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Whats expected at Unitechs EGM on Jan 19?The Unitech extraordinary general meeting is scheduled on Monday and its fixed maturity plan payments are due next week. So, what decisions are likely to be taken up at the meet?Source: Moneycontrol Top Headlines | 16 Jan 2009 | 5:29 pm Daiichi Sankyo to make Zenotech open offer in 710 daysRanbaxy had acquired a series of strategic stakes in 2007 and the market is awaiting the mandatory open offer of Zenotech, which Ranbaxy had acquired in October 2007. Sources say the open offer is likely in 710 days.Source: Moneycontrol Top Headlines | 16 Jan 2009 | 5:04 pm Decision on police custody for Ramalinga Raju on Jan 17Ramalinga Raju\'s bail petition was heard in the Nampally court in Hyderabad today. There are three main aspects to look into the Satyam case. First, Rajus lawyer Bharat Kumar and his team are going to seek bail application procedures for the Raju brothers and Srinivas Vadlamani.Source: Moneycontrol Top Headlines | 16 Jan 2009 | 4:59 pm ML cuts ABG Shipyard\'s price from Rs 810 to Rs 42/shMerrill lynch has cut price objective on ABG Shipyard by almost 95% to Rs 42 from Rs 810 per share. This is a classic case where a brokerage house has taken a complete uturn. However, D Datar CFO of ABG Shipyard doesnt agree with Merill Lynchs view of the company.Source: Moneycontrol Top Headlines | 16 Jan 2009 | 4:37 pm ITC hikes prices of Gold Flake Premium by Re 1 per packITC has hiked prices of Gold Flake Premium in Maharashtra, reports NewsWire18s correspondent Manuja Pandey. The cigarette manufacturer has hiked Gold Flake Premium price by Rs 1 to Rs 28 per pack of 10 cigarettes. The company hiked prices a couple of days back.Source: Moneycontrol Top Headlines | 16 Jan 2009 | 4:00 pm Fund raising not hindered by Satyam fiasco: IVRCLSudhir Reddy, CMD of IVRCL a Hyderabadbased realty company, said it has not found it difficult to raise funds post the Satyam fiasco. He said sentiment in the real estate sector had been down and was not an aftermath of the Satyam deal.Source: Moneycontrol Top Headlines | 16 Jan 2009 | 3:38 pm Not pulled out of HITech City project: PuravankaraPuravankara Projects has said the company has not pulled out of the HiTech City project in Hyderabad. Ravi Ramu, Director Finance, Puravankara, said the company had only sought the Andhra Pradesh government\'s nod on a waiver for third tranche, which was granted.Source: Moneycontrol Top Headlines | 16 Jan 2009 | 2:24 pm RComm, Etisalat to tieup for tower biz soonReliance Communications is close to tying up with Etisalat, a UAEbased company, for its tower business, reports CNBCTV18, quoting sources. The RCommEtisalat pact may be under a revenue sharing model for 15 years. Revenue from this pact may be around Rs 1,5002,000 crore annually.Source: Moneycontrol Top Headlines | 16 Jan 2009 | 2:04 pm Bank of America gets capital; Merrill loses $15.3 blnNEW YORK (Reuters) - Bank of America Corp, posted its first quarterly loss in 17 years on Friday and slashed its dividend, hours after winning a multibillion-dollar lifeline from the U.S. government to help absorb Merrill Lynch, which lost a record $15.31 billion in the quarter.Source: Reuters: Money News | 16 Jan 2009 | 1:32 pm Hyatt to develop 6 hotels with Rs 1,000 cr investmentGlobal Hyatt Corporation plans to develop six properties in India with an investment of around Rs 1,000 crore in 3-4 years in a joint venture with real estate firm Emaar MGF.Source: Daily News & Analysis: Money News | 16 Jan 2009 | 1:29 pm Auto sales sluggish despite Reserve Bank boost: Mahindra - Hindu
Source: Google News India - Business | 16 Jan 2009 | 1:24 pm Wall Street layoff storm also soaks office landlordsNEW YORK (Reuters) - Wall Street's employment tsunami, most recently swamping Citibank Inc, is also undermining the island of Manhattan's 443 million square foot office market, threatening to drag rents down 35 percent from a second quarter 2008 high.Source: Reuters: Money News | 16 Jan 2009 | 1:23 pm 'Confiscate Satyam-Maytas land, pay salaries to workers' - Hindu
Source: Google News India - Business | 16 Jan 2009 | 1:23 pm Jet Airways Q3 net loss widens to Rs 214.18 crPrivate sector carrier Jet Airways' net loss widened on Friday to Rs 214.18 crore for the third quarter ended December 31 from Rs 91.12 crore in the year-ago period.Source: Daily News & Analysis: Money News | 16 Jan 2009 | 1:20 pm World Bank to give USD 3 bn to India for bank recapIndia expects to get USD three billion from the World Bank in two tranches by March 31, 2010, to help it recapitalise public sector banks, besides National Housing Bank and EXIM Bank.Source: Daily News & Analysis: Money News | 16 Jan 2009 | 1:11 pm 'India to grow at 7 to 7.5 pc in 2009' - Economic Times
Source: Google News India - Business | 16 Jan 2009 | 1:10 pm Bank of America gets capital; Merrill loses $15.3 bln - Reuters
Source: Google News India - Business | 16 Jan 2009 | 1:08 pm Raju brothers bail plea to be heard MondaySatyam Computer Services' disgraced founder B. Ramalinga Raju and his brother B. Rama Raju will have to spend three more days behind bars as a court here deferred a decision on their bail plea for Monday.Source: IndiaeNews.com: Business News | 16 Jan 2009 | 1:03 pm PM to address India Inc at Hotel TridentPrime Minister Manmohan Singh will address India Inc at the Hotel Trident-Oberoi - one of the sites of the Nov 26-29 Mumbai terror attacks - Saturday.Source: IndiaeNews.com: Business News | 16 Jan 2009 | 1:02 pm Haryana, Maruti to set up Rs.250mn driving schoolHaryana has tied up with automobile giant Maruti-Suzuki to set up a Rs.250-million (Rs.25-crore) driving training and research school in the state.Source: IndiaeNews.com: Business News | 16 Jan 2009 | 1:01 pm Himachal to market apple waste manureHimachal Pradesh will market organic manure produced from apple solid waste, a senior official said Friday.Source: IndiaeNews.com: Business News | 16 Jan 2009 | 1:00 pm We want to get to bottom of DDA scam: Delhi Police chiefDelhi Police Commissioner Y.S. Dadwal Friday said the enquiries in the Delhi Development Authority (DDA) scam are in the initial stage and they want to 'get to the bottom of the case' before making a recommendation whether the allotments should be cancelled.Source: IndiaeNews.com: Business News | 16 Jan 2009 | 1:00 pm L&T in talks with NPCIL for forging JV - Economic Times
Source: Google News India - Business | 16 Jan 2009 | 12:47 pm IRDA plans to up ULIP lockin period to 5 yearsInvestor money in unit linked insurance plans (ULIP) could be locked in for five years. This is what insurance regulator, Insurance Regulatory and Development Authority (IRDA) is planning to implement.Source: Moneycontrol Top Headlines | 16 Jan 2009 | 12:44 pm Oil cos revenue loss estimated at Rs1,01,445 cr in fy09New Delhi: State-run oil companies are expected to log Rs1,01,445 crore revenue loss on sales of petrol, diesel, kerosene and domestic LPG this fiscal, despite softening of global crude oil prices. In July last year, when international crude prices touched an historic high of $147 a barrel, Indian Oil, Hindustan Petroleum and Bharat Petroleum together were projected to lose Rs2,45,305 crore in revenues. But with crude falling to four-year low, the losses have trimmed to Rs1,01,445 crore, a Petroleum Ministry official said. The three firms are currently making a profit of Rs9.86 a litre on petrol and Rs3.48 per litre on diesel but continue to lose Rs12.16 on sale of kerosene through public distribution system and Rs32.97 per domestic LPG cylinder. The healthy margins on petrol and diesel has prompted the government to think of another round of price cut in the two auto fuels, the official said. On cards is a Rs5 a litre cut in petrol price and Rs2 per litre reduction in diesel price. Domestic LPG prices are also likely to be lowered by Rs25 per 14.2-kg cylinder. The official, however, said the timing of the reduction is yet to be decided as many in the government felt the cut should come closer to the general elections for voters to remember. The final call is likely to be taken by Prime Minister Manmohan Singh and ruling UPA chairperson Sonia Gandhi, he said. The basket of crude oil, India buys, has averaged $44.88 per barrel in January as against the December 2008 average of $40.61 a barrel. Indian basket of crude has averaged $93.61 per barrel this fiscal as opposed to $79.25 a barrel average procurement price in 2007-08. Source: Home - Livemint.com | 16 Jan 2009 | 12:41 pm Jet Airways eyes 18-20% margins going forward - Moneycontrol.com
Source: Google News India - Business | 16 Jan 2009 | 12:36 pm Indian rupee gains as global risk aversion eases - Reuters India
Source: Google News India - Business | 16 Jan 2009 | 12:35 pm Sensex, Nifty end strong but turnover dismal - Economic Times
Source: Google News India - Business | 16 Jan 2009 | 12:25 pm India to grow at 7-7.5 pct in 2008/09 - officialNEW DELHI (Reuters) - India's economy is expected to grow at 7-7.5 percent in the current fiscal year after growing at about 9 percent for the last three years, a top finance ministry official said on Friday.Source: Reuters: Money News | 16 Jan 2009 | 12:24 pm Could Sundaram be Satyam's new entity? - Economic Times
Source: Google News India - Business | 16 Jan 2009 | 12:20 pm Rupee gains as global risk aversion easesMumbai: The rupee strengthened on Friday as strong gains in local shares buoyed hopes for fresh capital inflows, while the dollar’s slide against other major currencies overseas helped sentiment. The partially convertible rupee closed at Rs48.78/80 per dollar, 0.5% stronger than Thursday’s close of Rs49.03/04. Over the week, though, it lost 1% as stocks dropped 0.9%, its fourth dip in seven weeks. “There was good two-way interest in the market today - oil companies were buying dollars while exporters were there to sell, holding the rupee in a range,” a senior dealer at a foreign bank said. “The rupee is likely to stay like this for some time now. It may trade in a Rs48.40 to Rs49.10 range next week,” he added. Shares rose 3% as global risk aversion worries eased after the United States rescued Bank of America and triggered gains across Asia and in Europe. Foreign funds have withdrawn about $410 million from local equities this year, after pulling out more than $13 billion in 2008, but a rise in stock prices could turn the tide. Dealers said the dollar’s weakness against other major currencies also boosted sentiment for the rupee. The euro and the higher-yielding currencies gained against the dollar and yen on Friday as share prices rebounded, buoyed by optimism after the US government pledged to provide fresh financial aid to Bank of America. The US dollar index, which measures the dollar’s strength against other major currencies, was down nearly 1%. One-month offshore non-deliverable forward contracts were at Rs48.97/49.07, weaker than the onshore spot rate. Source: Home - Livemint.com | 16 Jan 2009 | 12:20 pm Citi loses $8.3 bln, separates into two unitsNEW YORK (Reuters) - Citigroup Inc unveiled a plan to break into two businesses as a way to shed troubled assets, and reported an $8.29 billion fourth-quarter loss, its fifth straight quarterly loss.Source: Reuters: Money News | 16 Jan 2009 | 12:19 pm Decision on police custody for Ramalinga Raju on Jan 17 - Moneycontrol.com
Source: Google News India - Business | 16 Jan 2009 | 12:11 pm Exide to start Nano commercial supplies soon - CEOMUMBAI (Reuters) - India's top auto and industrial battery maker, Exide Industries Ltd, will begin commercial supply of batteries for Tata Motors' small car, Nano, in the current Jan-March quarter, a top official said.Source: Reuters: Money News | 16 Jan 2009 | 12:10 pm The Weekly Recap: 11th-16th JanThe inflation rate continues to head southward for the tenth consecutive week and was at 5.24% for the week ended third January. This was below what most analysts expected and many are of the opinion that inflation could drop as low as 2% in the near future. Analyst D.K. Joshi said, “While falling inflation is good news for the common man and retailers, some economists see it differently. They are warning of deflation, where prices drift lower, which leads to consumers perpetually postponing buying decisions in the hope that prices will fall further. Isn’t that odd? Just a few weeks ago economists were fretting about skyrocketing inflation, and now they are worried about the plunging rate of inflation.”  In a related development, the Institute of Chartered Accountants of India has made a host of recommendations to Sebi and the ministry of company affairs on the role of auditors. Ved Jain, president of ICAI said, “ICAI has recommended to SEBI that firms whose partners are found guilty should be debarred from being appointed auditirs of listed companies.” Incidentally a special report in Mint points out that ICAI, investigating the role of audit firm Price Waterhouse in the Satyam Computer Services Ltd fraud, is unlikely to conclude this anytime soon. Going by the fact that ICAI’s probe in Global Trust Bank- Price Waterhouse has been on for four years. In 2004, the Reserve Bank of India had filed a complaint with ICAI following which the regulator of accounting firms found prima facie negligence. And the earnings season kicks off with Infosys and TCS declaring their third quarter results in the shadow of the Satyam scam. Infosys on Friday posted a 25.22% increase in consolidated net profit at Rs 1,231 crore helped by a falling rupee for the quarter ended December 31. This is compared with Rs 983 crore in 2006. The company cut its revenue forecast for the current fiscal and warned it could be 2010 before the struggling Indian tech sector gets back on its feet. TCS’s net was up 7.17% at Rs 1,352 crore rupees, from 1261.5 crore rupees in the previous quarter. Revenue grew 4.65% to Rs 7,277 crore, which was below the 5.7% rate expected by market analysts. And in more shocking news for the IT industry, Wipro Technologies on Monday announced that in June 2007, the World Bank had banned it from contesting for its contracts till 2011 because the company had offered shares to the Bank’s employees during its US IPO in the year 2000. The disclosure follows a similar ban on Satyam that World Bank had announced a few weeks ago. Wipro said the disclosure follows World Bank’s revised disclosure policies. The company however said the offer of shares to employees and clients was part of the Securities Exchange Commission-approved directed share program. Truckers called off their strike unconditionally on Monday after the government said it would set up a committee to look into their demands. The assurance came as a saving race for the truckers as the government had earlier made it clear that it wouldn’t accept any of their demands and instead would come down on the strikers with a heavy hand. Union road transport minister, T.R. Baalu said, “They want to have their leaders released so we said ok, you call off the strike and we’ll press upon the authorities to release them.” Former President, AIMTC, Gurinder Singh said, “ We are partly satisfied. First the results have to come only then we will be fully satisfied.” The committee to be chaired by transport secretary Brahm Dutt who will submit a report within eight weeks on the demands raised by the transporters. Source: LatestNews-Home - Livemint.com | 16 Jan 2009 | 12:07 pm Jet Airways Q3 net loss widens to Rs214.18 croreMumbai: Private sector carrier Jet Airways’ net loss widened on Friday to Rs214.18 crore for the third quarter ended 31 December from Rs91.12 crore in the year-ago period . The Naresh Goyal-led firm told in a filing to the Bombay Stock Exchange that total income rose 24.60% to Rs3,022.83 crore during the quarter under review, from Rs2,425.98 crore in the corresponding period a year ago. “The company during the quarter and nine months ended 31 December, 2008 suffered losses mainly on account of high fuel and other operating costs and lower load factors resulting into lower revenues than expected,” Jet Airways said in a statement. For the nine months ended 31 December, 2008, Jet Airways reported a net loss of Rs455.33 crore, while it had a net loss of Rs31.88 crore in the corresponding period a year-ago. The total income during the nine-month period rose nearly 49% to Rs9,011.33 crore from Rs6,051.20 crore in the same period last fiscal. Shares of Jet Airways closed at Rs157.05, up 1.26% on the BSE. Source: Home - Livemint.com | 16 Jan 2009 | 12:02 pm Auto sales sluggish despite Reserve Bank boost: MahindraAutomobile sales are not picking up as commercial banks have not eased auto loan rates, a senior official of utility vehicle major Mahindra and Mahindra (M and amp;M) said here Friday.Source: IndiaeNews.com: Business News | 16 Jan 2009 | 12:01 pm Markets swing back, recoup most of Thursday lossesPulling down the shutters on a volatile trading week, Indian equities markets closed higher than previous close Friday, with a key index shutting shop 3.06 percent higher almost reversing Thursday's losses.Source: IndiaeNews.com: Business News | 16 Jan 2009 | 12:00 pm Citigroup loses $8.29 billion, splits in twoNew York: Citigroup Inc unveiled a broad restructuring plan designed to shed weaker businesses and troubled assets, and also reported an $8.29 billion fourth-quarter loss, its fifth straight quarterly loss. The company also said on Friday that it anticipated more departures from its board, which is losing Robert Rubin as a director later this year. Nevertheless, Citigroup shares rose 8.6% to $4.16 in premarket trading. Citigroup’s fourth-quarter loss equaled $8.29 billion, or $1.72 per share, and compared with a year-earlier loss of $9.8 billion, or $1.99 a share. “I think people knew it was going to be bad, but I’m surprised it’s this bad,” said Matt McCormick, portfolio manager at Bahl & Gaynor Investment Counsel in Cincinnati. The bank said it was splitting into two operating units, one of which will focus on universal banking, the other on brokerage and retail asset management, local consumer finance, and a pool of assets that require special management. Revenue fell 13% to $5.6 billion, reflecting weak capital markets. The company’s global credit card business saw revenue decline 27% on weakness in North America. Consumer Banking revenues declined 22%, driven by a 47% drop in investment sales. And its institutional clients group, securities and banking revenues were negative $10.6 billion, mainly due to net losses and write-downs of $7.8 billion. “Our results continued to be depressed by an unprecedented dislocation in capital markets and a weak economy,” chief executive Vikram Pandit said. Source: Home - Livemint.com | 16 Jan 2009 | 12:00 pm Oil falls towards $35 after IEA demand reportLondon: Oil slipped towards $35 a barrel on Friday after the International Energy Agency cut its forecast for world oil demand this year sharply and two of the biggest US banks reported massive losses. The IEA said in its monthly oil report that world oil demand would contract as the economic slowdown eroded consumption. The agency revised its estimate for 2009 demand down by 940,000 barrels per day (bpd) to 85.3 million bpd - a fall of about 500,000 bpd year-on-year. Bank of America, which recently absorbed Merrill Lynch, and Citigroup both reported huge losses for their fourth quarters on Friday, including billions of dollars of writedowns from exposure to debt and real estate markets. US light crude for February delivery was down 7 cents at $35.33 a barrel by 1120 GMT, after hitting a low of $34.77. The contract, which expires on Tuesday, touched a low of $33.20 on Thursday, the weakest in nearly a month. London Brent crude for March was up 18 cents at $47.86, maintaining an unusual premium to the US benchmark due to growing US stockpiles and weakening US oil demand. The price of oil for delivery in February has fallen about 14% so far this week, as a string of dismal figures from major economies stung investor confidence and portended further weakness in oil demand in months ahead. “Global oil demand is reducing at an alarming rate,” said Rob Laughlin, senior oil analyst at MF Global in London. In its report, the IEA said Chinese oil demand would grow at its slowest rate in eight years, rising just 90,000 bpd in 2009 as its GDP growth slows to 6.5%. The gloomy global economic outlook has also prompted Opec to forecast a fall of 180,000 barrels per day (bpd) in world oil demand this year. The producer group, which has already cut 4.2 million bpd in supply from the world market since September, could quickly deepen output cuts if needed, Opec President Botelho de Vasconcelos has said. Investors will be keenly watching US CPI data, due at on Friday, which are expected to show a drop of 0.9% in December, while a preliminary index of January consumer sentiment in January is expected to erode to 59.0 from 60.1 in December. The financial crisis has forced a growing number of major economies into recession. Energy consumption has waned sharply, prompting oil prices to tumble by more than $110 since a record peak in July. Analysts said the glut in global crude supplies was likely to cap oil prices for the rest of this year. Source: Home - Livemint.com | 16 Jan 2009 | 11:54 am HDFC offers home loans at discounted ratesMUMBAI (Reuters) - Housing Development Finance Corp, India's top mortgage lender, said on Friday it will offer new home loans at 50 basis points lower than the prevailing rate for a limited period.Source: Reuters: Money News | 16 Jan 2009 | 11:50 am BSE Sensex rebounds 3 pct, outlook cloudyMUMBAI (Reuters) – The BSE Sensex rose 3 percent on Friday as global risk aversion worries eased after the United States rescued Bank of America and triggered gains across Asia and in Europe.Source: Reuters: Money News | 16 Jan 2009 | 11:49 am Campbell settles lawsuit with former employeeSupermodel Naomi Campbell has reached an out of court settlement with former employee Gary Gibson, who had accused her of assault.Source: IndiaeNews.com: Business News | 16 Jan 2009 | 11:32 am Hyatt looks at smaller cities for expansionLuxury hospitality group Global Hyatt Corp is banking on smaller Indian cities for expansion over the next four years, with a company official Friday saying this was where the future lay.Source: IndiaeNews.com: Business News | 16 Jan 2009 | 11:31 am Federal Bank's third quarter profits nearly doubleThe Kerala-based Federal Bank Friday said its net profit was up 98 percent for the third quarter this fiscal.Source: IndiaeNews.com: Business News | 16 Jan 2009 | 11:30 am Bajaj Auto Q3 net crashes 22% at Rs 166 crMumbai: Hit by a massive sales slump, Bajaj Auto on Friday reported a 22.43% decline in net profit for the quarter ended December 2008, at Rs166 crore as against Rs214 crore in the comparable period of the previous year. The company said the turnover during the quarter dipped by 15.84% at Rs2,141 crore as against Rs2,544 crore in the corresponding quarter of 2007-08. Total sales during the third quarter declined by a whopping 31% at 493,748 units as compared to 713,135 units in the same period a year ago. Motorcycle sales during the period declined by 35% at 414,039 units as against 634,316 units in the same period of the previous year. Total two-wheeler sales during the period were at 417,111 units as against 638,716 units in the same period a year ago, a decline of 35%. Three-wheeler sales, were, however, up three per cent at 76,637 units as against 74,419 units in the year-ago period. Total vehicle export during the quarter was up 41% at 215,233 units as against 152,261 units in the corresponding period previous year. Shares of Bajaj Auto were trading at Rs453.80, up 3.54% in late afternoon trade on the BSE. Source: LatestNews-Home - Livemint.com | 16 Jan 2009 | 11:28 am Banks, oils lead Europe share up in early tradeLondon: European shares rose from the outset on Friday, led by banks and oils, and snapping a seven-session losing run, following a late rally in the United States on Thursday. At 1002 GMT, the FTSEurofirst 300 index of top European shares was up 2.7% at 817.37 points. “The rescue package for Bank of America will give a fillip,” said Bernard McAlinden, strategist at NCB Stockbrokers in Dublin. “And some PMIs in the US look as if they might have bottomed, and that would be significant. Markets rally when PMIs hit their lows.” Bank of America Corp will receive $20 billion in fresh government investments and a federal backstop against $118 billion of bad assets it holds to help it absorb Merrill Lynch & Co, U.S. officials said on Friday. The pan-European index lost more than 44% in 2008, hammered by a credit crisis that has tipped several major economies into recession. Banks have fared worse, with some collapsing and others requiring government bail-outs or takeovers. Most banks rose on Friday, bouncing from recent weakness. Banco Santander, Barclays, Deutsche Bank and UBS rose between 2.5% and 5.2%. But Irish banks fell further, after Anglo Irish Bank was nationalised late on Thursday. Bank of Ireland fell 14.4%; Allied Irish Banks fell 11.3%. “There’s been another wave of the banking crisis,” said McAlinden. “There was bad lending. The problem was compounded by the sheer weakness of the economy. So now decent lending has turned bad. It’s gone full circle.” Both Bank of America and Citigroup will report their earnings later in the day. Dutch supermarket group Ahold was up 6.8% after reporting fourth-quarter sales of 6.6 billion euros ($8.76 billion), at the top end of forecasts as its US business continued to grow. Carrefour, the world’s second-biggest retailer, rose 1.4% despite reporting a sharp slowdown in sales after the market closed on Thursday, as shoppers across Europe and Asia cut back spending on non-essential items Delhaize rose 7.1% after its results. In a broad-based rally, all 38 sectors of the pan-European index were higher. Across Europe, Britain’s FTSE 100, Germany’s DAX and France’s CAC-40 were up between 1.9% and 2.8%. Crude oil prices gained. Oil companies added most points to the index, with Total, ENI, BP, Royal Dutch Shell, and Statoil up between 2.1% and 3.6%. Miners rose on higher metals prices. Anglo American, Antofagasta, BHP Billiton, Eurasian Natural Resources Corp., Rio Tinto and Xstrata were up between 3.3 percent and 8.3 percent. US stocks finished higher on Thursday amid market optimism the government will act to prevent the year-long recession from deepening. The Dow Jones industrial average added 0.2%; the Standard & Poor’s 500 Index rose 0.1%; the Nasdaq Composite Index was up 1.5%. Futures for the Dow Jones, the S&P 500 and the Nasdaq were up between 1% and 1.3%. Source: Home - Livemint.com | 16 Jan 2009 | 11:27 am India to drag EU to WTO over the issue of patentsBy PTI New Delhi: The tussle between Indian generic drug industry and western innovative pharmaceutical firms is set to get stronger as India is considering dragging the European Union to WTO on the issue. India’s $12-billion pharmaceutical industry, gets 40% of its revenue from exports of generic drugs across the world, of which a large part goes to the EU and the US markets. However, it constantly comes under fire from large pharma companies in these region in the name of patent infringement. “It is a very concerted move by MNCs to disrupt the growth of Indian generic industry,”commerce secretary Gopal Pillai said. Underscoring the need for unity of the developing nations on the issue he said, “we may have to take the issue to the WTO and challenge it...we would be seeking consultation with the EU.” Under the WTO rules, before a country takes another member to the Dispute Settlement Panel it gets into the process of “consultations”. If the consultations do not yield into a resolution of the issues, the WTO Dispute Settlement Panel starts the proceedings. Source: LatestNews-Home - Livemint.com | 16 Jan 2009 | 11:25 am HDFC cuts rates for new home loansPTI New Delhi: The country’s top housing finance provider HDFC today announced a lower interest rate of 9.75% for new loans up to Rs30 lakh -- bringing the rates to lowest level in about three years. Under the limited period offer applicable to new floating rate customers, the lender would charge 9.75% for loans up to Rs30 lakh and 10.75% for bigger loans. Prior to the special period offer announced today, HDFC was charging 10.25% for loans up to Rs20 lakh and 11.25% for bigger loans. “The new rates are applicable for a limited period and follows a reduction in our deposit rates by 0.50-0.75% effective yesterday,” HDFC Joint MD Renu Sud Karnad told PTI over phone. “As the cost of borrowing has come down for HDFC, we decided to pass on the benefit to our borrowers also,” she said, while adding that the lower rates should encourage more home buyers to come to the market and then the property developers to lower their prices. “We have already seen builders in select areas slashing their prices by 10-20%, which coupled with lower interest rates should encourage more middle-income buyers to come to the market,” Karnad added. Asked if further correction in property prices could be anticipate, Karnad said, “I hope so...developers who have not already cut their prices should follow the suit... those who have already cut their prices could also announce further reductions.” Source: LatestNews-Home - Livemint.com | 16 Jan 2009 | 11:19 am Satyam employees eagerly await a new CEOKPMG said it didn't need to be registered to do the work it had been assigned. At another level the top management of the company was in partial disarray.Source: Daily News & Analysis: Money News | 16 Jan 2009 | 11:17 am Will Babu be the next Satyam CEO?The hunt for a CEO to run the fraud-hit company is proving to be a herculean task.Source: Daily News & Analysis: Money News | 16 Jan 2009 | 11:16 am Govt to consider sales tax cut on ATF: CMBy PTI New Delhi: The Delhi government would consider reducing sales tax on jet fuel as was being sought by the cash-strapped airline industry, chief minister Sheila Dikshit said today. Her comments came at a seminar on aviation when Kingfisher Airlines chief Vijay Mallya urged her to consider reducing the tax on aviation turbine fuel to 4% -- a demand backed by civil aviation secretary M Madhavan Nambiar, who was also present. “I am not promising you anything. But let me see how we can help you. I have been informed that the (tax has been reduced in Mumbai, Hyderabad and some other places). I will try to do that but let me see how we can do it,” Dikshit said in an impromptu response. Some such steps were required to be taken as Delhi had become a hub for international passengers and enjoyed a high load of domestic air traffic, the chief minister said. The current sales tax on ATF is 20% in Delhi, which accounts for almost 25% of the total passenger traffic in India. The airlines do almost 20% of the total fuel tankering from the national capital and industry sources believe this could rise to 25% or more if the tax rates are slashed. The Delhi government had last year asked airlines to give a detailed note on how much fuel intake would rise if the taxes were reduced. The prime concern of the state government is to see that its revenue generation potential is not affected by the tax cut. Source: LatestNews-Home - Livemint.com | 16 Jan 2009 | 11:15 am MMTC pulls out of SEZ plan with troubled MaytasNew Delhi: Government-run trading firm MMTC on Friday decided to withdraw from equity participation in a firm to be promoted by B Ramalinga Raju-linked Maytas Group for setting up a multi-services Special Economic Zone. The decision to withdraw from participating in the special purpose vehicle (SPV), being promoted by the Matyas Group, was taken by the MMTC board here. “In view of the recent developments related to Satyam Computer Services... the board of directors of MMTC at its meeting today reconsidered the investment proposal and decided to withdraw MMTC’s participation in the equity of the propososed Special Purpose Vehilce being created by Maytas Group for setting up a multi-services SEZ,” MMTC said. MMTC was in the process of receiving shareholders’ approval for investing Rs85.85 crore and picking up up to a 5% stake in the Maytas Group’s SPV for the SEZ. The $5 billion trading major, under the administrative control of the Commerce Ministry, has also withdrawn the postal ballot it had sent on 19 December for seeking shareholders’ approval for the proposal to join hands with the infrastructure group promoted by Ramalinga Raju’s family. Source: Home - Livemint.com | 16 Jan 2009 | 11:01 am U.S. nuclear firms try to break liability logjam with IndiaNEW DELHI (Reuters) - Top U.S. firms have lobbied hard in India this week for a share in the country's lucrative nuclear market, but there was little progress on key policy issues such as accident liability protection for suppliers.Source: Reuters: Money News | 16 Jan 2009 | 11:00 am Court defers hearing on Raju’s bail pleaBy PTI Hyderabad: A local court today said it would hear the bail application of Satyam’s Ramalinga Raju and two others on 19 January while reserving the order on sending them to police custody for tomorrow. The 6th additional chief metropolitan magistrate also reserved the order on a petition by SEBI seeking its nod to question Raju, his brother Rama Raju and Satyam’s former CFO Vadlamani Srinivas on 19 January. The Rajus were arrested on 9 January and while Srinivas was arrested a day later and they have been remanded to judicial custody till 23 January. While the state CB-CID police has sought custody of the three, regulator SEBI too has sought permission to quiz them regarding the Rs7,800 crore financial fraud disclosed by Ramalinga Raju on 7 January. A separate probe by the Serious Fraud Investigation Office is also on into the fraud made public by Raju, who said he had been cooking Satyam’s accounts for years. Source: Home - Livemint.com | 16 Jan 2009 | 10:59 am US gives USD 138 bn lifeline for Bank of AmericaThis move will help Bank of America absorb a major chunk of losses incurred after the acquisition of collapsed Merrill Lynch.Source: Daily News & Analysis: Money News | 16 Jan 2009 | 10:59 am Mumbai thrash UP to win 38th Ranji Trophy titleHyderabad: Dhawal Kulkarni claimed five wickets as Mumbai asserted their supremacy by thrashing Uttar Pradesh by a huge 243-run margin and clinching the Ranji Trophy cricket title for a record 38th time on Friday. Needing an improbable 525 to win the match on the last day, Uttar Pradesh folded up for 281 in 71.5 overs although the last wicket pair of Amir Khan (43) and Praveen Gupta (25) only delayed the inevitable by stitching a 55-run partnership. The young Kulkarni was the pick of the Mumbai bowlers with five for 76 while spinner Ramesh Powar chipped in with three wickets at the Rajiv Gandhi International Stadium at the Uppal. Kulkarni removed Gupta to take the last wicket as the tired-looking UP batsman lazily drove an outside off-stump delivery to first slip where substitute S. Kukreja grabbed it, triggering scenes of celebrations in the Mumbai dressing room. Mumbai had scored 402 and extended their 177-run first innings score with a big second-innings score of 367. Mumbai dominated the first session by reducing UP to 55-4, but skipper Mohamad Kaif (72) and Bhuvneshwar Kumar (80) added 65 runs to lend some stability to the UP innings at the rate of 3.84 runs. With another 402 required to win in two sessions, Khan and Gupta frustrated Mumbai bowlers as they went on run-spree for 10.2 overs, scoring in almost all the areas of the park. Source: LatestNews-Home - Livemint.com | 16 Jan 2009 | 10:56 am Mallya pitches for infrastructure status to aviationMallya pitched for infrastructure status to the aviation industry, saying it would go a long way in enhancing its credit rating and banking arrangements.Source: Daily News & Analysis: Money News | 16 Jan 2009 | 10:54 am Priority to protect Satyam employees, investors: DasThe newly-appointed director of the Computer Services board said the priority of the six-member team would be to protect the interest of employees, customers and investors.Source: Daily News & Analysis: Money News | 16 Jan 2009 | 10:52 am Close: Sensex ends 3% up, boosted by BoA’s $20 bn bailoutNew Delhi: The Bombay Stock Exchange benchmark Sensex on Friday rebounded from Thursday’s dismal session to end 3.06% up as buying by foreign funds accelerated near closing, boosted by firm European markets and US government’s decision to grant $20 billion bailout to Bank of America. Sensex opened trade higher by 1%, influenced by overnight gains in Wall Street and positive Asian markets. The 30-share BSE index ended 276.85 points up at 9,323.59 and 50-share NSE Nifty ended higher by 91.75 points at 2828.45. Oil and gas sector witnessed significant buying, pushing the index up by 5.09%. Almost all indices traded in green zone with power, metal, PSU, Banking and Tech leading. Satyam Computers stocks remained most active on NSE after reports that three more directors were appointed on firm’s board came in. Shares of Tata Consultancy Services remained under pressure after company announced their lower-than-expected earnings in third the quarter on Thursday. TCS lost by 1.39% to trade at Rs502.95. Reliance industries raked in the maximum for the day with Reliance Infrastructure surging by 7.34% to Rs541.20 Reliance Industries by 6.56% to Rs1,218.40 and Reliance Communications by 4.79% to Rs182.60. Leading the BSE gainers was NTPC Ltd that rose by 7.69% to Rs 179.85, there were others like Tata Power by 4.89% to Rs773.35, Bharti Airtel by 4.77% to Rs632.85 and ONGC by 3.72% to Rs648.15%. Asian Markets also bounced back after Thursday’s economic uncertainties. indices surged after $20 billion bailout to BoA was announced. Japan’s Nikkei ended 2.5% up and Hong Kong’s Hang Seng ended high by 0.09%. Source: Home - Livemint.com | 16 Jan 2009 | 10:51 am Gold futures surge on crude, weak dollarMumbai: Gold futures traded higher buoyed by a recovery in crude oil and a weaker dollar, but gains may be capped later in the session due to a firm rupee, analysts said. “Technically, the trend is weak, though a bounce to Rs13,030 cannot be ruled out,” said Dharmesh Bhatia, a technical analyst at Kotak Commodity Services in Mumbai. The benchmark gold February contract traded Rs93 higher at Rs12,880 at 11:37am, after falling 4.8% in the previous six sessions. A stronger crude enhances gold’s appeal as a hedge against inflation and a weaker dollar increases the yellow metal’s appeal as an alternative to the greenback. “Gold’s rally may be shortlived and we expect selling pressure at higher levels,” said KN Rahaman, deputy research head, Way 2 Wealth Securities, adding a bounce-back is possible to Rs13,000 in a couple of days. Gold has strong support at Rs12,700, Rahman added. Selling is recommended at Rs12,855-Rs12,900 with a stop loss of above 13,000 and with a target of Rs12,710, Bhatia added. Open interest for Feb gold on MCX was at 13,734 lots, down from 13,856 a day earlier. Volume on Thursday was 58.6 kgs. Source: LatestNews-Home - Livemint.com | 16 Jan 2009 | 10:49 am Hindustan Construction Oct-Dec net falls 7.4%, shares slumpMumbai: Hindustan Construction Co Ltd on Friday said its quarterly net profit fell 7.4% on year as foreign exchange losses and higher interest costs ate into profits, pushing the shares down 9%. For the quarter ended December, the company’s net profit dipped to Rs232 million from Rs250.4 million last year, while revenue rose 16.3% to Rs8.76 billion. “While growth prospects are under pressure, our order book has expanded with (a) healthy mix of new business from power, water & irrigation and transportation streams,” said chairman and managing director Ajit Gulabchand in a statement. The company’s current order book is at Rs121.77 billion and is expecting to be awarded contracts worth Rs50.39 billion, where it is the lowest bidder, the company added. During the quarter, the company said it had forex losses of Rs68 million, and interest costs rose 40% to Rs573 million. “As the government is expected to spend more on infrastructure as a contracyclical measure to battle the recessionary trends in economy, we expect our growth plans to remain on course,” the chairman said in his statement. Its Lavasa unit, which is a hill station being developed by the company, has secured investments of Rs4.5 billion from Axis Bank, Bank of India and Allahabad Bank for a 4.5% stake, the company added. The company’s shares fell as much as 9% to Rs44.25 after the earnings release. Source: LatestNews-Home - Livemint.com | 16 Jan 2009 | 10:46 am MMTC pulls out of SEZ plan with troubled MaytasMMTC decided to withdraw from equity participation in a firm to be promoted by B Ramalinga Raju-linked Maytas Group for setting up a multi-services Special Economic Zone.Source: Daily News & Analysis: Money News | 16 Jan 2009 | 10:46 am Can Satyam continue to exist without a promoter?Satyam now has Rs 1700 crore in receivables and a new six member board that will undoubted work hard to restore stability to the company. But with no identifiable promoter in sight, then who runs the Satyam ship and should the company continue to exist in this form or take on another form?Source: Moneycontrol Top Headlines | 16 Jan 2009 | 10:35 am India still seeking extraditions from PakistanNew Delhi: India wants the Mumbai attack planners to be extradited to India, foreign minister Pranab Mukherjee said on Friday, despite reports that New Delhi had no problems with their being tried in Pakistan. “We have never given up the demand that the perpetrators of the terror act should be handed over to India,” Mukherjee said. “There is no question of that (giving up the extradition demand) or climb down.” The minister was reported to have said this week in an interview with the India Today media group that those accused in the Mumbai attacks could be tried and punished in Pakistan, a comment Indian newspapers interpreted as a climbdown in New Delhi’s demand for extradition of terrorists. Mukherjee’s India Today interview came after Britain’s foreign secretary David Miliband said the Pakistani state was not linked to the Mumbai attacks and he showed no support for India’s demand for extradition of the accused. “There is no question of that we have given up this demand,” Mukherjee said in a televised statement on Friday. Tensions have flared between the nuclear-armed neighbours since the attacks, which India blamed on Pakistani terrorists backed by some official agencies there. Besides demanding extradition of the accused, India also wants Pakistan to destroy what it says are terrorist camps. India has handed Pakistan data from satellite phones used by the attackers and what it describes as the confession of a surviving gunman, part of a dossier of evidence. Pakistan has said the dossier did not amount to evidence and that the “information” needed to be carefully examined. Source: Home - Livemint.com | 16 Jan 2009 | 10:25 am Nortel’s pension deficit helped push it over edgeToronto: A huge shortfall in funding pensions at Nortel Networks Corp helped push it into bankruptcy protection and could continue to complicate the Canadian telecom-equipment maker’s restructuring efforts. The shortfall, estimated at between $2.5 billion and $2.8 billion by analysts, means Nortel has to shell out hundreds of millions of dollars each year to fund it - even as it faces a grim global economy, weak sales, a big debt load and stiff competition. Pension laws typically require that a shortfall in a pension plan be funded over five years, said James Pierlot, a lawyer at Towers Perrin in Toronto who specializes in pensions. Simplified, this means that if Nortel’s shortfall was $2.5 billion, it would face funding requirements of $500 million a year. “I think it’s obvious that pension funding obligations can play a role in whether or not a company is able to meet its obligations to its various creditors,” Pierlot said. While the Toronto-based company, North America’s biggest maker of telephone gear, has had some success reducing its pension shortfall over the past several years, Nortel’s chief executive said it has again ballooned recently. In 2005 and 2006, the deficit was between $2.5 billion and $2.7 billion. It then dropped by about $700 million in 2007. Now, however, with global equity markets in a severe downturn, things are much worse. “It has increased dramatically since then,” chief executive Mike Zafirovski told Reuters just hours after Nortel announced it would seek court shelter from creditors on Wednesday. The company, which currently has $2.4 billion in cash, will not say exactly how big its pension deficit is at present. Nortel offers defined benefit pension plans in many countries. In January 2008, a large number of Canadian employees in one such plan switched to a defined contribution pension. Defined benefit plans promise a fixed, specific benefit to pensioners. Defined contribution plans entitle pensioners to the value of the contributions made, plus any investment income -- or minus any losses -- on those contributions. “For people who are in the defined benefit arrangement, they’re exposed to the risk of not getting all the money that they were promised,” Pierlot said. Some sort of legal fight is likely as Nortel’s pension plans are restructured, which could further complicate the court process the company faces. Even if Nortel faced payments of $500 million a year for the next five years to fund its pension shortfall, this alone would not have been enough to render the company insolvent. A Nortel spokesman said the company filed for protection for a variety of reasons: “the company’s costs, balance sheet, capital structure and high debt levels, were compounded by the current severe economic downturn.” Analysts cited slumping demand and spending cutbacks by Nortel’s telecom company customers for the bankruptcy filing, and with the stock market downturn, the growing pension liability was another setback. “In terms of short-term cash, it wouldn’t have been a factor” in a decision to file for protection, said Duncan Stewart, an analyst at DSAM Consulting. However, when Nortel’s directors examined all of the company’s long-term liabilities, “the pension would have played a role”. Source: LatestNews-Home - Livemint.com | 16 Jan 2009 | 10:23 am Unprecedented rise in sea piracy in 2008: reportKuala Lumpur: Piracy on the high seas rose to unprecedented levels in 2008, due to the hijacking crisis off Somalia where pirates are now better armed and more violent, a maritime watchdog said Friday. “The 2008 statistics surpass all figures recorded by the piracy reporting centre since it began its worldwide reporting function in 1991,” said International Maritime Bureau (IMB) director Pottengal Mukundan. “This is due primarily to the situation in Somalia and the Gulf of Aden with a total of 42 vessels hijacked and 815 crew taken hostage,” he said in an annual report. Thirteen of those vessels are still being held along with 242 crew. Across the globe, 49 vessels were hijacked in 2008, 889 crew were taken hostage, 11 were killed and 21 are missing and presumed dead, while another 46 vessels were fired on. The IMB said that the past year had seen more audacious attacks, including the seizure of a giant supertanker, and raids carried out further from shore than ever before. It said that pirates are “better armed and prepared to assault and injure the crew” and that the number of incidents in which guns have been used had jumped to 139, from 72 in 2007. The maritime watchdog, which responds to pirate attacks from its reporting centre in Kuala Lumpur, praised the role of the international coalition of navies that has been patrolling the area in a bid to protect shipping. “We... hope that more governments will continue to devote more assets to the region and provide adequate Rules of Engagement to naval commanders to allow them to actively deploy in seizing pirate vessels, arms and related equipment.” In its annual report, the IMB said attacks off the east coast of Somalia and in the Gulf of Aden had risen by nearly 200% to 111 in 2008, while worldwide the tally rose just about 11% to 293. Nigeria ranked second as a piracy hot spot, with 40 reported attacks, five hijackings and 29 crew members kidnapped last year. However, the IMB said that Indonesia had improved its record with attacks declining from 121 in 2003 to just 28 last year. And the Malacca Straits, which just three years ago was deemed the most dangerous waterway in the world by Lloyds of London, reported a drop from seven incidents in 2007 to just two in 2008. Source: LatestNews-Home - Livemint.com | 16 Jan 2009 | 10:20 am Government offers to take over D6 marketing operationThe union government on Friday, expressed its willingness to take over the marketing operations of Reliance India Limited's D6 block in Krishna-Godavari basin.Source: Daily News & Analysis: Money News | 16 Jan 2009 | 10:14 am RBI unlikely to cut rates at meet: govt officialNEW DELHI (Reuters) - The Reserve Bank of India is unlikely to again cut key interest rates at its policy review later this month, a senior finance ministry official said on Friday, sending bond yields higher.Source: Reuters: Money News | 16 Jan 2009 | 10:12 am Bhel-built solar panel part of Isro’s first satellite exportNew Delhi: State-run Bharat Heavy Electricals Ltd has a reason to cheer as the Indian Space Research Organisation successfully launched its first satellite-export project for EADS-Astrium of Europe, equipped with solar panels build by the public-sector power-equipment manufacturer. “Bhel has manufactured and supplied Space Grade Solar Panels to ISRO for their first satellite-export project for EADS-Astrium of Europe,” a Bhel statement today said. The satellite, equipped with the Bhel-built Solar Panels, was successfully launched by the European Ariane-5 launch vehicle from French Guyana. Meanwhile, the company is close on the heels of finalising the joint venture partner for manufacturing nuclear forgings. Bhel’s current orderbook stands at Rs45,000 crore. The power-equipment maker would investing Rs10,000 crore in the current five-year plan on organic expansion, of which Rs2,000 crore has already been spent. The company has also received its board’s approval for investing Rs 4,800 crore in expansion in the financial year 2009-10. Bhel, has recently, bagged a Rs2,100-crore order from NTPC for setting up two 500-MW units of steam generator and steam turbine generator packages at the latter’s Mauda Super Thermal Power Project in Nagpur. Source: Tech News - Livemint.com | 16 Jan 2009 | 10:10 am Music mart set to sing the blues as CD sales continue freefallCannes: This year’s influential MIDEM music trade show is likely to be short on high notes as the music industry struggles on in a crisis-hit world to find new revenue to compensate plummeting CD sales. But the outlook for music fans worldwide remains upbeat as more music and music videos become available on a growing number of Internet sites including MySpace Music, mobile phones and other new digital platforms. “There will be fewer people this year,” MIDEM director Dominique Leguern told AFP ahead of the Sunday opening of the world’s biggest such show. “Our industry has been in crisis for over five years and, on top of that, there is the global economic crisis.” Over 85 countries are expected in this Riviera seaside resort for the event, with huge interest also in the MidemNet show, held on the eve of MIDEM against the backdrop of several potentially ground-breaking announcements. Apple announced early this month that it will make every song in its massive iTunes library available without DRM anti-piracy software by April. This means even music lovers who don’t own an iPod will be able to buy and download songs from the iTunes site on to any MP3 music player. And Apple’s parallel decision to drop its sales practice of selling all iTunes songs for 99 US cents in favour of a triple pricing system is also likely to be followed by other online music sites. But what impact Apple’s shift will have on the troubled music industry, as well as the Internet, mobile phone and video game worlds, remains far from clear. The recording industry for its part has started to reinvent itself and its business models, John Kennedy, chairman and chief executive of the International Federation of the Phonographic Industry (IFPI), said Friday. “There is a momentous debate going on about the environment on which our business... depends. Governments are beginning to accept that... doing nothing is not an option if there is to be a future for commercial digital content.” And the situation online is rosier than in previous years. Digital outlets -- as opposed to CDs and other traditional forms of music -- now account for some 20% of recorded music sales, up from 15% in 2007, according to the IFPI report. Music company sales internationally from digitally downloaded music rose 25% in 2008 to $3.7 billion, the report noted. But the latest IFPI statistics also highlight that piracy continues to stalk the music industry. “The music sector is still overshadowed by the huge amount of unlicensed music distributed online,” IFPI said, citing studies in 16 countries that showed that only one in 20 downloads are via legal channels. Russia, where digital music sales have fantastic growth potential and physical sales continue to defy industry norms, according to MIDEM’s Leguern, will be the fair’s 2009 country of honour. Russian superstar Valeriya will perform at the Opening Night Party Sunday along with a plethora of other top names from the country’s music scene. Taiwan and Korea are bringing some of their hottest musical talent. Glitz and glamour will be provided by some of the world’s top music stars, including Coldplay, Seal, Duffy, Katy Perry and Akon, in town for French radio station NRJ’s annual music awards. Source: World Business - Livemint.com | 16 Jan 2009 | 9:51 am Satyam board meets Saturday, new funding plans keyHYDERABAD, India (Reuters) - The new board of fraud-hit Satyam Computer Services will meet again on Saturday to look for ways to raise new funds after both the government and the company rejected talk of a state rescue bid.Source: Reuters: Money News | 16 Jan 2009 | 6:07 am Wii console sales break US record in 2008San Francisco: Nintendo sold 10.17 million Wii consoles in the United States in 2008, setting a new video game record despite dismal economic conditions gripping the country, according to NPD Group statistics. Nintendo’s DS handheld game devices sold nearly as well, with US consumers snatching up 9.95 million of them in 2008, the NPD figures released on Thursday indicate. “There is no longer a question that if you offer consumers an expanded definition of what a video game can be, and deliver that idea with quality and affordability in mind, millions of new people will start playing video games,” said Nintendo of America executive vice president of sales and marketing Cammie Dunaway. “Concepts like ‘Wii Fit’, ‘Guitar Hero´, and ‘Rock Band´ never would have seemed feasible just a few years ago, and now they’re driving growth for our the entire industry.” NPD reported that 55% of new-generation video game consoles sold in the United States last year were Wii devices, known for motion-sensing controllers and family-style play. The four top-selling video games last year are Wii titles, and Nintendo’s retail success is credited with helping video game industry revenues in 2008 rise 19% from the previous year. Source: Tech News - Livemint.com | 16 Jan 2009 | 5:48 am Microsoft’s shadow looms over Yahoo’s new CEOBy AP / Reuters New York: Brandishing a disdain for things that aren’t working, Carol Bartz clearly intends to shake up Yahoo Inc. as the new chief executive of the long-slumping Internet company. Bartz’s appointment, confirmed on Tuesday, is seen paving the way for the Internet company to make decisions on big issues, including a sale or search deal with Microsoft Corp. The guessing game now revolves around whether Bartz will do something revolutionary, such as trimming the payroll even further, or something more revolutionary, such as turning over Yahoo’s search operations to rival Microsoft Corp. Most analysts are betting that Bartz’s appointment, following a two-month search to replace Yahoo co-founder Jerry Yang, will be the catalyst that brings Microsoft CEO Steve Ballmer back to the bargaining table since Yahoo rejected his last bid for its search engine in July. “I won’t be surprised if a search deal gets done within the next few weeks,” Collins Stewart analyst Sandeep Aggarwal said Wednesday. He believes Bartz could lift Yahoo’s downtrodden stock price by as much as $10 by locking up billions of dollars in guaranteed ad revenue in exchange for turning over its search operations to Microsoft. Shedding search also would enable Bartz to decrease Yahoo’s annual expenses by about $700 million, Aggarwal estimates. In an interview last week with The Associated Press, Ballmer reiterated his interest in Yahoo’s search operations as he tries to undercut Internet advertising leader Google Inc. But Ballmer didn’t seem interested in renewing the talks until Yang was out of the way. He and Yang clashed last year when Microsoft was still trying to swallow Yahoo whole in a $47.5 billion acquisition. Ballmer angrily withdrew that $33 a share offer last May after Yang demanded more, much to the dismay of Yahoo’s shareholders. Investors seemed to be feeling a little better about Yahoo now that the tough-minded Bartz will be calling the shots. Yahoo shares gained 31 cents, or 2.6 percent, to close at $12.41 on a bad day in the overall stock market. Bartz, 60, declined to outline her plans for Yahoo during a Tuesday conference call held shortly after the Sunnyvale, Calif.-based company named her as its CEO. She promised to fill a void at Yahoo by being a decisive leader. “This is not about some little vision I have,” Bartz said Tuesday. “This is a big vision for a big, great company.” She was unavailable for interviews Wednesday as she met with Yahoo’s employees and customers. Other bold moves that Bartz could make include buying AOL from Time Warner Inc. or spinning off Yahoo’s Asian assets. A combination with AOL has been bandied about for months with no resolution, largely because the two sides have had trouble settling on a price that makes sense for both sides. And the depressed financial markets probably make this an inopportune time for Yahoo to dispose of its Asian holdings. Those factors mean Bartz’s first pivotal choice will be determining whether to deal with Redmond, Washington-based Microsoft. Also Read Yahoo: is Bartz the right choice? Not everyone believes Yahoo will be better off if it hands over its search engine to the software maker because advertising sold alongside search results remain the most lucrative business on the Internet. Yahoo’s search engine remains the second most popular on the Web after Google. Bartz could still mine Yahoo’s search technology to steer a turnaround, said IDC analyst Karsten Weide said. ”If you are going to build a successful media company, you have to see what makes money today and what is still going to be making money five years from now,” he said. “You can’t just hand (search) over to someone else and hope for the best. It would make them too dependent on Microsoft.” While Yang was still CEO, Yahoo worked out a search advertising partnership with Google, but that arrangement fell apart in November under the threat of an antitrust lawsuit from the U.S. Justice Department. A seasoned technologist, Bartz comes to Yahoo with a history of weeding out ineptitude and sharpening the focus on the most prosperous parts of the business. She left her most enduring mark at Autodesk Inc., a San Rafael, California-based software maker whose stock price soared tenfold during her reign as CEO from 1992 to 2006. Although she has been successful wherever she has worked, Bartz’s lack of experience in the Internet and advertising industries has raised some doubts about whether she is the right person to run Yahoo. “She is going to have to prove she can quickly adapt to an environment that is completely different from her experience any place else,” said Neil Sims, managing director for the technology group of Boyden, an executive search firm. Bartz labeled those concerns as “nonsense” and most analysts seem to think her business savvy will more than make up for her media naivete. Yahoo still could bring in another top executive with a strong advertising background because its current president, Susan Decker, plans to leave after being passed over for the top job. Perhaps most important to investors, Bartz won’t be carrying any emotional baggage as she draws up her blueprints for Yahoo. That’s a huge advantage over Yang, whose affinity for the Web site he started as a graduate student in 1994 was viewed as a stumbling block to last year’s talks with Microsoft. Since Yang launched Yahoo as a simple Internet directory, the company has grown into a mishmash of products that has confused investors, employees, advertisers and consumers. If nothing else, Sims thinks Bartz’s fresh perspective should help Yahoo figure out what it does best and then marshal its resources there. “Any company that can’t define itself to the public in seven to nine word has a problem,” Sims said. “Yahoo has had that problem for some time now.” Bartz to draw $1 million in base salary Yahoo Inc will pay its new chief executive, Carol Bartz, an annual base salary of $1 million, plus a yearly bonus of around $2 million to as much as $4 million, according to a filing on Thursday. The annual bonus will be determined by the board’s compensation committee based on the company and Bartz’s performance. She will also receive stock options for 5,000,000 Yahoo shares, it said. Under previous CEO and co-founder Jerry Yang, Yahoo rejected a $47.5 billion buyout offer from Microsoft nearly a year ago. Yahoo’s shares fell 80 cents, or 6.45% , to close at $11.61 on Thursday. Source: Tech News - Livemint.com | 16 Jan 2009 | 5:28 am Nissan to shift supermini production to Thailand: reportBy AFP Tokyo: Nissan Motor Co., hit hard by falling auto sales, plans to transfer production of its key subcompact car from Japan to lower-costing Thailand, a report said today. Japan’s third-largest automaker is redesigning its popular March supermini car jointly with its French partner Renault SA, hoping to appeal to customers looking for fuel-efficient cars. The Nikkei business daily said Nissan has decided to shift all Japanese production of the car to Thailand in 2010 and then export it back to Japan. It expects to cut production costs by 30% by procuring local parts and will also benefit from Thailand’s tax breaks for eco-friendly cars, the Nikkei reported without identifying its sources. The report follows Nissan’s decision to shift production of the Micra, the March’s overseas version, from Britain to India when the new edition comes out in 2010. A Nissan spokeswoman declined to confirm the shift from Japan to Thailand. “The shift in production of Micra from Britain and India has already been announced, but regarding the rest of the report, we have not made any announcement,” said spokeswoman Ikue Matsuura. Nissan said Thursday it was slashing production in the current financial year by 21 %. The Yomiuri Shimbun reported Thursday that Nissan is set to log its first operating loss this year since Renault sent Carlos Ghosn to rescue the Japanese company from the brink of bankruptcy in 1999. 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 Motor Corp. predicted its first ever annual operating loss. Source: World Business - Livemint.com | 16 Jan 2009 | 4:04 am Inflation rate drops on cheaper foodNew Delhi, Jan 15 Inflation continued its declining trend for the tenth straight week, with the annual Wholesale Price Index-based inflation rising to 5.24 per cent for the week-ended January 3, down from the previous week’s annual rise ofSource: Business Line - Home Page | 16 Jan 2009 | 12:00 am Now, a course to make auditors financial detectives!Mumbai, Jan. 15 The Institute of Chartered Accountants of India (ICAI) wants its members to learn a lesson or two on frauds and forgery; its three-month pilot Certificate Course in Fraud and Forensic Accounting begins on January 17 here.Source: Business Line - Home Page | 16 Jan 2009 | 12:00 am Sensex tanks 300 on Nortel, weak domestic supportMumbai, Jan. 15 A string of bad news on the global front, and lack of buying support domestically sent the Indian indices into a tailspin onSource: Business Line - Home Page | 16 Jan 2009 | 12:00 am Restoring faith in accounting professionThe article titled “Corporate scandals: ensuring fast deterrent action” by Mr B. S. Raghavan (Business Line, January 9) makes interesting reading, and his forethought in cautioning, through a series of articles, againstSource: Business Line - Home Page | 16 Jan 2009 | 12:00 am Satyam gets 3 more board membersNew Delhi, Jan. 15 The embattled Satyam Computer Services board today got three more members — Mr Tarun Das, Mr T.N. Manoharan and Mr Suryakant Balkrishna Mainak — taking the total strength to six. This was announced by the MinisterSource: Business Line - Home Page | 16 Jan 2009 | 12:00 am KPMG can’t audit for Satyam, it’s not registered: ICAIHyderabad, Jan. 15 If Price Waterhouse, auditors for the crisis-hit Satyam Computer Services, has drawn widespread flak for its role, another global firm, KPMG, drew instant criticism after being called, along with Deloitte, by the new SatyamSource: Business Line - Home Page | 16 Jan 2009 | 12:00 am Cabinet rejects statutory status to CACPNew Delhi, Jan. 15 The Centre has rejected the proposal to accord statutory status to the Commission for Agricultural Costs and Prices (CACP) while also extending its mandate to provide advice on tariff policy and other trade-relatedSource: Business Line - Home Page | 16 Jan 2009 | 12:00 am Balrampur Chini (Rs 50.6): BuyWe recommend a buy in Balrampur Chini Mills from a short-term perspective. The stock has been in a strong short-term uptrend from December 2, 2008 when it formed the low at Rs 29.7. It gained more than 80 per cent from this trough and is currentlySource: Business Line - Home Page | 16 Jan 2009 | 12:00 am Web portals see rise in adsMumbai, Jan. 15 At a time when sales executives with conventional media firms are grappling with fewer advertisements from corporates, their counterparts with Web portals have their handsSource: Business Line - Home Page | 16 Jan 2009 | 12:00 am Slowdown effect tells on TCSMumbai, Jan. 15 Tata Consultancy Services has reported its third consecutive quarter of muted growth as it encountered a decline in IT spending by customers in some of its key verticals of operation, and also grappled with forexSource: Business Line - Home Page | 16 Jan 2009 | 12:00 am Airlines cut business class faresFaced with a 10 to 15 per cent fall in passenger traffic, business class travel is coming down to earth. For the first time, Jet Airways and Paramount are introducing apex (advance purchase) fares and Kingfisher and state-owned Air India are offering free travel for spouses to boost bookings for this premium service.Source: Business Standard | Front Page Headlines | 15 Jan 2009 | 6:56 pm Satyam scam: Banks, internal auditor under Sebi scanCapital market regulator Securities and Exchange Board of India (Sebi), which was investigating insider trading charges against Satyams promoters and some institutional investors, has widened its inquiry to cover the role of banks and the internal auditor in Satyam, according to a Sebi official.Source: Business Standard | Front Page Headlines | 15 Jan 2009 | 6:56 pm Lazard, Swiss Finance dump Satyam sharesTwo major investors in Satyam, Lazard Asset Management LLC and Swiss Finance, sold shares today in bulk deals on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).Source: Business Standard | Front Page Headlines | 15 Jan 2009 | 6:53 pm Satyam gets 3 new board membersGovt nominates CIIs Tarun Das, LICs Balakrishnan, former ICAI chief Manoharan; Expanded board to meet Saturday; Share falls 33% as govt says no bailout.Source: Business Standard | Front Page Headlines | 15 Jan 2009 | 6:52 pm Tweaking the law to deal with cyber terrorism Cyber terrorism has been defined as an offence in section 66F—one who causes denial of access to computer resources, or has unauthorized access to a computer resource, or introduces a virus, with the intent to threaten the unity, integrity, security or sovereignty of India or to strike terror in any section of the people is deemed to be committing cyber terrorism. If a person has unauthorized access to a computer resource with the intent to breach the security of the state, its sovereignty and integrity, and friendly relations with foreign states, then also he is deemed to be committing cyber terrorism. One of the critical elements of the Mumbai attacks was use of technology Mumbai is witness to this—one of the critical elements of the November terrorist attacks was the use of technology by the attackers. They navigated their way to Mumbai by sea with Global Positioning Satellite systems, carried BlackBerrys, had CDs with high-resolution satellite images, used multiple cellphones with switchable SIM cards that were difficult to track, and used satellite phones. They also used remailer service to send emails, while maintaining anonymity. This clearly emphasizes how sophisticated terrorists have become and how complicated it is these days to develop and coordinate all of the necessary security measures to counter such threats. Law to fight terrorists is only one of the ways, albeit an important one. Arming law-enforcement agencies with appropriate legal provisions with stringent provisions for punishment has the potential of acting as deterrents. One wonders why an issue should be raised on the provision of life imprisonment for cyber terrorists who are a danger to national security. It is not appropriate to confuse cyber security by raising the issue of right to privacy since investigation into a crime has to follow the procedure set out under the law. National security is of the highest concern. The current times demand actions commensurate with the threat posed by criminals. It was certainly not the case earlier that a large number of terrorists, spread across the world, could join forces to plan operations using information and communications technology, organize logistics, including maps and weapons. The state’s response, too, has to be different, and must make use of international cooperation to counter, capture and punish criminals. Financial frauds are being committed in cyberspace by international gangs cutting across national borders with identity and data theft in one country, sale of credit cards in another country and transactions from yet another country. For example, criminal breach of the computer systems of TJX Companies Inc., a US-based retailer, saw the loss of information relating to around 100 million credit and debit cards. Criminals hacked into TJX’s data systems, kept the information in personal computer servers in the US and Eastern Europe and converted some of it into ready-to-use bank cards. Hackers sold the stolen information to people in the US and Europe on the Internet and also used the stolen cards to illegally withdraw tens of thousands of dollars at a time from automated teller machines. A US federal grand jury indicted 11 people of various nationalities. Such crimes need to be addressed in national data protection laws. They call for not only national laws, but also call for international cooperation in investigations, collection of cyber forensic evidence and prosecution. A strong data protection regime requires all types of cyber crimes be covered to ensure data security and data privacy. The amended Act does precisely that. Sections 69 and 69A of the amended Act empower the state to issue directions for interception, monitoring, decryption of any information through any computer resource; and for blocking websites in the interest of national security, and friendly relations with foreign states. These are no different from what has been there in the IT Act, 2000, so far. If anything, these sections have made the government more transparent since the procedures and safeguards subject to which interception, monitoring, decryption and blocking of websites will have to be prescribed. Section 69B empowers the government to authorize to monitor, collect traffic data or information through any computer resource for cyber security. Again, the procedure and safeguards for monitoring and collecting traffic data and information shall have to be prescribed, making it fully transparent. One may sensationalize it again by using words such as “snooping”, but it is no different from the powers vested with the state under the Indian Telegraph Act, 1885, to intercept calls that have been upheld by the Supreme Court. The amended Act is a step in the right direction. It strengthens the data protection regime, and makes cyberspace more trustworthy, bringing since cyber criminals, whether engaging in data and identity theft, financial frauds or posing a threat to national security through acts of cyber terrorism, to justice.
Kamlesh Bajaj is chief executive officer, Data Security Council of India. Respond to this column at feedback@livemint.com This is the second of a four-part series on cyber security. Read Part 1 at www.livemint.com/ cybersecurity.htm Source: Tech News - Livemint.com | 15 Jan 2009 | 4:51 pm Proposed Met channel faces rough weatherNew Delhi: The India Meteorological Department’s, or IMD’s, plan to launch a weather channel in partnership with private broadcasters is finding the going rough and is unlikely to go ahead in its present form. While deadlines for announcing the successful bidder have been extended several times, IMD scientists say none of the bidders will make the cut and the process may have to start again. As per the existing agreement detailed in the request for proposal—a document inviting bidders—the broadcaster would put in the money and manage the entity. IMD would provide content such as weather data for a fee. As of Monday, two broadcasters—Star News India Pvt. Ltd and NDTV Ltd—were in the fray for setting up the channel, said an official familiar with the development who didn’t want to be identified. But an IMD scientist familiar with the matter said on condition of anonymity: “There are significant deviations from the bid. Both bids are unclear on how the distribution will be handled and the licensing fee due to IMD.” Representatives of both bidders were unwilling to respond. But another executive at a broadcasting firm, who didn’t want his or his firm’s identity to be disclosed, said: “IMD’s expectations are unrealistic. Unless they put in money, too, it’s unlikely the deal will progress. The cost of running the channel, distribution costs, etc., would be about Rs30 crore annually. Unless IMD chips in, I don’t see how it will work.” The 24x7 weather channel, the first of its kind in India, was planned to be used for the approaching Commonwealth Games in the city. “The weather channel will provide round the clock service during the games and possibly be the chief source of weather-related information,” IMD director general Ajit Tyagi had said in an interview in October. It is also listed as one of the salient achievements of the ministry of earth sciences and ocean development, headed by Kapil Sibal. The weather channel is also part of the wide-ranging Rs900-crore modernization within IMD. Parallel to a move to procure state-of-the-art weather radars, IMD has also signed a deal with Meteo-France—its French counterpart—to buy equipment for weather advisory services. IMD officials were unwilling to comment specifically on the matter of bids. “I can’t comment on speculation,” said B.P. Yadav, spokesperson, IMD. “Right now, there are two channels and a technical committee is evaluating their bids. However, it doesn’t necessarily mean that we will choose one of them.” Tyagi said it was inappropriate to comment on an ongoing bidding process. He, however, said IMD wouldn’t put in any money now. Source: Tech News - Livemint.com | 15 Jan 2009 | 4:50 pm Chinese squatter told to give up ICICI domain nameNew Delhi: Following a complaint by ICICI Bank Ltd, the Delhi high court has directed a Chinese resident to give up www.icicigroup.com, in an order that could set a precedent for cybersquatting regulation in India.  Controversy: ICICI Bank’s website and Chuandong Xu’s Icicigroup.com. Cybersquatting is the act of registering website domain names of popular firms or brands and then selling them to the same firms or brands at exorbitant and often extortionate prices. In December, justice Sanjiv Khanna passed an order restraining a resident of Beijing, Chuandong Xu, and a Chinese website registrar, HiChina Web Solutions Ltd, from using or selling the site Icicigroup.com. The order was passed ex parte or in the absence of the defendant. The same court had heard a 2007 case, in which India TV Independent News Service Pvt. Ltd sued US-based India Broadcast Live Llc. over the www.indiatvlive.com domain name. In October, it dismissed India TV’s suit and allowed India Broadcast Live to use the name. The two cases mark a trend where Indian courts are ruling on cybersquatting cases involving people and firms from different geographies—not all of which may fall under their jurisdiction. Khanna, while passing his order, reasoned that the high court can decide on ICICI’s suit since the Trade Marks Act, 1999, says that “courts where the plaintiff (in this case ICICI) carries on business have jurisdiction to entertain a suit for infringement.” Before approaching the high court, ICICI had, in June, filed a complaint with the World Intellectual Property Organization’s Arbitration and Mediation Center (AMC) using the Uniform Domain Name Dispute Resolution Policy, which allows parties to settle disputes related to domain names outside court by mediation and arbitration by a panel of experts. The policy was set up by Internet Corporation for Assigned Names and Numbers, an international body that controls all aspects of Internet protocol addresses and domain names. An AMC panel rejected ICICI’s complaint and held that Chuandong Xu’s use of Icicigroup.com was honest and not in bad faith. The bank then approached the Delhi high court. Anuradha Salhotra, partner at law firm Lall Lahiri and Salhotra, said the panel’s order is not binding on the parties and the international dispute resolution mechanism allows parties to approach a court to resolve the dispute. According to Saikrishna Rajagopal, partner at Saikrishna and Associates, who filed the suit for ICICI, the Chinese defendants have complied with the high court order. “This interesting order sets a strong precedent for Indian intellectual property owners, particularly in domain name disputes, from enforcing their rights under Indian law against foreign violators without the need to approach legal forums overseas,” Rajgopal said. However, IT experts such as Vijay Mukhi, chairman of the IT committee of industry trade lobby group Federation of Indian Chambers of Commerce and Industry, and Amit Agarwal, a technology blogger and columnist, argue that there could be limits on the enforceability of the order of an Indian court on a foreign entity. “What would happen if the Chinese party did not obey the Delhi high court order?” asked Agarwal. “How does the court ensure that its order is enforced?” questioned Mukhi. Legal experts say Indian courts are asking themselves the same questions. Salhotra and Neil Mason, partner at Mason and Associates, point to a 2008 lawsuit, Banyan Tree Holding Ltd v. A. Murli Krishna Reddy, where justice S. Ravindra Bhat referred the question involving the Internet jurisdiction of Indian courts to a larger bench of two judges. The matter was then heard by a bench headed by chief justice of Delhi high court and judgement has been reserved.
Cyber law expert Rahul Mathan said, “Such orders could help build the basis for the complex area of Internet jurisdiction in Indian jurisprudence.” Source: Tech News - Livemint.com | 15 Jan 2009 | 4:49 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 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 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 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 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 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
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