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Pantaloon Retail hit hard by eco slowdown, sales fallThe economic slowdown seems to be hitting Pantaloon retail hard. The company\'s sales fell for the first time in four years and the outlook too looks dismal.Source: Moneycontrol Top Headlines | 15 Jan 2009 | 5:21 pm Satyam does not need fin aid: Deepak ParekhDeepak Parekh the newlyappointed member on the Satyam board said the interim auditors KPMG and Delloite would take eight weeks to restate Satyams accounts. He added that Satyam would not need any financial aid if the company gets its receivables and Satyam has receivables worth Rs 1,700 crore.Source: Moneycontrol Top Headlines | 15 Jan 2009 | 5:17 pm Realty cos see 20 honchos exiting in last 7 monthsAround 20 important people have resigned from six real estate companies. Chief financial officers have quit in four out of six real estate firms. Ansal Properties and Sobha Developers have lost two CFOs each over the last 67 months, while the Omaxe CFO resigned in January this year.Source: Moneycontrol Top Headlines | 15 Jan 2009 | 4:58 pm Law firms AZB Partners, Clifford Chance to tieupMumbai based law firm AZB Partners has, quite literally, extended the hand of friendship to Clifford Chanceone of the world\'s largest law firm. The two have entered into what they\'re calling a \'best friends\' agreement.Source: Moneycontrol Top Headlines | 15 Jan 2009 | 4:00 pm Piramal Healthcare scouts for large US, Europe pharma cosPiramal Healthcare is speeding up its international expansion. It is now looking to buy out manufacturing facilities from big pharma companies in the US and Europe.Source: Moneycontrol Top Headlines | 15 Jan 2009 | 3:26 pm Anxious of Unitech\'s nonoperational cash flows: FitchRakesh Valecha of Fitch Ratings said there are some nonoperational cash flows which Unitech is or was expecting. He added that as far as realising those nonoperational cash flows are concerned, Fitch is not sure whether it will come on a timely basis to service the large obligations that are likely to fall during this month.Source: Moneycontrol Top Headlines | 15 Jan 2009 | 2:25 pm Tata Consultancy Q3 profit up 1.6 pct, lags forecastMUMBAI (Reuters) - Tata Consultancy Services Ltd, India's top software services exporter, posted a 1.6 percent rise in quarterly profit, lagging expectations, as global economic turmoil crimps outsourcing and puts pressure on fees.Source: Reuters: Money News | 15 Jan 2009 | 1:36 pm 'Greater State role required to deal with corporate fraud'The paper emphasised on the role of the State as individual efforts of India Inc will be inadequate to prove such frauds as 'Criminal Offence'.Source: Daily News & Analysis: Money News | 15 Jan 2009 | 1:31 pm TCS Q3 net up 2.67% at Rs1,362 crMumbai: The country’s largest software exporter, Tata Consultancy Services, Thursday reported a 2.67% growth in its net profit at Rs1,362.06 crore for the third quarter ended 31 December, 2008. The Tata Group company had a net profit of Rs1,326.67 crore in the third quarter of fiscal year 2008, TCS said in a filing to the Bombay Stock Exchange. The total income from operations rose 24.13% to Rs7,277.04 crore during the quarter under review from Rs5,862.65 crore in the corresponding period a year-ago. The board also declared an interim dividend of Rs3, at the rate of 300%, on shares of face value of Rs1 each. Shares of TCS closed at Rs510, down 5.28% on the BSE. Source: LatestNews-Home - Livemint.com | 15 Jan 2009 | 1:21 pm Banks, Apple weigh on Wall Street - CNNMoney.com
Source: Google News India - Business | 15 Jan 2009 | 1:20 pm ICAI says KPMG can't audit; auditors say we are going aheadChartered accountants regulator ICAI said KMPG cannot audit Satyam's books, but the global auditor said it does not require to register with the regulator.Source: Daily News & Analysis: Money News | 15 Jan 2009 | 1:20 pm No govt bailout for Satyam; CBI probe likelyThe Union Government has ruled out a bailout package for crisisridden Satyam Computer but assured it would do everything required to save jobs under the framework of its responsibilities.Source: Moneycontrol Top Headlines | 15 Jan 2009 | 1:16 pm RNRL calls NTPC price issue Rs25,000 cr scamReliance Natural Resources termed as "mishievous, misleading and malafide" the government's second sworn affidavit in the company's legal fight with Reliance Industries.Source: Daily News & Analysis: Money News | 15 Jan 2009 | 1:13 pm Arguments in RIL-RNRL dispute likely to conclude on Tuesday - Economic Times
Source: Google News India - Business | 15 Jan 2009 | 1:11 pm Roses, posters, prayers for jailed Satyam chief - Reuters
Source: Google News India - Business | 15 Jan 2009 | 1:08 pm Sasken shrs drop on Nortel's bankruptcy filing - Reuters India
Source: Google News India - Business | 15 Jan 2009 | 1:07 pm Global markets, Nortel weigh on Sensex - Economic Times
Source: Google News India - Business | 15 Jan 2009 | 1:04 pm Trissur all set for IT parkThe IT park coming up in this Kerala town is expected to provide employment opportunities to 5,000 people, state Revenue Minister K.P. Rajendran said here Thursday, while handing over possession of the land to the IT department.Source: IndiaeNews.com: Business News | 15 Jan 2009 | 1:03 pm Budget planning big challenge for Kashmir finance ministerBudget planning for debt-ridden Jammu and Kashmir is going to be a 'Himalayan task' for the National Conference-Congress coalition government, according to state Finance Minister Abdul Rahim Rather.Source: IndiaeNews.com: Business News | 15 Jan 2009 | 1:02 pm Roses, posters, prayers for jailed Satyam chiefHYDERABAD, India (Reuters) - Contemplating his fate from a prison cell, his reputation shattered, Ramalinga Raju, the founder of India's Satyam Computer Services, can still rely on supporters to whom he will always be a hero.Source: Reuters: Money News | 15 Jan 2009 | 1:01 pm Aviation fuel price raised by over three percentAfter eight successive cuts in aviation turbine fuel (ATF) price since last September, state-run oil companies Thursday raised it by at least Rs.1,040 per kilolitre, a rise of 3.4 percent.Source: IndiaeNews.com: Business News | 15 Jan 2009 | 1:01 pm Tarun Das among three new directors on Satyam boardThe government Thursday appointed three more directors to the board of the fraud-hit Satyam Computer Services, including Tarun Das, the chief mentor of the Confederation of Indian Industry (CII).Source: IndiaeNews.com: Business News | 15 Jan 2009 | 1:00 pm Govt doubles Satyam board’s size to sixNew Delhi: The government on Thursday inducted three more directors to double the strength of the Satyam board and said it would take every step required to salvage the IT company, reeling under a crisis ever since its founder Ramalinga Raju disclosed a Rs7,800 crore financial fraud. Apex industry association CII’s chief mentor Tarun Das, noted chartered accountant and a past president of ICAI T N. Manoharan and S. Balkrishna Mainak of LIC, a major investor in Satyam, would join Deepak Parekh, Kiran Karnik and C. Achuthan at the board. The expansion comes two days before the board is to hold its second meeting. Making it clear that no bailout package was being considered by the Centre, Corporate Affairs minister Prem Chand Gupta said that the new board, constituted on Sunday, had not sought any financial support. Stating that Corporate Affairs secretary Anurag Goyal had talked to Andhra Pradesh government to extend every possible help to the troubled company, Gupta said that according to the first impression of the new board, Satyam’s operations were sound and by and large its major clients were willing to stay. Asked if more members would be inducted, he said if the need be, more directors would be appointed to the board and that the government had constituted it under the direction from the Company Law Board. Source: Home - Livemint.com | 15 Jan 2009 | 12:59 pm Govt appoints more directors for Satyam boardNEW DELHI (Reuters) - The Indian government on Thursday nominated three more directors to the new board of embattled Satyam Computer Services Ltd, the Corporate Affairs Minister said on Thursday.Source: Reuters: Money News | 15 Jan 2009 | 12:57 pm GTL Q3 net down 18% at Rs32 crMumbai: Telecom equipment manufacturer GTL today reported a 18.11% decline in its consolidated net profit at Rs32.14 crore for the third quarter ended 31 December, 2008. The firm had a net profit of Rs39.25 crore in the third quarter of FY’08, GTL Ltd said in a filing to the Bombay Stock Exchange. The total income rose nearly 4% to Rs467.81 crore during the quarter under review, from Rs450.31 crore in the year-ago period. On a standalone basis GTL reported a 31% fall in its net profit at Rs22.28 crore. However, the standalone total income stood at Rs341.83 crore, against Rs362.23 crore in the corresponding period a year-ago, it added. Further, the board has approved a buyback of shares to the tune of Rs225 crore. The maximum buyback price has been fixed at Rs260 per shares. Under the share buyback programme the company would buyback equity shares up to 25% of the net worth of the company as on 31 March, 2008 and up to 25% of the paid-up equity capital subject to requisite approval Shares of GTL closed at Rs220.85, up 0.39% on the BSE. Source: LatestNews-Home - Livemint.com | 15 Jan 2009 | 12:57 pm Unitech plunges 14 pc amid rating downgrade - Economic Times
Source: Google News India - Business | 15 Jan 2009 | 12:54 pm Satyam has receivables of Rs 17000 crores: Deepak Parekh - Economic Times
Source: Google News India - Business | 15 Jan 2009 | 12:51 pm India seeks additional one mt LNG from Qatar - Economic Times
Source: Google News India - Business | 15 Jan 2009 | 12:50 pm Eurozone interest rates cut to 2% - BBC News
Source: Google News India - Business | 15 Jan 2009 | 12:48 pm Punj Lloyd JV secures Rs 1311.19 crore contract - Economic Times
Source: Google News India - Business | 15 Jan 2009 | 12:46 pm Infosys top brass not to join Satyam board: NilekaniEven as the government is scouting for new board members and a CEO for Satyam Computer Infosys Technologies steered clear that its top brass will not join the firm.Source: Daily News & Analysis: Money News | 15 Jan 2009 | 12:39 pm Microsoft considering layoffs: ReportSoftware giant Microsoft is looking to trim its workforce across various divisions and could announce the plans next week, says a media report.Source: Daily News & Analysis: Money News | 15 Jan 2009 | 12:33 pm Google to fire 100 hiring staffGoogle is laying off about 100 employees from its recruitment team and has also terminated its contracts with the external hiring agencies.Source: Daily News & Analysis: Money News | 15 Jan 2009 | 12:28 pm Apple`s CEO takes leave, shares tumble!Apple Inc CEO Steve Jobs will take a medical leave of absence until the end of June because his health problems, shocking investors and sending the company`s shares down as much as 10 percent on Wednesday.Source: Zee News : Business | 15 Jan 2009 | 12:26 pm Markets plummet in early trade!The bourses cut short its overnight brief rally as the benchmark Sensex plunged by a huge 353 points in early trade on Thursday as extremely weak global cues weighed on the market sentiment.Source: Zee News : Business | 15 Jan 2009 | 12:26 pm Motorola to cut 4,000 jobs this year!Mobile handset maker Motorola Inc. has informed that it will cut 4,000 more jobs in 2009.Source: Zee News : Business | 15 Jan 2009 | 12:26 pm Retail sales plummet 2.7% in December!Retail sales plunged far more than expected in December, ending a dismal holiday season with a record sixth straight monthly decline, and there`s no relief in sight as consumer demand remains weak.Source: Zee News : Business | 15 Jan 2009 | 12:26 pm Oil plunges to near $36 !Oil prices fell to near USD 36 a barrel on Thursday in Asia as rising crude inventories and falling retail sales in the US provided investors with further evidence of faltering consumer demand.Source: Zee News : Business | 15 Jan 2009 | 12:26 pm Govt rules out bailout package for Satyam!The government on Thursday ruled out any bailout package for crisis-ridden Satyam Computer, but assured to do everything required to save jobs under the framework of its responsibilities.Source: Zee News : Business | 15 Jan 2009 | 12:26 pm Inflation falls further to 5.24%!Inflation eases to 5.24 percent for the week ended Jan 3, from 5.91 percent in the previous week.Source: Zee News : Business | 15 Jan 2009 | 12:26 pm Satyam board to meet on Jan 17The government-appointed board of crisis-ridden Satyam Computer will meet again on Saturday to take stock of the situation, one of the board members Deepak Parekh said on Thursday.Source: Daily News & Analysis: Money News | 15 Jan 2009 | 12:18 pm Cognizant's D'Souza among youngest American CEOsFrancisco D'Souza, the India-origin chief executive of software firm Cognizant Technology Solutions, along with 20 others have been named as the youngest CEOs in America.Source: Daily News & Analysis: Money News | 15 Jan 2009 | 12:15 pm Inflation at 11-month low, rate cut possibleNew Delhi: Indian inflation fell more than expected to an 11-month low in early January giving the Reserve Bank room to cut rates at its month-end policy review, but some analysts said it may hold off after aggressive recent moves. The Reserve Bank slashed its main interest rates by 1 percentage point early this month, its fourth cut since October, and the government tried to draw more funds into the country to boost faltering growth in Asia’s third-largest economy. The wholesale price index , India’s most widely watched inflation measure, rose 5.24% in the 12 months o 3 January, below the previous week’s 5.91% and marginally under a forecast of 5.28% in a Reuters poll. Inflation is now well within the central bank’s forecast of around 7% for 2008/09, and some economists expect it to act on interest rates in its 27 January policy meet. ”There are talks of a second round of fuel price cuts and these cuts alone will bring inflation down to 3-4 percent,” said Sujan Hajra, an economist at Anand Rathi in Mumbai. ”This will give the RBI a lot of elbow room to further ease monetary policy,” Hajra said, referring to the Reserve Bank of India (RBI). But others said the bank may prefer to assess the impact of its previous action before easing policy again. ”RBI will remain neutral in the coming monetary policy review. They have recently taken very aggressive measures and these measures generally take effect with a lag,” said Rupa Rege Nitsure, chief economist at Bank of Baroda in Mumbai. The latest inflation figure was the lowest reading since 9 February, when it stood at 4.98%. India’s $1 trillion economy has shown clear signs of slowing amid the global financial crisis and high borrowing costs, after growing at 9% or more for the past three years. Policymakers expect expansion to moderate to around 7% this fiscal year and the central bank chief has said 2009/10 looked like being an even more challenging year. Early in December, the government cut state-set fuel prices for the first time in nearly two years, and oil minister Murli Deora has said it may lower them again by the end of January. On Thursday, a senior government source said the issue had not been discussed at a cabinet meeting, and added a decision would take a few days. For the second successive week, provisional inflation data was revised downwards. Inflation in the week to 8 November was lowered to 8.71% from the provisional 8.90%, indicating a sharp drop in price pressures. Financial markets were largely unmoved by the data. The partially convertible rupee was at 49.01/02 per dollar, unchanged from before while the 10-year bond yield rose 3 basis points to 5.51% after the data. Source: Home - Livemint.com | 15 Jan 2009 | 12:13 pm PwC can’t distance itself from Satyam fraud: ICAINew Delhi: Chartered accountants regulator ICAI on Thursday questioned the role of Satyam’s statutory auditor Price Waterhouse (PwC), saying the bookkeeper cannot dissociate itself from the IT company’s accounting fiasco. Price Waterhouse, auditors of Satyam for over eight years, had pn Wednesday said that its audit of the company’s financials could be “inaccurate and unreliable” in view of the financial irregularities disclosed by Ramalinga Raju. “This does not absolve them of the defaults already committed, if any,” ICAI president Ved Jain told reporters. ICAI had earlier issued a showcause notice to PwC on the issue. Price Waterhouse had said that all those financial statements were prepared by the management and that it relied “on management controls over financial reporting, and the information and explanations provided by the management, as also the verbal and written representations made to us during the course of our audits.” Satyam as well as PwC are the subject of regulatory and government investigation into the country’s biggest corporate fraud - involving Rs7,800 crore - disclosed by Satyam founder Ramalinga Raju. Raju, his brother Rama Raju and Satyam CFO Vadlamani Srinivas are in judicial custody now. Source: LatestNews-Home - Livemint.com | 15 Jan 2009 | 12:08 pm Vice President Ansari to visit Myanmar in FebruaryIndia's Look East policy will be in focus next month when Vice President Hamid Ansari goes to the gas-rich Myanmar on a bilateral visit weeks before the ASEAN summit in Thailand.Source: IndiaeNews.com: Business News | 15 Jan 2009 | 12:01 pm Satyam fraud holds up IT sector's revised growth forecastThe Rs.70 billion (Rs.7,000-crore/$1.43 billion) accounting fraud at Satyam Computer Services has forced the software sector's umbrella body Nasscom to defer its revised forecast on the IT industry's growth this fiscal (2008-09), a top industry representative said Thursday.Source: IndiaeNews.com: Business News | 15 Jan 2009 | 12:01 pm Equity markets slump, reversing previous day's gainsIndian equities markets closed lower Thursday, reversing the gains of Wednesday's trade. A key index shut shop about 3.45 percent below its previous close.Source: IndiaeNews.com: Business News | 15 Jan 2009 | 12:00 pm Recruitment in Bengal IT sector may slump due to meltdownThe recruitment in the information technology (IT) sector in West Bengal is likely to be lower than the target set by the government due to the global economic meltdown, state IT minister Debesh Das said here Thursday.Source: IndiaeNews.com: Business News | 15 Jan 2009 | 12:00 pm GDP to expand 5.5 pct in 2009/10 - CitiMUMBAI (Reuters) - India's economic growth is seen slowing to 5.5 percent in 2009/10 from an estimated 6.8 percent in the current fiscal year ending in March, Citigroup said in a recent note.Source: Reuters: Money News | 15 Jan 2009 | 11:58 am World Bank to give Rs 5,000 crore loan to PowerGridWorld Bank will give a loan of one billion dollars (about Rs 5,000 crore) to power transmission company PGCIL this year for developing infrastructure in the sector.Source: Daily News & Analysis: Money News | 15 Jan 2009 | 11:56 am Stocks slide pushes rupee to near 1-week lowMumbai: Rupee dropped to its lowest in nearly a week on Thursday as a sharp fall in the local stock market highlighted risk aversion among investors and fuelled concerns of further fund outflows. The partially convertible rupee closed at Rs49.03/04 per dollar, 0.4% weaker than Wednesday’s close of Rs48.85/86. “The rupee weakened mainly because of the stocks today, but there was strong resistance for the dollar-rupee around Rs49.20, prompting exporters to sell dollars,” a senior dealer with a private bank said. “If the stocks are okay tomorrow, then we could see the rupee rise towards Rs48.80,” he added. Sensex fell 3.45% on Thursday to their lowest close in over a month as fresh bouts of risk aversion gripped world markets, while fraud-hit Satyam plummeted a third after investors hopes for a government bailout faded. Foreign funds have already withdrawn a net $291 million from local equities this year, after pulling out more than $13 billion in 2008. Data on Wednesday showed, the RBI sold $3.1 billion in intervention in November, taking total net sales to $11.1 billion in the first 11 months of 2008. One-month offshore non-deliverable forward contracts were at Rs49.29/39 per dollar, weaker than the onshore spot rate. “Given the prevailing uncertainty on the global front and its impact on external financing, we expect the INR to trade at Rs48.5 per dollar, with a range of +/- 2 rupees,” Rohini Malkani and Anushka Shah, economists at Citigroup, wrote in a recent note. Source: Home - Livemint.com | 15 Jan 2009 | 11:52 am Mirari signs Anoushka Shankar, to open more storesNew Delhi: High-end jewellery maker Mirari has roped in sitarist Anoushka Shankar as its brand ambassador to endorse its products and also strengthen its presence in the domestic and international market in the next two-three years. The two year-old jewellery firm said it is looking at opening three more outlets in the country in the next two years and also explore opportunities to expand in the overseas market. “We wanted someone who was much more than just a model or actress to represent our work. Some one who is artistic, intelligent and gifted. And Anoushka Shankar was the right choice for us,” Mirari Jewellery CEO Mira Gulati said. While it has two outlets in the Capital, Gulati said it would have a strong domestic presence within the next two-three years period. Also, she added that the jewellery firm is eyeing expanding its presence in the international markets like Dubai, Kuwait, Moscow, Shanghai and London within this year. “We are also expanding in the international market as well. Dubai, Kuwait, Moscow, Shanghai and London are some of the countries that I hope I will be present in within this year,” she said. Source: LatestNews-Home - Livemint.com | 15 Jan 2009 | 11:51 am Chidambaram gives free hand to RV Raju to pick NIA teamNew Delhi: The National Investigation Agency (NIA), set up in the wake of Mumbai terror attacks, will have members “hand picked” by its first chief RV Raju, who was appointed on Thursday. Home minister P Chidambaram, who recommended Raju’s name for the post, told reporters, “he (Raju) has been requested to join immediately and quickly begin the recruitments.” Chidambaram said Raju will hand pick his core group of investigation officers. Asked how long it would take for the NIA to be functional, he said, “We will now recruit identified officers who have got a track record in doing very good work in investigation.” Raju has been tasked with recruiting people and putting the infrastructure and logistics in place so that NIA can take up cases for investigation, said Chidambaram. He, however, said there was no case at present to be investigated by the NIA. To a question, he said the Mumbai incident would not be probed by the NIA as investigation into it was already on. “The Mumbai investigation is well on track. It has made considerable progress. There is no need for transferring it to NIA,” he said. Chidambaram said Raju had a vast experience in CBI. A 1975-batch IPS officer, Raju will head the NIA till 31 January, 2010, a home ministry order said. At present, Raju holds a post of special director general of police in Jammu and Kashmir. Source: LatestNews-Home - Livemint.com | 15 Jan 2009 | 11:41 am Satyam board to meet on 17 Jan, says ParekhNew Delhi: The government-appointed board of crisis-ridden Satyam Computer will meet again on Saturday to take stock of the situation, one of the board members Deepak Parekh said on Thursday. Speaking to reporters here after a meeting with corporate affairs minister Prem Chand Gupta, Parekh said that the company has receivables of Rs1,700 crore but denied having asked the government for any bailout as yet. “Until we know the real position, how can we speak of bailout... the company has receivables of Rs1,700 crore,” Parekh said. Also Read | The Satyam Fiasco (Full Coverage) Parekh also said that the new auditors KPMG and Deloitte, which were roped in on Wednesday to restate the financial statements of Satyam, have begun their work. Parekh, chairman of HDFC Ltd, was named to the Satyam’s board last Sunday along with former Nasscom president Kiran Karnik and Securities Appellate Tribunal’s past presiding officer C Achuthan. Parekh further said that strategic investment is one of the options before the board. Corporate affairs minister Prem Chand Gupta has said if Satyam wanted funds, the new board would approach the banks. He was responding to a query if Satyam Computer had sought a bailout package from the government. Source: Home - Livemint.com | 15 Jan 2009 | 11:35 am BSE Sensex drops 3.45 pct, Satyam plunges 32 pctMUMBAI (Reuters) – The BSE Sensex shed 3.45 percent on Thursday to its lowest close in over a month as fresh bouts of risk aversion gripped world markets, while fraud-hit Satyam plummeted a third after investors hopes for a government bailout faded.Source: Reuters: Money News | 15 Jan 2009 | 11:28 am Microsoft considering layoffs: ReportBy PTI New York: Software giant Microsoft is looking to trim its workforce across various divisions and could announce the plans next week, says a media report. The Wall Street Journal has reported that Microsoft is seriously exploring significant work force reductions that could be announced as early as next week. Quoting people familiar with its plans, the daily said, the company is “considering layoffs across its various divisions, a rare occurrence for the world’s largest software company”. However, the report quoting one of these people added that the “plans for the cutbacks are still in flux and Microsoft could end up finding alternative methods of reining in costs.” The Wall Street Journal pointed out that the number of potential job reductions could not be learned. But “they are likely to be far less than the 15,000 positions that have been rumored in recent weeks, a figure that would amount to more than 16 per cent of Microsoft’s global work force,” the report said attributing to people familiar with the matter. Earlier this month, the UK-based The Times had reported that Microsoft is “preparing to announce the first wide scale layoffs in its 32-year history, with up to 15,000 jobs at risk, according to some predictions.” Source: Tech News - Livemint.com | 15 Jan 2009 | 11:28 am Microsoft considering layoffs: ReportBy PTI New York: Software giant Microsoft is looking to trim its workforce across various divisions and could announce the plans next week, says a media report. The Wall Street Journal has reported that Microsoft is seriously exploring significant work force reductions that could be announced as early as next week. Quoting people familiar with its plans, the daily said, the company is “considering layoffs across its various divisions, a rare occurrence for the world’s largest software company”. However, the report quoting one of these people added that the “plans for the cutbacks are still in flux and Microsoft could end up finding alternative methods of reining in costs.” The Wall Street Journal pointed out that the number of potential job reductions could not be learned. But “they are likely to be far less than the 15,000 positions that have been rumored in recent weeks, a figure that would amount to more than 16 per cent of Microsoft’s global work force,” the report said attributing to people familiar with the matter. Earlier this month, the UK-based The Times had reported that Microsoft is “preparing to announce the first wide scale layoffs in its 32-year history, with up to 15,000 jobs at risk, according to some predictions.” Source: Home - Livemint.com | 15 Jan 2009 | 11:28 am Siemens arm valuations unfair for investors: JR VarmaJR Varma, Former Sebi Member, said the valuations and the manner in which the Siemens transaction has been done is unfair. He feels that Siemens divestment is not fair for minority investors. An IT firm being sold at half of its previous years revenues is quite cheap.Source: Moneycontrol Top Headlines | 15 Jan 2009 | 11:20 am Nissan announces fresh production cutsBy AFP Tokyo: Nissan Motor Co. said Thursday it will further reduce its domestic production by 64,000 vehicles through February and March amid reports that it is set to post a loss this year. Japan’s third largest carmaker has now slashed its planned production in the current financial year to March by 289,000 vehicles, or about 21%, from an original target of 1.388 million. Nissan, which is controlled by France’s Renault, said it would halt production at three assembly plants for up to 13 days in February, followed by further stoppages in March. “This further reduction is necessary to manage our inventory levels and ensure a balanced production supply, in response to continued declines in the global vehicle sales,” a company statement said. Japanese manufacturers have seen a dramatic reversal in their fortunes in recent months as recessions in major markets batter demand for cars. Nissan has announced thousands of job cuts worldwide in recent months. The Yomiuri newspaper reported Thursday that Nissan is set to log its first operating loss in the current financial year to March since Renault sent Carlos Ghosn to rescue its Japanese partner from the brink of bankruptcy in 1999. Nissan in October lowered its forecast for operating profit for the year to March 2009 to 270 billion yen (three billion dollars) from a previous projection of 550 billion yen. The Yomiuri said the company would log a loss of at least tens of billions of yen (hundreds of millions of dollars) as sales in the key North American market have fallen rapidly amid the economic downturn. The strong yen is also expected to erode Nissan’s profits by more than 70 billion yen, the daily said without naming its sources. Nissan declined to confirm or deny the report. The global slowdown has badly shaken Japan’s automakers, which in recent years had cashed in on brisk demand for their smaller and more fuel-efficient cars. Last month Toyota predicted its first ever annual operating loss. Source: LatestNews-Home - Livemint.com | 15 Jan 2009 | 11:20 am 3G to be valueneutral for Bharti, Vodafone: Anand RathiSanjay Chawla, Telecom Analyst, Anand Rathi Securities see 3G as a bit of a distraction for the industry.. \"It could be value neutral for Bharti and Vodafone, and value negative for Idea, Reliance Communications, and Tata Tele if not bid effectively.\"Source: Moneycontrol Top Headlines | 15 Jan 2009 | 11:15 am Gold dips on weak global cues, fresh sellingNew Delhi: Gold prices tumbled by Rs110 to Rs 13,090 per 10 gram in the national capital on Thursday on heavy selling by stockists sparked by weak global trend amid restricted buying. Silver followed the same trend and fell by Rs300 to Rs17,750 per kg. Marketmen said selling by stockists influenced by a weakening trend in international market amid restricted buying due to off marriage and festival season mainly pulled down gold prices. They said the bullion market, which normally move in tandem with international trend failed to provide any support after the gold in Hong Kong fell to 809.00 dollars an ounce from previous close of 828.00. Gold fell 1% in Hong Kong, giving up earlier gains as dollar firmed up against the euro after weaker-than-expected economic data sparked a flight to the relative safety of the US currency, they added. A similar weakening trend was noticed in silver as stockists refrained from extending support at existing higher level. Silver ready fell by Rs300 at Rs17,750 per kg and weekly-based delivery by Rs310 at Rs17,550 per kg. Silver coins fell by Rs100 to Rs26,800 for buying and Rs26,900 for selling of 100 pieces. Standard gold and ornaments fell by Rs110 each at Rs13,090 and Rs12,940 per 10 gram, respectively. Sovereign, on the other hand, continued to be asked at previous level of Rs10,725 per piece of eight gram. Source: LatestNews-Home - Livemint.com | 15 Jan 2009 | 11:10 am Hindustan Zinc slashes zinc rates; lead unchangedNew Delhi: Vedanta Resources group firm Hindustan Zinc today said it has lowered prices of zinc, used in producing galvanised steel, by Rs14,00 to Rs73,300 per tonne, with effect from today. However, the company also maintained rates of lead, used in batteries, rubber and paint, at previous week’s level of Rs69,000 per tonne. The price revision is effective from today, a company circular said. The basemetal producer revises rates of its products mostly twice a week, based on the price movement at the London Metal Exchange. Hindustan Zinc was trading at Rs355 on the Bombay Stock Exchange, down 1.57% in the afternoon session. Source: LatestNews-Home - Livemint.com | 15 Jan 2009 | 11:09 am Pak arrests LeT, JuD members linked to Mumbai attacksIslamabad: Pakistan on Thursday said it had detained 71 members of outlawed militant groups and put under surveillance 124 others, besides shutting down five “training camps” of JuD and banning its websites in the wake of the Mumbai attacks blamed on elements based in this country. A special investigation team headed by an additional director general of the Federal Investigation Agency is being set up to examine “without any prejudice” all aspects of the Mumbai attacks and the information provided by India, said Pakistan’s interior ministry chief Rehman Malik. He added, the team will include two other officers with counter-terrorism experience. Giving details of Pakistan’s investigation in the wake of the Mumbai incident, Malik said 71 members of banned militant groups had been detained so far. Among them are leaders of Jamaat-ud-Dawa (JuD) and Lashker-e-Toiba (LeT), including Hafiz Mohammed Saeed, the founder of both groups, Mufti Abdur Rehman, Col (retd) Nazir Ahmed, Ameer Hamza and LeT operations commander Zakiur Rehman Lakhvi. Significantly, Malik did not say whether any legal proceedings had been initiated against the detained persons. Authorities had shut down eight relief camps and five training camps run by JuD in Punjab province and PoK. Though no evidence was found in these facilities, there were “traces” that 5 of them were being used as “training camps”, he said. Six publications of JuD, including the weekly ‘Ghazwa´, and the group’s websites too had been banned, he said. Malik said that 124 members of banned groups had also been placed under surveillance for the past six months under the provisions of anti-terror laws. Asked whether the information given by India on the Mumbai attacks constituted evidence, he replied: “We are accepting that information, and we have formed an investigation team with a view to reach the culprits.” Source: LatestNews-Home - Livemint.com | 15 Jan 2009 | 10:58 am Govt sees inflation going down to 3 per cent by March endWith inflation declining continuously for the 10th week in a row to 5.24 per cent in January, the Government on Thursday, said it might go further down to 3 per cent.Source: Daily News & Analysis: Money News | 15 Jan 2009 | 10:52 am Close: Sensex tanks 323 pts on weak global marketsNew Delhi: Markets reeled under pressure through the day on Thursday, 15 January, as the Bombay Stock Exchange benchmark Sensex ended lower by 3.45% on selling off by foreign funds and weak Asian markets. Sensex opened trade below the crucial 9,000 mark dragged down by banking and IT sectors. Market did manage to see a small recovery but around midsession but could not sustain as all segments traded in red and European markets turned negative. The 30-share BSE index ended 323.75 down at 9,046.74 and broad based 50-share NSE Nifty ended lower by 98.60 points at 2736.70. Banking indices tanked the maximum as investors worried about the deepening banking crises in the United States and world over - stocks were down by 5.69%. Metal, Realty and IT were other segments that witnessed significant selling pressure. Filing for bankruptcy by Canada-based telephone equipment maker, Nortel Networks Corp’s in the US and Canada also resulted in negative sentiment for IT companies. Infosys shares dipped by 4.05% to Rs1,252.05 and Wipro by 3.55% to Rs235.30. Shadowed by fraud scandal shares of Satyam Computers tumbled by 31% as news came in that government is not considering any bailout plan for India’s No.4 software company. Leading the decline on the BSE index was Jaiprakash Associates by 8.03% to Rs64.70, followed by Tata Steel by 7.33% to Rs195.50, ICICI Bank by 7.31% to Rs408.85, Sterlite Industries by 7.10% to Rs253.70, Reliance Communication by 6.01% to Rs174.25 and HDFC Bank by 5.41% to Rs924.50. Asian markets hit a six-week low on fears of US banking crisis. Japan’s index Nikkei fell by 4.9% reaching a one-month low and Hong Kong’s Hang Seng dropped to a 7-week low of 3.3%. Source: Home - Livemint.com | 15 Jan 2009 | 10:49 am HOV Services to buyback Rs5 cr equities; plunges 10%By PTI Mumbai: Outsourcing services provider HOV Services today plunged nearly 10% after the company said it would buyback its shares worth Rs5 crore from the open market at Rs50 a piece. The company would buyback its shares of Rs10 each from the existing shareholders at a price not exceeding Rs50 a piece, HOV Services said in a filing to the BSE. Under the offer, the company would buyback a maximum of 10 lakh shares, which represents 6.15% of the aggregate of the company’s total paid-up equity capital as on 31 March, 2008 . Buyback offer opens on 2 February and would close on 12 January, 2010, the company added. HOV Services was trading at Rs31.25, down 9.68% in the afternoon trade on the BSE. Ansal Housing launches housing project at Jammu Real estate developer Ansal Housing & Construction today said it has launced a new group housing project named Ansal Grace, at Jammu. In a filing to the Bombay Stock Exchange, Ansal Housing & Construction informed that the company has launched a new group housing project named Ansal Grace, at Jammu (J&K). The company would now undertake all the development and marketing work of the project. The project is expected to have a turnover of nearly 65 crore and would be completed over next 3 years. Source: LatestNews-Home - Livemint.com | 15 Jan 2009 | 10:48 am Markets close low, reversing previous day's gainsThe Indian equities markets shut shop lower Thursday, reversing gains of Wednesday's trade. A key index ended trade about 3.26 percent below its previous close.Source: IndiaeNews.com: Business News | 15 Jan 2009 | 10:37 am Infosys mentor Murthy bats for new Satyam boardIT major Infosys Technologies chairman and chief mentor N.R. Narayana Murthy Thursday said the government-appointed board members of the fraud-hit Satyam Computer Services were excellent, competent and had lots of experience.Source: IndiaeNews.com: Business News | 15 Jan 2009 | 10:36 am Trading in Network 18 Fincap warrants to suspendThe warrants of Network 18 Fincap will be suspended from trading w.e.f. January 19, 2009 on the NSE.Source: Moneycontrol Top Headlines | 15 Jan 2009 | 10:28 am Govt says no Satyam bailout; shares off 32 pctHYDERABAD, India (Reuters) - The government is not considering bailing out Satyam Computer Services, and the fraud-hit outsourcing firm may have to turn to banks, many of them state-run, if it needs funding.Source: Reuters: Money News | 15 Jan 2009 | 9:03 am Satyam Accounting Basics ExplainedIn our constant effort to get the basics right, we here on Just to Clarify wanted to revisit the ongoing Satyam saga to look more precisely at the accounting fraud at the heart of the controversy.  Our guest today is Badri Pillapakkam, an investment and fund operations associate at Xander Advisors in New Delhi. Badri has also worked at Exl Services, where he worked on risk advisory, and at PriceWaterhouse Coopers India, where he worked on statutory audits and due diligence for various clients. (The views and opinions expressed herein are that of the individual and do not necessarily represent the views and opinions of any organization or employer, whether past or present. The information transmitted herein shall not constitute any liability whatsoever to the individual or employer.) Source: Home - Livemint.com | 15 Jan 2009 | 8:52 am Inflation at 11-month low, rate cut possibleNEW DELHI (Reuters) - Indian inflation fell more than expected to an 11-month low in early January giving the Reserve Bank room to cut rates at its month-end policy review, but some analysts said it may hold off after aggressive recent moves.Source: Reuters: Money News | 15 Jan 2009 | 8:29 am Tough times ahead for hospitality industry: Ajay BakayaOne-third of the Rs600 crore revenues at Sarovar Hotels Pvt. Ltd, a leading budget and mid-market hotel management company, for fiscal 2008, came from an exclusive franchise agreement for the Park Inn and Park Plaza brands of the Minneapolis, US-based Carlson Hotels Worldwide. With the exclusivity of that deal coming to an end from 1 January, Ajay Bakaya, executive director of Sarovar Hotels in an interview tells Mint where the Carlson partnership is heading, expansion plans in the wake of an economic slowdown and what 2009 will hold for the company and the Indian hospitality industry. Edited excerpts. You have been the exclusive master franchiser for Carlson’s two brands in India for over 10 years now. There have been some reports of this partnership coming to an end. What is the current status? We had a exclusive arrangement with Carlson till 2008 to manage their brands Park Plaza and Park Inn, under which even Carlson could not either directly or through any one else sign on a third party for these brands. That arrangement has now changed to a non-exclusive agreement and as of 1 January, we cease to be the master franchiser for the Park Inn and Park Plaza brands in India. I would not like to divulge any more details as of now. What has brought about this change? In the light of what has happened in the last three years or so on in the world economy, they (Carlson) probably felt that they could sign on many more hotels in India. Also, since they had access to substantial funds, they might like to bring in their own Park Plazas and Park Inns and set new benchmarks. We have a very good relationship with them and will continue to manage their brands in India (non-exclusively). What are your revenue targets for this fiscal and how will the change in this partnership impact your topline? Our revenues for 2007-08 were around Rs600 crore and Carlson’s contribution was about one-third. The majority of the balance comes from India with maybe Rs50 crore from our international properties. Over a period of time, the Sarovar branding will become more predominant, so that equation would change, and our brands (Sarovar Premiere, Portico and Hometel) will fetch us more revenues. When we started this year, we were looking at an increase in revenues of as much as 50% over last fiscal but we now believe that will be in the vicinity of about 30%. In corporate (markets) like Bangalore, Hyderabad and Mumbai, revenues in some cases have gone down by 10% annually. How many new hotels are you looking at in India and abroad this year? You have spoken of a target of 100 hotels by 2012. In India we have 11 hotels scheduled to open in 2009 but conservatively we should add about eight hotels. (Sarovar’s investment for the development of eight hotels this year is about Rs250 crore, excluding cost of land). We are sitting at 35 hotels today (and I) am looking at 50 hotels by 2011. Outside of India, our focus would be either the Middle East or East Africa. 2009 is going to be a very bad year generally for the hospitality industry in terms of fee recovery and revenues of hotels. Our room rates currently vary from Rs 2,000 to Rs 12,000, and room rates this year would probably be 10% lower than last year. In late 2005, you divested a 30% stake for about $10 million to two US private equity firms. Will you look at another round of funding if need be? We have dropped all these plans because of the current meltdown and are being very conservative right now. We want to hold tight and get over this dip and wait for valuations to be strong again. We are not in a hurry. We will open our own property in Chandigarh this year with a development cost of about Rs30 crore and then start construction on our Chennai hotel this year. We are totally debt free so far. We don’t need funding for another year or so. Source: Home - Livemint.com | 15 Jan 2009 | 8:27 am Fuel price cut will take a few days - sourceNEW DELHI (Reuters) - The cabinet will not discuss a fuel price cut in Thursday's meeting, a top government source said, and a decision would take a few days to emerge.Source: Reuters: Money News | 15 Jan 2009 | 7:49 am Infosys, Wipro fall after Nortel bankruptcy filingBANGALORE (Reuters) - Shares in leading Indian outsourcers such as Infosys Technologies and Wipro fell on Thursday after one of their clients Nortel Networks Corp filed for bankruptcy.Source: Reuters: Money News | 15 Jan 2009 | 7:44 am Satyam urgently needs Rs150 crore: MynampatiNew Delhi: Satyam’s senior management executive Ram Mynampati has informed the government that the troubled IT firm would need Rs150 crore to meet insurance liabilities of its US employees. “We have received a mail or two from Mynampati. They indicated that they would need something of the order of Rs150 crore to take care of the health insurance liabilities of the employees in the US,” economic affairs secretary Ashok Chawla told reporters here. Mynampati is in the US to talk to clients and reassure them of the company’s ability to continue serving them, besides restoring confidence among employees in the aftermath of a Rs7,800 crore financial fraud disclosed by founder Ramalinga Raju last week. Chawla said there is no immediate plan for a government bailout for Satyam, although commerce and industry minister Kamal Nath had indicated that the government was willing to extend financial support to the company. “Not at this stage,” Chawla said when asked if the government would offer any bailout to the IT firm now. Asked if the new board has already approached the government for Rs150 crore assistance, he said: “Board members have got down to work... they will be getting in touch with the ministry of corporate affairs.” The company’s new board, comprising Deepak Parekh, Kiran Karnik and C Achuthan, had agreed on meeting financial needs as a top priority. On whether the government would provide any indirect support to Satyam, Chawla said: “It depends on the board coming to kind of conclusion; what is their requirement and the actual accounts indicating what it is”. He said the real picture on the company’s “receivables” has to the revealed. Source: Home - Livemint.com | 15 Jan 2009 | 7:32 am Steve Jobs takes medical leave, Apple stocks plungeSan Francisco: Apple chief Steve Jobs is taking medical leave of absence because of “complex” health issues, sparking worries about the future of the iconic maker of iPhones, iPods and Macintosh computers. In an email to employees on Wednesday, Jobs said he is going on leave “in order to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products.” Jobs, 53, a cancer survivor who disclosed on 5 January that he was being treated for a “hormone imbalance,” said that since that time “I have learned that my health-related issues are more complex than I originally thought.” “I have asked (chief operating officer) Tim Cook to be responsible for Apple’s day-to-day operations, and I know he and the rest of the executive management team will do a great job,” he added. The price of Apple’s stock plunged 7.07% to $79.30 in after-hours trading following the announcement. “Everyone is going to speculate he is on his deathbed, like it usually goes,” said Gartner analyst Van Baker. “The company will do just fine with Steve taking a leave of absence. Jobs had explained his no-show at Macworld, this month’s annual cult-like gathering of Apple devotees, with a letter stating that a hormone imbalance had caused him to lose a troubling amount of weight. Jobs, who underwent surgery for pancreatic cancer in 2005, looked gaunt at his last public appearance in September. Hormonal imbalance is a common symptom of pancreatic cancer and could signal that Jobs isn’t done battling the often terminal illness, said Rob Enderle of the Enderle Group in Silicon Valley. “It is likely that he is not coming back, because he wouldn’t step away from this job for five minutes unless it was critical,” Enderle said. Apple has been notoriously secretive about Jobs’s health and speculation has been rampant since it was announced that for the first time in 11 years he would not give the keynote speech at the Macworld Expo. Marketing vice president Phil Schiller gave the keynote at Macworld, which ran from January 6-9 and featured companies promoting gadgets, gear, software or services tailored for Apple products. NPD Group analyst Stephen Baker said Jobs’s absence should not cripple the company. As Apple’s chief operating officer, Cook has been in charge of the nitty-gritty running of the company. Cook also heads the California firm’s Macintosh computer division. However, in the public’s eyes Jobs is Apple incarnate. Apple was teetering on the brink of ruin when Jobs returned to the helm in 1996 and led it to marketplace glory. He had left the company in 1985 after an internal power struggle. Born in San Francisco on 24 February, 1955 to a single mother and adopted at a young age, Jobs founded Apple in 1976 with engineer Steve Wozniak after dropping out of college. Source: World Business - Livemint.com | 15 Jan 2009 | 5:54 am Steve Jobs takes medical leave, Apple stocks plungeSan Francisco: Apple chief Steve Jobs is taking medical leave of absence because of “complex” health issues, sparking worries about the future of the iconic maker of iPhones, iPods and Macintosh computers. In an email to employees on Wednesday, Jobs said he is going on leave “in order to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products.” Jobs, 53, a cancer survivor who disclosed on 5 January that he was being treated for a “hormone imbalance,” said that since that time “I have learned that my health-related issues are more complex than I originally thought.” “I have asked (chief operating officer) Tim Cook to be responsible for Apple’s day-to-day operations, and I know he and the rest of the executive management team will do a great job,” he added. The price of Apple’s stock plunged 7.07% to $79.30 in after-hours trading following the announcement. “Everyone is going to speculate he is on his deathbed, like it usually goes,” said Gartner analyst Van Baker. “The company will do just fine with Steve taking a leave of absence. Jobs had explained his no-show at Macworld, this month’s annual cult-like gathering of Apple devotees, with a letter stating that a hormone imbalance had caused him to lose a troubling amount of weight. Jobs, who underwent surgery for pancreatic cancer in 2005, looked gaunt at his last public appearance in September. Hormonal imbalance is a common symptom of pancreatic cancer and could signal that Jobs isn’t done battling the often terminal illness, said Rob Enderle of the Enderle Group in Silicon Valley. “It is likely that he is not coming back, because he wouldn’t step away from this job for five minutes unless it was critical,” Enderle said. Apple has been notoriously secretive about Jobs’s health and speculation has been rampant since it was announced that for the first time in 11 years he would not give the keynote speech at the Macworld Expo. Marketing vice president Phil Schiller gave the keynote at Macworld, which ran from January 6-9 and featured companies promoting gadgets, gear, software or services tailored for Apple products. NPD Group analyst Stephen Baker said Jobs’s absence should not cripple the company. As Apple’s chief operating officer, Cook has been in charge of the nitty-gritty running of the company. Cook also heads the California firm’s Macintosh computer division. However, in the public’s eyes Jobs is Apple incarnate. Apple was teetering on the brink of ruin when Jobs returned to the helm in 1996 and led it to marketplace glory. He had left the company in 1985 after an internal power struggle. Born in San Francisco on 24 February, 1955 to a single mother and adopted at a young age, Jobs founded Apple in 1976 with engineer Steve Wozniak after dropping out of college. Source: Tech News - Livemint.com | 15 Jan 2009 | 5:54 am Oil down $1 to $36 on demand outlookPerth: Oil fell $1 on Thursday to near $36 a barrel, extending an overnight decline as grim data from the world’s major economies and the return of a banking crisis further darkened the global energy demand outlook. Asian shares followed their US counterparts down, hitting a 5-week low as weak US retail sales data overnight was followed by a record fall in Japanese machinery orders, while continued strength in the dollar against the euro also weighed on crude. US light crude for February delivery was down 88 cents at $36.41 a barrel by 10:30am, after having fallen by as much as $1.15. London Brent crude fell 73 cents to $44.35 a barrel. “The bad economic news has continued to pour in and concerns about demand destruction are exerting a lot of downward pressure on oil,” said Victor Shum, an analyst at Purvin & Gertz in Singapore. The US Commerce Department said on Wednesday that total retail sales fell 2.7% last month. Other countries’ indicators are also showing signs of trouble, with core Japanese private-sector machinery orders falling a record 16.2% in November, the German economy contracting sharply in the final quarter of 2008 and euro zone industrial output plunging in November. Slowing economic growth means less need for oil, a link confirmed by figures showing US distillate demand fell to the lowest level in five years, causing stocks to surge by 6.4 million barrels in the week to 9 January. Crude stocks also rose for the third consecutive week, by 1.2 million barrels to 326.6 million barrels, according to the Energy Information Administration. Supplies at the NYMEX delivery point in Cushing, Oklahoma, were up 800,000 barrels at 33 million barrels, a record storage level at the site. Analysts said oil traders will be looking towards U.S. economic indicators due out later on Thursday, including weekly jobless claims and monthly producer price changes, to gauge how the economy is faring. Renewed doubts about Citigroup and Bank of America over their ability to fund their massive losses have revived jitters and suggested that the worst of the financial crisis was not yet over. Oil prices have toppled from record highs over $147 a barrel struck in July as the economic crisis clips global oil demand, with the EIA now forecasting world consumption will drop by more than 800,000 barrels per day (bpd) this year. “The key supporting factor continues to be Opec cuts and until we see a clearer picture of compliance and some signs of economic recovery, the outlook for oil remains rather bleak,” said Shum With recent supply cuts by producer group Opec having had little success in propping up collapsing oil prices, several members, including top exporter Saudi Arabia, have said that the group may reduce output again in March. Source: Home - Livemint.com | 15 Jan 2009 | 5:50 am Long-struggling Nortel files for bankruptcyToronto: Nortel Networks Corp. spent years ringing up multiple rounds of layoffs as it tried to fix big problems in its business. But it couldn’t ward off the recession. The telecommunications equipment maker filed for bankruptcy protection in Canada and the US on Wednesday, becoming the first major technology company to take that step in this global downturn. The filing came a day before Nortel was due to make a debt payment of $107 million. Facing a sharp drop in orders from phone companies, Nortel used the bankruptcy filings to buy time to explore restructuring options like selling off assets. Some help already is coming from the Canadian government. The Toronto-based company said in a release that it had been in the process of a turnaround since late 2005, but “the global financial crisis and recession have compounded Nortel’s financial challenges and directly impacted its ability to complete this transformation.” “Nortel must be put on a sound financial footing once and for all,” Nortel’s chief executive, Mike Zafirovski, said in the statement. As of its last quarterly filing, Nortel had $4.5 billion in debt and $2.4 billion in cash. Nortel said Wednesday its cash position remains $2.4 billion, but it did not immediately reveal its total assets or its debt load. During the 1990s telecom and Internet boom, Nortel had more than 95,000 employees and a market capitalization of $297 billion. At one point in 2000 it accounted for one-third of the market value on the entire Toronto Stock Exchange. After the dot-com bust, Nortel had problems of its own: an accounting crisis that sparked shareholder lawsuits, regulatory investigations and the firing of key executives, including CEO Frank Dunn. By the time stock trading closed Tuesday, before the bankruptcy filing, Nortel’s market value was just $155 million. Its work force was down to about 26,000 people. Canadian industry minister Tony Clement said the government is willing to help Nortel restructure as a viable company by providing up to $24 million in short-term financing and is open to discussing other loans. Even so, analysts were pessimistic about Nortel’s prospects. Given the long-term service contracts associated with telecommunications network equipment, “you have to really convince your customers that you’re going to be around,” CreditSights analyst Ping Zhao said in a recent interview. Lisa Pierce, an analyst with Forrester Research, said Wednesday that Nortel now can expect to lose more business to competitors like Cisco Systems Inc. and China’s Huawei Technologies Co., which already have been gaining share. Then again, without protection from creditors, Nortel faced a shrinking pool of options. The recession hit information-technology spending worldwide, and frozen credit markets made it more difficult to sell off business units to raise cash. The company has yet to find a buyer for its Metro Ethernet unit, which it has been shopping since September. In the meantime, some customers have been delaying orders from Nortel as the company’s viability has come into question, UBS analyst Nikos Theodosopoulos said. “Nortel has enough cash to run its business this year and probably a good part of next year as well,” he said. But he added that a bankruptcy would give the company “a better chance to preserve itself.” It marks a humbling comedown from a storied history. Nortel was founded as Northern Electric and Manufacturing in 1895, supplying equipment for Canada’s telephone system. The company pioneered digital network switches in the 1970s and grew into a major telecommunications supplier after the US breakup of AT&T in 1984 expanded competition in the industry. By 1997, the year John Roth took over as chief executive, Nortel had become the world’s second-largest telecommunications gear maker behind AT&T spinoff Lucent Technologies. Roth led the company into the wireless and Internet communications markets as the dot-com craze drew vast investment in fiber-optic networks. “Nortel was going through that mega-growth stage and on paper it was the right move,” said Ronald Gruia, a Frost & Sullivan analyst who worked for the company for 4 1/2 years before leaving in 2001. But like many observers, Gruia said Nortel grew too quickly, overpaying for acquisitions with its inflated stock. He pointed to Nortel’s $2.1 billion purchase of Clarify Inc. in 1999. The company was supposed to provide a “second wave” of so-called e-business technology, helping businesses and customers interact. Instead Nortel sold the unit to Amdocs Ltd. in 2001 for only $200 million. By that time Nortel was bleeding revenue as the dot-com bubble burst and spending on network gear vanished. Nortel lost $27 billion in 2001. In 2004, the US Securities and Exchange Commission launched a formal investigation into Nortel’s financial statements. The agency accused Nortel of manipulating its books in 2000, 2001 and 2003 to make it appear the company was holding up better during the technology implosion. Beginning in 2002, Nortel also fudged numbers to meet financial analysts’ expectations in quarterly earnings reports, the SEC charged. Nortel eventually came to a $35 million settlement in the case in 2007. It is unclear what Nortel’s bankruptcy will mean for its sponsorship of the 2012 Summer Olympics in London. Nortel committed last July to providing about £40 million ($58 million) in cash and communications infrastructure. Nortel also is a sponsor of the 2010 games in Vancouver, British Columbia, but officials there said Nortel had already met many of its commitments and reaffirmed it would meet its future obligations by May. Source: Tech News - Livemint.com | 15 Jan 2009 | 5:08 am Motorola to cut 4,000 more jobs, sees weak salesNew York: Motorola Inc will slash another 4,000 jobs, or an estimated 6% of its workforce, and warned that it would have a fourth-quarter loss as sales of mobile phones were weaker than expected. Analysts had been expecting a new round of job cuts at Motorola, after 6,700 employee departures in 2008, as the economic downturn and a slump in demand for mobile phones add more pressure on a company that had already been losing market share to rivals like Nokia. Motorola said on Wednesday that the latest move brings its cost cuts to $1.5 billion for 2009 - $700 million in new savings on top of a previously announced plan for $800 million in expense cuts. It estimated its fourth-quarter net loss per share at 7 cents to 8 cents, including unusual charges of 6 cents a share, but warned that the loss could be even wider as it is still working out items such as impairment testing and income taxes. The Schaumburg, Illinois-based company said its fourth-quarter revenue would range from $7 billion to $7.2 billion, compared with the average analyst forecast for revenue of $7.5 billion, according to Reuters Estimates. Motorola’s shares fell a penny to $4.10 after closing 21 cents lower, or almost 5% at $4.11 in regular trade on the New York Stock Exchange. Spiraling losses Motorola said it sold about 19 million handsets in the fourth quarter of 2008. That fell short of several analysts’ estimates of 22 million and above. Motorola, which had already dropped to fourth place in the global handset market in the third quarter with sales of 25.4 million, had sold 40.9 million in the fourth quarter of 2007. It cited weakness in consumer demand as well as customer inventory reductions for its poor handset sales, While this is in step with a warning from its strongest competitor, Nokia, that industry cell-phone sales were set to shrink by 5% or more in 2009, analysts said Motorola’s problems were much worse than its rivals’. Avian Securities analyst Matthew Thornton said broad weakness in demand was compounded by Motorola’s weak products. Another analyst, Ed Snyder of Charter Equity Research, said that while the cuts were necessary, they may also hurt the company’s efforts to create popular new cell phones. Motorola said the 4,000 new job cuts include about 3,000 positions in the mobile-devices business and about 1,000 jobs from corporate functions and other business units. It said that layoffs announced on Wednesday and in October would reduce its mobile-phone unit’s workforce by 25%, or 5,000 employees. In October, it announced 3,000 layoffs, with about two-thirds from the handset unit. Co-Chief Executive Sanjay Jha said in a statement that $1.2 billion of the $1.5 billion savings plan would apply to mobile devices. Motorola ended 2008 with $7.4 billion cash, he said. Motorola said it could not give its total workforce number until it finishes preparing its annual report for 2008. It said that after ending 2007 with 66,000 employees, 4,800 had left by September before it announced 3,000 layoffs. It said that 1,900 of the 3,000 layoffs were planned for the fourth quarter. Excluding any additional hires, that would leave it with a 59,300-employee base at the end of 2008. The company had announced a charge for severance charges of 2,600 in the first quarter last year. It did not say now many of the 4,800 employees who had left in the first nine months of last year were layoffs or voluntary departures. The company said that besides mobile devices its other two units were performing well in the challenging environment. Its Enterprise Mobility unit sells equipment to businesses and its Home and Networks Mobility unit sells television set-top boxes and network gear to service providers. Source: World Business - Livemint.com | 15 Jan 2009 | 4:51 am Google cuts recruiting staff as hiring slowsBy AFP San Francisco: Google said on 14 January it was cutting its recruiting staff by 100 people as it slowed hiring due to dismal economic conditions. “Google is still hiring, but at a reduced rate,” the Internet titan’s vice president of People Operations, Laszlo Bock, wrote in a blog posting on the California company’s website. “Given the state of the economy, we recognized that we needed fewer people focused on hiring.” The staff trimming came after Google stopped using many of its outside contractors, including those that provided recruiting services. “We have with great regret decided that we need to go further and reduce the overall size of our recruiting organization by approximately 100 positions,” Bock wrote. “We know this change will be very difficult for the people concerned, and we hope that many of them will be able to find new roles at Google.” Source: Tech News - Livemint.com | 15 Jan 2009 | 4:28 am Nortel files for bankruptcy, shares plungeTORONTO (Reuters) - Nortel Networks Corp, North America's biggest telephone equipment maker, filed for bankruptcy on Wednesday, hoping to save a once highflying business whose decade-long decline has accelerated with the global economic crisis.Source: Reuters: Money News | 15 Jan 2009 | 3:26 am Amendments to IT Act tighten cyber security And clearly of crime, too—it is also used as a medium to exchange information for carrying out financial frauds and terrorist activities in the physical world. Cyber crimes are committed both in the physical world and in cyberspace by exploiting weaknesses in networks and computer resources. Securing of systems through cyber security measures, including their physical security, is essential to protecting cyberspace, thereby reducing chances of unsecure systems becoming vulnerable to attack, or being used to commit crimes. Nations have to take steps to secure systems within their borders even though cyberspace is borderless. Cyber security is essential for a nation’s internal security. It is in this context that the passing of the Information Technology (Amendment) Bill, in the last Lok Sabha session in December, has to be viewed. The primary objective of the Information Technology Act, 2000, or IT Act, was to provide for legal recognition of electronic documents, and of digital signatures at par with handwritten signatures for e-commerce and e-governance applications in line with the Uncitral Model Law on Electronic Commerce, adopted by the UN Commission on International Trade Law (Uncitral), in January 1997. The Act created a legal environment that was conducive to the growth of e-commerce. To inspire trust in e-commerce and e-governance, we need appropriate laws to bring cyber criminals to justice. Most countries have created separate laws to deal with computer misuse. India chose to have an omnibus law when it legislated the IT Act that included not only provisions for electronic records, digital signatures and certifying authorities, but also those that deal with unauthorized access to computer systems and some forms of cyber crime. The IT Act created a basic legal framework for e-commerce to promote trust in the electronic environment through acceptance of electronic documents and digital signatures as evidence in a court of law; promoted e-commerce and e-governance as major applications through legal sanctity accorded to electronic records and digital signatures; acceptance of electronic documents by the government, and provided for dealing with offences in cyberspace in the form of hackers and other criminals trying to gain access to databases and other business sites. However, cyberspace has seen a significant increase in crime worldwide. India is home to the fourth highest number of Internet users in the world; cyber crimes recorded a 50% jump in 2007 over the previous year, under the IT Act, according to the National Crimes Record Bureau. Not many cyber criminals could be brought to justice for want of adequate enabling provisions and other technical-legal requirements for collection of cyber forensic evidence and its acceptance in courts. Besides a host of crimes that were not covered in the Act, there were problems due to the non-availability of data logs in servers and communication devices of Internet Service Providers (ISPs), cyber cafés and other organizations. There were no uniform guidelines for maintenance of logs by these service providers. Cyber cafés, for example, are governed by guidelines issued by state governments or under police orders. With such incoherent and incomplete processes, it has been difficult to arrest criminals and terrorists who have often used cyber cafés to communicate among themselves or have sent threatening mails to their targets. While the amendments to the IT Act were triggered by the arrest of Avnish Bajaj, CEO, Baazi.com (now part of eBay) for allegedly transmitting obscene images of schoolchildren, as an intermediary, the initial focus of the committee set up by the government to review the Act was on defining the intermediary. At the IT industry’s instance, the government enlarged its scope to deal with data protection issues that were assuming importance. Outsourcing to Indian IT firms by customers in the US, the UK, Europe, Australia and other countries requires that the privacy of clients’ data handled by these firms is maintained and that there should be an enabling legal environment in India to address breaches of confidentiality and integrity of data. Continued growth of outsourcing, with present revenues of nearly $50 billion (Rs2.44 trillion), depends to a large extent, on having a data protection regime that creates trust in trans-border data flows to India. Cyberspace security for data protection includes everything—from e-commerce and e-governance growth to electronic signatures, data protection, encryption, protection of critical information infrastructure, cyber security and national security. Amendments to the IT Act try to address all these. Kamlesh Bajaj is chief executive officer, Data Security Council of India. The views expressed here are his personal views. He can be reached at kkbajaj@gmail.com This is the first of a four-part series on cyber security. Source: Tech News - Livemint.com | 15 Jan 2009 | 12:41 am Long-struggling Nortel files for bankruptcyToronto: Telecommunications equipment maker Nortel Networks Corp. filed for bankruptcy protection in Canada and the US on Wednesday, becoming the first major technology company to take that step in this global downturn. Facing a sharp drop in orders from phone companies, Nortel filed for court protection a day before it was due to make a debt payment of $107 million. Protection from its creditors would give the company more opportunities to explore restructuring options or sell off assets. Some help already is coming from the Canadian government. The long-struggling Toronto-based company said in a release that it had been in the process of a turnaround since late 2005, but the global financial crisis and recession have compounded Nortel’s financial challenges and directly impacted its ability to complete this transformation. “Nortel must be put on a sound financial footing once and for all,” Nortel’s chief executive, Mike Zafirovski, said in the statement. As of its last quarterly filing, Nortel had $4.5 billion in debt and $2.4 billion in cash. Nortel said on Wednesday that its cash position remains $2.4 billion, but it did not immediately reveal its total assets or its debt load. The filing in Delaware revealed that The Bank of New York Mellon Corp. is a trustee on nearly $4 billion of debt. Nortel’s other creditors include the contract manufacturer Flextronics International Ltd. During the 1990s telecom and Internet boom, Nortel had more than 95,000 employees and a market capitalization of $297 billion. At one point in 2000 it accounted for one-third of the market value on the entire Toronto Stock Exchange. When trading closed on 13 January, before the bankruptcy filing, Nortel’s market value was just $155 million. Its work force was down to about 26,000 people. Trading resumed late Wednesday morning and the stock dropped 66% in Toronto. Nortel has been attempting to recover for years from an accounting crisis that sparked shareholder lawsuits, regulatory investigations and the firing of key executives, including CEO Frank Dunn. Nortel spokesman Mohammed Nakhooda declined to comment on what assets Nortel will now try to sell off. It is also unclear what the bankruptcy will mean for Nortel’s sponsorships of the 2010 Olympic Winter Games in Vancouver and the 2012 Games in London. Canadian Industry Minister Tony Clement said that the government is willing to help Nortel restructure as a viable company. Clement said the government has already agreed to provide up to $24 million in short-term financing and is open to discussing other loans. “The government of Canada appreciates the importance of the telecommunications industry to our economy,” Clement said in a statement. Since Nortel acknowledged in December that it was considering a bankruptcy filing, analysts have split over the wisdom of it. “They would gain very little out of the bankruptcy filing and lose a lot,” CreditSights analyst Ping Zhao said in a recent interview. Given the long-term service contracts associated with telecommunications network equipment, you have to really convince your customers that you’re going to be around. On the other hand, without protection from creditors, Nortel faced a shrinking pool of options. The recession hit information-technology spending worldwide, and frozen credit markets made it more difficult to sell off business units to raise cash. The company has yet to find a buyer for its Metro Ethernet unit, which it has been shopping since September. In the meantime, some customers have been delaying orders from Nortel as the company’s viability has come into question, UBS analyst Nikos Theodosopoulos said. “Nortel has enough cash to run its business this year and probably a good part of next year as well,” he said. But he added that a bankruptcy would give the company a better chance to preserve itself. This is what Matthew Wray, spokesperson, Nortel Asia had to say in response to the questions below: Will this have an impact on your India operations? Our affiliates across Asia, including India, are not included in these proceedings and are expected to continue to operate as normal. We remain fully committed to supporting our customers, all our stakeholders and our R&D investments in India and around the world through this process. No announcements were made today regarding strategy. Have you got enquiries from your Indian customers on the status of the work they do with you? We have been – and continue to be – in active communication with all our customers in India and globally. The process we announced today is designed to translate our improved operational efficiency, double-digit productivity, focused R&D and technology leadership into long-term success. Nortel is dedicated to delivering world-class solutions and services to our customers. How many Indian vendors do you outsource? We have strong ongoing relationships with many vendors across India. No announcements were made today regarding strategy. Source: World Business - Livemint.com | 14 Jan 2009 | 7:47 pm Court asks DoT to explain 3G policyThe drama over the third-generation, or 3G, telecom services policy took a new twist today with a Delhi High Court Bench headed by the Chief Justice A P Shah directing the Department of Telecommunications (DoT) to file an affidavit explaining why it cannot auction all the available blocks of spectrum in the upcoming auction of 3G spectrum.Source: Business Standard | Front Page Headlines | 14 Jan 2009 | 7:30 pm Tobacco FDI attracts global lobbyInternational governments and global tobacco players from Switzerland, Japan and the US have come together to lobby against a government move to ban Foreign Direct Investment (FDI) in tobacco.Source: Business Standard | Front Page Headlines | 14 Jan 2009 | 7:28 pm Biyani's sales fall for first time in four yearsPantaloon Retail, the countrys largest retailer, has seen its sales dip for the first time in four years, on subdued consumer sentiment and uncertain prospect of an economic revival. Reflecting the trend, the stock of the company fell 5.1 per cent to Rs 189.8, even as the Sensex rose 3.3 per cent.Source: Business Standard | Front Page Headlines | 14 Jan 2009 | 7:26 pm Section of UPA wants Hyderabad metro award to Maytas scrappedAs a fallout of the financial irregularities in Satyam Computer Services, a section of the United Progressive Alliance (UPA) government is in favour of cancelling the award of the Hyderabad Metro Rail project. The project was won by the Nava Bharat-led consortium, in which Maytas Infra, a listed firm related to Satyams promoters, is one of the partners.Source: Business Standard | Front Page Headlines | 14 Jan 2009 | 7:25 pm TED’s dinner party coming to IndiaNew Delhi: Fifty artists, writers, researchers—and perhaps even contortionists—will descend on the Mysore campus of Infosys Technologies Ltd in November for the first edition of TED India, where they would have 18 minutes each to speak or perform, as their art or science demands. These will then be edited and webcast on www.ted.com, a hugely popular site for those who like to air interesting and innovating ideas and those who like to listen to them. TED, short for technology, entertainment and design, was conceived by Richard Saul Wurman—whom Fortune magazine once profiled as the king of access and a master networker with an insatiable curiosity and an attention span of nanoseconds. Also See The Ideas Meeting (PDF) Array Of Talent (Graphic) The inspiration for his project was “typically Indian”, Wurman told Mint. “I wanted to do something that was right. Something that made me feel good,” he said over the phone from Newport, Rhode Island. “And I was inspired by my mentor.” Wurman’s mentor was celebrated architect Louis Kahn who, Wurman says, was almost “100% Indian” by the time he died. Kahn spent several years in India working on projects that include the campus of the Indian Institute of Management, Ahmedabad. “Wurman called it (TED conferences), ‘the dinner party I always wanted to have,’” says Lakshmi Pratury, founder and chief executive of Ixoraa Media, an event organizer that is laying the groundwork for the Indian conference. Pratury says many of the participants at Mysore will be Asians, but a final list will be only announced a few months before the event. TED’s February edition in Long Beach, California, features Microsoft Corp. founder Bill Gates, World Wide Web inventor Tim Berners-Lee, beatbox musicians Naturally 7, Infosys co-founder Nandan Nilekani, jazz musicians Jamie Cullum and Harbie Hancock, and neurologist Oliver Sacks, besides many other luminaries and oddballs. “Think of it as a dinner party conducted by a trusted host,” Wurman said of a TED conference, the first edition of which began in the US in 1984. “You’ve never seen any of the other speakers before. But you trust the host to invite the right people.” In 2002, Wurman sold TED to the Sapling Foundation, a non-profit organization, and is no longer involved with the conference. The conference, which quickly grew out of its focus on technology, entertainment and design, allowed thinkers from all walks of life the space to present their ideas, within a framework of rules that outlawed brand or product pitching or overshooting the clock. The real action then happened in the hallways and meeting rooms where the hand-picked speakers powwowed with a set of hand-picked listeners—Pratury calls it “audience curation”—who paid top dollar for the privilege. An annual TED membership, which includes access to the conference, networking tools and newsletters, costs $6,000 (about Rs2.92 lakh). It seems like a hefty price to pay for four days of lectures on topics ranging from how to use the controller of a Nintendo Wii gaming console to make a low-cost interactive whiteboard to neurologist V.S. Ramachandran’s 2007 TED lecture on using “delusions” to understand the connections between the brain and the mind. But TED conferences usually sell out an entire year in advance and Pratury expects thousands of potential attendees from all over the world, and particularly Asia, to show interest in TED India. What began as the information junkie’s ultimate long weekend—the conferences always start on a Wednesday and go up to Saturday afternoon—soon began to bring together its retinue of experts, chief executives and eccentrics in funny ways. One of the more popular outcomes of TED-melded minds was Wired magazine, which came out of a meeting between founders Louis Rosetto and Jane Metcalfe and eventual funder Nicholas Negroponte, the founder of Media Lab at the Massachusetts Institute of Technology. Wurman says that the conferences had quickly developed a huge party atmosphere. “People even got married during the conference.” When Nilekani takes the state in Long Beach he will be the first Indian to do so. “I will need to put my best foot forward,” says Nilekani. It will be his first visit to TED and Nilekani admits that the 18-minute time limit will be a challenge. “Thankfully my book has exactly 18 points in it and I should be able to improvise something with that,” Nilekani explains referring to his debut book Imagining India: Ideas for the New Century. Pratury is a committed TED enthusiast—or TEDologist— having attended the conferences for the past 14 years. In 2007, at the same conference as Ramachandran, Pratury spoke on the lost art of letter-writing, illustrating her presentation with handwritten notes she got from her father before he died. While the conferences themselves are limited by an attendee intake of 1,500—TED India will have just 800—TED has lately taken on a larger profile and reached out to an audience of millions via TED.com. “We wanted to take the event out to much more people through the Internet. So we started posting TED talks on the website that anyone can view for free,” says Pratury, referring to the tightly edited video clips of presentations that enthusiasts can stream or download. In June 2008, TED announced that the 50 millionth video had been viewed, and almost half of them from outside the US. It was the need to make TED more global that prompted Indian TEDologists such as Pratury to suggest that a conference be held in the country. “Even thought we are calling it TED India, the event is really for all of South-East Asia,” Pratury clarifies. While plans are still tentative, Pratury expects the event to be held here every second year. Wurman considers it symbolic that India will host TED: “It would have been easier to do it in Singapore or even Shanghai.” It is India’s status as an emerging power, and its history of ideas that Wurman believes make it a perfect host for the conference. Despite the online popularity and cult following, Pratury is careful about selling the concept to the right “curated” people in India. “Most industry leaders here want to achieve something when they attend a conference. Win more business or get five ways to make wireless work or something like that. We need to convince them that attending TED is not about that. It’s about knowledge for knowledge’s sake,” she says. To help get this message across, TED will be conducting a couple of public outreach events in March and April and registrations will also open around that time. Tickets will by no means be cheap—prices are still being finalized—and only 800 seats are available. A team from TED will sift through entries to ensure a good mix in terms of areas of specialization, country of origin and even gender. Besides the intellectual curiosities on display, they also get to take home goodies, including the much-sought-after TED teddy bear. Pratury won’t divulge too much, but states that the teddy bears and other goodies given out will have a distinct regional flavour. But the focus will always be on the meticulously produced presentations. “Ultimately”, Pratury explains, “it is an opportunity to listen to brilliance.” sidin.v@livemint.com Graphics by Sandeep Bhatnagar / Mint Source: Tech News - Livemint.com | 14 Jan 2009 | 7:23 pm Don't rely on our Satyam audits: Price WaterhouseDeloitte, KPMG to help board restate financials.Source: Business Standard | Front Page Headlines | 14 Jan 2009 | 7:23 pm
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