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HDIL plans to raise Rs 1000 cr within 2 monthsAt a time when funds are not coming easy, especially for companies in the real estate sector, CNBCTV18 learns, Mumbaibased HDIL has an ambitious target of raising Rs 1000 crore rupees within the next two months. Priyanka Ghosh reports in details.Source: Moneycontrol Top Headlines | 17 Mar 2009 | 7:27 pm See EBITDA of 1012% post Visiocorp buy: Motherson SumiMotherson Sumi completed its formalities of the acquisition of Visiocorp on March 6. Visiocorp is a global market leader in automotive mirrors with a turnover of 660 million euro in 2008. Pankaj Mittal, COO of Motherson Sumi Systems said that they are looking at an EBITDA level of about 1012% post the acquisition.Source: Moneycontrol Top Headlines | 17 Mar 2009 | 6:41 pm HDFC to be Spice\'s banker for Satyam bid: BK ModiBK Modi, Chairman of Spice Group said his company is drawing up a comprehensive strategy for Satyam. Modi also added that HDFC would be Spice Groups bankers for the bid process.Source: Moneycontrol Top Headlines | 17 Mar 2009 | 5:55 pm See 67% growth for FY10: Rico AutoArvind Kapur, MD, Rico Auto Industries sees a 67% growth for next year and expects that the demand from their customers to remain. He stated that regular production for the Nano would start in Pune as well as in Uttarakhand.Source: Moneycontrol Top Headlines | 17 Mar 2009 | 4:23 pm Don\'t see 10yr bond sustain above 6.75%: IndusInd BankMoses Harding, Executive Vice President and Head, Wholesale Banking Group at IndusInd Bank said 10year bond should not sustain above 6.75%. He added that the RBI should allow the 10year bond between 6.256.75%, if growth is the top priority for the government and the RBI.Source: Moneycontrol Top Headlines | 17 Mar 2009 | 3:41 pm MA in tough times: The RKHSSodexo deal breaks a mythJust a few days ago there was a MA transaction that busted three myths that there are no buyers in the world right now, sellers will wait till prices move up before they sell and that Indian promoters never sell. Radhakrishna Hospitality Services sold a Rs 500 crore business to French giant Sodexo for about Rs 600 crore.Source: Moneycontrol Top Headlines | 17 Mar 2009 | 3:21 pm Global economy to contract 0.6% in 2009: IMF aideLisbon: The International Monetary Fund (IMF) expects the global economy to contract 0.6% this year, according to forecasts provided on Tuesday by an IMF official at a conference in Lisbon. Teresa Ter-Minassian, an adviser to IMF managing director Dominique Strauss-Kahn, told reporters the figure was likely to be released shortly by the IMF. It compares with the IMF’s last official forecast for the global economy, released in January, which pointed to global growth of 0.5%. The US economy is seen shrinking 2.6% this year, compared with a January forecast of a 1.6% contraction. The euro zone economy is expected to contract 3.2% and Japan’s by 5%, she said. Source: LatestNews-Home - Livemint.com | 17 Mar 2009 | 2:50 pm Varun Gandhi faces charges for ‘hate speech’New Delhi: The grandson of late prime minister Indira Gandhi and Bharatiya Janata Party candidate from Pilibhit, Varun Gandhi, was facing criminal charges on Tuesday for allegedly inciting violence against Muslims while campaigning for next month’s general elections. Click here to watch video Gandhi reportedly told a rally that BJP would “cut the head of Muslims”. According to footage aired by the NDTV news channel, Varun Gandhi also said Muslims “have scary names like Karimullah, Mazullah” and that “if you meet them at night you will be scared”. The Election Commission said it had reviewed his speeches and had ordered he face “criminal charges” in Uttar Pradesh, where the speech was given, for stoking sectarian tensions. An Election Commission official said an official warning was also to be issued to the BJP. A Congress spokesman accused the BJP of being a party with an anti-minority ideology. A BJP spokesman, however, insisted that “the traditional culture of BJP can never teach a person to speak so irresponsibly”. In his defence, Varun said the recordings of his speeches had been tampered with. India goes to the polls to elect a new parliament and government from 16 April to 13 May. Source: Home - Livemint.com | 17 Mar 2009 | 2:40 pm Wall St reverses course in choppy tradeNEW YORK (Reuters) - The Nasdaq stock index rose more than 1 percent while the S&P 500 turned positive in choppy trade on Tuesday, with a slide in materials stocks offset by a recovery in technology shares after Monday's sell-off.Source: Reuters: Money News | 17 Mar 2009 | 2:37 pm Bernanke Outshines Obama Team With Defense of Government Effort - Bloomberg
Source: Google News India - Business | 17 Mar 2009 | 2:35 pm L&T has no plans for tie-up with PE for Satyam - Financial Express
Source: Google News India - Business | 17 Mar 2009 | 2:33 pm DTH industry hit hard as rupee depreciates - Business Standard
Source: Google News India - Business | 17 Mar 2009 | 2:32 pm R-Com launches free unlimited call offer in DelhiReliance Communications (R-Com) here Tuesday launched the Reliance Mobile GSM Unlimited Free On-Net Calling Pack, an offer that will enable customers make free unlimited local calls to the company's GSM numbers.Source: IndiaeNews.com: Business News | 17 Mar 2009 | 2:31 pm Bonds prices ended lower; Rupee weak - Economic Times
Source: Google News India - Business | 17 Mar 2009 | 2:31 pm Larsen in talks with PE firms for Satyam bid - paperMUMBAI (Reuters) - Engineering conglomerate Larsen & Toubro is talking to private equity firms such as Blackstone and The Carlyle Group over a joint bid for Satyam Computer Services, the Economic Times reported on Tuesday.Source: Reuters: Money News | 17 Mar 2009 | 2:24 pm Gold declines further on lower global cues - Times of India
Source: Google News India - Business | 17 Mar 2009 | 2:23 pm ACC says may see cement sector consolidationMUMBAI (Reuters) - ACC Ltd, India's largest cement producer, expect there could be a round of industry consolidation if slowing demand and excess capacity push cement prices down, a top official told Reuters.Source: Reuters: Money News | 17 Mar 2009 | 2:17 pm M&M could develop Obama's car for Indian politiciansMahindra and Mahindra said it could develop a vehicle on the lines of Barack Obama's official car nicknamed 'The Devil' for the country's political leadership.Source: Daily News & Analysis: Money News | 17 Mar 2009 | 2:15 pm Reliance Energy moves SC against tribunal's tariff orderA bench headed by CJ KG Balakrishnan, however, refused to give interim relief and directed that the matter will be heard on March 27, the notified date.Source: Daily News & Analysis: Money News | 17 Mar 2009 | 2:12 pm Maytas Infra seeks 6-mth extension for Metro Rail financial closure - Business Standard
Source: Google News India - Business | 17 Mar 2009 | 2:03 pm IDBI Fortis to infuse Rs250 crore capital - Livemint
Source: Google News India - Business | 17 Mar 2009 | 1:59 pm Rupee drops for 2nd day as stocks turn downMUMBAI (Reuters) - The rupee erased early gains and ended weaker for a second consecutive day on Tuesday, losing support as the stock market turned down but remaining within recent ranges.Source: Reuters: Money News | 17 Mar 2009 | 1:51 pm Rupee drops for 2nd day as stocks turn downMumbai: The rupee erased early gains and ended weaker for a second consecutive day on Tuesday, losing support as the stock market turned down but remaining within recent ranges. Senior traders said the rupee looked set to remain hampered by uncertainty over the outcome of national elections to be held over April and May, worries about capital flows and concerns about a ratings downgrade due to a worsening fiscal deficit. The partially convertible rupee ended at Rs51.4700/4850 per dollar, weaker than Monday’s close of Rs51.385/395. It hit a lifetime low of Rs52.2 per dollar on March. 3. The rupee is down 0.7% so far this month and has fallen 5.4% this year after losing 19% in 2008. “The rupee is seen broadly in a 50.50-52 band in the near term, as there is not much trigger for the markets. We may see some relief rally if we see a big upward move in the global markets,” said a senior dealer at a private bank. Indian shares snapped a three-day winning streak and slipped 0.9% on Tuesday. Capital inflows into the stock market are a key driver for the rupee and there have been net outflows from equities amid a global crisis. Exchange data showed foreigners have sold more than $500 million worth of shares this month, taking their net sales this year to $2.2 billion. They sold more than $13 billion in 2008. Barclays Capital expects the rupee to fall to a record low of Rs56 per dollar in three months, weighed down by slowing growth, a stronger dollar and rising balance of payments deficits. “On the balance of payments, the pressure on dollar/rupee to rise from current levels remains from net capital outflows and high current account deficits,” Sailesh Jha, a Singapore-based economist at Barclays Capital said in a recent note. One-month offshore non-deliverable forwards were quoting at 51.62/51.72. One-month volatilities, a gauge for expectations of movements in the local unit, were around 11% on Tuesday, down from 17% earlier this month. Source: Home - Livemint.com | 17 Mar 2009 | 1:49 pm Satyam case: ICAI gives 3rd extension to Price Waterhouse for reply - Economic Times
Source: Google News India - Business | 17 Mar 2009 | 1:47 pm See EBITDA of 10-12% post Visiocorp buy: Motherson Sumi - Moneycontrol.com
Source: Google News India - Business | 17 Mar 2009 | 1:47 pm Indian sugar futures fall 5th day as supplies rise - Reuters India
Source: Google News India - Business | 17 Mar 2009 | 1:39 pm IDBI Fortis to infuse Rs250 crore capitalMumbai: Life insurer IDBI Fortis Life Insurance Co. Ltd on Tuesday announced a Rs250 crore capital infusion to expand its business. IDBI Bank will contribute Rs120 crore, while partners Federal Bank and Fortis Insurance International will infuse Rs65 crore each. The three partners will contribute as per their share holding pattern, the company said in a statement. IDBI holds 48% in IDBI Fortis Life Insurance, while Federal Bank and Fortis own 26% stake each in the life insurer. IDBI Fortis, which launched its operations last March with an initial capital of Rs200 crore, is targeting a network expansion to set up 100 branches in the country. Source: LatestNews-Home - Livemint.com | 17 Mar 2009 | 1:32 pm American Tower says to buy India’s Xcel TelecomNew Delhi: American Tower Corp has agreed to acquire Indian wireless telecoms tower firm Xcel Telecom, the US-based firm said on Tuesday, without disclosing financial details. The Economic Times newspaper had on Monday first reported that the deal would be worth more than Rs7 billion ($136 million), citing a person familiar with the transaction. The acquisition of Xcel, which owns about 1,700 towers, will close in the second quarter, American Tower said in a statement, and help expand its operation in the world’s fastest-growing mobile market. The combined operations would have about 2,000 towers in 15 of India’s 22 telecoms circles, it said. “This deal will strengthen our base in India and give us access to a new set of clients and geographies where Xcel has established connections,” Amit Sharma, ATC’s president for Asia, said in the statement. Towers carry and power the electronic equipment needed to receive and transmit radio signals for mobile services. Independent tower companies like American Tower rent or lease out their towers to mobile operators. Leasing towers is also attractive for the raft of new telecoms licencees, who can roll-out their networks faster and at a lower cost. Xcel is owned by an affiliate of Texas-based private investment fund Q Investments. American Tower operates more than 23,000 cell sites in the United States, Mexico and Brazil. Source: LatestNews-Home - Livemint.com | 17 Mar 2009 | 1:25 pm SFIO wants to question Rajus againThe SFIO counsel informed court that the fraud probe office could not record the statements of the accused properly due to short time permitted by the court earlier.Source: Daily News & Analysis: Money News | 17 Mar 2009 | 1:19 pm US clears $2.1 bn sale of maritime recce aircraft to IndiaUS has cleared the $2.1 billion contract for Boeing to supply eight P-8I maritime patrol aircraft to India, the largest American arms sale to India to date.Source: Daily News & Analysis: Money News | 17 Mar 2009 | 1:10 pm Mahindra opens defence vehicle plant in HaryanaAuto major Mahindra and Mahindra (M and amp;M) Tuesday inaugurated a defence-vehicle manufacturing plant in Haryana's Prithla region.Source: IndiaeNews.com: Business News | 17 Mar 2009 | 1:03 pm Fearing salary downgrade, IIT teachers warn of agitationThe faculty members of Indian Institutes of Technology (IITs) have threatened agitation from March 20 if the government does not soon announce a revised payscale for them, but have also assured that they will not disrupt the academic session.Source: IndiaeNews.com: Business News | 17 Mar 2009 | 1:02 pm State Bank group deploys anti-money laundering softwareThe State Bank of India (SBI) group deployed 3i Infotech software to prevent money laundering in compliance with the central bank's regulatory order, the bank said Tuesday.Source: IndiaeNews.com: Business News | 17 Mar 2009 | 1:00 pm Satyam Board to scrutinise bids for strategic stakeMumbai: The government-appointed board will look into the bids for strategic stake in Satyam Computer on Friday or Saturday, said a source in know of the developments on Tuesday. At least seven companies, including Larsen & Toubro, i-Gate, Spice and Mahindra Group, have already submitted proposals to the board last week and the bids to be accepted till 20 March. “The board will meet either on Friday or Saturday...the board expects to reach clarity on the time-frame to complete the selection process by next week,” the source told the news agency here. Satyam expects to chalk out a time-frame for the selection process by next week to end the uncertainly on the future of the troubled IT major, the source said. The board has already said that it has received adequate interest from both Indian and international bidders, including private equity firms. As per the guidelines set by the board, interested parties have to submit bids by 20 March with proof of funds of Rs1,500 crore. To ensure hassle-free and transparent bidding, the board had appointed former chief justice of India SP Bharucha to oversee the process. Source: Home - Livemint.com | 17 Mar 2009 | 12:40 pm 'Indian IT industry capable of surviving economic crisis'India's IT industry is well-placed to weather the global economic crisis despite decline in exports of such services including computer software.Source: Daily News & Analysis: Money News | 17 Mar 2009 | 12:35 pm IPL organisers submit revised schedule to home ministryNew Delhi: The Indian Premier League organisers on Tuesday submitted a revised schedule to the home ministry in a bid to salvage the high-profile Twenty20 cricket event which has run into trouble due to security concerns. A day after meeting between home ministry and IPL officials failed to break the deadlock on the schedule which coincides with the general elections, the organisers have re-worked the dates for the third time. “We have received a new schedule from the IPL organisers today and have sent to states for their view,” a home ministry spokesman said. Desperate to get the cash-rich event on track, the IPL’s top brass held a series of meetings since Monday to fine-tune the schedule which has now taken into account the reservations and security constraints of the states hosting the matches. The home ministry had told the organisers that cosmetic changes in the fixture was not acceptable and they would have to finalise the dates in consultation with the state governments. With less than a month to go for the cash-rich Twenty20 event to get underway, the home ministry’s rejection of the second proposed schedule submitted by the IPL organisers has put a question mark on the fate of the tournament beginning 10 April. A three-member BCCI team, led by secretary N Srinivasan, met special secretary (internal security) Raman Srivastava in the home ministry where they were told not to indulge in cosmetic changes. “The home ministry have expressed their concerns, they have explained it to us in details. We’ve also explained our difficulties and concerns and the importance of all the stakeholders,” Srinivasan had told reporters. The IPL is keen to hold the tournament between 10 April and 24 May as any postponement would mean that the event has to be shelved till this period next year in view of the crammed cricketing calendar. A postponement would also entail heavy financial losses for the organisers as well as the eight franchisees many of whom have already gone ahead with their merchandising and ad campaigns. Source: Home - Livemint.com | 17 Mar 2009 | 12:32 pm Dish TV plans to add three million subscribers this yearDirect-To-Home player Dish TV on Tuesday said it expects to add about three million subscribers this year, taking the total number to eight million.Source: Daily News & Analysis: Money News | 17 Mar 2009 | 12:31 pm Bank Muscat to sell entire stake in HDFCMUSCAT (Reuters) - Bank Muscat said on Tuesday it had sold 40 percent of its stake in HDFC Bank and would offload the rest over time as its seeks cash to cover losses from equity investments.Source: Reuters: Money News | 17 Mar 2009 | 12:28 pm BNP Paribas awaits India poll before cutting cashMumbai: BNP Paribas’ Indian fund unit holds a fifth of its stock funds assets in cash and sees no major triggers to start buying stocks ahead of federal elections due in April-May, a fund manager said on Tuesday. The firm is not impressed by the three-day spurt, which propelled the BSE benchmark 30-share stock index to its best close since 26 February on Monday, as it sees no fundamental change yet in a slowing domestic economy. “In this whole bear market, we have seen rallies in between. I think it’s on the same lines,” Srividhya Rajesh, vice president for equity funds at Sundaram BNP Paribas Asset Management, said. “It is possible that it will last for a few more days but my sense is that the basic trend has not changed because on the fundamental side we are not seeing any major change,” she told Reuters. Until elections get over “it is a bit difficult for the market to really start moving up on a consistent basis,” the fund manager said, adding her firm was overweight on consumers but remain underweight on most other sectors. India holds a general election between 16 April and 13 May amid a slowdown in the economy which is expected to expand at its slowest pace in six years in 2008-09, which analyst predict will slow even more next year. Domestic demand has slumped and exports have dipped sharply and a widening fiscal deficit has many investors worried. A slowing credit growth and lingering global economic woes were adding to the weak sentiment, Srividhya Rajesh said. “Near-term things continue to look tough,” she said, adding there was a chance of a recovery in the second half by when she hopes a new government would start formulating policies, banks might revive lending and risk appetite could start returning. “Things should start looking in the December-quarter.” Two of her funds hold more than a fourth of the assets as cash and remain underweight on sectors such as auto, energy, capital goods, metal and telecom but are relatively bullish on defensives such as consumer stocks. “This is probably the only sector where we see some certainty of growth,” said the fund manager, whose firm holds shares such ITC and Britannia Industries. “Commodity prices have come down, rural income is buoyant and that should help volume growth,” she said, adding pressure on refinery margins was keeping her cautious of energy shares while outlook for capital goods shares remained weak. “The government capex is the only pillar on which they (capital goods firm) are standing right now and the government spending is also kind of getting curtailed because a lot of the projects are getting delayed,” she said. Adding to their woes was relatively poor investment sentiment and financing crunch, she said. “That’s a worry for us,” Srividhya Rajesh added. Source: LatestNews-Home - Livemint.com | 17 Mar 2009 | 12:23 pm See spectrum consolidation after Phase III policy: ENILPrashant Panday, CEO, Radio Mirchi, Entertainment Network India (ENIL) said the radio business continues to do well even though advertisement spends have gone down to a certain extent. He sees lot of spectrum consolidation after phase III policy.Source: Moneycontrol Top Headlines | 17 Mar 2009 | 12:21 pm Margins to remain stable around 2.12.2%: HDFCKeki Mistry, Vice Chairman and Managing Director, HDFC, hopes to maintain the companys asset quality and added that he has not seen any trend in the fourth quarter that indicates a rise in their NPAs. Further, he expects margins to remain stable between 2.1%2.2%. He said the cost of funds is in line with other banks.Source: Moneycontrol Top Headlines | 17 Mar 2009 | 12:11 pm Slowdown-hit DTH industry seeks government interventionHit by the global slowdown and slow growth in subscriber base, the country's direct-to-home (DTH) service providers Tuesday asked the government to bail them out and take a relook at the four-level tax system imposed on them.Source: IndiaeNews.com: Business News | 17 Mar 2009 | 12:03 pm Markets close in red as global cues weakenIn spite of a late surge, Indian equities closed marginally in the red Tuesday, with key index ending trade 0.89 percent lower.Source: IndiaeNews.com: Business News | 17 Mar 2009 | 12:01 pm CBI seeks custody of Satyam Rajus for two more daysThe Central Bureau of Investigation (CBI), which is probing the Rs.78 billion (Rs.7,800 crore) fraud in Satyam Computer Services, Tuesday sought custody of disgraced chairman of the IT major B. Ramalinga Raju, his brother B. Rama Raju and former chief financial officer Vadlamani Srinivas for two more days.Source: IndiaeNews.com: Business News | 17 Mar 2009 | 12:00 pm No plans to sell any property: TV TodayG Krishnan, CEO, TV Today, expects advertising spends to improve after April. He feels that advertising revenues have slowed down, but March will show better performance. Advertising spends are likely to be at par with last elections.Source: Moneycontrol Top Headlines | 17 Mar 2009 | 11:57 am Goldman Sachs says it is not a bidder for SatyamBANGALORE (Reuters) - Goldman Sachs said on Tuesday a newspaper report it was a potential investor in fraud-hit Indian outsourcer Satyam Computer Services was incorrect.Source: Reuters: Money News | 17 Mar 2009 | 11:53 am Coca Cola targets to be 'water neutral' by 2012Coca Cola plans to replenish all the groundwater used by the company in India back into nature and become completely 'water neutral' by 2012.Source: Daily News & Analysis: Money News | 17 Mar 2009 | 11:38 am Coca Cola targets to be ‘water neutral’ by 2012New Delhi: Global beverages player Coca Cola plans to replenish all the groundwater used by the company in India back into nature and become completely ‘water neutral´ by 2012. “Our target is to neutralise all ground water usage by the company in India by the end of the current calender year and become water neutral for all products and processes by 2012,” said Coca Cola India director (Quality and Environment) Navneet Mehta at a CII summit here. Water neutrality is a term used to describe the ratio of ground water usage by any user vis-a-vis the quantity put back into nature. Mehta said the company has achieved a replenishment level of 82% on its annual ground water usage in India so far. “Our ground water usage ratio has improved by up to 42% between 1998 and 2008. We have a policy of annually revising water use plans in all our 56 facilities in India,” Mehta said. The company is also planning to commission a study of five watershed projects this year. “We will study the results and our plan is to have such watershed projects in all our 56 plants within next five years,” he added. Source: LatestNews-Home - Livemint.com | 17 Mar 2009 | 11:24 am Satyam Board to scrutinise bids later this weekThe Government-appointed Board will look into the bids for strategic stake in Satyam Computer on Friday or Saturday, said a source.Source: Daily News & Analysis: Money News | 17 Mar 2009 | 11:20 am FDI rose 55% in Jan to $2.74 bn: sourceNew Delhi: Foreign direct investment (FDI) into India snapped a three-month fall and rose 55% in January, an industry ministry official, who declined to be named, said on Tuesday. FDI inflows between April and January grew 65% to $23.9 billion, he said. India has an FDI target of over $35 billion in the year to 31 March. Inflows in January rose to $2.74 billion, the official said. In January 2008 FDI inflows stood at $1.77 billion, according to data available on the ministry’s website. FDI into India fell in October through December from the corresponding months in the earlier year, the data shows. The global financial crisis has dented global FDI flows, and the United Nations in January had said 2009 would see further declines from the 21% drop in the previous year, hitting developing countries like India Source: Home - Livemint.com | 17 Mar 2009 | 11:19 am BSE Sensex snaps 3-day rise, falls 0.9 pctMUMBAI (Reuters) – The BSE Sensex snapped a three-day winning streak and slipped 0.9 percent in choppy trade on Tuesday, with an early drop in European markets hastening profit taking.Source: Reuters: Money News | 17 Mar 2009 | 11:18 am Telenor to get 33.5% vs 26% stake in Unitech WirelessUnitech Wireless has readjusted its stake valuation, reports CNBCTV18. Telenor is likely to get 33.5% as compared to the 26% stake for Rs 1,260 crore in Unitech Wireless. Telenor will now acquire 67.25% stake as against the 60% earlier. Post this, the enterprise value of Unitech Wireless has come down to Rs 10,900 crore.Source: Moneycontrol Top Headlines | 17 Mar 2009 | 11:14 am Govt mulls 100-bln-rupee package for shipping cosMUMBAI (Reuters) - The government is considering a 100-billion-rupee package to help local shipping firms finance new vessel acquisitions as global lenders tighten up their purse strings, a junior minister said on Tuesday.Source: Reuters: Money News | 17 Mar 2009 | 11:14 am India’s fiscal deficit seen at 10.3% in FY10: NomuraMumbai: India’s combined fiscal deficit is likely to narrow slightly to 10.3% of the country’s gross domestic product (GDP) in the fiscal year starting 1 April, from 10.8% in 2008-09, Nomura said in research note on Tuesday. The government’s gross market borrowing is seen at $83 billion in FY10, compared with the government’s estimate of Rs3.62 trillion ($70.1 billion). Funding such a large deficit would be the key challenge for the government and the onus of conducting the market borrowing in a non-disruptive manner would lie with the central bank (Reserve Bank of India), Sonal Varma, economist at Nomura, said in a note. The government could consider privately placing the bonds with the central bank as an option, while issuance of shorter-term dated bonds and treasury bills to reduce risk duration for banks would also help, she added. “At a time when banks are wary of taking additional interest rate risk on their balance sheets, the RBI may have to fill the gap by expanding its own balance sheet through deficit financing,” Varma said. Nomura also expects the government to announce an additional 0.6% of GDP of planned expenditure at its final budget in June/July. “On the fiscal policy front, little is likely to happen until after the May elections because the election code of conduct,” Varma wrote. Nomura expects the RBI to further reduce its key short-term interest rates by 100 basis points each in tranches of 50 bps between April and June. “We judge that the reluctance of banks to cut rates and lend, and a heavily geared government are diluting the transmission of stimulus to the economy,” the note said. “The bottomline is that the policy action is nearly over; policy effectivemenss is now the key,” Varma wrote. Source: Home - Livemint.com | 17 Mar 2009 | 11:01 am No immediate plan to reduce lending rates: PNBNew Delhi: The country’s second largest state-run lender, Punjab National Bank, has no immediate plans to further reduce lending rates, bank’s chairman and managing director K C Chakrabarty has said. “We are already aggressive (on prime lending rate cut)...(but) immediately no plan,” he told reporters here last night after the bank signed an agreement with state-owned Life Insurance Corporation (LIC). Under the agreement, the lender would sell insurance policies through its branches. PNB has reduced its benchmark lending rate by 50 basis points to 11.50% in February. Earlier this month, the Reserve Bank had cut the short-term lending rate (repo) and short-term borrowing rate (reverse repo) by 50 basis points each, signaling banks to further reduce lending rates. He further said unless the banks are able to reduce their deposit rates, they will not be able to reduce lending rates any more. Chakrabarty said, “The government is giving 8% on the saving (post office schemes), so I cannot go down below that.” However, the bank chief added, removal of certain structural bottlenecks like cross subsidisation of interest rates could help in reduction of prime lending rates. Source: LatestNews-Home - Livemint.com | 17 Mar 2009 | 10:45 am Govt mulls Rs100 bn package for shipping firmsMumbai: The government is considering a Rs100 billion package to help local shipping firms finance new vessel acquisitions as global lenders tighten up their purse strings, minister of state for shipping said on Tuesday. “We have requested the finance ministry to consider a Rs10,000 crore package (for shipping firms),” APVN Sarma, secretary, ministry of shipping, said on the sidelines of a maritime conference. “Foreign banks are not lending now. Traditionally they’ve been the lenders for shipping acquisitions. This is some sort of financing for acquisition of new ships by Shipping Corp of India and also by other Indian private shipping companies,” he added. State-run Shipping Corp has planned capital expenditure to the tune of Rs150 billion in the Eleventh five year plan period and curently has an order pipeline for 29 new ships. The government will disburse loans of up to Rs100 billion to shipping firms, Sarma said, but did not elaborate on interest rates and other details. Source: LatestNews-Home - Livemint.com | 17 Mar 2009 | 10:40 am Markets pull down shutters in redIndian equities closed in the red Tuesday amid profit-booking by investors in the afternoon session. A key index ended trade 0.91 percent lower than its previous close.Source: IndiaeNews.com: Business News | 17 Mar 2009 | 10:30 am Nokia to cut another 1,700 jobs worldwideHelsinki: Nokia, the world’s leading mobile phone maker, said Tuesday it planned to cut another 1,700 jobs worldwide as part of cost-cutting measures. “Altogether these plans will affect approximately 1,700 employees globally. Where applicable, Nokia will start consultations with employee representatives about these plans,” the company said in a statement. Nokia’s head of communications, Arja Suominen, told AFP the new job cuts were part of plans announced last December to slash costs by around €700 million euros ($909 million) or more over the next couple of years. “We have since announced several initiatives. This is a new initiative,” she said. Nokia also said last month it planned to cut 1,000 jobs globally through voluntary departures. Source: LatestNews-Home - Livemint.com | 17 Mar 2009 | 10:24 am Mercedes-Benz optimistic of maintaining growth this yearDespite the slowdown, luxury car maker Mercedes-Benz is optimistic of maintaining growth in the Indian market during the 2009 fiscal.Source: Daily News & Analysis: Money News | 17 Mar 2009 | 10:18 am Layoffs in IT sector needed to remain afloat: IT veteranAn information technology sector veteran has strongly defended job cuts, saying it's natural in times of recession to stay the course and remain afloat.Source: Daily News & Analysis: Money News | 17 Mar 2009 | 10:13 am Mahindra sees naval unit partner by 2009 endNew Delhi: The defence systems unit of Indian utility vehicle maker Mahindra & Mahindra will have a long-term strategic partner for its naval business by the end of 2009, its chief executive said on Tuesday. “We have started talking to a range of firms,” Khutub Hai, a retired brigadier, told reporters at the inauguration of a defence manufacturing facility near New Delhi. Hai said Mahindra Defence Systems had been in talks with WASS, a wholly-owned unit of Italian aerospace and defence group Finmeccanica, but said that partnership “was not happening”. “We just had to call it off,” he said. The 400-million-rupee ($7.8 million) new facility started production in January and will roll out 200 defence vehicles by the end of March and will be ramped up to 350 vehicles next year. “In the future if volumes justify we could be joining hands with some governments in Africa to set up a facility like this,” Hai said. Mahindra is spinning off its defence business into two wholly-owned units, focusing on land systems and naval systems. The land systems business has government approval for a joint venture with BAE Systems that will start by April. The defence system business is targeting revenues of about Rs20 billion in five years, up from Rs1 billion rupees now. Source: Home - Livemint.com | 17 Mar 2009 | 10:11 am Dell unveils world’s thinnest laptopBy San Francisco: Dell Inc unveiled its “luxury” Adamo laptop on Tuesday, calling it the world’s thinnest notebook as it seeks to compete in the high-end ultraportable market defined by Apple Inc’s MacBook Air. The sleek, aluminum-encased notebook is 0.65-inches thick and comes with a 13.4-inch screen and a 128-gigabyte solid-state drive. Shipping begins on Tuesday. Starting at $1,999, the Adamo is positioned as Dell’s new high-end brand. Another configuration will sell for $2,699. The device comes packed in a clear case along with an optional branded sleeve or tote bag from designer luggage and handbag label Tumi. The Adamo is meant “to make a design statement, to surprise people that this is a Dell,” said marketing executive John New. “This is for the customer that has that discerning taste, and is willing to pay a little more for that.” Dell has been working to generate buzz for Adamo, Latin for “to fall in love with.” Word of the PC began to leak late last year, and the company hosted an event in January in Las Vegas where it provided a fleeting glimpse of the laptop as it was held aloft by a model. Apple helped launch the so-called ultraportable category last year with MacBook Air which, at 0.76 inches, previously laid claim to the title of world’s thinnest. The Adamo at 4 pounds is heavier than the Air, which weighs 3 pounds and is priced from $1,799. Most PC makers, including Lenovo Group, Hewlett Packard Co and Sony Corp also sell ultraportables. Dell has been trying to reinvigorate its consumer brand amid efforts to diversify its revenue base. Business customers make up around 80% of Dell’s revenue, while PCs account for roughly 60%. Last week, Dell launched the $799 Studio One 19, a touchscreen all-in-one PC meant for family use in the kitchen or the living room. The Studio One 19 will be available first in Japan and then in other countries later in the spring. Dell shares have slid 13% since the start of 2009, while Apple’s have jumped 12%. Dell, however, has outperformed Hewlett-Packard, whose stock has dropped 20% since the year began. Source: Tech News - Livemint.com | 17 Mar 2009 | 10:10 am Dell unveils world’s thinnest laptopBy San Francisco: Dell Inc unveiled its “luxury” Adamo laptop on Tuesday, calling it the world’s thinnest notebook as it seeks to compete in the high-end ultraportable market defined by Apple Inc’s MacBook Air. The sleek, aluminum-encased notebook is 0.65-inches thick and comes with a 13.4-inch screen and a 128-gigabyte solid-state drive. Shipping begins on Tuesday. Starting at $1,999, the Adamo is positioned as Dell’s new high-end brand. Another configuration will sell for $2,699. The device comes packed in a clear case along with an optional branded sleeve or tote bag from designer luggage and handbag label Tumi. The Adamo is meant “to make a design statement, to surprise people that this is a Dell,” said marketing executive John New. “This is for the customer that has that discerning taste, and is willing to pay a little more for that.” Dell has been working to generate buzz for Adamo, Latin for “to fall in love with.” Word of the PC began to leak late last year, and the company hosted an event in January in Las Vegas where it provided a fleeting glimpse of the laptop as it was held aloft by a model. Apple helped launch the so-called ultraportable category last year with MacBook Air which, at 0.76 inches, previously laid claim to the title of world’s thinnest. The Adamo at 4 pounds is heavier than the Air, which weighs 3 pounds and is priced from $1,799. Most PC makers, including Lenovo Group, Hewlett Packard Co and Sony Corp also sell ultraportables. Dell has been trying to reinvigorate its consumer brand amid efforts to diversify its revenue base. Business customers make up around 80% of Dell’s revenue, while PCs account for roughly 60%. Last week, Dell launched the $799 Studio One 19, a touchscreen all-in-one PC meant for family use in the kitchen or the living room. The Studio One 19 will be available first in Japan and then in other countries later in the spring. Dell shares have slid 13% since the start of 2009, while Apple’s have jumped 12%. Dell, however, has outperformed Hewlett-Packard, whose stock has dropped 20% since the year began. Source: LatestNews-Home - Livemint.com | 17 Mar 2009 | 10:10 am Coal India to begin prospecting in MozambiqueMaputo: Mozambique has given the green light to Coal India to begin exploring two blocks of carbon bed whose rights the company won in 2008, Mozambican state media in the African nation said on Tuesday. The government has approved the mining licence for India’s coal firm and prospecting is set to begin soon, Noticias newspaper reported. Exploration is expected to last more than two years. The two blocks cover 200 square kilometres (77 square miles) in the northwestern province of Tete and have estimated reserves of between 500 million and one billion tonnes of thermal and coking coal. Mozambique awarded rights to the blocks to Coal India following a public contest in 2008. A Mozambican company won rights to a third block. The terms of Coal India’s investment are still under discussion, Noticias reported, but the company has agreed to give Mozambique 15% of the coal mined. The remaining 85% will likely be exported to India, a net coal importer whose growing needs for energy and steel have stoked demand for the carbon-based mineral. Source: LatestNews-Home - Livemint.com | 17 Mar 2009 | 10:03 am European shares snap 5-day winning streak; oils, banks downLondon: European shares snapped a five-day winning streak in early trade on Tuesday as news Alcoa is to slash its dividend weighed on miners, oils tracked crude lower and investors took profits in banks. By 0938 GMT (15:08pm), the pan-European FTSEurofirst 300 index of top shares was down 1.1% at 713.34 points, following a 2.7% rise in the previous session. Banking stocks were one of the worst performers. American Express said that US credit card delinquencies rose to 8.7% in February from 8.3% in January, while a rise in the default rate at Citigroup to 9.33% in February from 6.95% a month earlier disappointed analysts. BNP Paribas, Credit Suisse and Banco Santander were down 1.2-2.8%. Analysts said investors were booking gains after a 4.5% gain in the DJ STOXX European banks index over the past week. “Some profit taking in the financials following on from the news by American Express about arrears on its credit cards,” said Jim Wood-Smith, head of research at Williams de Broe. “It has just been taken as an excuse to bank profits after the rises we have seen in the last few sessions as the news shouldn’t have come as a surprise.” Mining stocks fell after Alcoa said it would slash its dividend, issue stock and convertible notes worth about $1.1 billion and trim its 2010 spending to help weather the steep downturn in aluminum demand. The stock was down 12% in Frankfurt. Anglo American, Antofagasta, BHP Billiton, Eurasian Natural Resources Corporation, Rio Tinto and Xstrata were 1.9-5.4% lower, also depressed by a 1% fall in copper futures. Energy stocks were lower as crude fell below $47 a barrel. Royal Dutch Shell lost 3.1% after it said it was under investigation by US authorities for potential breaches of overseas bribery rules. BG Group, BP and Total were down 0.9-1.2%. One of the few sectors not in the red was non-life insurers. A senior EU lawmaker said the European Union is close to a deal on rules obliging insurers to set aside enough capital to cover risks on their books, easing industry worries that the process would drag on for months. Swiss Re gained 3.3% after it said it should be able to generate enough funds to buy back convertible bonds issued to Warren Buffett’s Berkshire Hathaway. Generali was up 1.3%. Later in the session, investors will be looking at US data on housing starts in February, as well US monthly producer price data and Germany’s ZEW economic sentiment index. A two-day US Federal Reserve meeting starting later in the day will also be in focus. “What is interesting in the US housing data is there have actually been continuing signs of further mortgage applications which is encouraging. I hope to see these figures a bit more positive. But with PPI I expect it to be weaker and German ZEW is likely to continue to be poor,” said Stewart. Across Europe, the FTSE 100 index was down 0.8%, Germany’s DAX was down 0.8% and France’s CAC 40 was 1.4% lower. Source: Home - Livemint.com | 17 Mar 2009 | 10:02 am Gold demand still weak, buyers eye fallsl Mumbai: India’s gold demand was weak on Tuesday as buyers stayed away on hopes of more falls, traders said. “We are not able to sell even one gram of gold. The local demand is very bad and everyone is waiting for lower prices,” said Ranjeeth Rathod, a director with Chennai-based wholesaler, MNC Bullion. The benchmark April contract recovered from a low of Rs15,109 per 10 grams to trade Rs15,168, still down 0.15%, at 1:50pm. Overseas gold dipped 0.4% pressured by scrap dealers selling to lock in profits around $920 per ounce, but a rise in Asian equities suggested some recovery in risk appetite. Traders said a fall in prices to a minimum of $875 an ounce would revive demand ahead of the weddings in the first week of April. “All traders have placed advance orders in between $875 and $905 for fresh buying,” said Harshad Ajmera, proprietor of JJ Gold House in Kolkata. Local gold was cheaper than bank gold, signifying weak demand and profit-taking by traders. “There is disparity of around 200 rupees between bank and local gold,” said Rathod. Source: Home - Livemint.com | 17 Mar 2009 | 9:25 am Oil trims gains to hover below $47Peth: Oil fell below $47 a barrel on Tuesday, giving up some of previous session’s gains, as economic concerns returned to the fore amid reports showing the US economy was deteriorating further. Poor economic data from the United States, where industrial output in February plummeted to its lowest level in almost seven years, served as a stark reminder that the 14-month long recession in the world’s largest economy was far from over, analysts said. US light crude for April delivery fell 66 cents to $46.69 a barrel by 1:39pm. The contract settled at $1.10 higher at $47.35 on Monday. London Brent crude fell $1.03 cents to $45.43. “The market is now reacting to economic data and there may be concerns that the credit card defaults may worsen the financial situation,” said John Vautrain, an analyst at Purvin & Gertz in Singapore. US credit card defaults rose in February to their highest level in at least 20 years, undermining hopes of bank stability. Oil has tumbled $100 from a record high above $147 last July as the global economic meltdown has dented demand for oil worldwide. The Organization of the Petroleum Exporting Countries (Opec) met on Sunday and decided not to cut output further, but rather concentrate on existing cuts that total 4.2 million barrels per day since September. The cartel’s compliance with current cuts is estimated at about 80% and full adherence would take a further 800,000 barrels per day off the market. “Opec has really restored some its credibility and there is optimism that it will be able to reach the target. If they do, prices could trend upwards to around $50 a barrel,” said Clarence Chu, a trader at US-based Hudson Capital Energy in Singapore. With Opec uncertainties behind it, analysts said the market will look to economic indicators and the performance of equities markets for guidance. Economic indicators due later on Tuesday include US February Producer Price Index and weekly US retail sales. The Federal Open Market Committee will also hold the first of a two-day meeting on interest rates. In addition, traders will also be watching out for this week’s inventory data as a gauge of energy demand in the United States, with data from industry group American Petroleum Institute (API) due later today giving near-term direction. A preliminary Reuters poll ahead of US weekly inventory reports showed analysts forecasts for a 500,000 barrel increase in domestic crude stocks last week. Source: Home - Livemint.com | 17 Mar 2009 | 9:11 am Telenor to have greater stake in Unitech WirelessNorwegian telecom major Telenor Tuesday said it will take 67.25 percent stake in Unitech Wireless, up from the previously stated 60 percent, for Rs.61.2 billion investment.Source: IndiaeNews.com: Business News | 17 Mar 2009 | 9:03 am Rs.10-mn assistance for jobless diamond workers' childrenTwo diamond industry associations in Gujarat Tuesday came forward with Rs.10-million (Rs.1 crore) education assistance for the children of jobless diamond workers in the state.Source: IndiaeNews.com: Business News | 17 Mar 2009 | 9:01 am Unitech to use about $80 mln from Telenor deal - TVMUMBAI (Reuters) - Unitech Ltd will receive around 4 billion rupees ($80 million) that it could use to repay debt from the sale of a controlling stake in its telecom unit, a top official told a television channel.Source: Reuters: Money News | 17 Mar 2009 | 9:00 am U.S. OKs record $2.1 bln arms sale to IndiaWASHINGTON (Reuters) - President Barack Obama's administration has cleared a $2.1 billion sale to India of eight Boeing Co P-8I maritime patrol aircraft, the largest U.S. arms transfer to India to date.Source: Reuters: Money News | 17 Mar 2009 | 6:07 am Losses mount pressure on US auto parts makersDetroit: The pressure on US auto parts makers and dealerships mounted on Monday with more posting steep losses, while auditors either expressed doubt over the ability of some to survive or were expected to do so soon. US auto parts suppliers and dealerships face growing financial strains amid the downturn in auto sales that has monthly sales rates fall to the lowest level in 27 years. For parts makers, deep production cuts by automaker customers in recent months have severely crimped revenue, while dealership groups are stymied by cash-draining inventory and few signs that US auto sales will pick up any time soon. Among the parts suppliers, Visteon Corp said it expects its auditors to question its ability to continue as a going concern, Noble International Ltd said it was seeking short-term funding from automakers and Dana Holding Corp posted a $256 million fourth-quarter net loss. Visteon said a “going concern” notice could trigger a default and it was in discussions with creditors on a waiver for its credit facilities. Noble said without further help from General Motors Corp, Ford Motor Co, Chrysler and Comerica Inc it is unlikely it will be able to maintain operations to 23 March. Dana said it expects to trim the workforce to about 24,000 by the end of March from roughly 25,000 now, and make further reductions the rest of 2009, according to its annual report filed on Monday. Dana cut about 6,000 positions in 2008. “We believe we are taking the difficult actions necessary to survive in the current environment and compete over the long term,” Dana Chief Executive John Devine said in a statement. “There can be no assurances, however, if the global economy deteriorates substantially beyond our planning assumptions.” Dealerships also racked up losses. Asbury Automotive Group Inc posted a $365.4 million fourth-quarter net loss and its auditors raised doubt about its ability to continue as a going concern. Lithia Motors Inc posted a $4.2 million fourth-quarter loss, while Sonic Automotive sought an extension to file its annual report and was assessing whether it would be in compliance with its debt covenants through the end of 2009. Sonic said its public accountant recently said it would have to consider including a ‘going concern´ notice. Auditors for American Axle & Manufacturing Holdings Inc have warned that the problems at top customers GM and Chrysler threatened its ability to continue as a going concern. Lear Corp also expects a “going concern” notice. Source: World Business - Livemint.com | 17 Mar 2009 | 6:07 am Citigroup’s Pandit awarded $10.8 mn compensationNew York: Citigroup Inc awarded Chief Executive Vikram Pandit $10.82 million of compensation in 2008, a year when the government propped up the bank with $45 billion of capital. Citigroup also nominated four new independent directors to bolster the banking and financial expertise on its board, including Anthony Santomero, 62, a former president of the Federal Reserve Bank of Philadelphia. The bank faces increased government pressure to right itself after more than $85 billion of writedowns and credit losses since the middle of 2007. Pandit said in February he will accept a $1 annual salary and no incentive pay until the bank is profitable. His nearly $11 million of 2008 compensation included $7.73 million of sign-on and retention awards last January, the month after he took over. “If I were a shareholder, $11 million would be hard to justify for a year where the company’s shares fell almost 80%,” said Walter Todd, a portfolio manager at Greenwood Capital Associates LLC in Greenwood, South Carolina. “But if he signed a contract, I guess it’s hard to argue.” In 2008, the 52-year-old Pandit was awarded a $958,333 salary, $9.84 million of stock and option awards and $16,193 of other compensation, according to a summary compensation table included in a Monday proxy filing with the US Securities and Exchange Commission. Some pay consultants and governance experts tabulate executive pay differently, saying the summary total may be imperfect because it counts options and stock as part of pay when they vest rather than when they are awarded. The value of shares and options as recorded in the summary table of a company’s proxy filing typically reflects their value at the time they were granted. Their actual value now may be substantially lower, given that Citigroup’s shares, for example, dropped nearly 80% last year. Wall Street compensation has come under intense scrutiny, especially at banks that, like Citigroup, received money under the government’s Troubled Asset Relief Program. Citigroup got a $45 billion injection from TARP and the government agreed to share losses on $300.8 billion of troubled assets. Pandit’s compensation was higher than the $9.96 million that Bank of America Corp, which has also received $45 billion of TARP money, awarded its CEO, Kenneth Lewis. New directors The other nominated directors are Jerry Grundhofer, 64, a former CEO of US Bancorp; Michael O’Neill, 62, a former CEO of Bank of Hawaii Corp and chief financial officer of a Bank of America predecessor; and William Thompson, 63, a former co-CEO of bond fund manager Pacific Investment Management Co. If the nominations are approved, Citigroup’s board would have 14 members. Three of its 15 current members are not standing for reelection and two have reached retirement age. The three directors stepping down are former Citigroup senior counselor and US treasury secretary Robert Rubin; former chairman Sir Win Bischoff; and Roberto Hernandez Ramirez, who chairs Citigroup’s Mexican unit Banamex. Kenneth Derr and Franklin Thomas are leaving because of the retirement age. Richard Parsons, Citigroup’s chairman, is the bank’s only outside director with top-level financial services experience, having once run Dime Savings Bank of New York. He is better known as Time Warner Inc’s former CEO. Shareholders are expected to vote on the director nominations at Citigroup’s annual meeting on 21 April. Source: World Business - Livemint.com | 17 Mar 2009 | 5:53 am Computer makers eye bigger stake in phonesThe computer industry has hit upon its next big thing. It is called a phone. Emboldened by Apple Inc.’s success with its iPhone, many personal computer (PC) makers and chip companies are charging into the mobile phone business, promising new devices that can pack the horsepower of standard computers into palm-size packages.  In the race: (left) A mobile Internet device based on Nvidia’s Tegra chip (NYT). PC makers and chip companies are charging into the mobile phone business, promising new devices that can pack the horsepower of standard computers into palm-size packages.Minh Uong / NYT “The action is really with the smartphones, where everyone is competing to cram the most features into a phone,” said Linley Gwennap, a veteran chip industry analyst and head of the Linley Group. “I think of PCs as just kind of boring these days.” The new smartphones promised by PC companies will, among other things, handle the full glory of the Internet, power two-way video conferences, and stream high-definition movies to your TV. It is a development that spells serious competition for established cellphone makers and phone companies. Apple was the first to spot a sleepy industry, shaking up the handset category two years ago with the iPhone. Until recently, the handset makers were the ones reacting to the iPhone—and then with me-too products. Now fellow PC makers are announcing plans for smartphones in a variety of sizes, shapes and abilities. PC industry has a spotty record for expanding into consumer electronics Acer Inc., the big PC manufacturer, has gone from offering no cellphones to selling eight new models, with more to come this year. “The smartphone market is the natural direction of our long-term mobile strategy,” Gianfranco Lanci, chief executive of Acer, a Taiwan-based company, said as he announced the products at last month’s World Mobile Conference in Barcelona, Spain. “We’re just taking on another dimension.” Dell Inc. has also worked on prototype phones but has not committed to making a new product. And Asustek Computer Inc., the company that was first to market ultraportable laptops known as netbooks, has new smartphones coming. The suppliers to the PC industry have also started shifting to the new market. Intel Corp. announced a deal to supply the cellphone maker LG Electronics Inc. with chips for new mobile devices. Nvidia Corp., the PC graphics-chip titan, signed a deal to provide three smartphone makers—which supply handsets to brand-name manufacturers and carriers—with its new Tegra processor. “The rise of the smartphone and things like graphics and 3-D images weren’t important when the incumbents built this business,” said Michael Rayfield, the general manager of Nvidia’s mobile business unit. “This is a once-in-a-lifetime deal where a huge market changes the things that are important to it.” With smartphones and PCs taking on many of the same functions, there is certainly a fear among PC makers that if they do not get into cellphones, cellphone makers will start building PCs. Acer has characterized the smartphone business as a volatile battlefield, saying it needs to fire first and go after the cellphone makers before they come after it. Indeed, Nokia Oyj, the world’s largest cellphone maker, has said it is weighing whether to get into the PC business. The convergence of the two devices has long been predicted, but it took a confluence of industry changes for it to begin in earnest. For decades, chip manufacturers rushed to leapfrog one another with faster processors, and computer makers scrambled to squeeze more functions into smaller boxes. But ever-faster chips eventually become impractical. Their speed requires vast amounts of power and cooling. The smartphones give the PC makers a chance to extend their newfound expertise in creating low-power products. Acer hopes to ride its success selling laptops and netbooks into the cellphone market through a mix of new software and wireless data plans. It is working on software that will link all of its portable products together, synchronizing email, contacts, media files and other information among the products. This could open up a way for carriers to sell more wireless 3G data services to consumers, since they could offer a single plan covering multiple devices. It is an extension of the model that Dell and others are already trying, in which carriers essentially give $400 netbooks away to consumers in exchange for two-year contracts to data plans. Such plans can cost as much as $1,500 over their lifespan. Deals that cover laptops as well as phones could prove troublesome for existing cellphone companies, as it would offer consumers a suite of products that were tightly integrated and supported. In addition, PC manufacturers come from an industry very familiar with low profit margins and tight cost structures, and would bring those pressures to bear on established cell manufacturers. “Acer has learnt to live and prosper on very thin margins,” said Aymar De Lencquesaing, the head of the company’s smart hand-held business group. “I think we bring this kind of experience to a market that has perhaps has not yet had to endure similar rigour.” Both Acer and Nvidia have promised low-cost smartphones, threatening the most lucrative part of the cellphone makers’ business. At the same time, the phone market has been bombarded with operating systems from Microsoft Corp., Google Inc. and Intel. There is a concern among longstanding players in the industry that operating systems and phone designs are becoming commodities, and that the barrier to entering the marketplace is lower than when mobile phone manufacturers were building each handset from scratch. This gives companies such as Motorola Inc. and Nokia an entirely new set of problems besides falling sales and shrinking margins. “It’s cataclysmic for the phone guys, who were used to playing golf on Wednesday afternoons,” said Roger Kay, president of Endpoint Technologies Associates, a research firm. “Those times start to look pretty good now.” Not that such a move will be easy for the PC makers. The PC industry has a spotty record for expanding into consumer electronics. Dell stumbled with its MP3 player, and Hewlett-Packard Co.’s line of televisions failed to catch on with consumers. Both products have been discontinued. Also, the established mobile phone makers have longstanding relationships with carriers, which remain reluctant to provide customer support for a wide array of devices from myriad manufacturers. Beyond that, traditional cellphone companies do not want to compete with the likes of Microsoft and Intel, which have grown over the years to dominate the PC business. Perhaps most critically, traditional phone and mobile chip companies have expertise in making phones that work. “It has to be a good cellphone first,” said Ed Snyder, an analyst with Charter Equity Research. “This is about as far away from PCs as raising elephants.” ©2009/THE NEW YORK TIMES Source: Tech News - Livemint.com | 17 Mar 2009 | 4:35 am Outraged Obama vows to stop AIG bonusesWashington: President Barack Obama sought to claw back bonuses paid to employees of insurer AIG on Monday, expressing outrage that taxpayer money was used to reward executives at the bailed-out firm. Though the insurance giant is being kept alive on a government bailout of up to $180 billion, it is now paying out $165 million in bonuses. “This is a corporation that finds itself in financial distress due to recklessness and greed,” Obama said. “Under these circumstances, it’s hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay,” he said at the White House. “How do they justify this outrage to the taxpayers who are keeping the company afloat?” Obama said he had ordered Treasury Secretary Timothy Geithner to pursue “every single legal avenue” to cancel the bonuses and a Treasury official said later it would modify a planned $30 billion capital infusion for American International Group to try to recoup the bonuses. White House spokesman Robert Gibbs said the Treasury could impose rules on the $30 billion loan facility for AIG but declined to go into specifics or spell out ways the legal avenues available to the administration to block the payments. Obama said Geithner was working on the problem. “I want everybody to be clear that Secretary Geithner’s been on the case. He’s working to resolve this matter with the new CEO, Edward Liddy, who, by the way, everybody needs to understand, came on board after the contracts that led to these bonuses were agreed to last year,” Obama said. Liddy told Geithner in a letter the insurer was legally obliged to fulfill 2008 employee retention payments but had agreed to revamp its system for future bonuses. Obama said overall financial regulatory reform was vital to ensure this did not occur again. He said the government needed “some form of resolution mechanism in dealing with troubled financial institutions, so that we’ve got greater authority to protect American taxpayers and our financial system in cases such as this.” Pausing to cough, Obama said he was “choked up with anger.” “We don’t have all the ... regulatory power that we need. And this is something that I expect to work with Congress to deal with in the weeks and months to come.” Source: World Business - Livemint.com | 17 Mar 2009 | 3:07 am Sensex up 187 pts, closes at 8,944!The Bombay Stock Exchange benchmark Sensex on Monday gained nearly 187 pts.Source: Zee News : Business | 17 Mar 2009 | 12:14 am Lufthansa unveils cuts in hours of 1,000 staff!The leading German airline, Lufthansa, said Monday it planned to put around 1,000 ground staff on reduced working hours because of a decline in passenger traffic.Source: Zee News : Business | 17 Mar 2009 | 12:14 am Indian banks` NPAs to go up: ING Vysya!Indian banks` may face rising non-performing assets in next fiscal financial services major ING Vysya feared on Monday.Source: Zee News : Business | 17 Mar 2009 | 12:14 am `India headed toward deflation`!The Indian economy is headed towards deflation, and higher unemployment, Goldman Sachs said.Source: Zee News : Business | 17 Mar 2009 | 12:14 am President Barack Obama to block executive bonuses at AIG!President Barack Obama declared Monday he intends to stop insurance giant American International Group from paying out millions in executive bonuses.Source: Zee News : Business | 17 Mar 2009 | 12:14 am Tatas` debt to cross Rs 1-trillion mark; still manageable!Tata group`s total debt is set to exceed Rs 1,00,000 crore in the current fiscal, but it appears comfortable on the liquidity front, a report has said.Source: Zee News : Business | 17 Mar 2009 | 12:14 am One in 56 UK businesses likely to fail !Amid the British economy contracting at a rapid pace, one in every 56 businesses in the United Kingdom is expected to fail this year and the ratio could rise in 2010, says a report.Source: Zee News : Business | 17 Mar 2009 | 12:14 am Coca Cola to leverage digital media to promote Thums Up!Global beverages player Coca Cola on Monday said it would leverage the digital media to promote its sparkling drink brand Thums Up.Source: Zee News : Business | 17 Mar 2009 | 12:14 am Syndicate Bank (Rs 43.85): BuyWe recommend a buy of Syndicate Bank’s stocks from a short-term trading perspective. It is evident from the charts that after encountering resistance around Rs 70 in early January, the stock began to trend downward. This downtrend acceleratedSource: Business Line - Home Page | 17 Mar 2009 | 12:00 am Day Trading GuideDLF is likely to encounter resistance at Rs 168. Initiate fresh long-position only if the stock moves above Rs 168, with tight stop-loss. We recommend a buy on ICICI Bank and SBI for theSource: Business Line - Home Page | 17 Mar 2009 | 12:00 am HCL Tech wins $350-m deal from Reader’s DigestNew Delhi, March 16 HCL Technologies has bagged a $350-million IT outsourcing services order from The Reader’s Digest Association Inc (RDA).Source: Business Line - Home Page | 17 Mar 2009 | 12:00 am Public sector general insurers hold on to market shareKolkata, March 16 The four public sector general insurers – United India Insurance Company, National Insurance Company, New India Assurance and Oriental Insurance Company – have been holding on to their combined market share so farSource: Business Line - Home Page | 17 Mar 2009 | 12:00 am South-based banks see higher NRI remittancesMumbai, March 16 Leading south-based banks such as Federal Bank, South Indian Bank and Catholic Syrian Bank have seen a spurt in remittances from Non-Resident Indians from October 2008.Source: Business Line - Home Page | 17 Mar 2009 | 12:00 am Crisil cuts outlook on Citibank India, 3 other Citi armsMumbai, March 16 Crisil on Monday revised the long-term rating outlook on Citibank India and three group entities – Citicorp Capital Markets Ltd, Citicorp Finance (India) Ltd and Citicorp Maruti Finance Ltd – to ‘Negative’Source: Business Line - Home Page | 17 Mar 2009 | 12:00 am Crisis defused, but future bleak“Jab kuch na ban sakey to tamasha bana diya”, (When they couldn’t make it anything, they made it a farce). Intrigued by this posting made by a Pakistani friend — a journalist — on Facebook early last week, I askedSource: Business Line - Home Page | 17 Mar 2009 | 12:00 am ONGC may suffer over Rs 3,000 cr loss on gas salesWith the Government yet to decide on raising the price of natural gas sold at administered price, ONGC is likely to suffer a loss of over Rs 3,000 crore during the current fiscal. It suffered a loss of Rs 2,140 crore in 2007-08 for sellingSource: Business Line - Home Page | 17 Mar 2009 | 12:00 am Congress smooth off the starting blockChennai, March 16 With the two power-women of the Third Front — Bahujan Samaj Party chief Ms Mayawati and AIADMK General-Secretary Ms J. Jayalalithaa — making it clear to its yet-uncrowned chief, Mr Prakash Karat, the CPI(M) GeneralSource: Business Line - Home Page | 17 Mar 2009 | 12:00 am Banks pay higher advance tax in fourth quarterMumbai/New Delhi, March 16 Banks have bucked the downturn and paid more by way of advance tax for the fourth quarter of 2008-09. But, reflecting the slowdown, payments by corporate houses have shrunk. Banks’ advance tax payout rose sharplySource: Business Line - Home Page | 17 Mar 2009 | 12:00 am Communist manifesto for control rajFrom a moratorium on job cuts to prohibiting participatory notes by foreign institutional investors, and reviewing public-private partnerships in infrastructure, the CPI(M) unveiled its alternative economic policies in the partys election manifesto for the 2009 general elections that focusses on a bigger government role in the economy, more stringent labour laws and more financial regulation.Source: Business Standard | Front Page Headlines | 16 Mar 2009 | 6:44 pm Tata Power may divest part of its stake in Mundra UMPPThe company is mulling the option of divesting equity the amount is still undecided in Coastal Gujarat Power, which is setting up the 4,000 Mw Mundra UMPP. It will also dilute equity in Maithon Power, a 74:26 joint venture with Damodar Valley Corporation.Source: Business Standard | Front Page Headlines | 16 Mar 2009 | 6:41 pm Nano loans to come at hefty premiumSBI may charge 14 to 14.75% for 5-year loans.Source: Business Standard | Front Page Headlines | 16 Mar 2009 | 6:39 pm January FDI reverses 3-month fallAfter contracting for three consecutive months, Foreign Direct Investment (FDI) inflows expanded by 54.66 per cent in January 2009, as overseas companies pumped $2.73 billion against $ 1.76 billion in the same month a year ago.Source: Business Standard | Front Page Headlines | 16 Mar 2009 | 6:37 pm Banks shore up Q4 advance tax mop-upManufacturing sector still sluggish.Source: Business Standard | Front Page Headlines | 16 Mar 2009 | 6:35 pm Cybersquatting cases hit record in 2008: United Nations agencyGeneva: Companies and celebrities ranging from Arsenal football club to actor Scarlett Johansson filed a record number of cybersquatting cases in 2008 to stop others from profiting from their famous names, brands and events, a United Nations agency said on Sunday. Websites in dispute in 2008 included references to Madrid’s 2016 Olympics bid, British Broadcasting Corp. (BBC), Yale University, Research in Motion Ltd’s BlackBerry as well as Arsenal and Johansson, and company names such as eBay Inc., Google Inc. and Nestle SA. The most common business sector in which complaints arose was pharmaceuticals, due to websites offering sales of medicines with protected names. Other top sectors for complaints were banking and finance, Internet and telecommunications, retail, and food, beverages and restaurants. The World Intellectual Property Organization (Wipo) handled 2,329 cases under its dispute procedure for Internet page names. The Internet Corp. for Assigned Names and Numbers (ICANN), which manages the system of Web addresses with endings such as .com and .gov, is preparing to launch many new series of suffixes. These new generic top-level domain names (gTLDs) will allow a vast increase in the number of Web addresses, providing new scope for trademarked names to be abused—or at least making it harder for the trademark owners to monitor them. “The creation of an unknowable and potentially vast number of new gTLDs raises significant issues for rights holders, as well as Internet users generally,” Wipo director-general Francis Gurry said in a statement. The founder of the World Wide Web said on Friday the names system had become mired in politics and commercial games. “It would have been interesting to look at systems that didn’t involve domains,” Tim Berners-Lee, who drafted a proposal 20 years ago that led to the Web, told an anniversary celebration. Gurry said his UN agency was working with ICANN, a not-for-profit corporation based in California, on “pre- and post-delegation procedures” to check the proposed new suffixes and help avoid future litigation. For instance a new suffix “.apple” could well upset the computer, phone and entertainment company Apple Inc. How such suffixes are used and by whom would be important—a fruit-growing company using the .apple suffix would not have the same effect as a company registering a Website “ipod.apple.” Gurry told a news conference that trademarks that had no other meaning, such as Sony and Kodak, were stronger and easier to defend than those based on general words or names, which could be ambiguous. Source: Tech News - Livemint.com | 16 Mar 2009 | 4:57 pm
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