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No tweaking of FDI norms required: Kamal NathWhile there has been a lot of confusion over what shape the governments new foreign direct investment (FDI) norms will come out in, Commerce Minister Kamal Nath has said that the government does not feel the need to review the new norms at the moment.Source: Moneycontrol Top Headlines | 20 Feb 2009 | 5:11 pm Unitechpromoted fund UCP changes mgmt fee structureSanjay Chandra, MD, Unitech, said, Unitech Corporate Parks (UCP) AIMlisted fund promoted by Unitech has changed its management fee structure to Unitechs affiliate Nectrus Ltd. The fee amount getting deferred is a small figure of USD 2 million per year.Source: Moneycontrol Top Headlines | 20 Feb 2009 | 5:02 pm Stocks nearing Oct \'08 closing lowsAs markets slumped further, comparisons with previous lows are inevitable. On the Nifty, the index is still 68% away from October closing lows. However, if we take the BSE200 stocks, a quick analysis tells us that 80 stocks are trading below their October lows, 117 above their October lows and three stocks are trading flat.Source: Moneycontrol Top Headlines | 20 Feb 2009 | 3:43 pm Pharma, FMCG, telecom hiring throughout meltdown: Info EdgeSanjeev Bhikchandani, CEO, Info Edge, said there are six sectors pharma, healthcare, FMCG, education, telecom and insurance which have been hiring throughout the current meltdown. \"Excpet for insurance, all above mentioned sectors are recession proof.\"Source: Moneycontrol Top Headlines | 20 Feb 2009 | 3:33 pm Jubilant Organosys to buyback FCCBsShyam S Bhartia, CMD, Jubilant Organosys, said the company has taken a decision to buyback its FCCBs to capitalise on the opportunity available in the market. \"We will continue to do this to strengthen our balance sheet.\"Source: Moneycontrol Top Headlines | 20 Feb 2009 | 3:12 pm Unaware of developments in Satyam since 4 weeks: LTAM Naik, CMD, LT, said at present the company does not even know what the problems in Satyam are. Speaking on what his bid for Saytam will be, Naik said he does not know because a lot has changed in the past four weeks. They have lost lot of customers, some key employees have gone.Source: Moneycontrol Top Headlines | 20 Feb 2009 | 2:46 pm Kingfisher Air wants Oil Min to relax payment of duesKingfisher Airlines has written to the Oil Ministry seeking relaxation for payment of dues, reports CNBCTV18, quoting sources. Kingfisher has paid Rs 495 crore in outstanding dues to oil companies in three installments, sources said.Source: Moneycontrol Top Headlines | 20 Feb 2009 | 1:44 pm SBI likely to be exclusive booking agent for Nano - Economic Times
Source: Google News India - Business | 20 Feb 2009 | 1:41 pm Satyam suitors to get basic financial information: KarnikSatyam Computer on Friday, said they will get preliminary financial information from the company to take a call on bidding for a strategic stake.Source: Daily News & Analysis: Money News | 20 Feb 2009 | 1:41 pm Rupee falls by 11 paise to 49.72/74 a dollar - Business Standard
Source: Google News India - Business | 20 Feb 2009 | 1:38 pm Occupancy still at 3035% YoY: CinemaxRasesh Kanakia, Chairman, Cinemax India, said the global meltdown has not affected occupancy. Our occupancy still remains at 3035% yearonyear. Kanakia said the company has done around Rs 110 crore and Rs 11 crore of topline and bottomline respectively in the last three quarters.Source: Moneycontrol Top Headlines | 20 Feb 2009 | 1:35 pm Poverty hit Dalit couple want to be killedA 50-year-old Dalit man has urged the Uttar Pradesh authorities to kill him and his bedridden wife, saying they are not able to cope with poverty, officials said Friday.Source: IndiaeNews.com: Business News | 20 Feb 2009 | 1:34 pm Panchayat polls in Kashmir after general elections: OmarJammu and Kashmir Chief Minister Omar Abdullah announced Friday that elections to the panchayats or village councils in the state would be held immediately after the Lok Sabha polls this year.Source: IndiaeNews.com: Business News | 20 Feb 2009 | 1:34 pm India mulling stakes for foreign carriers: PatelThe government is examining a proposal to allow foreign carriers to pick up stakes in domestic airlines, which are facing a crisis on account of economic slowdown, Civil Aviation Minister Praful Patel said here Friday.Source: IndiaeNews.com: Business News | 20 Feb 2009 | 1:31 pm CBI registers case against Satyam's Raju, othersThe Central Bureau of Investigation (CBI) Friday registered a case against disgraced Satyam founder B. Ramalinga Raju and other company officials in connection with the Rs.70 billion fraud and constituted a team of top CBI officials and chartered accountants to go into the scam.Source: IndiaeNews.com: Business News | 20 Feb 2009 | 1:30 pm Areva T&D to invest 4.5 bln rupees over 12 months - Reuters India
Source: Google News India - Business | 20 Feb 2009 | 1:29 pm India mulling stakes for foreign carriers: Patel - Hindu
Source: Google News India - Business | 20 Feb 2009 | 1:29 pm Court to hear bail petitions of Satyam accused on Feb. 24 - Hindu
Source: Google News India - Business | 20 Feb 2009 | 1:29 pm Stocks set to fall at open - CNNMoney.com
Source: Google News India - Business | 20 Feb 2009 | 1:22 pm SBI freezes new car, agri loan rates for one yearThe State Bank of India said it will freeze interest rates on new car loans at 10 per cent for a period of one year.Source: Daily News & Analysis: Money News | 20 Feb 2009 | 1:16 pm Gold ETFs spark investors' fancy as prices surgeNEW DELHI (Reuters) - India's gold exchange-traded funds (ETFs) are witnessing a sharp spurt in volumes as investors, hurt by steep losses in stock portfolios, bet on the yellow metal trading near record levels.Source: Reuters: Money News | 20 Feb 2009 | 1:12 pm Areva T&D to invest 4.5 bln rupees over 12 monthsMUMBAI (Reuters) - Areva T&D India Ltd plans to invest an additional 4.5 billion rupees in a year to complete ongoing projects, a senior official said on Friday.Source: Reuters: Money News | 20 Feb 2009 | 1:11 pm India gold hits new record high on safe-haven buyingMUMBAI (Reuters) - India's gold futures continued their record-breaking spree on Friday evening as investors poured money into the safe-haven asset due to a deepening global recession, analysts said.Source: Reuters: Money News | 20 Feb 2009 | 1:05 pm No new tax proposed in Kerala budgetNo fresh tax has been proposed in the fourth budget that was presented by Kerala Finance Minister Thomas Isaac in the assembly Friday.Source: IndiaeNews.com: Business News | 20 Feb 2009 | 1:04 pm India will protect jobs even if it means pay cuts: MukherjeeExternal Affairs Minister Pranab Mukherjee Friday urged the people of India to share the pain of economic crisis, and said the interests of labour force would be protected even if it meant slight cuts in wages and salaries.Source: IndiaeNews.com: Business News | 20 Feb 2009 | 1:04 pm Centre to reimburse northeastern states' burden of pay hikeThe central government is likely to compensate the northeastern states for the whopping financial burden due to implementation of the recommendations of the Sixth Pay Commission, officials said here Friday.Source: IndiaeNews.com: Business News | 20 Feb 2009 | 1:04 pm CBI registers case against Raju, others in Satyam scamThe Central Bureau of Investigation (CBI) Friday registered a case against disgraced Satyam founder B. Ramalinga Raju for the Rs.70 billion fraud and constituted a multi-disciplinary investigation team (MDIT) for the probe.Source: IndiaeNews.com: Business News | 20 Feb 2009 | 1:02 pm Southern Air Command's area of responsibility increasesThe Indian Air Force (IAF) has decided to shift its Maritime Air Operations (MAO) headquarters to the Southern Air Command (SAC) based here to enable quicker response to emergencies in the Indian Ocean region, it was announced here Friday.Source: IndiaeNews.com: Business News | 20 Feb 2009 | 1:00 pm Call writing seizes upside, put writing at 2600 may hold Nifty - Economic Times
Source: Google News India - Business | 20 Feb 2009 | 12:59 pm CBI registers case against Raju, others in Satyam scamDescribing the scam as "unique," a CBI spokesman said the case has been registered against Raju, the company's directors and its auditor.Source: Daily News & Analysis: Money News | 20 Feb 2009 | 12:52 pm SBI freezes new car, agri loan rates for 1 yearMumbai: The country’s largest public sector lender, State Bank of India, or SBI, on Friday said it will freeze interest rates on new car loans at 10% for a period of one year. The bank also slashed lending rate on credit to farmers against cold storage and warehouse receipts to 8%, a bank release issued here said. The new rates will be applicable to all customers availing loans between 23 February and 31 May 2009, the bank said. After the freeze-period, the rates will be reset at the applicable card rate contracted as on the date of sanction under the respective schemes, the bank said. Source: LatestNews-Home - Livemint.com | 20 Feb 2009 | 12:50 pm Satyam suitors to get basic financial information: Karnik - Hindu
Source: Google News India - Business | 20 Feb 2009 | 12:48 pm Tata Group says needs to rationalise operationsMUMBAI (Reuters) - India's sprawling Tata Group will rationalise its operations and its 96 companies have to find a way to sustain themselves through a once-in-a-lifetime downturn, chairman Ratan Tata said in an interview shown on Friday.Source: Reuters: Money News | 20 Feb 2009 | 12:42 pm India gold hits new record high on safe-haven buying - Reuters India
Source: Google News India - Business | 20 Feb 2009 | 12:42 pm Economic slowdown good opportunity for banks to occupy market: Montek - Economic Times
Source: Google News India - Business | 20 Feb 2009 | 12:37 pm Take technology to farmers, government tells corporatesWith food security remaining a prime concern, the government Friday said it was looking at more cooperation and involvement of the corporate sector and non-governmental organisations (NGOs) to take technology to farmers.Source: IndiaeNews.com: Business News | 20 Feb 2009 | 12:34 pm US stocks slump to six-year low !US stocks closed at six-year lows after data showed 5mn people collecting unemployment benefits.Source: Zee News : Business | 20 Feb 2009 | 12:31 pm 627,000 new jobless claims in US!The no. of unemployed workers getting unemployment benefits jumped to all-time high near 5mn earlier this month, while new jobless claims remain above 600,000.Source: Zee News : Business | 20 Feb 2009 | 12:31 pm Citibank launches Platinum Select Credit card!Citibank on Thursday launched Citibank Platinum Select Credit Card that offers a set of special offerings.Source: Zee News : Business | 20 Feb 2009 | 12:31 pm UBS refuses US demand for info on clients!UBS refuses US govt demand to provide info on 52,000 US clients, requested in a lawsuit filed earlier in the day as part of a tax fraud investigation.Source: Zee News : Business | 20 Feb 2009 | 12:31 pm Indians are highest earners in the US!India-born US residents, numbering over 1.5mn, are best educated among all foreign born communities in US and are also the highest earners in America.Source: Zee News : Business | 20 Feb 2009 | 12:31 pm Sensex dips below 9,000 level!Sensex fell by over 195 pts in early trade on heavy selling taking cues from melting global mkts.Source: Zee News : Business | 20 Feb 2009 | 12:31 pm Rupee falls 2% this week, outlook bearishMumbai: As grim global economic outlook triggered concerns of capital outflows from the domestic stock markets, the rupee slipped on Friday to end the week 2% lower against the dollar, its worst performance in nearly two months. The partially convertible rupee ended at Rs49.72/74 per dollar on Friday, 0.2% weaker than its previous close of Rs49.62/63. It was the unit’s poorest week since the end of December. “Customer selling around Rs49.90 per dollar levels capped the dollar/rupee’s fall but the medium term outlook for the rupee continues to be bearish and it is only a matter of time before it tests 50.50,” said a senior dealer at a private bank. Volumes were lower due to a strike by Reserve Bank of India (RBI) employees and ahead of a market holiday on Monday, with most traders in state-run banks preferring to stay on the sidelines rather than take aggressive positions. The BSE Sensex fell 2.2% on Friday to their lowest close in a month, joining a global market rout. Foreign investors have sold Indian shares worth a net $1.35 billion this year after withdrawing more than $13 billion in 2008. The outflows have piled pressure on the rupee, which has dropped 2.1% this year after falling 19.1% in 2008. Some private economists expect the rupee to decline to a lifetime low of 54 by the end of 2009 as foreign direct investment and remittances fall sharply. “While that may be overly pessimistic, the fall in FDI should certainly be spectacular, for global reasons if not the general deterioration in the security/political/corporate governance environment in India,” Richard Yetsenga, a forex strategist at HSBC said in a recent note. The dollar and the yen rose on Friday as growing global economic and banking sector woes drove investors into currencies seen as safe havens, while grim euro zone data added to negative sentiment on the euro. One-month offshore non-deliverable forward contracts were quoting at Rs50.10/17 to a dollar, weaker than the onshore spot rate, indicating a bearish near-term outlook. But traders said the central bank may sell dollars aggressively above Rs50 per dollar to prevent a sharp slide. Data showed, foreign exchange reserves for the week ended 13 February declined to $249.692 billion from $251.532 billion a week earlier. Source: Home - Livemint.com | 20 Feb 2009 | 12:30 pm Satyam case: SFIO finds irregularities in land dealsNew Delhi: The investigation wing of the Corporate Affairs Ministry, Serious Fraud Investigation Office (SFIO), has found serious irregularities in the land deals of entities linked with Satyam Computer Services Ltd and firms promoted by the kin of the former chairman of the IT company, B Ramalinga Raju. “(The) probe so far shows how these companies had understated their land sale prices on the books. The SFIO has details that companies sold land for 20-30 times higher than the prices shown ...,” a senior ministry official told PTI. Following the disclosure of the Satyam scam, the Corporate Affairs Ministry asked the SFIO to probe the books of accounts of 325 companies including those connected with Satyam and family members of B Ramalinga Raju. For instance, the official said in the accounts of a company named Swarnamukhi Green Field Pvt Ltd, the cost of land has been shown as Rs15,00,000 but it was sold for Rs3.5 crore. Similarly, for Himagiri Green Fields Pvt Ltd, land bought for just Rs17,00,000 was sold at Rs8 crore. Another company Himagiri Biotech Green Field Ltd bought land for Rs17,00,000 but sold it for Rs8 crore to raise funds, which got diverted. Source: LatestNews-Home - Livemint.com | 20 Feb 2009 | 12:11 pm Jobs must be saved even if it means pay cuts: PranabNew Delhi: The finance minister said on Friday that workers may have to accept pay cuts if necessary to protect their jobs as senior officials called for more action to support the economy during the global downturn. Weeks ahead of a general election at which the state of the economy will feature prominently, finance minister Pranab Mukherjee said jobs must be saved. The global slump has pushed economic growth in India down to a six-year low. Factory output fell in December by 2% from a year earlier while government officials predict exports dropped 22% in January from a year earlier, raising the prospect of more job losses. A labour ministry survey estimated that the small-business sector, which accounts for more than 60% of economic activity, lost about half a million jobs in the December quarter. “The government has been conscious of the magnitude of this still deepening crisis and has been taking steps to mitigate its impact on the Indian society,” Mukherjee told a labour conference in New Delhi. “Jobs must be protected even if it means some reduction in compensation at various levels.”  Finance minister Pranab Mukherjee and deputy chairman of Planning Commission Montek Singh Ahluwalia during the 42nd session of Indian Labour Conference in New Delhi on Friday. Kamal Singh / PTI According to a lobby group, the Federation of Indian Export Organisations, exporting firms may end up cutting 10 million jobs in the year to March in the face of sluggish growth in exports, which like elsewhere in Asia are falling rapidly. Construction firms and exporters have been worst hit by tight credit and deepening recessions in major markets and they have slashed jobs and deferred new projects despite a series of government incentive schemes and extra spending commitments. India has rolled out tax breaks and subsidies to cover interest payments to help exporters and cut factory gate duties but trade secretary GK Pillai said on Thursday no new trade incentives were planned for the fiscal year which ends in March. Growth in Asia’s third-largest economy is expected to slow to a six-year low of 7.1% in 2008-09, the fiscal year that ends on 31 March, well below the 9% rates seen in the last three years. More spending, rate cuts? The deputy chairman of India’s Planning Commission, Montek Singh Ahluwalia, said the country was witnessing a decline in exports and investment demand and the central bank needed to ease monetary policy further to provide support to government efforts to revive growth. “It (the government) has to have monetary and credit policy which is geared to the objective of ensuring that there is revival of growth back to its normal level,” said Ahluwalia, speaking at the same conference. Separately, Ahluwalia told the NDTV television channel that the central bank could cut the cash reserve requirement (CRR), the proportion of funds banks must keep with it, and interest rates to add liquidity and help revive growth. “That is certainly an instrument they can use, both CRR and interest rates,” he said in the interview, a transcript of which was published in the Indian Express on Friday. Since October, the Reserve Bank of India has cut its key lending rate by 350 basis points to 5.5%. The CRR has dropped from 9% in August to 5.0%. On Wednesday, RBI governor Duvvuri Subbarao said in Tokyo there was room to cut rates, but the question was when and by how much. He, however, said a fall in inflation does not automatically mean rates will drop. Annual wholesale price inflation, India’s most widely watched price measure, has plummeted from a near 13% in early August to below 4% in the first week of February, helped by cuts to state-set fuel prices and cheaper commodities. Higher spending has prompted the federal government to reset its fiscal deficit target to 6% of gross domestic product for the year to March, more than double the 2.5% estimated in last year’s budget. Source: Home - Livemint.com | 20 Feb 2009 | 12:05 pm Only 50% plus Satyam sale is strategic: ExpertsSharing his view on the Satyam bid issue, Sandeep Parekh Visiting Associate Faculty at the Indian Institute of Management, Ahmedabad said there has to be some decisiveness in the situation and 26% stake doesn\'t give that.Source: Moneycontrol Top Headlines | 20 Feb 2009 | 11:58 am CBI registers case against Raju, others in Satyam scamNew Delhi: The CBI on Friday registered a case against Satyam’s tainted founder B Ramalinga Raju and others for their alleged involvement in what it called a unique accounting fraud at the IT company, and formed a 16-member team to complete the probe at the earliest. Describing the scam as “unique,” a CBI spokesman said the case has been registered against Raju, the company’s erstwhile directors and its auditor under various sections of the Indian Penal Code relating to forgery and cheating. CBI has constituted a Multi-disciplinary Investigation Team (MDIT) headed by Deputy Inspector General V V Lakshmi Narayana which will be headquartered in Hyderabad to undertake a thorough probe, the spokesman said. The case against them was registered under 120-B (criminal conspiracy), 409 (criminal breach of trust), 420 (cheating), 467 and 468 (forgery), 471 (using forged document as genuine), 477-A (falsification of accounts). Superintendent of Police of the CBI at Hyderabad will be the Chief Investigating Officer. Apart from these officers, MDIT will consist of a Superintendent of Police, Bank Securities and Fraud Cell (BSFC) and 11 other officers of CBI. An Assistant General Manager of the SBI (CBI’s technical officer), will also be part of this team, the spokesman said. Besides Raju, his brother Rama Raju, Chief Financial Officer Srinivas Vadlamani, G Gopalakrishnan and Srinivas Talluri have been arrested in the case. The case was handed over to the CBI on 18 February by the Centre after a request for the same was received from the Andhra Pradesh government. The CBI spokesman said while five experienced Chartered Accountants have been nominated by the Institute of Chartered Accountants of India (ICAI), two experts from the Institute of Cost and Works Accountants of India (ICWAI) will also form part of this team. Cabinet Secretariat has promised to provide “necessary support” of the Departments, Ministries and Institutions like Sebi, Income Tax, Serious Fraud Investigation Office, Registrar of Companies, Enforcement Directorate and the Revenue Department of Andhra Pradesh government. These organisations are already looking into various aspects of the scam. The Andhra Pradesh High Court has also directed the state government to provide all logistics and other necessary assistance to CBI for this case. As the case is transferred to the CBI, the agency can now avail up to nine days of custody of Raju, founder of the Hyderabad-based IT major, who has been interrogated only for five days since his arrest on 10 January. On 7 January, Raju confessed to the Rs 7,800 crore fraud and accepted that he had cooked company’s account books and inflated profits over the last several years. Source: Home - Livemint.com | 20 Feb 2009 | 11:48 am Doubt Maytas can deliver contracts: EAS SarmaMaytas lenders cheered the idea of IFCI and ILFS in Matas\' new board. However, Ajit Gulabchand, CMD, HCC said magnitude of Maytas\' liabilities cannot be determined. Meanwhile, EAS Sarma, Former SecretaryEconomic Affairs said he is doubtful if Maytas can execute projects and deliver on existing contracts.Source: Moneycontrol Top Headlines | 20 Feb 2009 | 11:40 am SBI to be sole booking agent for Tata NanoKolkata: Country’s largest lender SBI on Friday said it has been appointed as the sole booking agent for the world’s least expensive car, Nano, from the stable of Tatas. “SBI has been selected as the sole booking agent for Nano,” SBI chief general manager (Bengal Circle) J.K. Sinha said. He, however, declined to comment on the details of the booking process for the much-awaited car, saying “details will be announced in the next 15 days”. When contacted, a Tata Motors spokesperson said, “It is premature for Tata Motors to make any comments. The company will make appropriate announcements at the appropriate time.” The Rs1 lakh Nano has captured the imagination of the people ever since its unveiling in the Auto Expo in New Delhi in 2008. The company had set a deadline of launching the car in the last quarter of this fiscal after it had to relocate from the proposed manufacturing plant at Singur in West Bengal to Sanand in Gujarat due to protests over land acquisition led by Trinamool Congress. Originally, Tata Motors had planned to launch Nano by Durga Puja last year itself. But now the car will be rolled out from the company’s facilities at Pantnagar and Pune in limited quantities. Source: LatestNews-Home - Livemint.com | 20 Feb 2009 | 11:30 am No bailout for airlines; FDI an option: PatelMumbai: Civil Aviation Minister, Praful Patel on Friday ruled out any bailout package at the present juncture to domestic private air carriers but felt FDI could be one of the options to meet funding requirements. “I don’t think that at this stage any direct financial concessions or assistance is possible (to domestic private air carriers)...FDI could be one of the options,” Patel said at a function here. However, Patel made it clear the government has not taken any final decision in allowing FDI in domestic private airlines. “No decision has been taken on FDI (in domestic airlines). The proposal is still under examination,” Patel said. The government had provided some relief to domestic airlines when ATF prices had sky-rocketed, Patel said, adding “it would not be possible now.” Patel said the government will come down heavily if there was any cartelisation on air fares. The government was examining the proposal of the Mumbai International Airport Limited (MIAL) for levying airport development fee (ADF), Patel said. MIAL has proposed that it may be allowed to levy Rs350 per domestic passenger and Rs1,300 per international passenger to meet its funding requirements. Source: LatestNews-Home - Livemint.com | 20 Feb 2009 | 11:27 am India to fight protectionism, wants Doha deadlineNEW DELHI (Reuters) - India is worried at growing signs of protectionism in the United States and will oppose such moves, and wants to close global trade talks by December, top officials said on Friday.Source: Reuters: Money News | 20 Feb 2009 | 11:22 am BSE Sensex posts biggest weekly fall since OctMUMBAI (Reuters) - The BSE Sensex fell 2.2 percent on Friday to its lowest close in a month, joining a global market slide after grim U.S. economic data indicated a deeper recession that would hurt world economies.Source: Reuters: Money News | 20 Feb 2009 | 11:18 am 5 lakh lost jobs in September-December 2008: GovtNew Delhi: The government on Friday said that 5 lakh people lost jobs during the four-month period ended December 2008 on account of economic slowdown in sectors including textiles, automobile and information technology. “The total employment in all the sectors covered by the survey (conducted by the Labour Ministry) went down from 1.62 crore during September 2008 to 1.57 crore during December 2008, thus resulting in job losses of about half a million people,” Corporate Affairs Minister Prem Chand Gupta said in a written reply in the Lok Sabha. The assessment of job losses has been based on a quick sample survey by the Labour Bureau of the Labour and Employment Ministry. The survey covered seven sectors including mines, textiles, metals, gems and jewellery, automobile, transport and IT/BPO. Recalling the fiscal steps taken by the government to improve the situation, Gupta said the measures included “two packages announced on 7 December, 2008, and 2 January, 2009, (respectively) to provide fiscal stimulus” to the economy. The initiatives taken by the government, Gupta added, were aimed at providing tax relief and increasing expenditure on public projects to create employment and public assets. As part of the first stimulus package, the government slashed excise duty by 4% on items other than petroleum goods. Impacted by global financial meltdown, the economic growth rate in the current fiscal is expected to moderate to 7.1% from 9% in the previous fiscal. Among the worst-hit sectors are exports, which started shrinking in October after a gap of seven years. Industrial production too moved into the negative zone during October and according to the latest data, the output during December declined by 2%. Source: Home - Livemint.com | 20 Feb 2009 | 11:13 am Close: Sensex ends below 9k mark, tumbles by 2%New Delhi: Markets remained under pressure through the day on Friday as weak cues from world markets reflected. Investors were hesitant to make fresh investments ahead of the long weekend, thus dragging the Bombay Stock Exchange benchmark Sensex to end 2.21% down. Negative sentiments persisted as grim economic data from US stating the number of enrolled unemployed to have reached 5 million was declared. Also Fear of US financial system being nationalized extended pressure to the domestic index. All sectoral indices traded in red with Banking stocks battered the most, losing over 3%. Other losers from significant indices were IT, metal, oil and gas and technology. Sensex began the day in negative territory as Dow Jones hit its 6-year low overnight. Despite lingering expectations of rate cuts mentioned by the Reserve Bank governor, markets continued to be bearish. The 30-share BSE index fell by 199.42 points to close at 8,843.21 and 50-share NSE Nifty ended at 2.736.45 or 52.90 points down. With financial institutions world over worrying about Obama administration doing away with their bad asset strategy, on home grounds ICICI Bank topped the losers pack on the BSE index falling by 7.07% to Rs335.95. Reliance companies suffered considerable losses with Reliance Communication down by 4.55% to Rs155.30, Reliance Infra by 4.55% to Rs155.30 and Reliance industries by 3.10% to Rs1,253.55. Among the losers in the IT segment TCS lost by 3.23% to Rs473.95, Infosys Technologies by 2.46% to Rs1,178.45 and Wipro by 2.29% to Rs215.30. Larsen & Toubro fell by 2.83% to Rs622.50 after they announced that they will decide on bidding for Satyam after evaluating the Company Law Board’s order on the auction process. Asian markets also followed a downtrend with Japan’s Nikkei falling by 1.6% as bank shares slipped and Hong Kong’s Hang Seng fell by 2.5% with HSBC sinking to its lowest in 10 years. Source: Home - Livemint.com | 20 Feb 2009 | 11:09 am Jobs must be protected even if it entails salary cut: PranabPranab Mukherjee said the the government is making all out efforts to ensure the flow of credit to boost trade and investment.Source: Daily News & Analysis: Money News | 20 Feb 2009 | 11:06 am Ford plans to add 1000 employees this yearChennai: Ford India, a 100% subsidiary of Ford Motor Company, USA, on Friday said it plans to add 1,000 more employees to its India operations this year. The move will a part of the company’s plan to attract best talents in the industry. “This will be in addition to the 6,000 staff across various levels in the country,” Ford India president and managing director Michael Boneham said. On the economic downturn, he said one has to look for solutions based on corporate intelligence. This was the right time to ‘grab those intellectuals’, he said, adding the secret to a company’s success in uncertain times is its people. Boneham was here today to inaugurate the annual convention on ‘Navigating Uncertain Times’, organised by the Madras Management Association. Source: Home - Livemint.com | 20 Feb 2009 | 11:04 am 28 killed in suicide attack in PakistanIslamabad: At least 28 people were killed and nearly 160 injured on Friday when a suicide bomber blew himself up in the funeral procession of a Shia cleric in the northwestern Pakistani city of Dera Ismail Khan, sparking angry protests which prompted authorities to impose curfew. The suicide bomber struck the 1,500-strong funeral procession of cleric Sher Zaman, who was killed by unidentified gunmen on Thursday and the blast created mayhem. The city, located close to the Taliban-infested Waziristan district, has been the scene of rising sectarian violence with at least six attacks reported in the past few months. District police chief Mohammad Iqbal told reporters that 28 people were killed and 157 injured in the powerful blast. Though the procession had security cover, the bomber emerged from a crowded bus terminal on the route of the procession and blew himself up, he said. No group claimed responsibility for the blast. Officials said the attack could be linked to sectarian rivalries. The attack sparked angry protests by some of the 1,500 people who were in the procession. They went on the rampage, firing in the air and burning a bus and several other vehicles, forcing the authorities to clamp curfew on the town and call military forces for assistance. Witnesses said the suicide bomber was aged between 15 and 17 years and had a beard and his body was later found torn apart. Relations between Pakistan’s Sunni majority and Shia are under growing strain with a sharp rise in attacks on the minority community, ever since the Taliban and Al-Qaeda took a major toe hold in most of the restive NWFP areas bordering Afghanistan. The protesters, who claimed authorities had not made adequate security arrangements, stoned government offices and security forces, torched and ransacked shops, burnt buses and set up road blocks in the city. They also damaged a police check post, pelted stones at cars on the roads and snatched cameras from television crews that were covering the incident. “The situation is under control and curfew will remain in force till tomorrow,” Iqbal said. There were also reports that staff at a hospital, where the injured were taken, fled on seeing a group of angry protesters. Some of the seriously injured persons were taken to hospitals in Punjab province and Islamabad. Friday’s attack was similar to another one in Dera Ismail Khan in November 2008, when 10 people were killed and over 30 injured when a suicide bomber struck the funeral of a Shia elder. Source: LatestNews-Home - Livemint.com | 20 Feb 2009 | 10:54 am 627,000 new jobless claims in USWashington: The number of unemployed workers receiving unemployment benefits jumped to an all-time high near 5 million earlier this month, while new jobless claims remain well above 600,000. Both figures were worse than expected and new projections from the Federal Reserve show unemployment rising for the rest of this year. The Labour Department reported on Friday that the number of people receiving regular unemployment benefits edged up to 4.99 million, marking the fourth straight week those receiving benefits have been at a record level. The continuing claims figure underscores the difficulty people are having in this recession finding another job, which means they are forced to receive benefits for a longer period. An additional 1.5 million people are receiving benefits under an extended unemployment compensation program approved by Congress last year, bringing the total number of people receiving unemployment benefits to 6.54 million for the week ending 7 February. New applications for unemployment benefits totalled 627,000 last week, the same as the previous week, according to the department. But that was still more than the 620,000 claims economists expected. It also remained near the 631,000 claims filed three weeks ago, which was the highest tally since October 1982, when the economy was emerging from a steep recession, though the labour force has grown by about half since then. Source: LatestNews-Home - Livemint.com | 20 Feb 2009 | 10:32 am Japan turns to ‘work-sharing’ to avoid layoffsHirakata: Yasuo Igarashi spends a lot of time these days on the jungle gym with his daughter, after his employer joined the growing ranks of Japanese companies adopting “work-sharing” to ride out the global slump. Common in parts of Europe, work-sharing means slashing employees’ pay and hours instead of firing people outright. Two or three people might share what previously was one person’s job. The idea is that employees are required to share the pain of coping with hard times while everyone gets to keep their jobs — even if they’re paid less. Work-sharing is the latest buzzword in Japan Inc. Proponents say it’s a good way to avoid American-style layoffs in a society that has long fostered lifetime employment. Toyota Motor Corp., Mazda Motor Corp., Toshiba Corp. and Fujitsu Inc., have all taken up some kind of work-sharing. Nissan Motor Co. and others are considering it. Although critics say it’s merely a fancy way to disguise wage cuts, the practice is winning powerful supporters here, including Fujio Mitarai, the head of the major business lobby Keidanren. The government is now considering earmarking public money for companies that take up work-sharing to curb surging joblessness as the world’s second-largest economy slides into what authorities are calling Japan’s worst recession since World War II. Companies big and small are expecting losses or drastically dwindling profits. Thousands of job cuts have been announced in recent weeks. At ASKK Ltd., a precision machinery maker in Hirakata, central Japan, with 50 employees, that counts Panasonic Corp., Sharp Corp. and Toyota affiliates among its clients, no one has lost their job. But Igarashi, a 30-year-old employee there, says his monthly pay has dropped by about ¥60,000 ($640) from the ¥270,000 ($2,900) he earned before work-sharing kicked in earlier this year. Like many Japanese, Igarashi used to work six days a week and racked up a couple of hours overtime every day. Now he works only four days a week. “It can’t be helped,” he said with a smile and a shrug as he toiled by his whirring machine. “I try to find things to do that don’t cost money.” Igarashi has cut back on buying new clothes, and his wife looks for discount coupons for groceries. On the upside, he spends more time with his family, including going to the playground with his 3-year-old daughter. A handful of Japanese companies experimented with work-sharing during a slowdown a decade ago, but this time more are adopting the practice than ever before as a way to survive the far more serious recession. Work-sharing is catching on here for cultural, legal and practical reasons. Many Japanese companies maintain the tradition of lifetime employment so work-sharing is a way to avoid firing regular workers. So far, most of the layoffs have involved contract workers, whose use became legal in recent years to skirt the regulations protecting full-time, salaried workers. Labor laws tend to defend lifetime employment, usually requiring companies to provide hefty severance packages or risk facing lawsuits. If a company is in bankruptcy or losing money, it becomes easier legally to lay off workers. At the same time, work-sharing allows companies to keep trained workers — and bring them back up to full-time quickly, once a recovery comes. Work-sharing is routine in nations such as Germany and Switzerland, where the government provides unemployment benefits to make up for the income fall from lost hours, said Jenny Hunt, economics professor at McGill University in Montreal, Canada. She said the practice is unlikely to be popular in the US, where companies prefer to “concentrate the misery in a few people,” and simply reduce workers. “The income loss is spread over more people, and fewer people suffer the depression associated with unemployment,” Hunt said. “The economic advantage is that firms retain their workers who are experienced on the job.” Work-sharing is taking various forms in Japan, and some companies aren’t even calling it that. At Tourism Essentials Tokyo, a job-referral company, two flight attendants sent to an airline were asked to share one job, and one person’s pay, to avoid one of them getting fired. At Fujitsu’s computer chip unit, the shifts at the 24-hour-running plants were increased from two shifts of 12 hours each to three 8-hour shifts so each worker had their hours and pay reduced by a third. At auto plants across Japan, including Suzuki Motor Corp. and Mazda, assembly lines are grinding to a halt on some days, resulting in a type of work-sharing. Toyota Motor Corp. has announced it will carry out work-sharing at its US plants but has not expanded that to Japan. A recent survey by the Yomiuri nationally circulated newspaper found about half of its respondents, a nationwide sample of 1,077 people, support the idea of work-sharing, although they also expressed fears about lower pay. Work-sharing is also finding acceptance in nearby South Korea. A group of labor, management, civic groups and the government to tackle the financial crisis is preparing to soon announce measures that will include work-sharing as a key element, said Kim Soo-gon, a Ministry of Labor official. The government plans subsidies for companies that maintain employment by sending workers on paid vacations and training programs, he said. Work-sharing has created some problems, says Sadao Nagakura, an executive at ASKK, the precision equipment maker. Accustomed to working long hours, some employees found that cutting back undermined their morale. Another obstacle was that wives of male employees complained that they didn’t want their spouses at home, he said. Side jobs are allowed, he said, and at least one worker has already starting working at a convenience store on Saturdays to supplement his income. Nagakura, who has made a point of ending his work day at 3 p.m. lately, sees work-sharing as the best way to cope with a drop in orders that has erased about two-thirds of ASKK’s profit over the last year. “There’s no work for them to do even if they show up,” he said. “I tell them to go on walks with their wives, holding hands.” But Nagakura also sees the downturn as an economic opportunity to get ahead. He expects most rivals to go bankrupt in the next year or two before a recovery comes while his company rides out the recession in good shape. “We are going to survive, and we are going to win,” he said. Source: LatestNews-Home - Livemint.com | 20 Feb 2009 | 10:24 am Govt mulling foreign carriers to buy stakesMUMBAI (Reuters) - The government is studying a proposal to allow foreign carriers to buy stakes in domestic airlines, the civil aviation minister said on Friday, to help companies facing a cash crunch.Source: Reuters: Money News | 20 Feb 2009 | 10:13 am India mulling foreign carriers to buy stakes in domestic airlinesMumbai: The Indian government is studying a proposal to allow foreign carriers to buy stakes in domestic airlines, the civil aviation minister said on Friday, to help companies facing a cash crunch. “The consultation process is still on and we can’t give a time line for it,” Praful Patel said. Indian carriers can have foreign holdings of up to 49%, including portfolio and direct investment, but foreign airlines are not allowed to invest. A global credit crunch has made fund raising difficult for Indian carriers and analysts have forecast them to collectively post losses of Rs80 billion ($1.6 billion) for the financial year ending in March. “I don’t think at this point giving direct financial concessions or assistance is possible. Short of writing a cheque, anything which can be done in terms of policy measures, we will do,” Patel said. Kingfisher Airlines, controlled by Indian tycoon Vijay Mallya, has requested the government to let foreign airlines to pick up stakes of up to 25% in Indian carriers. “We would certainly want to help the industry,” Patel said, adding that allowing foreign direct investment by foreign carriers was an option under consideration of the government. The minister also said the government would take action if there was evidence of a cartel, adding that watchdog Monopolies and Restrictive Trade Practices Commission was investigating a fare increase by airlines last week. “Cartelisation will not be allowed and we will come down heavily on it,” Patel said. Civil aviation regulator Directorate General of Civil Aviation (DGCA) had written to the airlines on the matter, and some of them had replied, he said. “If there is an issue DGCA will take appropriate action.” Domestic carriers such as SpiceJet, Kingfisher Airlines, Jet Airways and Air-India have since rolled back the increase. Source: LatestNews-Home - Livemint.com | 20 Feb 2009 | 10:11 am GMR Holdings hikes stake in GMR Infra to 74.21%Mumbai: GMR Infrastructure on Friday said one of its its promoters, GMR Holdings Pvt, has hiked its stake to 74.21% with the purchase of shares worth Rs2.40 crore through open-market transaction. In a filing to the Bombay Stock Exchange, the company said that GMR Holdings has purchased over 3.05 lakh shares representing 0.017% for Rs2.40 crore. The promoter held 74.19% stake in the company before the transaction and now it holds 74.21% stake with over 135.12 crore shares. Shares of GMR Infrastructure were trading at Rs77.75, down 2.08% on the BSE. Source: Home - Livemint.com | 20 Feb 2009 | 10:09 am Signs of protectionism by US 'worrying,' says IndiaIndustry estimates suggest nearly 100,000 Indians were among the 163,000 that had applied for non-immigrant skilled workers visa (H1-B) in FY'09.Source: Daily News & Analysis: Money News | 20 Feb 2009 | 10:07 am Citigroup board to lose another memberNew York: Roberto Hernandez Ramirez, a member of Citigroup Inc’s board of directors and the chairman of its Mexican banking operations, said he will leave his post on the board, according to a regulatory filing. In letters to Vikram Pandit, Citi’s chief executive, and Richard Parsons, who is about to become the chairman of the board, Hernandez Ramirez said he would not seek re-election to the board of directors at the New York-based bank’s annual shareholders meeting in April. Hernandez Ramirez is the third board member to announce he will not stay on beyond his current term. Last month, Robert Rubin, a former Treasury Secretary who was a longtime Citigroup board member, and Win Bischoff, most recently chairman at Citigroup, both announced their retirement from the company. “There is a whole rebuild of the board going on right now,” said Alois Pirker, a senior analyst at Aite Group. “It’s not necessarily a surprise these announcements are coming in.” Pirker noted that wholesale changes on a company’s board are fairly normal when a new chairman is installed, as the new head of the board looks to fill out a team of directors that he is familiar with and trusts. With Citi having struggled amid the ongoing credit crisis, it could also be a sense that it is time for a change with older directors leaving the firm, Pirker said. Source: LatestNews-Home - Livemint.com | 20 Feb 2009 | 10:02 am GDP likely to grow by 7.1% in 2009-10: TendulkarMumbai: As forecast for this fiscal, India is likely to grow also by 7.1% in the next fiscal and the economy is likely to see a lower interest rate regime, a top economist said on Friday. “(The) Indian economy is likely to grow by around 7.1%... in 2009-10,” Prime Minister’s economic advisory council chairman Suresh Tendulkar said. The growth may be weak in the first half but it is likely to pick up in the second half of the next fiscal, Tendulkar said. “Moving ahead, the system is likely to see a lower interest rate regime,” he said. ‘Crisis of confidence’ in advanced economy has been quite serious, Tendulkar said, adding the asset quality in the Indian banking system may deteriorate owing to the global slowdown. However, well regulated Indian banking system is in a better shape as compared with that of other economies, he said. “The asset quality may deteriorate because of the current slowdown...but the Indian banking system is in a much better shape (to face the situation),” he added. Source: LatestNews-Home - Livemint.com | 20 Feb 2009 | 9:57 am Subramanian has sole responsibility for Subhiksha dues: EPFOChennai: Absolving all other directors from any personal liability for Subhiksha’s current period of default, the regional provident fund commissioner has asked the discount retailer’s MD R. Subramanian to immediately pay the entire due, totalling little less than Rs2 crore. “... it is found that most of the day-to-day functions were attended by R. Subramanian, managing director, even though ICICI Venture Ltd has substantial interest in the running of the establishment,” the commissioner noted after an enquiry into the providend fund default by crisis-hit Subhiksha. Click here to read more on Subhiksha Subhiksha has said that its 15,000 employees have not been paid since October last. “The specific personal responsibility or involvement of the nominee directors and independent directors is found not established. Accordingly, the nominee directors and the independent directors other than R. Subramanian are found not personally liable for the current period of default on the part of the establishment,” the commissioner stated. However, the financial responsibilities of the investors and bankers continue as per law, he added. The dues, which needs to be paid immediately by Subramanian works out to be around Rs1.76 crore, it added. For the past few months, Subhiksha has been in deep financial trouble and one of its major shareholders, ICICI Ventures, has approached the Registrar of Companies (RoC) for an investigation into the affairs of the company and also for an independent audit. The order quoted Subramanian as saying that as a measure of cost cutting, all the employees had agreed from June 2008 onwards to restrict their contributions to Rs6,500, which is the salary ceiling for the purpose of EPF & MP Act, 1952. Further, even though the salary has not been disbursed so far and only an advance is given to the employees, it is already decided to scale down the expenditure on bi-partite arrangement of paying contributions on a higher salary. Besides, ICICI Venture, along with some other shareholders that include an entity promoted by IT major Wipro chairman Azim Premji is also said to be opposing Subhiksha’s move to merge itself with Chennai-based firm Blue Green Constructions. The company said that it was unable to pay the salaries and arrears to its 15,000 employees since October 2008, but it has repaid a loan of Rs15 crore to one of its shareholders. While announcing that all its 1,600 stores would remain closed at least till May, the company, burdened under a huge debt, recently said that it immediately needs Rs300 crore. Commenting on the EPFO enquiry, the company has said that its MD R. Subramanian has offered the PF amount in his personal account “to be adjusted and treated as paid on behalf of the company towards part payment of the arrears and the request is being processed by the EPFO.” On reports that Subhikhsha has opted to repay a Rs15 crore loan to a shareholder despite not being able to pay staff salaries and arrears, the company said about “Rs14 crore was repaid during early January 2009 to a shareholder in part repayment of the lifeline granted by them in December 2008 and the company repaid this as it was contractually bound to do so as per its arrangement with the said shareholder.” The company said it was “committed to pay the arrears of salaries and understands the pain of the 15,000 employees who are unpaid since October 08 but that it was helpless in the matter of repayment of the said loan for the reason that the contract with the said shareholder provided no option to the company.” Source: Home - Livemint.com | 20 Feb 2009 | 9:16 am Govt must stimulate demand and credit, protect jobsNEW DELHI (Reuters) - The finance minister said on Friday that workers may have to accept pay cuts if necessary to protect their jobs as senior officials called for more action to support the economy during the global downturn.Source: Reuters: Money News | 20 Feb 2009 | 9:15 am Asian shares slump to 2009 low on economy fearsHong Kong: Asian stocks slumped on Friday to their lowest since early December, led by big losses in South Korea, as fears about the global economy and the financial sector led investors to shed riskier assets. In a tough week for global markets, the MSCI index of Asia-Pacific stocks outside Japan is headed for an 8% slump for the week - its worst since a 10% weekly drop in late November when the gauge touched five-year lows. The sell-off in US markets overnight following weak US employment data and fears of nationalisation of US banks spread into Asia, with European shares also set to track these losses, as investors shift to safer assets such as US Treasuries and the dollar. The tough markets indicate that a deluge of rescue packages - with measures ranging from increased spending in the United States to the outright buying of corporate debt in Japan - has yet to win over investors. The MSCI index of regional stocks outside Japan slumped 2.9% as of 12:35pm, after earlier hitting its lowest level since 2 December. The gauge is not far off from a low of 194.03 hit in late November. The latest fall comes after data on Thursday showed US workers drawing unemployment aid jumped to a record at nearly 5 million, suggesting the 13-month-old US recession is deepening. In another bad omen for Asian exporters that depend on the recovery of the world’s largest economy, US lender stocks hit 17-year lows on fears they would be nationalised, reflecting concerns about the stability of the financial sector. Other sources of concerns abound. Japan’s central bank said on Friday a deterioration in corporate profits had gathered pace, while investors also fret about the economic gloom gripping cash-strapped eastern Europe. South Korea, another country that has been hit hard by the crisis, on Friday saw its main KOSPI index slump 3.7%, to its lowest close in more than two month, while the won currency slid for a ninth consecutive session on fears domestic banks will struggle to access overseas capital markets. Japan’s Nikkei average fell 1.9% to its lowest close since 27 October, while the broad-based Topix index slumped 12 points to its lowest close since January 1984. Among steep decliners were financials such as South Korea’s Shinhan Financial Group. Exporters also fell, with Japan’s tyre maker Bridgestone Corp sliding 7.4% a day after forecasting a bigger-than-expected slide in profits this year Other Major Asian index in Australia, Hong Kong, Taiwan, India, and Singapore slid 1-3% each. Emerging market woesInvestors sought to avoid the volatility by targeting assets often prized for their liquidity and safety. US Treasuries gained during Asian trade, though inflows were limited by caution given a record $94 billion in US government debt will be sold next week. Benchmark 10-year notes rose 11/32 in price to yield 2.811%, down about 4 basis points from late US trade the previous day. The dollar jumped 1.6% to 1,504.9 won, bringing the South Korean currency to its lowest closing level since 24 November and within sight of an 11-year low. The dollar was broadly resilient against other currencies, benefitting from a rush to liquidity. The euro fell about 0.6% to $1.2580, though that was well off a three-month low around $1.2510 reached on Wednesday. Caution was also a key factor in the commodities market. Source: Home - Livemint.com | 20 Feb 2009 | 9:04 am Anglo American to cut 19,000 jobs after profits fallLondon: Mining group Anglo American Plc scrapped its 2008 dividend to conserve cash and said it will cut 19,000 jobs as it posted a 1% fall in profit, missing analysts’ forecasts. In Johannesburg, its shares tumbled 6.9% to 169.60 rand by 1:10pm underperforming a 3.6% fall in the blue-chip Top 40 index. Anglo shares have underperformed the UK mining index by 20% so far this year and closed in London on Thursday at 1,236 pence. The firm - the world’s dominant platinum producer and fourth-largest iron ore exporter - said it planned to cut 19,000 jobs by the end of the year. This represents about 10% of the total workforce of 190,000, based on figures on its website. “As we begin 2009, the economic outlook remains weak, with limited visibility and we are continuing to experience volatility and downward pressure on commodity prices,” chief executive Cynthia Carroll said on Friday. “Notwithstanding the other measures we have taken, the board has decided to suspend dividend payments in order to preserve the group’s strategic growth options.” The group, which also mines industrial metals like copper, coal and diamonds and platinum, said on 17 December it was cutting capital spending in 2009 by more than half to $4.5 billion and postponing some mine projects to conserve cash. Anglo , the world’s fourth-biggest diversified mining group by market value, said on Friday earnings per share before exceptional items fell to $4.36 from $4.40 in 2007. The group, which focuses on southern Africa, said operating profit fell 0.3% to $10.09 billion. The group said its net debt at the end of 2008 was $11.04 billion and said it has agreed to provide a loan to diamond giant De Beers, in which it owns 45 percent, of $225 million this year. It did not announce any plans to raise further funds, unlike rivals Xstrata and Rio Tinto, which are more highly geared than Anglo. The group has so far this year further cut its stake in former majority-owned AngloGold Ashanti to 11.88% from 16.3%, raising $434 million. Source: World Business - Livemint.com | 20 Feb 2009 | 8:54 am Economic slump to pull down movie costs in 2009Mumbai: Indian film companies, currently fending off the cost of producing and distributing high-cost movies, say the global slowdown has paved the way for tighter budgets, and fewer but better offerings in 2009. India’s film entertainment sector grew by over 13% in 2008, crossing Rs10,000 crore but industry players expect a grim 2009 that will see nearly a third of the films already produced going unreleased due to a lack of funding. “It’s my prediction that nearly 30-40% of the movies made will not be released in 2009,” said Ronnie Screwala, chief executive officer at UTV Software, which has interests in broadcasting, television and movie content and gaming. “Last year everyone started making movies to sell them to somebody else. That model has vanished. So, now you are only going to distribute movies if you’re convinced it is going to do well,” he said at a media conference this week. The release of a few movies may get pushed to as late as 2010 as funding becomes a problem, Rajesh Jain, head of media and entertainment at KPMG Advisory, said, adding that the industry could even see “de-growth” in 2009. Vibrant growth in India’s infrastructure, automotive and consumer goods sectors over the last 2-3 years had stoked a consumer spending boom but high interest rates and peaking inflation in the second half of 2008 have effectively put a brake on expenditure. India’s manufacturing activity shrank for a third month in January even after authorities took a raft of measures, including aggressive rate cuts and two stimulus packages, from October-onward to prop up growth and stimulate demand. In addition, film costs have more-than-doubled over the last 2-3 years with talent comprising more than 50% of the total cost base of a project. Therefore, for films to profit, lead stars will either have to take a salary cut or work out a ‘revenue-share´ model with producers, industry players said. “Cost of production went up to a level and breakeven point did not justify that kind of a cost structure. Consequently, 2008 didn’t see a lot of hits,” KPMG’s Jain said. Returns on investments in mega-budget flicks have also been dismal, with films such as Drona, Victory and Love Story 2050, all released last year, tanking at the box office, industry players said. However, they remain hopeful that the slowdown will bring costs down to a reasonable level and ensure that quality movies are made at a decent price. “Everyone is backing out of projects. I think there will be a lot more rationalisation of costs now. There will be a lot of quality projects available at rational prices,” Sheetal Talwar, managing director of Vistaar Religare Film Fund, said. The fund, which has a total capital commitment of Rs200 crore, has financed Victory, the story of a small-town boy who becomes a cricket legend and crime thriller The Stoneman Murders. Film producers and financiers, who have so far complained about the poor quality of scripts and high ticket prices which repulsed audiences, were unanimous that 2009 would be about better scripts and quality content. Source: Home - Livemint.com | 20 Feb 2009 | 8:34 am Spice: majority Satyam stake should be soldMUMBAI (Reuters) - The head of Spice Group, a contender for Satyam Computer Services, said on Friday he was interested in bidding for majority control of the troubled outsourcer, but would reconsider if a smaller stake was offered.Source: Reuters: Money News | 20 Feb 2009 | 6:08 am Sensex ends at 4-week low at 8,843.21Mirroring a decline on bourses across the world, the Bombay Stock Exchange benchmark Sensex shed nearly 200 points to close below the 9,000 level.Source: Daily News & Analysis: Money News | 20 Feb 2009 | 5:57 am Gujarat-Canada deal to take on De Beers?A new business alliance between Gujarat and a Canadian province may have the potential to challenge De Beers' monopoly over the global diamond business.Source: Daily News & Analysis: Money News | 20 Feb 2009 | 5:57 am L&T to take decision on bidding after studying CLB orderLarsen and Toubro on Friday said it would soon take a decision on bidding for Satyam Computer Services after studying the CLB order.Source: Daily News & Analysis: Money News | 20 Feb 2009 | 5:27 am L&T says studying Satyam decisionMUMBAI (Reuters) - Larsen & Toubro, the largest shareholder in Satyam Computer Services, said it will review a decision to allow the fraud-hit outsourcer to increase shares on issue and sell a stake before making its next move.Source: Reuters: Money News | 20 Feb 2009 | 4:43 am Day Trading GuideWe retain our prior view of initiating fresh long-position if DLF exceeds Rs 168, with tight stop-loss. Initiate fresh short-position if ICICI Bank declines below Rs 348 and SBI falls belowSource: Business Line - Home Page | 20 Feb 2009 | 12:00 am CLB sets in motion process to revive Satyam ComputerIn a move that sets the stage for the buy-out of Satyam Computer Services Ltd, the Company Law Board on Thursday allowed the Government-appointed board to bring in a strategic investor through an open bidding process. For this purpose, the CLBSource: Business Line - Home Page | 20 Feb 2009 | 12:00 am Law soon on forfeiting frozen demat assetsMumbai, Feb. 19 The Government proposes to amend the Depositories Act to forfeit around Rs 8,800 crore worth assets lying in the frozen demat accounts, according to the Union Minister, Mr Pranab Mukherjee, who also holds finance portfolio.Source: Business Line - Home Page | 20 Feb 2009 | 12:00 am Bottom of the pyramid demographicsChennai, Feb. 19 Poorer States offer a better market for non-food items of consumption than richer States for products and services designed for, or easily accessed by, the bottom two-thirds of theSource: Business Line - Home Page | 20 Feb 2009 | 12:00 am Indian Overseas Bank (Rs 51.45): SellWe recommend a sell in Indian Overseas Bank stock from a short-term trading perspective. It is apparent from the charts of Indian Overseas Bank that it has been on a long-term downtrend from its January 2008 peak of Rs 228. Since then, the stock hasSource: Business Line - Home Page | 20 Feb 2009 | 12:00 am It’s innovative pricing in BollywoodMumbai, Feb. 19 Although fewer Bollywood films may release in 2010, the liquidity crunch that has hit the world’s second largest film industry is making film production cheaper.Source: Business Line - Home Page | 20 Feb 2009 | 12:00 am SEBI to amend norms on pref share pricingMumbai, Feb. 19 The Securities and Exchange Board of India (SEBI) is in the process of amending its Disclosure and Investor Protection guidelines to allow a preferential allotment of shares of Satyam Computer at a price that would fetch strategicSource: Business Line - Home Page | 20 Feb 2009 | 12:00 am BSNL’s IPO plans still on cards: ScindiaNew Delhi, Feb. 19 The Ministry of Communications and IT on Thursday said that the proposed initial public offering (IPO) by Bharat Sanchar Nigam Ltd was very much on the cards and it was only a matter of having better market conditions.Source: Business Line - Home Page | 20 Feb 2009 | 12:00 am Public sector general insurers working on Golden Gate VRSBangalore, Feb. 19 Public sector general insurers have begun working on fresh proposals for shedding excessSource: Business Line - Home Page | 20 Feb 2009 | 12:00 am More cos announce buyback of FCCBsMumbai, Feb. 19 More companies are announcing buyback foreign currency convertible bonds. Pharmaceutical major Jubilant Organosys today said it will buyback FCCB worth $48 million. With this, four companies including Reliance Communications haveSource: Business Line - Home Page | 20 Feb 2009 | 12:00 am It's wishful to think we'll get to the truth in the Satyam caseCorporate frauds are not easy to understand and that seems to make the job of the perpetrators easy. The Satyam Computers scam is a case in point.Source: Daily News & Analysis: Money News | 19 Feb 2009 | 10:16 pm Govt to borrow Rs 746 crore a dayBefore the current fiscal runs out, the Centre would have contracted public debt at the rate of Rs 591 crore per day.Source: Daily News & Analysis: Money News | 19 Feb 2009 | 10:11 pm RBI to revive 'holding company' proposalIssue tied in with review of foreign bank operations in India.Source: Business Standard | Front Page Headlines | 19 Feb 2009 | 6:38 pm Another stimulus possible: PranabTells Parliament he will hold talks with RBI and finance ministry officials.Source: Business Standard | Front Page Headlines | 19 Feb 2009 | 6:36 pm CLB clears way for Satyam to find strategic buyerDirects company to seek Sebi permission to waive takeover code.Source: Business Standard | Front Page Headlines | 19 Feb 2009 | 6:35 pm Most trials conducted under strict FDA, European rulesMumbai: India has been a preferred destination for clinical trials ever since pharmaceutical outsourcing picked up at the start of the decade. As the number of human trials increased, the country modified its rules in 2006 to ensure quick clearance for drug investigation projects by foreign companies. This rapid pace led to concerns on ethics of such trials, especially as many of the drugs are not meant for immediate use in India. There have also been instances of negligence by researchers and exploitation of uninformed patients. Poor training for researchers and less awareness among trials’ voulnteers have led to fatalities at times Clinical trials are typically sponsored by large pharmaceutical firms such as Pfizer Inc., GlaxoSmithKline Plc., Sanofi-Aventis SA, Bristol Myers Squibb Co., Novartis AG, AstraZeneca Plc. and F Hoffman-La Roche Ltd, and conducted worldwide to generate data on safety and efficacy from different regions. This is usually done with an aim to register the drugs in other markets as well. A new medicine has to be tried on 2,000-4,000 patients globally. The ethical issue in recruiting more patients from developing countries rather than from the home nation is debatable, said Arun Bhatt, president, Clininvent Research Pvt. Ltd, one of the top three clinical research organizations in India by clinical trials conducted. “But since most of these trial sponsors intend to market their drugs in the global markets, including the emerging markets, one can’t really allege exploitation of poor counties for drug trials.” If India closes its doors to clinical trials, it would be difficult to make new drugs available locally as the country is still not capable of developing such drugs on its own, he said. Multinational drug companies are rushing to India as patient recruitment is faster and cheaper, said a Mumbai-based senior research and development (R&D) executive with a multinational drug firm. “It doesn’t really mean that the Indian patients are exploited, because most of these trials are done under strict guidelines of USFDA and more often by the ethical guidelines for global trials set by the sponsors themselves,” this executive added, asking that he not be identified because of company policy regarding interactions with the media. Not everyone agrees. Poor training for researchers and a lack of awareness among volunteers has led to fatalities at times, said Samyukta Ajay, vice-president, Siro Clinpharm Pvt. Ltd, a research body. She suggested the government have a mechanism to negotiate with global pharma companies on making the drugs tested in India available locally at affordable prices. In India, clinical trials are regulated under Schedule Y of the Drugs and Cosmetics Act. The Indian Council of Medical Research issued new guidelines on ethics in clinical trials in 2006 but these are yet to be made into a law so registration is not mandatory for institutions conducting clinical trials. Source: World Business - Livemint.com | 19 Feb 2009 | 4:53 pm Study questions ethics of outsourcing drug trialsAs many American companies in the last decade have sent tasks such as customer service and computer support to other countries, drug makers have followed suit by outsourcing clinical trials—the human studies that determine the safety and efficacy of medicines. Now, an article about the globalization of clinical trials, published on Thursday in The New England Journal of Medicine has raised questions about the ethics and the science of increasingly conducting studies outside the US—when the studies were meant to gather evidence for new drugs to gain approval in this country. The article, by several Duke University researchers, suggests an ethical quagmire when drugs intended for wealthy nations are tested on people in developing countries. The authors suggest that human volunteers in foreign countries may be unduly influenced with the promise of financial compensation or free medical care to participate in clinical trials. The report, Ethical and Scientific Implications of the Globalization of Clinical Research, also asks whether drug research conducted in developing countries is relevant to the treatment of American patients. “We don’t want to imagine that lower-income countries are the clinical trial mill for higher-income countries,” Kevin A. Schulman, the lead author of the article, said in a phone interview last week. Dr Schulman is a professor of medicine at the Fuqua School of Business at Duke, in Durham, North Carolina. But some critics say the authors used overly simplistic data mining to raise an alarm, without presenting hard evidence of widespread ethical or scientific problems. “More places outside the United States are participating in research—is that a bad thing?” said Ezekiel J. Emanuel, the chairman of bioethics at the Clinical Center of the National Institutes of Health (NIH) in Bethesda, Maryland, after reading an abstract of the article sent to him by a reporter. Dr Emanuel cited a clinical trial of the Merck and Co. Inc. drug Gardasil, a vaccine against the human papilloma virus, that was conducted in Costa Rica, where there is a high incidence of the disease. “This is the kind of case where it is a good thing.” Whatever the interpretations, the use of offshore clinical trials is growing. In the last 10 years, the proportion of US-based researchers who direct clinical trials registered with the federal Food and Drug Administration (FDA) has declined significantly, while the percentage of FDA-registered researchers outside the US has significantly increased, according to a report in January by the Tufts Center for the Study of Drug Development in Boston. In 1997, about 86% of FDA-registered principal investigators were based in the US, the Tufts study said. By 2007, only about 54% of about 26,000 FDA-regulated chief scientists who conducted clinical trials that year were based in the US. Kenneth A. Getz, a senior research fellow at the Tufts center, said drug companies were looking abroad because it was often less expensive to conduct clinical trials outside the US. Critics of the Duke article take issue with its methodology. The authors, for example, compare the locations of 300 clinical trials published in three leading medical journals in 1995 and 2005, concluding that the number of countries participating in studies more than doubled over that decade. But critics question that comparison, because about 40% of the published clinical trials from 1995 did not indicate where the studies were conducted. One of the authors, Seth W. Glickman, a senior scholar at the Fuqua School of Business at Duke, said he did not know how omitting those studies might have skewed the analysis. And although the article uses the country statistics to raise concerns about the increased globalization of clinical research, the Tufts study shows that the majority of FDA-regulated drug researchers are still in the US. The Duke authors also write that drug research in developing countries—where certain populations may metabolize medications differently because of environmental factors or genetic mutations—might not be relevant for American patients. “There are issues with the interpretability of the findings,” Dr Glickman said. Dr Emanuel of the NIH agreed that it was possible that some offshore drug research might not be applicable to American patients. But he faulted the report for seeming to treat all foreign countries alike. Research conducted in some places outside the US—such as Canada and Sweden—might be perfectly relevant to American patients, he said. “It’s not a sufficiently nuanced concern to give it credibility,” said Emanuel. © 2009/THE NEW YORK TIMES Source: World Business - Livemint.com | 19 Feb 2009 | 4:33 pm
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