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Siemens stock recovers after valuation disclosureSiemens has been in focus ever since it decided to transfer stake in Siemens Information Systems to its parent siemens AG. After the business was transferred the stock price got huge beating falling down by almost 30%. However, the stock is recovering after it disclosed the valuations yesterday.Source: Moneycontrol Top Headlines | 14 Jan 2009 | 5:10 pm Infosys public sector bank shift: An analysisIn keeping with its reputation of high corporate governance standards, Infosys came out with an exhaustive set of disclosures along with its quarterly results. The disclosures show a clear migration of deposits from Indian private sector banks such as Axis Bank, ICICI Banks and HDFC to public sector banks.Source: Moneycontrol Top Headlines | 14 Jan 2009 | 4:39 pm NHAI to put out Rs 70K cr projects by MarchA Didar Singh Member Finance and Senior IAS officer, NHAI proposes to put out 60 road projects worth Rs 70,000 crore between December 2008 and March 2009. He was apprehensive about awarding projects in the current tight liquidity scenario but now sees a noticeable improvement in funding and liquidity in the past one month.Source: Moneycontrol Top Headlines | 14 Jan 2009 | 2:54 pm Do similarities lie between Satyam, BearingPoint?Are there any similarities between Satyam and BearingPoint. Both cases are almost the same and may go on for sometime. Value may not exist in the company. However, client distribution to peers may take time.Source: Moneycontrol Top Headlines | 14 Jan 2009 | 2:27 pm KPMG, Deloitte named new Satyam auditorsUnder fire after the Satyam fraud, auditing firm PricewaterhouseCoopers has been replaced as the company\'s auditors. PwC had been accused of complicity in the scam. Sources in Dow Jones tell Network 18 that KPMG and Deloitte have been finalised as the new auditors.Source: Moneycontrol Top Headlines | 14 Jan 2009 | 1:31 pm UAE banking system outlook negative: Moody'sGlobal rating agency Moody's termed the fundamental credit outlook of the UAE the banking sector as negative, reflecting growing pressures in its operating environment.Source: Daily News & Analysis: Money News | 14 Jan 2009 | 1:05 pm 3G auction case hearing on Jan 21: Trai lawyerA Telecomm Regulatory Authority of India lawyer said the Delhi High Court has directed the Department of Telecom (DoT) to state present status of 3G auction, reports CNBCTV18. The lawyer said the next hearing of the case will be on January 21 and the case concerns the public interest litigation (PIL), which sought stay on 3G auction.Source: Moneycontrol Top Headlines | 14 Jan 2009 | 12:56 pm Sensex climbs 204 pts in early trade !The BSE benchmark Sensex on Wednesday recovered by over 204 points in early trade.Source: Zee News : Business | 14 Jan 2009 | 12:45 pm Govt may allow part of FDI in domestic airlines: Civil Aviation Minister!A proposal to permit foreign airlines to pick up stake in domestic carriers is among the several measures being considered by the government to help the Indian aviation industry overcome the financial crunch.Source: Zee News : Business | 14 Jan 2009 | 12:45 pm Satyam ex-director TR Prasad says open to probe!T R Prasad, former Cabinet secretary and ex-independent director of scandal-hit Satyam Computer Services on Wednesday said, he is in Delhi at present and is ready for interrogation by any investigative agency.Source: Zee News : Business | 14 Jan 2009 | 12:45 pm Citi nods Smith Barney-Morgan Stanley deal!Citigroup Inc agreed to merge its Smith Barney brokerage with Morgan Stanley`s wealth management unit on Tuesday, and is expected to make further asset sales to raise capital and to isolate toxic assets from the rest of the bank.Source: Zee News : Business | 14 Jan 2009 | 12:45 pm Yahoo names Carol Bartz as CEO!Yahoo Inc on Wednesday named Silicon Valley veteran Carol Bartz as its new chief executive.Source: Zee News : Business | 14 Jan 2009 | 12:45 pm Rs 2000 crore government package to bailout Satyam?!Speculation is rife that the govt is considering a package of up to Rs 2,000 crore to bail out the crisis-ridden Satyam Computer but no confirmation could be obtained as Prime Minister attended a review meeting on Tuesday.Source: Zee News : Business | 14 Jan 2009 | 12:45 pm KPMG, Deloitte replace PwC as Satyam`s auditors!Fraud-hit Satyam Computer Services Ltd`s new board has appointed KPMG and Deloitte as the company`s new auditors, replacing PricewaterhouseCoopers.Source: Zee News : Business | 14 Jan 2009 | 12:45 pm Sensex rallies on talk of Ambani settlement - Economic Times
Source: Google News India - Business | 14 Jan 2009 | 12:43 pm Citi plans to shrink itself by one-thirdBogged down by mounting losses, the Citigroup is speeding up efforts to dismantle various parts of the banking behemoth and shrink the company by one-third, say media reports.Source: Daily News & Analysis: Money News | 14 Jan 2009 | 12:43 pm U.S. mortgage applications up as refinancing jumpsNEW YORK (Reuters) - U.S. mortgage applications jumped in the first full week of 2009 as record low interest rates spurred the greatest demand for home refinancing loans in over 5-1/2 years, data from an industry group showed on Wednesday.Source: Reuters: Money News | 14 Jan 2009 | 12:41 pm New dose of edutainment for kidsMumbai: Kids Media India (KMI), a subsidiary of Dubai-based Spacetoon Media Group, is eyeing a revenue of around Rs25 crore for fiscal year 2010 from its ‘Spacetoon Kids TV´channel launched Wednesday in India, a top company official said. The channel is the first of its free-to-air kids edutainment channel. “With this launch, we expect a revenue of around Rs25 crore by March 2010. Though we are the ninth entrant in the market, we are confident that the channel will be well accepted by the audiences,” Kids Media India’s Managing Director and CEO, Rajiv Sangari, told reporters here. The company aims to cater to 360 million kids from pre-school to teens across the country. “There are 360-million kids across the country and they cannot go unnoticed. We will create a niche in the world of kids entertainment,” Sangari said. “By mid-2009, we plan to reach 15 million homes and by end-2009 our target is 20 million homes. By 2010, we look to reach 40 million homes and acquire a 10% marketshare in viewership,” he added. The group plans to first penetrate into ‘A´and ‘B´class cities and after achieving a deep penetration in ‘C´ class cities, will launch programmes in regional languages as well. “The programs would be available in Hindi and later as we penetrate into other regions, we would go for regional languages,” Sangari said. As far as marketing and promotional activities are concerned the group has already invested nearly Rs three crore, he said. Source: LatestNews-Home - Livemint.com | 14 Jan 2009 | 12:41 pm Indians optimistic about job safety, says a studyEmployed Indians are optimistic about their job security even as corporates globally are handing out more pink slips to sail through the tough times, says a report.Source: Daily News & Analysis: Money News | 14 Jan 2009 | 12:40 pm OPEC trying to stabilise oil prices: Saudi ArabiaSaudi Arabia on Wednesday said oil cartel OPEC is trying to calm the volatile oil market through production cuts to stabilise prices remunerative to producers.Source: Daily News & Analysis: Money News | 14 Jan 2009 | 12:35 pm Sri Lanka seeks India's expertise in strengthening tourismSri Lanka Wednesday sought India's help in strengthening tourism to meet the challenges posed by the global meltdown.Source: IndiaeNews.com: Business News | 14 Jan 2009 | 12:31 pm Court seeks response from government on 3G spectrum auctionThe Delhi High Court Wednesday sought a response from the government on auctioning of radio frequency for next generation mobile services, better known as 3G.Source: IndiaeNews.com: Business News | 14 Jan 2009 | 12:31 pm Markets close on a high, short-covering helpsIndian equity markets Wednesday broke the downtrend since the middle of last week, with investors deciding to take profits by short-covering their positions, and a key index ending trade about 3.3 percent above its previous close.Source: IndiaeNews.com: Business News | 14 Jan 2009 | 12:31 pm Wockhardt to market osteoporosis drug - Business Standard
Source: Google News India - Business | 14 Jan 2009 | 12:26 pm JLR to cut 450 more jobsLondon: Buffeted by falling sales and credit crunch, Tata Group-owned Jaguar Land Rover today announced laying off 450 more jobs, including 300 managers. The job losses will also affect 150 salaried agency staff, the company announced. The Tata Group bought the company from Ford in 2008 for £1.7 billion. It has recently sought assistance from the British government to tide over the economic downturn. The company announced that action to cut jobs was to combat the credit crunch and a “severe reduction in demand”. The firm, based in Gaydon, Warwickshire, employs about 15,000 people at plants in Coventry, Solihull, Castle Bromwich and Halewood. Speaking to newspersons, company chief executive David Smith said that he did not expect sales to return to normal levels “for some time”. He said that the firm needed to become more efficient so it could invest in new models and technology when the market improved. He added: “It is only right and proper that our response to the unavoidable impact of the credit crunch and a severe reduction in demand includes actions across all grades and functions in the company. “It is critical that Jaguar Land Rover becomes a more efficient and dynamic organisation to face up to the challenges that we will meet in the years ahead.” The company said managers would not receive any bonuses in 2009 and management pay increases had been deferred until October 1 “at the earliest”. In November, the company had cut 850 agency, IT and engineering staff. Source: LatestNews-Home - Livemint.com | 14 Jan 2009 | 12:23 pm Indian Bank starts first financial counselling centreIndian Bank on Wednesday, said it has established its first FLCC at Dharmapuri in Tamil Nadu to educate people on various financial products and services.Source: Daily News & Analysis: Money News | 14 Jan 2009 | 12:23 pm One97 receives 2nd round funding from Intel Capital & SVB - Moneycontrol.com
Source: Google News India - Business | 14 Jan 2009 | 12:22 pm Siemens stock recovers after valuation disclosure - Moneycontrol.com
Source: Google News India - Business | 14 Jan 2009 | 12:22 pm Not holding back on capex: M&MAuto major Mahindra & Mahindra on Wednesday, said it will not hold back its capex, including the Rs 4000-crore investment for setting up a greenfield plant at Chakan.Source: Daily News & Analysis: Money News | 14 Jan 2009 | 12:22 pm TR Prasad offers cooperation in Satyam probe - India Infoline.com
Source: Google News India - Business | 14 Jan 2009 | 12:20 pm IBM leads race with 4,186 patents in 2008Technology giant IBM leads the patents race for the 16th year in a row, with 4,186 patents granted in 2008 in the US, followed by Samsung and Canon.Source: Daily News & Analysis: Money News | 14 Jan 2009 | 12:18 pm New stamp duty rule worries advertisement industryThe High Court on Wednesday, did not give any relief to the advertising industry, which has filed a petition against new law which levies stamp duty on advertising-related contracts.Source: Daily News & Analysis: Money News | 14 Jan 2009 | 12:17 pm Not lively anymoreNearly five months ago, Google launched Lively, an online world which seemed to have solved all the problems that plagued other virtual environments: The download to enter the world was tiny, moving around Lively was simple, and it gave you the liberty to create your own three-dimensional space. If that wasn’t reason enough, this world was backed by the biggest name on the Internet, Google. In spite of this, on 31 December, the search giant politely told users that it was closing the  Advertisements, anyone? While Lively seemed to have gotten almost everything right, it forgot Google’s most basic tenet: The search giant doesn’t make content. Instead, it sells advertisements on content made by other people, then tracks this content and makes sure it can be found on the Web. Users across the world write blogs on Blogspot, form communities on Orkut and share videos on YouTube, and Google makes money by putting advertisements on all of these; it even trolls your email to ensure that it targets you with ads for something that’s better suited to your needs. Not that it’s not fair trade; the user gets a variety of applications for free, in the hope that he will come across something he would like to buy. The manufacturer gets to sell his product, Google gets paid for a successful click on the ad, the user gets what he wants; everyone goes home happy. This is the most successful model on the Internet; this is what transformed an unlikely search engine, competing with Yahoo!, Lycos, Ask.com and Live search, into the behemoth it is today. And yet Lively didn’t have an advertising solution on it, so there was no way Google could generate any revenue from its online world. Where are the tools? Lively also failed to facilitate users in generating their own content. It was expected to be a user-created universe, yet the user wasn’t given enough tools to create what he wanted. Even these limited tools were primarily used, in the most popular rooms, for sex and violence. This turned off a segment of first-time users, a demographic that Lively was aimed at. On the other hand, veterans of complicated massively multiplayer online role-playing games (MMORPGs) and Second Life just didn’t like the watered-down number of movement and action options that Lively gave. Fleeing members In the end, Lively just didn’t have enough users and no way of converting the numbers into a revenue stream. The economic downturn didn’t help either; Google could go the experimental way and hope to find a way to make money in the distant future, or stick to what it is good at. It simply chose the latter. Yet all isn’t lost. In spite of its shortcomings, Lively did spark something. Soon after Google closed the world, an online petition to restart Lively started circulating on the Web. In fact, a clone of Lively, called ‘NewLively’, sprung up. It’s unclear if this new site has infringed some intellectual property rights. As of now, no legal action has been taken. Although some Lively fans have flocked to this site, the problems of monetization still loom large. By all accounts, it seems free worlds will have to wait for some more time. Write to us at businessoflife@livemint.com Source: LatestNews-Home - Livemint.com | 14 Jan 2009 | 12:13 pm India copper down 2.5 pct as demand woes persist - Reuters India
Source: Google News India - Business | 14 Jan 2009 | 12:11 pm India's SAIL in JV with state firms for coal mines - Reuters India
Source: Google News India - Business | 14 Jan 2009 | 12:08 pm HDFC Bank Q3 net profit up 45% - Economic Times
Source: Google News India - Business | 14 Jan 2009 | 12:05 pm ANALYSIS - Buyout rules easing in Asia to lure money, jobsHONG KONG/SEOUL, Jan 14 (Reuters) - China and South Korea, long ambivalent towards foreign investors, are both set to issue new rules to encourage investment from overseas in 2009 with one simple goal in mind: creating local jobs.Source: Reuters: Money News | 14 Jan 2009 | 12:04 pm Govt to appoint more directors on Satyam board soonNew Delhi: The government is likely to appoint more directors on the board of the crisis-ridden Satyam Computer Services soon. “More directors will be appointed within two days,” a senior official of the ministry of corporate affairs said on Wednesday. The government earlier appointed a three-member board comprising HDFC chairman Deepak Parekh, Nasscom former president Kiran Karnik and past presiding officer of Securities Appellate Tribunal (SAT) C Achuthan to steer the beleaguered company out of the present crisis. Among the probables, the government is considering to appoint noted industry expert and former chairman of the Hindustan Lever (presently Hindustan Unilever) Ashok S Ganguly to the Satyam board. In view of the disclosure by Satyam’s founder-chairman B Ramalinga Raju that company was doctoring account books, the government disbanded the existing board of the IT major and appointed its own nominees. As per the Company Law Board (CLB) decision on Satyam, the board of the IT major can have a maximum of 10 directors. After the first meeting of the newly constituted three-member board on Monday, Parekh had said the board would elect a chairman after more members are appointed by the government to the Satyam board. Corporate affairs minister Prem Chand Gupta, while announcing the three-member board had said, “further appointments to the board may be made subsequently as required”. Source: LatestNews-Home - Livemint.com | 14 Jan 2009 | 12:04 pm India offers Qatar 10 percent stake in PetronetIndia Wednesday offered a 10 percent stake in Petronet LNG Ltd, the state-run procurer of liquefied natural gas (LNG), to Qatar.Source: IndiaeNews.com: Business News | 14 Jan 2009 | 12:00 pm Jaguar Land Rover to cut 450 jobsLONDON (Reuters) - British luxury car manufacturer Jaguar Land Rover announced 450 job losses on Wednesday due to a "severe" reduction in demand for new cars.Source: Reuters: Money News | 14 Jan 2009 | 11:58 am RIL promoter stake rises to 49.03% from 44.80%RIL promoter stake rises to 49.03% from 44.80% for quarter ended December 08 (QoQ).Source: Moneycontrol Top Headlines | 14 Jan 2009 | 11:57 am Govt to appoint more directors on Satyam board shortlyThe government is likely to appoint more directors on the board of the crisis-ridden Satyam Computer Services soon.Source: Daily News & Analysis: Money News | 14 Jan 2009 | 11:53 am ‘Best job in the world’ website crashesMelbourne: Billed as ‘The best job in the world’, to laze on a paradise island in Queensland in Australia for a princely salary of $105,000 has evoked a huge response from across the world leading to the crash of the website where it was advertised. So overwhelming was the response for the caretaker of the Hamilton island in Queensland, the website crashed in just 60 minutes as over 300,000 people visited the site. Aspirants included a Swiss Olympic gold medallist and thousands of other sun-seeking teenagers. The job had been advertised by the tourism department of Queensland which could require the successful applicant to explore the Great Barrier Reef, laze by the beach and make friends with the locals. “We have been flooded with over 300,000 people visiting the website Tuesday in one hour alone and this led to the crash of the site,” Queensland tourism minister Desley Boyle said. The person chosen to be “caretaker” will live rent-free in a multimillion-dollar beachfront villa on Hamilton Island for six months. “This is not a competition, it is a genuine job - and it will be tough for the successful candidate,” Boyle said. “He or she will be required to live (on the island), undertake a range of activities such as swimming, snorkelling, bushwalking and exploring the islands of the Great Barrier Reef.” Eleven finalists from around the world will be chosen and flown to Queensland for an intensive interview process, tourism minister Desley Boyle said. Source: Tech News - Livemint.com | 14 Jan 2009 | 11:47 am Skoda Auto registers 7.1% global growth in 2008Mumbai: Skoda Auto Wednesday said its global sales in 2008 was 674,530 vehicles, up 7% in comparison to 2007. The company’s sales grew primarily in China and Eastern Europe, Skoda said in a statement. The company did not give 2007 figures. “Despite the current difficulties, we have managed to keep positive sales trends in some of our markets. We are going to continue monitoring Russia, China and India,” Skoda Auto Board Member Fred Kappler said. The company in 2008 delivered 59,284 vehicles to China, up 117% than in 2007. It delivered 16,051 vehicles in India for the reporting year, up 31.9% more than previous year. The company sold 3.4 lakh Octavia more than 11.3% in 2007. Its other brands include Fabia and Superb. “We believe that the demand for small vehicles such as the Skoda Fabia will grow worldwide as this category offers financial savings and is in line with the growing environmental awareness,” Kappler said. Source: LatestNews-Home - Livemint.com | 14 Jan 2009 | 11:47 am ‘Best job in the world’ website crashesMelbourne: Billed as ‘The best job in the world’, to laze on a paradise island in Queensland in Australia for a princely salary of $105,000 has evoked a huge response from across the world leading to the crash of the website where it was advertised. So overwhelming was the response for the caretaker of the Hamilton island in Queensland, the website crashed in just 60 minutes as over 300,000 people visited the site. Aspirants included a Swiss Olympic gold medallist and thousands of other sun-seeking teenagers. The job had been advertised by the tourism department of Queensland which could require the successful applicant to explore the Great Barrier Reef, laze by the beach and make friends with the locals. “We have been flooded with over 300,000 people visiting the website Tuesday in one hour alone and this led to the crash of the site,” Queensland tourism minister Desley Boyle said. The person chosen to be “caretaker” will live rent-free in a multimillion-dollar beachfront villa on Hamilton Island for six months. “This is not a competition, it is a genuine job - and it will be tough for the successful candidate,” Boyle said. “He or she will be required to live (on the island), undertake a range of activities such as swimming, snorkelling, bushwalking and exploring the islands of the Great Barrier Reef.” Eleven finalists from around the world will be chosen and flown to Queensland for an intensive interview process, tourism minister Desley Boyle said. Source: Home - Livemint.com | 14 Jan 2009 | 11:47 am NIIT Tech Q3 net down 52% - Business Standard
Source: Google News India - Business | 14 Jan 2009 | 11:46 am Private investment in public equity deals slips over 53% - Economic Times
Source: Google News India - Business | 14 Jan 2009 | 11:45 am Video art catches the eyeNew Delhi: If art is a reflection of life, it is not surprising to find that with the rest of the world moving on to the digital platform, art too is going digital. Artists, painters, photographers, sculptors can be increasingly found experimenting with an art form called video art. International artists like Bill Viola made it famous and Viola continues to be one of the world’s most celebrated video artists. Matthew Barney, Douglas Gordan and Walid Raad are among others that propogated the art. Click here to watch video Increasingly, Indian artists like Subodh Gupta, Ravi Agarwal, Anjum Singh, Manisha Gera, Shivani Agarwal, Pradeep Dasgupta and Dinesh Khanna are also taking to video art. Video art is created by shooting with a camera like one does for a film or a documentary but the similarity ends there. Video art may or may not use actors, dialogues or follow a story line, plot or narrative like cinema or television programmes. Video art may not be made with the intention to entertain. It may be just made to experiment with the digital medium and understand its limitations. The name video art itself was taken from video tape that was the early medium for shooting video art. But with changes in technology, hard disk, CDs, and other forms of digital storage are the ones more in use now. With the growth in the number of artists in India, the number of collectors and exhibitors too are growing. Devi Art Foundation that both displays and collects video art and others like website Wonderwall.co.in too are beginning to display and sell the art form. Wonderwall owner and promoter Ajay Rajgarhia says that though it is early days for the art form in India, he is sure that it will find its niche in time to come. He informs that the range for video art in India currently ranges from between Rs7, 500 and Rs3 lakh. He throws in a caveat though. ”The artists name drives the price. A Subodh Gupta, for instance would command much more,” he says. Source: LatestNews-Home - Livemint.com | 14 Jan 2009 | 11:45 am Mallya dreaming big for Whyte and MackayNew Delhi: Liquor baron Vijay Mallya is playing out the big game to make Scotch whiskey from UB Group’s £595 million acquisition of Whyte and Mackay to be among the top choices by leveraging on UB Group’s distribution network. “All my business strategies are India driven. The acquisition of W&M was done at looking at India as the world’s largest scotch whiskey market potentially and UB Group’s very strong position in distribution,” UB Group chairman Vijay Mallya said. Indicating his intention to create a strong hold in the seven million cases per annum Indian Scotch whiskey market, Mallya said the group’s primary focus would be on India. “My whole philosophy is India centric. I did not buy W&M to sell it in countries which have one and 2% growth,” he said. The company has already initiated the move to revamp the sales of W&M’s whiskey in the domestic market by taking steps such as local bottling and introduction of W&M’s vintage Dalmore brand, which are priced at around Rs3 lakh per bottle across major markets in the country. Local bottling of the Scotch whiskey is aimed at cornering 20% share in domestic market as it would attract lower duties and make the product available at lower price. So far nine brands, including, The Dalmore, Isle of Jura and the eponymous Whyte & Mackay blended Scotch, have been launched in India and United Spirits is making them available in all major domestic markets. Source: LatestNews-Home - Livemint.com | 14 Jan 2009 | 11:45 am Wockhardt to sell Swiss firm's osteoporosis drugMUMBAI (Reuters) - Drug maker Wockhardt Ltd said on Wednesday it signed a deal to sell Swiss firm DSM Nutritional Products AG's branded osteoporosis drug Bonistein in India.Source: Reuters: Money News | 14 Jan 2009 | 11:43 am Qatar oil min says $70 right price for oilNEW DELHI (Reuters) - Oil at $70 a barrel is the right price to keep companies and producers investing in new resources, Qatar's oil minister said on Wednesday.Source: Reuters: Money News | 14 Jan 2009 | 11:42 am Business confidence declines sharply in India: D&BNew Delhi: US-based research firm Dun and Bradstreet has projected sharp decline in business confidence in India for the first quarter of 2009, mainly on account of decreasing demand and erosion of profits. “The increase in downside risks to growth prospects of the Indian economy, coupled with waning domestic and international demand, has hampered the business sentiment significantly,” it added. It further said the demand conditions are expected to deteriorate significantly during the January-March 09 quarter, while the profit expectation has also plunged. The external cues and policy actions taken by the government and their impact on the domestic demand conditions will play a key role in determining business expectations over the next quarter, it added. The Business Optimism Index (BOI), which measures the pulse of the business community, decreased 31.1% for January-March, touching the lowest level since the introduction of the index by D&B seven years ago. As compared to first quarter in 2008, the BOI declined by of 43.3%, the largest-ever fall in since 2002. For calculating the composite BOI, each of the six parameters, net sales, net profits, selling prices, new orders, inventories and employee levels, is assigned a weight. The parameter weights are then applied to these ratios and the results aggregated to arrive at the Composite Business Optimism Index. It was observed that all the six optimism indices have declined as compared to the previous quarter, the release said. Source: LatestNews-Home - Livemint.com | 14 Jan 2009 | 11:40 am BSE Sensex snaps 4-day fall, up 3.3pct; Satyam dropsMUMBAI (Reuters) – The BSE Sensex snapped a four-day losing streak and climbed 3.3 percent on Wednesday, bolstered by a recovery in global markets and led by Reliance Industries and Infosys Technologies.Source: Reuters: Money News | 14 Jan 2009 | 11:37 am Markets close on a highThe Indian equities markets wrapped up trade on a high Wednesday though profit booking ensued towards closing time, with a key index closing about 3.3 percent above its previous close.Source: IndiaeNews.com: Business News | 14 Jan 2009 | 11:32 am Jaypee Hydropower told to move power line in Himachal to save forestHimachal Pradesh has asked hydropower major Jaypee Karacham Hydropower to relocate its transmission lines in the state to avoid felling of trees, Forest Minister J.P. Nadda said here Wednesday.Source: IndiaeNews.com: Business News | 14 Jan 2009 | 11:32 am HDFC Bank net jumps but bad debts weigh on stocksMUMBAI (Reuters) - HDFC Bank, India's second-largest private sector lender, beat forecasts with a 45 percent jump in quarterly profit on Wednesday, but its shares fell as much as 2.4 percent on rising bad debts.Source: Reuters: Money News | 14 Jan 2009 | 11:30 am Sanction Kochi Metro, says CPI-MThe Communist Party of India-Marxist (CPI-M) Wednesday accused the Planning Commission of refusing to approve the Kochi Metro and sought Prime Minister Manmohan Singh's 'immediate intervention'.Source: IndiaeNews.com: Business News | 14 Jan 2009 | 11:30 am 'Foreign investment in realty driving land prices'The influx of foreign investments is responsible for the 'sky high' land prices and should be discouraged in the realty sector, a leading domestic developer said here Wednesday.Source: IndiaeNews.com: Business News | 14 Jan 2009 | 11:30 am EU states fly to Moscow and Kiev to plead for gasMosciow/Kiev: Russia and Ukraine faced another day of sparring over gas supplies on Wednesday and two European Union states, cut off for a freezing week by the row, launched missions to plead for Russian gas flow to be restored. European Commission chief Jose Manuel Barroso called the crisis “unacceptable and incredible” and warned the EU executive would advise the bloc’s firms to sue Russian and Ukrainian energy companies unless gas supplies were restored quickly. Russia began pumping gas meant for Europe via Ukraine on Tuesday, but the EU said little or no gas was flowing yet to other countries downstream suffering urgent energy shortages. Russia accused Ukraine of deliberately cutting gas to Europe, but Kiev said Russia had so far provided so little gas there was not enough pressure in the pipelines to pump it on. “Such small volumes ... do not allow for further transportation of gas as there is insufficient pressure,” Prime Minister Yulia Tymoshenko told a cabinet meeting. The crisis has hit 18 countries in the depths of winter, shutting down many factories and leaving householders shivering. “If the agreement sponsored by the EU is not honoured, the Commission will advise EU companies to take this matter to the courts,” Barroso told the European Parliament. Two of the worst-hit EU states, Bulgaria and Slovakia, sent their prime ministers to Moscow and Kiev in a fresh effort to get gas supplies restored. Eleven days left Slovakian Prime Minister Robert Fico said his country had 11 days of gas reserves left. “After 12 days, we will be obliged to resort to measures never seen in our history. May I simply ask how long this will go on?” he asked Ukraine’s Tymoshenko. Slovakia, which gets almost all its gas from Russia, declared a state of emergency on 6 January, under which gas deliveries to large clients were reduced. About 1,000 companies were forced to shut or cut production. Tymoshenko said her country could do little to help. “Ukraine does not have sufficient gas. We do not have our own supplies,” she told Fico. Fico said he was passing on to Tymoshenko a request by the Czech Republic, which holds the rotating presidency of the European Union, for talks between the premiers of Ukraine and Russia on restoring gas supplies to Europe. Fico is due in Moscow later to meet Russian Prime Minister Vladimir Putin alongside Bulgarian Prime Minister Sergei Stanishev and Moldovan Prime Minister Zinaida Greceanii. Stanishev is under pressure to secure supplies for his country as domestic reserves are dwindling and public anger is mounting against his Socialist-led government. A deal brokered by the EU, which gets a quarter of its gas from Russia, had been intended to get supplies moving on Tuesday, with international monitors in place to ensure that Ukraine was not siphoning off any gas, as Moscow has alleged. Russian state-controlled gas monopoly Gazprom declared force majeure on gas exports to Europe on Tuesday, meaning circumstances beyond its control prevented it from meeting its obligations to clients. Gazprom is demanding Kiev hand over $614 million for unpaid gas bills and pay $450 per 1,000 cubic metres of gas in 2009. That is similar to rates paid by EU customers but a big rise on last year’s price of $179.5. Analysts in Kiev say Ukraine, saddled with debt and hard hit by the global slowdown, cannot afford that price. Ukrainian state energy company Naftogaz on Wednesday declined a request by Gazprom to supply almost 100 million cubic metres to the Balkans and Moldova, proposing alternative routes. Naftogaz, in a note sent to Gazprom, said Ukraine had proposed directing gas to the Pisarevka and Valuiki compressor stations, rather than the Sudzha station proposed by Gazprom. The gas row reflects poor political relations between Russia and Ukraine. Moscow is vehemently opposed to moves by Ukraine’s pro-Western leadership to join the US-led NATO alliance. Gazprom’s Deputy CEO Alexander Medvedev accused the United States of pulling the strings. “It looks like ... they (Ukraine) are dancing to the music which is being orchestrated not in Kiev but outside the country,” he said. State Department spokesman Sean McCormack rejected the charge as “totally without foundation”. Ukraine’s economy - based on steel and chemical exports - has been hit hard by the global slowdown and its hryvnia currency has experienced sharp falls. Turkey said it did not plan any cuts in domestic gas distribution or gas exports to Greece. Source: LatestNews-Home - Livemint.com | 14 Jan 2009 | 11:29 am Satyam episode not to affect our investment: Intel CapitalIntel Capital, part of the world's largest chip maker, on Wednesday said that its investments into India will not be affected by the Satyam episode.Source: Daily News & Analysis: Money News | 14 Jan 2009 | 11:15 am Fraud-hit Satyam names new auditors; probe widensHYDERABAD, India (Reuters) - Fraud-hit Satyam Computer Services Ltd named new auditors on Wednesday, a first step by the government-appointed board as the company battles for survival after unveiling the country's biggest corporate scandal.Source: Reuters: Money News | 14 Jan 2009 | 11:09 am Omaxe to launch 10,000 homes in Indore at Rs4-10 lakhNew Delhi: Realty firm Omaxe on Wednesday said it will launch 10,000 low-cost homes in Indore in February, which would be developed at about Rs1,000 crore. The company will launch the flats in the range of Rs4-10 lakh. “We will launch 10,000 affordable houses in February at a 200-acre township in Indore,” Omaxe chairman and managing director Rohtas Goel told reporters on the sidelines of an Assocham function on real estate. Asked about the investment, he said the project cost would be about Rs1,000 crore and the size of the flats would be 350 square feet upwards. Construction would be complete in 18 months. Goel noted that the company would sell these units at a margin of 10-15%. In May 2007, Omaxe had announced that it would develop 10 lakh affordable homes for low-income consumers in five years at Rs80,000 crore. To take its plan forward, it would launch similar projects in Raipur, Rohtak, Sonepat, Chandigarh, Bhiwadi and Ludhiana. While Omaxe would develop affordable housing in North India, in the south, Mumbai and Ahmedabad, such projects would be launched by a group company ‘National Affordable Housing and Infrastructure Ltd´, Goel said. Omaxe would soon launch housing projects at Rs12-19 lakh at Faridabad, Greater Noida and Ludhiana, he added. On correction in property prices, Goel said the rates have declined by 10-40% across the country and there is no further scope for reduction. Stating that sentiment in the market has improved after the stimulus package, he said states should also pitch in to boost housing by reducing stamp duty to 2-3% for the next two years, raising the density norm and offering interest subsidy to buyers. Source: LatestNews-Home - Livemint.com | 14 Jan 2009 | 10:57 am Sensex sheds Satyam clout to end 3.3% upNew Delhi: The Bombay Stock Exchange benchmark Sensex traded high on Wednesday, 14 January after four low sessions due to Satyam fraud scandal. But markets bounced back today rallied by Infosys Q3 profits and positive Asian markets to end 3.3% up. Trading began with all indices in green but certain sectors outperformed due to significant buying. Oil and gas surged by 5.85%, IT by 5.02%, Tech by 4.57 % and Realty by 4.38%. Sensex had slipped briefly from the day’s high trading during midsession but soon picked up and the 30-share BSE index ended the day 299.13 points up at 9,370.49 and broad based 50-share NSE Nifty index closed higher by 90.35 at 2835.30. Reliance Industries had the maximum turnover occupying the top three position on the BSE gainers list. Reliance Communications surged by 10.36 % to Rs185.40, along with Reliance Infrastructure by 9.70% to Rs522.35 and Reliance by 9% to Rs1,178.15. Infosys continued to surge for second day after announcing its 33% net profit in the third quarter on Tuesday. Their shares rose by 6.07% to trade at Rs 1,304.85. Other gainers on BSE-index were Mahindra and Mahindra by 5.39% to Rs319.95, Tata Steel by 5.23% to Rs213.45, Jaiprakash Associates by 5.08% to Rs70.35 and Hindalco by 4.12% to Rs50.60. Asian markets also recovered today as Federal Reserve’s chairman Ben Bernanke assured that stimulus planned by President-elect Brack Obama will give US economy significant boost but fears still spooked investors. Hong Kong’s index Hang Seng ended flat and Japan’s Nikkei was up by 0.29%. Source: Home - Livemint.com | 14 Jan 2009 | 10:35 am Pilot training institute asked to refund feesA pilot training institute here has been asked to refund fees and pay compensation to a student who was not given admission in a desired course.Source: IndiaeNews.com: Business News | 14 Jan 2009 | 10:00 am Sanjay joining us shouldn't disappoint Priya: Amar SinghSamajwadi Party general secretary Amar Singh Wednesday said Congress MP Priya Dutt should not be disappointed about her film star brother Sanjay Dutt joining his party as he was supporting the central government.Source: IndiaeNews.com: Business News | 14 Jan 2009 | 10:00 am PwC oversight panel to meet in Mumbai todayPricewaterhouse coopers (PwC) India\'s Partnership Oversight Board (POB) will meet in Mumbai today. PwC, Global CEO, Samuel Di Piazza is likely to attend the meeting, reports CNBCTV18, quoting sources. PwC partners have been demanding a change of leadership and POB is likely to take a call on leadership change in this meet.Source: Moneycontrol Top Headlines | 14 Jan 2009 | 9:56 am Barclays to slash about 2,100 jobs: ReportLondon: Financial services major Barclays is to reduce its headcount by about 2,100 in investment banking and money management, as part of its cost cutting measures. “Barclays is cutting about 2,100 jobs worldwide in investment banking and money management as it slashes costs to cope with the fall-out from the credit crisis”, The Financial Times said. According to FT, the company is cutting 1,300 people from Barclays Capital, the debt-focused investment banking business, 500 from the Barclays Wealth private banking arm, and 330 in asset management business Barclays Global Investors. Overall, the cuts amount to 7% of the three divisions’ staff, it added. Noting that Barclays declined to reveal where the job cuts would come, the newspaper said that the axe is expected to fall heavily in London and New York. However, the bank would continue to hire in areas such as equities, the report published online said. Last year, Barclays had acquired the US operations of bankrupt Lehman Brothers. Financial Times reported that at Barclays Wealth, cuts are expected in London, Glasgow and the Channel Islands. Quoting Unite, which represents staff at Barclays Wealth’s division, the daily said, “We cannot continue with this situation of daily job cuts without any justification or explanation of the broader strategy for the bank.” “The bank, which built the units aggressively over the past five years to account for almost half of revenue, said it wanted to be ‘appropriately sized’, given the current market conditions,” it added. The move is likely to spark fears of further cost-cutting in Barclays’ retail and corporate banking division, which includes its bank branch network, the report noted. Source: Home - Livemint.com | 14 Jan 2009 | 9:50 am Maytas Properties\' JVs to suffer post Satyam scamMaytas Properties may claim to be unaffected by the Satyam fiasco, but the future of its investments in real estate projects hangs in a balance. The real estate market is abuzz with rumours on whether Maytas Properties will be able to execute its projects. Reports say some investors may even want to pull out of projects.Source: Moneycontrol Top Headlines | 14 Jan 2009 | 9:08 am POLL - Inflation seen at 5.28 pct on Jan 3MUMBAI (Reuters) - India's annual inflation rate should have fallen to an 11-month low in the first week of 2009 on a declining trend in prices of manufactured goods and food items, a Reuters poll showed on Wednesday.Source: Reuters: Money News | 14 Jan 2009 | 8:46 am Air India unveils further costcutting measuresIn an effort to cut costs and streamline operations, national carrier Air India had issued a further set of guidelines for its employees, effective January 1. The earlier guidelines were issued in August last year.Source: Moneycontrol Top Headlines | 14 Jan 2009 | 8:39 am Intel Capital invests $23 million in IndiaMumbai: Intel Capital, the investment arm of Intel Corp., said on Wednesday that it will invest $23 million in three Indian companies in areas ranging from online marketing to education. The investment comes as Intel’s revenues are shrinking and the global credit crunch has made funding, even to relatively fast-growing countries like India, increasingly scarce. “We believe that we haven’t even seen the tip of the iceberg as far as the market and business potential in India. We continue to be very bullish,” Sudheer Kuppam, Managing Director of Intel Capital for India, Japan, Australia, New Zealand and South East Asia, said by phone. The new investment will go to One97 Communications Pvt. Ltd., which provides value-added services like ring tones and games for mobile phones, IndiaMART.com, an online business-to-business marketplace, and Global Talent Track, a vocational educational institute. Intel, the world’s largest chipmaker, slashed fourth-quarter profit forecasts twice on flagging demand, and is now projecting a sales decline of more than 20 percent from the year-earlier period. The Santa Clara, California-based company is scheduled to report quarterly results 15 January. Kuppam said Intel Capital invests, on average and excluding one-time large deals, about $500 million a year. “You get much better value for your money in the current environment,” he added. “We are going to be really active.” Funds will come from the $250 million Intel Capital India Technology Fund, which was established in December 2005 and has so far invested about 40% of its funds, Kuppam said. Last year, Intel Capital invested about $50 million in 9 companies in India. That amounted to 8.5 percent of total funds committed globally, excluding a $1 billion investment in Clearwire Corp., an Internet provider specializing in a new type of wireless broadband technology called WiMax. Intel Corp. employs about 3,000 people in India and opened its largest manufacturing site outside the United States in Bangalore, India, in 1998. Intel’s investments in India to date have been over $ 1.7 billion. The company does not break down its revenues by country, but spokeswoman Saranya Rustagi said Intel has no plans to change the size of its work force in India as global demand shrinks. Source: Tech News - Livemint.com | 14 Jan 2009 | 8:27 am HDFC Bank Q3 net up 45% at Rs621.74 crMumbai: Private sector lender HDFC Bank on Wednesday reported a 44.81% surge in its net profit at Rs621.74 crore for the third quarter ended 31 December, 2008. The bank had a net profit of Rs429.36 crore in the third quarter of FY’08, HDFC Bank said in a filing to the Bombay Stock Exchange. The second largest private sector lender’s total income rose 58.79% to Rs5,407.89 crore in the December quarter, from Rs3,405.79 crore in the year-ago period. During the quarter, the lender’s interest income grew 63.87% to Rs4,468.50 crore. The interest expended by the bank ratcheted 93% to Rs2,489.34 crore. HDFC Bank was trading at Rs1,005, up 1.63% in the afternoon trade on the BSE. Source: Home - Livemint.com | 14 Jan 2009 | 8:14 am Satyam audit opinions may be unreliable: PwCMumbai: PricewaterhouseCoopers, the previous auditors at Satyam Computer Services said its opinions on the company’s financial statement may be rendered “inaccurate and unreliable”, given revelations of fraud by the founder of the outsourcuing firm. The firm said Ramalinga Raju’s resignation letter, which included revelations of overstated profits, may have a material effect on the veracity of Satyam’s financial statements presented to it. It said it audited the firm from the quarter ended June 2000 to the quarter ended September 2008. Also Read The Satyam Fiasco (Full Coverage) “Consequently, our opinions on the financial statements may be rendered inaccurate and unreliable,” the auditor said. The 13 January letter from Pricewaterhouse to Satyam’s new board members and the company secretary was released by the stock exchange. Source: Home - Livemint.com | 14 Jan 2009 | 8:09 am KPMG, Deloitte appointed Satyam auditorsHyderabad: India’s fraud-hit Satyam Computer Services Ltd named new auditors on Wednesday, the first step by the government-appointed board as the company battles for survival after unveiling the country’s biggest corporate scandal. KPMG and Deloitte were appointed as the auditors, said Deepak Parekh, a senior Indian banker and part of the outsourcer’s new three-member board. Satyam’s founder and chairman Ramalinga Raju quit last week and confessed the company’s profits had been falsely inflated for years. Raju, his brother and the company’s former chief financial officer are being held in judicial custody. Also Read The Satyam Fiasco (Full Coverage) The scandal has hit Indian stocks and the currency, as investors worried over the damage to foreign investment in Asia’s third-largest economy and the once-booming outsourcing sector, a magnet for thousands of young job seekers. The new audit firms replace PricewaterhouseCoopers, which said on Tuesday it was assisting agencies investigating Satyam. The Reserve Bank of India has sought details of banks’ exposures to Satyam and other firms run by the founding family, including Maytas property companies. Shares in Satyam, which counts Nestle and General Electric among its clients, were down 5% on Wednesday. Satyam’s market value has dived to less than $450 million from more than $7 billion six months ago. India’s prime minister met key ministers on Tuesday to discuss Satyam. Company affairs minister PC Gupta said afterwards that “different possibilities” were being examined. A government bailout, which local media has put at up to Rs20 billion ($410,000) to ensure enough liquidity for three months, was key to restore flagging investor confidence, analysts said. Source: Home - Livemint.com | 14 Jan 2009 | 7:20 am Qatar oil minister says $70 right price for oilNew Delhi: A price of $70 a barrel is right for oil to keep companies and producers investing in new resources, Qatar’s oil minister said on Wednesday. “Low oil prices will reflect a freeze in investment in new resources. When growth comes back, we will have another shock, as resources will not be there to meet demand,” Abdullah al-Attiyah said on the sidelines of the Petrotech conference. Attiyah said he did not favour very high prices either. “$70 will be an incentive to companies and oil producers to keep investing. Oil prices over $100 are not logical. I also don’t appreciate low oil prices.” In late November, when oil prices were around $55 a barrel, Saudi Arabia said $75 a barrel as a fair price for oil, the first time in years that the world’s biggest exporter identified a price target. On Wednesday, US crude rose over 3% to about $39 a barrel as OPEC kept up its talk of production cuts and a cold snap in the United States boosted heating oil demand. While the oil producers are contemplating ways to prop up crude prices, Attiyah said gas producers did not have such an agenda. “Unlike oil, gas and LNG are 25-year, long-term take-or-pay contracts driven by a formula. This is different from oil as gas is still on long-term contracts. Maybe 20-30 years later these contracts will convert into spot,” he said. Energy ministers of 12 gas exporting countries met in Moscow last month to create the Gas Exporting Countries Forum. “They have already signed a statute in Moscow. Qatar will be the headquarters for the international gas forum organisation,” he said. Qatar ist the world’s largest LNG exporter. Source: Home - Livemint.com | 14 Jan 2009 | 7:16 am Yahoo names tech veteran Carol Bartz as new CEOSan Francisco: Yahoo Inc. named technology veteran Carol Bartz as its new chief executive on Tuesday, bringing in a no-nonsense leader known for developing a clear focus something that has eluded the struggling Internet company during a three-year slump. The decision to lure Bartz, 60, from software maker Autodesk Inc. ends Yahoo’s two-month search to replace co-founder Jerry Yang, who surrendered the CEO reins after potentially lucrative deals with rivals Microsoft Corp. and Google Inc. both collapsed. After describing herself as a straight shooter, Bartz told analysts in a conference call that she intended to ensure Yahoo gets “some friggin’ breathing room” so the company can “kick some butt.” She said it would be presumptuous to share her vision for Yahoo on her first day on the job. “I wouldn’t have taken the job if I didn’t believe there was a huge opportunity here,” Bartz said before she had to hustle off to her first meeting with Yahoo’s top managers. After a tepid early reaction, investors seemed to warm up to Bartz’s appointment. Yahoo shares fell 12 cents Tuesday to close at $12.10, then recovered 47 cents, almost 4 percent, in extended trading. Bartz’s appointment could set the stage for Microsoft to renew its efforts to buy Yahoo’s Internet search operations as a way of mounting a more serious threat to Google, the market leader. Microsoft had been reluctant to deal with Yang because he rebuffed several previous overtures, including a $47.5 billion offer to buy Yahoo in its entirety last May. Microsoft subsequently withdrew that bid, valued at $33 per share. Yang had hoped to placate shareholders by using Google’s superior technology to sell some of the ads alongside Yahoo’s search results, but that idea unraveled in November after antitrust regulators threatened to block the deal. Yahoo’s decision to bring in an outsider apparently irked its president, Susan Decker, who also was a candidate for the CEO job. She now plans to resign after a transitional period. Both Decker and Bartz are on Intel Corp.’s board of directors. “We are very confident (Bartz) is the right leader to get Yahoo back on track and help the company achieve its full potential,” Yahoo Chairman Roy Bostock said. Bartz’s track record indicates she will move quickly to build upon Yahoo’s strengths while doing her best to shed the weaknesses. Forrester Research analyst David Card said Yahoo desperately needs someone to crack the whip after years of drifting aimlessly despite having a vast online audience, which it touts as 500 million people worldwide. Bartz spent nearly 17 years at Autodesk, which specializes in making design software for architects and engineers. She was the San Rafael-based company’s CEO from 1992 until 2006, when she stepped aside to become executive chairman a job that paid her a $500,000 salary. Yahoo didn’t immediately disclose her new compensation package. While Bartz was CEO, Autodesk’s annual revenue ballooned from nearly $300 million to $1.5 billion. Perhaps more importantly to Yahoo’s long-suffering shareholders, Autodesk’s stock price rose by an annual average of nearly 20% during Bartz’s reign, beating the 10.6% annual average for the Standard & Poor’s 500 index. Bartz had established her management chops in nine years at Sun Microsystems Inc., where she eventually became the No. 2 executive behind the server maker’s then-CEO, Scott McNealy. She also has worked at Digital Equipment Corp. and 3M. Despite Bartz’s resume, she will likely face questions about whether she is a good fit at Yahoo because she lacks any background in advertising the primary source of Yahoo’s income. Yahoo also is far larger than Autodesk, with annual revenue of more than $7 billion and roughly 13,000 employees, nearly twice the size of Autodesk’s work force. Source: Tech News - Livemint.com | 14 Jan 2009 | 7:01 am Citi-Morgan Stanley seal joint brokerage dealNew York: Citigroup Inc agreed to merge its Smith Barney brokerage with Morgan Stanley’s wealth management unit on Tuesday, and is expected to make further asset sales to raise capital and to isolate toxic assets from the rest of the bank. Citigroup, once the world’s largest bank, may announce plans on 22 January to formally shed the “financial supermarket” approach once championed by former Chief Executive Sanford “Sandy” Weill, but which is now being disavowed by Chief Executive Vikram Pandit. It is expected the same day to post a big fourth-quarter loss. Citigroup is planning to adopt the equivalent of a “good bank, bad bank” structure, in which it would slim down to a business model recalling the former Citicorp, a person familiar with the plan said. The plan envisions focusing on corporate, investment and retail banking and keeping a slimmer trading business, while moving unwanted assets and businesses such as complex debt to a separate structure, the person said on condition of anonymity. Citigroup’s “bad bank” would have about $600 billion of assets, close to one-third of Citigroup’s balance sheet, which could eventually be sold or spun off, the person said. Assets that could be sold include its Primerica unit, which sells life insurance, mutual funds and other financial products. Segregating bad assets has a history of success, said Mike Holland, a money manager at Holland & Co in New York. “It worked in the savings and loan crisis (in the 1980s). I’m getting a sense of deja vu, in a good way.” Citigroup declined to comment on its longer-term plans. Federal Reserve Chairman Ben Bernanke said in a speech on in London on Tuesday that the US government could consider buying troubled assets, providing asset guarantees or setting up a so-called bad bank to buy assets from banks in exchange for cash and equity. Citigroup received $25 billion from the government last October and another $20 billion of capital in November as part of a rescue package. The joint venture with Morgan Stanley will create the largest US brokerage, Morgan Stanley Smith Barney, with more than 20,000 brokers and $1.7 trillion in client assets. The number of brokers will surpass that of Bank of America Corp, which bought former No. 1 Merrill Lynch on 1 January. Morgan Stanley will pay Citigroup $2.7 billion in cash for an initial 51% stake in the venture, which could grow to 100% after five years. James Gorman will retain his role as a Morgan Stanley co-president and be chairman of the joint venture, making him a top candidate to succeed Mack at Morgan Stanley’s helm. Charles Johnston, president of Citigroup’s global wealth management business in the United States and Canada, will be the venture’s president. The New York-based companies are among dozens of banks to be awarded taxpayer money from the Treasury Department’s $700 billion Troubled Asset Relief Program. Citigroup has been awarded $45 billion, and Morgan Stanley $10 billion. Citigroup model didn’t work Weill created Citigroup in 1998 when his Travelers Group Inc bought Citicorp, hoping to create a one-stop banking shop for consumers and businesses. But he never invested enough in the infrastructure and the technology to make the far-flung empire, now operating in more than 100 countries, work well. “Citigroup’s model was let’s get bigger, and that will make us better,” said Robert Millen, who helps invest $2.5 billion at Jensen Investment Management in Portland, Oregon and does not own the bank’s shares. “It didn’t work that way.” After Weill’s handpicked successor Charles Prince took over, the bank burrowed deeply into mortgage securities and other complex debt, leaving it exposed to massive credit losses and writedowns as the financial crisis spread around the world. Now the nation’s third-largest bank by assets, after Bank of America and JPMorgan Chase & Co, Citigroup lost $20.3 billion in the year ended 30 September, and is expected to have lost several billion dollars in the fourth quarter, ended December . It expects the joint venture to result in a $5.8 billion after-tax gain, and to add $6.5 billion of tangible common equity. The combined brokerage will include Morgan Stanley’s wealth management business, and Citigroup’s Smith Barney, Smith Barney Australia and its British unit Quilter. It will not include Citi Private Bank or Nikko Cordial Securities. Morgan Stanley may boost its stake in the venture to 65% after three years, 80%, after four years, and 100 percent after five years. The banks expect $1.1 billion in cost savings, or 15% of combined expenses, excluding broker commissions. Morgan Stanley is diversifying, less than four months after adopting a bank holding company structure to help ensure its survival, something that smaller rivals Bear Stearns and Lehman Brothers Holdings Inc failed to do. Source: Home - Livemint.com | 14 Jan 2009 | 6:04 am Govt may consider foreign stakes in airlines - paperMUMBAI (Reuters) - India's aviation minister said there was a "more reasonable case" now than a few years ago to allow foreign airlines to buy stakes in local carriers, the Mint newspaper reported on Wednesday.Source: Reuters: Money News | 14 Jan 2009 | 4:56 am Rupee rebounds by 22paise to Rs48.90/dollarMumbai: The Indian rupee appreciated 22 paise against the US currency on Wednesday in early trade after ending at a five-week low of Rs49.12/14 on Tuesday. At the Interbank Foreign Exchange market, the domestic currency traded higher at 48.90 against the US currency, a rise of 22 paise over the previous close of Rs49.12/14 a dollar. On Tuesday, the rupee lost 29paise to touch more than a month low of Rs49.12/14 a dollar. Dealers said dollar selling by banks, firming Asian equity markets and expectations of Indian markets opening higher helped the rupee to rebound. Among Asian markets, Japan’s Nikkei was up 0.65%, while Hong Kong’s Hang Seng rose 1.70% in early trade Wednesday. Source: Home - Livemint.com | 14 Jan 2009 | 4:10 am Chrysler in talks with Renault, Magna: sourcesDetroit: Chrysler is in talks to sell key assets to Nissan-Renault and auto supplier Magna as it rushes to restructure after taking $4 billion US government loans, according to people with knowledge of the discussions. The string of potential deals would deepen ties between Chrysler LLC and two of its key current partners but could also mark the end of the struggling No. 3 US automaker as an independent venture. Renault-Nissan and Chrysler, which is owned by Cerberus Capital Management, had some contact about a sale of all or parts of the US automaker last year before the US government stepped in to bail out Chrysler and GM in December. The present round of talks with Renault-Nissan gathered momentum in recent weeks and has included discussions about a deal to sell Chrysler’s iconic Jeep brand, according to three people with knowledge of the talks. Renault-Nissan, an alliance headed by Carlos Ghosn, has been looking to clarify whether a deal to acquire assets from Chrysler would jeopardize the company’s access to US government funding, one of those familiar with the talks said. Representatives of Chrysler, Cerberus, Magna and Nissan had no comment. Renault, which owns a controlling 44% stake in Nissan, could not be immediately reached for comment. Chrysler Chief Executive Bob Nardelli said this week that he was not preparing the struggling automaker for sale. Ghosn has repeatedly said he would not consider a deal that would involve spending cash in an uncertain market. Chrysler has also discussed selling its assembly plant in Belvidere, Illinois, to supplier Magna in exchange for long-term production contracts, according to the three people familiar with the automaker’s talks. In a separate set of deals, Chrysler is also looking to sell the tooling and other assets related to its PT Cruiser model, the three said. Sen Bob Corker, a Tennessee Republican who has been one of the auto industry’s most outspoken critics in Washington, said on Tuesday that Chrysler could be made more viable by merging with a larger automaker. Chrysler was given $4 billion in US government loans earlier this month and has said it plans to ask for another $3 billion in funding to head off a cash crisis. Chrysler’s US sales dropped 30% last year and it burned through more than $9 billion in the last six months of the year to end 2008 with around $2 billion in cash. A fourth person familiar with the situation said Chrysler’s position had worsened significantly since initial contacts about a potential sale last year and that Ghosn’s opposition to taking on another brand had deepened in the interim. Deeper ties with partners eyed Chrysler and Nissan announced an alliance last April that paves the way for Chrysler to have a small car built by Nissan. In exchange, Chrysler would build a new full-sized pickup truck for the Japanese automaker using Nissan’s plans in 2011. Magna also has a long relationship with Chrysler. Magna Steyr, a unit of Magna International, makes minivans and other models for Chrysler in Austria. Magna had been one of the bidders for Chrysler when it was sold by former owner Daimler AG in 2007. Chrysler’s Belvidere plant was extensively retooled in 2005 and is considered one of the automaker’s most flexible and valuable assembly plants. It makes the Dodge Caliber, Jeep Compass and Jeep Patriot models. In a separate deal, Chrysler has been in talks with a pair of Chinese automakers, Chery Automobile and Guangzhou Automobile Industry Group Co, to sell them the PT Cruiser brand and tooling, according to the three sources. Chery, China’s fourth-largest automaker, last month said it had broken off talks with Chrysler over plans to build a car under a Chrysler brand for sale in South America. Chrysler said last year that it would discontinue the convertible version of the PT Cruiser. It is widely expected to scrap all versions of the PT Cruiser, which are made in Toluca, Mexico, after sales of the 2009 models. Chrysler has been seeking over $100 million for the tooling and rights to the PT Cruiser brand in a deal that would set one of the Chinese automakers up to make the model in China for that market, the three sources said. Source: World Business - Livemint.com | 14 Jan 2009 | 3:47 am Chrysler in talks with Renault, Magna: sourcesDetroit: Chrysler is in talks to sell key assets to Nissan-Renault and auto supplier Magna as it rushes to restructure after taking $4 billion US government loans, according to people with knowledge of the discussions. The string of potential deals would deepen ties between Chrysler LLC and two of its key current partners but could also mark the end of the struggling No. 3 US automaker as an independent venture. Renault-Nissan and Chrysler, which is owned by Cerberus Capital Management, had some contact about a sale of all or parts of the US automaker last year before the US government stepped in to bail out Chrysler and GM in December. The present round of talks with Renault-Nissan gathered momentum in recent weeks and has included discussions about a deal to sell Chrysler’s iconic Jeep brand, according to three people with knowledge of the talks. Renault-Nissan, an alliance headed by Carlos Ghosn, has been looking to clarify whether a deal to acquire assets from Chrysler would jeopardize the company’s access to US government funding, one of those familiar with the talks said. Representatives of Chrysler, Cerberus, Magna and Nissan had no comment. Renault, which owns a controlling 44% stake in Nissan, could not be immediately reached for comment. Chrysler Chief Executive Bob Nardelli said this week that he was not preparing the struggling automaker for sale. Ghosn has repeatedly said he would not consider a deal that would involve spending cash in an uncertain market. Chrysler has also discussed selling its assembly plant in Belvidere, Illinois, to supplier Magna in exchange for long-term production contracts, according to the three people familiar with the automaker’s talks. In a separate set of deals, Chrysler is also looking to sell the tooling and other assets related to its PT Cruiser model, the three said. Sen Bob Corker, a Tennessee Republican who has been one of the auto industry’s most outspoken critics in Washington, said on Tuesday that Chrysler could be made more viable by merging with a larger automaker. Chrysler was given $4 billion in US government loans earlier this month and has said it plans to ask for another $3 billion in funding to head off a cash crisis. Chrysler’s US sales dropped 30% last year and it burned through more than $9 billion in the last six months of the year to end 2008 with around $2 billion in cash. A fourth person familiar with the situation said Chrysler’s position had worsened significantly since initial contacts about a potential sale last year and that Ghosn’s opposition to taking on another brand had deepened in the interim. Deeper ties with partners eyed Chrysler and Nissan announced an alliance last April that paves the way for Chrysler to have a small car built by Nissan. In exchange, Chrysler would build a new full-sized pickup truck for the Japanese automaker using Nissan’s plans in 2011. Magna also has a long relationship with Chrysler. Magna Steyr, a unit of Magna International, makes minivans and other models for Chrysler in Austria. Magna had been one of the bidders for Chrysler when it was sold by former owner Daimler AG in 2007. Chrysler’s Belvidere plant was extensively retooled in 2005 and is considered one of the automaker’s most flexible and valuable assembly plants. It makes the Dodge Caliber, Jeep Compass and Jeep Patriot models. In a separate deal, Chrysler has been in talks with a pair of Chinese automakers, Chery Automobile and Guangzhou Automobile Industry Group Co, to sell them the PT Cruiser brand and tooling, according to the three sources. Chery, China’s fourth-largest automaker, last month said it had broken off talks with Chrysler over plans to build a car under a Chrysler brand for sale in South America. Chrysler said last year that it would discontinue the convertible version of the PT Cruiser. It is widely expected to scrap all versions of the PT Cruiser, which are made in Toluca, Mexico, after sales of the 2009 models. Chrysler has been seeking over $100 million for the tooling and rights to the PT Cruiser brand in a deal that would set one of the Chinese automakers up to make the model in China for that market, the three sources said. Source: Home - Livemint.com | 14 Jan 2009 | 3:47 am RBS sells entire Bank of China stake: reportHong Kong: Royal Bank of Scotland has raised $2.37 billion by selling its entire stake in Bank of China, Dow Jones Newswires said on Wednesday. RBS, the leading foreign shareholder in Bank of China and one of three banks bailed out by the British government in October, sold its 4.3% stake in the Chinese lender, a source told the newswires. The 10.8 billion shares were sold at Hong Kong dollar 1.71 each, representing a 7.6% discount to their $1.85 closing price on Tuesday. The move, expected to bolster the balance sheet of RBS, was made after the bank’s chief executive Stephen Hester visited Beijing last week to inform executives of the Chinese bank of his plan to sell the stake. Hong Kong-listed Bank of China shares were up 1.6% at Hong Kong dollar 1.88 in early trade as analysts believed that the RBS sale had removed a big overhang over more selling down of the bank. Hong Kong tycoon Li Ka-shing sold part of his charitable foundation’s stake in the Chinese lender last week, raising more than $500 million. The sale followed that by Swiss bank UBS, which earlier this month sold its 1.33% stake in the bank for $835 million. Source: World Business - Livemint.com | 14 Jan 2009 | 3:32 am Infosys Q3 net rises 33% on higher earnings growthBangalore, Jan. 13 Defying the economic slowdown, Infosys posted better-than-expected earnings growth for the December quarter aided by a weaker rupee and improved operational efficiencies, but missed its forecast in dollar terms hurt by volatileSource: Business Line - Home Page | 14 Jan 2009 | 12:00 am ‘Regulators must have say on auditors for MFs, insurers’New Delhi, Jan. 13 Call this the Satyam effect. The regulators of mutual funds and insurance industry – the Securities and Exchange Board of India and the Insurance Regulatory and Development Authority may have a say in the appointment ofSource: Business Line - Home Page | 14 Jan 2009 | 12:00 am Reliance KG gas at $4.2: GovtMumbai, Jan. 13 Natural gas from the Reliance Industries-controlled KG block would be available to all private and public sector at a price not less than $4.20/mmbtu, which has been fixed by the Government, said Mr Mohan Parasaran, AdditionalSource: Business Line - Home Page | 14 Jan 2009 | 12:00 am Satyam: Truth in tricklesSo, the muck is gradually beginning to filter out of Satyam. The ex-CFO, Mr Srinivas Vadlamani is, as they say, singing in custody and spelling out murky details. We appear set for a long, agonising period ahead as the scandal unravels, piece bySource: Business Line - Home Page | 14 Jan 2009 | 12:00 am Day Trading GuideDLF and L&T stocks are pausing at their current levels. Avoid trading in these counters. We re-affirm our sell recommendation in Reliance Capital and RelianceSource: Business Line - Home Page | 14 Jan 2009 | 12:00 am Satyam staff: The smiles are back, nervouslyHyderabad, Jan. 13 After a week of shock, scepticism and anxiety, the smiles are back on the faces of a lot of Satyamites, albeit with a bit ofSource: Business Line - Home Page | 14 Jan 2009 | 12:00 am Cairn India (Rs 152.95): SellWe recommend a sell in Cairn India stock from short-term trading perspective. It is clearly visible from the charts of Cairn India that it has been on a long-term downtrend from its May 2008 high of Rs 342 (its 52-week high).Source: Business Line - Home Page | 14 Jan 2009 | 12:00 am US worried over Cotton Corpn’s purchasesChennai, Jan. 13 The Centre’s move to procure cotton from the farmers through Cotton Corporation of India is worrying theSource: Business Line - Home Page | 14 Jan 2009 | 12:00 am Cement cos buoyed as imports from Pakistan dry upMumbai, Jan. 13 Cement companies heaved a sigh of relief with imports from Pakistan almost grinding to a halt after the Government imposed a countervailing duty on imports.Source: Business Line - Home Page | 14 Jan 2009 | 12:00 am Heat now turned on Price WaterhouseHyderabad, Jan. 13 With the key players in the Rs 7,136-crore financial fraud at Satyam Computer Services – the Raju brothers and the CFO, Mr V. Srinivas – in custody and statements in hand, the CID turned the heat on the role of theSource: Business Line - Home Page | 14 Jan 2009 | 12:00 am DoT suggests higher 3G spectrum auction price to CabinetA draft note prepared for the cabinet by the Department of Telecommunications (DoT) has recommended raising the base price for an all-India licence for spectrum for third-generation, or 3G services from Rs 2,020 crore to Rs 3,540 crore. The government is auctioning a maximum of five blocks of 3G spectrum of 5 MhZ each in the note to the cabinet.Source: Business Standard | Front Page Headlines | 13 Jan 2009 | 7:14 pm Government may allow 25% FDI in airlinesCivil Aviation Minister Praful Patel today said the government was considering foreign direct investment (FDI) of up to 25 per cent in Indian carriers by foreign airlines.Source: Business Standard | Front Page Headlines | 13 Jan 2009 | 7:13 pm Rupee fall yanks up Infosys net 33%Drops $ guidance for second successive quarter.Source: Business Standard | Front Page Headlines | 13 Jan 2009 | 7:11 pm Satyam scam prompts Clause 49 reviewSerious Fraud Investigation Office joins multi-agency probe.Source: Business Standard | Front Page Headlines | 13 Jan 2009 | 7:01 pm
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