction announced globally will have limited impact in India”, the company said in a statement. The Citigroup has about 22,000 employees currently working in India. Of which, 12,000 work for Citigroup Global Services Ltd (CGSL). Infact, the company in its statement has attributed the reason for a possible relief to a limited impact in India to the sale of Citigroup Global Services Ltd (formally e-serve) to Tata Consultancy Services, which is expected to be completed in the current quarter itself. The Vikram Pandit-led Citigroup had created a flutter in the job market announcing to slash more than 52,000 jobs in the coming months and reduce expenses by 20% in 2009. The company had stated that it would reduce the total head count to less than 3,00,000 in the near term as part of the plan. The financial services behemoth had a workforce of 3,52,000 in the third quarter of 2008. The firm, severely battered by the financial crisis, had incurred huge losses in recent quarters. In the third quarter, Citi had a loss of $2.8 billion. While, at the end of the fourth quarter of 2007, the company’s head count stood at 3,75,000, in the first three quarters of this year the company had chopped 23,000 jobs. Source: LatestNews-Home - Livemint.com | 18 Nov 2008 | 1:13 pm Intel launches fastest processor on the planetIntel, on Tuesday launched its most advanced desktop processor Intel Core i7 processor in India.Source: Daily News & Analysis: Money News | 18 Nov 2008 | 1:10 pm DLF defers projects as crunch bitesNEW DELHI (Reuters) - DLF Ltd, India's top listed realty, has deferred some projects due to a slump in demand and liquidity crunch, its chairman said on Tuesday, warning slowing construction activity could affect other sectors.Source: Reuters: Money News | 18 Nov 2008 | 1:08 pm Indian bond yields drop on rate cut expectations - Reuters India
Source: Google News India - Business | 18 Nov 2008 | 1:01 pm Liquidity, not demand main concern: Realty expertsNiranajan Hiranandani, MD, Hiranandani Constructions said the real estate sector is facing liquidity crunch as banks are not dispersing credit to the sector. While, Ravi Ramu, Director of Finance, Puravankara Projects said affordable housing project will attract large demand, adding that 15,000 homes are seen to come into the market.Source: Moneycontrol Top Headlines | 18 Nov 2008 | 12:58 pm Yahoo Rises as Yang Exit Sparks Microsoft Speculation (Update1) - Bloomberg
Source: Google News India - Business | 18 Nov 2008 | 12:56 pm BSE Sensex falls 3.8 pct as global gloom deepensMUMBAI (Reuters) – The BSE Sensex fell 3.8 percent on Tuesday, taking its losses to 15.2 percent over five consecutive sessions, as prospects of a global recession and massive job cuts at Citigroup rattled investors.Source: Reuters: Money News | 18 Nov 2008 | 12:48 pm Nifty ends 4% lower; banks, IT hit - Economic Times
Source: Google News India - Business | 18 Nov 2008 | 12:46 pm Govt to consider Tata’s proposal in helping domestic companiesBy PTI New Delhi: Minister of State for Industry Ashwani Kumar said the government will consider Tata Group chairman Ratan Tata’s proposal of setting up a special fund in select banks to help domestic companies repay foreign loans. “The proposal has come and it will definitely be considered,” the minister said while addressing the India Economic Summit on Tuesday. He said the government has received the suggestion of the Tata Group chairman for creating a separate fund in a few banks to enable companies to meet global exigencies. Tata, in a letter to the Prime Minister, has proposed the creation of a fund in select banks to help creditworthy corporations with funds in meeting exigencies. Besides difficulty in rolling over the existing debt and fresh funds drying up, the depreciation of the rupee against the US dollar has further impacted the domestic companies with the increased cost for servicing overseas loans. Kumar further said that a few sectors of the economy are in greater need for funds. “In fulfilling their needs, whatever help the government can, it will provide,” he said. The Minister has convened a meeting of industry associations tomorrow to assess their requirements. “The government at the highest level will work pro-actively with industry so that we can come out (of the financial challenges) as soon as possible,” he added. Source: LatestNews-Home - Livemint.com | 18 Nov 2008 | 12:45 pm Citi to cut less than 300 jobs in Singapore - sourcesSINGAPORE (Reuters) - Citigroup may cut less than 300 jobs in Singapore, a sign Asia could see much smaller cuts than other regions as part of the U.S. bank's global restructuring plan, sources told Reuters on Tuesday.Source: Reuters: Money News | 18 Nov 2008 | 12:41 pm Global bank profits tumble, jobs slashed, bonuses cutTOKYO/LONDON (Reuters) - Major world banks showed the strain of economic crisis on Tuesday, with Britain's Barclays altering its fund-raising plans to quell shareholder anger and profits in Japan's largest bank tumbling.Source: Reuters: Money News | 18 Nov 2008 | 12:36 pm Indian stocks tumble on worsening global economic outlook!The Bombay Stock Exchange benchmark Sensex on Tuesday extended its downslide and dipped below 9,000 points level again by losing over 327 points in early trade, before recovering slightly.Source: Zee News : Business | 18 Nov 2008 | 12:31 pm Big rate cut needed to lift economy: Kamath!Interest rates in India have to come down by another 2-3 percentage points in order to stimulate demand in the economy, ICICI Bank chief KV Kamath said on Tuesday.Source: Zee News : Business | 18 Nov 2008 | 12:31 pm US in 14 month recession: Forecasters!The US economy fell into a recession last spring and will contract sharply this quarter as more than 200,000 workers per month are added to the rolls of the unemployed, a survey said on Monday.Source: Zee News : Business | 18 Nov 2008 | 12:31 pm FM says India to bounce back; asks Cos to cut prices!Finance Minister P Chidambaram on Tuesday expressed hope that the ongoing financial crisis will come to an end soon and that India will weather the storm.Source: Zee News : Business | 18 Nov 2008 | 12:31 pm Rupee falls by 37 ps, heads towards 50-mark!The Indian rupee headed towards the 50-mark as it fell by 37 paise to 49.71/72 against the greenback on Tuesday morning in sync with bearish equity markets due to sustained capital outflows.Source: Zee News : Business | 18 Nov 2008 | 12:31 pm Asia stocks drop as bank job cuts hit mood!Asian stocks fell on Tuesday after Citigroup cut 52,000 jobs in a dramatic move to save itself and downbeat policymaker comments reflected worsening economic conditions that will unlikely improve until well into 2009.Source: Zee News : Business | 18 Nov 2008 | 12:31 pm Yahoo to replace Yang as CEO, ending rocky reign!Yahoo will replace founder Jerry Yang as CEO as soon as a replacement is found. The move announced on Monday will end Yang`s rocky 17-month reign running the internet company that he started 14 years ago.Source: Zee News : Business | 18 Nov 2008 | 12:31 pm Citigroup to slash 52,000 jobs worldwide, sees hard 2009 !Citigroup Inc revealed plans to cut 52,000 jobs by early next year in a dramatic move to restore the No. 2 US bank to health as it combats mounting debt losses and sagging economies worldwide.Source: Zee News : Business | 18 Nov 2008 | 12:31 pm FM asks auto, realty, airlines to cut prices!Calling upon the automobile manufacturers, realty firms and airlines to reduce prices, Finance Minister P Chidambaram on Tuesday promised to consider excise duty cut for the sectors.Source: Zee News : Business | 18 Nov 2008 | 12:31 pm Oil prices make slight gains in Asia!Oil prices made slight gains in Asia on Tuesday after falling around USD 2 on worries over a deepening global financial crisis, dealers said.Source: Zee News : Business | 18 Nov 2008 | 12:31 pm Tata Group leads India Inc's sustainable development effortTop business conglomerate the Tata Group has emerged the leader in sustainable development in India in the first-ever move to measure performance of businesses in this area by a Sustainable Development Index (SDI) launched here Tuesday by UK telecommunication major British Telecom (BT).Source: IndiaeNews.com: Business News | 18 Nov 2008 | 12:31 pm DLF seeks lower interest rates, defers projectsHit by liquidity crunch, India's leading real estate firm DLF Ltd has deferred some projects and urged the government to slash interest rates by three percent to stimulate growth, a top official said here Tuesday.Source: IndiaeNews.com: Business News | 18 Nov 2008 | 12:30 pm SIB hikes rates on NRE, FCNR deposits - Business Standard
Source: Google News India - Business | 18 Nov 2008 | 12:29 pm No reports of credit crunch hitting power plants: GovtThe Power Secretary, Anil Razdan said that there are no reports as of now that credit crunch is affecting power plants. He would be shortly holding a meeting with power developers to see if there are any issues related to credit crunch.Source: Moneycontrol Top Headlines | 18 Nov 2008 | 12:27 pm Diamond cutting units to work five days a weekVarious diamond cutting and polishing units in Gujarat have decided to work five days a week till January next year to weather the global slowdown.Source: Daily News & Analysis: Money News | 18 Nov 2008 | 12:26 pm Red Cross asks for $420 million for developmentBy AP Johannesburg: The international Red Cross is asking for $420 million to help better prepare for floods, earthquakes and disease outbreaks around the world. But the agency says it realizes the global financial crisis means that donors will be less generous. The International Federation of Red Cross and Red Crescent Societies made the appeal during a presentation in South Africa on Tuesday. The agency’s southern African operations director Francoise Le Goff says donors are more likely to respond to emergencies than to spend on infrastructure projects. But she says spending on preparedness now would mean future disasters will be less costly. Source: LatestNews-Home - Livemint.com | 18 Nov 2008 | 12:16 pm Sensex closes below 9,000 ptsExtending the losing streak to the fifth straight day, the bellwether Sensex closed below 9,000 level in nearly 3 weeks.Source: Daily News & Analysis: Money News | 18 Nov 2008 | 12:13 pm Angry workers demonstrate at Dunlop's West Bengal factoryA day after tyre major Dunlop suspended production at its Sahaganj unit in West Bengal, angry workers Tuesday staged a demonstration and threatened to enter the factory by breaking open the gates.Source: IndiaeNews.com: Business News | 18 Nov 2008 | 12:02 pm National Mineral Development Corp to mine coal in West BengalThe state-owned National Mineral Development Corp (NMDC) will invest Rs.10 billion to explore, develop and mine coal blocks in West Bengal, a top company official said here Tuesday.Source: IndiaeNews.com: Business News | 18 Nov 2008 | 12:01 pm 'Economic growth to fall to 5.8 percent next fiscal'India's economic growth would fall to 5.8 percent in 2009-10 mainly due to fall in exports, according to an economic analysis by a global financial services firm.Source: IndiaeNews.com: Business News | 18 Nov 2008 | 12:00 pm More scope of monetary measures and rate cuts: KamathIndustry chamber CII on Tuesday said there is more scope of monetary action to further ease liquidity and help banks to cut interest rates.Source: Daily News & Analysis: Money News | 18 Nov 2008 | 11:57 am The road ahead for India - Moneycontrol.com
Source: Google News India - Business | 18 Nov 2008 | 11:56 am Infosys BPO receives Management AwardInfosys BPO, the business process outsourcing subsidiary of Infosys Technologies, has got the "Group Excellence in Business Continuity Management" awardSource: Daily News & Analysis: Money News | 18 Nov 2008 | 11:56 am Tata Sky assigns ad account to O&M for Rs60-70 croreMumbai: Ogilvy and Mather won the creative account of Tata Sky worth Rs60-70 crore, which was withdrawn from Rediffusion Y&R, according to Spatial Access Media Solutions latest figures. Spatial’s advertising account update for period between 4-17 November also mentions another loss for Rediffusion, as their account from the channel Colors [Viacom 18] moved to Orchard Advertising for Rs25-30 crore. Despite other gains, O&M lost one of its contract of Wockhardt Hospitals to Grey (Bengaluru) which amounts to Rs20 crore. In the media sector, Real Global Broadcasting [RGB] has awarded its media duties to OMD India for Rs15-20 crore. Click here for detailed report Source: LatestNews-Home - Livemint.com | 18 Nov 2008 | 11:45 am Govt to inject Rs50,000 cr in infra projectsNew Delhi: In a major initiative to pump prime the economy through public expenditure, the government has decided to inject a whopping Rs50,000 crore for funding infrastructure projects. “The plan is to spend Rs50,000 crore on infrastructure... its specific contours will be announced anytime,” Minister of State for Industry Ashwani Kumar said on Tuesday. He said the money would be spent on projects that would be built through the Public-Private-Partnership (PPP). Prime Minister Manmohan Singh on Monday chaired a meeting of a committee, which discussed further liquidity injection into the cash-starved Indian economy that has started receiving blows from the global meltdown. Finance Minister P Chidambaram, Commerce and Industry Minister Kamal Nath, Planning Commission Chairman Montek Singh Ahluwalia and Reserve Bank Governor D Subbarao are part of the committee, chaired by the Prime Minister, which is keeping a close eye on the impact of the global slowdown on the Indian economy. Source: LatestNews-Home - Livemint.com | 18 Nov 2008 | 11:35 am Sobha Developers hits 52-wk low on pledging 5.9% equity to Bank ... - Economic Times
Source: Google News India - Business | 18 Nov 2008 | 11:32 am Recession fears hit European shares; banks slipLondon: European shares fell in morning trade on Tuesday, as commodity stocks slipped tracking a retreat in metals and crude prices and banks weakened on concerns about a deep global recession in major economies. By 3:10pm (IST), the FTSEurofirst 300 index of top European shares was down 1.9% at 820.8 points after being as high as 843.21 points earlier in the session. News that British annual consumer price inflation tumbled to 4.5% in October from 5.2% the previous month did little to lift the mood. “Encouraging news is the CPI’s fallen quite sharply. Even more encouraging is that core inflation has come down and that leaves the door open for a bigger cut than we’re currently expecting at the bank’s December meeting, which is 50 basis points,” said George Buckly, chief UK economist at Deutsche Bank. Banks were the biggest weighted fallers on the index. HSBC, Banco Santander, BNP Paribas and Dexia were down 2.3-7.3%. Miners were in the doldrums as the copper price retreated 1.63%. Lonmin was down 8.7% after the group’s CEO said he expected the market outlook to remain challenging and saw no material recovery in metals prices until 2010 at earliest. Anglo American, BHP Billiton, Rio Tinto and Xstrata were down 3.4 to 9%. Energy stocks fell from earlier gains after crude fell back 0.7% BG Group, Royal Dutch Shell and BP were down 0.8-1.8%. Across Europe, the FTSE 100 index was down 1.9%, Germany’s DAX was 1.9% lower and France’s CAC 40 fell 2%. Source: LatestNews-Home - Livemint.com | 18 Nov 2008 | 11:31 am Banks should reduce rates by 300 bps: Rahul BajajRahul Bajaj, Chairman and Managing Director of Bajaj Auto Limited said the auto industry was functioning on a meager margin of 34%. He feels that the biggest problem of the auto sector is the lack of consumer finance and believes banks should reduce rates by at least 300 bps.Source: Moneycontrol Top Headlines | 18 Nov 2008 | 11:22 am Sensex slips below 9K, IT, banking stocks major losersMumbai: Falling for the fifth day in a row, the benchmark Sensex on Tuesday closed below 9,000 level after more than 20 days with funds intensifying selling after Citigroup announced plans to lay off over 50,000 people, indicating the deep impact of the global financial upheaval. The BSE bellwether index closed the day at 8,937.20, down by 353.81 points from its last close. Sensex had lost more than 1,500 points in these five days of losing-spree. The barometer last closed below 9,000 level on 27 October. National Stock Exchange index Nifty also lost 116.40 points at 2,683.15. Brokers said the world’s largest lender Citigroup’s plans of massive job cuts mainly dampened trading sentiment. Besides, Japan sliding into recession also weighed against buying support. Vikram Pandit-led financial services giant yesterday said it would cut more than 52,000 jobs in the coming months. Marketmen said the investors drew little comfort from the finance minister’s saying the government will take steps to stimulate the economy to offset the impact of the global slowdown. Sluggish global economic conditions, particularly in the US, from where software companies earn a good chunk of their revenues, continued to cast a shadow on IT stocks whose index ended lower by 4.70%. Power and banking indices also bore the brunt of selling, and their respective indices closed down by over 4%. Among IT stocks, Infosys, Satyam, TCS and Wipro were the major losers, while Tata Power, Reliance Infra, Reliance Power, Siemens, NTPC, BHEL and ABB were the power sector shares which closed down sharply. However, teck sector index suffered the most at 4.96%. Source: Home - Livemint.com | 18 Nov 2008 | 11:20 am India Economic Summit reflects underlying unease amid hope - Economic Times
Source: Google News India - Business | 18 Nov 2008 | 11:08 am RPG Enterprises investing Rs.15 bn to open 325 new storesKolkata-based RPG Enterprises Tuesday said it will invest Rs.15 billion in its retail business to open 325 Spencer's stores across the country by end-2009.Source: IndiaeNews.com: Business News | 18 Nov 2008 | 11:01 am Equities end in red, key index dips below 9,000Indian equities markets opened weak Tuesday and stayed in the red throughout the day, a key index shedding more than 350 points to end below the psychologically important 9,000-point mark.Source: IndiaeNews.com: Business News | 18 Nov 2008 | 11:01 am Market Slowdown Forces Gati To Raise Rates Up To 10% - TopNews
Source: Google News India - Business | 18 Nov 2008 | 10:58 am Price cut not a solution to demand fall: BajajBajaj Auto Ltd chairman Rahul Bajaj Tuesday said cutting prices was not a solution to the demand slump as banks were still wary of lending to consumers due to liquidity squeeze.Source: IndiaeNews.com: Business News | 18 Nov 2008 | 10:33 am India Economic Summit reflects underlying unease amid hopeAn underlying unease amid hope! This perhaps best describes the mood among the participants at this year's India Economic Summit, which evidently lacked the high-profile attendance that the Davos, Switzerland-based World Economic Forum (WEF) had generally managed to draw in the past.Source: IndiaeNews.com: Business News | 18 Nov 2008 | 10:32 am DLF urges government to cut home loan ratesHours after Finance Minister P. Chidambaram called upon industry to cut down prices, property developer DLF Tuesday said real estate prices were bound to come down due to lower input costs, but urged the government to slash interest rates by three percent.Source: IndiaeNews.com: Business News | 18 Nov 2008 | 10:30 am Fearing drop, IIM-A extends summer time placements - Economic Times
Source: Google News India - Business | 18 Nov 2008 | 10:19 am TCS opens delivery centre at Tianjin in China - Economic Times
Source: Google News India - Business | 18 Nov 2008 | 10:17 am 'No scope for price cut in 2-wheeler industry'P Chidambaram to the auto industry for cutting rates, Bajaj Auto Chairman Rahul Bajaj on Tuesday said there is no scope for price reduction in the two-wheeler industry in the near future.Source: Daily News & Analysis: Money News | 18 Nov 2008 | 10:05 am 'Price cut unlikely to increase demand'Country's largest two-wheeler maker Hero Honda today virtually ruled out cutting prices, saying it was unlikely that such a step would spur demand.Source: Daily News & Analysis: Money News | 18 Nov 2008 | 10:04 am India last bastion for high jobs growthBad times in the West may force companies to offshore more jobs to cheaper destinations like India, making it the last bastion for jobs growth.Source: Daily News & Analysis: Money News | 18 Nov 2008 | 10:04 am DLF freezes projects, fires staffThe liquidity squeeze-induced slump in demand has forced real estate leader DLF to fire some employees, put a number of hotel and housing projects on hold and yearn for 7% home loan rates.Source: Daily News & Analysis: Money News | 18 Nov 2008 | 10:03 am Porsche to launch Panamera in India 2009-endAuto major Porsche on Tuesday said it will launch its four-door, four- seater luxury sedan 'Panamera' late next year.Source: Daily News & Analysis: Money News | 18 Nov 2008 | 10:03 am Obama has a larger world-view than Bush: ChidambaramNew Delhi: “President-elect Barack Obama may agree to a proposal of global oversight of the financial system as he has a larger world-view than US President George Bush,” Finance Minister P. Chidambaram said today. “Given by what I have read about President-elect Obama, I see no reason why he should be averse to the idea. I think he has a larger view of the world than President Bush. Therefore, I think he should agree to this global oversight,” Chidambaram said at India Economic Summit, organised by the World Economic Forum and CII. The Finance Minister said that it is not clear to him whether the Obama administration is fully on board with what the outgoing administration has put on table at the G-20. “It would have been reassuring if the incoming administration quickly stated that it is on board and is closely engaged with the outgoing administration,” he said. Chidambaram said that his concern is that the G-20 in Washington could not agree on some kind of global oversight of the implementation of the action plan. “I would have liked global oversight, not a global regulator; just a oversight mechanism to ensure that the national regulator and national authorities are implementing the action plan between now and 31 March,” he said. Chidambaram also said that G-20 is a much better forum than the G-7 and is a better representative body of the world’s GDP. “I don’t know whether the G-20 will replace the G-7, but I think the G-20 will become the most important economic forum like BRIC (Brazil, Russia, India and China) to address the economic issues,” he said. Chidambaram said the G-20 has been meeting regularly for the last 10 years, but the G-7 has dominated the international scene. “I think the G-7 has recognised belatedly that it alone does not have solutions to problems and unless they engage with the emerging economies and the growth sectors in the world, there is no solution to the world problem,” he said. “That’s my take-away from Washington. The G-20 has come to stay as the single-most important forum to address the financial and economic issues of the world. I am generally happy with the G-20 declaration. And I am happy with the action plan,” he added. Source: LatestNews-Home - Livemint.com | 18 Nov 2008 | 9:53 am BHEL wins Rs1,325 crore order from APGENCONew Delhi: State-run power equipment maker Bharat Heavy Electricals Ltd has said that it has won an order worth Rs1,325 crore for supplying and installing main plant package at a power project in Andhra Pradesh. The order has been placed by Andhra Pradesh Power Generation Corporation (APGENCO) for setting up a 600 MW thermal power generating unit in Warangal district of the state, the company said in a statement. “BHEL has received a Rs1,325-crore order for the supply and installation of main plant package at a power project in Andhra Pradesh from APGENCO,” the statement said. BHEL’s scope of work includes design, engineering, manufacture, supply, erection and commissioning of steam turbines, generators, boilers, associated auxiliaries and electricals, and controls and instrumentation (C&I). The unit is slated for synchronisation in a schedule of 42 months. The boilers and its auxiliaries will be manufactured at the company’s units at Tiruchirapalli and Ranipet, while steam turbines and generators will be manufactured at the Haridwar plant of BHEL. The company has enhanced its manufacturing capacity to 10,000 MW and plans to take it further to 15,000 MW by the end of the current 11th Five Year Plan (2007-2012). BHEL plans to invest Rs4,200 crore in the next two years for the expansion. Source: Home - Livemint.com | 18 Nov 2008 | 9:39 am Chidambaram asks auto, realty firms and airlines to cut pricesNew Delhi: Calling upon the automobile manufacturers, realty firms and airlines to reduce prices, Finance Minister P. Chidambaram has promised to consider excise duty cut for the sectors which are facing the heat of global financial meltdown.  Finance Minister P. Chidambaram addressing industrialists at the Indian Economic Summit being organised by the World Economic Forum and the CII here. Harikrishna Katragadda / Mint “Hotels must cut tariffs, airlines must cut prices, real estate must cut rates of apartments and homes they sell, car makers and two-wheeler makers must cut prices,” he said, while addressing industrialists at the Indian Economic Summit being organised by the World Economic Forum and the CII here. The minister also promised to examine the possibility of excise duty cut if required. “Any sector faces problem, I am open to examining suggestions on cut in excise duty rates,” Chidambaram said. He said that India will record satisfactory growth in the current fiscal and the Gross Domestic Product (GDP) growth rate will bounce back during the next year. Responding to the suggestion of Chidambaram to lower rates to generate demand, CII president K.V. Kamath said that industry would cut prices. “Price cut is an initiative that industry will take. I think this is going to happen,” Kamath, CII chief and managing director of the largest private sector lender ICICI Bank, said. While pointing out that the time-tested response to demand slowdown has been to cut prices, Chidambaram said: “That is a much better option than allowing inventories to build up, non-performing assets (NPAs), lay off and retrenchment and digging a deeper hole.” As profit and loss accounts will take a hit, he said: “It is much better to keep your market share, keep your loyal workers with you, taking a price cut.” Referring to the external sector, the Minister admitted: “There is pressure on the rupee but once the flow is reversed, as we believe it will, it is quite possible that the rupee will climb upwards.” “At the moment, there is a huge demand for dollars mainly coming from oil companies and others who have to meet the payment obligations. But it is quite possible that in a month or two that the direction of flows can reverse and the rupee will settle at a appropriate level,” he said. Pointing out that this was not the first time that industrialised countries are going through recession, Chidambaram said: “This recession, of course, threatens to be a longer and deeper recession affecting more industrialised countries and we, in India, are experiencing the spillover effects of what is happening in the advanced countries.” The Finance Minister said: “We are not the cause of the problem, but we are being invited to be a part of the solution to the problem.” As regards India, he said: “The monsoon has been good. Farmers are busy with their work, they don’t look at the Sensex, or the Nifty, everyday. We will have a very substantial bumper crop.” The services sector is mainly driven by millions of small and medium enterprises, he said, adding: “They are facing some liquidity problem. We are determined to ensure that they are provided adequate liquidity so that they can carry on their work, their business until we tide over the crisis”. Pointing out that financial sector and large industries are indeed facing problems, he said: “We are extremely vigilant. We have been proactive. In fact, in the last 60 days both the government and the RBI have moved swiftly to take steps that will ensure adequate liquidity for industry.” However, he added that providing more liquidity alone was not enough. “Providing liquidity is only the first step. The second is ensuring appropriate price and the third step is ensuring that credit is actually delivered to industry, these are not insurmountable problems,” he said. Source: LatestNews-Home - Livemint.com | 18 Nov 2008 | 9:34 am Industry bodies say lower prices possible, ‘no’ say companiesNew Delhi: Industry chambers have promised lower prices of manufactured goods after a call from Finance Minister P. Chidambaram, but individual companies didn’t have to think twice before ruling out such a proposition. Instead, auto makers and real estate companies asked the government to make credit available to customers at cheaper rates. “This (two-wheeler) industry has a margin of about 4-5 per cent only and in the near future we do not see any price cuts,” company Chairman Rahul Bajaj told reporters here. “Minimum wages are increasing, fuel price has increased and electricity prices have also increased, so how do we bring down the prices of our products?” asked Brij Mohan Lall Munjal, Chairman of Hero Honda Motors, one of the country’s largest two-wheeler maker. They also accused public and private sector banks of not lending to potential buyers of two-wheelers. Realty leader DLF’s complaint was identical: “There are no takers for housing. Ideally, interest rate should be around 7%.” Their reaction was far removed from the industry’s. “I am sure you will find newer set of prices in most product categories,” CII president K.V. Kamath said, after his meeting with Chidambaram, while Assocham Secretary General D S Rawat said: “Industry leaders will positively respond to the call given by the Finance Minister.” “Hotels must cut tariffs, airlines must cut prices, real estate must cut rates of apartments and homes they sell, car makers and two-wheeler makers must cut prices,” Chidambaram said earlier, adding it was better than allowing inventories to build up, lay off workers and digging a deeper hole. Source: LatestNews-Home - Livemint.com | 18 Nov 2008 | 9:32 am ONGC wins 2 exploration blocks in ColombiaMumbai: Indian state-run energy firm Oil & Natural Gas Corp said on Tuesday its wholly owned unit ONGC Videsh Ltd had won two exploration blocks in Colombia. ONGC, which accounts for over 78% of India’s oil and gas production, said the two blocks were located in the Llanos Basin and Sinu San Jacinto Basin. ONGC Videsh will hold 100% interest in the Llanos basin block and 50% in the other block. Source: LatestNews-Home - Livemint.com | 18 Nov 2008 | 9:28 am SMSes to guide people on traffic congestionNew Delhi: To ensure smooth traffic on roads, the Delhi Police has decided to launch a campaign guiding people about traffic congestion and educate them about road laws. The campaigning will be launched through SMSes, television and radio, asking people to avoid certain routes where congestion is reported. Traffic rules and regulations will be publicised through banners, hoardings, advertisements in newspapers and televisions, among other means. “The exercise is an attempt to provide a hassle free journey to the people on city roads,” Joint Commissioner of Police (Traffic) S N Shrivastava said. A slew of measures are also being taken to ensure smooth traffic before, during and after the 2010 Commonwealth Games. “There will be a huge traffic during the Games. Lots of people will be coming here. A sudden increase in the number of vehicles can lead to serious problems. Considering which we are planning a road-map as to how we can minimise the usage of private vehicles,” he said. Police is also encouraging people to use public transport than commuting through their own vehicle. This will also be conveyed by SMSes. “Sending SMSes come easy as most of the people have mobile phones these days. They can read it as per their convenience. People should avoid the use of private vehicles and use Metro or chartered buses instead,” Shrivastava said. Delhi Police has also installed state-of-the-art modern control room to regulate traffic and nab violators. “We already have intelligent traffic software system in place, which helps us maintain traffic,” he said. It has also added extra lines to the traffic helpline. “People can actually report traffic jam by calling at our helpline and request for help. They can ask for traffic congestion related queries and report any incident. Soon we plan to extend it through SMSes also,” Shrivastava said. Though, the traffic helpline is operational for long, the department has yet not received much response on it. “The SMS campaign is to aware people about our initiatives. We expect a better response out of our efforts,” he added. From Our Archives From the web Related Articles Source: Tech News - Livemint.com | 18 Nov 2008 | 9:11 am Government aid to boost biotech RDFunds for research and development have become difficult to find and so the government is stepping in to partner with the biotech industry on a cost sharing basis to boost research.Source: Moneycontrol Top Headlines | 18 Nov 2008 | 9:10 am FMCG cos to maintain prices as input costs fallCommodity prices have fallen in the last couple of months, from their record highs. One of the biggest beneficiaries are personal care companies, because their input costs have also correspondingly dropped. But its learnt that none of the companies plan to cut prices.Source: Moneycontrol Top Headlines | 18 Nov 2008 | 9:04 am DLF freezes projects, fires staff; wants interest rate at 7%New Delhi: The liquidity squeeze-induced slump in demand has forced real estate leader DLF to fire some employees, put a number of hotel and housing projects on hold and yearn for 7% home loan rates. “We must have laid off some employees somewhere,” DLF Chairman K.P. Singh said on the sidelines of India Economic Summit, but did not give the number of jobs that were cut. The company has also deferred some of its projects due to poor demand. “In hotels, residential and commercial everywhere, deferred because of lower demand and liquidity crisis,” he said without sharing the specifics. Singh also said that high interest rates have taken a toll on demand. “There are no takers for housing sector. Ideally, the interest rate should be around 7%,” he said. Asked if the current prices of the realty projects are inflationary, Singh denied and said: “It cannot be inflationary as it has to be competitive. It also depends on supply and demand.” “Because of demand going down, many projects have been closed down by many developers across the country,” he added. Source: Home - Livemint.com | 18 Nov 2008 | 8:59 am Chidambaram to brief media after RBI chief meetNEW DELHI (Reuters) - Finance Minister Palaniappan Chidambaram said he would brief the media later on Tuesday, but did say whether he had any announcements to make.Source: Reuters: Money News | 18 Nov 2008 | 8:27 am Govt to take steps to stimulate economy - ChidambaramNEW DELHI (Reuters) - The government will take steps to stimulate the economy to offset the impact of the global economic slowdown, the finance minister said, adding he expected to end the fiscal year with decent growth.Source: Reuters: Money News | 18 Nov 2008 | 8:26 am Yahoo! CEO Jerry Yang to step downNew York: Jerry Yang, the co-founder of Yahoo! will step down as the chief executive of the internet giant, ending a 17-month long turbulent tenure which saw him rejecting a takeover bid from Microsoft. Yang’s decision to step down follows months of criticism from various quarters on a range of issues including his move to shun Microsoft’s $47.5-billion buyout offer. “Jerry and the Board have had an ongoing dialogue about succession timing, and we all agree that now is the right time to make the transition to a new CEO who can take the company to the next level,” Yahoo! Chairman Roy Bostock said in a statement on Monday. However, the 40-year old Yang would return to his “former role as Chief Yahoo!” - the position for corporate strategy - once the successor is appointed, and would continue in the company’s board. Both external and internal candidates are being looked for replacing Yang. In addition to the Microsoft takeover fiasco, Yahoo!’s much talked about advertisement deal with search engine major Google also fell through, after the latter pulled out citing regulatory hurdles. Yang in a complete turnaround recently said that merger talks with Microsoft should resume. Moreover, Yahoo!’s talks with Time Warner’s AOL did not materialise. Source: Tech News - Livemint.com | 18 Nov 2008 | 7:51 am Suzuki buys back remaining 3% stake from GMTokyo: Suzuki Motor Corp. has said that it has bought back about 3% stake in the company from cash—strapped General Motors for about $231 million as the troubled US automaker ended its 27-year investment in the Japanese company to raise funds to avert bankruptcy. The company said that it has bought back all the 16,413,000 Suzuki shares from GM for ¥1,363 per share, the same price of the stock’s closing quote on Monday, through off-hours trading on the Tokyo Stock Exchange. With the buyback, Suzuki now owns about a 20% of its own outstanding shares, Kyodo news agency reported. “There will be no impact on Suzukis current business plan,” Osamu Suzuki, Chairman and CEO, Suzuki Motor Corp. said in a statement yesterday, indicating that they will cooperate to jointly develop environmentally friendly cars. “As GM taking this particular step to sell the shares it owns as a step toward strengthening its balance sheet is very understandable, we wanted to support GM’s decision,” Suzuki had said. With the stock sale, GM now owns no stake in any Japanese automaker as it already sold its entire stake in Isuzu Motors Ltd. and Fuji Heavy Industries Ltd. in recent years amid deteriorating earnings. In 1981, Suzuki and GM entered a capital tie-up when GM acquired a 5.3% stake in the Japanese car-maker known for its compact cars. The stake was bolstered to 20% in 2000 but in 2006, GM reduced its stake in Suzuki to 3% as part of its restructuring programme. Amid the worst economic crisis in the US, GM, one of the Big Three automakers in America, has lost more than $70 billion since 2004. The Detroit-based company lost over $20 billion this year and is seeking a federal bailout. Source: World Business - Livemint.com | 18 Nov 2008 | 7:28 am New Intel chip faster, matches some AMD featuresSan Francisco: Intel Corp began selling its new Core i7 processor on Monday, finally matching the lower power consumption and ability to handle multiple tasks offered by smaller competitor Advanced Micro Devices. Intel is already one year ahead of AMD in offering chips with 45 nanometer features that improve efficiency and power consumption, but in some ways the Core i7 is playing catch-up to AMD. A nanometer is a measure of the circuitry inside the chip. The new Intel chip, formerly code-named “Nehalem,” has four processing cores on a single piece of silicon and automatically cuts down power usage when the chip is doing less - both features that AMD has boasted. Until now, AMD has argued that Intel strapped together two separate double cores and called them a quad core, while AMD has had a true quad core. Each of the Intel chip’s four cores can handle two different “threads,” or processes, at once. The new features translate into improved speed for such calculation-intense operations as video editing and games, without using more power, Intel said. Analysts say these features are available with AMD’s new Shanghai chip, but note that it serves only the thinnest slice of the market at the high end. AMD buyers must wait until next year to get the consumer version for desktops. Intel took the opposite approach, offering its desktop version first. That will be followed over the next year by versions for laptops at the low end and servers at the high end. The power-saving process will mean more battery life for the laptop version and more performance and less heat for servers, where computer centers spend huge amounts of money for air conditioning. Intel spokesman Bill Calder said later versions will shrink the chip further from the 45 nanometer process to the 32 nanometer process. AMD plans to shrink its chips to 32 nanometers in late 2010, with versions in production in 2011. Semiconductors are multilayer sandwiches, with the silicon alternating with metal. They are called semiconductors because the silicon layer can either conduct or not, acting as a tiny switch to turn a circuit on and off. This happens separately for 731 million separate switches, or transistors, in the Core i7. Intel sells about 80% of the chips that run the world’s 1 billion personal computers, while AMD makes virtually all the rest. Source: Tech News - Livemint.com | 18 Nov 2008 | 7:28 am ICICI Bank sees interest rates coming downNEW DELHI (Reuters) - India's second-largest lender, ICICI Bank Ltd, sees interest rates coming down soon, its chief executive said on Tuesday.Source: Reuters: Money News | 18 Nov 2008 | 7:20 am Kodak sues Samsung, LG over camera patentsRochester: Eastman Kodak Co. said on Monday it is suing South Korea’s Samsung Electronics Co. and LG Electronics Inc. for infringing various digital-camera patents it obtained between 1993 and 2001. The photography products company alleges that camera phones made by the Seoul-based electronics companies and their US subsidiaries violate patents on its inventions related to image capture, compression and data storage, and a method for previewing motion images. The lawsuit filed in federal court in Rochester seeks unspecified monetary damages. Kodak also lodged a complaint with the International Trade Commission in Washington, a move designed to stop importation of products made with the disputed technology. “We’ve held discussions with both companies in an attempt to resolve this issue and have not been able to reach a satisfactory agreement,” said Laura Quatela, Kodak’s chief intellectual property officer. “Consequently, we must take this legal action.” The dispute centers on patents issued in 1993, 1997 and 2001, Kodak spokesman David Lanzillo said. Kodak has licensed its imaging patents to various technology companies including Panasonic Corp., Motorola Inc., Nokia Corp., Olympus Corp. and Sony Corp. In January 2007, Kodak ended a long-standing patent dispute with Sony over digital-camera inventions dating back to 1987 and entered a cross-licensing deal giving the companies access to each other’s patents. Kodak had alleged in a 2004 lawsuit that Sony infringed on 10 patents for digital camera patents issued from 1987 to 2003 involving digital and video technologies such as image compression and digital storage. Kodak has amassed more than 1,000 digital-imaging patents and almost all of today’s digital cameras rely on that technology. Source: Tech News - Livemint.com | 18 Nov 2008 | 6:51 am HSBC to cut 500 jobs in Asia as slump takes tollHong Kong: HSBC Holdings PLC, Europe’s largest bank by market value, plans to cut 500 jobs in Asia due to the global economic slump. The cuts will be made in various parts of the business, including back office functions, with about 450 jobs in Hong Kong to be shed, the London-based lender announced to employees on Monday. The bank decided to trim its work force because of “organizational changes in a number of areas as well as the deteriorating economic conditions and our cautious outlook for 2009,” Peter Wong, an executive director for Hong Kong and China, said in an internal message released by the bank. “In this day and age no guarantees of job security can be given,” he said. In September, the bank announced 1,100 job cuts worldwide in the wake of the financial turmoil. HSBC has been hit hard by the financial crisis. The bank was forced to write down the value of its assets by $4.9 billion in the third quarter, as the cost of bad loans in the US continued to mount and the credit market faltered. Source: Home - Livemint.com | 18 Nov 2008 | 6:08 am Democrats push for $25 bn US automakers bailoutWashington: US Senate Democrats took the first step toward bailing out the nation’s crippled auto industry on Monday by proposing a $25 billion loan program, a plan that faces stiff political headwinds with millions of jobs potentially riding on the outcome. With the year’s congressional calendar down to a few days, lawmakers and the Bush administration sparred over the best way to extend help to General Motors Corp, Ford Motor Co and Chrysler LLC. “We’re surprised that Senate Democrats would propose a bailout that fails to require automakers to make the hard decisions needed to restructure and become viable,” White House spokeswoman Dana Perino said. The Senate bill would, however, impose conditions. The government would take warrants for shares in exchange for aid, which would come with limits on executive compensation and a prohibition on the payment of dividends. Automakers would also have to submit plans on how they intend to remain competitive, pummeled by plunging sales, little access to credit and a weakening economy. Executives from the three companies are expected to amplify their calls for help at congressional hearings beginning on Tuesday. Carl Levin of Michigan, the plan’s chief advocate in the Senate, said the proposal to amend the Treasury Department’s existing $700 billion rescue plan for financial services firms is the most efficient way to help auto manufacturers. House Democratic leaders, led by House Financial Services Committee Chairman Barney Frank, released a draft of almost identical legislation later on Monday. But the White House and many Republicans favor amending another law - one approved in September to extend automakers $25 billion in technology loans to retool factories and make more fuel efficient cars. Market fears A rescue package for US automakers could avert another stock market plunge like the one seen after Lehman Brothers’ collapse in September. “The reason people think failure could be cataclysmic is that there are so many companies that are tied to the auto industry,” said Marc Pado, US market strategist at Cantor Fitzgerald & Co in San Francisco. The Senate proposal comes as GM said it would delay incentive payments to its US dealers by two weeks in an effort to “gain some cash liquidity” for the fourth quarter. The payments for dealer incentives, which are made on a weekly basis, will be delayed from 28 November until 11 December, GM spokesman Pete Ternes said. Liquidity is the key concern for the automakers as their remaining cash reserves dwindle. The companies and their allies in Congress argue a bailout is justified on grounds they back one in 10 US jobs. GM, Chrysler and Ford employ close to 250,000 people in the United States and supporters claim they touch more than 4 million other jobs including suppliers, dealers, car haulers and rental companies. Many parts suppliers and dealers have agreements with transplanted automakers as well, potentially interrupting the business of competitors to the Big Three in the short term. A potential threat to the integrated supplier network prompted Japan’s Honda Motor Co Ltd to support an aid package for its US. Bailout skepticism But segments of the public disagree that a rescue is in order. In interviews, Americans said the planned rescue was unfair and would make it harder to reform the US automakers. US automakers say they are urgently trying to overhaul their businesses to meet a global demand for fuel efficient products, like better performing gasoline engines, electric cars and more hybrids. But industry executives say they may never get there unless the bailout is approved. They add that the shock of any collapse will shake the economy. All three companies have rejected reorganizing under bankruptcy protection. For the Senate measure to pass, it must gain support from both Democrats and Republicans in the narrowly divided chamber where 60 votes are needed to overcome any procedural hurdles. Aides and lawmakers have expressed doubt about the Democratic effort with so little time and White House opposition. Source: Home - Livemint.com | 18 Nov 2008 | 4:43 am Wall Street tumbles as G20 fails to allay fearsNew York: US stocks fell heavily in a tug of war session between bulls and bears after the Group of 20 weekend economic summit failed to calm investor fears and global recession worries intensified. The Dow Jones Industrial Average dropped 223.73 points (2.63%) to close at 8,273.58 and the Nasdaq fell 34.80 points (2.29%) to 1,482.05 on Monday. The broad Standard & Poor’s 500 index declined 22.54 points (2.58%) to end at 850.75. Trading remained nervous as markets reacted to news that Japan had joined the eurozone in recession and more forecasts said the US economy was likely headed for the same fate. A series of rally attempts failed to hold and selling accelerated late in the day. “Wall Street, as well as Main Street, continues to suffer from a massive lack of confidence,” said Fred Dickson, market strategist at DA Davidson & Co. The market found little to cheer about from the G20 summit statement in which the economic powers pledged to work together to steady markets and the economy. Source: Home - Livemint.com | 18 Nov 2008 | 4:12 am US Treasury pays $33.56 bn to 21 banksWashington: The government said on Monday it has supplied $33.56 billion to 21 banks in a second round of payments from the $700 billion rescue program. The Treasury Department confirmed the second round of government stock purchases designed to bolster the balance sheets of the nation’s banks to combat the worst financial crisis in more than seven decades. The new payments follow an initial $125 billion designated for nine of the country’s biggest banks. The rescue program has earmarked payments of $158.56 billion with officials working to get more payments out to banks in coming weeks. Treasury Secretary Henry Paulson announced last week the administration was abandoning the initial centerpiece of the rescue program, the purchase of troubled mortgage-backed securities from banks in an effort to bolster their balance sheets. That was the only program Paulson mentioned as Congress debated the rescue package, which was approved on 3 October. However, Paulson said that the severity of the financial crisis made him realize it would take too long to get the troubled asset program into operation. In its place, he announced on 14 October that the government would buy shares of bank stock as a way to inject fresh capital into the institutions quickly. He pressured nine of the largest banks to participate in the program during an 13 October meeting at the Treasury Department, arguing that these institutions should go along with the idea in order to remove the stigma other banks might feel in getting money from the government. The rescue program has drawn a significant amount of criticism from lawmakers who have objected to the sudden switch in emphasis, what they see as a lack of restrictions on the funds, which means banks can simply hoard the fresh capital or use it to pay dividends to their shareholders or acquire other institutions rather than using it to boost their lending. Paulson and Federal Reserve Chairman Ben Bernanke were scheduled to testify before the House Financial Services Committee on Tuesday to answer questions that have been raised about the bailout program. The Treasury announcement on Monday said the largest stock purchase in the second round was $6.6 billion paid to US Bancorp of Minneapolis. The smallest stock purchase in the second round was $9 million paid to Broadway Financial Corp. of Los Angeles. Many of the banks in the second group of 21 had already announced that the government was purchasing stock once they had reached preliminary agreements. Treasury does not make any announcement until after the final legal documents are signed, a process that can take a month from when the preliminary agreements are reached. The deadline for banks with publicly traded stock to apply for funds was Friday. However, Treasury has said it will extend the application period for some 6,000 banks which do not have publicly trade stock because Treasury is still working on a modified application form for these institutions. The Treasury noted that the $10 billion scheduled to be paid to Merrill Lynch & Co. has been deferred pending the completion of that company’s merger with Bank of America Corp. Source: Home - Livemint.com | 18 Nov 2008 | 3:51 am Asia stocks drop as bank job cuts hit moodHong Kong: Asian stocks fell on Tuesday after Citigroup cut 52,000 jobs in a dramatic move to save itself and downbeat policymaker comments reflected worsening economic conditions that will unlikely improve until well into 2009. Despite relatively stable conditions in short-term credit markets, banks were struggling to contain climbing losses on bad loans, with Citi, the second-largest US bank, reducing 15% of its workforce and HSBC laying off an additional 500 staff in Asia after announcing 1,100 job cuts in September. “Investors find it hard to invest in the financial sector unless signs emerge that the global economy has started to improve,” said Kazuhiro Takahashi, general manager of the equity marketing department at Daiwa Securities SMBC in Tokyo. Rising unemployment is a painful reminder of how the brutal trend of slashing away risk in investor and institutional portfolios, which has been a key factor in erasing about $7 trillion from global equity market cap so far this year, has far-reaching consequences beyond just financial markets. Meanwhile, the South Korean won was on track for a sixth straight day of losses against the US dollar, which held broadly firm as investors continued to seek safety in the world’s foremost reserve currency. Concern over financials Asia-Pacific stocks outside of Japan fell 1.85%, bringing year-to-date losses to around 58%, according to an MSCI index. Asia’s losses have outpaced the all-country world index, which is down 47.5% in 2008. Japan’s Nikkei share average was down 1%, led by Softbank Corp, the country’s third-biggest mobile phone operator. Shares of Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, were down 2.7% after Citigroup’s massive layoffs reignited fears about the financial industry’s stability. Hong Kong’s Hang Seng index dropped 1.9%, with Hong Kong Exchanges & Clearing stock the biggest percentage decliner for a second day, off 5.5%. Falling 2009 economic growth expectations have been feeding through to financial and commodity markets, as investors price in much slower demand next year. Indeed, Japan’s Economics Minister Kaoru Yosano said it was hard to expect the world’s No. 2 economy to log positive growth in the next fiscal year starting in April. However, some large investors have cautiously begun to look for value amid the wreckage. Bob Doll, global chief investment officer of equities at BlackRock Inc, noted the dividend yield on the US S&P 500 index last week was higher than the yield on the 10-year US Treasury note - the first time that has happened in nearly 50 years. Selective buying Despite the very selective buying in some markets, most investors were still locked into recession trades, one of which has been to buy yen. The yen remained underpinned by risk aversion on Tuesday as Tokyo shares slipped following a fall in US stocks on deepening concerns about a global recession. The US dollar was little changed at 96.46 yen, while the euro slipped 0.1% to 121.90 yen. The euro eased 0.1% to $1.2642. The Korean won was quoted at 1,414.9/6.1 per US dollar, down from Monday’s domestic close of 1,409.0. The South Korean currency has lost more than a third of its value against the dollar this year on expectations global economic turmoil would worsen the country’s international balance of payments and economic growth. Two-year Japanese government bond yields hit an eight-month low on Tuesday following a dip in JGB repo rates this week and on market expectations for the Bank of Japan to keep interest rates low in coming months. The BOJ is seen likely to keep interest rates steady at 0.3% at a two-day policy meeting ending on Friday, but analysts say speculation of a possible rate cut in coming months may grow if economic conditions deteriorate further. Source: Home - Livemint.com | 18 Nov 2008 | 3:40 am Oil inches above $55, global economy fears weighSingapore: Oil edged above $55 a barrel on Tuesday after settling at its lowest in nearly 22 months, as fears mounted that the worsening global economic slump is trimming fuel demand further. Japan became the latest major economy to fall into recession and Citigroup said it would cut 52,000 jobs, one of history’s largest layoffs. US light crude for December delivery rose 16 cents to $55.11 a barrel at 4:40pm (IST) after settling at the lowest level since 29 January, 2007 in the previous session. London Brent crude was untraded at the same time. US crude has plummetted more than 60% from its July record above $147 a barrel as the credit crisis has hit the real economy and limited fuel use in top consumers such as the United States. Japan’s Nikkei share average slid 1.3% on Tuesday, dented by Wall Street losses overnight. And China became a net diesel exporter in October for the first time since August 2007 and remained a net gasoline exporter for a second month, as heavy inventories and higher refinery output lessened import needs. That bodes ill for the global refining industry, which had counted on China’s appetite for fuel stockpiling in the months leading to the August Olympics to pick up the slack left by a worldwide economic and consumption slump. Mexico reopened the oil exporting port of Coatzacoalcos on Monday after bad weather had shut them, but the Dos Bocas port was still closed. The Organization of the Petroleum Exporting Countries cut its 2009 global demand forecast, adding to signs the producer group could cut production further to stem the oil price drop. Opec’s Secretary General Abdullah al-Badri said it was too early to say whether the producer group needed to cut output when it meets this month in Cairo. Opec, source of more than a third of the world’s oil, has not yet called a full-blown policy meeting for the Cairo gathering on 29 November. Ministers were set to meet informally on the sidelines of an annual gathering of Arab oil ministers. Since early September Opec has agreed to remove around 2 million barrels per day from oil markets, and several Opec members want more cuts. Iran is calling for another 1 million to 1.5 million bpd in output cuts. Looking to data on Wednesday, a preliminary Reuters poll showed U. crude inventories rose last week as refinery utilisation held steady and imports rebounded. Crude inventories probably rose by 900,000 barrels. Source: Home - Livemint.com | 18 Nov 2008 | 3:27 am Allow foreign airlines to pick up stake in domestic carriers: MallyaNew Delhi/Bangalore, Nov. 17 The Chairman of Kingfisher Airlines, Mr Vijay Mallya has “requested” the Government to allow foreign airlines to pick up a minority stake in domesticSource: Business Line - Home Page | 18 Nov 2008 | 12:00 am Cooking oil may turn costlier if customs duty is hikedMumbai, Nov. 17 Despite the Government’s recent rejection of the vegetable oil industry’s demand for re-imposition of customs duty on imported oils, efforts have once again begun to lobby for the same cause. At the all-India kharifSource: Business Line - Home Page | 18 Nov 2008 | 12:00 am CANDU’s vendor eyes Indian nuclear marketNew Delhi, Nov. 17 Atomic Energy of Canada Ltd — the Canadian state-owned corporation which is the vendor for the ‘CANDU’ technology — is planning to re-enter the Indian market after a 34-years hiatus.Source: Business Line - Home Page | 18 Nov 2008 | 12:00 am Day Trading GuideSource: Business Line - Home Page | 18 Nov 2008 | 12:00 am Slash of risk weights to have limited impactThe Reserve Bank of India’s move to reduce risk weights attached to commercial real estate lending and reduce the provisioning requirements for home loans signals the beginning of a reversal in the hawkish stand of the central bank, takenSource: Business Line - Home Page | 18 Nov 2008 | 12:00 am The industrial recession: New or ongoing?The industrial slowdown is now accepted as fact by most policymakers and observers of the Indian economy. Yet officials and commentators seem to blame it on external factors: most obviously, the global financial crisis originating in the US economy,Source: Business Line - Home Page | 18 Nov 2008 | 12:00 am Cummins India (Rs 216.75): SellWe recommend a sell in Cummins India from a short-term perspective. It is apparent from the charts of Cummins that after recording a 52-week low of Rs 192 in late October, the stock rallied up to Rs 254. However, the stock witnessed resistance atSource: Business Line - Home Page | 18 Nov 2008 | 12:00 am PSU banks aim for aggressive passenger vehicle loan growthDespite the economic slowdown, the major public sector banks expect loans for purchase of cars and other passenger vehicles to grow 20-25 per cent in the currentSource: Business Line - Home Page | 18 Nov 2008 | 12:00 am Govt looking at measures to sustain export growthNew Delhi, Nov. 17 The Government may come up with a slew of measures to sustain the current export growth on the back of apprehensions that the global economic slowdown may see India miss the export target of $200 billion set for the currentSource: Business Line - Home Page | 18 Nov 2008 | 12:00 am G-20 summit: No happy endingThe eagerly anticipated G-20 meeting that was to have solved much, if not all, of the world’s problems has happened, with leaders of the 20 nations and international financial institutions all good intent about working together to restoreSource: Business Line - Home Page | 18 Nov 2008 | 12:00 am Stock market returns hardly influenced by economic growth Is this rate of return the result of the scintillating performance of the Indian economy over the last few years? That’s difficult to say, when you look at the other emerging markets that have annualized historical returns far exceeding those from MSCI India over the past 10 years. Also Read Spot the tigers (Graphic) At the top of the list is Turkey, a country nobody has labelled an emerging tiger. But Turkey’s returns over the last five years are lower than India’s, so perhaps economic growth does matter after all. Or does it? MSCI Colombia and MSCI Egypt are next in line after Turkey with the highest annualized 10-year returns. What’s more, they also have five-year annualized returns well above MSCI India’s. Why, even lowly Pakistan, forced to knock on the International Monetary Fund’s (IMF) door for a loan to prevent the country from defaulting on its debt, has a 10-year annualized return of 15.15% on its MSCI index and a respectable annual return of 11.17%, not too much below India’s, over the past five years. Argentina, a country that defaulted on an IMF loan, has an annualized return of 13.67% over the last 10 years on its MSCI index. What about China, the biggest tiger of them all? The 10-year annualized return on MSCI China is one of the lowest, at 0.24% and the five-year return is 10.95%, below Pakistan’s. MSCI Hong Kong is flat over the last 10 years and negative over five years. Among the developed countries, the MSCI index for Canada tops the list on the last 10 years’ annual returns, with a return of 4.91%, followed by widely derided socialistic Denmark, with a return of 4.4%. If you had put money in the MSCI World index 10 years ago, you would have lost 2.09% per annum. The data underlines the fact that economic growth is only one of the myriad factors affecting the stock market and there’s a rather tenuous relationship between economic growth and market returns. Graphic by Ahmed Raza Khan / Mint Source: Home - Livemint.com | 17 Nov 2008 | 7:42 pm Citi lowers India's economic growth rate to 6.8%Global financial major Citigroup has lowered India's economic growth rate projection to 6.8 per cent from 7.2 per cent for this fiscal due to slowdown in consumption and investment.Source: Business Standard | Front Page Headlines | 17 Nov 2008 | 6:58 pm Japan's economy slides into recessionJapan's economy, the world's second largest, entered its first recession since 2001 last quarter and the government and economists say conditions may get even worse.Source: Business Standard | Front Page Headlines | 17 Nov 2008 | 6:58 pm Unitech puts Gurgaon hotel up for saleUnitech Ltd, the countrys second largest real estate firm, has decided to sell its 200-room budget hotel Courtyard by Marriott in Gurgaon ahead of its inauguration in January 2009.??IndustrySource: Business Standard | Front Page Headlines | 17 Nov 2008 | 6:57 pm Air India to get $1 bn for aircraft fundingJet Airways might bag Rs 500 crore.Source: Business Standard | Front Page Headlines | 17 Nov 2008 | 6:54 pm Microsoft Corp launches Windows HPC Server 2008Bangalore: Microsoft Corporation India on Monday launched the Release-to-Manufacture of Windows HPC server 2008, its latest offering in the high performance computing segment. With this, Windows HPC Server 2008 will be available to independent software vendors and computer manufacturers for final distribution, a release said. Windows HPC server 2008 provides an easy-to-deploy cost-effective and scalable high-performance computing solution-which combines the power of Windows server platform with rich,out-of-the-box functionality to help enhance productivity and reduce complexity of any given HPC environment. Source: Tech News - Livemint.com | 17 Nov 2008 | 1:21 pm Citigroup chairman doesn’t deny job cuts are nearBy AP Dubai: Citigroup Inc.’s chairman hinted Monday the banking giant will announce more job cuts later in the day, and didn’t rule out the possibility executives will follow peers at Goldman Sachs Group Inc. and forgo bonuses. Various reports have suggested Citi may be looking to shed thousands more jobs through layoffs and attrition. Speaking briefly to The Associated Press in Dubai on Monday, chairman Winfried Bischoff said the company will make an announcement about its plans at 9 a.m. New York time, an hour after a town-hall meeting for employees is scheduled. He did not deny that job cuts are coming but declined to comment further. Bischoff’s comments came shortly after he told attendees at the Leaders in Dubai Business Forum that it would be irresponsible for Citi and other companies not to look at staffing needs in the event of a prolonged economic downturn. “What all of us have done and perhaps injudiciously we’ve added a lot of people over ... this very benign period,” he said. “If there is a reversion to the mean ... those job losses will obviously fall particularly heavily on the financial sector,” he added. “Certainly they will fall particularly heavily on London and New York.” Some reports have suggested Citi could be eyeing cutbacks of up to 10 % of its work force. Bischoff said the company loses about 8% of its employees annually through natural turnover. In his comments to the AP, Bischoff did not rule out the likelihood that Citi’s leaders would go without bonuses this year, a move that would effectively amount to a substantial pay cut for the company’s executives. “Watch this space,” he said when asked about lost bonuses. Goldman Sachs put pressure on other Wall Street firms to reconsider 2008 bonus packages when it said Sunday that CEO Lloyd Blankfein and six other top executives will not get cash or stock bonuses this year. Source: World Business - Livemint.com | 17 Nov 2008 | 12:52 pm
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