Indian Business Headlines for December 3, 2008

Reeling from attacks, eco slowdown, bad movie content: PVR

The PVR stock has hit a 52week low of Rs 57.50. Nitin Sood of PVR says the company has felt the impact of the recent terrorist attacks and the overall economic slowdown. Also, he says the content in terms of movies that has come through during the first half of the year hasnt been great.
Source: Moneycontrol Top Headlines | 3 Dec 2008 | 6:11 pm

Sun TV: An outperformer

The Sun TV stock has been quite a mover and shaker. The stock is up almost 17% after news of patch up between the Marans and Karunainidhi. Enam Securities maintains an outperformer rating on the stock as prospects now look good for the business.
Source: Moneycontrol Top Headlines | 3 Dec 2008 | 5:22 pm

Vodafone case: HC rules in favour of IT dept

The Bombay High Court has ruled in favour of the Income Tax Department in the crucial Vodafone case. The IT department had slapped a USD 1.7 billion tax notice on Vodafone after it purchased Hutchison\'s stake in Hutch Essar for USD 11 billion. Vodafone has eight weeks to appeal the verdict in the apex court.
Source: Moneycontrol Top Headlines | 3 Dec 2008 | 5:10 pm

Varun Shipping pledges additional 8% with Investsmart

Promoters of Varun Shipping have pledged an additional 8% with Investsmart Financial Services. Such instances have been happening many times in the last few days.
Source: Moneycontrol Top Headlines | 3 Dec 2008 | 4:45 pm

Realty prices need to correct for volumes to revive: UBS

After Goldman Sachs, UBS is saying property prices need to correct 2530% for volumes to revive. In fact, current registration figures suggest Mumbai is currently seeing a drop of 35% from last year.
Source: Moneycontrol Top Headlines | 3 Dec 2008 | 4:05 pm

Construction ind needs viability gap funding: IVRCL

Sudhir Reddy, CMD, IVRCL said it will be good news for construction industry if the government is willing to partner on the true PPP basis and come out with a grant which is nothing but a viability gap funding.
Source: Moneycontrol Top Headlines | 3 Dec 2008 | 3:45 pm

DRL bags order for seven products from Germany\'s AOK

DRL has bagged an order to supply seven products to Germany\'s AOK. Four of these seven products are exclusive to DRL. The company will be able to supply to all five regions in Germany. The size of the products and the market share is not known yet.
Source: Moneycontrol Top Headlines | 3 Dec 2008 | 3:25 pm

See 68 months of auto slowdown ahead: Angel Broking

Vaishali Jajoo of Angel Broking feels the contraction in auto sales is the result of various factors macroeconomic condition, lack of liquidity, high interest rates coming together. The next months sales numbers of auto majors will be dismal again, she said. According to her, there could be a slowdown in this space for the next 68 months.
Source: Moneycontrol Top Headlines | 3 Dec 2008 | 2:18 pm

Automakers gear up for long slowdown

SEOUL/FRANKFURT (Reuters) - Car and truck makers around the world signalled fresh production cuts and job losses on Wednesday with some warning the slump in demand may extend until 2010.

Source: Reuters: Money News | 3 Dec 2008 | 1:20 pm

BlackBerry-maker hit as subscriber growth slows

LONDON (Reuters) - BlackBerry smartphone maker Research In Motion Ltd cut its third-quarter profit and revenue outlook well below Wall Street expectations, pointing to slower subscriber growth, weaker margins and sharp currency swings.

Source: Reuters: Money News | 3 Dec 2008 | 1:18 pm

Govt raises subsidy on farm loans

Mumbai: The Reserve Bank of India or RBI on Wednesday said the government has decided to increase the interest subvention scheme for short-term credit up to Rs3 lakh given to farmers to 3% from 2%.

Banks offer such loans at a concessional rate of 7%. Since this does not cover the average cost of funds, the government gives subsidy to banks. So far, this has been 2%.

“Public sector banks would be eligible for interest subvention of 3% in respect of short-term production credit up to Rs3 lakh provided to farmers for the year 2008-09” said a RBI release.

Higher subsidy will help bank cut losses on small farm loans. At the same time, it will widen the government’s fiscal deficit.

Source: LatestNews-Home - Livemint.com | 3 Dec 2008 | 1:17 pm

HC summons Petroleum Ministry official in RIL- RNRL case

Mumbai: The Bombay High Court has summoned an official in the Petroleum Ministry for the purpose of cross examination in the ongoing case between Reliance Industries Ltd and Reliance Natural Resources Ltd (RNRL) over gas supply.

“Petroleum Ministry Under-Secretary S.M. Sundaram will have to appear in the court on 11 December,” RNRL sources said.

“RNRL had prayed before the division bench of Justices J.N. Patel and K.K. Tated for summoning Sundaram for cross examination,” said P.V. Rao, head, legal department of RNRL.

RNRL has also sought certain documents from the Petroleum Ministry, which has a role in determining the government’s policy on fixation of price of gas produced by private companies.

The RIL-RNRL dispute pertains to pricing of gas, among other things, that RIL was to supply to the other for its gas-based power project. On pricing, RIL has been maintaining that it is subject to government’s approval.

At the last hearing, Sundaram had filed an affidavit saying that price of gas excavated by RIL from Krishna Godavari basin will have to be approved by the central government, though the transaction is between RIL and RNRL.

RNRL is opposed to this, saying that the government is only concerned with the price of gas that is government’s share as per Production Sharing Contract between government and RIL.

While the government—approved price of gas for KG basin is $4.20 per million British Thermal Units, RNRL is seeking the gas at $2.34 mBTU.

Source: LatestNews-Home - Livemint.com | 3 Dec 2008 | 1:11 pm

Madras HC sets aside Valcyte patent

Mumbai: A Madras high court bench on Tuesday set aside the patent granted to Swiss drug maker F. Hoffman-La Roche AG for its anti-infection drug valganciclovir.

Hearing a petition filed by patient groups — Indian Network for People Living with HIV/AIDS and Tamilnadu Networking People with HIV/AIDS — the court cited the failure of the Chennai patent office to comply with the patent law and sent the matter back to the patent office.

The patient groups had challenged the Chennai patent office’s decision to grant patent to Roche’s drug without hearing a pre-grant opposition filed by these groups in 2006. Mint had reported on 18 November.

The patent grant to this drug in 2007 had invited strong criticism from the patient groups as well as Indian drug makers as the molecule, sold by Roche under the brand name Valcyte in India and other international markets, was allegedly patented first before 1995, and hence not qualified for patent exclusivity in India.

Indian drug makers such as Cipla Ltd, Ranbaxy Laboratories Ltd and a few other not-for-profit organizations have also filed post-grant opposition to this patent at the Chennai patent office.

Meanwhile, Roche is also fighting a patent infringement case on this drug against Cipla as the latter had launched a generic version of this drug in India early this year.

Source: LatestNews-Home - Livemint.com | 3 Dec 2008 | 1:06 pm

Iris scans for UAE bank customers

UAE banks will soon introduce iris-scanning for all customers in order to make transactions foolproof and improve security.
Source: Daily News & Analysis: Money News | 3 Dec 2008 | 1:04 pm

Steel companies likely to cut prices

New Delhi: Domestic steel producers may soon cut prices marginally because of a threat of dumping by countries like China, where inventories have piled up after the Olympics.

Taking the lead, state-run Steel Authority of India Ltd. (SAIL) has announced cutting rates by up to Rs1,600 a tonne on select categories of products this month while producers like Essar, JSW and Ispat are mulling similar options.

Prices of major steel products like hot-rolled coil have come down to Rs32,000 a tonne from its peak of about Rs55,000 per tonne, earlier this year.

The companies see steel prices stabilising in the near future, but they do not rule out a correction in rates following China’s move to scrap five per export duty, which could lead to the Indian market getting flooded with cheaper items.

“We are talking to our customers. Steel prices are stabilising at the moment, but we will continue to follow the international trends,” JSW Group CFO Seshagiri Rao said, adding that the company has not yet decided on price cut.

Rao said demand for long steel products, mainly used in construction, is picking up but it would take some time for the sales of flat products to stabilise as consuming industries like auto continue to reel under waning demand.

An Ispat industry official said that steel prices are seen stabilising in the near term whereas an Essar Steel spokesperson said the company’s prices will be in line with the market. Analysts foresee steel prices going down marginally in the near future as domestic producers would have to maintain import-parity rates.

“To protect their businesses against cheaper imports from China and maintain a price line in sync with the global market, domestic steel producers may cut rates,” said Ernst & Young Partner Navin Vohra.

Source: LatestNews-Home - Livemint.com | 3 Dec 2008 | 1:02 pm

HOEC secures two blocks under NELP VII

Mumbai: Hindustan Oil Exploration Company (HOEC) has said that it has been awarded two oil and gas blocks under the New Exploration Licensing Policy (NELP VII).

The company has been awarded two blocks under NELP VII from the Ministry of Petroleum and Natural Gas, HOEC said in a filing to the Bombay Stock Exchange (BSE).

Further, HOEC has commenced production from its Cambay Basin Block having an initial capacity of 100 barrels of oil per day. The company holds 35% participating interest in the Block, while ONGC holds the rest.

The company said that ONGC has recieved mining lease for the the said block, following which the company has started commercial production.

Shares of the company closed at Rs58.85, up 2.08% on the BSE.

Source: LatestNews-Home - Livemint.com | 3 Dec 2008 | 12:55 pm

Pension, gratuity cannot be attached for debt recovery: SC

New Delhi: The Supreme Court (SC) has held that retirement benefits like pension and gratuity cannot be attached by authorities for recovery of dues.

The apex court passed the ruling while quashing a Rajasthan High Court ruling which had ordered attachment of the retirement benefits of Radhey Shyam Gupta, who was a guarantor in a mortgage deal.

The High Court had ordered attachment of Gupta’s retirement benefit deposited in the Punjab National Bank (PNB) as principal debtor Durga Prasad, for whom he stood guarantor for a loan of Rs83,000, defaulted in the repayment of the loan taken for a vehicle. The vehicle mortgaged by Prasad was also untraceable.

The High Court ordered the attachment of retirement benefits after recording the submission of the bank that the matador van of Prasad which was mortgaged was not traceable. It also ordered Gupta to produce the matador vehicle so that it could be auctioned and the loan amount recovered.

Aggrieved by the ruling, Gupta filed a special leave petition in the apex court.

The apex court agreed with the submission of Gupta’s counsel Shobha that proviso (g) of Section 60(1) of the civil procedure code precluded the authorities from attaching retirement benefits of a person.

Source: LatestNews-Home - Livemint.com | 3 Dec 2008 | 12:43 pm

Asian fund industry execs see more job cuts ahead

HONG KONG (Reuters) - Asia's fund management industry will see further job cuts in the coming year as a plunge in revenue caused by the global financial crisis forces it to rein in costs, senior executives said on Wednesday.

Source: Reuters: Money News | 3 Dec 2008 | 12:36 pm

PSU banks to recruit in a big way amid global layoffs

New Delhi: Public sector banks in India, including the country’s largest lender State Bank of India (SBI), are in a brisk hiring mode, a move which is in sharp contrast to their global peers which have seen thousands of job losses in the last one year.

SBI is hiring over 4,200 employees for its six associates banks - a development that comes within a few days of its plans to recruit 25,000 people.

The bank is also recruiting more than 1,300 customer relationship executives on contractual basis for itself and its associates — State Bank of Bikaner and Jaipur, State Bank of Hyderabad and State Bank of Travancore.

SBI is hiring 1,200 customer relationship executives, while its associates banks are recruiting 140 executives.

Another PSU major Punjab National Bank is hiring 377 managers and officers to support its expansion plans.

The Delhi-based bank has invited applications for the post of chief security officer, assistant general manager (treasury), chief manager (treasury) and other officers and managers.

New generation bank IDBI is also hiring 652 people, with 256 managers for its retail banking business and another 220 managers in the SME financing division.

Besides, it is looking to recruit 176 assistant managers for the SME financing business.

The various associate banks for which SBI is looking to recruit the staff include SBBJ, State Bank of Hyderabad, State Bank of Mysore, State Bank of Indore, State Bank of Patiala and State Bank of Travancore.

There are over 1,000 vacancies each with State Bank of Hyderabad, State Bank of Patiala and State Bank of Travancore, between 240-440 employees would be recruited for each of State Bank of Bikaner and Jaipur, State Bank of Indore and State Bank of Mysore.

The recruitment drive for its associate banks follows SBI’s saying earlier last month that it would hire 25,000 people in the current fiscal.

However, foreign banks have been mostly trimming their payrolls, with biggest of them, Citigroup, recently saying that it plans to trim down its headcount by over 50,000 employees across the world, which reportedly includes about 1,000 staff in India.

Citi, which has already laid off over 25,000 people so far this year, plans to bring down its headcount to below 3,00,000 worldwide in the next few weeks, from more than 3,75,000 at the end of 2007.

American Express also recently said it would lay off about 7,000 employees globally, which includes about 100 employees in India.

Source: LatestNews-Home - Livemint.com | 3 Dec 2008 | 12:33 pm

Delhi airport gears up to fight fog

With winter setting in, the Indira Gandhi International (IGI) Airport here is gearing up to tackle the fog menace, expected to hit the city by Dec 10, an airport official said Wednesday.
Source: IndiaeNews.com: Business News | 3 Dec 2008 | 12:30 pm

No terror cover? You can still protect yourself - Economic Times

Rediff

No terror cover? You can still protect yourself
Economic Times - 1 hour ago
Are you dismayed over the fact that there's no stand alone terrorism insurance cover currently available in India? Don't worry.
Terror insurance pool set to expand Hindu Business Line
Terror cover premium may increase by 50 per cent TopNews
domain-B - Hindu - Moneycontrol.com - Business Standard
all 60 news articles

Source: Google News India - Business | 3 Dec 2008 | 12:26 pm

IOC raises Rs15 bn via bonds: sources

Mumbai: “Indian Oil Corp (IOC) has raised Rs15 billion by placing bonds with ICICI Bank,” three market sources close to the deal said.

“The bonds will mature in eight years and carry a coupon of 10.7%, payable annually,” the sources said.

Source: LatestNews-Home - Livemint.com | 3 Dec 2008 | 12:21 pm

Record rice procurement on the cards - Hindu Business Line

Record rice procurement on the cards
Hindu Business Line - 1 hour ago
NEW DELHI: Rice procurement this year, 24 per cent higher than last year so far, may break all records if the present trend continues.
India doesn't require to import wheat now, says USDA Hindu
Wheat aplenty, food min now has a storage problem Economic Times
Financial Express
all 6 news articles

Source: Google News India - Business | 3 Dec 2008 | 12:20 pm

Germany's MAN to be 50:50 partner in Force Motors JV

MUMBAI (Reuters) - Force Motors Ltd said on Wednesday it would sell up to 14.50 percent stake in its auto components joint venture with German truckmaker MAN for about 3 billion rupees, sending the former's shares up.

Source: Reuters: Money News | 3 Dec 2008 | 12:17 pm

BSE Sensex flat; banks, auto up on rate cut hopes

MUMBAI (Reuters) – The BSE Sensex pared early gains and ended little changed on Wednesday as a grim economic outlook kept investors wary, but banks and automobiles rose on hopes for a rate cut.

Source: Reuters: Money News | 3 Dec 2008 | 12:16 pm

Ranbaxy inks exclusive deal with BioPro Pharmaceutical

New Delhi: Ranbaxy Laboratories Ltd has said that it has entered into an exclusive licensing agreement with US-based BioPro Pharmaceuticals Inc for marketing and distributing its drug ‘Gliadel Wafer´ used for treating brain tumor.

“The licensing agreement and subsequent launch approval, should enable Ranbaxy to further strengthen its position in the Oncology segment,” Ranbaxy Vice President & Regional Director Asia and CIS Sanjeev I. Dani said.

“We are pleased to bring this lifesaving, high technology product to Indian patients and are also working with BioPro to create productive relationship by complementing each other’s strengths,” he added.

The company has also received the import permission for marketing the USFDA approved drug ‘GLIADEL Wafer’in India, Ranbaxy said.

Gliadel Wafer is the only FDA-approved chemotherapeutic drug implant for use during surgical resection, providing localised delivery of chemotherapy directly into the cavity when a brain tumor is removed by surgery.

The product is manufactured by MGI Pharma and BioPro retains the marketing rights in some Asian countries including China, Hong Kong, Taiwan, Korea and India.

Source: LatestNews-Home - Livemint.com | 3 Dec 2008 | 12:15 pm

Terror-hit hotels have adequate insurance cover: Management - Press Trust of India

Gulf Times

Terror-hit hotels have adequate insurance cover: Management
Press Trust of India - 1 hour ago
Mumbai, Dec 3 (PTI) The Indian Hotels Company, which owns the Taj Mahal Palace and Tower, has said it has adequate insurance cover in place and is working with reputed agencies to sanitise and repair it for reopening the Tower wing on priority.
Adequate insurance cover to repair Taj: Indian Hotels Livemint
Delhi hotels tighten security Times of India
India Infoline.com - AFP
all 23 news articles हिन्दी में

Source: Google News India - Business | 3 Dec 2008 | 12:11 pm

NSE justifies keeping FTIL under ‘watch list’ - Livemint

NSE justifies keeping FTIL under ‘watch list’
Livemint - 1 hour ago
PTI New Delhi: National Stock Exchange (NSE), one of the two exchanges where the currency futures are traded, has justified its decision to keep Financial Technologies, promoter of MCX-SX, under ‘watch list´ saying that there is a ‘solid reason’ behind ...
NSE raises lot size on futures contracts Reuters India
NSE puts MCX sponsor FT on its 'watch list' Economic Times
Commodity Online - Myiris.com - Livemint - Livemint
all 10 news articles

Source: Google News India - Business | 3 Dec 2008 | 12:06 pm

Vodafone loses $1.7 bn tax appeal in Mumbai court

The Bombay High Court Wednesday dismissed a petition by the Britain-based global mobile giant Vodafone, challenging a $1.7-billion tax notice served on the company related with the acquisition of majority stake in an Indian company last year for $11.1 billion.
Source: IndiaeNews.com: Business News | 3 Dec 2008 | 12:03 pm

Metro Cash and amp; Carry opens first store in Kolkata

Metro Cash and amp; Carry, the Indian arm of German wholesaler Metro AG, Wednesday opened its first outlet here, nearly two months after the company was granted licence to sell farm commodities and other food items in West Bengal.
Source: IndiaeNews.com: Business News | 3 Dec 2008 | 12:02 pm

Directionless equities markets end marginally in green

After a day of volatile trading, Indian equities markets finished nearly flat with a key index closing just 8 points or 0.09 percent higher than its previous close Tuesday.
Source: IndiaeNews.com: Business News | 3 Dec 2008 | 12:00 pm

Vodafone case: HC rules in favour of IT dept - Moneycontrol.com

India Infoline.com

Vodafone case: HC rules in favour of IT dept
Moneycontrol.com - 1 hour ago
The Bombay High Court has ruled in favour of the Income Tax Department in the crucial Vodafone case. The IT department had slapped a USD 1.7 billion tax notice on Vodafone after it purchased Hutchison's stake in Hutch Essar for USD 11 billion.
Vodafone to move to SC over tax matter with IT dept Economic Times
Vodafone loses IT case, to move SC NDTV.com
Business Standard - India Infoline.com - Indlaw.com - Reuters UK
all 40 news articles

Source: Google News India - Business | 3 Dec 2008 | 12:00 pm

Spicejet says no lasting drop in traffic after attacks

MUMBAI (Reuters) - Budget carrier Spicejet Ltd has seen no lasting fall in traffic following terror attacks in Mumbai last week and doesn't expect revenue to be impacted, a top official said.

Source: Reuters: Money News | 3 Dec 2008 | 11:50 am

SEBI extend cross-margin facility to all participants - TopNews

Sify

SEBI extend cross-margin facility to all participants
TopNews - 1 hour ago
The Securities and Exchange Board of India (SEBI) has extended the cross margining facility for all categories of market participants.
SEBI extends cross-margin facility to all participants Economic Times
SEBI extends cross margin facility to all Hindu Business Line
Moneycontrol.com - Times of India - Livemint - Reuters India
all 21 news articles

Source: Google News India - Business | 3 Dec 2008 | 11:48 am

Rice urges Pakistan to act fast on Mumbai attacks

New Delhi: US Secretary of State Condoleezza Rice urged Pakistan on Wednesday to cooperate “fully and transparently” in investigations into the Mumbai attacks that have roiled India-Pakistan relations.

“This is the time for everybody to cooperate and do so transparently, and this is especially a time for Pakistan to do so,” Rice told a press conference in New Delhi.

India has said most, if not all, the 10 militants who rampaged through its financial capital killing 171 people were from Pakistan, including the one survivor.

It has threatened to pull out of a nearly five-year-old peace process between the nuclear rivals if Pakistan fails to act swiftly against those responsible.

Rice cut short a visit to Europe and flew to India as tensions soared in south Asia. She is expected to visit Pakistan as well, officials in Islamabad said.

“We have to act with urgency, we have to act with resolve and I have said that Pakistan needs to act with resolve and urgency and cooperate fully and transparently. That message has been delivered and will be delivered to Pakistan,” Rice said.

Pakistan President Asif Ali Zardari said he doubted the Indian claims that the surviving gunman was Pakistani.

Zardari also signalled he would not accept an Indian demand to hand over 20 of its most wanted men that New Delhi says are living in Pakistan, saying if there was any evidence, they would be tried by his country’s judiciary.

“I don’t want to get into the specifics of what Pakistan may or may not do, but I am going to take as a firm commitment Pakistan’s stated commitment to get to the bottom of this and to know these are enemies of Pakistan as well,” Rice said.

Rice said the attacks in Mumbai bore hallmarks of al Qaeda.

In other efforts to ease tensions between India and Pakistan, the top U.S. military commander flew into Islamabad.

Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, will hold talks with the country’s civilian government and its powerful military, officials said.

India has long said Pakistan is unable or unwilling to act against anti-India militant groups there. The latest attacks risk unravelling improved ties between the adversaries, who have fought three wars since independence from Britain in 1947.

A large protest was planned in Mumbai on Wednesday night by residents more angry at what they see as a huge government security failure than Pakistani involvement.

With an election due by May, Prime Minister Manmohan Singh is under pressure to craft a muscular response to opposition criticism, which has intensified since the attacks, that his ruling Congress party coalition is weak on security.

Foreign Minister Pranab Mukherjee said military action was not being considered but later warned that a peace process begun in 2004 was at risk if Pakistan did not act decisively.

Congress party head Sonia Gandhi on Wednesday travelled to the ceasefire line in Kashmir, a mountainous region over which India and Pakistan have fought for over half a century.

“India wants peaceful relations with all its neighbours, but this should not be taken as a weakness,” Gandhi told an election rally.

A deterioration of ties could also put US counter-terrorism efforts in the region at risk - Islamabad has said the tensions may force it to shift troops from operations against al Qaeda militants on the Afghanistan border to the frontier with India.

India and Pakistan were on the brink of a fourth war in 2002, just a few years after both demonstrated nuclear weapons capabilities, following an attack on India’s parliament by Islamist militants.

They pulled back after frantic diplomacy by the United States and other allies.

Source: Home - Livemint.com | 3 Dec 2008 | 11:46 am

NSE justifies keeping FTIL under ‘watch list’

New Delhi: National Stock Exchange (NSE), one of the two exchanges where the currency futures are traded, has justified its decision to keep Financial Technologies, promoter of MCX-SX, under ‘watch list´ saying that there is a ‘solid reason’ behind this.

Multi-commodity Exchange-SX is the other bourse where currency futures are traded.

When contacted, an NSE spokesman K. Hari said: “It is an issue between exchange and software vendor. There has to be a solid reason for keeping FTIL under watch list. We will let you know through official release. Right now, we do not want to comment on this issue.”

NSE about two months back had denied permission for a software developed by Financial Technologies for currency futures and kept the firm under ‘watch list´.

On its part, the Financial Technologies (India) has slapped a legal notice on NSE for keeping its under ‘watch list´.

Financial Technologies is the technology vendor whose software NSE has been using to trade in equity, cash and futures and options for a decade.

MCX officials claim that NSE has taken arbitrary decision and has not even provided reasons for keeping for its decision.

“They have no problem with our software on which runs equity, cash, and F&Os. And we do not know why it is not giving permission for currency futures,” FTIL spokesman Suman Das Sharma said.

He said that in the mid-October, FTIL received a letter stating that it is been kept under watch list. “We have given a legal notice asking under what circumstance FTIL is been kept under watch list. What does ‘watch list´ mean and why it has denied their service for currency futures,” he said.

API is interface platform between brokers and the exchange. As MCX-SX is competitor of NSE in currency futures, NSE did not use the software developed by FTIL and instead authorised Bangalore-based Omnesys Technologies for providing software for currency futures.

Omnesys is an empanelled vendor on both NSE and the BSE for providing trading solutions to their members.

The contention of FTIL is that due to rejection from NSE, brokers will have to work on two terminals — one separately for NSE currency futures while another for all others including equity, commodities and F&Os.

“We may not incur a major financial loss due to rejection from NSE,” Sharma said.

According to experts, FTIL would lose out about Rs1 crore a year as it charges about Rs25,000 as software fee plus annual maintenance charges. NSE has about 400 members in the currency futures, they added.

NSE started currency futures trading on 29 August and MCX-SX on 6 October. The daily turnover in the currency futures market is about Rs2,000 crore, with both exchanges sharing about half of the business each.

Source: Home - Livemint.com | 3 Dec 2008 | 11:45 am

Tata Steel net profit increases by 213% - TopNews

TopNews

Tata Steel net profit increases by 213%
TopNews - 2 hours ago
Various cost cutting measures taken by TATA Steel has improved its margin in the July-September period. The company witnessed 213% increase in the net profit for the second quarter of current financial year despite slow demand and tough financial ...
Tata's Corus seeks govt funds for work hour cuts Reuters India
Higher prices, cost control lift Tata Steel net 213% Economic Times
Hindu Business Line - Hindu - Bloomberg - Business Standard
all 173 news articles

Source: Google News India - Business | 3 Dec 2008 | 11:43 am

Mkts close flat amid extreme volatility, weak global cues - Moneycontrol.com

Sify

Mkts close flat amid extreme volatility, weak global cues
Moneycontrol.com - 2 hours ago
It was an extremely volatile session amid weak European indices and US markets futures. The benchmark indices ended flat in today's session after trading range bound throughout the day.
Sensex ends flat; Tata Steel, Jaiprakash Associates gain Economic Times
Market ends flat; Tata Steel surges 10% Myiris.com
India Infoline.com - TopNews - IBNLive.com - Sify
all 278 news articles

Source: Google News India - Business | 3 Dec 2008 | 11:41 am

Vodafone loses India tax case, can appeal

MUMBAI (Reuters) - The Bombay High Court on Wednesday dismissed a petition against a $2 billion tax bill relating to Vodafone Plc's purchase of a mobile phone operation in India in 2007, the British firm's tax consultant said.

Source: Reuters: Money News | 3 Dec 2008 | 11:34 am

Bihar clears investment proposals worth Rs.910 bn in three years

In a clear sign of the 'changing economic environment' in the state, the Bihar government has cleared 156 investment proposals worth Rs.910 billion in the last three years, Industries Minister Dinesh Chandra said Wednesday.
Source: IndiaeNews.com: Business News | 3 Dec 2008 | 11:32 am

Tata Teleservices launches operations in Jammu and Kashmir

Tata Teleservices Ltd (TTSL), one of the leading CDMA service providers in the country, Wednesday launched its operations in Jammu and Kashmir with an initial investment of Rs.1 billion.
Source: IndiaeNews.com: Business News | 3 Dec 2008 | 11:31 am

Equities end marginally in green after volatile trading

Lockheed Martin initiative receives government boost

US aerospace major Lockheed Martin's India Innovation Growth Programme (IIGP) has received a qualitative boost with a key government department coming on board to promote entrepreneurship in the country.
Source: IndiaeNews.com: Business News | 3 Dec 2008 | 11:30 am

M&A guidelines for insurance sector by fiscal-end - Livemint

Moneycontrol.com

M&A guidelines for insurance sector by fiscal-end
Livemint - 2 hours ago
PTI New Delhi: In order to encourage consolidation in the private sector insurance industry, the regulator IRDA has said that it would come out with a framework for mergers and acquisitions (M&A) for the sector by the end of current fiscal.
UPDATE 1-India insurance could grow 17 pct this FY - IRDA Reuters India
Insurance pool to go above Rs 750cr post M'bai terror: IRDA Moneycontrol.com
India Infoline.com - Hindu Business Line - Thaindian.com - Reuters India
all 18 news articles

Source: Google News India - Business | 3 Dec 2008 | 11:26 am

HIV/AIDS & the workplace: Are we doing enough?

According to a 2005 World Economic Forum (WEF) survey of 117 countries, 46% of executives expressed concern over the impact of HIV/AIDS on their operations. Yet only 9% of firms had conducted a quantitative HIV/AIDS risk assessment, only 18% had policies addressing discrimination (in terms of promotion, pay or benefits) based on HIV status.

The report concluded that businesses need to develop robust HIV/AIDS programmes to address discrimination and access to treatment as root problems.

Also See

HIV/AIDS awareness posters (1 and 2)

CII/IBT’s HIV/AIDS policy for industry (PDF)

The majority of firms (58%) in areas where national HIV prevalence exceeds one in five persons have formal HIV/AIDS policies. Where prevalence drops below this figure, though, very few firms (20%) have a policy; if there is one, it is more likely to be informal. In India, low risk does not translate into low numbers. At the India Economic Summit in 2006, Union health minister Anbumani Ramadoss noted the 0.92% prevalence rate represented 5.2 million people.

HIV strikes at work

A 2005-06 Global Health Initiative study found only 11% of Indian firms had any written policy on discrimination based on HIV status

We stand at the tipping point on the HIV/AIDS epidemic scale. Close to four in every 1,000 adult Indians are estimated to be infected—according to government-run National AIDS Control Organisation (NACO). It would appear to be obvious that workplace interventions are now necessary.

After all, HIV/AIDS is most prevalent in the age group that comprises the economically active population. Statistics from Population Services International (PSI)—a non-profit social marketing organization based in Washington, DC, that also works with Indian companies—say 90% of the population affected by HIV/AIDS is in the 15-49 age group.

“HIV/AIDS is a workplace issue as it affects people in the prime of their working life—it can adversely affect workers and their families, enterprise performance and national economies,” says S. Mohammed Afsar, technical specialist (HIV/AIDS), South Asian region, International Labour Organization (ILO).

Which is why workplaces provide an ideal entry point for prevention and care programmes. “Some Indian workplaces have realized this, but workplace response to HIV/AIDS needs to be strengthened,” adds Afsar.

Also Read Corporate initiatives on HIV/AIDS

Figures up to November show 12 companies (Gujarat Ambuja Cement Ltd, PepsiCo, SRF Group, Ballarpur Group of Industries Ltd, Transport Corp. of India Ltd, Apollo Tyres Ltd, Crompton Greaves Ltd, Hindustan Unilever Ltd (northern region), Jubilant Organosys, SAB Miller, JK Tyres Ltd, and Sona Koyo Steering Ltd) signed on for the ILO-corporate group partnership programme, covering 1,23,441 workers (including 64,506 contractual workers). Each company commits to a workplace policy, and to take up the programme at all locations, to reach at least 5,000 employees (including contracted workers).

Still, all too few companies in India have serious workplace programmes. The 2005-2006 Global Health Initiative study by the WEF included 100 Indian firms, and found only 11% had any written policy to combat discrimination based on HIV status. About 31% reported having an informal policy, while 52% had no policy. Awareness about HIV/AIDS among workers remains alarmingly low, at about 40-50%. The perception of personal risk among workers is also quite low. Indian Business Trust for HIV/AIDS, a unit of the Confederation of Indian Industry, says its programmes cover 2,200 companies. However, only 994 have signed the workplace policy.

Yet it is easy to piggyback such initiatives on existing ones. Ugam Solutions, based in Mumbai, provides market research, analytics and online marketing services to international clients. For its workforce of 800 across Mumbai, London, San Francisco and Chicago, Ugam conducts regular health check-ups and blood donation drives. An HIV status check is included in both.

Mphasis, an electronic data systems (EDS) company that offers voice and transaction-based BPO services, has centres in Bangalore, Mangalore, Pune, Mumbai, Noida, Ahmedabad and Puducherry. “Induction sessions for new recruits also include inputs on HIV/AIDS awareness,” says Meenu Bhambani, manager, community initiatives, Mphasis.

Policy of awareness

Dedicated awareness programmes and a robust HIV policy are a key first step, at least acknowledging the problem. Bangalore-based Sterling Commerce (an AT&T company) runs a campaign titled What you don’t Know Can Hurt You. Nisha Gopinath, senior manager, human resources, says, “Most of us would like to think a disease like AIDS can’t happen to us or to anyone we know, but unfortunately it can and does happen to all kinds of people.” Employees learn about the symptoms of HIV/AIDS, ways to prevent its spread, misconceptions about AIDS, how to get tested and why, and crucially, how to respond if someone they know tests positive.

Texport Industries Pvt. Ltd, a garment manufacturer and exporter based in Bangalore, has a workplace policy based on the ILO code of practice on HIV/AIDS. “(It) focuses on non-discrimination, continuation of employment, right to information on HIV/AIDS,” says S.W.H. Zaidi, vice-president, human resources.

Helping hands for HIV

Various non-profit organizations help initiate such programmes in workplaces. ILO, for one, has a three-phase project in India for establishing sustainable national action on HIV/AIDS prevention, care and support at work.

PSI works with the private sector to address health issues in at least 60 developing countries. In India, PSI works with 100 companies to promote Connect, an HIV/AIDS intervention programme. It has also launched a group insurance scheme for people living with HIV, in collaboration with Star Health Insurance.

Texport, with a workforce of 11,000 (90% women), used PSI Connect to train 20 “master trainers” among its employees, who in turn educated 200 “peer educators” on transmission and treatment of HIV/AIDS. These employees are educating other workers. The plan is to reach at least 80% of the workers this year.

Mphasis, too, trained 30 “master trainers” through PSI Connect. Public sector enterprise Bangalore Metropolitan Road Transport Corporation has also signed on.

Act against HIV/AIDS

Here is a ready reckoner on introducing an HIV/AIDS intervention programme at your workplace

1. How to start: Contact NACO or State AIDS Prevention and Control Societies in your region for a start-up model. ILO, CII and NGOs also offer technical assistance.

(For details, see ‘CONTACT’, bottom left)

2. How much it will cost: Depends on the model .—a basic awareness and advocacy programme (many organizations offer free technical assistance for these), or one with added services such as anti-retroviral therapy (ART) and voluntary testing. Companies report an annual outlay of about Rs2-5 lakh for 2,000-5,000 employees (for the awareness and advocacy model).

3. What is included: Initial survey of all employees to gauge awareness and mindset, master trainer and peer educator training, role-play sessions and behaviour modification assessment are common components.

4. How much time it will take: This is no one-day or weekend seminar, but an ongoing effort. Also, to keep up with staff turnover, training needs to be continuous. Companies that already have HR training programmes in place can easily weave an HIV/AIDS module into their calendars.

5. Benefits: Direct benefits may include reduced absenteeism and increased productivity. In terms of corporate social responsibility, your reach can extend far and wide. A company may have 1,500 employees, but the programmes can cover the entire contractual worker fraternity (in some cases, as many as 50,000). A good example is Pepsi, which covered most of its bottlers and supply chain through the ILO programme).

Write to us at businessoflife@livemint.com

******************

CONNECT

Contact

Get help on HIV/AIDS initiatives for the workplace

• NACO (National AIDS Control Organization), at www.nacoonline.org

• SACS (State AIDS Prevention and Control Societies) — See ‘Quick Links’ on the NACO website

• ILO (International Labour Organization), HIV/AIDS India Project, at www.ilo.org/hivaidsindia — ILO has card games and posters, and downloadable resources for employers

• CII (Confederation of Indian Industry), at www.ciionline.org — Under the ‘Strategic Partners’ tab, find the link to IBT

• IBT (Indian Business Trust) for HIV/AIDS, at www.indianbusinesstrust.org

• PSI (Population Services International), at www.psi.org/where_we_work/india.html Staff Writer

Applaud

World Disability Day is on 3 December. The National Centre for the Promotion of Employment for Disabled People honours those working for equal opportunities for the disabled through the 10th NCPEDP-Shell Helen Keller Awards. This year’s winners are:

Best employers: • Godrej & Boyce Mfg. Co. Ltd • IBM India Pvt. Ltd • ITC Welcom Group • Mphasis, an EDS Company • Noida Deaf Society • PepsiCo India Holdings Pvt. Ltd.

Role models: • Atul Ranjan Sahay, senior manager (improvement initiatives), Tata Steel Ltd, Jharkhand • Hari Raghava, solution specialist (banking), IBM, Mumbai • S. Amuthashanthy, managing trustee, Thiyagam Women Trust, Madurai • Shivani Gupta, director, AccessAbility, Delhi • Radhike Khanna, vice principal, SPJ Sadhana School, Mumbai • Shilpi Kapoor, founder-director, BarrierBreak Technologies, Mumbai. Staff Writer

Know

Coal consumption causes at least €360 billion ($465 billion, around Rs23.3 trillion) worth of damage a year to human health and the environment, by warming the planet and increasing the risk of respiratory illnesses, says CE Delft, an environmental consultant based in the Netherlands. Maartje Sevenster, the study’s lead author and an environmental consultant at CE Delft, said this should be taken into account when nations plan how to generate electricity. The study was sponsored by environmental interest group Greenpeace. Power plants running on coal and oil produce more heat-trapping pollutants than natural gas, nuclear fuel or river flow. Bloomberg

Source: LatestNews-Home - Livemint.com | 3 Dec 2008 | 11:22 am

Sensex ends flat, realty, banking shares gain

Mumbai: In a roller-coaster trade, the benchmark Sensex on the Bombay Stock Exchange closed flat on Wednesday after two days of selling, though interest rate sensitive realty and banking shares made handsome gains.

The bellwether index closed at 8,747.43 points, up by a marginal gain of 8.19 points from its previous close.

Marketmen said there were intermittent bouts of buying by funds throughout the day but every surge was followed by profit selling.

They said gloomy outlook on economy continued to dominate and fears of contracting demand for services of outsourcing companies also loomed large.

IT stocks, led by Infosys Technologies suffered major losses on apprehensions that recession in the U S would impact the software export business. Indian software companies get nearly 50% of their revenues from American markets.

The barometre after trading higher by nearly 115 points in the opening trade fell steeply barely one hour later to trade 106 points lower. And then throughout the session the index oscillated between positive and negative territories.

While profit selling pulled down the Sensex, brokers said the key index was up in opening trade on positive global cues.

The 30-share index moved between 8,601.41 and 8,854.81 points.

The wide-based National Stock Exchange index Nifty, on the other hand, closed lower by 1.35 points at 2,656.45.

While the realty and banking indices rose on anticipation of fiscal and monetary package by the Centre to give a booster to the economy, IT and tech share were major losers.

Source: Home - Livemint.com | 3 Dec 2008 | 11:20 am

Hero Honda sees sales under further pressure

MUMBAI (Reuters) - Hero Honda Motors Ltd, India's largest motorbike maker, sees sales under further stress now that a series of festivals is over unless personal borrowing becomes cheaper, a senior company executive said.

Source: Reuters: Money News | 3 Dec 2008 | 11:15 am

Average AUM falls 7% in November 2008 - Myiris.com

India Infoline.com

Average AUM falls 7% in November 2008
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The average assets under management (AUM) of the mutual fund industry fell by 7% to Rs 4020.29 billion in November 2008 as compared to the previous month.
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Source: Google News India - Business | 3 Dec 2008 | 11:03 am

GM to slash up to 31,500 jobs in US

Chicago: General Motors (GM) told lawmakers that it plans to cut up to 31,500 more jobs in the US, as it confronts a severe slump that has it begging Congress for a $18-billion bailout.

GM said on Tuesday, 2 December, it planned to reduce its total US employment from the current level of 96,537 people to between 65,000 and 75,000 salaried and unionized workers by 2012.

The total number of US plants would be cut to 38 in 2012 from 47 in 2008.

GM has already slashed its workforce nearly in half from the 2000 levels of 191,465 people. The company operated 59 powertrain, stamping and assembly plants in the US in 2000.

The job cuts were detailed in a report GM presented to Congress in hopes of securing government-backed, low-cost loans.

GM said it expects to be “fully competitive” with Toyota on wage costs for “both current workers and new hires” by 2012 due to “additional changes to be negotiated” with its main union, productivity improvements, turnover rates and the planned cuts.

A landmark labour agreement reached last year has lowered GM’s total costs for new workers to $25-35 an hour compared with Toyota’s average US labour cost of between $45 and $50 per hour, GM said.

“The operating and capital restructuring elements will significantly improve the company’s profitability and cash flow for the long term, and enable full repayment of any temporary federal assistance by 2012” in the event US auto sales remain at or above 12 million vehicles a year, GM said in the plan.

Source: Home - Livemint.com | 3 Dec 2008 | 10:55 am

GM to slash up to 31,500 jobs in US

Chicago: General Motors (GM) told lawmakers that it plans to cut up to 31,500 more jobs in the US, as it confronts a severe slump that has it begging Congress for a $18-billion bailout.

GM said on Tuesday, 2 December, it planned to reduce its total US employment from the current level of 96,537 people to between 65,000 and 75,000 salaried and unionized workers by 2012.

The total number of US plants would be cut to 38 in 2012 from 47 in 2008.

GM has already slashed its workforce nearly in half from the 2000 levels of 191,465 people. The company operated 59 powertrain, stamping and assembly plants in the US in 2000.

The job cuts were detailed in a report GM presented to Congress in hopes of securing government-backed, low-cost loans.

Source: World Business - Livemint.com | 3 Dec 2008 | 10:55 am

Bumpy ride ahead, admit Maruti MM

Rajesh Jejurikar, COOAuto Sector, Mahindra Mahindra, said, November has been bad and December is expected to be worse for the auto sector due to nonavailability of finance and slackening demand. This pessimism is shared by RC Bharghav, Chairman, Maruti, who feels that buyer sentiment is affected by economic uncertainty and liquidity crunch.
Source: Moneycontrol Top Headlines | 3 Dec 2008 | 10:46 am

Indian insurance sector to grow 17% this FY: IRDA

Reuters

New Delhi: India’s insurance sector is expected to grow 17% in 2008-09 fiscal year if the economy expands at 7.6%, Insurance Regulatory and Development Authority (IRDA) chairman J. Hari Narayan said on Wednesday.

He also told an insurance conference that there was no fear of job losses in the sector due to the global economic slowdown. The regulator is expected to finalize fresh rules on mergers and acquisitions by March 2009, he added.

In October, the federal cabinet approved changes to insurance laws and proposed raising the foreign investment limit to 49% from the present 26%.

India has 21 life and 20 general insurers. Some joint ventures include Tata AIG, Bajaj Allianz, ICICI Prudential, SBI Life, HDFC Standard Life, Birla Sunlife, Max New York Life and Bharti AXA Life.

Life insurers grew their business by 23.3% to Rs930 billion in 2007-08 fiscal year, while general insurers posted growth of about 14% in premium income to Rs298 billion, according to IRDA data.

Source: Home - Livemint.com | 3 Dec 2008 | 9:28 am

US car makers seek $34 bn bailout

Facing imminent bankruptcy, the top three American automobile majors - General Motors, Chrysler and Ford - have sought a $34 billion bailout package from the US Congress.
Source: Daily News & Analysis: Money News | 3 Dec 2008 | 9:19 am

British Airways in merger talks with Qantas

In a bid to tackle the global credit crunch, British Airways is in merger talks with major international carriers, Australia's Qantas in particular, to create a global super airline.
Source: Daily News & Analysis: Money News | 3 Dec 2008 | 9:18 am

Now a Yahoo bid from former AOL CEO

After a failed take-over bid by Microsoft and a partial technical collaboration with competitor Google, a former AOL chief, Jonathan Miller, is now eyeing to take over Yahoo Inc.
Source: Daily News & Analysis: Money News | 3 Dec 2008 | 9:16 am

Insurance sector could grow 17 pct this FY - IRDA

NEW DELHI (Reuters) - India's insurance sector, so far unaffected by the global financial crisis, will grow 17 percent in 2008/09 if the economy continues to expand at the pace it did in the September quarter, the regulator said on Wednesday.

Source: Reuters: Money News | 3 Dec 2008 | 9:10 am

With lesson learnt from Mumbai, capital's hotels tighten security

Inquisitive guards, metal detectors, intensive baggage checking and body frisking will now await visitors to all star hotels in the national capital as managements have beefed up security in the wake of the Mumbai terror attacks.
Source: IndiaeNews.com: Business News | 3 Dec 2008 | 9:02 am

India, China revive ties in medicine in memory of Kotnis

The black-and-white 1946 Bollywood classic 'Dr.Kotnis Ki Amar Kahani' starring V. Shantaram still evokes nostalgic memories.
Source: IndiaeNews.com: Business News | 3 Dec 2008 | 9:00 am

3G spectrum eauction to garner Rs 3035K cr

Independent agency, NM Rothschild had scheduled a presentation on eauction document of 3G spectrum and broadband wireless services to the interministerial committee. It is said to be a crucial step for 3G auction, as the auction is expected to raise at least Rs 30,00035,000 crore.
Source: Moneycontrol Top Headlines | 3 Dec 2008 | 8:52 am

Kingfisher gets nod for 9 more overseas flights

Mumbai: Kingfisher Airlines India’s No 2 private carrier, on Wednesday said it received approval from the federal government to operate flights on nine international routes, sending its shares up.

Kingfisher has received approvals to operate Mumbai-London, Kolkata-Dhaka, Kolkata-Chittagong, Mumbai-Hong Kong, Mumbai-Singapore, Chennai-Colombo, Bangalore-Colombo, Bangalore-Bangkok and Mumbai-Bangkok flights, a spokesman said.

“The time frame for launch of these services will be announced progressively,” he added.

He did not specify if the flights would operate on a daily basis. “The details are being worked out,” he said.

The news sent Kingfisher’s shares up as much as 9.8%. Their shares are trading up 7.04% at Rs28.90.

Kingfisher currently operates daily flights between Bangalore and London, its only foreign route.

The Civil Aviation Ministry had given the nod for Kingfisher to operate in international routes in August this year.

Source: Home - Livemint.com | 3 Dec 2008 | 8:32 am

Kingfisher gets nod for 9 more international flights

MUMBAI (Reuters) - Kingfisher Airlines India's No 2 private carrier, on Wednesday said it received approval from the federal government to operate flights on nine international routes, sending its shares up.

Source: Reuters: Money News | 3 Dec 2008 | 8:02 am

MySpace streams online video to smart phones

San Francisco: MySpace on Tuesday is launching a mobile video streaming service that lets members of the global social-networking website watch favored snippets on the move.

News Corp-owned MySpace teamed with video coding specialty firm RipCode to create a way to let people use Internet-linked “smart phones” to watch videos they uploaded to MySpace profiles or mark as “favorites” at the website.

“Video is a natural next step for us in mobile,” said Mobile for MySpace vice president John Faith.

“MySpace will continue to grow our video library as we increase delivery channels in order to keep pace with our users’ accelerating desire for video consumption.”

MySpace says its new video streaming service works with most popular handset models but has yet to be adapted to Apple’s hot-selling iPhones.

Apple uses “progressive downloads” of video in iPhones, meaning digitized data must be downloaded to handsets before viewing can commence.

The free service, which is in a beta test phase, uses RipeCode technology to stream video in real time to individual mobile devices on-demand instead of calling on people to download files for storage in handset libraries.

“As the volume of video grows and the number of mobile devices supporting video continues to expand, companies have to find alternative solutions to deliver content to their customers across multiple screens,” said RipeCode chief executive Brendon Mills.

MySpace Mobile at m.myspace.com boasts about 10 million monthly users.

Source: Tech News - Livemint.com | 3 Dec 2008 | 7:01 am

Yahoo shares climb on hopes for $30 bn takeover bid

San Francisco: Yahoo Inc.’s stock rallied on Tuesday on a report that AOL’s former chief executive believes he can raise enough money in a worsening recession to buy the struggling Internet company for as much as $30 billion.

The Wall Street Journal raised investor hopes with a story that said Jonathan Miller, who stepped down as AOL’s top exec two years ago, is trying to secure financing to make a bid for Yahoo at $20 to $22 per share, or $28 billion to $30 billion.

The story posted on the Journal’s Web site cited unnamed people familiar with the matter.

Branding the report a “rumor,” Yahoo spokeswoman Tracy Schmaler declined to comment. Miller didn’t immediately respond to interview requests.

Yahoo shares rose 76 cents, or more than 7%, to close at $11.50, reflecting hopes that a new suitor may emerge for the Sunnyvale-based company. The surge left Yahoo with a market value of just under $16 billion.

Given his past experience running AOL, Miller has the connections and savvy needed to turn around Yahoo, said Standard & Poor’s Internet analyst Scott Kessler.

But Miller faces a huge hurdle: A credit crunch and the prospect of the deepest recession in a generation has spooked lenders and investment funds so badly that they have shown little interest in making big bets on risky propositions like this.

Speculation about Yahoo’s future has intensified since rival Google Inc. pulled out of a proposed advertising partnership a month ago. Yahoo had been counting on the alliance to boost its profits and placate shareholders incensed about the company’s rebuff of a $47.5 billion takeover bid from Microsoft Corp.

The guessing game took a new turn two weeks ago when Yahoo founder Jerry Yang revealed his plans to step down as CEO as soon as a replacement can be found.

Yahoo also has been discussing a possible combination with AOL for months, but the two sides haven’t been able to agree on terms.

Although Yahoo’s Web site remains among the most popular on the Internet, the company’s profits have been dwindling during the past three years. The recession is expected to make a comeback even more difficult by depressing spending on the Internet ads that generate most of Yahoo’s revenue.

The challenges have devastated Yahoo’s stock price, leaving it at a fraction of Microsoft’s last buyout offer of $33 per share.

The downturn has become so severe that investors are placing little value on Yahoo’s US operations. Kessler estimates that just the company’s cash and Asian assets are worth about $8 per share, making Yahoo an increasingly takeover target for opportunistic investors.

Source: Tech News - Livemint.com | 3 Dec 2008 | 6:37 am

Rice arrives to ease Indo-Pak tussle over Mumbai attacks

Mumbai: US Secretary of State Condoleezza Rice arrived in New Delhi on Wednesday in Washington’s effort to ease tensions in the region after a three-day terrorist attack that left 171 people dead in Mumbai.

Rice, America’s top diplomat, she is to meet with Indian Prime Minister Manmohan Singh and other top officials. US officials have pointed the finger at Pakistani-based groups in the attacks and have pressured Islamabad to cooperate in the investigation.

As evidence of the militants’ links to Pakistan mounted, Mumbai police commissioner Hasan Ghafoor said on Tuesday that ex-Pakistani army officers trained the group some for up to 18 months and that they set out by boat from the Pakistani port of Karachi. He denied reports that the men had been planning to escape from Mumbai after their rampage.

“It appears that it was a suicide attack,” Ghafoor said, providing no other details about when the gunmen left Karachi, or when they hijacked the trawler.

The revelations came as a senior Bush administration official said India had received a warning from the United States that militants were plotting a waterborne assault on Mumbai. The official, who spoke on condition of anonymity because of the sensitive nature of intelligence information, would not elaborate on the timing or details of the US warning.

The Indian government is already facing intense public accusations of security and intelligence failures after suspected Muslim militants carried out the 60-hour siege across Mumbai last week.

Indian Foreign Minister Pranab Mukherjee also said his country gave a list of about 20 people including India’s most-wanted man to Pakistan’s high commissioner to New Delhi on Monday.

India stepped up the pressure on its neighbor after interrogating the only surviving attacker, who told police that he and the other nine gunmen had trained for months in camps in Pakistan operated by the banned Pakistani militant group Lashkar-e-Taiba.

India has demanded action from Islamabad and summoned Pakistan’s high commissioner to India on Monday night, giving him a list of “those persons who are settled in Pakistan and who are fugitives of Indian law,” said the Indian foreign minister, Mukherjee.

India presented Islamabad with a similar list after the 2001 attack on India’s parliament. But while tensions then between the nuclear-armed nations escalated so rapidly that many feared imminent war, the talk this time has been more subdued.

Source: Home - Livemint.com | 3 Dec 2008 | 6:32 am

Rupee higher by 28 paise against dollar

Mumbai: The rupee opened higher by 28 paise against the US currency on Wednesday on dollar selling by exporters and banks after global equity markets registered early gains.

The domestic currency opened at Rs49.87/88 against dollar, a gain of 28 paise over its previous close, at the Interbank Foreign Exchange (Forex) market.

Dealers said that rupee gained on dollar selling by banks and exporters after a surging trend in global equity markets raised hopes of a rally in domestic stocks.

The dollar falling against the euro and other Asian currencies also supported the rupee sentiments.

Asian markets on Wednesday opened on a positive note tracking a strong overnight rally in the US stocks amid hopes that the US government will rescue major troubled automakers.

Rupee on Tuesday had closed 13 paise higher against the dollar on suspected central bank intervention in support of the local currency.

Source: Home - Livemint.com | 3 Dec 2008 | 5:44 am

British Airways in merger talks with Qantas

London: British Airways PLC and Australia’s Qantas Airways Ltd. said they are holding talks about a potential merger, sparking hopes of consolidation in the hard-hit aviation industry.

The two companies both issued statements on Tuesday saying they are exploring a “potential merger” with each other “via a dual-listed company structure.”

Neither BA nor Qantas provided any further details. In their statements to the London Stock Exchange and the Australian Securities Exchange, the two companies said: “There is no guarantee that any transaction will be forthcoming and a further announcement will be made in due course, if appropriate.”

BA’s chief executive Willie Walsh has long advocated industry consolidation, arguing that closer cooperation will help airlines cut costs in the current difficult economic climate.

BA, the third-largest airline in Europe, is already pursuing a revenue-sharing deal with American Airlines and Spain’s Iberia SA. It said that its discussions with Iberia on a potential merger are continuing.

It provided no further detail on the structure of the potential deal with Qantas but confirmed that talks began in August after it was approached by Australia’s largest airline.

In Sydney, CMC Markets Stockbroking general manager Andrew West said a tie-up between the carriers would be a positive move for Qantas, particularly in currently tough airline market.

“If the deal goes through it will create a formidable airline that has a major share of major routes to the US, UK and Asia,” he said.

British Airways stock jumped after the announcement and closed 12.46% higher at $2.33 at the end of the day.

Shares in Qantas surged as soon as the Australian stock market opened on Wednesday, buoyed by the overnight announcement of the merger talks.

Virgin Atlantic Airways, which has already objected to the BA-American-Iberia tie-up, said that BA was attempting to increase its dominance to the detriment of competition.

“One day it’s Iberia, then it’s American, and now Qantas,” said Virgin Atlantic chief executive Steve Ridgway. “The only strategy BA seems to have is to lock-up some of the busiest routes in the world, against the consumer interest.”

BA and Qantas are already code sharing partners in the Oneworld global alliance, which brings together 10 of the world’s carriers including Japan Airlines.

Analysts have been expecting greater consolidation in the airline industry after the global economic crisis combined with soaring oil prices earlier this year to severely crimp passenger demand.

The International Air Transport Association has reported international passenger traffic declined 1.3% in October compared with 2007, following a 2.9% drop in September, and forecasts industrywide losses of $2.3 billion this year.

The agreement is the closest alliance the trio can form under strict US airline ownership laws that all but rule out a full merger and follows two earlier failed attempts by BA and AMR Corp.’s American to forge closer ties.

Virgin Atlantic claims that proposed deal will seriously damage the competitiveness of the lucrative trans-Atlantic route and increase fares for passengers.

Source: World Business - Livemint.com | 3 Dec 2008 | 4:04 am