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HP announces companywide paycutsLeading hardware giant Hewitt Packard (HP) has announced a companywide pay cut to avoid layoffs. The pay cut will be implemented across all branches and offices of HP. The decision was taken after the company suffered huge losses in 200809 and felt the need to compensate for poor performance in several areas due to the ongoing global meltdown.Source: Moneycontrol Top Headlines | 23 Feb 2009 | 4:00 pm SEC probed Stanford companies; red flags abounded!For years, there were red flags — so many they could have massed into a crimson blanket.Source: Zee News : Business | 23 Feb 2009 | 12:50 pm Nationalized UK bank to expand mortgage book!Britain`s government is throwing nationalized lender Northern Rock back into the home loan business in a bid to spur the market for mortgages, a government official said Sunday.Source: Zee News : Business | 23 Feb 2009 | 12:50 pm US Airways reverses soda stance, won`t charge!US Airways is acknowledging as much, planning to announce Monday that free beverage service will resume on March 1 on board its planes.Source: Zee News : Business | 23 Feb 2009 | 12:50 pm `US could take 25-40% stake in Citi`!The US govt is in talks that could lead to it taking take a 25-40 percent stake in Citigroup.Source: Zee News : Business | 23 Feb 2009 | 12:50 pm Oil steady in Asia, trading at USD 40!Oil traded steadily near USD 40 in Asia Monday despite an OPEC minister`s forecast of additional output cuts by the cartel.Source: Zee News : Business | 23 Feb 2009 | 12:50 pm Satyam buoyant; gets new business and offered funds!Satyam Computer Services will submit a plan to pick a strategic investor to regulators next week, and said it had won work worth more than USD 250 million since it was hit by the country`s biggest corporate fraud last month.Source: Zee News : Business | 23 Feb 2009 | 12:50 pm ‘India most appealing in Asia after China, Hong Kong’Mumbai: India is the most appealing investment region in Asia after China and Hong Kong because of its size and the general quality of its companies, according to a survey of investment managers by Thomson-Reuters Corp., a provider of financial data and information. The firm asked 32 fund managers, who collectively manage about $1 trillion in equity assets, for their feedback on nine Asian regions, including Singapore, Japan, Thailand, Taiwan, Turkey and Korea. A fourth of these investment managers said India has more investment appeal than the other Asian regions, in variance with the trend of foreign portfolio disinvestments in the country in recent times. Foreign fund mangers have pulled out some $6.5 billion net from Indian stocks after the mid-September collapse of American investment bank Lehman Brothers Holdings Inc. that triggered alarm bells throughout the global financial system. Others such as Fund tracker EPFR Global say investors are pulling out of safe havens such as US money-market funds and moving to emerging-market equities, high-yield bonds and US growth funds. While India’s growth prospects have been pared, the $1-trillion economy is still expected to grow by at least 5%, depending on various estimates. About half the fund managers surveyed favoured China for its promising growth prospects and resources for fiscal stimulus. Hong Kong was the favourite of about 28% of the investment managers because of its stable capital structure and growth rates, the survey said. Korea was the least favourite with as many as 35% of investors saying it was vulnerable to cyclicality and its over-reliance on exports. As for the most appealing sectors in Asia, infrastructure emerged as the favourite pick for nearly 40% of the investment professionals, while a third plumped for consumer goods because of their ability to resist financial obstacles. The 32 investment managers who participated in the survey were interviewed in December 2008 and January 2009, the agency said in an emailed statement. Source: LatestNews-Home - Livemint.com | 23 Feb 2009 | 12:46 pm Gold eases on weak overseas signals - Economic Times
Source: Google News India - Business | 23 Feb 2009 | 12:42 pm Aircel starts GSM service in BangaloreBangalore: The country’s fifth largest service provider Aircel on Tuesday launched its GSM mobile services in the Karnataka capital, adding the IT city as its 12th circle on the company’s Pan India operation locations. The firm’s chief operating officer Gurdeep Singh said, “The Bangaluru (Bangalore) launch augments the next phase of our Pan India roll-out.” Aircel will be launching VAS services with localized content including a WAP portal page in the local language that would work on any GPRS handset, he said. Taking not of the city’s business proximity with Tamil Nadu and Kerala, Aircel subscribers in Bangalore are facilitated to make STD calls to these states at only Re1 per minute in case both the caller and the receiver are using the Aircel network. Aircel has also offred an inbuilt ISD tariff of call to Gulf at Rs5.99 per minute and calls to US/Canada at Rs3.99 per minute, Singh said in a release. Source: LatestNews-Home - Livemint.com | 23 Feb 2009 | 12:37 pm Toyota expects no growth in sales this year - Business Standard
Source: Google News India - Business | 23 Feb 2009 | 12:34 pm ETF activity heats up as BMO enters market - Morningstar.ca
Source: Google News India - Business | 23 Feb 2009 | 12:26 pm US Stock-Index Futures Climb; Citigroup, General Motors Gain - Bloomberg
Source: Google News India - Business | 23 Feb 2009 | 12:22 pm Investors should await ‘right time’ to invest in gold: analystsNew Delhi: Surging gold prices to record highs of over Rs16,000 per ten gram may have made the existing investors wealthier, but the analysts do not consider it the right time for the new investors to enter this market — both directly or through exchange traded funds. While gold prices may zoom further and might even cross Rs17,000 level in the short term, there are significant downside risks from the current levels, especially if the equity markets start recovering, the experts believe, as they attribute the recent rally mostly to the investors’ continued flight away from the stocks. Gold prices, which were on an upward spiral for the past two quarters, breached its all-time high of over Rs16,000 per 10 gram in the futures trade, while gold ETFs are also giving better returns with an average of about 15% return quarterly. Analysts believe the marriage season has boosted the demand for gold which has pushed the prices to record levels and investors should await a downtrend to invest in Gold ETFs. “With the onset of marriage season, gold has become expensive asset. Like all other commodities it is likely to undergo correction and hence an investment is advisable at this time,” Taurus Mutual Fund Managing Director R.K. Gupta said. Gold ETFs are a type of mutual fund schemes under which investors can buy and sell gold on the exchange. The trading prices on the ETF is the average market price of 1 gram gold. Analysts believe that the investments in gold ETFs should be for long term to avoid short term capital gain tax. “Investors should book profit now and wait for ETF prices to come down to Rs1,400-1,450 levels. There is scope for correction as the yellow metal is highly overbought at the moment,” SMC Global VP Rajesh Jain said. As uncertainty trails everywhere, investors turned their focus on gold as the precious metal came as a safe and secured investment bet in times of recession and traders have increased their exposure in the precious metal following melting stock and forex markets. At present there are five Gold ETFs — Kotak Gold, Gold Share, Gold Bees, Reliance Gold and Quantum Gold — listed on the National Stock Exchange (NSE). Analysts believe that Gold ETFs have emerged as the top investment avenue in recent times when stock market returns dropped drastically, while physical gold prices are touching the roof in domestic as well as global markets. According to an analysis of the returns provided by Gold ETFs, investors have reaped on an average of 15% in the past three months, while in the past six months the returns have increased by over 20%. “investment and people are taking it is as a hedge against risk,” Ashika Stock Brokers’ Research Head Paras Bothra said. On Friday, KotakGold ETF settled at Rs1,521.36, UTI Mutual Fund’s GoldShare ended at Rs1532.44, Benchmark MFs GoldBees at Rs1,546.53 on the NSE. Besides, Reliance MF’s RelGold closed at Rs1,490.54 and Quantum Gold at Rs761 on NSE. “People are understanding that the economic problem is deep and intrinsic value is going to deplete. Hence, it has emerged as the only favoured asset class giving positive returns,” Bothra added. Further, physical gold prices have shot up to record highs of Rs15, 800 per 10 gms last week, while gold futures breached the Rs16,000-mark per 10 gm on continued buying on speculations that the global recession would deepen further. The metal, which had been on a record-setting spree for the last one week, spurted to an all-time high of Rs16,349 on Friday in futures trade, by adding 2.55% on the Multi Commodity Exchange. Source: Home - Livemint.com | 23 Feb 2009 | 12:16 pm Gold eases on weak global trendNew Delhi: On weak global trend and reduced offtake by the retailers and jewellery fabricators the Gold prices fell by Rs50 to close at Rs15,600 per ten gram in the bullion market here on Monday. A weakening trend in international markets, which normally set prices here, further fuelled the down-trend. The gold in Hong Kong traded around $994.00 an ounce, after touching a low of $984. The metal had surged to one-year high of $1,007.20 an ounce on Thursday in the New York Merchantile Exchange, bolstering demand for the metal as safe hedge following deepening economic crisis. However, silver market remained close on account of ‘Mahashivratri.’ Trading volume was negligible as most of the traders were in festive mood and refrained from doing any worthwhile business. Standard gold and ornaments fell by Rs50 each at Rs15,600 and Rs15,450 per ten gram respectively. Sovereign was unchanged at Rs12,400 per piece of eight gram. Source: Home - Livemint.com | 23 Feb 2009 | 12:15 pm Reliance cuts ’09 Iran crude imports 25%Dubai / Singapore: India’s Reliance Industries will import about 25% less crude oil on contract from Iran in 2009, sources familiar with the supply deal said on Monday. Reliance will buy 90,000 barrels per day (bpd) of Iranian crude on term contract this year, down from 120,000 bpd in 2008, oil industry sources said. It was unclear why India’s largest refiner would cut contract purchases from the world’s fourth-largest oil exporter in a year when Reliance needs more crude to feed its giant new 580,000 barrels per day (bpd) Jamnagar refinery. Reliance did not respond to Reuters enquiries on the reduction, while Iranian officials declined to comment. The reduction may be a sign that Iran is writing lower supply into its annual contracts due to curbs agreed with the Organization of the Petroleum Exporting Countries, said Victor Shum, analyst with consultancy Purvin & Gertz in Singapore. “It could be due to the OPEC production cuts,” Shum said. “There is simply less oil around, even if Iran may not have fully complied with the intended cuts, but there has been cuts.” OPEC has agreed cuts of 4.2 million bpd since September. Iran’s share of the reductions was around 560,000 bpd. In January, Iran cut supplies to Asia by 14%, the first reduction to its core Asian customers in at least three years. Previously, Iran had cut spot sales of crude rather than reduce contract volumes. POOR QUALITY Reliance may have decided that the quality of crude from Iran was too poor to warrant the prices Tehran wanted, trade sources said. Among the grades which Reliance has purchased were the heavy and acidic Soroush and Nowruz crudes from Iran’s offshore fields. The new Jamnagar refinery can process the oil, but with a glut on the market as the global economy slows, Reliance may have opted for better grades widely available. “Soroush has very poor qualities which reduces its attractiveness even to complex refiners like Reliance, kitted to process this type of rough material,” one Asia-based crude trader said. Politics might also have played a role in the decision, some traders said. US major oil firm Chevron owns 5% of the Jamnagar refinery and has an option to take a bigger stake. US refiners are forbidden from buying Iranian crude under sanctions in place. “Some political pressure could have reached Reliance,” Shum said. “Some members of the US Congress have complained about Reliance supplying gasoline to Iran.” In December congressman Brad Sherman, together with a bipartisan group from the US House of Representatives, sent a letter to the head of the US Export-Import Bank urging it to suspend financial aid to Reliance unless the Indian firm agreed to stop selling gasoline to Iran. The US bank had approved two loan guarantees to Reliance worth $900 million that included a $400 million facility issued in August to help finance the Jamnagar refinery. The refiner shipped 750,000 barrels of fuel to Tehran in January. Reliance has kept silent on which crudes it will buy for the new refinery. The Indian company already buys from across the globe, with suppliers including Latin American, African, and Middle Eastern oil producers. Jamnagar could also buy Chevron’s Gulf of Mexico crude output, one industry source said. Source: Home - Livemint.com | 23 Feb 2009 | 12:01 pm Interim trade policy may make rules easier for exporters - Press Trust of India
Source: Google News India - Business | 23 Feb 2009 | 11:45 am FICCI seeks separate export promotion council for auto sector - Economic Times
Source: Google News India - Business | 23 Feb 2009 | 11:43 am Slumdog Millionaire grosses over ten times of $15 mn budgetBy PTI New Delhi: The jackpot earner at this year’s Oscars, Slumdog Millionaire, is minting dollars at the Box Office too with the worldwide profit exceeding its budget by over ten times to $163 million (Rs800 crore). Besides, the trade experts expect the movie to roar ahead on the box office with as many as eight Academy Awards in its kitty. Made at a budget of $15 million (less than Rs75 crore) by UK’s Film4 and Celador films with a predominantly Indian cast and crew, the movie’s worldwide business has exceeded $163 million through yesterday, entertainment publication Variety reported on its website. The Oscars were announced late night yesterday and the impact of the awards won by it is yet to be reflected into the movie collections. Best Motion Picture of the year has earned about $98 million in the US, while about $65 million have come from the other markets, Variety report said, adding that the box office observers believe it heading towards $200 million globally. It is estimated to have done a business of about Rs30 crore in India. Source: Home - Livemint.com | 23 Feb 2009 | 11:37 am EPF rate kept unchanged at 8.5 per cent for 2008-09 - domain-B
Source: Google News India - Business | 23 Feb 2009 | 11:31 am SBI Slashes Car Loan Interest Rate to 10% for a Year - Outlook
Source: Google News India - Business | 23 Feb 2009 | 11:20 am Third govt bailout of Citi could cost Pandit his jobWashington: India-born Vikram Pandit could well lose his job as the chief executive of Citigroup if the American government comes in with yet another lifeline for the beleaguered financial services entity. Citi has already received fresh capital injection to the tune of $45 billion from the Federal government and officials way back in November reportedly had even discussed the option of replacing Pandit. Pandit took over the reins of Citi in December 2007. “... top government officials warned Pandit that a third trip to the taxpayer trough would probably cost him his job,” the Wall Street Journal reported today. The daily said that Citi is in discussions with Federal officials which could result in the government increasing its ownership in the bank. The report noted that in November last year Federal officials privately discussed the possibility of replacing Pandit. “But the government decided not to remove him, in large part due to a dearth of qualified replacements,” it added. In addition to $45-billion capital injection, the government had also agreed to guarantee the bank’s assets worth more than $300 billion. Source: LatestNews-Home - Livemint.com | 23 Feb 2009 | 11:16 am Amnesty urges arms embargo on Israel, HamasLondon: A comprehensive arms embargo must be placed on Israel, Hamas and other Palestinian armed groups in the aftermath of the recent conflict in Gaza and southern Israel, Amnesty International said on Monday. The London-based human rights group said it had found evidence that Israel and Hamas had both used weapons supplied from overseas to carry out attacks on civilians, accusing both sides of committing war crimes during the three-week conflict at the start of the year. It called for the UN Security Council to impose an arms embargo until mechanisms were put in place to ensure that military equipment was not used to commit violations of international law. “Israeli forces used white phosphorus and other weapons supplied by the USA to carry out serious violations of international humanitarian law, including war crimes,” said Donatella Rovera, who headed an Amnesty fact-finding mission to southern Israel and Gaza. “Their attacks resulted in the death of hundreds of children and other civilians, and massive destruction of homes and infrastructure.” Rovera added: “At the same time, Hamas and other Palestinian armed groups fired hundreds of rockets that had been smuggled in or made of components from abroad at civilian areas in Israel. “Though far less lethal than the weaponry used by Israel, such rocket firing also constitutes a war crime and caused several civilian deaths.” Amnesty said it had found fragments and components of artillery, tank shells, mortar fins and airborne missiles and bombs in school playgrounds, hospitals and homes in Gaza. In southern Israel, meanwhile, it found remains of rockets fired indiscriminately at civilian areas by Hamas and other Palestinian armed groups. “We urge the UN Security Council to impose an immediate and comprehensive arms embargo on Israel, Hamas and other Palestinian armed groups until effective mechanisms are found to ensure that munitions and other military equipment are not used to commit serious violations of international law,” said Malcolm Smart, Amnesty’s Middle East director. “In addition all states should suspend all transfers of military equipment, assistance and munitions to Israel, Hamas and other Palestinian armed groups until there is no longer a substantial risk of human rights violations. “There must be no return to business as usual, with the predictably devastating consequences for civilians in Gaza and Israel.” Israel’s foreign ministry panned the report, which it said “presents a biased version of the events, and does not adhere to professional criteria and objectivity.” Israel insisted, as it did during the war, that it did not deliberately target civilians and that all the weaponry it used “comply both with international law and with its usage by Western armies.” Israel also rejected the comparison of its use of imported weapons to that of Hamas. “Israel is a sovereign nation that is obligated to use force to protect its citizens, while Hamas is a terror organisation,” the ministry said. Both Israel and the Islamist Hamas movement ruling Gaza called unilateral ceasefires on January 18 after a massive 22-day Israeli offensive on the territory that killed 1,300 Palestinians and 13 Israelis. The calm has since been repeatedly tested as Palestinian militants have fired more than 45 rockets and mortar rounds at southern Israel and the Israeli military has carried out several air strikes. Source: LatestNews-Home - Livemint.com | 23 Feb 2009 | 11:08 am U.S. may take big stake in Citi as crisis ragesPARIS/NEW YORK (Reuters) - Citigroup Inc is in talks that could see the U.S. government boost its stake to 40 percent, according to media reports, as governments and financial firms in Japan, France and elsewhere announced fresh capital raising on Monday.Source: Reuters: Money News | 23 Feb 2009 | 11:02 am RBI chief meets Pranab Mukherjee, assures more steps - Economic Times
Source: Google News India - Business | 23 Feb 2009 | 11:01 am SBI slashes car loan interest rate to 10% for one yearBhopal: The State Bank of India (SBI) on Monday announced slashing of its car loan interest rate to 10% from an average of 11.5%, and waiving off its car loan processing fee for a year. “We have decided to slash the car loan interest rate to 10% today for a year,” SBI (Madhya Pradesh and Chhattisgarh) chief general manager D.K. Jain said. SBI has also waived its car loan processing fee for a year from from Monday, he said. He said that SBI had taken the decision as part of social obligation keeping in mind the demand and production that have been affected in the automobile sector following the economic recession. “A dip in demand and production, leads to trimming of workforce causing unemployment as well,” he added. SBI feels that the slashing in the car loan interest rate will stable the demand and production and keep employment intact in this sector, Jain said. Source: LatestNews-Home - Livemint.com | 23 Feb 2009 | 11:01 am Drug firms not making cheaper medicines, rues PaswanThe government Monday accused drug manufacturers of not making cheaper medicines available to the public.Source: IndiaeNews.com: Business News | 23 Feb 2009 | 11:00 am Future Group to buy stake in Turtle, deal likely in 3-4 weeksNew Delhi: The Future Group is in talks with Turtle Group to buy a stake in the Kolkata-based apparel maker, Future Group chief executive officer Kishore Biyani said on Monday. “Yes, some discussions are going on. However, at this moment I cannot give you more details in this regard,” Biyani said. Asked about the prospective size of the deal and its likely date of completion, Biyani said: “I do not have the details with me now. I can give you the details later.” On being contacted, Turtle Group director Amit Ladsaria confirmed the news and said talks are in “advanced stages”. “We are in advanced stages of negotiations and are hopeful of concluding them in another three to four weeks,” Ladsaria said. He said Future Group would be buying a “minor stake” in Turtle but refused to disclose the size of the agreement. Turtle Group currently operates 32 exclusive outlets across the country, including Ahmedabad, Bangalore, Chennai, Bhubaneshwar and Guwahati, and also has presence in over 1,200 multi-brand stores. The company, which has two facilities in Kolkata and Bangalore, reported a turnover of Rs46.5 crore in 2007-08. Source: LatestNews-Home - Livemint.com | 23 Feb 2009 | 10:47 am Coca Cola ropes in Gautam Gambhir as Coke brand ambassadorNew Delhi: Soft drink major Coca Cola has roped in Gautam Gambhir as brand ambassador for Coke and the cricketer will be featuring in the company’s new campaign to be rolled out this week. “It is first in the series of the 2009 summer campaign to feature Gautam Gambhir, leveraging the passion of cricket amongst the youth,” Coca Cola said in a statement. The company said the new ‘Coca-Cola Open Happiness´ campaign is designed to serve as a platform for all integrated marketing initiatives for brand Coca-Cola globally. “India is one of the first few strategic markets to roll out Coca-Cola Open Happiness after its successful launch in the US,” it added. On being signed for the campaign, Gambhir, who is also the opening batsman for IPL team Delhi Daredevils, said: “Coca-Cola has always been associated with refreshment, happiness and moments of joy. All these are the qualities that I closely identify with.” The campaign is expected to be rolled out this week. Talking about the campaign, Coca-Cola India director-marketing Kashmira Chadha said:“In addition to leveraging mass media, the entire communication effort will be complimented by a range of initiatives including in-store and on-the-ground activation across all key markets.” Source: LatestNews-Home - Livemint.com | 23 Feb 2009 | 10:47 am EXCLUSIVE - Reliance cuts '09 Iran crude imports 25 pctDUBAI/SINGAPORE (Reuters) - Reliance Industries will import about 25 percent less crude oil on contract from Iran in 2009, sources familiar with the supply deal said on Monday.Source: Reuters: Money News | 23 Feb 2009 | 10:42 am FDI inflow in 2008-09 to exceed $ 25 bn received last year - Economic Times
Source: Google News India - Business | 23 Feb 2009 | 10:39 am Honda still seeking buyers for its F1 teamTokyo: Automaker Honda says it has no serious buyers for its Formula One racing team. “Various people are making offers but none of them are serious,” Honda Chief Executive Takeo Fukui said at a news conference Monday, when he also announced he was stepping down and being replaced by research expert Takanobu Ito. Honda has been trying to find a buyer for its team after it announced in December it was quitting F1 to focus on its core business of making and selling cars. Like other Japanese automakers, Honda has been battered by the plunge in global auto demand after the U.S. financial crisis struck last year. The Honda team, with an operational budget of around $294 million, finished next-to-last in ninth place in the F1 constructors’ standings last season. Honda, which originally entered F1 as a constructor for a stint in the 1960s before returning as an engine supplier in the 1980s, bought out BAR Racing in 2005. The company reportedly spurned a buy-out offer from F1 boss Bernie Ecclestone that would have allowed the team to race this season, according to Sunday’s edition of British newspaper The News of the World. British businessman Richard Branson said over the weekend that his company Virgin may be ready to take over the team, but only if the sport is ready to make major changes. Fukui said negotiations were difficult, although a deal “was not totally impossible.” Incoming president Ito was hopeful Honda may some day recover enough to again tackle F1, although he did not elaborate. Source: LatestNews-Home - Livemint.com | 23 Feb 2009 | 10:39 am 'Bulk of cess for construction workers welfare unutilized'More than 75 percent of cess collected by state governments from developers in the past six years, meant for welfare measures for construction workers, remain unutilised, says a report by an industry lobby.Source: IndiaeNews.com: Business News | 23 Feb 2009 | 10:32 am RBI chief meets Pranab, assures more stepsThe Reserve Bank of India (RBI) Monday said it was closely monitoring the economic scenario and would take 'appropriate policy action as may be necessary'.Source: IndiaeNews.com: Business News | 23 Feb 2009 | 10:31 am Drug firms not making cheaper medicines, rues PaswanThe government Monday accused drug manufacturers of not making cheaper medicines available to the public.Source: IndiaeNews.com: Business News | 23 Feb 2009 | 10:30 am Patni makes four senior appointments in EuropeBy PTI Mumbai: IT services provider Patni Computer Systems today announced the appointment of four new senior executives to expand its operation in Germany, Austria and Switzerland (DACH) area. While Juergen Dillenberger has been appointed senior sales manager, Georg Wagner has been inducted as vice-president, a press release stated. Gabi Schulte-Holthaus will be sales director, SAP Alliance, while Amit Luthra has been taken on board as senior sales manager, Life Sciences, the release said. Patni’s EMEA Executive vice-president Brian Stones said: “We are delighted to welcome these four eminent colleagues to our team in Europe. They bring an enormous amount of knowledge and experience across a broad range of sectors to the company and will be instrumental in building our fast-expanding customer base in the DACH area. Source: World Business - Livemint.com | 23 Feb 2009 | 10:24 am Patni makes four senior appointments in EuropeBy PTI Mumbai: IT services provider Patni Computer Systems today announced the appointment of four new senior executives to expand its operation in Germany, Austria and Switzerland (DACH) area. While Juergen Dillenberger has been appointed senior sales manager, Georg Wagner has been inducted as vice-president, a press release stated. Gabi Schulte-Holthaus will be sales director, SAP Alliance, while Amit Luthra has been taken on board as senior sales manager, Life Sciences, the release said. Patni’s EMEA Executive vice-president Brian Stones said: “We are delighted to welcome these four eminent colleagues to our team in Europe. They bring an enormous amount of knowledge and experience across a broad range of sectors to the company and will be instrumental in building our fast-expanding customer base in the DACH area. Source: LatestNews-Home - Livemint.com | 23 Feb 2009 | 10:24 am Set up detailed plan to put Satyam back on track: Spice GrpBK Modi of Spice Group stated he was in talks with lawyers in the US to evolve a legal strategy to buy Satyam and added that he was preparing a detailed roadmap to put the Satyam back on track. He said that the 51% control was imperative in order to deal with class action suits.Source: Moneycontrol Top Headlines | 23 Feb 2009 | 10:21 am RBI governor assures FM of appropriate action on rate cutsNew Delhi: The Reserve Bank of India (RBI) is constantly monitoring economic conditions and will take action as needed, governor Duvvuri Subbarao told the finance minister after his recent meetings abroad with other central bank heads. The RBI said on its website that Subbarao met Finance Minister Pranab Mukherjee on Sunday night and briefed him on the economic situation. “The governor briefed the finance minister on the evolution of the global financial crisis, the outlook for global economy and the response of advanced and the emerging economies to the crisis,” based on his meetings with central bank governors in Basel last month and Kuala Lumpur in February, the RBI said. Indian inflation fell to its lowest in more than 13 months in early February, dropping below 4%, which analysts said made it more likely the central bank would cut rates to support faltering growth. In Tokyo last week, Subbarao said there was room to cut rates, but the question was when and by how much. After a series of cuts since October, the bank’s key lending rate, the repo, stands at 5.5%, while the reverse repo is at 4.0%. The economy is expected to grow 7.1% in the fiscal year ending 31 March, slowing from 9.0% in the previous year. Source: Home - Livemint.com | 23 Feb 2009 | 10:10 am Britain pumps billions into bank to boost home loansLONDON (Reuters) - Britain will inject billions of pounds into state-owned Northern Rock bank to try to unlock lending and help the economy emerge from recession, finance minister Alistair Darling said on Monday.Source: Reuters: Money News | 23 Feb 2009 | 10:08 am FEATURE - Stanford's charges could derail $1 bln Caribbean projectCRABS PENINSULA, Antigua (Reuters) - The tranquil, reef-fringed isle off Antigua's north coast sustains mangroves, deer and a rare duck species -- along with ambitions for one of the Caribbean's biggest development projects.Source: Reuters: Money News | 23 Feb 2009 | 10:06 am Indian gold imports seen steady at 400 tonnesNEW DELHI (Reuters) - India is likely to import about 400 tonnes of gold this year, about the same as 2008, but high prices are keeping demand low for the time being, the vice-president of the Bombay Bullion Association said on Monday.Source: Reuters: Money News | 23 Feb 2009 | 10:02 am FICCI seeks separate export promotion council for auto sectorIndustry lobby Federation of Indian Chambers of Commerce and Industry (FICCI) Monday urged the government to set up a separate export promotion council (EPC) for India's automotive industry to help it achieve higher share in the global market.Source: IndiaeNews.com: Business News | 23 Feb 2009 | 10:01 am Citi relief boosts shares, weighs on govt bondsLondon: World stocks rose from last week’s three-month lows and government bonds fell on Monday as expectations grew that the US government will increase its stake in Citigroup, instead of fully nationalising the bank. A source told Reuters that Citigroup is in talks that could result in the US government increasing its stake in the bank. The Wall Street Journal said the government could own as much as 40% of the bank’s common equity by converting preferred shares it holds into common stocks. The plan would not cost further taxpayer money. The government currently owns a stake of nearly 8%. The news calmed fears over the bank’s future and the prospect of a full nationalisation of the stricken lender, which not only depresses stocks but adds to the fiscal burden of the biggest world economy. Shares in Britain’s partly-nationalised Royal Bank of Scotland jumped nearly 20 percent as it is expected to announce a restructuring to create a non-core division into which unwanted assets will be placed. “Banks remain in focus, they are pivotal in terms of the market,” said Jeremy Batstone-Carr, analyst at Charles Stanley. “Efforts to ring-fence toxic assets at RBS and the fact there appears to be no all-out nationalisation of Citi is steadying the ship.” MSCI world equity index rose 1% after hitting its lowest since late November on Friday while the FTSEurofirst 300 index of leading European shares also rose 1 percent. Emerging stocks rose 2% and US crude oil steadied at $40.02 a barrel. The March bund futures fell 44 ticks. The dollar fell 0.4% against a basket of major currencies while the euro rose 0.6% to $1.2924. “We doubt that the dollar sell-off overnight will be sustained and the currency is likely to remain a beneficiary as risk aversion rises once again,” Calyon said in a note to clients. The low-yielding yen was down around 0.7% at $93.81 per dollar. Gold fell to $983.65 an ounce. Source: Home - Livemint.com | 23 Feb 2009 | 9:58 am 10 fresh SEZ proposals cleared; 6 co-developers in Mundra zoneBy PTI New Delhi: The government today approved 10 proposals for setting up special economic zones, including those of Larsen & Toubro and Navi Mumbai SEZ, promoted by an aide of Reliance Industries chairman Mukesh Ambani. The Board of Approval (BoA) also cleared proposals for 11 investors to join as co-developers in projects like that of Mundra in Gujarat. The BoA meeting, chaired by commerce secretary G K Pillai, gave a clean chit to a Gujarat-based Essar SEZ project, which was earlier embroiled in issues like overlap between the domestic tariff area and the tax-free enclave. Three Mundra SEZs in Gujarat, having a total investment of Rs1,00,000 crore have been allowed to be merged. Since the combined area of the three zones exceeded the 5,000-hectare ceiling on a single SEZ, the BoA took the decision after a clearance from the Empowered Group of Ministers, headed by external affairs minister Pranab Mukherjee. The Navi Mumbai SEZ Pvt Ltd, which has promoted various zones, received fresh approval for the one dedicated to the gems and jewellery sector. The combined Mundra SEZ will induct six investors as co- developers. One of the SEZs to be merged into the combined entity is setting up a 300-MW power plant to be commissioned next month, Pillai said. Source: LatestNews-Home - Livemint.com | 23 Feb 2009 | 9:50 am Oil rises above $40 on Citi stake reportLondon: Oil rose above $40 a barrel on Monday, recovering from earlier losses after sentiment was lifted by a report that the US government could end up owning as much as 40 percent of Citigroup. But persistent worries about the health of the global economy and its impact on world energy demand continued to rank high among investors’ concerns, keeping oil prices rangebound. US oil crude for April delivery rose 5 cents to $40.08 by 0905 GMT, having earlier fallen by as much as 50 cents. The contract ended down 15 cents at $40.03 on Friday, while the expired March crude settled down 54 cents at $38.94 a barrel. London Brent crude fell 7 cents to $41.82. “For the moment, the crude market seems to be holding up within the $32-50 trading range we suspect will be with us for some time to come,” MF Global said in its daily note. European and Asian stocks rebounded and the dollar slipped on Monday after the Wall Street Journal reported the US government could end up owning as much as 40% of Citigroup Inc. Great Discussion The report cheered investors who cut their safety trades, prompting gold, a safe-haven investment, to fall after topping $1,000 an ounce last week. A fall in the US dollar may have also helped lift oil prices, analysts said. Earlier, oil prices had fallen on worries about a deepening economic recession after comments last week by Paul Volcker, a top adviser to President Barack Obama, that the global economy may be deteriorating even faster than it did during the Great Depression. Encouraging oil’s losses was data showing that Chinese crude oil imports in January fell 7.99% from a year ago to 12.82 million tonnes. Global energy consumption has collapsed as the financial crisis has thrown a number of major economies into recession, prompting oil prices to tumble more than $100 since peaking in July. Opec is very likely to decide on a new production cut at its next meeting scheduled in March, Algerian Energy and Mines Minister Chakib Khelil said. In the latest indication that Opec members are complying with the agreed cuts, Kuwait notified at least two buyers in Asia that it will keep curbs of 5% below contracted volumes for April-June term crude oil supplies, steady from March, trade sources said. In the Middle East, Kuwait resumed oil exports on Sunday after a halt caused by bad weather, which also affected Iran, a spokesman of a Kuwaiti state oil company said on Sunday. Financial markets will be keeping an eye on Federal Reserve Chairman Ben Bernanke’s policy report to US Congress on Tuesday and Wednesday. He is expected to offer assurances that help is on the way for the US economy and may offer clues on additional steps that could be taken to halt the economy’s downward spiral. Source: Home - Livemint.com | 23 Feb 2009 | 9:31 am RBI says ready to act if neededNEW DELHI (Reuters) - The Reserve Bank of India is constantly monitoring economic conditions and will take action as needed, Governor Duvvuri Subbarao told the finance minister after his recent meetings abroad with other central bank heads.Source: Reuters: Money News | 23 Feb 2009 | 9:15 am Chidambaram favours tax exemption to Rahman's OscarsHome minister P Chidambaram on Monday favoured tax exemption to two Oscars bagged by AR Rahman for Slumdog Millionaire.Source: Daily News & Analysis: Money News | 23 Feb 2009 | 8:59 am Govt to pay 8.5 pct interest rate on EPF for FY09NEW DELHI (Reuters) - The government will maintain an 8.5 percent interest rate on its largest pension fund, subscribed to by over 43 million employees, in 2008/09.Source: Reuters: Money News | 23 Feb 2009 | 8:56 am Rahman’s team celebrates Oscar win in ChennaiChennai: There was wild celebration at A R Rahman’s AM Studios in Kodambakkam, Chennai, when the musician bagged two Oscars—for best original score and best song—a record for any Indian. A group of 50 people including S Sivakumar, chief sound engineer of Rahman, Sami Durai, artists’ coordinator for Rahman’s albums, other staff of the recording studio and students from Rahman’s school K M Music Conservatory watched the 81st annual Academy Awards in a film screening theatre in A M Studios from 6am on Monday. “We are very very happy,” said Sivakumar. “We expected at least one Oscar but we are extremely happy that Rahman sir got two.” The little group, which watched the awards ceremony together, celebrated by cutting a cake immediately after Rahman was pronounced the winner in original score for Slumdog Millionaire as well as for best song for the Jai Ho number in the movie. They also burst crackers and distributed sweets. As Chennai celebrates Rahman’s double-win, a felicitation ceremony to be organized on 1 March by Cine Musicians Union in Chennai for his Golden Globe award for best movie score for Slumdog Millionaire would now turn into a bigger event. “We are very proud of him. As soon as he got the award (Oscars), he praised God. I thank God, too.” said Abu Gabriel, general secretary of Cine Musicians Union. “For his hard-work and talent, he definitely deserves this and more.” The event would see stars like renowned Carnatic vocalist M. Balamuralikrishna, film director K. Balachander, music composer Ilayaraja and singers Shankar Mahadevan, Hariharan and Daler Mehandi. “We have invited all musicians from Delhi, Mumbai, Kolkata, Andhra Pradesh, Kerala, and of course, Tamil Nadu,” Gabriel said. A die-hard fan of Rahman, Harish Venkatraman, who is pursuing his masters in business administration in media and entertainment, is organizing an event in Besant Nagar beach in Chennai this evening. “Along with a few friends, I am planning to set up a wishing booth at the beach, where all Rahman fans could write in their wishes and messages to Rahman and we would present this to Rahman personally once he gets back,” says Venkatraman. “We are also planning to have a small procession at the beach and perhaps we’ll sing Jai Ho as we walk along the beach.” Augustine Paul, who has worked with leading music directors on western chorus works, said: “Rahman is a very good sound engineer by himself. He can beat all the engineers sitting in the room. Even if there is no engineer, he can still finish the recording. He is very fast, is a quick thinker and planner. The good point about him is he hasn’t separated himself from the artistes, doesn’t put on airs and easy to work with.” “He works on different projects simultaneously and has used the technology to the maximum. He composes from different places at different times but gets the work done at his studio here. If there are any changes to be made, it gets done in two minutes and is okayed, no matter where he is,” Paul added. G Kannan, who joined as an assistant sound engineer at A M Studios over a year ago, says that in the intial days he used to get quite tense while working with him. “If he gets an idea, it has to be worked upon quick. One has to keep up the pace with him as he works—he is quite fast. But now, I don’t get that tensed.” Sridhar also mentioned that Rahman is “a little strict” when at work but is otherwise “a very casual guy.” The sound engineers, instrumentalists and other colleagues of Rahman who Mint spoke with were unanimous in saying that Rahman is a “cool guy to work with.” Almost all of them spoke about his humility and said that is one of the characteristics that makes it easy to work with him. “He is a night bird,” said Murthy. “Rahman brought in a great variety in music. Like, he got in the Arabic style in Tamil songs and his style of blending sounds is beautiful.” Peters, who appreciates Rahman for giving the instrumentalists a lot of freedom to play, said: “This (Oscars nomination) is well deserved, there is real hard work but the best part is he maintains his level-headedness. He is full of God and music.” Source: Home - Livemint.com | 23 Feb 2009 | 8:42 am Revenue collection doubles to Rs.6.7 trillion in five yearsGross revenue collection has doubled to Rs.6.7 trillion in the last five years, the government said Monday.Source: IndiaeNews.com: Business News | 23 Feb 2009 | 8:00 am US may take 40% stake in Citi as crisis ragesReuters New York: Citigroup is in talks that could lead to the US government sharply increasing its stake, turning what was once America’s most valuable bank into a virtual ward of the state and a symbol of the raging global financial crisis. The Wall Street Journal said the government, by converting a big chunk of the $45 billion of preferred shares it bought last year in an attempt to stabilise Citigroup, could end up owning as much as 40% of the bank’s common equity. Citi executives hope to limit Washington’s stake to closer to 25%, the paper reported. The preferred shares now amount to a 7.8% stake in the firm. The Financial Times said Citi’s aim was to keep the government’s stake to no more than 40%, or at least below the 50% mark that would spell nationalisation -- something that is anathema to many US politicians, executives and voters. The US Treasury declined to comment on Citigroup but said it would consider converting preferred shares it owns in banks into common equity to strengthen their capital structure. “We are open to considering a request to do so if the institution and its regulator believe it would promote the long-term stability of that institution, and if we believe it’s in the best interest of long-term stability of our economy and financial system,” spokesman Isaac Baker said. The Citi model The proposed Citi plan, which would not cost the taxpayer fresh money but would dilute existing shareholders, could be a model for shoring up other banks, the New York Times reported. “This gives you the sense that authorities’ worries have intensified that problems relating to the U.S. economy may potentially spill over to the rest of the world,” said Sailesh Jha, senior regional economist at Barclays Capital in Singapore. At a summit in Berlin on Sunday, European Union leaders backed a doubling of funds for the International Monetary Fund, whose finances have been stretched by bailouts of governments in Eastern Europe and elsewhere. “We’re dealing with an extraordinary international crisis the likes of which we have not seen for decades, both as regards financial markets and the global economy,” German Chancellor Angela Merkel said. Latvia’s government collapsed on Friday and the currencies of countries such as Poland, the Czech Republic and Hungary have come under severe pressure, hitting millions across the region who have borrowed in foreign currencies such as the euro. Citi’s talks with the government followed a slump in its shares last Friday. Investors drove the stock lower on fears that big US banks could be nationalised as the recession, which began in the housing sector, rages unchecked through the economy. Asian stocks rose and the dollar fell on Monday in response to the reports on relief that the scale of Citi’s problems are at least becoming clearer. US equity futures rose 1.3%. “They are certainly moving much faster this time, and it can be taken as a commitment that some banks are too big to fail and the economic consequences too bad to contemplate,” said Tony Morriss, senior markets strategist at ANZ investment bank in Sydney. But some other market-watchers suspected the rally would be short-lived until investors know for sure how much the crisis will cost taxpayers and shareholders. Gloom in Asia The reports of Citi’s woes coincided with more grim economic news from across Asia. The Thai economy shrank 6.1% between the third and fourth quarters, while Singapore’s prime minister said the export-dependent city state’s economy could contract by more than 5 percent this year. Toyota Motor Co, the world’s largest automaker, plans to cut global production at the parent company level by 20% this year to 6.5 million units as demand plunges, the Nikkei business daily reported. And SFCG Co Ltd, a Japanese lender to smaller companies, failed with debts of $3.6 billion, making it the country’s biggest bankruptcy filing this year measured by the amount of debt. Even though his young administration is still busy fighting fires, US President Barack Obama is also looking ahead to the austerity policies that will be needed to repay the trillions of dollars Washington is pumping into the financial, housing and auto sectors. Obama, who chairs a fiscal responsibility summit on Monday, is expected to unveil a plan to halve the budget deficit by 2013 with a mix of tax increases on wealthier Americans and spending cuts. Private economists project a deficit of $1.5 trillion this year. Obama releases his first budget on Thursday, while Federal Reserve Chairman Ben Bernanke testifies to Congress from Tuesday. Analysts expect him to offer assurances that the central bank, which has slashed interest rates to near zero and flooded markets with dollars, still has the ammunition to pull the economy out of its worst downturn since the 1980s. Source: Home - Livemint.com | 23 Feb 2009 | 7:58 am Areva T&D stock too priceyThe power sector has long been viewed as a haven of relative calm in a stormy market, a belief based on continuing investment and reflected in the Areva T&D India Ltd stock trading at a pricey 19 times trailing earnings. The company’s earnings for the December quarter, however, leave much to be desired. Profit after interest but before exceptional items fell to Rs112.45 crore compared with Rs138.49 crore in the year-ago period, a drop of 18.8%.  For the full year, profit after interest but before exceptionals went up from Rs343 crore to Rs375 crore, a rise of Rs32 crore, but Rs26 crore of the increase in post-tax profits is on account of a change in the company’s accounting policy. Similarly, while net sales for the full year increased by Rs634 crore or 31%, a change in revenue recognition norms accounted for Rs210 crore of the increase. While it’s true that power utilities continue to do well, industrial investment has obviously slowed drastically and Areva T&D’s industrial business has been affected. Also See Expensive Bet (Graphic) The fourth quarter has been a game-changer, seen from the fact that the company’s profit after interest but before exceptionals, which was flat in the September quarter, dropped so precipitously in the December quarter. The company’s order backlog was Rs4,095 crore at the end of December, lower than what it was at the end of September. When announcing its third quarter results, the company had said its order intake for the nine months ending September was 113% higher than that for the corresponding period a year ago. For all of 2008, however, the company says order growth is down to 37%. ABB Ltd had also reported a slump in order intake in the fourth quarter. Looking head, Areva T&D may well benefit from lower raw material costs and higher volumes as increased capacity comes on stream in April. But in view of its dismal results for the last quarter and the slowdown in order intake, which will show up as lower revenue growth in future, there is no reason for it to trade at such a high valuation. Nor is there any reason why it should trade at a premium to ABB. Write to us at marktomarket@livemint.com Graphics by Ahmed Raza Khan / Mint Source: Home - Livemint.com | 23 Feb 2009 | 6:37 am Infosys eyes two European firms - reportMUMBAI (Reuters) - Infosys Technologies is eyeing European software firms BCC and Ciber Novasoft among others as potential acquisitions, the Economic Times said on Monday citing two people familiar with the development.Source: Reuters: Money News | 23 Feb 2009 | 5:55 am Reliance to acquire oil storages in U.S. - co. officialNEW DELHI (Reuters) - Reliance Industries will soon acquire clean storages in the U.S. East Coast and Gulf Coast to sell huge volumes of fuel, a senior official said, putting in place its global infrastructure that will cement its swing-supplier role.Source: Reuters: Money News | 23 Feb 2009 | 3:51 am Sugar price rise to hurt cola majors, biscuit cosNew Delhi, Feb. 22 The cola majors Pepsi and Coca-Cola India stand to lose Rs 300 crore or more annually from the recent hardening of sugar prices.Source: Business Line - Home Page | 23 Feb 2009 | 12:00 am Low inflation and low employmentThe classic definition of inflation is too much money chasing too few goods. If the inflation rate is falling, by this definition it follows that ‘too little money’ is chasing the goods. Then, a falling inflation rate may not be suchSource: Business Line - Home Page | 23 Feb 2009 | 12:00 am Firstsource sees 15% revenue from India in 2 yrsNew Delhi, Feb. 22 Business process outsourcing company Firstsource Solutions Ltd expects the Indian market to account for nearly 15 per cent of its revenues in the next two years.Source: Business Line - Home Page | 23 Feb 2009 | 12:00 am Gold may test resistance levelsGold futures, pushed past $1,000 a troy ounce, the highest point in nearly a year, as continued weakness in stocks and broader economic concerns sent investors in search of a haven. A stabilisation in stocks would likely lead to profit-taking in theSource: Business Line - Home Page | 23 Feb 2009 | 12:00 am EPF interest rate to remain at 8.5%New Delhi, Feb. 22 The Central Board of Trustees (CBT) of the Employees Provident Fund (EPF) has recommended a rate of interest of 8.5 per cent for 2008-09.Source: Business Line - Home Page | 23 Feb 2009 | 12:00 am Why the hurry to marry Satyam off?The government appointed Board of Directors of Satyam Computer Services has made all the right moves in the last one month in its effort to first save the company from collapse, and then, get it back on its feet. Operating in an adverse atmosphereSource: Business Line - Home Page | 23 Feb 2009 | 12:00 am Market to maintain status quo until push from global cuesAfter dubbing the vote on account as “disappointing”, the market tumbled last week. The global markets also did not provide any positive signal. This week, the local equity market is unlikely to spring a positive surprise unless theSource: Business Line - Home Page | 23 Feb 2009 | 12:00 am Foreign trade norms may be relaxedNew Delhi, Feb. 22 Exporters, dismayed by lack of any substantive stimulus package, could heave a sigh of relief as the Union Commerce and Industry Minister, Mr Kamal Nath, might unveil an interim Foreign Trade Policy (FTP) for 2009-10 either onSource: Business Line - Home Page | 23 Feb 2009 | 12:00 am BSNL launches 3G services in ChennaiChennai, Feb. 22 BSNL (Bharat Sanchar Nigam Ltd) launched 3G mobile services from Chennai onSource: Business Line - Home Page | 23 Feb 2009 | 12:00 am Equity funds sitting on Rs 20,000-cr cash chestEquity mutual funds are choosing to hold sizeable cash positions in view of current market uncertainties.Source: Business Line - Home Page | 23 Feb 2009 | 12:00 am Pesky bank loan recovery agents are fading fastThe notorious and pesky tribe of bank loan recovery agents - including over-the-edge types has shrunk sharply, as of now.Source: Daily News & Analysis: Money News | 22 Feb 2009 | 10:56 pm 'Our distributors will get more support for brand-building'Panasonic India launched Econ range of energy-efficient and eco-friendly air conditioners (ACs) for the high-premium and mid-economy segments.Source: Daily News & Analysis: Money News | 22 Feb 2009 | 10:41 pm Bond market looks to RBI for a fillipBond traders are particularly disappointed with the higher-than-expected cut-off at the open market operations on Thursday.Source: Daily News & Analysis: Money News | 22 Feb 2009 | 10:36 pm Wall Street trading gets Mumbai-edEven as the Obama administration in the US frets over H1B immigrants, one more Wall Street job has just got offshored - to the Chandivali suburbSource: Daily News & Analysis: Money News | 22 Feb 2009 | 10:29 pm Bhel rig JV stalled with no ally in sightBhel's plan of entering into a joint venture for refurbishing, manufacturing and supplying oil rigs has been stalled for want of a partner.Source: Daily News & Analysis: Money News | 22 Feb 2009 | 10:27 pm Airline costs halve in a year, but that's only half the storyIf you go by an airline chief's estimate, the cost of running an airline has fallen by over 50% compared to last year's cost.Source: Daily News & Analysis: Money News | 22 Feb 2009 | 10:25 pm Two GoMs set up on the issue at different times set to be mergedThe Department of Telecommunications and the Defence ministry are expected to finalise the MoU on the modalities for spectrum vacation on Monday.Source: Daily News & Analysis: Money News | 22 Feb 2009 | 10:18 pm Gold to keep shining on weakness in Re, US economic dataThe risk aversion levels skyrocketed, sending bullion to new highs in the domestic markets on the back of weakness in the rupee.Source: Daily News & Analysis: Money News | 22 Feb 2009 | 10:18 pm Markets heavily short, volatility expectedThe Nifty fell over 7% (210 points) last week to close at 2736 on account of weak global markets that closed much below their October lows.Source: Daily News & Analysis: Money News | 22 Feb 2009 | 10:12 pm Nandigram, Singur take toll of Buddha's Bengal dreamPolitical crises following plans to industrialise parts of Nandigram and Singur saw West Bengal slip to 13th position in 2008 from fourth in 2007 in a ranking of Indias most investment-centric states, according to a paper published by the Associated Chambers of Commerce and Industry of India (Assocham).Source: Business Standard | Front Page Headlines | 22 Feb 2009 | 6:35 pm Keep buying US treasuries: Clinton to ChinaUS Secretary of State Hillary Clinton urged China to continue buying Treasury bonds to help finance President Barack Obamas stimulus plan.Source: Business Standard | Front Page Headlines | 22 Feb 2009 | 6:34 pm Govt may not ease norms for foreign banksIndia will not allow a greater role for foreign banks in the Indian banking system when the review of the next round of banking reforms begins later this year because of uncertainties surrounding the current global financial crisis.Source: Business Standard | Front Page Headlines | 22 Feb 2009 | 6:32 pm Ethanol blending runs on empty as supplies dry upA shortfall in production has thrown out of gear the governments plans to blend ethanol with petrol. The government made it mandatory to blend petrol with 5 per cent ethanol 16 months ago but the plan never stabilised and the October-2008 deadline to raise it to 10 per cent has been missed.Source: Business Standard | Front Page Headlines | 22 Feb 2009 | 6:31 pm Govt leadership: no role models hereIt used to be that we often heard the lament, “If only government could be more like business...” Those days are over—and how. Click here to watch video But if recent events in Washington are in any way indicative, government doesn’t yet have a lock on the kind of effective leadership characteristic of business management at its best. Consider just these few key examples: The US department of the treasury bemoaned the complexity of the problem it was supposed to be solving; the vice-president announced that every government plan has a 30% chance of failure; and the president tried to negotiate a course between lambasting the past like a candidate on the campaign trail and heralding the future like an elected leader with a vision.  First, business leaders gain nothing by showing uncertainty and indecision. Look, every leader grapples with a monster of a challenge at some point or another. And every leader in this predicament feels unsure about which direction to take and overwhelmed by the complexity of the situation. That’s only normal. What’s not normal—or what shouldn’t be in business situations—is his taking those feelings public. A leader’s job is to steer and inspire. That’s why, when a difficulty arises, the first thing you need to do is to gather your trusted advisers and wrestle the challenge to the ground. Probe it. Debate it. Work it over from every angle and, after you’ve gone as far as you can with the available information, formulate the best plan for moving the business forward. Also See Jack and Suzy Welch’s earlier videos Then—and only then —should you speak out, because then and only then will you have the ability to communicate as a leader must. You need to be able to send the message: “Here’s what we’re going to do and why. Here’s what’s in it for you, and here’s what we’re going to look like when we get to the other side.” Such an approach doesn’t conceal anything, by the way. Your people know perfectly well how complicated the situation is; they don’t need or want you to tell them. They need and want you to do your job by finding the solution, explaining it and energizing everyone to work towards its success. Second, business leaders undermine the possibility of success when they talk about the risk of failure. There was a stunning moment in CBS anchorwoman Katie Couric’s recent interview with Chesley B. Sullenberger III, the pilot who landed US Airways flight 1549 in the Hudson River. Asked whether he was at any point afraid of not making it, Sullenberger simply replied, “No, I was sure I could do it.” Obviously, given all his years of experience, Sullenberger knew that a water landing was tremendously risky. And yet he showed the best kind of leadership by assuming a can-do mindset. Business leaders too know that any strategy they adopt may fail. But why go there? If you harp on the chances that things won’t work out, you’ll only be practising self-defensive, dysfunctional management. Such equivocation enervates everyone. Your team members won’t give it their all if they sense that you’re prepared to say, “Well, I told you it might not work out.” They know they can’t win unless the leader believes they can. Finally, business leaders cannot indulge bureaucratic data dumpers. Part of a leader’s job, of course, is to act as a sounding board for his direct reports. But if you want to build your managers’ leadership skills, make sure they don’t bring you stacks of PowerPoint slides describing their problems in bone-crushing detail. Demand that they sort through the data with their teams and bring you their decisions, with the rationales for them stated in unambiguous terms. The reason for this is simple: If you’ve got a manager working for you who is paralysed by information, options and obstacles, you can be sure that his people are confused and demoralized, and nothing good is happening on his watch. The only way to break that cycle is by not tolerating leaders in your organization who obfuscate their choices with data in order to avoid taking action. Our purpose in outlining these principles is not to haul out the well-worn line, “If only government were more like business.” Rather, with the new business-is-out mentality taking hold, our message is for leaders who might be thinking about taking their cues from government. Given recent events, we can only advise you to vote no. ©2009/BY NYT SYNDICATE Write to Jack & Suzy Jack and Suzy are eager to hear about your career dilemmas and challenges at work, and look forward to answering some of your questions in future columns. Jack and Suzy Welch are the authors of the international best-seller, Winning. Their latest book is Winning: The Answers: Confronting 74 of the Toughest Questions in Business Today. Mint readers can email them questions at winning@livemint.com Please include your name, occupation and city. Only select questions will be answered. Source: World Business - Livemint.com | 22 Feb 2009 | 6:16 pm Mobile surveillance unit launched in DelhiSecurity solutions provider Vision Group Sunday launched a mobile surveillance unit, which will help security officials quickly deploy surveillance cameras in emergency situations.Source: IndiaeNews.com: Business News | 22 Feb 2009 | 3:30 pm Kolkata East-West Metro to go under river HooghlyThe proposed East-West Metro Railway (EWMR) in Kolkata would cross the Hooghly river 32 metres below the water level.Source: IndiaeNews.com: Business News | 22 Feb 2009 | 2:30 pm Trinamool calls Pranab spokesman of CPI-MStung by External Affairs Minister Pranab Mukherjee's oblique criticism of West Bengal's opposition leader Mamata Banerjee, her Trinamool Congress Sunday dubbed him as a spokesman of the state's ruling Left Front major Communist Party of India-Marxist (CPI-M).Source: IndiaeNews.com: Business News | 22 Feb 2009 | 2:00 pm BSNL launches 3G services, to charge 50 paise per callTamil Nadu Chief Minister M. Karunanidhi Sunday inaugurated the third generation (3G) services of the state-run Bharat Sanchar Nigam Ltd (BSNL), and said the subscribers of the telecom major would be able to make long distance calls for 50 paise per minute from next month under the proposed 'India-Golden 50' scheme.Source: IndiaeNews.com: Business News | 22 Feb 2009 | 1:30 pm
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