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RSS set to enter FMCG market - with cow urine and dung productsWhat's common between a new brand of soft drinks, toothpowder, paper, distemper and furniture proposed to be launched by a Hindu organisation? All these products use cow dung and cow urine as raw material.Source: IndiaeNews.com: Business News | 14 Feb 2009 | 3:31 pm Airlines reply to regulator on fare hikeThe aviation regulator has got explanation letters from six airlines on why they withdrew promotional fares and hiked base tariff, a government official said here Saturday. He refused to divulge details of the letters.Source: IndiaeNews.com: Business News | 14 Feb 2009 | 3:31 pm G7 pledges strong crisis response and free tradeROME (Reuters) - The G7 industrial powers, fearing a rise of protectionism, will do all they can to combat recession without distorting free trade, they said in a final statement published after talks in Rome on Saturday.Source: Reuters: Money News | 14 Feb 2009 | 3:07 pm Short-Circuiting Bipartisanship Is Nothing New for Congress - New York Times
Source: Google News India - Business | 14 Feb 2009 | 2:56 pm NTPC, Nuclear Power Corp ink joint venture pact - Economic Times
Source: Google News India - Business | 14 Feb 2009 | 2:55 pm NTPC, Nuclear Power Corp ink joint venture pactThe country's leading power producer NTPC Ltd Saturday signed a memorandum of understanding (MoU) with Nuclear Power Corp of India Ltd (NPCIL) to jointly produce nuclear power plants.Source: IndiaeNews.com: Business News | 14 Feb 2009 | 2:31 pm Satyam not typical firm: Gupta - Hindustan Times
Source: Google News India - Business | 14 Feb 2009 | 2:23 pm Adspend $ moving into internet from TV, radio,says Yahoo chiefGlobal economic slowdown has led to cut in media advertisement spending for sure, but internet company Yahoo is seeing a silver-lining.Source: Daily News & Analysis: Money News | 14 Feb 2009 | 1:42 pm Satyam scam: Anti-fraud cell officials interrogate Rajus - Economic Times
Source: Google News India - Business | 14 Feb 2009 | 1:38 pm Satyam scam: Anti-fraud cell officials interrogate RajusA 12-member team of the Serious Fraud Investigation Office (SFIO) saturday quizzed Satyam Computers founder B. Ramalinga Raju, his brother B. Rama Raju and former chief financial officer Vadlamani Srinivas in Chanchalguda jail here.Source: IndiaeNews.com: Business News | 14 Feb 2009 | 1:30 pm First Global to appeal against Shankar Sharma verdictThe Securities and Exchange Board of India has barred Shankar Sharma from dealing in securities for oneyear. Commenting on the issue, Devina Mehra of First Global said they were only asking Sebi for the probe report which is not providing documents. She said they will appeal against Sebi order on Shankar Sharma.Source: Moneycontrol Top Headlines | 14 Feb 2009 | 1:10 pm Malaysian firm thrives on Valentine's Day at air showA Malaysian garment firm made hay Saturday at Aero India international air-show by selling designer T-shirts, caps, fighter aircraft models and a variety of novelties to celebrate Valentine's Day in a special way.Source: IndiaeNews.com: Business News | 14 Feb 2009 | 1:00 pm Shankar Sharma says nothing to do with mkt fall in 2001 - Business Standard
Source: Google News India - Business | 14 Feb 2009 | 12:49 pm Jammu and Kashmir gets first international airportWracked by two decades of militancy, Jammu and Kashmir got its first international airport Saturday. It was inaugurated by United Progressive Alliance (UPA) chairperson Sonia Gandhi who asked separatists to rejoin the democratic process.Source: IndiaeNews.com: Business News | 14 Feb 2009 | 12:32 pm Implement Sixth Pay Commission recommendations in Kashmir: PDPJammu and Kashmir's main opposition Peoples Democratic Party (PDP) Saturday asked the Omar Abdullah government to implement the recommendations of the Sixth Pay Commission in the state without further delay.Source: IndiaeNews.com: Business News | 14 Feb 2009 | 12:31 pm Kerala to set up life science parkState-run Kerala State Industrial Development Corp (KSIDC) will set up a state-of-the-art life science park near here, it was announced Saturday.Source: IndiaeNews.com: Business News | 14 Feb 2009 | 12:30 pm US Congress approves USD 787bn stimulus bill!The US Congress, handing President Barack Obama a major legislative victory, approved on Friday a USD 787 bn stimulus bill that aims to rush emergency government spending and tax cuts to a nation in the grip of a severe recession.Source: Zee News : Business | 14 Feb 2009 | 12:28 pm Mittal, Ambani among top billionaires !NRI czar Lakshmi Mittal and head of India`s largest co Mukesh Ambani are among world`s top billionaires.Source: Zee News : Business | 14 Feb 2009 | 12:28 pm Japan approves lending USD 100bn to IMF!Japan signed a pact on terms of its commitment to lend up to USD 100bn to the IMF to provide financial lifelines to crisis-hit emerging countries.Source: Zee News : Business | 14 Feb 2009 | 12:28 pm Ex-Satyam CEO Raju to face SFIO !SFIO will grill ex-Satyam CEO Raju on Saturday to extract more info in the financial fraud.Source: Zee News : Business | 14 Feb 2009 | 12:28 pm US auto suppliers seek USD 18.5bn in emergency govt aid!US auto suppliers submitted a formal request to US Treasury on Friday for USD 18.5bn in emergency funding.Source: Zee News : Business | 14 Feb 2009 | 12:28 pm RBI Board to meet in Bangalore !The RBI is holding its Board Meeting here from Saturday, a senior official of the bank said Friday.Source: Zee News : Business | 14 Feb 2009 | 12:28 pm HC stays Rs 121cr Maytas Infra proj, govt censuredThe Andhra Pradesh High Court has rapped the state government on its knuckles and Maytas Infra, a member of the beleaguered Satyam Group, is wincing in pain. The court has stayed the Rs 121 crore road project that was awarded to the company.Source: Moneycontrol Top Headlines | 14 Feb 2009 | 11:42 am Obama vows to act fast on economic stimulusCHICAGO (Reuters) - U.S. President Barack Obama on Saturday hailed congressional approval of a $787 billion economic stimulus bill as a "major milestone on our road to recovery" and vowed to move swiftly to set the plan in motion.Source: Reuters: Money News | 14 Feb 2009 | 11:35 am Narayana Murthy appointed IT adviser to Lankan President - Press Trust of India
Source: Google News India - Business | 14 Feb 2009 | 11:34 am Himachal Pradesh growth rate pegged at 7.7 percentThe economy of Himachal Pradesh is expected to grow at 7.7 percent this fiscal, higher than the national estimate of 7.1 percent, according to the state's economic survey report.Source: IndiaeNews.com: Business News | 14 Feb 2009 | 11:32 am Raise share of taxes that northeast gets: Tripura chief ministerThe Left Front government in Tripura has urged the 13th finance commission to provide a special debt relief package to the state and earmark 10 percent of the total share of central taxes for northeastern states, officials said here Saturday.Source: IndiaeNews.com: Business News | 14 Feb 2009 | 11:31 am LIC launches close-ended Jeevan Varsha plan - Economic Times
Source: Google News India - Business | 14 Feb 2009 | 11:28 am Nuclear power output to reach 6,000 MW by 2009-endMumbai: As India’s civil nuclear industry enters a new phase, the energy-starved nation can look forward to having 6,000 MW atomic power by the year-end from the indigenous plants. The 17 plants, currently operating below 40% of their capacity, will be able to operate at 90% load factor in the next 12 months with the availability of uranium from France and Russia, union minister of State for Commerce and Power Jairam Ramesh said. With the recent signing of contracts for uranium supply with French company Areva and Russian firm TVEL, it is expected that Nuclear Power Corporation of India Ltd (NPCIL) will be able to receive the fuel shortly and can increase the power output up to 6,000 MW before 2009-end, he said. Ramesh was speaking to reporters after the signing of a MoU here between NPCIL and NTPC for setting up a joint venture for power plants. NPCIL’s installed capacity is 4,120 MW and but output is only 1,800 MW due to fuel shortage. “With the imported uranium, it is possible to operate the 17 plants at 90% load factor,” he said. “In addition, three plants - Rajasthan Atomic Power’s units 5 and 6, Kaiga power plant unit 4 (all 220 MW each) and one unit of Koodankulam plant of 1,000 MW will begin operation in 2009, taking the total nuclear power production by this year-end to around 6,000 MW,“he said. Source: LatestNews-Home - Livemint.com | 14 Feb 2009 | 11:18 am LIC launches close-ended Jeevan Varsha planKolkata: State-run Life Insurance Corporation of India (LIC) on Saturday said it has launched a close ended guaranteed addition money back plan Jeevan Varsha and expects healthy response. “After the success of Jeevan Astha which closed recently, the corporation has launched another guaranteed product. This is a regular premium policy and money back plan,” LIC zonal manager (east) R R Dash said in Kolkata on Saturday. The plan would be made available for sale only between 16 February and 31 March. Dash said the corporation was aiming to collect Rs1,500 crore premium from this new policy. “The corporation in east collected Rs1,190 crore from sale of 2.64 lakh policies from recently closed Jeevan Astha,” he said. Jeevan varsha plan is available with two policy terms of 9 and 12 years. The policy will offer Rs65 per Rs1,000 sum assured and Rs70 for a 12 year term. “For the first time survival benefit are payable every three years,” a LIC statement said. LIC officials said though guaranteed addition in Jeevan Varsha is lower than Jeevan Astha, the internal rate of return will be similar to it taking into consideration all factors. Source: LatestNews-Home - Livemint.com | 14 Feb 2009 | 11:02 am Sebi to notify provisions of investors group protection schemeAhmedabad: Market regulator Securities and Exchange Board of India (Sebi) is expected to notify the provisions of investor group protection scheme within a month, a Sebi member said here on Saturday. “The provisions of investors group protection scheme is likely to be notified within a month, and the related guidelines will be released within next three months,” Sebi wholetime member M S Sahoo told PTI on the sidelines of BCFM (derivatives) online certification launch in Gujarati. “Sebi will support the investors if they approach as a group and go to seek court’s help,” he added. The market regulator has constituted a separate and dedicated fund for education and protection of investors, with an initial corpus of Rs15 crore at its disposal, and the funds size is expected to grow further, Sahoo said. Also, Sebi has moved a proposal to the government saying that earnings made through levy of penalty that presently is diverted to consolidated funds as per the provisions of Act, should be changed. We want it to go to investor protection fund, he added. “Unless the requisite changes are made in the Act, the funds coming through levy of penalty cannot be diverted to investor protection fund, Sahoo said. Source: LatestNews-Home - Livemint.com | 14 Feb 2009 | 10:43 am NPCIL, NTPC to set up JV for power plantsMumbai: Public sector firms Nuclear Power Corporation of India Ltd (NPCIL) and National Thermal Power Corporation (NTPC) on Saturday signed a memorandum of understanding (MoU) to incorporate a joint venture for setting up nuclear power plants. The MoU was signed by S K Jain, chairman and managing director of NPCIL and his NTPC counterpart R S Sharma in the presence of union minister of State for Commerce and Power Jairam Ramesh and Atomic Energy Commission chairman Anil Kakodkar. As per the agreement, the joint venture will have 51:49 share holding between NPCIL and NTPC. NTPC will invest around Rs1,000 crore for setting up nuclear power plants of at least 2, 000 MW capacity, according to Sharma. The proposed company will employ the indigenous technology of NPCIL which uses natural uranium and heavy water. Source: LatestNews-Home - Livemint.com | 14 Feb 2009 | 10:14 am Weekly Wrap: Bulls lift Sensex up by 334 pts - Sify
Source: Google News India - Business | 14 Feb 2009 | 10:02 am SFIO grills Raju brothers, SrinivasA 12-member Serious Fraud Investigation Office (SFIO) team began grilling Satyam Computer's former chairman B Ramalinga Raju and two others.Source: Daily News & Analysis: Money News | 14 Feb 2009 | 10:02 am Will appeal to SAT to quash Sebi order: Shankar SharmaSebi has barred First Global\'s Shankar Sharma from the markets for one year. Shankar Sharma of First Global said he has already got an advance stay against any order from Sebi from the Bombay High Court, which is nearly four years back. \"So, this order is covered by that. At that stage we will go to SAT and get the order quashed.\"Source: Moneycontrol Top Headlines | 14 Feb 2009 | 10:00 am Bailed-out US cos cannot replace laid-off workers by H1-B visa holdersWashington: In what could be seen as a major blow to Indian IT professionals, the US Congress has prohibited banks and firms receiving federal bailout money from hiring people on H-1B visas in place of Americans laid off by them due to the economic meltdown. The American Immigration Lawyers Association, which had earlier opposed the measure, on Friday described it as “disappointing”. It argued that this would prove to be counterproductive as it prevents the US companies to hire the best available global talent. The H1-B has mostly benefited Indian techies. The measure forms part of the American Recovery and Reinvestment Act, popularly known as the stimulus bill. The Act finally passed by the Congress - both the House of Representative and the Senate - makes a provision of $787 billion for reviving the lagging US economy. As the banks have announced mass layoffs, the measure would effectively place a moratorium on the H-1B visa programme, Senator Bernie Sanders said in a statement. The Independent Senator from Vermont, along with the Republican Senator from Iowa, Charles Grassley, moved such a proposal in the Senate as an amendment to the stimulus bill. The measure, as finally approved by the Congress, would require the bailed-out banks to hire only Americans for two years unless they could prove they were not replacing laid-off Americans with guest workers, Sanders said. Source: LatestNews-Home - Livemint.com | 14 Feb 2009 | 9:38 am Reliance Infra unveils another buyback planReliance Infrastructure on Friday announced a share buyback plan, just a week after it completed the first one.Source: Moneycontrol Top Headlines | 14 Feb 2009 | 9:29 am LeylandNissan JV may come up at Nissan facilityAshok Leyland is considering the option of setting up its joint venture with Nissan at the NissanRenault facility coming up at Oragadam.Source: Moneycontrol Top Headlines | 14 Feb 2009 | 8:45 am Indian shareholder to own 51% in defence cos: Kamal Nath - Moneycontrol.com
Source: Google News India - Business | 14 Feb 2009 | 8:37 am Mumbai Police to charge LeT men in 26/11 - IBNLive.com
Source: Google News India - Business | 14 Feb 2009 | 8:24 am Narayana Murthy appointed IT adviser to Lankan PresidentColombo: In a bid to increase investments into the IT sector, the Sri Lankan government has appointed the Infosys chief mentor Narayana Murthy, as the international adviser on information technology to President Mahinda Rajapaksa. “Mr N R Narayana Murthy was appointed as the international adviser to the Sri Lankan President and he has accepted it”, Sri Lankan foreign secretary Palitha Kohona said. Rajapaksa made the appointment after inviting Narayana Murthy as the chief guest to the ceremonial launch of ‘2009-Year of English and Information Technology´ at the Presidential Secretariat here on Friday. Speaking at the event, Rajapaksa said the great success of India in the field of Information Technology in the recent years has highly inspired Sri Lanka. “It is for this reason that we have turned to India in addition to other countries for technical support to strengthen our own endeavours. We are honoured by the presence today of Narayana Murthy, ‘the father of IT in India´ and the chairman and mentor of the world famous Infosys,” President Rajapaksa said on Friday. Padma Vibhushan awardee Murthy has stepped down as Infosys CEO but continues as its chief mentor and board chairman. Source: LatestNews-Home - Livemint.com | 14 Feb 2009 | 8:13 am Narayana Murthy appointed IT adviser to Lankan PresidentColombo: In a bid to increase investments into the IT sector, the Sri Lankan government has appointed the Infosys chief mentor Narayana Murthy, as the international adviser on information technology to President Mahinda Rajapaksa. “Mr N R Narayana Murthy was appointed as the international adviser to the Sri Lankan President and he has accepted it”, Sri Lankan foreign secretary Palitha Kohona said. Rajapaksa made the appointment after inviting Narayana Murthy as the chief guest to the ceremonial launch of ‘2009-Year of English and Information Technology´ at the Presidential Secretariat here on Friday. Speaking at the event, Rajapaksa said the great success of India in the field of Information Technology in the recent years has highly inspired Sri Lanka. “It is for this reason that we have turned to India in addition to other countries for technical support to strengthen our own endeavours. We are honoured by the presence today of Narayana Murthy, ‘the father of IT in India´ and the chairman and mentor of the world famous Infosys,” President Rajapaksa said on Friday. Padma Vibhushan awardee Murthy has stepped down as Infosys CEO but continues as its chief mentor and board chairman. Source: Tech News - Livemint.com | 14 Feb 2009 | 8:13 am India property prices need to fall 20 pct or more - ICICI execMUMBAI (Reuters) - The incoming head of India's largest private bank ICICI Bank said real estate prices needed to fall by 20 percent or more as the market corrects amid the economic slowdown, the Times of India reported on Saturday.Source: Reuters: Money News | 14 Feb 2009 | 7:39 am Property prices need to fall 20% or more: ICICI executiveMumbai: The incoming head of India’s largest private bank ICICI Bank said real estate prices needed to fall by 20% or more as the market corrects amid the economic slowdown, the Times of India reported on Saturday. Prices need to fall by “maybe 15-20%, or maybe more”, Chanda Kochhar, who is set to become chief executive of the bank, was quoted as saying. “Piecemeal corrections have already happened ... But they also need an adjustment in the paradigm.” Kochhar said there was no pressure on the bank’s books from souring housing and auto loans. “Maybe a little delayed, but there is no real increase in losses or non-performing assets,” she said according to the report. “But we have not only substantially tightened credit norms there, we have also budgeted for any losses that may arise there.” She added interest rates and loans were expected to fall. Source: LatestNews-Home - Livemint.com | 14 Feb 2009 | 7:35 am Pak is battling to survive against growing Taliban’s presence: ZardariNew York: Acknowledging that his government had underestimated the threat from Taliban, Pakistan President Asif Ali Zardari said in an interview to a television channel, the terrorist group was present in “huge amounts of land” in the country extending its reach beyond the tribal belt to larger cities like Peshawar. Now, Pakistan was engaged in a battle to survive against the Taliban’s growing threat, Zardari said in an interview to CBS television network. “(The Taliban) do have a presence in huge amounts of land in our side. Yes, that is the fact,” he said. Once confined to the country’s tribal area bordering Afghanistan, from where they carried out strikes against the US-led coalition forces in the war-torn country, the Taliban had extended their influence in Pakistan’s inland to cities like Peshawar and the Swat Valley, Zardari added. The Taliban, he said, had been taken for granted for a long time. “It’s been happening over time and it’s happened out of denial. Everybody was in denial.” Many thought they were weak and they would not be able to take over or challenge the government, Zardari said. As a result, the forces to challenge them were not increased. But “we have weaknesses and they are taking advantage of that weakness,” he said in a yet-to-be telecast interview, excerpts of which were released by the CBS. His remarks follow US President Barack Obama’s assertion that “safe havens” for Taliban and Al-Qaeda would not be allowed in Pakistan. Zardari, who is battling public opinion in Pakistan where most citizens believe that the fight against the Taliban and Al-Qaeda was America’s war their government was fighting by proxy, said: We’re not doing anybody a favour.“ “We are aware of the fact ... Taliban... (is) trying to take over the state of Pakistan,” he said. “So, we’re fighting for the survival of Pakistan. We’re not fighting for the survival of anybody else.” Zardari said he was determined to prevail. “I lost my wife (former premier Benazir Bhutto) to it (terrorism). My children’s mother ... It’s important to stop them and make sure that it doesn’t happen again and they don’t take over our way of life,” he said. “That’s what they want to do.” Source: LatestNews-Home - Livemint.com | 14 Feb 2009 | 7:03 am Executive pay curbs approved in US stimulus billWashington: The US Congress on Friday voted to restrict bonuses and other forms of pay for top managers at banks and companies getting taxpayer help under the government’s $700 billion financial industry bailout. The pay curbs were approved as an amendment to a separate $787 billion economic stimulus package approved by both the Senate and the House of Representatives. It will go next to President Barack Obama, who is expected to sign it into law. The pay curbs would affect companies being assisted under the Treasury Department’s Troubled Asset Relief Program (TARP). The TARP was launched in October by the George Bush administration as an effort to stabilize the financial system. The curbs were drawn up by Sen. Christopher Dodd, chairman of the Senate Banking Committee. They would ban compensation incentives that encourage senior managers “to take unnecessary and excessive risks that threaten the value” of a company. “Golden parachute” severance packages for top executives at TARP beneficiaries would be prohibited. So would pay plans that “encourage manipulation of the company’s reported earnings.” Bonuses would be limited for senior executives and the top 20 employees at firms getting more than $500 million from TARP; senior executives and the top 10 employees at firms getting $250 million to $500 million; and smaller groups of managers at firms getting less than $250 million in graduated increments. “The decisions of certain Wall Street executives to enrich themselves at the expense of taxpayers have seriously undermined public confidence in efforts to stabilize the economy,” Dodd, a Connecticut Democrat, said in a statement. “These tough new rules will help ensure that taxpayer dollars no longer effectively subsidize lavish Wall Street bonuses.” Shortly after the TARP began, questions arose about what was happening to the money being injected into banks by the Treasury Department through preferred share purchases. Reports surfaced of large executive bonuses, expensive travel and buyouts of other banks, with few signs evident that TARP recipients were lending out the money in order to get stalled credit markets moving again and revive the economy. The Treasury has committed more than $500 billion under the TARP to assist many firms, including the banks Citigroup Inc, Bank of America Corp, Bank of New York Mellon Corp, and Goldman Sachs Group Inc. Insurer American International Group Inc and automakers General Motors Corp and Chrysler LLC have gotten TARP aid. So have banks JPMorgan Chase, Wells Fargo, Morgan Stanley and many others. At a House Financial Services Committee hearing on Wednesday, the chief executives of eight large banks defended their use of TARP funds, although some lawmakers remained skeptical about the beneficial impact of the program. Under Dodd’s amendment, Treasury could “claw back” past pay and bonuses from top managers at TARP firms if the compensation was awarded wrongfully or based on inaccurate criteria. In addition, “say on pay” rules would be imposed on TARP firms to give shareholders more influence on pay decisions. “The restrictions will limit the ability of financial institutions to attract and retain employees who work on commission,” said Scott Talbott, spokesman for the Financial Services Roundtable, a lobbying group for financial firms. He said the curbs will make firms less competitive, but he added that financial firms “will comply with the new law.” President Barack Obama last week set a $500,000 cap on executive pay and imposed other restrictions on companies that receive TARP money. Obama’s rules were not retroactive. Dodd’s provision would affect all TARP recipients, past and future. Source: LatestNews-Home - Livemint.com | 14 Feb 2009 | 6:09 am Govt orders high-level probe into Coromandel Express mishapBhubaneswar: A high-level inquiry has been ordered into the derailment of the Howrah-Chennai Coromandel Superfast Express train near Jajpur Road railway station, about 100 km from here on Friday evening, railway officials said. The inquiry is likely to be conducted by the chief commissioner of Railway Safety and other senior officials to ascertain the exact reason of the mishap, chief public relations officer of East Coast Railway (ECOR) J P Mishra said. Sixteen passengers were killed and 161 injured when 13 bogies of the Coromandel Express from Howrah derailed while changing tracks in Orissa’s Jajpur district. Confirming the casualties, general manager East Coast Railway Ajay Kumar Goel said that 13 bogies of express train, which was running at a high speed, derailed just after it passed through the Jajpur Road railway station with the engine overturning on Friday evening. Union minister of state for Railways R Velu, Railway Board chairman S S Khurana and some board members were slated to visit the accident site, Mishra said. Goel, who inspected the accident site, told PTI that of the 13 bogies, 11 were sleeper coach and two general. DGP Manmohan Praharaj said that the accident occurred while the express train was changing tracks outside the station. The engine of the train went onto one track and capsized, while the bogies, which remained on another derailed and scattered in all directions, he said. Passengers who were on the train spoke of feeling a number of sharp jerks moments before the accident at around 8:00pm suggesting that the driver applied the brakes. The wheels and springs of the bogies lay in all directions 200 to 300 metre away from the spot, a PTI correspondent on the scene saw. One of the 13 bogies had climbed onto another. Source: Home - Livemint.com | 14 Feb 2009 | 5:17 am US Congress passes stimulus, EU recession deepensWashington: The US Congress passed a $787 billion stimulus plan to jump-start the economy on Friday, as G7 finance chiefs vowed to ward off the specter of protectionism arising from deepening global recession. The US package of government spending and tax cuts aimed at reviving the world’s largest economy cleared both chambers of Congress, overcoming the resistance of Republicans who sought more tax breaks. President Barack Obama is expected to sign the bill into law soon. Its approval failed to dispel pessimism on Wall Street, where persistent worries about the health of the banking sector this week have driven stock prices down by about 5%. Markets were buoyed earlier by hopes that governments were coming up with measures to deal with the crisis and a plan President Barack Obama will announce on Wednesday to stem home foreclosures and stabilize the battered US housing sector. But a report by Britain’s Lloyds Banking Group that its HBOS subsidiary lost £8.5 billion ($12.28 billion) last year renewed fears about the financial system. US stocks stumbled in volatile trading, closing 1% down. The Dow Jones Industrial Average ended the week 5.2% lower, its worst one-week performance since 20 November. But shares of some big manufacturing companies gained on expectations they will benefit from the US stimulus plan. US oil futures, after a five-day losing streak, jumped 10% on hopes the stimulus package could pull the economy out of a 13-month recession and restore domestic demand. The bill aims to create or save 3.5 million jobs. Investors remain jittery about US Treasury Secretary Timothy Geithner’s $1 trillion bank rescue plan and, lacking details, they wonder how it would relieve banks of money-losing assets at the root of the financial crisis that spread round the world. The biggest American banks agreed on Wednesday to foreclosure moratoriums for at least a few weeks until the US government launches an aid program for troubled homeowners using $50 billion included in Geithner’s bank rescue package. There is likely more pain to come. The US economy will shrink a whopping 5.2% in the first quarter, its worst performance since 1982, according to a survey published by the Philadelphia Federal Reserve. G7 Vows No Protectionism The Group of Seven leading industrialized nations, worried that protectionism is on the rise as the recession worsens, will promise to do all they can to stop the downturn and avoid erecting new trade barriers, according to a statement being prepared for publication on Saturday. The text, a draft of which was obtained by Reuters while G7 finance ministers were meeting in Rome, said stabilizing the economy and financial markets was their “highest priority.” “We reaffirm our commitment to act together using the full range of policy tools to support growth and employment and strengthen the financial sector,” the text said. “The G7 remains committed to avoiding protectionist measures, which would only exacerbate the downturn,” it said. As the G7 gathered in Rome, data showed the euro zone economy as a whole and those of its three biggest members -- Germany, France and Italy -- all contracted more sharply than expected in the final quarter of 2008. Germany and Japan said concerns about rising protectionism would be raised at the meeting, focusing on a “Buy American” clause in the US stimulus package and plans by other nations to protect their jobs and industries. “We are seeing a substantial downturn in economies around the world,” UK Chancellor of the Exchequer Alistair Darling told reporters on arrival in Rome. “The euro area figures today demonstrate the scale of the problem we face. “I believe it is important that every country does what is right to support its own economy, the ... problem for each country is how we get lending going again,” he said. But he added, “To retreat into protectionism would be disastrous, just as it was in the 1930s.” The euro zone economy saw its deepest contraction on record in the fourth quarter of 2008, shrinking 1.5% against the previous quarter. German GDP fell 2.1% quarter-on-quarter, the worst decline since the country’s unification in 1990. “The economy is now in its worst postwar recession. ... There can be no talk of economic recovery for now,” said Alexander Krueger of Bankhaus Lampe. French gross domestic product fell 1.2% in the fourth quarter of 2008. Economy Minister Christine Lagarde predicted a contraction of more than 1% in 2009. Italy’s economy shrank by 1.8% in the last three months of 2008, the steepest drop since 1980. Germany’s Bundestag, the lower house of parliament, approved a €50 billion ($65 billion) stimulus package, adding to a first installment last year that the government said was worth some €31 billion. The upper house must also approve it. Australia’s parliament passed a A$42 billion ($27.4 billion) stimulus plan after last-minute dealmaking. In Britain, the Bank of England launched a scheme to help the recovery of credit markets by buying short-term corporate debt. Asian shares reversed three sessions of losses during which investors had sought safe havens, with hopes rising that governments around the world were coming up with measures to cushion the worst of the global downturn. The MSCI index of non-Japan Asia-Pacific stocks rose 2.48%. Japan’s Nikkei ended 0.96% higher. In Europe, the FTSEurofirst 300 index was 1.93% higher as optimism about a US mortgage subsidy plan boosted banks. Source: Home - Livemint.com | 14 Feb 2009 | 5:05 am U.S. Congress sends $787 bln stimulus to ObamaWASHINGTON (Reuters) - The U.S. Congress, handing President Barack Obama a major legislative victory, approved on Friday a $787 billion stimulus bill that aims to rush emergency government spending and tax cuts to a nation in the grip of a severe recession.Source: Reuters: Money News | 14 Feb 2009 | 3:57 am Wall St Week Ahead - Investors anxious for clarity on bank planNEW YORK (Reuters) - With Wall Street veering close to the November bear market lows, the market is likely to be awash with caution next week as investors look for clarity on how the government plans to shore up banks, housing and the economy.Source: Reuters: Money News | 14 Feb 2009 | 1:16 am US stocks fall as world finance ministers meetNew York: Investors were holding back on making big bets on stocks until they learn more about government efforts to revive the economy and the struggling financial system. The US shares slipped on Friday ahead of the long holiday weekend, as finance ministers from the group of seven countries gathered in Rome on Friday to discuss new rules for financial markets and concerns about protectionism in recently announced economic stimulus plans. Investors are hoping that leaders from the US, Canada, Japan and other industrialized nations will come up with specific proposals for repairing the global financial system. Earlier this week, Wall Street took a tumble after US treasury secretary Timothy Geithner revealed plans to assess financial institutions’ health and remove their toxic assets with the help of private investors, but gave few details about how the process would work. “The market is showing signs of wanting to rally,” said Peter Cardillo, chief market economist at Avalon Partners Inc. He pointed to the Dow Jones industrial average’s late-day comeback on Thursday after nearing its November 2008 lows. Meanwhile, the Obama administration’s $790 billion economic stimulus plan will likely be voted on by the House Friday. It will then go to the Senate. Investors believe the economy will eventually rebound, but they are unsure how much further it will slide, and which companies will come out on top. A spate of gut-wrenching economic and corporate earnings reports over the past few weeks have left the market deeply unsettled. On Friday, the University of Michigan delivered the latest dose of poor news, reporting that consumer sentiment dropped sharply in February. With stock prices so low, “you’re certainly rewarded for risk-taking. Unfortunately, it’s not a great environment to take a lot of risk,” said Jack A. Ablin, chief investment officer at Harris Private Bank. In early afternoon trading, the Dow fell 76.78, or 0.97%, to 7,855.98, after trading in positive territory earlier in the session. US markets are closed on Monday for Presidents Day. Broader stock indicators also turned lower. The Standard & Poor’s 500 index fell 8.17, or 0.98%, to 827.02, and the Nasdaq composite index fell 8.98, or 0.58%, to 1,532.73. The Russell 2000 index of smaller companies fell 1.98, or 0.44%, to 448.44. Declining issues outnumbered advancers by about 9 to 5 on the New York Stock Exchange, where volume came to 510.3 million shares. Bond prices were mostly lower. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.89% from 2.79% late on Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.30% from 0.28%. In earnings news, PepsiCo said its fourth-quarter profit fell, but the soft drink maker’s adjusted results met analysts’ expectations. Pepsi shares rose 75cents to $52.75. Teen retailer Abercrombie & Fitch Co. said its fourth-quarter profit slid 68% due to hefty asset impairment and tax costs and dropping sales. But the results, after stripping out one-time items, beat estimates. Shares rose $1.79, or 8.7%, to $22.49. Source: Home - Livemint.com | 14 Feb 2009 | 12:03 am Markets this weekA substantial number of promoters in India Inc have pledged shares worth over Rs 5,000 crore at current market value, as security for loans availed from banks and financialSource: Business Line - Home Page | 14 Feb 2009 | 12:00 am TCS hints at hit in earnings this quarterMumbai, Feb. 13 Tata Consultancy Services (TCS) on Friday indicated that delay in finalisation of IT budgets by clients could impact the company’s earnings thisSource: Business Line - Home Page | 14 Feb 2009 | 12:00 am Lalu cuts fares by 2% across all classesNew Delhi, Feb. 13 Mr Lalu Prasad’s rather successful run as Rail Minister has suffered a slowdown of sorts in the last year of his tenure ahead of the forthcoming Parliament elections.Source: Business Line - Home Page | 14 Feb 2009 | 12:00 am Renault will stick to Chennai planMumbai, Feb. 13 French carmaker Renault is categorical that it will not pull out of India despite the slowdown that has derailed its plans.Source: Business Line - Home Page | 14 Feb 2009 | 12:00 am SEBI to ease takeover norms for cos with superseded boardsMumbai, Feb 13 SEBI said it would ease its takeover regulations for companies whose boards have been superseded and replaced by the Government or other regulatory authority, smoothening the way for a possible sale of Satyam Computer, the onlySource: Business Line - Home Page | 14 Feb 2009 | 12:00 am Ashok Leyland sees signs of recovery, but pares investmentsChennai, Feb. 13 Commercial vehicles manufacturer Ashok Leyland believes that the worst is behind for the commercial vehicles industry but has pared investments and cut costs to tackle the slowdown in sales.Source: Business Line - Home Page | 14 Feb 2009 | 12:00 am E-auction will give Satyam needed liquidity: B.K. ModiHyderabad, Feb. 13 With SEBI announcing takeover norms to facilitate finding suitors for Satyam-like companies, Mr B.K. Modi, Chief of the Spice group, has said that buying of shares in the open market will be of no use to revive Satyam ComputerSource: Business Line - Home Page | 14 Feb 2009 | 12:00 am New norms will bring in more FDI: Kamal NathNew Delhi, Feb. 13 Amid the Left Parties’ charge that the Government had by passed Parliament while announcing new FDI guidelines, the Commerce and Industry Minister, Mr Kamal Nath, on Friday said that the new guidelines correct theSource: Business Line - Home Page | 14 Feb 2009 | 12:00 am New money-back policy from LICKolkata, Feb. 13 In a final move to mop up premium target in 2008-09, the Life Insurance Corporation of India is launching its first close-ended, regular premium, guaranteed return money back policy on Monday, informed sources from LIC toldSource: Business Line - Home Page | 14 Feb 2009 | 12:00 am UTI ‘not averse’ to acquisitionsMumbai, Feb. 13 When the going is good when your business competitors have their backs to the wall, it may be a good idea to be open to acquisition, or so believes UTI Mutual Fund.Source: Business Line - Home Page | 14 Feb 2009 | 12:00 am DIPP proposes upto 100% FDI in single brand retailThe Department of Industrial Policy and Promotion, or DIPP, has written to the Cabinet on policy changes in the FDI in single retail, reports CNBCTV18. DIPP has proposed up to 100% FDI in single brand retail subject to certain conditions.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 9:02 pm Existing takeover code flawed, Sebi step adequate: JR VarmaJR Varma, Former Member, SEBI, is against making Sebis takeover code provision Satyam specific. He said Sebi has taken this decision because the existing takeover code is flawed and therefore it is adding a new chapter to the takeover code and saying that here we have a process.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 8:37 pm BK Modi says war chest readyBhupendra Kumar Modi of Mcorp Global feels that it would take two to three years for reviving Satyam and putting it back on track.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 8:35 pm Should you invest in Tata Capital's NCDs?Tata Capital, has recently launched a non convertible debenture (NCD), which promises to pay an interest of 11-12%.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 8:35 pm The day the music industry diedThe world has forgotten Shawn Fanning, who as a 19-year-old in June of 1999, created the killer website Napster.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 8:35 pm Mallya-Diageo deal stuck over controlGlobal drinks major Diageo wants reins of any joint venture, United Spirits chief Vijay Mallya is unyielding.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 8:35 pm Bharati LNG vessels order value may riseBharati Shipyard sees the order value for two of its vessels going up after they were converted to being liquefied natural gas powered.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 8:35 pm Valuation bugbear for Nirula's dealNavis Partners, the Malaysian private equity firm, which holds 100% equity in fast food chain Nirula's, is looking for buyers.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 8:35 pm Sebi bars big bear for a year; he'll appealSebi has banned Shankar Sharma, director, First Global Stock Broking Pvt Ltd, from the stock markets for one year.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 8:35 pm Imperialist centre gives way to activist centreThe bloated bureaucracies of corporate offices must be trimmed and the cost savings returned to the shareholders or debt holders.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 8:35 pm Sebi bars Shankar Sharma from mkts for 1yrThe Securities and Exchange Board of India has barred Shankar Sharma from dealing in securities for oneyear. The order pertains to a 2001 investigation and comes into force immediately after four weeks. Sharma indulged in fictitious trading, did not cooperate with Sebi, and indulged in concerted attempt to intefere with markets, it said.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 8:16 pm Slowdown puts brakes on Lalu's dream runThe economic slowdown has slammed the brakes on the fairy-tale run of the Indian Railways. After crossing passenger and freight targets in the five full Budgets that Railway Minister Lalu Prasad presented, the Interim Railway Budget for 2009-10 showed that India's largest employer would just about cross the targets for 2008-09 for passenger and freight earnings.Source: Business Standard | Front Page Headlines | 13 Feb 2009 | 8:05 pm Mechanism needed to protect assets: Sandeep ParekhSandeep Parekh, Professor, IIMA, said the new Sebi takeover norms for distressed companies looks like it is created for one company. \"I am not comfortable with it.\" Parekh said the government has to provide some mechanism for protecting assets.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 7:58 pm Telenor to up stake in Unitech Wireless to 74%Telenor plans to up its stake in Unitech Wireless to 74% on deal closure, reports CNBCTV18. It also plans to launch telecom operations in India by JulySeptember. Telenor\'s current plan is to have 60% stake in Unitech Wireless.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 7:56 pm Lalu’s swansong is train to nowhereNew Delhi: For a man who started his life as a socialist politician, Lalu Prasad’s stint as India’s railway minister—winding to a close as this government gets ready to finish its term by May—has been marked by the decidedly free-market trait of pursuing profit. Click here to watch video The profit motive, as indeed any other, was muted on Friday when he presented the railway budget, his sixth and last in this stint as minister, but through the past five years, Prasad had made his objective clear: higher revenue without increasing ticket prices. On Friday, Prasad cut fares for air-conditioned and cheaper passenger trains by 2%, and promised to start 43 new trains in the fiscal year beginning 1 April. However, he did not announce any incentives for cargo handling. A reduction in freight rates could have added to the fiscal and monetary stimulus packages announced by the government, said Satish Bagrodia, president of PHD Chamber of Commerce and Industry. Also See Chugging Along (Graphic) And the budget didn’t list any big-ticket partnerships with private firms to build infrastructure—the kind of projects that result in more jobs. “He didn’t come up with any PPP (public-private partnership) initiatives,” said Umesh Chowdhury, managing director of Titagarh Wagons Ltd. Prasad said the growth in freight traffic was adversely impacted by the nation’s economic slowdown, outlining the constraints in reducing tariffs for cement, steel and other commodities. Still, the ingenious Prasad has found ways to address similar constraints in the past. Not all worked. One involved fitting a third berth on the side bays of long-distance trains. A protest by passengers resulted in the withdrawal of coaches fitted with these extra berths that would have allowed Indian Railways to carry 11 passengers more in every coach—resulting in higher revenue. The pursuit of profit  Losing steam: Union railway minister Lalu Prasad entering Parliament to present the interim rail budget in New Delhi on Friday. Kamal Singh / PTI Despite this, however, Prasad didn’t increase ticket prices even once, although fares for special services such as Tatkal—which lets people buy tickets with reserved seats or berths at short notice for an extra charge—have been raised periodically, as reported by Hindustan Times on 11 February. In an effort to earn more, the Indian Railways added coaches to trains and lengthened platforms. It increased the capacity of wagons. And it decided to lease railway land for commercial purposes. “Instead of increasing passenger fares, we concentrated on increasing the length of passenger trains. Between 2004-05 and 2007-08, we added 3,000 additional coaches, thereby earning an additional Rs2,000 crore,” the minister had said while presenting last year’s budget. In 2008, the Indian Railways carried 790 million tonnes (mt) of cargo, compared with 602.5mt in 2004-05. Revenue from freight almost doubled from Rs30,778 crore in Prasad’s first budget to Rs59,059 crore thus far in 2008-09. That the economy was on a roll helped. India’s economy expanded at an average of 8.9% in the first four years of the current government. The cash surplus of the railways almost trebled from around Rs9,410 crore in 2003-04 to Rs25,065 crore in 2007-08. The ministry had previously said it expects to have a Rs30,000 crore cash surplus before dividend this fiscal year. “We used to keep asking the railways officials to earn more so that they could support their capital expenditure with internal generation,” said Anwarul Hoda, member, Planning Commission. “It was only after Lalu took charge that the railways actually started earning huge cash surpluses.” Decreasing the turnaround time of freight trains and expanding the carrying capacity of wagons did the trick, Hoda added. Building on the budget J.P. Batra, who was chairman of the Railway Board when it posted a record Rs20,000 crore cash surplus for the first nine months of 2006-07, said that such an exceptional performance would not have been possible if the railways had remained rooted in tradition. “Traffic was available for the asking. It was an opportunity that needed to be encashed.” While doing so, however, Prasad also had the vision to think beyond his tenure, say analysts. In the 2007-08 budget, he proposed Rs1 trillion spending over the following five years. More importantly, he proposed that this would be achieved by attracting private capital. Prasad’s plan included proposals for bullet trains, at least 100 budget hotels, station facilities, ambitious modernization plans for 22 railway stations, and several factories to manufacture wagons and locomotives. Even as he worked to ensure a legacy, Prasad’s railways did not miss out on small details, add analysts, marrying big ticket changes—such as auctioning surplus railway land and inviting private sector investments—with minor conveniences such as providing facilities to charge laptop and mobile phones in trains and promising Internet cafes at some stations.  Planning Commission officials were also enthused by the fact that the railway minister had decided to follow the so-called PPP path. But the Railway Board opposed taking this route for some infrastructure projects. That Prasad managed to open the doors of Rail Bhavan (the seat of the ministry) for private players without fraying ties with his friends in the Left (Communist) parties was another achievement. “It is not correct to say that we have not opposed the privatization initiatives in the railways,” said Prasenjit Bose, member of the economic cell of the Communist Party of India (Marxist). “But at the same time, the railways has also improved its efficiency in transportation.” Similar praise comes from the opposite end of economic thinking in the country. Says a top Planning Commission official, who is a key proponent of infrastructure privatization: “The minister has been steady in his commitment to seeing the PPP projects through. He has a clear mind and wants to see these projects implemented. The delays are on account of red tape.” The official did not wish to be identified. Those are the delays that could haunt the next railway minister. Not all straight As Many of Prasad’s ambitious plans are still blueprints. The projects that are close to being awarded are the two locomotive factories proposed in Bihar and contracts for the 3,300km freight corridor, an exclusive route for goods that will connect the six metropolitan cities. And the emphasis on profits without compromising on populism has created problems of a different nature. Prasad’s critics say that the axle-load, the maximum load that a pair of wheels of a wagon can absorb, was raised on an average by nearly 40% to 32.5 tonnes in Prasad’s push for profit. Such overloading is a concern, they say. “The railways is overloading the freight carriers, which will result in huge maintenance and operations cost. And as far as passenger safety is concerned, there is no clarity. There have been more derailments and accidents during Lalu’s rule,” said Prakash Javdekar, spokesperson for the Bharatiya Janata Party, the main opposition party. Also, despite the strides the railways has made in several areas, trains continue to be plagued by its trademark problems of poor hygiene, with rats and cockroaches having a free run, as an HT reporter found on a 38-hour, 2,800km train trip ahead of the rail budget. (HT is published by HT Media Ltd, which also publishes Mint.) The biggest problem facing the next railway minister, however, is the abrupt reversal in the economy. “When you have a healthy growth rate, it is easy. Let’s see whether the railways can maintain such impressive figures as the effect of the slowdown starts kicking in,” said a former railways officer, who didn’t want to be identified. Political critics, too, argue similarly. “Lalu is a good marketing man. The foundation for the railway turnaround was laid by Nitish Kumar during the NDA (National Democratic Alliance) government, when an outlay of Rs70,000 crore was earmarked for the railway modernization,” added Javdekar. The economic boom that followed did the rest. narayana.k@livemint.com Utpal Bhaskar, Reuters and Bloomberg contributed to this story. Graphics by Sandeep Bhatnagar / Mint Source: Home - Livemint.com | 13 Feb 2009 | 7:22 pm The week in reviewNew Delhi: It was an action-packed week with sharp reactions to the railway budget, the government diluting FDI norms for sensitive sectors and airlines doing a flip-flop on fares. Click here to watch video In an election year the UPA government has gone ahead and relaxed FDI ceilings for sensitive sectors like telecom, media, aviation, banking, defense and insurance, but in a round about way. The Cabinet Committee on Economic Affairs (CCEA) adopted new guidelines on Wednesday. The rail budget on Friday was a bit of a damper with Lalu Prasad Yadav making only a token populist gesture. He announced a nominal 2% fare cut across the board, but kept freight rates unchanged. 43 new passenger trains have been introduced, 14 existing routes extended and frequency of trains on 14 routes increased. In first six months freight earnings rose by 19% and passenger earnings by 14%. Railways expect its overall earnings to rise by 13% next year to Rs93,159 crore. And airlines did a u-turn and increased airfares by Rs1,000 to Rs2,000 per ticket, just a month after most of them slashed fares and came out with cheap tickets starting at Rs99. Kingfisher Airlines, Air India and budget airlines like SpiceJet and IndiGo have all increased fares, prompting the anti-monopoly watchdog MRTPC to order an inquiry into the coordinated hike. And on Thursday Pakistani government blinked. It admitted that the Mumbai terror attacks were launched and partly planned from Pakistan. Interior minister Rehman Malik in a press conference said Pakistan was holding in custody a ringleader and five other suspects. Indian external affairs minister Pranab Mukherjee said it was a positive step but Pakistan needs to dismantle the terrorist training camps on its soil. Islamabad’s admission is seen as a reaction to president Barack Obama’s policy of tying aid with progress on battling militants. And for Indians it is seen as a major diplomatic win. Source: LatestNews-Home - Livemint.com | 13 Feb 2009 | 7:22 pm Bank stocks advance on speculation of rate cutMumbai: The Bombay Stock Exchange’s (BSE) key index rose on Friday, snapping a two- day decline, as ICICI Bank Ltd led financial companies higher on expectations the central bank may cut interest rates to boost economic growth. Click here to watch video ICICI Bank climbed 3.1% after the government said it will continue efforts to stimulate lending and bolster growth, prompting speculation that borrowing costs will be lowered to revive the economy after industrial output dropped the most in 16 years. State Bank of India (SBI) added 3.2% to its highest close in a month. HDFC Bank Ltd added 1.1%. “We expect a 50-100 basis points cut in rates by April,” said Navneet Munot, who oversees $5.5 billion (about Rs26,790 crore) as chief investment officer at SBI Asset Management Co. Ltd in Mumbai. The Sensex advanced 168.91 points, or 1.8%, to 9,634.74. The index gained 3.6% this week. The S&P CNX Nifty index on the National Stock Exchange (NSE) added 55.30 points, or 1.9% to 2,948.35. ICICI gained 3.1% to Rs434.40. SBI rose 3.2% to Rs1,195.90, the highest since 14 January. HDFC Bank added 1.1% to Rs944.15. The share prices are composite of BSE and NSE rates. The government will continue efforts to stimulate bank lending and bolster growth, commerce and industry minister Kamal Nath told reporters in New Delhi on Friday. Separately, Suresh Tendulkar, chairman of the Prime Minister’s Economic Advisory Council, said that an interest rate cut was desirable to stimulate economic growth. Inflation slowed to a one-year low, prompting speculation that borrowing costs will be lowered. Wholesale prices climbed 4.39% in the last week of January from a year earlier after gaining 5.07% the previous week, the commerce ministry said on Thursday. Economists expected an increase of 4.41%. Tata Steel Ltd led commodity producers higher on optimism China’s economy is showing signs that a 4 trillion yuan (Rs29 trillion) stimulus package is taking effect. The world’s third biggest economy may expand 6.6% in the second quarter after slowing to 6.3% in the three months to 31 March, according to the median estimates of 14 economists surveyed by Bloomberg. China is the world’s biggest consumer of industrial metals, including steel, copper and aluminium. Tata Steel added 4.6% to Rs194.15. Steel Authority of India Ltd climbed 3.5% to Rs90.65. Hindalco Industries Ltd rose 1.3% to Rs45.75. Sterlite Industries (India) Ltd added 2.5% to Rs275.40. Source: Home - Livemint.com | 13 Feb 2009 | 7:21 pm New norms remove disparity between capital: NathDefending the new foreign investment guidelines released this week, Commerce and Industry Minister Kamal Nath today said the norms would not distinguish between different forms of foreign capital.Source: Business Standard | Front Page Headlines | 13 Feb 2009 | 7:19 pm Sebi eases takeover rules to help Satyam biddersStock market regulator Securities and Exchange Board of India, or Sebi, today relaxed the takeover norms for distressed companies whose board has been superseded by the government.Source: Business Standard | Front Page Headlines | 13 Feb 2009 | 7:08 pm Decks cleared for speedy Satyam saleMumbai: The sale plan for Satyam Computer Services Ltd is finally clear. The scam-hit software exporter will be sold to the highest bidder in a “transparent” and “competitive” process, after capital markets regulator Securities and Exchanges Board of India (Sebi) said on Friday that it has amended the country’s takeover norms. No hostile bids can be made thereafter. Sebi, in a notification, amended the Substantial Acquisition of Shares and Takeovers (SAST) Regulation for distressed companies, whose boards have been reconstructed by the government. If the process is slow, key clients may terminate contracts and this could directly impact the bid value A lower open offer price would have helped engineering company Larsen and Toubro Ltd (L&T), which owns 12% in Satyam, to buy it cheap. “The (open offer) formula goes out of the window,” said Akil Hirani, managing partner at corporate law firm Majmudar and Co. An open offer to buy public float at a pre-determined price gets triggered when an entity buys up to 15% stake in a publicly traded firm. Market participants welcomed Sebi’s move, calling it impartial and positive for Satyam shareholders. “This will help Satyam shareholders fetch higher value than in the case of an amended open offer price formula,” said the head of equity research at a foreign institutional brokerage, who did not want to be named. Spice group promoter B.K. Modi, another suitor for Satyam, also welcomed the Sebi decision. “We will definitely participate in the auction,” he told Mint by phone from Hyderabad. Modi, who late last year sold his family’s stake in a mobile phone services firm he controlled together with Telekom Malaysia Bhd for at least Rs2,700 crore, said his interest in Satyam was “as strong as we said in the past”. Apart from L&T and Modi, others such Tech Mahindra Ltd had expressed interest in Satyam. “There is now no ambiguity about the 26-week average (open offer) pricing. The final bid price will be the open offer price,” said Hirani. L&T has lost the competitive advantage it enjoyed to make an open offer. Soon after Sebi announced its decision on 2 February to lower the open offer price for Satyam, television channel CNBC-TV18 reported that L&T would consider raising its stake to 15% from about 12%. “We haven’t seen the details of the (Sebi) guidelines. We would not like to comment,” L&T spokesperson D. Morada said. “L&T continues to enjoy a mathematical advantage,” said a senior investment banker who has close relations with L&T. According to him, the Satyam sale process will now happen in two steps. In the first part, the Satyam board and its sale advisers, Goldman Sachs and Avendus Advisors Pvt. Ltd, will formulate the eligibility criteria for potential bidders. Based on this, three-five bidders may be chosen from the pool of interested parties. In the second step, the financial bids will be invited. “All the eligible bidders may look to buy 51% stake to take control of the company. L&T will have to buy just another 38%,” the investment banker said. “The onus will now be on the board of Satyam... They’ll have to take a call. We will respond after they (Satyam board) take a call,” said an L&T executive. According to him, Sebi’s decision will ensure that only serious players are in the fray to acquire a controlling interest in Satyam. Now that the government and Sebi have decided to sell Satyam through an auction, the speed of sale process will be critical for the bidding price, said analysts and investment bankers. If the process is slow, some key clients may terminate contracts and this could directly impact the bid value, said the investment banker close to L&T. Mumbai-based Enam Securities Pvt. Ltd is Modi’s financial adviser in the Satyam bidding process. Any bidder, according to Modi, would also have to take into account the class action and other suits against Satyam. “The legal suits range from $450 million to $800 million (Rs2,192-3,896 crore). A bidder will have to look at the probability of this liability. Then, balance it against the probability of revenues, profits, employee productivity, etc., and take a call,” said Modi. nesil.s@livemint.com Satish John contributed to this story. Source: Home - Livemint.com | 13 Feb 2009 | 7:07 pm Sebi bans First Global’s Shankar Sharma for 1 yrMumbai: India’s capital markets regulator on Friday ordered Shankar Sharma, vice-chairman and joint managing director of First Global Stock Broking Ltd, not to trade in shares for one year. The restraint is effective four weeks from the time the Securities and Exchange Board of India informs Sharma of its order. The restriction is on account of violation of norms during the stock market swindle known as the Ketan Parekh scam. Also Read The order, passed by Sebi director M.S. Sahoo, said: “I hold Mr Shankar Sharma guilty for synchronizing the trades in violation of regulation.” Sebi also said Sharma did not reply in time to the first show-cause notice issued by it in March 2004 to “delay the conclusion of the proceedings”. The Sebi order said Sharma had indulged in fictitious trading. Ketan Parekh, a Mumbai-based stockbroker, was involved in the stock market scam of 2000-2001. Parekh allegedly rigged share prices of firms in collusion with promoters through circular trading. Under this method, sell orders are entered by a broker who knows that offsetting buy orders for the same number of shares at the same time and at the same price have either already been or will be entered. As a result, these trades don’t represent any change in the beneficial ownership of the security. In December 2003, Sebi banned Parekh and associated firms from trading in the market for 14 years. In its order against Sharma, the regulator said that First Global and a Sebi-registered sub-broker, Vrudhi Confinvest India Pvt. Ltd, had made large transactions in 10 securities that Parekh had used, such as Himachal Futuristic Communications Ltd, DSQ Software Ltd and Zee Telefilms Ltd. Devina Mehra, also a director of First Global, has been cleared of charges. She said the order “is blatantly illegal as per Sebi’s own law and is pursuing to be a witch hunt since 2001”. She added, “These particular charges have been investigated by Sebi with the full inquiry and Shankar had been exonerated at that time.” Source: Home - Livemint.com | 13 Feb 2009 | 7:06 pm Confusion reigns over FDI changesNew Delhi: The government on Friday issued guidelines that seek to clear the air on how foreign direct investment (FDI) is to be calculated. Even as they give companies room to side-step the foreign investment limits in several sectors such as telecom and insurance, the new guidelines could claim some unexpected victims.  Stakeholder: Union commerce and industry minister Kamal Nath. Manvender Vashist / PTI The change in the definition of FDI has caused considerable confusion. And there are some hints of collateral damage. One interpretation of the new guidelines would mean that some companies such as ICICI Bank Ltd would now be considered to be owned by foreign entities; and hence its 76% holding in its insurance subsidiary will be considered a foreign stake that exceeds the existing 26% FDI limit in insurance. “It will be onerous for several companies to comply with the new press note,” Akil Hirani, managing partner of Mumbai-based corporate law firm Majmudar and Co., said. Arguing similarly, a lawyer who did not want to be identified, said in the context of ICICI Bank, “downstream investment calculations will have to be reworked. In all likelihood, sectoral caps may be breached”. At the end of December, the bank’s shareholding information put up on the stock exchange websites showed that about 64% of the equity was owned by a combination of foreign institutional investors and holders of American depository receipts. The FDI sectoral cap in insurance is 26%, and in the case of ICICI Bank’s life insurance and general insurance ventures, the foreign partners are operating at the ceiling. Also See Guidelines for calculation of total foreign investment (PDF) Guidelines for tranfer of ownership or control of indian companies in sectors with caps from resident Indian citizens to non-resident entities (PDF) ICICI Bank did not immediately respond to an email query by Mint. The new guidelines implicitly recognize multi-tiered FDI: Foreign investment can be carried out through a series of subsidiaries to work around the present sectoral caps. The guidelines reiterate that management as well as economic control would determine whether or not a foreign holding was to be treated as FDI. The foreign investor could buy into a target company up to the permitted ceiling, and continue to invest through a series of subsidiaries in a multi-layered investment format. Earlier this was not permitted if the cumulative FDI was breaching the sectoral cap. Now, if at the first leg of this investment format the FDI stakes were 49% or less, the subsequent downstream investments, too, would be considered Indian and hence not outside the sectoral cap. The guidelines have also made it mandatory for companies to disclose to the government any shareholder agreement that may affect “ownership and control”. Further, it has laid down that barring insurance, which is governed by the specific regulations, the new methodology for calculating foreign investment will be used in all other sectors. asit.m@livemint.com Source: Home - Livemint.com | 13 Feb 2009 | 6:49 pm Telecom | No separate licenses needed for mobile VASNew Delhi: The Telecom Regulatory Authority of India (Trai) said no separate category of licence or registration is required for the value added services (VAS), a move that will boost the growth of mobile value-added services industry in the country. In its ‘Recommendations on Growth of Value Added Services and Regulatory Issues´, Trai said there is need for uniformity in various licences and amendment of various access service licence agreements to pave way for the growth of VAS, particularly in mobile 2G/3G and next generation network environment. “The authority has not recommended any separate category of licence or registration for value added services,” it added. —PTI Source: Tech News - Livemint.com | 13 Feb 2009 | 6:23 pm Hiranandani keeps his UK firm at arm’s length Mumbai: Mumbai-based property developer Niranjan Hiranandani has distanced himself from his London-listed Hirco Plc. after key shareholders rejected a merger with its holding companies, a top executive said.  Shareholder rejection: Real estate developer Niranjan Hiranandani’s merger plan ran into trouble when two investors in Hirco Plc., US-based QVT Financial and Laxey Partners, urged shareholders to vote against it. Abhijit Bhatlekar / Mint This puts at risk the future of the UK firm—the investment vehicle for India’s largest residential builder—as it depends on Hiranandani for its projects. Nearly all the money raised from its public offering three years ago has been invested in two projects in India. A merger would have given Hiranandani 50% stake in the combined entity, up from less than 3% in the UK firm now. The chairman of Hirco Plc. and promoter of Hirco group is sewing up realty and development projects in India without including the UK firm. The group includes the unlisted holding firms Hirco Developments Pvt. Ltd and Hiranandani Investment Co. Hirco Plc. was listed on the London Stock Exchange’s (LSE) Alternative Investment Market in 2006, mainly to raise funds for investing in projects sourced by the group. Of the £360 million (Rs2,523 crore now) it raised from the public offer at 5 pence a share, it has invested £350.8 million, or 97%, in two projects in India and has not been able to raise more money in a slowing market. Hirco Plc. ended on Thursday at 70 pence on LSE. Globally, the realty sector has taken a whipping—from the mortgage crisis that started in the US and later the liquidity crunch and slowdown. The two projects are a commercial and residential township at Sriperumbudur near Chennai and a special economic zone-cum-township at Panvel near Mumbai. Hirco Plc. owns 100% of the preferred shares in these and will get the agreed returns. The Hirco group’s investment in these, in which it owns 100% of the common shares, was in the form of land. “We are building special economic zones, commercial and residential properties in Ahmedabad and are planning to build similar projects in Pune and Nashik,” said Aniruddha Joshi, executive director, Hirco group, which holds about 6,000 acres across India. “It is still at a planning stage and we will be able to raise money...we have lines of credit from different lenders.” Besides, homebuyers pay up to 20% upfront, he added. The UK firm is guaranteed 12% interest on its investments in these projects, first right on repayment of principal amount invested and 40% right on the remaining profit. While there is no estimate of potential profits, realty consultants Jones Lang LaSalle, in an assessment done on the group’s request, said the value of the two townships had risen by 34.7% to £472.7 million as of September. Late January, the UK firm had said sales and average unit price at its projects continued to rise in the first quarter despite wider adverse market conditions, Reuters reported. The firm said it had sold 2.04 million sq. ft in Sriperumbudur at an average Rs4,192 per sq. ft as of 31 December, up from 1.84 million sq. ft at an average Rs4,073 in September. At Panvel, Hirco had sold 1.63 million sq. ft at an average Rs4,278 per sq. ft at end-2008. It had sold 1.56 million sq. ft at an average Rs4,214 three months earlier, Reuters said. Hiranandani’s merger plan ran into trouble when two investors in Hirco Plc.—US-based hedge funds QVT Financial Lp. and Laxey Partners Ltd—urged shareholders to vote against it, saying the proposal favoured the Hiranandanis and would be financially damaging for the firm. Laxey holds about 10% in Hirco Plc. and QVT, 5%. Laxey did not reply to an email sent on Tuesday. Joshi said the merger plan was meant “to transform Hirco from a passive investment vehicle to a fully integrated developer with direct control over the projects, direct control over the in-house expertise to design, develop, market and sell the assets”. The sudden fall in Hirco’s share price was another reason. Joshi said Hirco Plc. had the first right to invest in any Hiranandani project that needed foreign capital. But with only £9.2 million left, it doesn’t have enough funds. As per Indian law, foreign firms can invest only in projects involving at least 100 acres. “We would have renewed the first right of proposal agreement if the merger would have gone through,” Joshi said. Source: Home - Livemint.com | 13 Feb 2009 | 4:47 pm Reliance Infra to spend Rs700 crore on second buy-backMumbai: To boost investor sentiment and its sagging stock price, Reliance Infrastructure Ltd says it will spend Rs700 crore to repurchase shares, paying a maximum of Rs700 a share. The buy-back will start on 24 February and end on 16 April, the company told the Bombay Stock Exchange, or BSE, on Friday. Once the buy-back is complete, the Anil Ambani-controlled company will extinguish the shares, reducing the number of floating shares. This will push up its earnings per share, or EPS—a widely followed indicator of a firm’s performance—and may help raise the stock price. It is offering a 27% buy-back premium on each share on market price. The utility’s share price closed at Rs569.30, up 3.51%, on BSE, after climbing as much as 5.4%. The bellwether Sensex index rose 1.78%. The stock has declined 63% in the past year, compared with a 43% fall in the Sensex. This is the second buy-back offer since March last year, when the firm announced spending Rs800 crore to repurchase shares at Rs1,600 each. Analysts tracking the company were neither surprised nor upbeat about the latest buy-back offer and its likely influence on moving its share price. The earlier repurchase failed to boost stock prices. “When the first buy-back was announced, the global meltdown hadn’t happened and that was an extraneous factor. Infrastructure, as a theme play, was punished more severely (last year) as commodity prices and interest rates increased,” said chief executive and director Lalit Jalan in response to a question about how much of its purpose the company had achieved with its first buy-back and why it has underperformed the Sensex. “Hopefully, the sentiment will get a boost this time. With the number of outstanding shares going down, earnings per share will go up,” said Mohit Kansal, analyst with Mumbai-based brokerage KR Choksey Shares and Securities Pvt. Ltd, adding the first buy-back hadn’t served its purpose. The second repurchase comes a week after the first closed on 6 February. The company has set aside Rs2,000 crore for buy-backs, of which only Rs500 crore remains, it said. Jalan said funds for this had been set aside after “adequately looking after the financing of all the projects”. The company’s promoters also have the option to infuse Rs7,835 crore by mid-July through converting share warrants. “That would be a positive trigger, if it comes,” said Kansal. “Otherwise, the company would either have to delay its expansion plans, which will hurt investor sentiments further; or raise debt, which would distort its financials; or let its seven proposed subsidiaries raise money on their own.” He has a “buy” on the stock at a target price of Rs707, in excess of what the firm is offering in the buy-back. Earlier this month, the company, which changed its name from Reliance Energy Ltd in April, said it would spin off seven of its divisions, including road construction, real estate, power transmission and power distribution, into separate entities, with it as the umbrella company. The move is subject to regulatory approval. Bloomberg contributed to this story. Source: Home - Livemint.com | 13 Feb 2009 | 4:23 pm Satyam says regulator move to speed up sale processMUMBAI (Reuters) - Fraud-hit Satyam Computer Services said on Friday it would accelerate plans to find a suitor after India's market regulator amended its takeover rules, and the chairman of the outsourcing firm said new bidders were likely to emerge.Source: Reuters: Money News | 13 Feb 2009 | 3:38 pm
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