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Cost control reason for RILRPL merger: HP RaninaHP Ranina, Advocate, Supreme Court, believes the reason for the merger is cost saving but since RPL is in the SEZ there may not be these type of advantages at the moment. The real issue is cost rationalization and reduction in the cost to a great extent, which will increase shareholder value. That is the real reason for this merger.\"Source: Moneycontrol Top Headlines | 27 Feb 2009 | 6:24 pm RIL merger negative for RPL shareholders: SP TulsianSP Tulsian, sptulsian.com doesnt see RILRPL merger news a reason for cheer for shareholders of Reliance Industries. According to him, RIL shares could rise by about Rs 50 or cross Rs 1,300. However, he was quick to add that this step will disappoint shareholders of Reliance Petroleum. \"One can see the price correcting to about Rs 70.\"Source: Moneycontrol Top Headlines | 27 Feb 2009 | 6:16 pm Lending to clients between 13% and 14%: Tourism Fin CorpArchana Capoor, Chairperson and MD, Tourism Finance Corporation, said it is lending between 13% and 14%. Capoor does not see demand shrinking going forward.Source: Moneycontrol Top Headlines | 27 Feb 2009 | 5:50 pm JETKF codesharing pact still groundedThe muchhyped codesharing agreement between Jet Airways and Kingfisher Airlines has not taken off. CNBCTV18s Neha Pandey reports on how both airlines are going slow on the alliance during the tough times.Source: Moneycontrol Top Headlines | 27 Feb 2009 | 5:29 pm Asian Hotels still doing 70% occupancy: Sushil GuptaSushil Gupta, Managing Director, Asian Hotels, said Mumbai terror attack has affected the hotel industry very badly last quarter. \"February is definitely better than January but overall it is down but not too weak.\" But he was quick to add that hotels are still doing 70% occupancy.Source: Moneycontrol Top Headlines | 27 Feb 2009 | 5:29 pm RIL to consider merger with RPL on March 2The Reliance Industries Limited Board will meet on March 2 to consider merger with RPL.Source: Moneycontrol Top Headlines | 27 Feb 2009 | 5:11 pm Forces at work to delay 3G auction, Sunil Mittal allegesThe 3G auction that was to take place on January 16 has been delayed. Sunil Mittal, Chairman and MD, Bharti Enterprises, termed it as unfortunate. He alleges that there have been forces at work to delay the 3G auction process.Source: Moneycontrol Top Headlines | 27 Feb 2009 | 4:47 pm Wineries raise toast to being recession proofOne industry that is recession proof is the wine industry, which is in its budding stage. The industry has grown substantially and is optimistic on the growth going ahead as well.Source: Moneycontrol Top Headlines | 27 Feb 2009 | 4:47 pm See good results this year: Mcleod Russelya Khaitan, MD, McLeod Russel, said the company will end this year with a strong balance sheet in terms of figures. I can optimistically say we are looking at the next few years very positively,\"Source: Moneycontrol Top Headlines | 27 Feb 2009 | 4:32 pm Cotton prices had ve impact on GDP: Paradigm Commodity AdvBiren Vakil, Commodity Consultant, Paradigm Commodity Advisors, said cotton prices had a negative impact on GDP. According to Vakil, had the GDP number taken into account grains, pulses, cotton, and oilseeds in totality year on year, the numbers would have been worse.Source: Moneycontrol Top Headlines | 27 Feb 2009 | 3:31 pm BSE Sensex drops 0.7 pct, posts 2nd monthly fallMUMBAI (Reuters) – The BSE Sensex fell 0.7 percent on Friday, posting its second monthly drop, as grim growth data indicated the global financial crisis was damaging the domestic economy more than expected.Source: Reuters: Money News | 27 Feb 2009 | 1:37 pm India industry bodies seek rate cuts to revive growthNEW DELHI (Reuters) - India's Reserve Bank of India (RBI) should cut key policy rates to revive the country's slowing economy hit by the global slump and declining domestic demand, industry bodies said on Friday.Source: Reuters: Money News | 27 Feb 2009 | 1:35 pm STOCKS NEWS US-Banks fall in premarket after Citigroup news - Forbes
Source: Google News India - Business | 27 Feb 2009 | 1:25 pm BSNL launches 3G services in 12 cities - Hindu
Source: Google News India - Business | 27 Feb 2009 | 1:23 pm Obama to eliminate tax benefits for cos outsourcing jobs - Hindu
Source: Google News India - Business | 27 Feb 2009 | 1:23 pm Reliance Industries, Reliance Petroleum mull merger - Economic Times
Source: Google News India - Business | 27 Feb 2009 | 1:16 pm Tata Steel eyes 1.6m tonne sales in Q4 FY09 - Moneycontrol.com
Source: Google News India - Business | 27 Feb 2009 | 1:07 pm 'Healthcare - India's cure pill for global economic crisis'The healthcare sector will be India's 'cure pill' for the ailing global economy, says the chairperson of the healthcare major Apollo hospitals.Source: IndiaeNews.com: Business News | 27 Feb 2009 | 1:02 pm Manganese plenty in ocean off GoaResearchers with the National Institute of Oceanography (NIO) claim to have discovered a large presence of manganese modules off Goa's shore.Source: IndiaeNews.com: Business News | 27 Feb 2009 | 1:02 pm Mukesh Ambani's two Reliance companies to mergeThe $34.5-billion Reliance Industries, India's largest private sector company, Friday announced that it will consider a proposal next week to merge another group company into itself to bring in operational efficiency.Source: IndiaeNews.com: Business News | 27 Feb 2009 | 1:02 pm Patel lays foundation of new terminal at Surat airportCivil Aviation Minister Praful Patel Friday laid the foundation of a new terminal at Surat airport, the eighth such terminal project in the country since Feb 20.Source: IndiaeNews.com: Business News | 27 Feb 2009 | 1:01 pm Rupee closes at new lowThe Indian rupee closed at a new low of Rs.51.10/12 against one US dollar as importers stepped up demand for the greenback and foreign investors pulled out $59.20 million from capital markets during the day.Source: IndiaeNews.com: Business News | 27 Feb 2009 | 1:01 pm Bond yields drop, low GDP data spurs rate cut hopesMumbai: Bond yields fell to their lowest in almost two weeks on Friday after data showed economic growth slumped to a near six-year low in the December quarter and raised expectations of early rate cuts. The yield on the 8.24% bond maturing in 2018 ended at 6.34%, off an early trough of 6.30%, its lowest since 16 February, but 17 basis points (bps) lower than Thursday’s close of 6.51%. Volume on the Reserve Bank of India’s trading platform was heavy at Rs93.25 billion ($1.8 billion), with the 2018 bond the most heavily traded. “The low GDP data has heightened expectations that a rate cut is round the corner,” a dealer with a private bank said. Country’s economy grew 5.3% in the December quarter from a year earlier, slowing sharply from the previous quarter’s 7.6% as the global economic crisis cut demand and exports, official data showed. Analysts said the weak growth data made it unlikely expansion in the full fiscal year to end March would reach the government’s estimate of 7.1%, and could encourage the apex bank to cut policy rates as early as this weekend. The RBI kept its key rates unchanged at its policy review on 27 January, after lowering them and banks’ cash reserve requirements aggressively since mid-October. The repo rate at which the RBI lends to commercial banks, has been cut by 350 bps to 5.5% while the cash reserve ratio, the proportion of deposits that banks keep with the apex bank on deposit, has been lowered by 400 bps. Traders had also awaited a bond auction announcement during the session. After market hours, the government said it will borrow Rs120 billion through a bond auction on 6 March. Source: LatestNews-Home - Livemint.com | 27 Feb 2009 | 1:00 pm Sensex fails to retain 8900; Q3 GDP disappoints - Economic Times
Source: Google News India - Business | 27 Feb 2009 | 12:58 pm Passengers to pay for Mumbai airport modernisationThe government approved collection of Rs 100 from outbound domestic passengers and Rs 600 from international passengers from April 1.Source: Daily News & Analysis: Money News | 27 Feb 2009 | 12:58 pm GDP growth dips to 5.3% in third quarterNew Delhi: India’s economic growth slowed much more than expected in the December quarter, slumping to its weakest pace in almost six years and raising expectations the central bank would cut rates, possibly as soon as this weekend. Both manufacturing and farm output in Asia’s third-biggest economy dropped from a year earlier and the data prompted a weak share market to extend losses to more than 2%, which in turn pushed the rupee to a record low. India’s figures provide the latest evidence of the impact in Asia of the global financial crisis that has already forced Japan, Singapore and Hong Kong into recession and pushed Thailand and South Korea into economic contractions. “We have been calling for significant rate cuts for a long time. We are looking for a 100 basis points cut as soon as probably tomorrow in the repo rate and reverse repo rate,” said Sailesh Jha, senior regional economist at Barclays Capital. “After seeing this number, I think the market is now pricing in a 100 basis points cut.” The economy in the December quarter grew by 5.3% from a year earlier, below forecasts of 6.2% and the previous quarter’s growth of 7.6%. It marked the slowest growth since the March quarter of 2003, and while India is far from recession many analysts say growth is grinding down to level that threatens jobs and a rise in poverty, underlining the need for more action by policy makers to stimulate activity. The central bank cut its main lending rate, the repo rate, by 350 basis points to 5.50% in four moves between 20 October and 2 January, but it held rates steady at a review in late January because banks were yet to pass on the full extent of its rate cuts. Dismal data India’s economy has lost altitude from growth rates of 9.0% or higher in the past three fiscal years, and economists said the government’s forecast of 7.1% growth in the 2008/09 fiscal year ending 31 March would not be met. ”The overly optimistic projection now needs to be revised downward,” Moodys Economy.com economist Sherman Chan said. ”The sharper-than-expected deceleration in the December quarter perhaps makes up for the slowdown that should have taken place in the September quarter when the rest of the region began to show strong signs of fatigue,” she said in a report. But junior finance minister Pawan Kumar Bansal said the government still expected growth of around 7% in 2008/09, and had anticipated December quarter growth would be below market expectations. Policy makers and analysts say India needs to sustain growth of 8 to 9% to make inroads against mass poverty and to promote employment in the country of more than a billion people. If economic expansion slips below 6%, as some economists expect in 2009/10, it could lead to more unemployment. The Labour Ministry has estimated about a half a million jobs were lost in the December quarter in small businesses, which account for more than 60% of economic activity. Challenging Times The manufacturing sector fell 0.2% in the October-December quarter from a year earlier. The farm sector, which provides a livelihood for some 60% of Indians, contracted an annual 2.2%. Analysts were surprised by the contraction in farm sector growth, with some expecting the numbers would eventually be revised up, but said the overall picture remained grim. ”Whatever the government is doing is not going to be very effective as large-scale demand stimulus world over has not proved to be effective in restoring business confidence,” said Rupa Rege Nitsure, chief economist at Bank of Baroda in Mumbai. ”Eventually interest rates are going to come down but the Q1 and Q2 of fiscal year 2009/10 are going to be very challenging for India.” The government has taken a series of steps including sharp factory gate duty and service tax cuts, announced extra spending to boost demand and protect faltering growth, but policy makers admit that the full impact of the crisis is yet to unfold. The Bombay stock market closed down 0.7%, as expectations for another rate cut lifted sentiment to raise prices from intraday lows. The rupee though hit a record low of 51 per dollar. Source: Home - Livemint.com | 27 Feb 2009 | 12:49 pm Indian rupee falls to record low past 51/dlr - Reuters India
Source: Google News India - Business | 27 Feb 2009 | 12:45 pm Oil prices slide in Asian trade!Oil prices slid in Asian trade on Friday as investor pessimism returned after the release of more weak US economic data, dealers said.Source: Zee News : Business | 27 Feb 2009 | 12:35 pm IMF seeks cash boost for crisis lending!IMF has announced it will seek a temporary cash injection from members to boost its lending power to countries struggling with global crisis.Source: Zee News : Business | 27 Feb 2009 | 12:35 pm Sensex opens at 8,867.74 points !The Sensex on Friday opened lower by 87 pts in early morning trade on profit-selling by funds.Source: Zee News : Business | 27 Feb 2009 | 12:35 pm New US home sales dip to record low!New home sales in US plunged 10.2% in Jan to a seasonally adjusted annual rate of 309,000 units.Source: Zee News : Business | 27 Feb 2009 | 12:35 pm GDP growth slows down to 5.3% in Q3!Indian economic growth has slowed down drastically to 5.3 percent in the third quarter of fiscal 2008-09 against 8.9 percent in the same period a year ago owing to the cut in demand and exports.Source: Zee News : Business | 27 Feb 2009 | 12:35 pm BSNL to slash call rates!State-run BSNL is reducing local call charges from March 1 to Rs 0.33 paise a minute and STD rates to 50 paise a minute in its revised landline/WLL tariff.Source: Zee News : Business | 27 Feb 2009 | 12:35 pm Rupee hits all-time low against US dollar!The Indian rupee on Friday depreciated to an all-time low of Rs 50.69 against US dollar in early trade on continued capital outflow by foreign funds and increased dollar demand from importers.Source: Zee News : Business | 27 Feb 2009 | 12:35 pm Japan falls to record low in industrial output!Japan`s factory output falls sharply as recession deepens in world`s 2nd largest economy.Source: Zee News : Business | 27 Feb 2009 | 12:35 pm Close: Low GDP drags Sensex by 0.7%, banks recoverNew Delhi: Markets continued to trade low under selling pressure but recovered some of the day’s lows to end 0.71% down. The Bombay Stock Exchange benchmark Sensex slid as investors off-loaded stocks on low GDP rate and weakening rupee. The government today released India’s GDP for third-quarter ended 31 December, 2008 - economy grew by only 5.3% against 7.6% (QoQ) and 8.9%(YoY). It is touted as the slowest economic growth in over five years. In addition the domestic currency suffered a sharp decline with convertible rate of almost Rs52/ dollar, hence flaming worries that foreign funds may divert from buying stocks in India. Baking and FMCG sectors regained by 1.6% and 0.14% respectively but other indices traded in red with realty and oil and gas losing the most at 2.9% and 2% each. Markets opened in negative today as investors waited for GDP numbers before buying fresh positions. The 30-share BSE index then tumbled by 260 points in session after noon but recovered to close at 8,891.61 or 63.25 points down and 50-share NSE Nifty ended 22 points lower at 2,763.65. Tata Steel surged on the BSE index by 5.6% to Rs172.35 after the company announced better than expected quarterly results. Other gainers were Housing Development and Finance Corp by 4.75% to Rs1,269.20, HDFC Bank by 1.35% to Rs884.8, ICICI Bank by 1.03% to Rs328.10, Hindustan Unilever by 0.30% to Rs253.80, State Bank of India by 0.29% to Rs1,027.10 and Larsen & Toubro by 0.11% to Rs611.45. Ranbaxy Laboratories was one of the top loser, fell by 4.80% at Rs161.80. Stockholders reacted to charges of data falsification levied on the company by the US Food and Drug Administration (USFDA). Grasim Industries led the decline by 5.99% at Rs1,371.50, followed by Wipro by 3.98% at Rs207.35, Reliance Infra by 3.71% at Rs490.60, ACC Ltd by 3.55% at Rs539.80, Mahindra and Mahindra by 3.38% at Rs309.90 and ONGC by 3.37% at Rs691.15. Also there was not much positive indication from global markets – European markets opened negative as pharma stocks tumbled on Obama’s stringent healthcare plans. Japan’s stocks gained 1.5% with a brief boost to banks but Hang Seng fell by 0.7% on Wall Street loss. Source: Home - Livemint.com | 27 Feb 2009 | 12:34 pm West Bengal, Emami in pact for pulp, paper projectWest Bengal Industrial Development Corp (WBIDC) and the city-based Emami Group Friday inked a pact for setting up a greenfield integrated pulp and paper project at an investment of Rs.22 billion (Rs.2,200 crore).Source: IndiaeNews.com: Business News | 27 Feb 2009 | 12:32 pm Rae Bareli to emerge as best district in Uttar Pradesh: Rahul GandhiCongress general secretary Rahul Gandhi Friday said that he will not leave any stone unturned to make Rae Bareli the best district in Uttar Pradesh.Source: IndiaeNews.com: Business News | 27 Feb 2009 | 12:32 pm BSNL launches 3G services in 12 citiesState-run telecom operator Bharat Sanchar Nigam Ltd (BSNL) Friday simultaneously launched its much-awaited third generation (3G) mobile services in 12 cities.Source: IndiaeNews.com: Business News | 27 Feb 2009 | 12:32 pm Indian engineering exporters bank on Africa, Southeast AsiaAt a time when the world is reeling under the economic meltdown, exporters of engineering goods in the country are looking to Africa and Southeast Asia for salvation.Source: IndiaeNews.com: Business News | 27 Feb 2009 | 12:31 pm Over a million attend Taj cultural fest, but many unhappyMore than a million people attended the 10-day cultural extravaganza Taj Mahotsava that ended here Friday, but many were unhappy as it did not showcase traditional culture or have sessions on conservation of heritage buildings.Source: IndiaeNews.com: Business News | 27 Feb 2009 | 12:31 pm Flying out of Mumbai will cost more - Economic Times
Source: Google News India - Business | 27 Feb 2009 | 12:27 pm IBM still considers Satyam a worthy competitorIt may have been rocked by the country's biggest-ever corporate fraud, but Satyam Computer still figures among the companies considered worthy rivals to global technology giant IBM.Source: Daily News & Analysis: Money News | 27 Feb 2009 | 12:21 pm Reliance Ind to recommend unit amalgamationMUMBAI (Reuters) - Reliance Industries Ltd said on Friday its board will meet on March 2 to consider and recommend the amalgamation of its unit Reliance Petroleum Ltd with itself.Source: Reuters: Money News | 27 Feb 2009 | 12:13 pm Will economy record 7.1 per cent growth in current fiscal? - Economic Times
Source: Google News India - Business | 27 Feb 2009 | 12:09 pm ANALYSIS - China retailers in price war with foreign rivalsBEIJING (Reuters) - Foreign-owned retailers and restaurant chains in China are resorting to steep discounting to encourage consumers to part with their cash as the economy slows, a move that is likely to put further pressure on local rivals.Source: Reuters: Money News | 27 Feb 2009 | 12:05 pm RIL, RPL board to discuss merger plans on 2 MarchMumbai: The boards of Mukesh Ambani promoted Reliance Industries Ltd. (RIL) and Reliance Petroleum Ltd. (RPL) will meet on Monday to consider the merger of the two entities. In two separate filings, both the companies said a meeting of the board of directors will be held on 2 March, to consider and recommend the amalgamation of Reliance Petroleum and Reliance Industries, the country’s most valued firm in terms of market capitalization. Reliance Petroleum is an only-for-export refinery and its 5,80,000-barrels-per-day only for exports refinery at Jamnagar in Gujarat was commissioned last month. Source: LatestNews-Home - Livemint.com | 27 Feb 2009 | 12:05 pm GMR, Malaysia Airlines to set up aircraft repair facility - Economic Times
Source: Google News India - Business | 27 Feb 2009 | 11:58 am European shares fall on fears over drugmakers’ profitsParis: European stocks slid in early trade on Friday, wiping out nearly all the previous session’s gains, with pharma shares falling on fears the US budget proposal could curb profits. US President Barack Obama’s budget proposal, unveiled on Thursday, includes a plan to expand healthcare coverage and curb costs, calling for cutting Medicare payments to private insurers, letting consumers buy cheaper medicines and preventing drug companies from making deals that block generic competition. AstraZeneca shed 5.6%, Sanofi-Aventis dropped 4.7% and Roche lost 2.2%. “The Obama plan will trim drug prices but this will take time and could be compensated by gains in volumes because the idea is to widen the access to health care. There is nothing alarming in this, the market is overreacting,” said one Paris-based analyst. At 0932 GMT, the FTSEurofirst 300 index of top European shares was down 2% at 718.08 points. The index, which had gained 2.3% on Thursday, is on track to record a loss of 10% in February - the benchmark’s sixth consecutive month of losses. The banking sector was also on the downside, with Lloyds Banking Group down 15% after it unveiled a massive loss for 2008 and said it had not yet finalised details of its plan to put billions of pounds of assets into a UK government-backed insurance scheme. “Whilst it is near certain that Lloyds will participate in the scheme and that an announcement is imminent, until we see the terms agreed this may throw a few question marks over the cost of participating for other banks,” said Martin Slaney, head of derivatives at GFT. The DJ Stoxx banking index was down 2.9%, with Santander down 2.7%, Deutsche Bank down 4.1% and BNP Paribas down 3.1%. Around Europe, UK’s FTSE 100 index was down 1.5%, Germany’s DAX index down 1.9%, and France’s CAC 40 down 1.7%. The financial sector was also in the spotlight after news the US government and Citigroup reached a deal in which the government would substantially raise its stake in the bank in a bid to stabilize the lender’s balance sheet. However the news was eclipsed by Fannie Mae’s massive loss. The government-controlled mortgage giant seen by the US administration as a key conduit to stabilize the housing market, reported a $25.2 billion fourth-quarter loss, forcing it to ask for $15.2 billion from the US Treasury. Grim news also came from the macro side, with Japan’s factory output falling by a record 10% in January, in line with market expectations, dragging down the number of new jobs on offer as well as spending by households, while India’s economy slowed more than expected in the October to December quarter, with annual growth falling to 5.3% from 7.6% the previous quarter. Source: Home - Livemint.com | 27 Feb 2009 | 11:46 am L&T appoints Citi, Nomura on Satyam - sourcesMUMBAI (Reuters) - Larsen & Toubro has appointed Citigroup and Nomura as advisers on a potential deal for Satyam Computer Services, three banking sources with knowledge of the deal said on Friday.Source: Reuters: Money News | 27 Feb 2009 | 11:45 am Infosys sees slow tech spending amid global slumpBangalore: Infosys Technologies, India’s No. 2 outsourcer, expects slow IT services business for the foreseeable future as the global economic slump forces clients to delay technology spending, its chief executive said. Kris Gopalakrishnan also told reporters on Friday the Nasdaq-listed Infosys would hand staff only minimum annual wage rises in April as it looks to rein in costs in the face of slowing earnings growth. “This is going to be a prolonged downturn,” he said, referring to recessions in major markets around the world, adding India’s software sector may see some stability in 2010 on the back of a possible recovery in the global economy. India’s large pool of English-speaking engineers and cheaper wages have helped attract outsourcing from Western firms such as Citigroup, General Electric, Qantas and Airbus. But a recession in the United States, which accounts for more than half the sector’s revenue, and turmoil in the global financial sector have halted the sector’s scorching pace of growth and battered stocks. Revelations of a massive accounting fraud at Satyam Computer Services Ltd, India’s fourth-ranked software services firm, further dented prospects for the export-driven sector. “The environment continues to be challenging,” Gopalakrishnan said. “The feedback we are getting from clients are that the budgets are going to be down, in some cases significantly down,” he said of likely technology spending by the firm’s customers. “They are also saying that when the budgets are released there will be a delay in spending.” India’s exports of software and services in the year to March will be sharply below an earlier forecast, expanding 16-17% to about $47 billion, the National Association of Software and Service Companies said earlier this month. On US President Barack Obama’s pledge on Tuesday to end tax break for companies that send US jobs overseas, Gopalakrishnan said the Indian IT companies would wait to see how the proposal was implemented. “My take on it is of course protectionism will only prolong the downturn,” he said. “This is a challenge which we all have to face collectively.” Source: Tech News - Livemint.com | 27 Feb 2009 | 11:35 am Infosys sees slow tech spending amid global slumpBangalore: Infosys Technologies, India’s No. 2 outsourcer, expects slow IT services business for the foreseeable future as the global economic slump forces clients to delay technology spending, its chief executive said. Kris Gopalakrishnan also told reporters on Friday the Nasdaq-listed Infosys would hand staff only minimum annual wage rises in April as it looks to rein in costs in the face of slowing earnings growth. “This is going to be a prolonged downturn,” he said, referring to recessions in major markets around the world, adding India’s software sector may see some stability in 2010 on the back of a possible recovery in the global economy. India’s large pool of English-speaking engineers and cheaper wages have helped attract outsourcing from Western firms such as Citigroup, General Electric, Qantas and Airbus. But a recession in the United States, which accounts for more than half the sector’s revenue, and turmoil in the global financial sector have halted the sector’s scorching pace of growth and battered stocks. Revelations of a massive accounting fraud at Satyam Computer Services Ltd, India’s fourth-ranked software services firm, further dented prospects for the export-driven sector. “The environment continues to be challenging,” Gopalakrishnan said. “The feedback we are getting from clients are that the budgets are going to be down, in some cases significantly down,” he said of likely technology spending by the firm’s customers. “They are also saying that when the budgets are released there will be a delay in spending.” India’s exports of software and services in the year to March will be sharply below an earlier forecast, expanding 16-17% to about $47 billion, the National Association of Software and Service Companies said earlier this month. On US President Barack Obama’s pledge on Tuesday to end tax break for companies that send US jobs overseas, Gopalakrishnan said the Indian IT companies would wait to see how the proposal was implemented. “My take on it is of course protectionism will only prolong the downturn,” he said. “This is a challenge which we all have to face collectively.” Source: Home - Livemint.com | 27 Feb 2009 | 11:35 am Infosys sees slow tech spending amid global slumpBANGALORE (Reuters) - Infosys Technologies, India's No. 2 outsourcer, expects slow IT services business for the foreseeable future as the global economic slump forces clients to delay technology spending, its chief executive said.Source: Reuters: Money News | 27 Feb 2009 | 11:29 am IBM still considers Satyam a worthy competitorNew Delhi: It may have been rocked by the country’s biggest-ever corporate fraud, but Satyam Computer still figures among the companies considered worthy rivals to global technology giant IBM. In its annual report filed with the regulator for 2008, New York Stock Exchange-listed IBM has said that Satyam, along with two other Indian IT majors, Infosys and Wipro, are among its main competitors in various business segments. Incidentally, days before admitting financial wrongdoings at Satyam, its founder B. Ramalinga Raju had told the company’s board in a 16 December 2008 meeting that he feared a hostile takeover bid of the IT firm by global players like IBM. After Satyam’s aborted bid to acquire two Maytas firms, IBM’s name had also figured among the possible suitors for the Indian IT firm, but had been denied by the US company. Later in January, Satyam’s board was superseded by the government and is currently on the lookout for a new owner. In its annual report, filed earlier this week with the US Securities and Exchange Commission (SEC), IBM said Satyam Computer and Wipro Technologies are among its competitors as they target customer groups similar to its Global Technology Services segment. “Indian service providers, including Satyam Computer Services Ltd and Wipro Technologies (Wipro), are moving to offer managed infrastructure services, targeting similar customer segments to GTS,” IBM stated. Source: World Business - Livemint.com | 27 Feb 2009 | 11:28 am IBM still considers Satyam a worthy competitorNew Delhi: It may have been rocked by the country’s biggest-ever corporate fraud, but Satyam Computer still figures among the companies considered worthy rivals to global technology giant IBM. In its annual report filed with the regulator for 2008, New York Stock Exchange-listed IBM has said that Satyam, along with two other Indian IT majors, Infosys and Wipro, are among its main competitors in various business segments. Incidentally, days before admitting financial wrongdoings at Satyam, its founder B. Ramalinga Raju had told the company’s board in a 16 December 2008 meeting that he feared a hostile takeover bid of the IT firm by global players like IBM. After Satyam’s aborted bid to acquire two Maytas firms, IBM’s name had also figured among the possible suitors for the Indian IT firm, but had been denied by the US company. Later in January, Satyam’s board was superseded by the government and is currently on the lookout for a new owner. In its annual report, filed earlier this week with the US Securities and Exchange Commission (SEC), IBM said Satyam Computer and Wipro Technologies are among its competitors as they target customer groups similar to its Global Technology Services segment. “Indian service providers, including Satyam Computer Services Ltd and Wipro Technologies (Wipro), are moving to offer managed infrastructure services, targeting similar customer segments to GTS,” IBM stated. Source: LatestNews-Home - Livemint.com | 27 Feb 2009 | 11:28 am India rate cut seen as growth slows sharplyNEW DELHI (Reuters) - India's economic growth slowed much more than expected in the December quarter, slumping to its weakest pace in almost six years and raising expectations the central bank would cut rates, possibly as soon as this weekend.Source: Reuters: Money News | 27 Feb 2009 | 11:10 am Tata Steel posts unexpected profit, shares jumpMumbai: Tata Steel Ltd, the world’s sixth-largest steel maker, posted a consolidated quarterly profit on Friday, beating forecasts of a loss and lifting its shares in a weak market. Steelmakers around the world have seen sales and prices fall as the credit crisis and economic slump hits demand from major steel consuming sectors such as automotives, consumer goods and construction. Tata Steel said its December quarter consolidated net profit after minority interest and share of profit of associates, including for its European unit Corus, fell 39% to Rs814 crore ($160 million) from a restated Rs1,325 crore a year earlier. It said the net profit would have been lower by Rs4,256 had it followed its earlier accounting practice instead of recording actuarial gains and losses on employee benefit funds in reserves and surplus. “Prime facie it looks like inventory loss is much lower than expected. We need to analyse the numbers further,” said VK Sharma, head of research at Anagram Stock Broking. Consolidated net sales for October-December rose to Rs33,191 crore from Rs31,899 crore reported a year earlier. A Reuters poll of five brokerages had forecast a net loss of Rs910 crore, on net sales of Rs22,490 crore. Posco Warning Global steel production tumbled 24% in the last quarter of 2008, and steel prices have dropped up to 70% since mid-2008. South Korea’s Posco warned on Friday it might have to extend its production cut to 30% if market conditions continued to worsen. Last month, Tata Steel’s October-December net profit from its Indian operation more than halved. Shares in Tata Steel ended up 5.6% at Rs172.35 in a Mumbai market that fell 0.7%. The stock shed nearly half its value in October-December compared with a 25% fall in the benchmark index. Corus, Europe’s second biggest steel maker, has announced several restructuring measures and hived off non-core assets as it battles the downturn. Last month, it announced 3,500 job cuts worldwide, mostly in Britain, and sought support from the UK and Dutch governments to part-fund temporary cuts in work hours. Source: Home - Livemint.com | 27 Feb 2009 | 11:01 am Govt says no roundabout entry for FDI in prohibited sectorsNew Delhi: Foreign investment cannot enter India through a circuitous route in sectors like multi-brand retail, atomic energy and the lottery business and will need to operate within the sectoral caps, according to new guidelines. Foreign investment will “have to comply with the relevant sectoral conditions on entry route, conditionalities and caps with regard to the sectors in which such companies are operating,” the Department of Industrial Policy and Promotion (DIPP) said. Even a domestic firm in which investment is made by another Indian company (that has an FDI component) will be subject to the “sectoral conditions on entry route”. This will prevent circumventing of rules though indirect investment. India prohibits FDI in multi-brand retail, atomic energy, the lottery business, gambling and betting, chit funds and nidhi firms. Besides, an FDI ceiling has been put on sectors like insurance, aviation, asset reconstruction, private sector banking, FM radio, cable network and commodity exchanges. The government on 11 February changed FDI policy and excluded indirect investment through domestic companies from overall sectoral ceilings, which led to the criticism that the new policy allows FDI through the “back door” in sectors where it is banned. It also made FDI caps meaningless. With the government subjecting the FDI through indirect route to the overall sectoral entry and ceiling norms, the ‘Press Notes 2/3’ of 11 February get turned upside down. These ‘press notes’ had said if a parent firm has less than 50% FDI invests into another company, the overseas investment would not be counted; thereby allowing firms to exceed sectoral caps. Even the sectors where FDI was not allowed could have been considered thrown open since less than 50% overseas investment was treated as domestic money. The policy changes came under sharp criticism from the Left parties who raised the issue of “allowing backdoor” entry in Parliament as well. India received $19.79 billion FDI between April and November this fiscal. The country attracted inflows over $24 billion in 2008-09. Source: LatestNews-Home - Livemint.com | 27 Feb 2009 | 10:59 am Tata Steel posts unexpected profit, shares jumpMUMBAI (Reuters) - Tata Steel Ltd, the world's sixth-largest steel maker, posted a consolidated quarterly profit on Friday, beating forecasts of a loss and lifting its shares in a weak market.Source: Reuters: Money News | 27 Feb 2009 | 10:47 am Sebi may approve Satyam’s bidding frameworkMumbai: Market regulator Securities & Exchange Board of India (Sebi) is likely to approve the Satyam Board-formulated framework to induct a strategic investor. “In this case (Satyam), once the framework is finalised by the government-appointed board in consultation with the Company Law Board (CLB), Sebi is unlikely to change the proposal,” a top Sebi source told PTI here on Friday. The Sataym Board is understood to have finalised the roadmap to conduct the bidding process for the beleaguered IT major at its board meeting on Thursday and is expected to submit the proposal to the Sebi soon for getting regulatory clearances. With a view to facilitate the takeover process, Sebi recently amended the takeover rules for companies having a government-appointed board, besides making the preferential issue norms more flexible. “The amendments in rules (pertaining to takeovers and preferential share issues) have given considerable power to Satyam’s Board and once it zeroes in on a bidder, that choice will, in all likelihood, be considered final by Sebi. This is a “special case,” the source said. Sebi is expected to consider the proposal, expected to be submitted soon, at its next board meeting, the source said. It is also in consultation with other regulators including the US Securities and Exchange Commission (SEC) and in other jurisdictions where Satyam has shareholders, the source said. “The regulator is acting in consultation with other regulators considering the fact that Satyam has shareholders in other jurisdictions as well,” the source said. Satyam Board is understood to be working towards completing the bidding process in the next three weeks. Several suitors including B K Modi-headed Spice Communication, the Hinduja Group and engineering major, Larsen and Toubro, have expressed their interest in taking over the Hyderabad-based company. The Board also expects its auditors - KPMG and Deloitte - to restate the company’s accounts by end-March that will also help to quicken the bidding process. Satyam plunged into a crisis on account of huge irregularities committed by its founder chairman, B Ramalinga Raju, who admitted to cooking up its accounts since 2002 by overstating its profits and understating liabilities. Source: LatestNews-Home - Livemint.com | 27 Feb 2009 | 10:46 am Apr-Jan fiscal deficit at $52 bln - govtNEW DELHI (Reuters) - India's fiscal deficit for the April-January period stood at 2.63 trillion rupees ($52 billion), or 80.5 percent of an upwardly revised budget target, a government statement said on Friday.Source: Reuters: Money News | 27 Feb 2009 | 10:40 am Motorola launches Rs 1.11 lakh mobile phoneCellular handset maker Motorola on Friday, gave the wealthy people a new obsession called 'AURA', a hand-sculpted mobile phone that costs Rs 1,11,000.Source: Daily News & Analysis: Money News | 27 Feb 2009 | 10:40 am Yahoo! India’s R&D chief quitsBangalore: Sharad Sharma, the chief executive of the India research and development unit of Yahoo Inc, has quit the firm to support entrepreuner ventures. Sharma is being a replaced by Shouvick Mukherjee, a 10-year veteran of Yahoo, the firm said in a statement. Mukherjee will spearhead the centers’ strategic contribution in delivering compelling global products and consumer experiences that touch the lives of half a billion Internet users worldwide. Sharma said he would work at Yahoo until April. In 2006, Yahoo had lost its R&D head Prasad Ram to larger internet rival Google Inc. Source: LatestNews-Home - Livemint.com | 27 Feb 2009 | 10:33 am Yahoo! India’s R&D chief quitsBangalore: Sharad Sharma, the chief executive of the India research and development unit of Yahoo Inc, has quit the firm to support entrepreuner ventures. Sharma is being a replaced by Shouvick Mukherjee, a 10-year veteran of Yahoo, the firm said in a statement. Mukherjee will spearhead the centers’ strategic contribution in delivering compelling global products and consumer experiences that touch the lives of half a billion Internet users worldwide. Sharma said he would work at Yahoo until April. In 2006, Yahoo had lost its R&D head Prasad Ram to larger internet rival Google Inc. Source: Tech News - Livemint.com | 27 Feb 2009 | 10:33 am Honda stops work on second plant in IndiaNew Delhi: Japanese auto giant Honda has indefinitely put on hold opening of its Rs1,000 crore second plant in India due to slowdown in the auto market. The company has also terminated the service of about 1,000 temporary workers as it had cut India output by 50% from the beginning of this year. “We have not fixed any timeline for opening the second plant... It has been put on hold indefinitely,” Honda Siel Cars India (HSCI) president and CEO Masahiro Takedagawa told reporters here. “Our Greater Noida facility has a production capacity of one lakh unit, but this fiscal we expect to sell only about 55,000 units. After utilising the full capacity of this plant, we will start the second plant,” he added. The company, which is present in India through a joint venture with the Siel Group, has cut its production to 200 cars a day in a single shift since the beginning of this year from earlier the capacity of 400 units a day in two shifts. “As we cut our production by half, so we have not renewed the contract of our temporary workers since August last year, but we have not let go our permanent staff,” Takedagawa said. The company has so far terminated the service of about 1,000 temporary workers, he added. Source: Home - Livemint.com | 27 Feb 2009 | 10:29 am Economic growth broadly in line with expectations: FMNew Delhi: Even as economic growth nosedived to 5.3% in the third quarter, the Finance Ministry on Friday said the rate is in line with expectations and the economy will expand close to 7% in the current fiscal. “Broadly in line with our expectations.. will add up to close to 7% for the year as a whole...We are not very disappointed, we are not pessimistic about the number,” economic affairs secretary Ashok Chawla said. He further said that the fourth-quarter contribution to GDP growth is normally better and the third quarter would be the worst for the entire fiscal. On farm output, which registered negative growth in the third quarter, the finance ministry official said the rabi crop is expected to be better than normal. “So all told our expectation is still that the fourth quarter is going to show robust growth, which will add up to close to 7% for the year as a whole,” he added. He said public spending is already showing a substantial increase in terms of community, general services. Amid low overall growth, community, social and personal services expanded by a robust over 17%. “That (public spending) is taking the place of the decline in private sector spending (very quickly),” he said. Chawla said the service tax cut by two percentage points should provide some kind of support and on the whole the service sector continues to be robust. Source: LatestNews-Home - Livemint.com | 27 Feb 2009 | 10:27 am “Slumdog”, “Jai Ho!” named top Hollywood wordsLos Angeles: “Slumdog Millionaire”, the rags-to-riches movie that took the Oscars by storm, also produced two of the most influential words of the 2008 Hollywood awards season, a language monitoring group said on Thursday. “Jai Ho!”, Hindi for Let There be Victory and the title of the movie’s Oscar-winning best song, and “Slumdog” -- the controversial term coined by the filmmakers for young slum-dwellers in Mumbai -- were named the top “HollyWords” of the year that closed with last Sunday’s Oscars. The Global Language Monitor, which uses an algorithm to track the frequency of words and phrases in the world’s print and electronic media, said it was rare for two words from the same movie to be ranked in its annual list. “Slumdog Millionaire” crowned its awards sweep by winning eight Oscars, also including best picture and director. Last summer’s “Indiana Jones and the Kingdom of the Crystal Skull” inspired the new expression “Nuke the Fridge” -- a phrase coined on the Internet to describe a moment when a cinematic franchise has run its course. The phrase came in third on the list, followed by “Hmong” -- a mountain dwelling people in Laos -- from the Clint Eastwood movie “Gran Torino”. “What doesn’t kill you makes you....stranger”, the Joker’s twist on German philosopher Friedrich Nietzsche’s epigram that was spoken by Heath Ledger in Batman blockbuster “The Dark Knight” was also among the Top Ten along with the line “There are no coincidences” from the animated movie “Kung Fu Panda.” Source: LatestNews-Home - Livemint.com | 27 Feb 2009 | 10:26 am No roundabout entry for FDI in prohibited sectors: GovtFDI cannot enter India through a circuitous route in sectors like multi-brand retail, atomic energy and the lottery business and will need to operate within the sectoral caps.Source: Daily News & Analysis: Money News | 27 Feb 2009 | 9:36 am BSNL launches 3G services in 11 citiesNew Delhi: India’s No. 4 mobile operator, state-run Bharat Sanchar Nigam Ltd (BSNL), said on Friday it had launched third-generation (3G) services in 11 cities and planned to expand services to other areas in the country. BSNL said in a statement it had invested Rs27 billion ($530 million) on rolling out 3G infrastructure and would cover all district headquarters and important commercial towns. India will hold an auction of 3G spectrum later this year, but state-run firms have already been given one slot in each service area, and will have to match the highest bid from private operators. Third-generation services give users a chance to enjoy fast Internet access, games and a host of multimedia content from maps to music on their cellphones. BSNL provides telecoms services across the country except in the major cities of New Delhi and Mumbai, which are covered by another state-run firm, Mahanagar Telephone Nigam. Source: Home - Livemint.com | 27 Feb 2009 | 9:33 am India will miss 2008-09 growth estimate: Moody’sMumbai: India will certainly miss its advance estimate of 7% GDP growth for the current fiscal year and this target needs to be substantially revised downward, Moody’s Economy.com said in a note Friday. Growth is “almost certain” to slow to under 5% in the first half of 2009 and a recovery seems far from sight as the fiscal stimulus does not appear strong enough to foster a rebound, economist Sherman Chan said in a note. “When global economic conditions begin to improve, India will then see a bottom,” the report added. Moody’s Economy said the “sharper-than-expected deceleration in the December quarter (where GDP grew 5.3%) perhaps makes up for the slowdown that should have taken place in the September quarter...” In 2009, it expects a much sharper contraction in industrial activity, while construction activity is seen coming to a standstill amid a slowdown in investment. Further moderation is expected in trade and tourism-related sectors as exports are set to tumble into negative territory and visitor arrivals will be subdued due to global recession. The only upside surprise from the (third uarter GDP) data breakdown is the resilience shown in the financial and real estate sectors ... However, the momentum is unlikely to last,” the report said. Source: Home - Livemint.com | 27 Feb 2009 | 9:32 am ‘World’s Best Job’ web site flooded in final hoursBrisbane: A lucky 200 people have been shortlisted for the chance to become the caretaker of a tropical Australian island - dubbed by promoters as the “Best Job in the World” - but tourism officials acknowledged Friday that many last-minute applications were lost because the Web site was flooded with traffic. Nearly 35,000 people submitted video applications for the job with Tourism Queensland, which pays a salary of 150,000 Australian dollars ($97,000) to relax on Hamilton Island in the Great Barrier Reef for six months while writing a blog to promote the island. The job is part of a AU$1.7 million campaign to publicize the charms of northeastern Queensland state. Anthony Hayes, Tourism Queensland’s chief executive, said a wave of 7,500 applications hit the Web site in the 72 hours before Monday’s deadline. “This massive amount of traffic understandably slowed the site down and regretfully some people weren’t able to get their video application in on time,” he said. “It has been frankly heartbreaking because people have gone to so much trouble, and we have lost some fantastic applications. But to be fair to everyone, we have to be consistent.” The tourism board will announce 50 finalists Tuesday on its Web site. The public will then have until March 24 to vote for their favorite applicant. The top vote-getter and 10 other people chosen by the tourism board will be flown to Hamilton Island for interviews. The winner will be announced May 6. The job begins July 1. “No one has ever done anything like this before and we have been simultaneously, amazed, delighted and challenged by the response,” Hayes said. Source: LatestNews-Home - Livemint.com | 27 Feb 2009 | 9:28 am Gold imports nil in Feb versus 23 tonnes year agoMumbai: India has not imported any gold so far in February as high prices dampened demand in the world’s largest market for the metal, the head of a leading trade body said on Friday. “Zero. There are no reports (of imports) so far,” said Suresh Hundia, president of the Bombay Bullion Association. India, which annually buys 500-700 tonnes of gold, had imported 23 tonnes in last February. Prices in India have hit record highs over the past few weeks, partly reflecting a sharp depreciation in the value of the rupee that has made dollar-priced gold costlier. The rupee hit an all-time low of 51 per dollar on Friday, taking losses this year to 4.5%. The currency had fallen 19.1% in 2008. Source: LatestNews-Home - Livemint.com | 27 Feb 2009 | 9:09 am Gold demand stays weak as buyers await fallsMumbai: India’s gold buying remained weak on Friday as buyers awaited for lower prices in the midst of the wedding season, with a weak rupee making the imported yellow metal expensive, dealers said. “There are enquiries but no buyers...,” said Pinakin Vyaas, chief manager-treasury with IndusInd Bank in Mumbai. “As the rupee has depreciated so heavily, the costing is getting affected,” said Vyaas, adding “and people don’t have any clue about where the rupee is headed.” The benchmark April contract was 0.91% higher at Rs15,386 per 10 grams at 2:29pm, after hitting a high of 15,444 earlier, largely supported by a weak rupee. A weak rupee makes the imported yellow metal expensive. The Indian rupee weakened to an all-time low of $51 per dollar in afternoon trade on Friday, weighed down by heavy dollar demand from importers to meet month-end commitments and losses in local shares. “Volumes should pick up if it (gold) falls to 14,500,” said a dealer with a state-run bank in Mumbai. “No one wants to buy huge quantities and get stuck with high-priced stocks,” he said. India gold purchases have slowed to a trickle ever since prices moved above the $900-mark overseas and Rs13,500 locally. No gold has been imported into India so far in February because prices are at record highs in rupee terms, the head of Bombay Bullion Association (BBA) said on Friday. Gold imports nearly halved to 400 tonnes in 2008 in India, the world largest consumer, from an annual average of around 700-800 tonnes per annum. Source: Home - Livemint.com | 27 Feb 2009 | 9:05 am Govt says it is responsive to any situation as growth tanksAs the Indian economy grew at its slowest pace in over five years, the government on Friday, said it, along with the RBI, is always responsive to any emerging situations.Source: Daily News & Analysis: Money News | 27 Feb 2009 | 9:00 am Strong March qtr to push FY growth close to 7 pctNEW DELHI (Reuters) - Expected stronger growth in the January-March quarter will help push India's full fiscal year economic expansion close to 7 percent, a top finance ministry official said on Friday.Source: Reuters: Money News | 27 Feb 2009 | 8:59 am US, Citigroup reach $25 bn equity conversion dealWashington: The US government will boost its control over Citigroup under a deal to convert up to $25 billion in government-held preferred shares in the bank to common equity, a person familiar with the deal said on Friday. Under the deal to bolster the bank’s capital base, Citigroup will receive no new government funds and must find private investors willing to convert their preferred stock to common shares, the person said. The US Treasury would then match the private conversions dollar-for-dollar up to $25 billion. It currently holds about $45 billion worth of preferred stock purchased through two separate capital injections last year. The size of the government stake ultimately depends on the amount of privately held preferred stock that is converted, the person said. The government was likely to wind up with around 30-40% of Citigroup’s common stock. The deal, expected to be formally announced later on Friday, also includes a shake-up of Citigroup’s board, with a majority of directors being replaced, but Chief Executive Vikram Pandit will keep his job, the person said. The action, which marks the third major Treasury intervention to aid Citigroup since mid-October, follows more than a week of negotiations between the Treasury and the firm, once the world’s largest financial services group. The increase in Citigroup’s common equity is expected to boost its tangible equity capital ratios, making it better able to withstand losses. The government is expected to receive a slight discount on its conversion price compared to private investors, the person familiar with the deal said. But taxpayers will be giving up dividends of up to 8% on preferred shares that are converted. It was unclear to what extent Citigroup’s major private preferred stock investors were willing to do the same. Jennifer Lewis, spokeswoman for The Government of Singapore Investment Corp (GIC), declined comment on the arrangement. In January 2008, the Singapore fund bought about $6.88 billion worth of perpetual, convertible notes in Citi that pay a 7% annual dividend. A banking source in Singapore said the US government deal would put pressure on GIC to convert these securities. Abu Dhabi Investment Authority (ADIA), the world’s largest sovereign wealth fund, bought $7.5 billion worth of Citi notes in November 2007, convertible into not more than 4.9% of Citi shares at that time. Citigroup shares closed at $2.46 on Thursday, missing out on a rally in other major US bank shares this week as some investors feared its talks with the government would lead to outright nationalization. Markets in Asia showed little reaction to the Citigroup news on Friday, with US stock futures maintaining their slight gains for the day and Asian shares edging lower. The dollar was weaker against the Japanese yen as investors booked profits from recent gains in the US currency. President Barack Obama’s administration signaled broad support for banks this week, with a fiscal 2010 budget plan that includes a “placeholder” provision for the Treasury to purchase $750 billion more in securities from the banking sector. On Wednesday, the US Treasury pledged to provide sufficient capital to about 20 of the largest US banks that undergo a “stress test” program to assess their ability to cope with the possibility of a worse-than-expected recession. Citigroup will still be subjected to the stress test despite the conversion transaction, the source said. Banks judged to need more capital will have six months to raise funds from private investors or accept the Treasury’s offer of buying preferred shares that are convertible into common equity. And the Treasury will also allow other banks that previously received capital injections under the $700 billion bailout program to convert those preferred stock investments to convertible preferred shares and later to common equity to help boost capital ratios. Source: Home - Livemint.com | 27 Feb 2009 | 8:55 am Economy records slowest quarterly growth in over 5 yearsThe Indian economy has clocked slowest quarterly growth in over five years, at 5.3%, in October-December of this fiscal as agriculture and manufacturing contracted.Source: Daily News & Analysis: Money News | 27 Feb 2009 | 7:54 am Rupee at an all-time low of 50.65/67 Vs dlrThe Indian rupee on Friday, breached its previous all-time low and was quoting at 50.65/67 against the greenback in late morning deals.Source: Daily News & Analysis: Money News | 27 Feb 2009 | 7:23 am Diamond worker's woes reach assemblyDiamond workers lodged their strong protest against the state government's alleged apathy towards their plight in the wake of recession plaguing the diamond industry.Source: Daily News & Analysis: Money News | 27 Feb 2009 | 7:23 am Create separate internal audit dept: CAG"Gujarat should set up a separate internal audit department to strengthen its internal audit process," said Niranjan Pant, principal accountant general, Gujarat.Source: Daily News & Analysis: Money News | 27 Feb 2009 | 7:19 am Firms want commitment bond from IIM-A studentsMarketing companies at IIM-A placements fear recruits may leave once job scene gets better. Marketing companies have asked them to sign bonds as an assurance of their commitment to the firms.Source: Daily News & Analysis: Money News | 27 Feb 2009 | 7:13 am Facebook to consider user opinion for policy changesSan Francisco: Facebook is giving power to the people when it comes to deciding what to do with policies and products at the leading social-networking website. Facebook on Thursday said it hopes that by giving its more than 175 million users a voice in how the service is run it will avoid the backlash and controversy that have greeted changes implemented by the company. “This is all about us trusting our users and that we are all on the same page about where we want to go,” Facebook founder Mark Zuckerberg said in a telephone briefing with reporters. Zuckerberg said Facebook is writing into its terms of service that it will notify each user to proposed changes at the online community and then open a forum for comments before deciding whether to proceed. Plans that trigger controversial feedback will be voted on by Facebook citizens. “That is a pretty big move,” Zuckerberg said. Facebook said the unusually democratic policy is being instituted because its users trust aspects of their private lives to its profile pages and develop a passionate sense of ownership in the online community. “This is an unprecedented action,” said Privacy International director Simon Davies. “No other company has made such a bold move towards transparency and democratization. The devil will be in the detail but, overall, we applaud these positive steps and think they foreshadow the future of Web 2.0.” Facebook has repeatedly been stung by protests to what it thought were beneficial or benign changes to the online service. Facebook did an about-face last week and dropped a controversial change to its terms of service that triggered outcry from thousands of members of the social network. Facebook had trimmed pages of legalese from what is fairly standard terms-of-service language giving it permission to store and use data people put on the website. People complained that the wording gave Facebook rights to commandeer and reuse information from supposedly semi-private profile pages. “We never really intended to give that impression and we feel really bad that we did ... We don’t own user data,” Zuckerberg said. In 2007, Facebook users staged a revolt after the northern California Internet firm added Beacon software that tracks what members are buying and doing online and then shares it with selected friends. Facebook yielded to protests by giving members a way to shut Beacon off. While Facebook is the most popular social-networking website, it has yet to make a profit. Microsoft in 2007 bought a 1.6% stake in Facebook for $240 million. Internet firms can stumble by ceding control to users, according to analyst Rob Enderle of Enderle Group in Silicon Valley. “Democratic models sound really great, but in practice they tend to slow a company down dramatically,” Enderle said. “This will work until they start feeling a lot of competitive pressure, then they will abandon it.” Customers tend to be more certain about things they don’t want than the things they do want, the analyst contends. “Steve Jobs would never have customers vote on what he should do, yet he does a real fine job of guessing where customers want him to be,” Enderle said, referring to the Apple leader behind iPods, iPhones and Macintosh computers. Source: Tech News - Livemint.com | 27 Feb 2009 | 7:04 am JPMorgan may cut 14,000 jobs to reduce costsNew York: JPMorgan Chase & Co said on Thursday it is cutting up to 14,000 jobs, more than previously disclosed, as it tries to reduce costs in the face of a slumping economy and higher credit losses. The second-largest US bank said it now expects to shed as many 12,000 jobs from integrating the former Washington Mutual Inc , up from 9,200 announced in December. It also expects to cut up to 2,000 investment banking jobs. JPMorgan announced the cuts in an all-day presentation to investors. The New York-based lender expects the cost cuts to help it weather the current economic turmoil, as customers struggle with falling house prices, tight credit and increasing mortgage and credit card defaults. “We are scared about the future like everybody else,” but the bank has “enormous earnings power,” Chief Executive Jamie Dimon said. “I always remind myself that we really have no idea what 2009 is going to look like, but we’re going to make an awful lot of money in 2011.” JPMorgan expects $2.75 billion of savings from Washington Mutual, offset by $750 million of new investments. Retail banking chief Charlie Scharf expects most of the savings by the end of 2009, sooner than originally thought. The bank in September paid $1.9 billion for the banking units of Washington Mutual, the largest US bank or thrift ever to fail. The combined company is shutting several hundred branches, but plans to open 120 new branches this year. JPMorgan has more than 5,000 branches, up from 539 as recently as 2003. Stress Test Meanwhile, JPMorgan’s investment bank expects to reduce its 28,000-person staff to between 26,000 and 27,000 by year-end, with cutbacks focused in technology and infrastructure, the unit’s co-chief executive, Steve Black, said. Staffing could fall further if market conditions worsen, though it is “hard to imagine” a worse year for the unit than 2008, he said. Financial companies have announced close to 350,000 job cuts since August 2007, outplacement firm Challenger, Gray & Christmas has said. The bank got $25 billion of capital last fall from the government’s Troubled Asset Relief Program, and Dimon said it is possible JPMorgan could repay that this year. On Monday, JPMorgan unexpectedly cut its dividend 87% to help save $5 billion a year. Referring to the government plan to subject large US banks to “stress tests” to see how well they hold up in a worsening economy, Dimon said: “We think we’ll do fine under any stress test measurement,” even without “heroic” cost cuts. JPMorgan said that excluding Washington Mutual, it expects losses of $1 billion to $1.4 billion in each quarter this year from home equity loans to more creditworthy borrowers. It said as many as 41% of these borrowers will owe more than their homes are worth by the end of 2010, up from 27% at the end of 2008. Scharf said California’s housing market is showing signs of a bottom in home price deterioration, but Florida’s is not. He also said that “we know New York is going to deteriorate.” Housing problems and rising unemployment are also boosting losses in JPMorgan’s credit card business and may result in lower sales volume. Executives expect card losses to increase “materially” and are preparing for a 9% US unemployment rate by year end from January’s 7.6%. Source: World Business - Livemint.com | 27 Feb 2009 | 6:20 am US regulator’s action sends Ranbaxy share tumbling 18%New Delhi, Feb. 26 Ranbaxy Laboratories Ltd’s share price on the Bombay Stock Exchange fell by 18 per cent to close at Rs 169 on Thursday.Source: Business Line - Home Page | 27 Feb 2009 | 12:00 am Nano booking likely to cost Rs 70,000Mumbai, Feb.26 The Nano could be the least expensive car at a little over Rs 1 lakh but its booking amount is not going to come cheap, say Tata Motors’Source: Business Line - Home Page | 27 Feb 2009 | 12:00 am DoT wants audit report on RCom in 3 monthsNew Delhi, Feb. 26 The Department of Telecom has asked the special auditors examining the books of Reliance Communication to submit its report within three months.Source: Business Line - Home Page | 27 Feb 2009 | 12:00 am Day Trading GuideFresh long position can be initiated if DLF move above Rs 163, with tight stop-loss. We reiterate our sell recommendation in ICICI Bank and SBI as the outlook is bearish. Moreover, theSource: Business Line - Home Page | 27 Feb 2009 | 12:00 am Satyam board readies framework for open bid routeHyderabad, Feb. 26 A ‘framework’ to undertake the open bidding route to rope in a suitable strategic investor to take over the reins of the scam-hit Satyam Computer Services has been readied by the Government-appointedSource: Business Line - Home Page | 27 Feb 2009 | 12:00 am Amtek Auto (Rs 73.75): BuyWe recommend a buy in Amtek Auto stock from short and medium-term perspective. It is evident from the charts of Amtek Auto that following a breakthrough of the significant support at Rs 150 in October 2008, the stock witnessed sharp sell-off. ItSource: Business Line - Home Page | 27 Feb 2009 | 12:00 am Rupee falls sharply to 50.48 against dollarMumbai, Feb. 26 The rupee fell sharply against the dollar on Thursday and inched closer to the psychologically important 50.50 mark, pressured by huge demand for the greenback.Source: Business Line - Home Page | 27 Feb 2009 | 12:00 am VAT collections unaffected by slowdownThere has been no decline in VAT collections in any State during April-January in the current fiscal despite the current slowdown in the economy, Parliament was informed.Source: Business Line - Home Page | 27 Feb 2009 | 12:00 am Rs 325-cr package unveiled for leather, textile export sectorsNew Delhi, Feb. 26 A special package of Rs 325 crore for the employment-intensive leather and textiles export sector, fast settlement of duty credit scrips for duty paid in export production and extension of such scrips for import of evenSource: Business Line - Home Page | 27 Feb 2009 | 12:00 am ‘All cash’ buys hurt passenger car dealersBangalore, Feb. 26 For passenger car dealers, the number of cash purchases has almost doubled during the past one year, thus reducing their earnings from auto-finance commissions.Source: Business Line - Home Page | 27 Feb 2009 | 12:00 am Nath declares 26 measures to benefit exportersLowers 2008-09 export targets from $200 billion to $175 billion.Source: Business Standard | Front Page Headlines | 26 Feb 2009 | 7:03 pm I-T dept moves court to recover Rs 500 crore from BSE brokersThe Income Tax (I-T) Department has moved the Bombay High Court to recover nearly Rs 500 crore from top stock brokers, who have managed to avoid paying income tax on the pretext of claiming depreciation on their Bombay Stock Exchange (BSE) membership card.Source: Business Standard | Front Page Headlines | 26 Feb 2009 | 7:02 pm Govt employees get DA bonanzaCost of living allowance raised 6 percentage points; to cost exchequer Rs 6,000 crore.Source: Business Standard | Front Page Headlines | 26 Feb 2009 | 6:55 pm
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