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Banks cautious in lending to SMEs: Sajjan JindalJSW Steel Vice Chairman and Managing Director Sajjan Jindal said that there is a crisis of confidence and banks are cautious in lending to the SME sector. Jindal said that they have discussed the issue of review of taxes a special onetime concession, is needed, he said.Source: Moneycontrol Top Headlines | 20 Nov 2008 | 2:17 pm Demand slowdown in auto to go on till FY09 end: ALLAshok Leyland said demand slowdown will continue till Marchend and so the auto sector continues to be unpredictable, reports CNBCTV18, quoting Newswire 18. Inventory is expected to be back to normal in a couple of weeks, while the company aims to bring inventory down to a 1month level, the report said.Source: Moneycontrol Top Headlines | 20 Nov 2008 | 2:08 pm Asian markets slide as economic blues!Asian stocks tumbled on Thursday as global economic gloom deepened following a plunge in Japanese exports and a warning from the Federal Reserve that the United States could be in recession next year.Source: Zee News : Business | 20 Nov 2008 | 12:35 pm LA auto show: $2.63mn order for Indians !24 Indian exhibitors at the just concluded Automotive Aftermarket Show in Las Vegas got orders worth USD 2.63 million and expect another USD 8 million of orders soon.Source: Zee News : Business | 20 Nov 2008 | 12:35 pm Oil falls below USD53 on fears of recession!Oil prices fell below USD 53 to almost a two-year low on Thursday in Asia as investors, egged on by plummeting stock markets, priced in lower crude demand from a global economic downturn that`s shaping up as the worst in decades.Source: Zee News : Business | 20 Nov 2008 | 12:35 pm 91 trade unionists were killed for defending workers` rights last year: Report!Ninety-one trade unionists were murdered for defending workers` rights last year, with Colombia and Guinea the worst offenders, according to a report released on Thursday by the International Trade Union Confederation.Source: Zee News : Business | 20 Nov 2008 | 12:35 pm US shares fall to five-year low!Wall Street hit levels not seen since 2003 today with the Dow Jones industrial average plunging below the 8,000 mark amid a dour economic outlook from the Federal Reserve and worries over the fate of Detroit`s three automakers.Source: Zee News : Business | 20 Nov 2008 | 12:35 pm Rupee sinks to record low of 50.50/dollar!The Indian rupee opened at a record low of 50.50 per dollar on Thursday as a sharp fall in Asian share prices raised worries of foreigners cutting local equity holdings and repatriating the funds.Source: Zee News : Business | 20 Nov 2008 | 12:35 pm Microsoft rules out new bid for Yahoo!Microsoft CEO Steve Ballmer has ruled out a new takeover bid for troubled web portal Yahoo.Source: Zee News : Business | 20 Nov 2008 | 12:35 pm Bears grip markets, Sensex sheds 370 points!Indian equities markets seemed headed for another day of bloodbath Thursday with benchmark BSE Sensex plunging over 370 points down just 45 minutes into trading on dismal global cues.Source: Zee News : Business | 20 Nov 2008 | 12:35 pm Large-scale job cuts in India unlikely: Cabinet SecretaryIndia is unlikely to see any large-scale job cuts as it has a strong domestic market to consume what it produces, Cabinet Secretary K M Chandrasekhar said.Source: Daily News & Analysis: Money News | 20 Nov 2008 | 11:44 am Microsoft rules out new takeover bid for YahooMicrosoft CEO Steve Ballmer on Wednesday ruled out a new takeover bid for troubled web portal YahooSource: Daily News & Analysis: Money News | 20 Nov 2008 | 11:41 am Sensex sheds over 322 pts, falls to 3-year low levelsMumbai: Amid reports of a weak overseas trend, the Bombay Stock Exchange benchmark Sensex tumbled to three-year lows by losing over 322 points on panic selling by investors and funds. In its seven-day-long falling streak, the Sensex, which had lost over 1,762 points in the last six trading sessions, fell further by 322.77 points at 8,451.01, a level last seen in November 2005, as stocks of realty, banking and metal segments recorded major losses. It touched the day’s low of 8,316.39 points. Similarly, the 50-share National Stock Exchange index Nifty also lost 81.85 points at 2,553.15 after touching the day’s low of 2,502.90 points. Marketmen said reports of deepening financial crisis in the US markets and the Japanese stocks falling below 8,000-point level mainly influenced the trading. Besides, the trading sentiment in the Asian region was also swayed by the US stock markets falling to the five-year low levels, they said. Selling pressure picked up as the Japan’s stock market fell below 8,000 points level and the US stocks closed at five-year low levels overnight. Heavy-weight stocks of ICICI Bank suffered heavy losses by falling by Rs27.35, or 7.87% at Rs320.35 Reliance Industries by Rs74.55, or 6.58% at Rs1,058.60 and Infosys Technologies by Rs44.75, or 3.82% at Rs1,127.25. All the three carry nearly 25% weightage on the Sensex. Source: Home - Livemint.com | 20 Nov 2008 | 11:37 am Maruti Suzuki India rules out price cutPTI Kolkata: The country’s leading automobile manufacturer, Maruti Suzuki India Ltd, will not reduce prices of its products to beat the recession, a company official said today. Maruti Suzuki India Managing Executive officer (production) M M Singh said that although commodity prices had come down, the company was still ‘struggling with (high) steel prices. “There are no plans to reduce prices at the moment,” Singh said. Maruti launched the ‘A-star´ model here targeting the A2 segment. Singh said that the one lakh units of the model would be exported to Europe, and 50,000 units would be sold in the domestic market. By the year 2010, Maruti plans to produce one million units from its two plants at Gurgaon and Manesar in Haryana. Source: LatestNews-Home - Livemint.com | 20 Nov 2008 | 11:33 am Cabinet approves packages to dispel farmers’ distressNew Delhi: In a bid to mitigate severe financial distress faced by farmers in various states, the government on Thursday decided to provide financial support of about Rs765 crore to implement programmes in suicide-prone districts as suggested by top farm scientist M S Swaminathan. The decision, taken by the Cabinet at a meeting chaired by Prime Minister Manmohan Singh, also includes financial support of Rs361.55 crore for promoting research on rubber, coffee, cardamom, pepper and tea, Minister of State in the PMO Prithviraj Chavan told reporters here. The M S Swaminathan Research Foundation’s recommendations on providing support for countervailing high price of copper fungicides and banana crop insurance were also approved for financial grants, he said. Following high level of distress among farmers and a spate of suicides, the government had in 2006 identified 36 districts in several states like Kerala, Andhra Pradesh, Karnataka and Maharashtra, and had decided to put in place a special plan of action for them. It had also decided to pay special focus on the tribal plantation farmers of Idukki district in Kerala. The Chennai-based Foundation was then assigned to study the problem and recommend measures to mitigate the agrarian distress among the Idukki farmers. The Cabinet also gave in-principle nod for need-based additional allocations to the ministries and departments concerned to implement measures included in the package, subject to norms and approval of authorities, he said. The Cabinet Committee on Economic Affairs today also approved the allocation of Rs2,276.65 crore to strengthen agricultural education during the 11th Plan period (2007-12). Source: LatestNews-Home - Livemint.com | 20 Nov 2008 | 11:28 am Foreign cos to get easy entry into IndiaPTI Jaipur: As it tries hard to attract investments in the face of the global economic slowdown, India today said it was relaxing documentation for foreigners to start a business in the country. Foreign companies no longer need to get their documents certified at the Indian embassy or high commission in their respective countries and new rules would shortly come into place. “New arrangement for certification and apostillisation under the Hague Convention is in place and will be announced soon”, Corporate Affairs Ministry Joint Secretary Jitesh Khosla said today. Apostillisation is the legalisation of a document for international use under the terms of the 1961 Hague Convention. Firms based in countries other than India till now have to get their documents and articles certified and apostillised by the Indian Embassy of their country. “Now they (foreign companies) don’t have to go to the Indian embassy for the purpose of certification of their articles ”, he said. However, he did not give the detailed procedure of the new arrangement and said that it would be out in public within a weak. The new idea to make the documentation easier or foreign companies is a consultative exercise between the companies and the Ministry of Corporate Affairs, he informed. Documents which have been notarised by a notary public, and certain other documents, and then certified with a conformant apostille are accepted for legal use in all the nations that have signed the Hague Convention. Source: LatestNews-Home - Livemint.com | 20 Nov 2008 | 11:28 am Dubai shopping spree stalls, retailers tighten beltsDUBAI (Reuters) - Some big Dubai retailers, accustomed to giddy spending in the Gulf Arab tax-free haven, are grappling with a drop in sales as consumers worry about the impact of the global financial crisis on their wallets.Source: Reuters: Money News | 20 Nov 2008 | 11:23 am Govt approves setting up of six sector-specific clustersPTI New Delhi: In a bid to improve the living and socio-economic conditions of the weavers and artisans, the government today approved setting up six sector-specific clusters with an estimated expenditure of Rs420 crore. While the handloom cluster would be set up at Varanasi in Uttar Pradesh and Sibsagar at Assam, the powerloom cluster would come up at Bhiwandi in Maharashtra and Erode in Tamil Nadu. For the development of handicrafts, clusters would be set up at Moradabad in Uttar Pradesh and Narasapur in Andhra Pradesh. Each cluster would be developed at an estimated cost of Rs70 crore, Minister of State in the Prime Minister’s Office Prithviraj Chavan told reporters after a meeting of Cabinet Committee on Economic Affairs (CCEA). “The comprehensive handicraft cluster development scheme would enhance the competitiveness of artisans in terms of access to technology, increased market share and ensure effective integration of scattered artisans,” he said. The setting up of clusters would benefit the handicraft, powerloom and handloom by providing them access to world class infrastructure to help them develop new designs, products while upgrading their skills to increase earnings and improve socio-economic conditions. The three scheme would be implemented through public-private-partnership model in the form of collaboration between central and state governments, beneficiary artisans and their groups and the financial institutions for a period of four years beginning from this fiscal. Source: LatestNews-Home - Livemint.com | 20 Nov 2008 | 11:21 am Govt approves modifications in Trade Marks BillPTI New Delhi: The government today approved modification in the Trade Marks (Amendment) Bill to ensure better protection for Indian trademarks abroad. “The amended bill will provide better protection to Indian trade marks in designated member countries and afford reciprocal protection to trade marks from member countries abroad,” Minister of State in the Prime Minister’s Office, Prithviraj Chavan told reporters after the meeting of Cabinet Committee on Economic Affairs. The changes in the legislation, he said, would also encourage transfer of technology through trade mark licensing and franchising and promote overall business confidence in Indian IPR system globally. The modification in the Trade Marks (Amendment) Bill, 2007 is based on the recommendations made by the Parliamentary Standing Committee on Commerce. The bill, the minister said, would be introduced in Parliament. The bill was introduced in Lok Sabha on 23 August,2007 and was referred to the Standing Committee for consideration. The committee, which had endorsed the proposal and objectives of the bill in general, presented its report to both Houses of Parliament in March. Source: LatestNews-Home - Livemint.com | 20 Nov 2008 | 11:15 am Glenmark Pharma receives marketing rights in the US - Economic Times
Source: Google News India - Business | 20 Nov 2008 | 11:13 am Maruti Suzuki India rules out price cut - Financial Express
Source: Google News India - Business | 20 Nov 2008 | 11:10 am Citi veteran Sanjay Nayar appointed CEO, KKR India - Times of India
Source: Google News India - Business | 20 Nov 2008 | 11:00 am Citi not to sell stake at current valuations: PolarisThere are reports, that suggest Citigroup plans to sell the 40% stake it holds of Polaris. Arun Jain, Chairman and CEO of Polaris clarified that there has been no talk with of any stake sale by Citigroup as of now. He feels Citigroup would not sell stake at the current valuations.Source: Moneycontrol Top Headlines | 20 Nov 2008 | 10:54 am India copper continues trading lower as demand fades - Reuters India
Source: Google News India - Business | 20 Nov 2008 | 10:53 am Rupee at record low, Rs50.40 against dollarMumbai: The rupee recovered from a record low Rsof 50.60 per dollar reached in early trade on Thursday, helped by heavy dollar selling by the Reserve Bank of India, dealers said. At 4:25pm the partially convertible rupee was at Rs50.00/02 per dollar, off a high of Rs49.94, and little changed from its close of Rs50.02/03 on Wednesday. Indian shares tumbled 3.7% on Thursday, taking the main stock index to its lowest close in more than three years, as jittery investors cut holdings as part of a broad sell-off in a worsening global economy. The rupee depreciated by another 38 paise against US dollar in early trade on increased capital outflows and strong demand for the US currency from importers amid weakening equity markets. Forex dealers said the domestic currency continued to remain under pressure in line with the weakening trends on the domestic bourses. They said even selling of dollars by banks also failed to check weakness in the rupee’s value. Meanwhile, the Indian benchmark BSE Sensex fell by over 322 points at points on Thursday. Source: Home - Livemint.com | 20 Nov 2008 | 10:52 am Tata Steel to treble profit margins at CorusWorld's sixth largest steel maker Tata Steel aims to treble profit margins at its European subsidiary Corus in over five years, notwithstanding the global economic downturnSource: Daily News & Analysis: Money News | 20 Nov 2008 | 10:38 am World shares to 5-1/2-year low on economic gloomLondon: World stocks dropped to 5-1/2-year lows and oil hit 22-month troughs as investors reacted to dire Federal Reserve warnings on the economy and fears about the viability of major US auto makers and bank giant Citigroup. Federal Reserve officials slashed economic growth forecasts through 2009, with the lower range of the Fed’s central tendencies forecasting the US economy could shrink by 0.2%. At least one among household names General Motors Corp, Ford Motor Co and Chrysler LLC is at risk of bankruptcy if a last-minute bail-out plan fails. The plight of US automakers highlighted the increasing damage which the world’s financial crisis is inflicting on the real economy. “We have contracting economic growth, falling corporate profits, and increasing unemployment which is filtering through to every part of the economy,” said Henk Potts, investment manager at Barclays Stockbrokers. The MSCI world equity index fell 2.3% to 197.90, its lowest since May 2003, driven lower in Asia after data showing Japan’s exports to Asia fell for the first time in six years. European shares also approached their lowest since June 2003, with the FTSEurofirst 300 index of leading European shares dropping 3%, following losses of 5% or more on Wall Street. European banks remained under pressure after Citigroup Inc faced a crisis of confidence on Wednesday as investors questioned the survival prospects of the US banking giant. Oil fell by more than $1 a barrel to 22-month lows at $52.49, as the slumping global economy hit demand. The two-year US Treasury yield hit a record low of 1.06% on expectations of a 50 basis point US rate cut to 0.50% next month. Euro zone government bond futures rose more than half a point to their highest since March 2006 at 120.36. The dollar dropped 0.77 percent to 95.20 against the safe-haven yen <JPY=>, but edged up against the euro to $1.2504 <EUR=>. Emerging markets suffered from falling commodity prices and global demand. The MSCI emerging equities index <.MSCIEF> dropped 4.55 percent to 467.32. Russian stocks on the MICEX exchange fell 7.5 percent <.MCX> before trading was suspended for an hour. (Additional reporting by Simon Falush and Atul Prakash; Editing by Toby Chopra) Source: LatestNews-Home - Livemint.com | 20 Nov 2008 | 10:37 am Sensex slips again; ICICI Bank, RCom decline - Economic Times
Source: Google News India - Business | 20 Nov 2008 | 10:35 am Government clears Rs.12 bn Idukki package to bring relief to farmersHopes have brightened for farmers in Kerala's hill district of Idukki, as the central government Thursday cleared the much-awaited Rs.12-billion package to give a huge boost to the crisis-stricken agriculture sector.Source: IndiaeNews.com: Business News | 20 Nov 2008 | 10:32 am Job losses mount as recession blues play onLONDON (Reuters) - Global economic misery spread on Thursday with the Federal Reserve predicting U.S. recession well into 2009, Japan's exports to Asia falling for the first time in six years and job losses mounting.Source: Reuters: Money News | 20 Nov 2008 | 10:31 am Assocham hails government steps, says demand picking upIndustry lobby, the Associated Chambers of Commerce and Industry of India (Assocham) is greatly appreciative of the steps taken by the government to inject liquidity into the system and said Thursday that as a result of these steps demand has already begun to pick up.Source: IndiaeNews.com: Business News | 20 Nov 2008 | 10:30 am Indian sugar futures rise but crushing weighs - Reuters India
Source: Google News India - Business | 20 Nov 2008 | 10:21 am Citi to use scalpel not axe in trimming Asia unitsHONG KONG/SINGAPORE (Reuters) - Citigroup is scrambling to slash costs in the face of collapsing investor confidence, but the embattled bank is unlikely to retreat from Asia, its strongest performing region.Source: Reuters: Money News | 20 Nov 2008 | 10:15 am BSE Sensex provisionally closes down 2.9 pctMUMBAI (Reuters) - The BSE Sensex provisionally fell 2.87 percent on Thursday, extending its slide into a seventh straight session, after a broad selloff across Asia due to the turmoil in the global economy.Source: Reuters: Money News | 20 Nov 2008 | 10:06 am Govt approves new fee determination rules for road projectsPTI New Delhi: The government today approved the National Highways Fee (determination of rates and collection) Rules 2008, thus paving the way for increasing the annual fee to implement road projects through public-private partnership mode. The rules, approved by the Cabinet Committee on Economic Affairs (CCEA), will also bring uniformity in fee rate for public funded and private investments projects, Minister of State, Prime Minister’s Office Prithviraj Chavan said while briefing the media. These rules would also facilitate levying of fee for use of two lane section of national highway on which the average investment for upgrading has exceeded Rs 1 crore per km, he added. Source: LatestNews-Home - Livemint.com | 20 Nov 2008 | 9:59 am Govt awards 44 oil, gas blocks; attracts $1.5 bn investmentPTI New Delhi: The government today awarded 44 oil and gas exploration blocks, with the maximum going to ONGC and its partners and first timers BHP Billiton-GVK Power, to attract $1.5 billion investment in an attempt to cut reliance on imported energy. Of the 45 blocks that received bids in the seventh round of auction under New Exploration Licensing Policy, the Cabinet Committee on Economic Affairs (CCEA) did not award a deepwater block in Mumbai basin to Cairn Energy India as it found the low bid by the sole bidder “detrimental to the government’s interest in future in terms of profit petroleum.” Minister of State in Prime Minister’s Office Prithviraj Chavan, briefing reporters on CCEA decision, said the production sharing contracts (PSCs) for the 44 block would be signed in a month. A total of 57 blocks were offered in the auction but bids were received only for 45, with about $1.49 billion minimum investment committed in exploration spend, Petroleum Secretary R S Pandey said. ONGC and partners bagged the maximum number of 20 oil and gas exploration blocks offered by India in its largest ever international bid round that closed on 30 June. First timers BHP Billiton and GVK Power emerged winners in seven deepsea blocks. Reliance Industries forged an alliance with British Petroleum Plc but could manage only one Krishna-Godavari basin block. Pandey said the government was considering bringing a next edition of bid round, NELP-VIII in February 2009. “Blocks are under finalisation and we hope to come out with NELP-VIII in February.” Source: LatestNews-Home - Livemint.com | 20 Nov 2008 | 9:50 am HCL Info to distribute SanDisk products in IndiaPTI Bangalore: Data-storage accessories supplier SanDisk today said it has entered into a partnership with homegrown HCL Infosystems to distribute its products in the Indian market. “Our partnership underlines the synergy with the mobile distribution capabilities of HCL and SanDisk’s exciting offering for mobile phones. With this partnership we aim to have a wider reach in one of the largest mobile markets in the world,” SanDisk’s President and Chief Operating Officer Sanjay Mehrotra said in a statement here. The California-based company’s offering for mobile phones includes mobile 2 GB -16 GB memory cards and MobileMate USB readers, which provide users with a complete and versatile solution for transferring music, video, photos and other files between their mobile memory cards and computers. Source: LatestNews-Home - Livemint.com | 20 Nov 2008 | 9:42 am HCL Info to distribute SanDisk products in IndiaPTI Bangalore: Data-storage accessories supplier SanDisk today said it has entered into a partnership with homegrown HCL Infosystems to distribute its products in the Indian market. “Our partnership underlines the synergy with the mobile distribution capabilities of HCL and SanDisk’s exciting offering for mobile phones. With this partnership we aim to have a wider reach in one of the largest mobile markets in the world,” SanDisk’s President and Chief Operating Officer Sanjay Mehrotra said in a statement here. The California-based company’s offering for mobile phones includes mobile 2 GB -16 GB memory cards and MobileMate USB readers, which provide users with a complete and versatile solution for transferring music, video, photos and other files between their mobile memory cards and computers. Source: Tech News - Livemint.com | 20 Nov 2008 | 9:42 am World shares at 5-1/2 year lows on economy fearsLONDON (Reuters) - World stocks dropped to 5-1/2 year lows and oil hit 22-month troughs as investors reacted to dire Federal Reserve warnings on the economy and fears about the viability of major U.S. auto makers and bank giant Citigroup.Source: Reuters: Money News | 20 Nov 2008 | 9:34 am Large-scale job cuts in India unlikely: Cabinet SecretaryNew Delhi: India is unlikely to see any large-scale job cuts as it has a strong domestic market to consume what it produces, Cabinet Secretary K M Chandrasekhar said. “Most of our productions are based on domestic demand. As long as domestic demand remains reasonably strong, I don’t think there would be any large-scale job cuts in India,” he said. Like many other countries, India does not import in a big way, he said, adding that many steps have been taken by the government and Reserve Bank of India to ease the crisis. Prime Minister Manmohan Singh too had earlier this month asked the industry not to cut jobs as a knee-jerk reaction to the global financial crisis. “Enough liquidity has been pumped into the market. I think, we should be able to contain the situation more or less,” Chandrasekhar said. When asked whether the government will intervene if any companies resort to large-scale job cuts, Chandrasekhar said, “In the case of Jet Airways, the company was told to take back all the sacked employees and they responded positively.” Last month, Jet Airways hit by the crisis, announced the termination of services of around 1,900 employees mostly cabin crew. However, it reinstated all the sacked staff following government intervention. The economic crisis has prompted many companies in other countries to lay off their employees, while fears still looms large over Indian firms. On India’s confidence-level in handling crisis situation, Chandrasekhar said, “Initially, industry lacked confidence a bit, but they have now regained”. Quoting a report that said Indian industries’ confidence level is the second highest, next to Norway, he said, “The country’s industry was considerably resilient and has more confidence to face any financial crisis.” Source: Home - Livemint.com | 20 Nov 2008 | 9:28 am Madras Aluminium cuts production by 60% - Business Standard
Source: Google News India - Business | 20 Nov 2008 | 9:21 am Japan’s exports mark biggest decline in 7 yearsAP Tokyo: Japanese exports marked their biggest decline in seven years in October, causing the country to post its second trade deficit in three months, adding to the grim outlook for the world’s second-largest economy. The trade deficit, a rarity for Japan, follows confirmation earlier this week that the nation had slipped into recession and comes as a slew of major manufacturers, hit by waning global demand, announce production cuts. “This deteriorates the outlook even more _ what’s driving the economy is exports,” said Martin Schulz, an economist at the Fujitsu Research Institute. Exports plunged 7.7% in October from a year earlier, the biggest drop since 2001, according to government figures released Thursday. Autos and electronics - two pillars of the economy - are getting hit, the figures show. Automobile exports fell 15% while those of electronic products sank 10.6%. Exports dropped sharply to the U.S. and Europe, where the 15-country euro-zone is also in a recession. With scarce natural resources, Japan must purchase many necessities abroad - it is the world’s largest importer of food and imports nearly all of its oil. While imports are down from recent months as oil prices eased, they were still 7.4% higher than a year earlier. The combination of falling exports and a rise in imports led to a 63.9 billion yen ($666 million) deficit for the month. Japan also posted a deficit in August, but before that had not had one in 26 years - except for the month of January, when trade deficits are more common because of the slowdown for the New Year holidays. As the global economy dramatically slows, many of Japan’s big-name exporters are scaling back production. Isuzu said Thursday it would cut 1,400 contract workers as it lowers its truck output for this fiscal year, after production cuts by Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. Electronics makers such as Sharp Corp. are also mulling production cuts in mainline products like LCD TVs as sales cool abroad. Schulz said there is more bad news on the way, in the form of income from Japanese products that are manufactured overseas. Exports represent only products that are made in Japan and sold overseas. “Exports are just half of the problem,” he said, adding that income from goods made abroad would be hit by the double-whammy of falling consumer demand and a stronger yen, which erodes foreign earnings when brought home. Exports in October totaled 6.93 trillion yen ($72.2 billion), while imports came to 6.99 trillion yen ($72.8 billion). In August, Japan posted a 332.1 billion yen deficit, which swung to an 88.5 billion yen surplus in September. Shares in Tokyo fell Thursday following a big retreat overnight on Wall Street amid worries about a protracted recession the U.S - a huge export market for Japan. The benchmark Nikkei 225 stock index fell nearly 7% to 7,703.04. Source: World Business - Livemint.com | 20 Nov 2008 | 9:17 am Japan’s exports mark biggest decline in 7 yearsAP Tokyo: Japanese exports marked their biggest decline in seven years in October, causing the country to post its second trade deficit in three months, adding to the grim outlook for the world’s second-largest economy. The trade deficit, a rarity for Japan, follows confirmation earlier this week that the nation had slipped into recession and comes as a slew of major manufacturers, hit by waning global demand, announce production cuts. “This deteriorates the outlook even more _ what’s driving the economy is exports,” said Martin Schulz, an economist at the Fujitsu Research Institute. Exports plunged 7.7% in October from a year earlier, the biggest drop since 2001, according to government figures released Thursday. Autos and electronics - two pillars of the economy - are getting hit, the figures show. Automobile exports fell 15% while those of electronic products sank 10.6%. Exports dropped sharply to the U.S. and Europe, where the 15-country euro-zone is also in a recession. With scarce natural resources, Japan must purchase many necessities abroad - it is the world’s largest importer of food and imports nearly all of its oil. While imports are down from recent months as oil prices eased, they were still 7.4% higher than a year earlier. The combination of falling exports and a rise in imports led to a 63.9 billion yen ($666 million) deficit for the month. Japan also posted a deficit in August, but before that had not had one in 26 years - except for the month of January, when trade deficits are more common because of the slowdown for the New Year holidays. As the global economy dramatically slows, many of Japan’s big-name exporters are scaling back production. Isuzu said Thursday it would cut 1,400 contract workers as it lowers its truck output for this fiscal year, after production cuts by Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. Electronics makers such as Sharp Corp. are also mulling production cuts in mainline products like LCD TVs as sales cool abroad. Schulz said there is more bad news on the way, in the form of income from Japanese products that are manufactured overseas. Exports represent only products that are made in Japan and sold overseas. “Exports are just half of the problem,” he said, adding that income from goods made abroad would be hit by the double-whammy of falling consumer demand and a stronger yen, which erodes foreign earnings when brought home. Exports in October totaled 6.93 trillion yen ($72.2 billion), while imports came to 6.99 trillion yen ($72.8 billion). In August, Japan posted a 332.1 billion yen deficit, which swung to an 88.5 billion yen surplus in September. Shares in Tokyo fell Thursday following a big retreat overnight on Wall Street amid worries about a protracted recession the U.S - a huge export market for Japan. The benchmark Nikkei 225 stock index fell nearly 7% to 7,703.04. Source: LatestNews-Home - Livemint.com | 20 Nov 2008 | 9:17 am Air India to suspend lone Himachal Pradesh flightState-owned carrier Air India will suspend its operations in Himachal Pradesh from Saturday, officials said. The decision is likely to hit the tourism industry of the state.Source: Daily News & Analysis: Money News | 20 Nov 2008 | 9:03 am More scope for RBI on rates as prices easeNEW DELHI (Reuters) - Inflation eased slightly to a 5-½ month low in early November, helped by lower fuel prices and slowing demand, adding to expectations the Reserve Bank would aggressively lower rates as growth falters.Source: Reuters: Money News | 20 Nov 2008 | 9:02 am India's inflation drops further to 8.9 percentHelped by a drop in prices of fuels and manufactured products, India's annual rate of inflation fell further to 8.9 percent for the week ended Nov 8, from 8.98 percent for the week before, fresh data showed Thursday.Source: IndiaeNews.com: Business News | 20 Nov 2008 | 9:00 am Rupee weaker but RBI hand helps limit fallMUMBAI (Reuters) - The rupee was steady near its record low on Thursday afternoon helped by the Reserve Bank's dollar selling intervention in early trade but losses in local equities kept the unit from completely reversing losses.Source: Reuters: Money News | 20 Nov 2008 | 8:57 am IT cos going back on campus placements\' commitmentsDesperate times call for desperate measures. IT companies are going back on commitments made at campus placements. Many companies are even unwilling to commit as to when they will visit colleges this year.Source: Moneycontrol Top Headlines | 20 Nov 2008 | 8:53 am RBI makes recast of realty loans tougher - Economic Times
Source: Google News India - Business | 20 Nov 2008 | 8:51 am DoT plans lab to certify WiMAXbased servicesIT majors including Wipro, TCS and LT Infotech may be in race to partner the Department of Telecoms technical wing Telecom Engineering Centre (TEC) to set up a WiMAX certification lab in India.Source: Moneycontrol Top Headlines | 20 Nov 2008 | 8:48 am First batch of RIL's KG crude oil reaches HPCLHindustan Petroleum Corp Ltd has received the first consignment of crude oil from Reliance Industries' eastern offshore Krishna Godavari basin D6 block.Source: Daily News & Analysis: Money News | 20 Nov 2008 | 8:48 am See no rate cuts till April next year: J&K Bank - Moneycontrol.com
Source: Google News India - Business | 20 Nov 2008 | 8:47 am PowerGrid to spend Rs 7,031 cr on Sasan projectPower Grid Corporation of India Ltd (PGCIL) announced on Wednesday that it plans to spend Rs 7,031 crore to build the transmission system associated with the 4,000MW Sasan Ultra Mega Power Project (UMPP) in Madhya Pradesh.Source: Moneycontrol Top Headlines | 20 Nov 2008 | 8:47 am Inflation eases to 8.90%; may prompt RBI to infuse cashInflation has further declined to 8.90 per cent for the week ended November 8 from 8.98 per cent a week ago, a development that may prompt the Reserve Bank to inject more liquiditySource: Daily News & Analysis: Money News | 20 Nov 2008 | 8:47 am DLFFortis hospital venture facing delaysIssues seem to have croppedup regarding DLFs pact with Fortis Healthcare for settingup superspeciality hospitals in DLF townships. This comes at a time when the real estate giant is facing deferment of some of its projects due to weak real estate demand.Source: Moneycontrol Top Headlines | 20 Nov 2008 | 8:45 am BHEL in talks with Sheffield, Kobe for nuclear forgingsAmid a shortage of critical equipment for nuclear plants globally, Bharat Heavy Electricals Ltd (BHEL) is planning to set up a greenfield manufacturing base in India for nuclear forgings.Source: Moneycontrol Top Headlines | 20 Nov 2008 | 8:43 am Italian wine makers seek to uncork the Indian marketToasting the good times with some sparkling white wines or ruby red wines from Italy could well become a party norm with Italian wine makers all set to woo the Indian marketSource: Daily News & Analysis: Money News | 20 Nov 2008 | 8:38 am India may emerge as data hub for nearby countries: GartnerWith India's data storage capacity expected to double by 2012, it may emerge as the data centre hub for nearby markets such as West Asia, east Africa and southeast Asia, according to a research report prepared by global information technology (IT) market tracker Gartner Inc.Source: IndiaeNews.com: Business News | 20 Nov 2008 | 8:32 am Economic slowdown to impact Titagarh Wagon's revenue targetCity-based wagon maker Titagarh Wagons Thursday said the economic downturn could derail its Rs.10-billion revenue target this fiscal.Source: IndiaeNews.com: Business News | 20 Nov 2008 | 8:30 am Local call rates may fall once new telcos start services: RajaPTI New Delhi: Telecom Minister A Raja feels there is enough scope for tariffs to come down to a level of 20 paise per minute for local calls and 50 paise per minute at national level after new operators start services. “There is a scope for reduction once the new operators start rolling out (services). Tariffs may come down to 20-25 paise in a circle and national calls may come down to 40-50 paise,” Raja said here. The Minister also said the country needs another 300 million telephone lines, which can be given by both existing and new operators. There is a large scope for business to reach 750 million phone connections. There are 120 new licensees in all who have been given permission by the DoT to start telecom services and some of them including Unitech, Swan, Datacom and Shyam Telecom have already got spectrum and could start services once they get the network ready. Raja said TRAI has been following a practice of forbearance. As per this, tariffs are determined by market forces and are not fixed by the regulator. Justifying the presence of more players in a competitive market, the Minister said, “We brought in a competitive atmosphere and that will bring down the tariffs. Is it not the responsibility of the Government to introduce more competition?” At present local call rates vary from 40 paise (within an operator’s own network) to Re1, and national call rates from Re1 to Rs2.65 a minute. Source: Home - Livemint.com | 20 Nov 2008 | 8:17 am UPDATE 1-Reliance Capital to launch Islamic funds in Malaysia - Reuters
Source: Google News India - Business | 20 Nov 2008 | 8:09 am Patni to implement new CRM solution for Turkish bankMumbai: IT services provider Patni Computer Systems has said that it has won a contract from Turkey’s Akbank for implementing new customer relationship management product. The system integration deal will see Patni implementing Akbank’s new customer relationship management product from Chordiant Software over the next 16 months, a statement said. Akbank is Turkey’s leading bank and the most valuable company on the Istanbul Stock Exchange. The new CRM solution will complement Akbank’s existing customer management systems to enable Akbank to enhance its portfolio, campaign and leads management processes. Once implemented, the CRM system will also provide Akbank with an uniform and consistent view of its customers to drive up targeted intelligent sales and improve existing reporting facilities, the release said. Patni’s Executive Vice-President Brian Stones said: “This is a great win for us. Akbank prides itself on being an innovator in its field and this new system will enable it to enhance its overall customer relationship management system in order to strengthen and maintain its current position as Turkey’s number one bank.” Source: Tech News - Livemint.com | 20 Nov 2008 | 8:09 am Auto show gets Indian exhibitors orders worth USD 2.63mnDespite worldwide economic crisis and a major slowdown in the automobile industry, 24 Indian exhibitors at the just concluded Automotive Aftermarket Show in Las Vegas got orders worth USD 2.63 millionSource: Daily News & Analysis: Money News | 20 Nov 2008 | 8:05 am Rupee hits record low of 50.55 a dollarExtending its losses in sync with the equity markets, the rupee tumbled by 42 paise against the dollar to 50.44/45Source: Daily News & Analysis: Money News | 20 Nov 2008 | 8:04 am OVL to make offer for Imperial shares by 9 DecPTI New Delhi: ONGC Videsh Ltd, the overseas arm of state-run Oil and Natural Gas Corporation, will make an offer to acquire shares of UK-listed Imperial Energy Corp Plc at 12.50 pounds a share by 9 December. OVL, last week, won Russian government approval for taking over Imperial, which has assets in Tomsk region of western Siberia. “The formal offer document and acceptance forms are to be posted to Imperial shareholders by 9 December,” the UK-listed firm said. “All the pre-conditions to the share offer have now been satisfied.” It, however, did not give a date for completion of the deal. Acquisition of Imperial will cost OVL about 1.4 billion pounds or $2.1 billion at current exchange rates. Russia’s Federal Anti-Monopoly Service (FAS) last week granted approval in respect of the ownership of Russian entities by entities controlled by a foreign government. Government of India holds 74% stake in ONGC. Prior to this, FAS cleared the acquisition under anti-monopoly regulations and stated that Imperial’s assets were not strategic. Since July, Imperial is producing 11,000 barrels of oil per day. Output will reach 25,000 bpd by fiscal-end with 18 wells coming on stream. Production would rise to 35,000 bpd (about 1.75 million tons) by 2009-end. The company also plans to start commercialising gas from 2010. Imperial board on 26 August had agreed to takeover bid by Jarpeno Ltd, a wholly-owned subsidiary of OVL. Source: Home - Livemint.com | 20 Nov 2008 | 8:03 am IMF approves $2.1 bn loan to IcelandWashington: The International Monetary Fund approved a two-year, $2.1 billion support program for Iceland designed to restore confidence and stabilize the country’s shattered economy. The approval had been held up because of a British-Icelandic dispute over Britons’ accounts in failed Icelandic banks. The IMF agreed last month to lend Iceland $2.1 billion and help the country raise $3.9 billion in loans from other countries. Britain held up the approval with the argument that Iceland first should pay back British citizens’ deposits in failed Icelandic banks. After the IMF announcement, four Nordic countries agreed to lend Iceland $2.5 billion, Finland’s Finance Ministry said. The four countries agreeing to the package were Finland, Sweden, Norway and Denmark. Iceland needs the financing to buy imports and support its currency, which has lost around two-thirds of its value since the beginning of the year because of the collapse of its banking system. Both the IMF and the European Union, of which Iceland is not a member, told Reykjavik that they would not give loans to Iceland until the dispute with Britain was settled. On Sunday, Icelandic Prime Minister Geir Haarde agreed to guarantee the money. Iceland earlier had said depositors would get up to $26,600. While Iceland is not part of the EU, its membership in the European Economic Area allows the country to participate in a free economic zone along with European Union member states. Source: Home - Livemint.com | 20 Nov 2008 | 7:59 am Indian BPO brings jobs to Northern IrelandIndian call centre major Firstsource has sparked early Christmas cheer in Northern Ireland by announcing plans to create 160 more jobs in the region.Source: Daily News & Analysis: Money News | 20 Nov 2008 | 7:36 am New fund to restart Delhi's stalled infrastructure projectsPartially tarred roads, half-covered drains, foot over-bridges lacking roofs - these are common sights of unfinished infrastructure projects in the national capital. However, things are set to change with the municipal authority planning to establish a fund to complete projects stalled by what are called 'tender problems'.Source: IndiaeNews.com: Business News | 20 Nov 2008 | 7:31 am Glenmark generics unit launches azathioprine in USReuters Mumbai: Drugmaker Glenmark Pharmaceuticals Ltd said on Thursday its generics unit has launched azathioprine tablets in the United States. Glenmark Generics Ltd acquired full marketing rights for the drug from an unnamed company, the company said in a statement. Azathioprine is a generic version of Imuran, used to prevent rejection in kidney transplantation. It is also used to treat rheumatoid arthritis, Glenmark said in a statement. Imuran had sales of about $36 million for the 12 months to June 2008, the company added. Source: Home - Livemint.com | 20 Nov 2008 | 7:30 am Reliance Capital AMC gets nod to operate in MalaysiaMumbai: “Anil Ambani-promoted Reliance Capital Asset Management company has been given approval to commence operations in Malaysia,” a top official of the Securities Commission, Malaysia, said. “The permission to Reliance Capital Asset Management company for beginning operations in Malaysia was granted by the authorities two days ago,” Securities Commission, Malaysia, Chairperson Zarinah Anwar said at the India-Malaysia Capital Market Forum. The day-long forum held in Mumbai is being jointly organised by Securities Exchange Board of India (Sebi) and Securities Commission of Malaysia. “Several Indian joint ventures in power, railways and construction sector are active in Malaysia, and India is a key market for Malaysian construction industries,” she said. “However in financial and capital market, there is no cross-border participation in investment,” Anwar said. “Certainly this is not reflecting existing trade and direct investment relationship between India and Malaysia,” Anwar said, adding: “There surely must be untapped opportunities for both capital market players, providing lot of scope for Indian participation in Malaysia and vice-versa.” “One of the most important market segments in Malaysia is the bond market which has been established for financing corporates. It also emerged as the largest current bond market in the South East Asian region,” Anwar said. “Also, one of the fastest growing segments of the Malaysian capital market is our investment management industry which has witnessed 20% of growth rate,” Anwar said. Meanwhile, Sebi Chairman C.B. Bhave in his inaugural address said: “Both Sebi and Securities Commision, Malaysia, can promote linkage between our financial sectors, capital markets and cross-border investment participation.” Source: Home - Livemint.com | 20 Nov 2008 | 7:19 am Opposition BJP says crisis needs bigger responseNEW DELHI (Reuters) - India needs to restore economic confidence hit by the global credit crisis by helping struggling industries, boosting infrastructure spending and dramatically improving governance, a senior opposition politician said.Source: Reuters: Money News | 20 Nov 2008 | 7:14 am Inflation dips to 8.90% from previous 8.98%New Delhi: India’s wholesale price index rose 8.90% in the 12 months to 8 November, marginally below the previous week’s annual rise of 8.98%, government data showed on Thursday. The rate was a shade below a median forecast of 8.99% in a Reuters poll of analysts. Inflation for the week ended 13 September was revised up to 12.42% from 12.14%. The annual inflation rate was 3.20% during the corresponding week of the previous year. The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly. Source: Home - Livemint.com | 20 Nov 2008 | 6:48 am India's inflation drops further to 8.9 percentIndia's annual rate of inflation fell further to 8.9 percent for the week ended Nov 8, from 8.98 percent for the week before, fresh data showed Thursday.Source: IndiaeNews.com: Business News | 20 Nov 2008 | 6:31 am Bears grip markets, key index down 370 pointsIndian equities markets seemed headed for another day of bloodbath Thursday with a key index more than 370 points down just 45 minutes into trading on dismal global cues.Source: IndiaeNews.com: Business News | 20 Nov 2008 | 6:31 am Friday dressing is fun, but no bermudas please!In the corporate world, Fridays bring a double dose of happiness - they kick off the weekend and also allow employees to slip into casual wear. But, then, it's not a no-holds-barred exercise.Source: IndiaeNews.com: Business News | 20 Nov 2008 | 6:02 am Antony to lay foundation stone for Bharat Electronics unitDefence Minister A.K. Antony will lay the foundation stone of the production support centre of Bharat Electronics Ltd (BEL) at the Kinfra Hi-tech Industrial Park, Kalamassery, near here Nov 26.Source: IndiaeNews.com: Business News | 20 Nov 2008 | 6:00 am Ess Dee buys majority stake in Vedanta’s India Foil- reportMumbai: Packaging firm Ess Dee Aluminium Ltd has said that it has acquired a majority stake in ailing India Foils Ltd, a Vedanta Group firm. Ess Dee, which makes packaging products for drugmakers and fast moving consumer goods, said it has invested about Rs1.2 billion in India Foils for a 85-90% stake. “It will be reasonable to expect that whatever Ess Dee’s turnover is in 2008-09, you should see (that) more than doubling next year,” Ess Dee’s director Debdeep Bhattacharya said. For 2008-09, the company would maintain the kind of growth seen in the last quarter,” he added. For July-September, Ess Dee’s net profit grew 56% to Rs229.3 million, while revenue surged 70% to Rs1.24 billion. Ess Dee Aluminium and Vedanta’s Madras Aluminium Co together invested Rs2.61 billion in India Foils in equity and preferential shares as part of a rehabilitation plan approved by the Board for Industrial and Financial Reconstruction (BIFR). “With the acquisition of India Foils, Ess Dee’s rolling capacity would more than double to 37,000 tonnes from 18,000 now,” Ajay Doshi, a director at Ess Dee, said. “Of this, 12,000 tonnes would be restarted by March 2009, while the remaining would be added by next December,” Doshi said. “India Foils has three manufacturing units, of which two have been shut. Ess Dee expects to restart an ingot-to-sheet making unit in 4-5 months, while it would consider restarting the third unit at a later date,” Doshi added. “There was a lot of demand for packaging material from the pharmaceutical and FMCG sector, which had Ess Dee’s manufacturing units working at near 85% capacity,” Bhattacharya said. “It is a recession-free model. We are some distance away from giving up medicines or toiletries due to recession,” he said. “Ess Dee will focus on turning around India Foils, which is expected to report profits by March 2009, and will start looking for further acquisitions after that,” he added. “Turkey, Dubai, Europe, Brazil and Agrentina would be some of the countries that would be on Ess Dee’s radar,” he said. Ess Dee shares closed up 8.9% at Rs145.05 in a weak Mumbai market. Source: Home - Livemint.com | 20 Nov 2008 | 5:10 am Tata CEO sees opportunity as U.S. banks cut backNEW YORK (Reuters) - The economic crisis may present a growth opportunity for India's top outsourcing firm, Tata Consultancy Services Ltd (TCS), as U.S. financial services companies look to cut costs, but that opportunity is likely some months away, the company's CEO said on Wednesday.Source: Reuters: Money News | 20 Nov 2008 | 3:03 am Hotel sector feeling the slowdown heatMumbai, Nov. 18 The heat of global economic meltdown is being felt by upcoming hotel projects in India. Some of these ventures are likely to be delayed or put on hold.Source: Business Line - Home Page | 20 Nov 2008 | 12:00 am National Thermal Power Corporation (Rs 136): SellWe recommend a sell in National Thermal Power Corporation from a short-term horizon. From the charts of NTPC, we note that it has been on a long-term downtrend since its life-time high of Rs 291 (January peak). However, the stock found support atSource: Business Line - Home Page | 20 Nov 2008 | 12:00 am 710 kg of tea offered on first day of e-auctionThe world’s first electronic auction of tea, organised by the Calcutta Tea Traders Association in partnership with Tea Board, was launched here on Wednesday.Source: Business Line - Home Page | 20 Nov 2008 | 12:00 am DLF-Fortis hospital venture facing delaysNew Delhi, Nov. 19 Issues seem to have cropped-up regarding DLF’s pact with Fortis Healthcare for setting-up super-speciality hospitals in DLF townships. This comes at a time when the real estate giant is facing deferment of some of itsSource: Business Line - Home Page | 20 Nov 2008 | 12:00 am Pressure easing on mutual funds, with inflows in NovMumbai, Nov. 19 The mutual fund industry, which only a few weeks ago was strapped for funds, appears to be in a turnaround phase and is witnessing inflows.Source: Business Line - Home Page | 20 Nov 2008 | 12:00 am Day Trading GuideSource: Business Line - Home Page | 20 Nov 2008 | 12:00 am Deal space post meltdownThe falling Sensex and the erosion of market cap may make some of the Indian companies likely targets for acquisition, primarily because a large number of the Indian blue chips have fundamentally robust business models and with falling demands inSource: Business Line - Home Page | 20 Nov 2008 | 12:00 am An ‘ARM’ed laptop? IT’s on the way!Bangalore, Nov. 19 With ARM’s processor cores fuelling 10 billion devices around the world - and growing at 90 new ones every second - one would think the Cambridge, UK-based chip design leader would consolidate rather than expand. But inSource: Business Line - Home Page | 20 Nov 2008 | 12:00 am BHEL in talks with Sheffield, Kobe for nuclear forgings facilityNew Delhi, Nov. 19 Amid a shortage of critical equipment for nuclear plants globally, Bharat Heavy Electricals Ltd (BHEL) is planning to set up a greenfield manufacturing base in India for nuclearSource: Business Line - Home Page | 20 Nov 2008 | 12:00 am Rupee crosses 50-level on arbitrage, weak stock marketMumbai, Nov. 19 The rupee again crossed the psychologically important level of 50, pulled down by negative sentiments in the equities market and on NDF (non-deliverable forward)Source: Business Line - Home Page | 20 Nov 2008 | 12:00 am GE Capital biz to be streamlined from Jan 1, 2009GE Global said it is streamlining the entire GE Capital organization, reports CNBCTV18. Multiple headquarters will be rolled into single pole headquarters. The restructuring will also include job cuts. GE Capital reorganisation will be effective from January 1, 2009.Source: Moneycontrol Top Headlines | 19 Nov 2008 | 9:13 pm UTI\'s new MF scheme strikes gold, raises Rs 300crRetail investors are still seeing value in the stock market despite all the turmoil. They have pumped in over Rs 300 crore into UTI\'s equitycumgold scheme, the biggest in recent months.Source: Moneycontrol Top Headlines | 19 Nov 2008 | 8:59 pm Critical GoM meets deferred with ministers in poll modeScheduled meetings of various Groups of Ministers (GoMs) have been postponed for the foreseeable future as key ministers in the United Progressive Alliance government turn their attention to politicalSource: Business Standard | Front Page Headlines | 19 Nov 2008 | 6:51 pm Bucking the slowdown, telcos up hiring plansGrowing customer base, new players and 3G could see 15 to 20 per cent ramp-up.Source: Business Standard | Front Page Headlines | 19 Nov 2008 | 6:50 pm Pvt pension funds to start by April 1Regulator to invite bids next month, may allow 26% FDI.Source: Business Standard | Front Page Headlines | 19 Nov 2008 | 6:49 pm Consumer prices in US decline most in 6 decadesTwo-year yields dropped to levels not seen since 2003.??Treasuries rose, and yields showed inflation expectations are the lowest in at least a decade, before a government report that economists saySource: Business Standard | Front Page Headlines | 19 Nov 2008 | 6:38 pm GE to slash $2 bn in costs at finance unitNew York: American conglomerate General Electric is planning to slash costs by $2 billion in 2009 at its finance arm GE Capital, the unit which has been severely hit by the global financial turmoil. In a statement issued, the company announced a new GE Capital organisation structure to drive growth. “With this more efficient organisation, we are projecting approximately $2 billion in savings at GE Capital in 2009. These savings and the continued focus on optimising the portfolio increase flexibility and vantage of opportunities created in the current market and drive value for our shareholders, a statement on GE Reports.com, one of the websites of the company said. The new structure coming into effect from 1 January, 2009, would consist of operational poles in Europe, Asia and the Americas. We also have created two new platforms to take advantage of new opportunities and leverage our expertise, one for consumer-focused international banks and JVs, and another focused on optimising returns on non-strategic assets. The new structure is effective 1 January, 2009, it noted. Meanwhile, UK daily Financial Times in a report published online today said, “General Electric is to shrink GE Capital, its finance arm, in a move that could lead to $2 billion in cost cuts, the sale of $90 billion in highly leveraged assets and thousands of redundancies among its 75,000 employees.” According to Michael A Neal who is the chairman of GE Capital, over the last two months, the firm has acted decisively to improve the funding position. “We reduced our leverage, successfully raised capital, and accessed government programs that level the competitive playing field for us in financial services,” he said. “Through these actions, we have strongly improved our 2009 funding outlook, and continue to reposition GE Capital for long-term performance and to play offense as conditions permit,” Michael A Neal said. It also added that the new organisation would help in lowering costs, operate efficiently and capture profitable, high-margin originations across key platforms and geographies today and as the global economic situation stabilises and begins to recover. Source: World Business - Livemint.com | 19 Nov 2008 | 11:44 am
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