Indian Business Headlines for May 4, 2009

Jubilant Organosys eyes 510% share of $240m generics mkt

Pharmaceutical player, Jubilant Organosys has received US FDA approval for launch of generic Sestamibi in US markets. The market for the drug is expected to be at USD 240 million. Hari S Bhartia, CoCMD, Jubilant Organosys, expects the company to tap 510% of that market in the first year.
Source: Moneycontrol Top Headlines | 4 May 2009 | 3:35 pm

Nestle, Nissan, CIBA assure to continue with Satyam!

In a news that could bring cheer to Satyam employees, three of their big clients Nestle, Nissan and CIBA who were on wait and watch mode have assured to continue business with the firm.
Source: Zee News : Business | 4 May 2009 | 12:22 pm

Sensex rises 521 pts in early trade!

The BSE Sensex Monday rose by over 521 pts to touch a 7-month high of 11,925.18 in early trade.
Source: Zee News : Business | 4 May 2009 | 12:22 pm

Oil prices up in Asian trade at $53.40!

Oil prices were higher in Asian trade Monday as hopes that the worst is over for the global economy overshadowed worries about the swine flu outbreak, analysts said.
Source: Zee News : Business | 4 May 2009 | 12:22 pm

ADB meet kicks off as Asia flexes financial muscle!

The Asian Development Bank launched its annual meeting with donors on Monday, a day after the region announced its first independent liquidity facility, a USD 120 billion fund to counter the economic crisis.
Source: Zee News : Business | 4 May 2009 | 12:22 pm

Bank of America plans to raise $10 bn in capital: Report!

Bank of America Corp is working on plans to raise more than $10 bn in fresh capital, even as it and Citigroup Inc launch last-ditch attempts to convince the US government they do not need to bolster their balance sheets.
Source: Zee News : Business | 4 May 2009 | 12:22 pm

Boston Globe`s management threatens shutdown!

The management of The Boston Globe has threatened to begin the process of shutting down the newspaper in a dispute with its unions over $20 million in cuts.
Source: Zee News : Business | 4 May 2009 | 12:22 pm

Fiat eyes new company with GM Europe, Chrysler!

Fiat Group SpA has confirmed that it is in talks to buy most of General Motors Corp.`s European operations, taking another step toward creating a global automotive powerhouse.
Source: Zee News : Business | 4 May 2009 | 12:22 pm

BSE Sensex up most in 6mths; up 51pct vs 2009 low

MUMBAI (Reuters) – The BSE Sensex jumped 6.4 percent on Monday, their biggest one-day gain in six months, as data showed factory output grew in April for the first time in five months and boosted hopes for an economic recovery.

Source: Reuters: Money News | 4 May 2009 | 12:03 pm

MTNL customers get access to BlackBerry services in city

MTNL, and US-based Research In Motion, unveiled the Blackberry solution, enabling easy access to BlackBerry services and smartphones for MTNL customers in the city.
Source: Daily News & Analysis: Money News | 4 May 2009 | 12:02 pm

GHCL to retain management control with 18% holding

The shareholding in Gujarat Heavy Chemicals (GHCL) has undergone a change. Sanjay Dalmia, Chairman, GHCL, said that the company has explained the change in shareholding to Sebi. The shareholding change is due to selling by brokers on margin pressure. However, GHCL is confident of retaining management control even with 18% holding.
Source: Moneycontrol Top Headlines | 4 May 2009 | 11:57 am

Allahabad Bk sees FY10 NIM at 3 pct, beats forecast - Reuters India

RTT News

Allahabad Bk sees FY10 NIM at 3 pct, beats forecast
Reuters India
KOLKATA (Reuters) - State-run lender Allahabad Bank expects net interest margin of around 3 percent in 2009/10, a top official said on Monday.
Expect advances to grow at 18-20% in FY10: Allahabad Bank Moneycontrol.com
IOB Q4 Net Profit Rises RTT News
Myiris.com - Business Standard - RTT News - RTT News
all 28 news articles

Source: Google News India - Business | 4 May 2009 | 11:53 am

Stocks funds miss once-in-a-decade opportunity

MUMBAI (Reuters) - Nearly nine of every ten Indian diversified equity funds lagged the benchmark index's best monthly gains in 10 years as double digit cash levels diluted returns in April, data from global fund tracker Lipper show.

Source: Reuters: Money News | 4 May 2009 | 11:53 am

See slow uptrend in steel prices in next 36 mths: JJ Irani

JJ Irani, Director, Tata Sons doesn\'t see any scope for steel prices to fall further globally, nor does he see a further fall in local steel prices. He feels India is insulated against international prices and sees slow upward trend in steel prices over the next 36 months.
Source: Moneycontrol Top Headlines | 4 May 2009 | 11:48 am

Essar Oil restarts Jamnagar refinery; capacity up by 12% - Business Standard

Essar Oil restarts Jamnagar refinery; capacity up by 12%
Business Standard
PTI / New Delhi May 04, 2009, 17:14 IST Mumbai-based Essar Oil today said it has restarted its Vadinar refinery in Jamnagar district of Gujarat after more than two-week long shutdown that has raised its capacity to turn crude oil into fuel by 12 per ...
Essar Oil re-commences operations after scheduled shutdown Myiris.com
Essar oil restarts Vadinar refinery Reuters India
all 5 news articles

Source: Google News India - Business | 4 May 2009 | 11:48 am

Oil dips below $53, Chinese data still supports

LONDON (Reuters) - Oil dipped below $53 a barrel on Monday, unravelling early gains, as nervousness the strength implied by stock markets might be premature offset the impact of positive economic data on big fuel consumers China and India.

Source: Reuters: Money News | 4 May 2009 | 11:44 am

Aditya Birla Nuvo surges 6% - Business Standard

Business Standard

Aditya Birla Nuvo surges 6%
Business Standard
The stock finally settled with a gain of 6% at Rs 559. The stock clocked a volume of 4.7 lakh shares on the BSE today. Aditya Birla Nuvo opened up Rs 10, at Rs 538 following the company's plans to raise fresh equity worth Rs 1500 crore.
Stocks to Watch: M&M, J&K Bank, Aditya Birla Nuvo Economic Times
Aditya Birla Group looks to future, thinks green Livemint
Reuters India - Business Standard - Livemint
all 8 news articles

Source: Google News India - Business | 4 May 2009 | 11:36 am

Best show since October, Sensex tops 12,000 points

In what was the biggest gain in a single day since Oct 31, 2008, a key index of the Indian equities markets soared more than 700 points, raising hopes that the rally that has kept the bourses in green for eight-nine weeks can be sustained.
Source: IndiaeNews.com: Business News | 4 May 2009 | 11:30 am

Pepsi Bottling rejects PepsiCo acquisition offer

Somers: Pepsi Bottling Group has turned down soft drink maker PepsiCo’s acquisition proposal, calling the offer “grossly inadequate.”

The $6 billion proposal for Pepsi Bottling and PepsiAmericas would have let PepsiCo control about 80% of its total North American beverage volume.

Pepsi Bottling says its board’s decision was based on the unanimous recommendation of a special committee.

The company stated in a letter that it values its relationship with PepsiCo, but would not agree to a deal that doesn’t reflect its “true value.”

PepsiCo, which currently owns 33% of Pepsi Bottling, last month offered $29.50 per share for the remaining stake that it doesn’t already own. It initially spun off Pepsi Bottling in 1999.

Source: LatestNews-Home - Livemint.com | 4 May 2009 | 11:28 am

Asia faces up to challenges of global crisis

NUSA DUA, Indonesia (Reuters) - The global downturn could lead to unrest, more poverty and environmental challenges in Asia, regional leaders were warned on Monday, after they agreed on a $120 billion emergency fund to counter the crisis.

Source: Reuters: Money News | 4 May 2009 | 11:27 am

EXCLUSIVE - Flu fears prompt 20 countries to ban meat imports

GENEVA (Reuters) - Twenty countries worldwide have banned imports of pork and other meat in response to a flu virus that has infected both people and swine, according to documents from the World Health Organisation.

Source: Reuters: Money News | 4 May 2009 | 11:25 am

Markets cross 12k level, highest end since Oct ‘08

New Delhi: The Bombay Stock Exchange benchmark Sensex witnessed sharp rally to close with the highest single day gain of over 6%, since early October 2008 on Monday. Domestic indices were tracking firm cues from the markets other global markets.

Sensex crossed 12,100 mark and NSE Nifty surged above 3,600 level. Sentiments were also up after a survey showed that activity in Indian factories for April expanded for the first time in five months.

Markets opened positive today after a long weekend. Apart from buoying Asian bourses, phenomenal opening of the European markets also helped to keep traders buying morale firm.

All sectoral indices ended in green but strong buying was witnessed mainly in metal, IT, bank, capital goods, technology, FMCG, reality, auto and consumer durables stocks.

The 30-share BSE index closed higher by 731.50 points at 12,134.75 and the 50-share NSE Nifty ended up by 180.05 points at 3,654.

Leading the rally today was Sterlite Industries by 16.56% to Rs476.80, Hindalco by 13.74% to Rs61.25, Mahindra & Mahindra Ltd by 13.07% to Rs549.80, HDFC by 13.06% to Rs 1,957.60, ICICI Bank by 10.74% to Rs529.05, Tata Steel by 10.48% to Rs263.00, Wipro Ltd by 10.32% to Rs 364.60 and ITC Ltd by 8.75% to Rs205.65.

Bharti Airtel gained 1.15% today after the company entered into a joint venture with Alcatel-Lucent on Friday to manage Bharti pan-India broadband and landline services.

Maruti Suzuki India stocks also rose by 2.85%, after increase in sales by 15% in April was reported by India’s largest automaker.

Asian markets ended higher on hopes of economic recovery as US manufacturing activity in April contracted at a slower-than-expected pace. Expansion in China for the first time in nine months and pledge of regional leaders to start a $120 billion foreign-currency reserve pool, also contributed to the positive sentiments. Japan’s Nikkei ended up by 1.69% and Hong Kong’s Hang Seng closes higher by 5.5%.

Source: Home - Livemint.com | 4 May 2009 | 11:23 am

US sanctions will not halt nuclear work: Iran

Tehran: Iran will not suspend its disputed nuclear programme even if the United States imposes sanctions targeting companies that ship fuel to the Islamic Republic, a foreign ministry spokesman said on Monday.

Twenty-five US senators from both parties have proposed giving President Barack Obama new leverage in the dispute over Tehran’s nuclear ambitions. The bill gives Obama the authority to sanction companies supplying petrol to Iran.

The United States and its Western allies suspect Iran is aiming to develop nuclear bombs under the cover of a civilian programme and want it to halt sensitive uranium enrichment. Iran rejects the allegation and says it will not bow to pressure.

“We can cope with such measures (US sanctions). Sanctions and threats will not stop Iran from continuing its nuclear work,” foreign ministry spokesman Hassan Qashqavi told a weekly news conference.

Iran is the world’s fourth-largest oil exporter but lacks refining capacity to meet domestic demand and so relies heavily on international imports to guarantee fuel at the pumps.

Washington has threatened “crippling” sanctions against Iran if it did not end its sensitive nuclear activities.

During his 2008 presidential campaign Obama expressed interest in using Iran’s dependence on imports of refined petroleum products as leverage in the nuclear standoff. But US lawmakers say that under current law his powers to do so are limited.

Under the bill, a foreign oil company found to be in violation would be prevented from owning retail petrol stations in the United States or delivering crude oil to the US Strategic Petroleum Reserve.

Similar legislation has been introduced in the House of Representatives and the Senate.

Though Iran holds some of the world’s biggest crude oil reserves, it imports 40 percent of its gasoline to meet growing domestic demand. Expensive government subsidies help keep gasoline in Iran much cheaper than elsewhere.

Source: LatestNews-Home - Livemint.com | 4 May 2009 | 11:22 am

Indian drugmakers facing takeover threat: Govt panel

Warning of significant takeover threats for most Indian drugmakers by their large foreign peers, an inter-ministerial task force has suggested the Government act proactively to strengthen the pharma industry.
Source: India Business News | Business News - Times of India | 4 May 2009 | 11:19 am

Maruti sees profit recovery in June quarter

NEW DELHI (Reuters) - Maruti Suzuki India expects lower commodity prices to help boost profitability in April-June, its chief executive said on Monday, after India's top car maker saw a surprise earnings drop in the previous quarter.

Source: Reuters: Money News | 4 May 2009 | 11:12 am

Multiplexes face 3-bln-rupee hit on producer spat

MUMBAI (Reuters) - Multiplexes in India will likely lose up to 3 billion rupees in the June-quarter as an ongoing tussle with movie producers has led to almost no new releases at a time when the slowdown has cut footfalls, analysts said.

Source: Reuters: Money News | 4 May 2009 | 11:11 am

Swat peace agreement dissolved: Taliban spokesman

Islamabad: The controversial peace deal in Pakistan’s Swat valley came virtually unstuck on Monday with authorities threatening to resume military action and heavily armed Taliban militants out on streets defying curfew as their spokesman declared that the pact stands “dissolved”.

“Our peace pact agreement with the NWFP government practically stands dissolved”, Taliban spokesman Muslim Khan said and sought to put the onus on authorities saying “security forces are attacking us”.

Authorities imposed a curfew in Swat’s main town Mingora as a precautionary measure but eyewitnesses quoted by local TV channels reported that heavily armed Taliban cadres have again started patrolling the main town.

Tensions soared between the government, which is under heavy US pressure to fight the militants and not talk to them and Taliban radicals who rejected the Provincial governments move to constitute new Islamic courts saying they were not consulted.

Rising uncertainty over then deal, have raised prospects of Pakistani authorities expanding operations to flush out Taliban from Swat too. Pakistan military had killed over 200 militants in six days of fighting in adjoining Buner and Dir districts.

Militants ambushed an army convoy killing a soldier in a part of Bari Kot region of the Swat valley. The radicals used rockets and assault rifles in the attack, which was repulsed by security forces.

“(Security) forces are attacking us and our fighters are also retaliating,” Khan told The News daily in the wake of the launch of operations against the Taliban in Dir and Buner districts, which like Swat are part of the Malakand division of the NWFP.

Muslim Khan said the Taliban fighters “would now attack security forces and government figures everywhere.” Claiming that Pakistan’s rulers were obeying “every directive of US President Barack Obama,” he said.

“We will also act in other cities of Pakistan but will not target the general public.”

The spokesman said the Taliban would not harm members of the Awami National Party, which rules the NWFP, it they support the militants. “But if they sided with the government, they too will become our target. However, our main target will be security forces and the rulers of Pakistan,” he warned.

He ruled out the involvement of India and Afghanistan in the unrest in Swat and said “no outside elements” were involved in the issue.

When ANP spokesman Zahid Khan was asked about the dissolution of the peace agreement in Swat, he said the party had signed the accord with Tehrik-e-Nifaz-e-Shariah Muhammadi chief Sufi Muhammad and not with the Taliban. He said the Taliban had violated “the accord time and again”.

Source: LatestNews-Home - Livemint.com | 4 May 2009 | 11:09 am

Delhi Jal Board to introduce one-litre water bottles

The Delhi Jal Board (DJB) will soon introduce one-litre water bottles at a cheaper rate, a top official said here Monday.
Source: IndiaeNews.com: Business News | 4 May 2009 | 11:00 am

Suzlon Reviews Options on Offer to Change Debt Terms - Bloomberg

Suzlon Reviews Options on Offer to Change Debt Terms
Bloomberg - Archana Chaudhary
By Archana Chaudhary May 4 (Bloomberg) -- Suzlon Energy Ltd., India's biggest maker of wind-turbine generators, said it is evaluating options on an offer to change the terms of $500 million of convertible bonds after some debtors rejected the plan.
Suzlon raises stake in REpower to 76% NDTV.com
Suzlon ups stake in REpower to 76 pct Reuters
Wall Street Journal - Myiris.com
all 26 news articles

Source: Google News India - Business | 4 May 2009 | 10:54 am

Gold rises by Rs 90 on fresh buying, firm global cues

Snapping a two-day losing streak, gold prices rose by Rs 90 to Rs 14,570 per 10 gram in the bullion market here on emergence of buying by stockists and jewellers to meet the current marriage season demand.
Source: India Business News | Business News - Times of India | 4 May 2009 | 10:52 am

Sensex closes at 7-month high; crosses 12k

Markets ended sharply higher on Monday led by gains in frontline stocks like metals, IT and banks. Sensex closed at 12134.75. Nifty ended at 3654.
Source: India Business News | Business News - Times of India | 4 May 2009 | 10:52 am

McDonald's plans 40 more restaurants in India during 09-10

McDonald's already has 158 restaurants throughout the country, wants to expand and grow in the Indian market.
Source: Daily News & Analysis: Money News | 4 May 2009 | 10:46 am

Coca Cola targets water neutrality by year-end

New Delhi: Global beverages player Coca Cola on Monday said it eyes achieving water neutrality in ground water usage in the country by the end of this year.

“We are on target to achieve total water neutrality in India regarding usage of ground water by end of the calender year.

“In this regard, India has taken the lead in giving a time line to be water neutral among our company’s global markets,” Hindustan Coca Cola Beverages Pvt Ltd, director (manufacturing) Sanjay Sharma said on the sidelines of a conference organized by the Confederation of Indian Industry.

Water neutrality is a term referred to describe the ratio of ground water usage by any user vis-a-vis the quantity returned to earth by conservation programmes.

Sharma said ground water currently comprises around 60-65% of the total water used by the company in India.

“Among the steps taken by the company, both jointly in association with government bodies and NGOs and also on its own, include setting up of rain water harvesting projects, de-silting water bodies, building dams and embankments and creating community initiatives,” he said.

The company is working with state Jal Boards (water departments) to identify parched and dry areas and creating catchments in those areas, the company official said.

Source: LatestNews-Home - Livemint.com | 4 May 2009 | 10:46 am

MOVES-Morgan Stanley, ING Investment Management - Reuters

MOVES-Morgan Stanley, ING Investment Management
Reuters
May 4 (Reuters) - The following financial services industry appointments were announced on Monday. To inform us of other job changes, e-mail moves@thomsonreuters.
ING Investment Management Middle East well placed to meet growing ... AME Info
all 11 news articles

Source: Google News India - Business | 4 May 2009 | 10:45 am

Finance ministry to meet software industry on double taxation issue

New Delhi: The Finance ministry will shortly meet representatives from the packaged software industry to settle the issue of double taxation on the sector.

“We will meet representatives from the industry soon. They will put forth their suggestions, then we will work on the issue,” said a finance ministry official.

The packaged software industry has been reeling under the pressure of rising cost partly led by being taxed twice — service tax as a service and then excise duty as a good.

In fact, the industry has been working with the government to arrive at a solution.

The government like the industry is of the view that there should be only one union tax levied on a good or service, the official said.

However, in case of software when downloaded, attracts service tax, with downloading treated as a service. Later, it faces a duty when a licence for the software is taken, as a good.

Meanwhile, the industry is happy with the fact that the government is working with them to find a solution on the issue.

“We are working with the government to arrive at a solution. The good thing is that the government and the industry both agree that there should be only one union tax which should be levied,” said Vinnie Mehta of the Manufacturers Association of Information Technology (MAIT).

Source: LatestNews-Home - Livemint.com | 4 May 2009 | 10:40 am

Citigroup Global hikes stake in Info Edge to 5.21%

Mumbai: Foreign fund house Citigroup Global Mkt (Mauritius) has hiked its stake in Info Edge India, owner of job portal Naukri.com, to over 5% through open market transactions.

In a disclosure to the Bombay Stock Exchange, Info Edge India said Citigroup Global has acquired 1.65% stake, amounting to over 4.49 lakh shares of the firm, on 28 April.

Post acquisition, Citigroup Global now holds a 5.21% stake in the company.

Calculated on the basis of Info Edge India’s closing price on 29 April, the transaction value stands at nearly Rs24.15 crore.

Meanwhile, in a separate filing to the stock exchange, Info Edge India said non of its promoters and their group have pledged or hypothecated their shares till the end of March.

Shares of Info Edge India were trading at Rs522, down 2.83% in the late afternoon trade on the BSE.

Source: LatestNews-Home - Livemint.com | 4 May 2009 | 10:40 am

Finance ministry to meet software industry on double taxation issue

New Delhi: The Finance ministry will shortly meet representatives from the packaged software industry to settle the issue of double taxation on the sector.

“We will meet representatives from the industry soon. They will put forth their suggestions, then we will work on the issue,” said a finance ministry official.

The packaged software industry has been reeling under the pressure of rising cost partly led by being taxed twice — service tax as a service and then excise duty as a good.

In fact, the industry has been working with the government to arrive at a solution.

The government like the industry is of the view that there should be only one union tax levied on a good or service, the official said.

However, in case of software when downloaded, attracts service tax, with downloading treated as a service. Later, it faces a duty when a licence for the software is taken, as a good.

Meanwhile, the industry is happy with the fact that the government is working with them to find a solution on the issue.

Source: Tech News - Livemint.com | 4 May 2009 | 10:40 am

Indian rupee off 2-wk high as dlr recovers vs majors - Reuters India

Indian rupee off 2-wk high as dlr recovers vs majors
Reuters India - Swati Bhat, Prem Udayabhanu
MUMBAI, May 4 (Reuters) - The Indian rupee came off two week highs in late afternoon trade on Monday as the dollar regained some of its strength versus major currencies overseas, while demand for the US unit from importers also weighed.
Rupee trading at its highest levels Economic Times
Dollar demand weakens rupee in late trade Commodity Online
all 13 news articles

Source: Google News India - Business | 4 May 2009 | 10:33 am

Rupee near 2-week highs boosted by stock gains

Mumbai: The Indian rupee stayed close to two-week highs in afternoon trade on Monday tracking firmer regional currencies and a 6% rise in domestic shares, but dollar demand from importers capped a further rise.

At 1:40pm, the partially convertible rupee was at Rs49.62/63 per dollar, much stronger than Wednesday’s close of Rs50.04/05.

At an intraday high of Rs49.55 hit in early deals, its strongest since 16 April, the rupee was up 1% from its previous close. The currency market was shut on Thursday and Friday for holidays.

Indian shares rose 6% as trading resumed after a four-day break, with investor appetite across Asia boosted by optimism the global economy has turned a corner.

The dollar index, a gauge of the dollar’s performance against six major currencies, was down 0.2% as investor confidence about the global economy encouraged buying of commodities and riskier currencies.

In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were quoting at Rs49.7425 and Rs49.7450 respectively, with the total traded volume on both exchanges at about $450 million.

Source: Home - Livemint.com | 4 May 2009 | 10:31 am

Sensex closes above 12,000-mark

Sensex surpasses 12000 first time in seven months - Economic Times

Indian Express

Sensex surpasses 12000 first time in seven months
Economic Times
MUMBAI: Indian markets ended sharply higher Monday led by gains in frontline stocks from metals, IT, banks and capital goods space.
Bulls go on a rampage, lift Sensex up by 732 pts Sify
Sensex regains 12000-mark after seven months Business Standard
Moneycontrol.com - NDTV.com - India Infoline.com - Sify
all 165 news articles हिन्दी में

Source: Google News India - Business | 4 May 2009 | 10:28 am

Govt to reallocate RIL gas if existing buyers back out

The government will allocate natural gas to companies like Essar Steel if any of the consumers it has currently identified is unable to use the fuel.
Source: Daily News & Analysis: Money News | 4 May 2009 | 10:28 am

Fiat steps up efforts to acquire stake in Opel: Reports

Wall Street Journal has also stated that Fiat SpA chief executive Sergio Marchionne has stepped up his plan to acquire a majority stake in Opel.
Source: Daily News & Analysis: Money News | 4 May 2009 | 10:28 am

Obama seeks tax changes for US firms overseas

Washington: President Barack Obama on Monday will propose changing provisions in the tax code that he says encourage US companies to move jobs overseas, as part of a broader package aimed at saving $210 billion over 10 years.

US officials said that in an announcement planned for 1505 GMT, Obama will seek to follow through on a campaign promise to change the tax treatment of American firms with overseas operations.

That portion of his plan -- opposed by such firms as Pfizer Inc and Oracle Corp -- would raise more than $100 billion in revenue over the next decade.

In an echo of a line he used often on the campaign trail last year, Obama vowed in a February address to the US Congress to make the tax code more fair by “finally ending the tax breaks for corporations that ship our jobs overseas.”

Currently, US firms are allowed to defer paying taxes on profits earned overseas if they plow those profits back into their foreign subsidiaries.

Critics say those rules encourage businesses to bolster their foreign operations instead of creating jobs at home.

But an array of firms signed onto a letter to congressional leaders in March opposing changes to the so-called deferral provision, saying they would make US businesses less competitive.

The letter was signed by 200 companies and trade associations, including Pfizer, Oracle, Microsoft Corp Johnson & Johnson and General Electric Co as well as the Business Roundtable and the US Chamber of Commerce.

The letter said the firms would not be on a level playing field with international rivals, many of which are not required to pay taxes at home on overseas entities.

Senior US officials who described Obama’s plans said they were balanced and would not put excessive burdens on firms.

No More Deducting Expenses

A central provision would prohibit companies from deducting expenses supporting their overseas operations until they pay taxes on offshore profits.

The officials said the plan would also end a practice by which some firms take big deductions against their taxes by inflating the amount of foreign taxes they have paid.

The proposal also includes extension of a research and experimentation tax credit the administration says businesses have been pushing for, which is expected to give a tax cut of $74.5 billion over 10 years to companies investing at home.

Obama’s proposals on deferral mirror legislation drafted by House Democrats, whom the Obama administration consulted in crafting its plan.

In addition to the changes to the deferral provisions, separate proposals in Obama’s plan would raise $95 billion by cracking down on overseas tax havens.

Such tax havens became a major topic at the April meeting in London of leaders of the Group of 20 major economies.

The Obama plan would close loopholes that allow firms and individuals to hide income. He also plans to bolster enforcement of overseas tax evasion and wants to see stiffer penalties for those who fail to meet reporting requirements.

While serving in the US Senate, Obama backed legislation drafted by Sen. Carl Levin, head of the Senate Permanent Subcommittee on Investigations, to crack down on tax havens.

That legislation did not pass, but Levin and other lawmakers are working on other ways to address these issues.

In one of the proposals to crack down on tax evasion, the administration would require financial institutions to share information to the Internal Revenue Service about its US customers. Foreign institutions must sign up with the IRS to become “a qualified intermediary” or else face a presumption that they are helping individuals evade taxes.

“The financial institution has to come forward with evidence to show there is not tax evasion going on,” one official said.

Swiss banking giant UBS AG acknowledged in February that it helped US clients conceal assets from their government. It agreed to pay a $780 million fine and has since identified about 320 of its American clients.

The US government is now suing UBS in a civil case to reveal the identities of 52,000 Americans suspected of using accounts at the bank to hide about $14.8 billion of assets and evade US taxes.

Source: LatestNews-Home - Livemint.com | 4 May 2009 | 10:28 am

HDFC Q4 net dips 4.5% to Rs 733 cr, declares dividend

The country's largest housing finance company, Housing Development Finance Corp (HDFC), said that it has reported a 4.52 per cent decline in net profit.
Source: Daily News & Analysis: Money News | 4 May 2009 | 10:24 am

Boston Globe’s management threatens shutdown

Boston: The management of The Boston Globe threatened late on Sunday to begin the process of shutting down the newspaper in a dispute with its unions over $20 million in cuts.

The Globe’s owner, The New York Times Co., said it had given the Globe’s biggest union a copy of a notice it was prepared to file Monday if it was unable to agree on the concessions by midnight on Sunday, a deadline that passed without word from the union or the Times Co. The 60-day shutdown notice is required under federal law.

The newspaper’s largest union, the Boston Newspaper Guild, called the move a “bullying” tactic by the Times Co.

The Times Co. last month threatened to close the Globe unless its unions agreed to $20 million in cuts, including half from the Newspaper Guild.

In a statement released two hours before the midnight deadline on Sunday, the Guild said its proposal calls for “tremendous sacrifices, across virtually all categories of compensation and benefits.”

The Guild did not release specifics on what kinds of wage or benefit cuts it had proposed to the Times Co. The union said further details would be made public once all Guild members have had a chance to review them.

It was unclear whether the Globe’s other unions had made proposals for the remaining $10 million in cuts.

The Times co. would not comment on the Guild’s proposal.

Like many other newspapers, the Globe has been struggling amid declining advertising revenues and dropping circulation as readers migrate to the Internet. The Globe had $50 million in operating losses in 2008 and is projected to lose $85 million this year.

The Times Co., which bought the Globe in 1993, has said that of all its newspaper properties, the Globe has been the most dramatically affected by the recession and the advertising downturn.

New York Times Co. Chairman Arthur Sulzberger Jr. said at the company’s annual shareholders meeting last month that more needed to be done to align the Globe’s costs and revenues.

Source: LatestNews-Home - Livemint.com | 4 May 2009 | 10:20 am

Balance sheet growth not Chanda Kochhar\'s sole focus as CEO

KV Kamath will step down as the Managing Director and CEO of ICICI Bank and will hand over the charge to Chanda Kochhar today. Kamath will take over as the NonExecutive Chairman of the board from N Vaghul.
Source: Moneycontrol Top Headlines | 4 May 2009 | 10:15 am

Obama to outline international tax proposals

WASHINGTON (Reuters) - President Barack Obama on Monday will propose raising billions in new tax revenue by changing tax policies for U.S. firms with overseas operations, according to administration officials familiar with his plan.

Source: Reuters: Money News | 4 May 2009 | 10:11 am

Prachanda resigns over army, president rebuff

Kathmandu: Nepal’s Prime Minister Prachanda announced his resignation on Monday after an attempt by his Maoist government to sack the head of the army was blocked by the president.

“I have resigned from the post of prime minister from today for the protection of democracy and peace,” Prachanda said in a televised address to the nation.

Nepal’s Maoist government fired General Rookmangud Katawal for refusing to integrate former Maoist rebel soldiers into the regular army under the terms of a 2006 peace deal that ended a decade of civil war.

But President Ram Baran Yadav, a member of the main opposition party, has told the head of the army -- traditionally a bastion of Nepal’s elite and the former monarchy -- to stay put.

“The move by the president is an attack on this infant democracy and the peace process,” Prachanda said, accusing the president of having taken an “unconstitutional and undemocratic decision.”

Source: Home - Livemint.com | 4 May 2009 | 9:59 am

HDFC Q4 net dips 4.5% to Rs 733 cr, declares dividend - Economic Times

HDFC Q4 net dips 4.5% to Rs 733 cr, declares dividend
Economic Times
4 May 2009, 1514 hrs IST, PTI MUMBAI: The country's largest housing finance company, Housing Development Finance Corp (HDFC), pn Monday said it has reported a 4.52 per cent decline in net profit at Rs 733.37 crore for the fourth quarter ended March 31, ...
HDFC Q4 net at Rs 733.37 cr Sify
Housing Development Finance Profit Declines 4.6% Bloomberg
Reuters - Myiris.com - TopNews - Thaindian.com
all 27 news articles

Source: Google News India - Business | 4 May 2009 | 9:56 am

Medvedev brings new style to the Kremlin

Moscow: After a year in office, President Dmitry Medvedev is showing a different Kremlin style to that of predecessor Vladimir Putin, though analysts can only guess if this might herald major change or not.

Medvedev was installed in the Kremlin on May 7 last year after being picked by Putin as his preferred successor, a choice endorsed in a subsequent election. Putin became prime minister and the two men said they would rule Russia together as a “tandem”.

Since then, the state of the two men’s relationship has been the subject of intense speculation.

“They are good partners, who share views on Russia’s future but there is a big difference in their background, manner and views on how to manage things,” one official said, reacting to repeated reports of an imminent split between the two.

The visual difference between the 43-year-old ex-lawyer and the steely-eyed 56-year-old former KGB spy is striking.

In his 2000-2008 presidency, marked by Russia’s resurgence on the world stage on the back of an economic boom, Putin turned the Kremlin into the centre of Russian life.

No major question could be decided without the president. In his public appearances, Putin loved demonstrating a grasp of the details of citizens’ lives and showed a personal touch through gestures such as sending a Christmas tree to a little girl or ordering a road to be built in a remote village.

“The president is responsible for everything in Russia,” Putin said in one of his early speeches, chiming with traditional views of how the Kremlin ruler should behave.

A man of the system

Medvedev started out from a different point. “A system where everything is decided in the Kremlin is not ideal,” he once told governors, in a clear contrast to Putin’s imperial style.

Medvedev, who now has to handle Russia’s worst economic crisis in a decade, shows far less inclination to impose his own will on key ministers and is less driven by emotion than Putin.

Putin’s colourful street language, which won him popularity among ordinary Russians, has given way to Medvedev’s lawyerly style, full of references to legal norms.

Things unimaginable in Putin’s Russia have started happening: Medvedev’s ministers venture to clash over issues on which national leaders have already expressed an opinion. Surprisingly, no one has been fired yet.

“Putin is in a way a true Russian tsar, who believes that without his intervention the world will not go round,” an analyst close to the Kremlin said. “Medvedev is more of a manager, who bets on a system rather than a personal will.”

As opposed to Putin, who has often been driven by emotion when fighting Chechen separatists or politically ambitious oligarchs, Medvedev looks far more pragmatic in his decisions.

While Putin swung between embracing U.S. President George W. Bush and denouncing Washington for seeking “world domination”, Medvedev looked reserved when meeting the new US leader Barack Obama last month, with whom he plans to “press a reset button” on rocky ties.

The first year of Medvedev’s rule has also seen a sharp decline in nationalist rhetoric coming from the Kremlin.

The hardline pro-Kremlin youth movements, which scared Russian liberals with their displays of aggressive patriotism under Putin, have all but disappeared.

Medvedev has urged a bigger role for non-governmental organisations, entities which his predecessor accused of being in the pocket of Western governments.

“Medvedev is a post-Soviet man, who does not have Putin’s personal memories of the humiliation suffered by the nation after the collapse of the Communist empire,” the analyst said.

Searching for new allies

Putin felt at home speaking to the military top brass and loved flying on jet fighters and sailing aboard nuclear submarines. Medvedev feels more at home in front of his laptop.

“Freedom is better than non-freedom,” he said in a pre-election speech, raising a topic which had become a taboo during Putin’s years.

Does the difference in style presage Russia’s departure from Putin’s course, blamed by opponents for crushing democracy, or is it rather part of Medvedev’s game to change the balance of forces in the ruling tandem? Views differ.

“Medvedev desperately needs his own power base and he now has to win supporters in every corner,” said Alexei Mukhin of the Centre for Political Information.

Others think the style has been worked out with Putin.

“The very choice of Medvedev as president showed that Putin was ready for a certain correction of the political style,” Boris Makarenko of Medvedev’s think-tank INSOR said. “What is happening is a mild liberalisation.”

Source: LatestNews-Home - Livemint.com | 4 May 2009 | 9:53 am

Govt to reallocate RIL gas if existing buyers back out

The government will allocate natural gas from Reliance Industries' Bay of Bengal KG-D6 fields to companies like Essar Steel if any of the consumers it has currently identified is unable to use the fuel.
Source: India Business News | Business News - Times of India | 4 May 2009 | 9:50 am

Oil rises above $53, buoyed by Chinese data

London: Oil climbed above $53 a barrel on Monday, extending the previous session’s four percent gains, after data out of big fuel consumers China and India stoked expectation economic recovery was gaining traction.

US crude futures for June delivery rose 21 cents to $53.43 a barrel by 2:45pm. London Brent crude rose 38 cents to $53.23.

Strong gains on Friday had been spurred by improved US consumer confidence, as well as a Reuters survey that showed Opec oil supply had fallen for an eighth consecutive month.

The market held firm on Monday after surveys showed the manufacturing sectors in China, the world’s second biggest fuel consumer after the United States, and India had grown for the first time in months in April.

Renewed economic optimism helped to drive Asian stocks to seven-month highs on Monday.

The FTSEurofirst 300 index of top leading shares in April posted its biggest ever monthly rise and was again higher on Monday, although a public holiday in Britain limited trade.

“We started to look at the green shoots in the United States and now we’re starting to look at what I like to call the bamboo shoots,” said Olivier Jakob of Petromatrix.

Oil prices have hovered around $50 a barrel for much of this year, nearly $100 below an all-time high hit last July.

But the market has recovered from a trough of $32.40 touched in December, the lowest level since early 2004. Output cuts from the Organization of the Petroleum Exporting Countries have helped to push the market higher.

An Opec survey on Friday showed Opec had delivered around 84% of promised curbs of 4.2 million barrels per day since September, around its highest ever level of output discipline.

Opec efforts to support the price have been in part offset by the impact of high inventories on land and large amounts of floating storage as traders have made use of a bearish market structure to stockpile oil.

The market could also be undermined this week depending on the results of US government bank stress tests, which will be released to the banks on Tuesday and to the public on Thursday.

“A negative report could potentially cause a substantial pullback in the equities and energy markets,” said Ben Westmore, a commodities analyst at National Australia Bank.

Source: Home - Livemint.com | 4 May 2009 | 9:48 am

Buchanan wants more than 4 foreigners in playing XI

Port Elizabeth: Never short of ideas, Kolkata Knight Riders’ coach John Buchanan has now floated the idea of having more than four foreign players in the playing XI of the Indian Premier League sides.

Buchanan said he had raised the issue with the IPL authorities and was hopeful that if not this season, such a thing would be allowed in the third edition of the Twenty20 league.

“It is a question that we have posed to IPL a number of times about the involvement of more players on the field. I have personally mentioned that a number of times,” Buchanan said.

“Hopefully IPL will look at that more seriously going forward into next season and beyond,” the Australian told reporters after the Knight Riders went down to Kings XI Punjab on Sunday.

Buchanan was asked about Mashrafe Mortaza’s surprising omission from the playing XI despite the fact that KKR shelled out a whopping $600000 to get the Bangladeshi pacer.

“At the moment, we have adopted a batting strategy. So that’s where our international effort is. So does that mean that guys that are international bowlers, whether it be (Charl) Langeveldt, Mortaza, (Ajantha) Mendis whoever it might be, their opportunities are limited at this time,” Buchanan said in no uncertain terms.

Buchanan was also asked whether there would be a change in captaincy after the side’s string of poor shows under Brendon McCullum.

“I don’t think we need to answer that one. The answer is no,” Buchanan said.

Incidentally, McCullum has decided to quit captaincy if the team fails to reach IPL semifinals.

Source: LatestNews-Home - Livemint.com | 4 May 2009 | 9:35 am

Two held for Ambani chopper sabotage

Two employees of aircraft maintenance firm Air Works India Engineering Pvt Ltd were Monday arrested for their alleged role in the sabotage of industrialist Anil Ambani's helicopter, police said.
Source: IndiaeNews.com: Business News | 4 May 2009 | 9:31 am

BHEL's new fabrication policy upsets small vendors

A majority of over 500 steel fabrication units in Tiruchirapalli, one of the major engineering hubs in the country, are facing a new challenge as Bharat Heavy Electricals Ltd (BHEL), their main buyer, is shifting focus to bigger companies outside Tamil Nadu for fabrication works.
Source: IndiaeNews.com: Business News | 4 May 2009 | 9:31 am

HDFC Q4 net dips 4.5% to Rs733 cr, declares dividend

Mumbai: The country’s largest housing finance company, Housing Development Finance Corp (HDFC), Monday said it has reported a 4.52% decline in net profit at Rs733.37 crore for the fourth quarter ended 31 March 2009.

The housing lender had a net profit of Rs768.12 crore in the March quarter of FY’08, HDFC Ltd said in a filing to the Bombay Stock Exchange.

The total income rose 36% to Rs3,152.44 crore during the March quarter, from Rs2,317.67 crore in the corresponding period a year ago.

The board has declared a dividend of Rs30 a share for the financial year ended March 2009 on shares of face value of Rs10 each.

For the financial year ended 31 March HDFC Ltd posted a consolidated profit after tax (attributable to the Corporation) of Rs2,310.50 crore, a 14.84% dip over Rs2,713 crore in FY’08.

The consolidated total income rose 34.62% to Rs11,684.23 crore for FY’09.

Shares of HDFC were trading at Rs1,933.05, up 11.64% in late afternoon trade on the BSE.

Source: Home - Livemint.com | 4 May 2009 | 9:31 am

Maruti Suzuki expects sales to increase up to 5 pc in FY'10 - Business Standard

AutoTantra.in

Maruti Suzuki expects sales to increase up to 5 pc in FY'10
Business Standard
PTI / New Delhi May 4, 2009, 14:43 IST The country's largest car maker, Maruti Suzuki India (MSI), today said it expects its sales to grow up to five per cent in the current financial year on the back of increased demand from rural areas and overseas ...
Maruti Suzuki A-star boasts of achieving a top mileage of 26.9 kms ... AutoTantra.in
In Saturday's A-star mileage rally in Delhi , the top 25 ... Infibeam
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Source: Google News India - Business | 4 May 2009 | 9:19 am

ONGC, Cairn India cheer but OMCs stay in red - Commodity Online

Calcutta Telegraph

ONGC, Cairn India cheer but OMCs stay in red
Commodity Online
MUMBAI: Oil exploration stocks started rejoicing the rise in crude oil prices, which today, touched a six-week high in the international markets on the positive indications of recovery.
Indian oil company invests US$1.45 billion in Iraq ArabianOilandGas.com
ONGC goes slow in Nigeria Calcutta Telegraph
Your Oil and Gas News (press release)
all 19 news articles

Source: Google News India - Business | 4 May 2009 | 9:12 am

AIG close to selling Japan headquarters

Tokyo: Embattled insurer American International Group Inc. is close to selling its Japanese headquarters for around $1 billion to help pay off its debt to Washington, the Wall Street Journal said Monday.

The 15-story building will likely be purchased by a Japanese insurance company, though the timing is unclear because of this week’s “Golden Week” holidays, the paper said citing unnamed sources. Financial markets are closed through Wednesday.

The deal would be among the biggest divestitures New York-based AIG has made to reimburse the US government for its massive infusion of aid, according to the Wall Street Journal.

Phone calls to AIG’s Japan headquarters went unanswered Monday.

Although the building is 35 years old, it sits on prime real estate in central Tokyo, next to the Imperial Palace. AIG’s roots in Japan extend back to 1946, and the company is now the country’s biggest foreign casualty insurer.

The US government provided AIG with an $85 billion loan in September. As market conditions worsened and losses piled up at the insurer, the government revised and expanded its loan package to AIG several times. The package of loans now totals nearly $180 billion after being expanded in March when New York-based AIG reported a fourth-quarter loss of $61.7 billion, the largest ever quarterly corporate loss in US history.

As part of the loan package, the government has also taken a roughly 80% stake in the insurance giant.

AIG may also be nearing a deal to unload its airplane leasing business, International Lease Finance Corp., the Wall Street Journal said.

Source: World Business - Livemint.com | 4 May 2009 | 9:08 am

HDFC net profit down 6.3 percent

Major housing loan provider HDFC Monday said its net profit dipped 6.3 percent to Rs.2,282.54 crore for the year ended March 31 from Rs.2,436.25 crore the previous fiscal.
Source: IndiaeNews.com: Business News | 4 May 2009 | 9:02 am

Markets on a roll, Sensex breaches 12,000-mark

A key index of the Indian equities markets crossed the 12,000-mark about 90 minutes before closing bell Monday with investors lapping up stocks with renewed enthusiasm.
Source: IndiaeNews.com: Business News | 4 May 2009 | 9:01 am

Swine flu spam mails fox users

The outbreak of swine flu has provided hackers a new opportunity to attack your computers.
Source: IndiaeNews.com: Business News | 4 May 2009 | 9:00 am

Fiat CEO in Berlin to pitch plan for Europe giant

MILAN/BERLIN (Reuters) - Fiat SpA's chief executive visits Berlin on Monday to try to convince Germany's political leaders to sign up to his vision for a new European car giant by letting him take over General Motors Corp's Opel unit.

Source: Reuters: Money News | 4 May 2009 | 8:46 am

RCom told to clarify on GSM service launch in JK

The Department of Telecom has sought clarification from Reliance Communications as to why the company has started its GSM based mobile services in Jammu and Kashmir without taking clearances from security agencies.
Source: Moneycontrol Top Headlines | 4 May 2009 | 8:35 am

OVL to invest $1.45 bn in Iraq oil block

New Delhi: ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), is likely to invest $1.45 billion in an oil block in Iraq that was awarded to it by the erstwhile Saddam Hussein regime.

“The service exploration and production contract for Block-8 have been concluded and the agreement is likely to be signed in the next couple of months,” an official said.

Block-8, located in the western desert in southern Iraq bordering Saudi Arabia, was awarded to OVL in November 2000 by the then Saddam Hussein government. However, the government formed after the US invasion of the oil-rich country, sought re-negotiation of the contract which has now been concluded.

The block already has a discovery and is estimated to hold 645 million barrels of inplace reserves, of which 54 million are recoverable, he said adding OVL has committed investing $86 million in two phases of exploration and $1.45 billion in development of the reserves thereafter.

The contract would be a service contract wherein OVL will be paid about 18% rate of return on its investment.

The official said OVL was also considering bidding for the six producing oilfields Iraq has put on offer in its first licensing auction. “It is talking to two international oil firms for a joint bidding.”

OVL wants 51% and will give out 24% to the partner. The remaining 25% would be with Iraqi national oil company.

The official said Iraqi law allows foreign firms to hold a maximum of 75% stake in the oilfields put on offer.

The six producing oil fields on offer are: Kirkuk and Bai Hassan in the north, North and South Rumaila, West Qurna-I, Zubair and the three Meissan fields in the south. Besides, two gas fields -- Akas in the western Anbar desert and the Mansooriya field in northeast of Baghdad, are also on offer.

“OVL is focused on Zubair, West Qurna and Rumaila,” he said adding the company was looking at taking two other international firms for bidding for the technical services contract.

Rumaila, the largest field on offer commanding the biggest signing amount of $500 million, currently produces 1.02 million barrels per day (bpd) of oil and plateau targeted is 1.75 million bpd. West Qurna envisages more than doubling of output to 600,000 bpd from current 279,000 bpd while Zubair forecasts production rising to 400,000 bpd from current 227,000 bpd. Signature bonus for the two are $400 million and $300 million, respectively.

Iraq had initially set signature bonuses for each oilfield on offer at $10 million plus $50 per barrel for existing output above 100,000 bpd. But with oil prices crashing, Iraq is seeking larger signature bonuses.

Bidding and contract awards are scheduled for 29 June and 30 June.

Rumaila oil field is a super giant field located in the south of Iraq and has a reserve base of 16.2 billion barrel (remaining reserve). The Zubair oil field located in the southern Iraq has a reserve base of 3.87 billion barrel (remaining reserves) while West Qurna in southern Iraq has a reserve base of 16.65 billion barrel (remaining reserve).

The official said OVL, which was among the 35 international companies pre-qualified by Iraq to participate in the bidding rounds, was also looking at 11 fields located in the southern, central and northern areas of Iraq which are in the process of being offered in the second bidding.

Exploration and development contract for Exploration Block-8, Western Desert, was signed by OVL with the Oil Exploration Company of Iraq, on 28 November, 2000, at New Delhi. The block has a reserve expectation of about 645 million barrels.

As per the 2,000 contract, OVL was to reprocess and interpret existing 2-D seismic data. It was also to acquire, process and interpret 1,000 km of 2D and carry out 300 sq km of 3D seismic survey besides drilling two wells.

Source: World Business - Livemint.com | 4 May 2009 | 8:31 am

HCL in talks with banks to supply handheld terminals

HCL Infosystems Ltd is in talks with different private and public sector banks for supplying handheld terminals that would enable them to launch the Centres financial inclusion programme in the rural market, according to its Executive VicePresident, Mr George Paul.
Source: Moneycontrol Top Headlines | 4 May 2009 | 8:26 am

GM to launch new mini car in India by Dec

General Motors India (GMI) will launch the new minicar in the Indian market by December, and increase its dealerships to 250 from the current 195, the companys VicePresident, Mr P. Balendran, has said.
Source: Moneycontrol Top Headlines | 4 May 2009 | 8:19 am

Amara Raja Electronics invests Rs 35 cr in expansion

Amara Raja Electronics the instant power source division of the Rs 1,080crore Amara Raja Batteries Ltd, is investing Rs 35 crore to expand its facility.
Source: Moneycontrol Top Headlines | 4 May 2009 | 8:18 am

Sensex crosses 12,000-mark

The Sensex on Monday crossed the 12,000 mark for the first time since October 2008 on emergence of buying in blue-chip stocks led by metals, realty and banking segments.
Source: India Business News | Business News - Times of India | 4 May 2009 | 7:18 am

Asia stocks hit 7-month high on recovery hopes

Hong Kong: Asian stocks punched to a seven-month peak on Monday, fuelled by confidence the global economy is recovering faster than expected and on a further jump in Taiwanese shares on hopes for an influx of Chinese investment.

Taiwan’s benchmark TAIEX index soared 5.6%, taking gains to 12.8% in just two days as investors see a wide-reaching deal coming later in the year as spurring heavy Chinese investment in the island, especially in financial firms.

The surge in Taiwan added to the broad gains across Asia as evidence has mounted that global trade is starting to pick up, highlighted last week by brokerage CLSA’s gauge of Chinese manufacturing activity rebounding to a nine-month high in April.

Investors have largely brushed aside worries that the global H1N1 flu outbreak could turn into a serious pandemic.

“The flu fears seem to be fading as the danger of it spreading seems to be lower now. On the other hand, we have China’s PMI data, which seems to signal continued recovery for the economy, yet another reason to stay bullish,” said Castor Pang, strategist with Sun Hung Kai Financial in Hong Kong.

The Australian dollar, seen as the currency market’s bellwether for risk-taking, struck a seven-month peak while safe-haven government bonds retreated.

Data last week in Asia showed South Korean exports and industrial production both improving more quickly than expected, suggesting that regional exporters are needing to step up activity after having aggressively slashed inventories of goods.

The US Institute for Supply Management’s factory survey on Friday also showed a jump in the new orders index, an important leading indicator adding to the evidence of a recovery taking shape.

“The global manufacturing cycle appears to be gaining momentum,” said economists at Societe Generale in a note to clients.

Investors are also feeling more confident that the US financial system has already suffered the worst of its crisis and is getting healthier, just before the government releases the results of stress tests later this week.

“Bank earnings are coming out fine and investors increasingly believe the result of the US banking sector’s stress test will be tolerable,” said Kim Hak-kyun, an analyst at Korea Investment & Securities in Seoul.

The MSCI index of Asia-Pacific shares outside Japan was up 4.6%, its highest level since mid-October and taking its two-month rally to 45% from the low hit in early March. Financial and technology shares powered the rise.

Foreign investors have seized on the rally as an opportunity to allocate more funds to Asia. Fund tracker EPFR Global said that Asia ex-Japan equity funds were the main emerging markets money magnet during the week ending last Wednesday.

On Friday the US S&P 500 edged up 0.5%, and S&P futures were pointing to a further rise later in the day.

Trading was active even with Japanese financial markets closed on Monday for the first of three straight holidays, part of the country’s Golden Week break. Many other markets in the region reopened after labour day holidays.

The Australian dollar climbed 0.7% to $0.7353 and hit a seven-month high of $0.7390 as market players favoured the currency still offering a 3% yield in a world where US and Japanese short-term yields are pinned near zero.

The dollar edged up 0.3% against the yen to ¥99.44, but the euro was up 0.1% at $1.3320.

Government bonds lost more ground as investors feared missing out on the equity rally and shifted funds away from safe-haven holdings.

Source: Home - Livemint.com | 4 May 2009 | 6:45 am

Web-based malicious attacks on rise in India: study

India remains a soft target for Internet threats, as evident from the steep rise in malicious attacks from web-based sources originating mostly from the US and China, a study by global security solutions provider Symantec has revealed.
Source: IndiaeNews.com: Business News | 4 May 2009 | 6:31 am

India manufacturing expands 1st time in 5 months - PMI

MUMBAI (Reuters) - Activity in Indian factories expanded for the first time in five months in April as a swelling orders pipeline pointed to a tentative recovery, a survey showed on Monday.

Source: Reuters: Money News | 4 May 2009 | 6:25 am

Sensex rises 521 points in early trade

The Sensex rose by over 521 points to touch a seven-month high of 11,925.18 in early trade on brisk buying by funds.
Source: Daily News & Analysis: Money News | 4 May 2009 | 5:38 am

Boeing sees 787 Dreamliner flight in Q2

New York: Boeing Co said on Sunday its 787 Dreamliner would be ready for its first flight later in the second quarter, reaffirming a recently announced target for the new airplane.

Boeing, which is already two years behind schedule for the new 787 Dreamliner, said it was continuing to analyze data from recent tests on the plane but that initial results were positive. It said fuel testing begins in the next few days for the plane, for which it has 886 orders from 57 customers.

“We are making great progress, and moving ever-closer to first flight,” Scott Fancher, vice president and general manager of the 787 Dreamliner program said in a statement.

If the rest of Boeing’s tests go according to plan, the company is expected to start delivering planes to airlines in the first quarter of 2010.

The revolutionary, carbon composite aircraft - assembled near Seattle from parts made around the world - was supposed to fly in the summer of 2007, but has been pushed back four times by production snafus and delayed by a two-month mechanics’ strike.

Source: Home - Livemint.com | 4 May 2009 | 5:32 am

Boeing sees 787 Dreamliner flight in Q2

New York: Boeing Co said on Sunday its 787 Dreamliner would be ready for its first flight later in the second quarter, reaffirming a recently announced target for the new airplane.

“We are making great progress, and moving ever-closer to first flight,” Scott Fancher, vice president and general manager of the 787 Dreamliner program said in a statement.

If the rest of Boeing’s tests go according to plan, the company is expected to start delivering planes to airlines in the first quarter of 2010.

Source: World Business - Livemint.com | 4 May 2009 | 5:32 am

Markets try to catch up with world, Sensex rises 500 points

Indian equities markets soared soon after the opening bell as the bulls tried to make up for the loss of two trading days last week, missing out on a global rally. Indian investors also seemed to be enthused by positive signs shown by Asian markets about an hour into trade.
Source: IndiaeNews.com: Business News | 4 May 2009 | 5:30 am

India manufacturing expands 1st time in 5 months: PMI

Mumbai: Activity in Indian factories expanded for the first time in five months in April as a swelling orders pipeline pointed to a tentative recovery, a survey showed on Monday.

The ABN AMRO Bank purchasing managers’ index (PMI) based on a survey of 500 companies, rose to 53.3 in April from March’s 49.5, climbing above the threshold of 50 that separates expansion from contraction.

The latest reading is the highest in seven months and it has steadily risen after hitting a trough of 44.4 in December.

The PMI survey, which is compiled by UK-based Markit Group, comes well ahead of official statistics.

Several research notes in the past few days have pointed to improvement in economic activity in the months ahead. But the central bank remained cautious about the outlook at its policy review last week.

Manufacturing makes up about 16% of India’s gross domestic product. Government data shows India’s factory output fell for the third time in five months in February as the global slowdown hit hard but analyst said they saw some signs of revival after a dismal March quarter.

The boost in manufacturing index came from a surge in new orders. The new orders index rose to 54.9 from 49.5 in March.

The Reserve Bank expects the economy to grow at around 6% in 2009-10, a seven-year low, after growing at an average rate of around 9% or more in three fiscal years to March 2008.

In order to stimulate demand in Asia’s third-largest economy, the central bank has aggressively cut rates since October, most recently last week and has flooded the banking system with cash to stoke bank lending.

The key short-term lending rate has now been cut by 425 basis points in six moves to stand at 4.75%.

The government has cut factory gate duties and announced stimulus packages including $4 billion in extra spending to protect growth in the face of the global slowdown.

Source: Home - Livemint.com | 4 May 2009 | 5:23 am

Rupee up 44 paise against dollar in early trade

The Indian rupee appreciated by 44 paise against the US currency in opening trade on fresh capital inflows by funds as domestic bourses, after a long weekend, are likely to open higher in line with other Asian markets.
Source: India Business News | Business News - Times of India | 4 May 2009 | 4:16 am

Fiat proposes merger with GM Europe, Chrysler

Rome: Fiat Group SpA confirmed on Sunday that it is in talks to buy most of General Motors Corp.’s European operations, taking another step toward creating a global automotive powerhouse.

Fiat also said it is evaluating the possible spinoff of its auto business to form the core of a new company.

Fiat Group Automobiles includes the Fiat, Alfa Romeo and Ferrari brands. In addition, Fiat is in the process of acquiring US automaker Chrysler LLC without putting up any cash.

The new auto company, which according to Fiat would have $105 billion in annual revenue, would put the Italian automaker in markets where it has little or no presence, including North America, traditionally the largest market in the world.

“They’re going to be a global powerhouse, I guess. Who would have thought?” asked Erich Merkle, an independent auto industry analyst in Grand Rapids, Michigan. “They seem to be on a buying binge right now, looking for cheap and distressed assets like Chrysler and Opel.”

The Chrysler deal, which must still be approved by a US bankruptcy court, would be in exchange for giving Chrysler access to Fiat’s small-car and engine technology. Chrysler cars and trucks also would be sold by Fiat through its global distribution network.

The deals would make Fiat a big global player, but that might not be the best thing for the Italian automaker, which might be overreaching with the acquisitions, said Merkle.

“This is a lot to take on, quite honestly,” Merkle said. “When you start looking at Chrysler, it’ll make them a very large automaker, but we’ve seen that large isn’t necessarily indicative of success.”

It will take years, Merkle said, for Fiat to gain any synergies by globalizing design, engineering and manufacturing operations with Chrysler and the GM units.

The Fiat statement was issued on the eve of a meeting in Berlin between Fiat CEO Sergio Marchionne and the German economy and foreign ministers to discuss Fiat’s offer for GM’s German unit, Opel.

GM Europe also includes the British company Vauxhall and the Swedish carmaker Saab. Saab may not be included in the deal, however. The company is being reorganized under Swedish law and is likely to be separated from the rest of GM’s European operations.

GM Europe spokesman Frank Klaas said the company has several possible investors, which he wouldn’t identify, but said, “we are in very good negotiations with them.”

GM also makes and sells small Chevrolet-badged cars in Europe that are designed in South Korea by the company’s Daewoo unit, and it’s unlikely to sell that because that would be GM’s only remaining foothold in Europe, Merkle said.

General Motors has been trying to find investors for its noncore and unprofitable assets as part of a restructuring in which it has received $15.4 billion in aid from the US government to avert collapse.

Opel has said it needs $4.3 billion to get through the economic crisis. The German government has said it doesn’t foresee giving direct state aid. Chancellor Angela Merkel has suggested the government could help an Opel investor with loan guarantees.

Fiat said that over the next few weeks, Marchionne will be looking “to assess the viability of a merger of the activities of Fiat Group Automobiles (including the interest in Chrysler) and General Motors Europe into a new company.”

In an interview Sunday with Corriere della Sera, Fiat Chairman Luca Cordero di Montezemolo called GM’s Opel an “ideal partner” and a possible takeover by Fiat an “extraordinary opportunity.”

Fiat is not the only suitor for Opel, however. Last week, Canadian car parts maker Magna International Inc. presented German Economy Minister Karl-Theodor zu Guttenberg with what the minister called a “rough concept for a commitment with Opel.”

Guttenberg has said the German government would wait to determine its role in any full or partial Opel sale until after the US government had weighed in.

Fiat, meanwhile, has pressed ahead with a takeover of Chrysler. Chrysler is seeking to sell substantially all of its assets to Fiat, but must gain approval from a New York bankruptcy court.

In addition to Fiat Group Automobiles, the Fiat Group also includes its agricultural vehicles branch CNH and its Iveco trucking unit, as well as a media arm.

Source: Home - Livemint.com | 4 May 2009 | 3:31 am