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See demand for Swine Flu drug at $2m/month: Strides ArcolabStrides Arcolab have commenced production and the commercial supplies of capsules for swine flu. The company aims at producing over 2 million doses per month of swine flu capsules by June, informed Aloka Sengupta, PresidentBusiness Development at Strides Arcolab.Source: Moneycontrol Top Headlines | 5 May 2009 | 3:32 pm Orderbook as on Apr 30 at Rs 8,500cr: Maytas InfraSatyamtainted Maytas Infra said its order book stood at Rs 8,500 crore as on April 20 and its customer dues amounted to Rs 500 crore. It added that certain projects had been cancelled due to clients\' change of heart and the overall economic slowdown. SBI Capital Market is working out a CDR plan for Maytas Infra, it added.Source: Moneycontrol Top Headlines | 5 May 2009 | 12:55 pm Swiss banking giant UBS confirms Q1 loss!Swiss bank UBS confirmed on Tuesday it had posted a net loss of 2 billion Swiss francs ($1.76 billion) on the back of yet more writedowns on illiquid assets and said it remained cautious.Source: Zee News : Business | 5 May 2009 | 12:35 pm Oil lingers above $54 on economic recovery hopes!Oil prices lingered above $54 a barrel Tuesday in Asia as growing investor optimism about the global economy left crude poised to break out of a month-long trading range.Source: Zee News : Business | 5 May 2009 | 12:35 pm 10 US banks need more capital: Report !About 10 large US banks will need to increase their capital under a government stress test to measure their health, a news report has said, citing people familiar with the discussions.Source: Zee News : Business | 5 May 2009 | 12:35 pm Is it the end of recession? Global data says so!!Better news on manufacturing in Europe, China and India, and positive signs on US home sales and construction raised hopes on Monday that the deepest economic slump in decades may have bottomed out.Source: Zee News : Business | 5 May 2009 | 12:35 pm Say no to Bangalore, yes to Buffalo: Obama !`Say no to Bangalore and yes to Buffalo,` seems to be the new mantra of US Prez Barack Obama.Source: Zee News : Business | 5 May 2009 | 12:35 pm Bad news for newspapers: White House says no bailout!With the Boston Globe, another major American newspaper on the edge of shutdown, President Barack Obama`s administration has signalled that the newspaper industry will not be getting a government bailout.Source: Zee News : Business | 5 May 2009 | 12:35 pm Chrysler projects profitability by 2012: Report !Ailing car maker Chrysler, the US` third largest, projects it will be back in the black by 2012 if it gets through bankruptcy quick enough and seals its deal with Italy`s Fiat, the Wall Street Journal reported said.Source: Zee News : Business | 5 May 2009 | 12:35 pm EU economy to shrink 4% in worst post-war slump!The EU economy will contract 4.0 percent this year as a worse-than-expected recession drives unemployment to levels not seen since World War II, the European Commission has warned.Source: Zee News : Business | 5 May 2009 | 12:35 pm Bernanke to apprise Congress on fragile US economy today!Federal Reserve Chairman Ben Bernanke will provide Congress with a fresh assessment of the country`s fragile economic health amid warnings that it will take time — perhaps years — for the economy to get back to normal.Source: Zee News : Business | 5 May 2009 | 12:35 pm Tobacco exports jump by 9.27% - Economic Times
Source: Google News India - Business | 5 May 2009 | 11:50 am BSE Sensex pauses for breath; L&T, ICICI riseMUMBAI (Reuters) – The BSE Sensex paused on Tuesday as resistance emerged after the benchmark jumped more than 10 percent in the previous two sessions.Source: Reuters: Money News | 5 May 2009 | 11:40 am Campaigning for 4th phase of LS polls endsNew Delhi: Campaigning ends Tuesday for the fourth round of the Lok Sabha polls on May 7, when the fate of BJP President Rajnath Singh, Congress’ Pranab Mukherjee, SP supremo Mulayam Singh Yadav and RJD chief Lalu Prasad would be decided. Star campaigners of the UPA, the NDA and the Third Front traversed through the country and told voters in the states going to the polls why the other alliance should not be elected instead of talking about any worthwhile issues affecting today. Congress general secretary Rahul Gandhi stepped up his tirade against BJP’s PM hopeful L K Advani, saying he should have resigned as the home minister once he realised that a cabinet colleague of his had escorted terrorists in return for the release of hostages in Kandahar. The BJP, too, continued its criticism of Prime Minister Manmohan Singh, calling him “weak”. “If the Prime Minister only wants to clear files while the political decisions are taken by Sonia Gandhi, then I am afraid what we need is a cabinet secretary and not a Prime Minister,” BJP general secretary Arun Jaitley said. Left, which withdrew support to the UPA over the civil nuclear deal with the US, saying that its policies are “retrograde” and “lack far-sightedness”. A total of 1,315 candidates, including 119 women, are in the fray in the fourth phase that will witness polling to 85 Lok Sabha seats in eight states and union territories. Prominent among the candidates are National Conference’s Farooq Abdullah (Srinagar), Congress’ Kapil Sibal (Chandni Chowk), Sachin Pilot (Ajmer), Shekar Suman (Patna Saheb), BJP’s Shatrughan Sinha (Patna Saheb), HJC’s Bhajan Lal (Hisar) and RLD’s Ajit Singh (Baghpat). Rajnath Singh is contesting from Ghaziabad Lok Sabha seat, while Mukherjee is fighting from Jangipur and Mulayam from Mainpuri. Lalu Prasad, who has already entered polls from Saran Lok Sabha seat, is also contesting from Pataliputra to further secure his place in Parliament. Former BJP strongman Kalyan Singh is fighting as an independent with the support of Samajwadi Party from Etah. Polling for all the 25 seats in Rajasthan, 10 in Haryana and seven in Delhi will be completed at one go. Source: LatestNews-Home - Livemint.com | 5 May 2009 | 11:38 am Opel labour leader says Fiat deal risks everything - Reuters India
Source: Google News India - Business | 5 May 2009 | 11:29 am Wipro wins outsourcing deal from Unitech WirelessBangalore: A unit of Wipro Ltd, India’s No. 3 software services exporter, said one it had won a nine-year outsourcing contract from telecoms firm Unitech Wireless, but provided no financial details. Under the agreement, Wipro Infotech will provide a range of information technology services to Unitech Wireless, in which Norwegian telecom group Telenor holds a stake, the company said in a statement on Tusday. Source: LatestNews-Home - Livemint.com | 5 May 2009 | 11:29 am Sensex ends choppy session flatSensex ended with a small loss of 3.67 points as market participants indulged in booking profits a day after the market jumped 6.4%.Source: India Business News | Business News - Times of India | 5 May 2009 | 11:23 am Cipla gets tentative U.S. nod for AIDS drugMUMBAI (Reuters) - Indian drug maker Cipla Ltd said on Tuesday the U.S. Food and Drug Administration had granted tentative approval for its 300 mg variant of tenofovir disoproxil fumarate AIDS treatment drug.Source: Reuters: Money News | 5 May 2009 | 11:19 am UBS wary on outlook but won’t need capital hike soonZurich: UBS remained wary on its immediate outlook as it braced for the recession’s full impact after a first quarter loss, but its shares rose as resilient capital ratios cut the need for a balance sheet boost. Despite a strong rebound in stock markets in recent weeks, UBS said the global economy has continued to deteriorate and its home market Switzerland, where the economy is set to contract by up to 3% this year, will not be spared. “The markets continue to be unsettled, and we remain cautious on the immediate outlook for UBS,” the world’s largest wealth manager said in a statement as it expected credit-related provisioning to rise in the coming quarters. UBS confirmed on Tuesday it had made a first quarter net loss of 2 billion Swiss francs ($1.76 billion), contrasting with a strong three months for Credit Suisse and European rivals such as Deutsche Bank and Barclays. But the Swiss bank reported a Tier 1 ratio of 10.5%, above the 10% guidance it gave on 15 April as it pre-announced results. Chief financial officer John Cryan also said client withdrawals were slowing. UBS also said it cut its balance sheet by 8% in the quarter. “UBS’ capital ratios have improved and there is no capital increase coming up. People are getting excited because of that,” said Dirk Becker, an analyst with Kepler Equities. Shares were up 3.8% at 16.31 Swiss francs at 1055 GMT, underperforming the DJ Stoxx European banking sector, which was up 4.3%. Traders said the absence of negative surprises from UBS’ statement and slowing client outflows helped the shares. “They managed to reduce outflows and there is an overall sense of relief that results were not worse than expected,” said Vontobel analyst Teresa Nielsen. STILL CAUTIOUS UBS, one of Europe’s worst-hit banks in the crisis, made more than $50 billion of writedowns that prompted a government rescue in October and the naming of new top management this year. Its Tier 1 ratio would have been 11% if the effects of the $2.5 billion sale of Brazilian unit Pactual, which forced UBS to book an impairment charge in the first quarter, had been included. Cryan said UBS would consider small sales to further boost its capital base, but ruled out selling entire divisions. While Credit Suisse’s Tier 1 ratio was 14.1%, one of the strongest in the industry, Cryan said UBS’s capital position was still strong compared with many other banking rivals. About 10 of the 19 largest US banks being stress tested will be instructed by regulators to raise more capital, a source familiar with official talks said on Tuesday. Some analysts, however, remained cautious on UBS’ prospects to return to profit as the bank is still saddled with toxic assets, including monoline exposures that forced it to write down 1.9 billion francs in the first quarter. “These legacy positions were just outsized and it is taking some time to wash them out,” Cryan told an analysts’ call. UBS also gave more details on big job cuts it announced last month, saying 6,500 posts would go at the bank’s treasured wealth management units and 2,500 at the investment bank. “The environment is still very cloudy for UBS in terms of mark-downs in the coming quarters, in terms of cost of risks for the investment bank and now they are talking about some accounting errors,” said Sebastien Lemaire at Natixis. UBS said client withdrawals at its core wealth management and Swiss bank unit slowed to 23.4 billion francs in the quarter while its wealth management Americas business saw inflows of 16.2 billion francs, in line with what it announced in April. Cryan said news on a US tax fraud probe into UBS had prompted wealthy clients to withdraw money, in particular after the bank announced in February it had agreed to pay a fine to avoid criminal charges. But he said that outflows had been slowed down now that UBS was less in the spotlight. UBS restated its 2008 accounts to correct accounting errors that raised the full-year loss, already the biggest in Swiss corporate history, by a further 405 million francs. Source: World Business - Livemint.com | 5 May 2009 | 11:15 am UBS wary on outlook but won’t need capital hike soonZurich: UBS remained wary on its immediate outlook as it braced for the recession’s full impact after a first quarter loss, but its shares rose as resilient capital ratios cut the need for a balance sheet boost. Despite a strong rebound in stock markets in recent weeks, UBS said the global economy has continued to deteriorate and its home market Switzerland, where the economy is set to contract by up to 3% this year, will not be spared. “The markets continue to be unsettled, and we remain cautious on the immediate outlook for UBS,” the world’s largest wealth manager said in a statement as it expected credit-related provisioning to rise in the coming quarters. UBS confirmed on Tuesday it had made a first quarter net loss of 2 billion Swiss francs ($1.76 billion), contrasting with a strong three months for Credit Suisse and European rivals such as Deutsche Bank and Barclays. But the Swiss bank reported a Tier 1 ratio of 10.5%, above the 10% guidance it gave on 15 April as it pre-announced results. Chief financial officer John Cryan also said client withdrawals were slowing. UBS also said it cut its balance sheet by 8% in the quarter. “UBS’ capital ratios have improved and there is no capital increase coming up. People are getting excited because of that,” said Dirk Becker, an analyst with Kepler Equities. Shares were up 3.8% at 16.31 Swiss francs at 1055 GMT, underperforming the DJ Stoxx European banking sector, which was up 4.3%. Traders said the absence of negative surprises from UBS’ statement and slowing client outflows helped the shares. “They managed to reduce outflows and there is an overall sense of relief that results were not worse than expected,” said Vontobel analyst Teresa Nielsen. STILL CAUTIOUS UBS, one of Europe’s worst-hit banks in the crisis, made more than $50 billion of writedowns that prompted a government rescue in October and the naming of new top management this year. Its Tier 1 ratio would have been 11% if the effects of the $2.5 billion sale of Brazilian unit Pactual, which forced UBS to book an impairment charge in the first quarter, had been included. Cryan said UBS would consider small sales to further boost its capital base, but ruled out selling entire divisions. While Credit Suisse’s Tier 1 ratio was 14.1%, one of the strongest in the industry, Cryan said UBS’s capital position was still strong compared with many other banking rivals. About 10 of the 19 largest US banks being stress tested will be instructed by regulators to raise more capital, a source familiar with official talks said on Tuesday. Some analysts, however, remained cautious on UBS’ prospects to return to profit as the bank is still saddled with toxic assets, including monoline exposures that forced it to write down 1.9 billion francs in the first quarter. “These legacy positions were just outsized and it is taking some time to wash them out,” Cryan told an analysts’ call. UBS also gave more details on big job cuts it announced last month, saying 6,500 posts would go at the bank’s treasured wealth management units and 2,500 at the investment bank. “The environment is still very cloudy for UBS in terms of mark-downs in the coming quarters, in terms of cost of risks for the investment bank and now they are talking about some accounting errors,” said Sebastien Lemaire at Natixis. UBS said client withdrawals at its core wealth management and Swiss bank unit slowed to 23.4 billion francs in the quarter while its wealth management Americas business saw inflows of 16.2 billion francs, in line with what it announced in April. Cryan said news on a US tax fraud probe into UBS had prompted wealthy clients to withdraw money, in particular after the bank announced in February it had agreed to pay a fine to avoid criminal charges. But he said that outflows had been slowed down now that UBS was less in the spotlight. UBS restated its 2008 accounts to correct accounting errors that raised the full-year loss, already the biggest in Swiss corporate history, by a further 405 million francs. Source: LatestNews-Home - Livemint.com | 5 May 2009 | 11:15 am Opel labour leader says Fiat deal risks everythingFRANKFURT (Reuters) - The senior labour leader of German carmaker Opel warned that Fiat's ambitious growth strategy was an all-or-nothing bet, rejecting the Italian rival's takeover concept for the GM Europe brand.Source: Reuters: Money News | 5 May 2009 | 11:13 am METALS-Copper firms as economic data hints at recovery - Reuters
Source: Google News India - Business | 5 May 2009 | 11:07 am RBI moves $5.7 bln to govt, eases borrowingMUMBAI (Reuters) – The Reserve Bank of India (RBI) said on Tuesday it had transferred 280 billion rupees ($5.7 billion) from its intervention bonds to the government, a move that would ease the pressure on record market borrowings planned for 2009/10.Source: Reuters: Money News | 5 May 2009 | 11:04 am Obama's tax plan not seen hitting Indian outsourcingIndia Inc believes the move by the Barack Obama administration to reduce tax breaks for US firms that ship jobs overseas will hit American companies more than impact on the Indian outsourcing industry.Source: IndiaeNews.com: Business News | 5 May 2009 | 11:03 am Crude palm oil futures up on firm global cues - Hindu
Source: Google News India - Business | 5 May 2009 | 11:02 am Mahindra kick-starts two-wheeler foray with FlyteMahindra and Mahindra Ltd, part of the $6.7-billion Mahindra Group, Tuesday introduced 'Flyte', its first two-wheeler offering, across all markets in India.Source: IndiaeNews.com: Business News | 5 May 2009 | 11:02 am Markets snap from rallying to end in redMumbai: Indian shares fell 0.03% on Tuesday, as investors took profits after the market jumped more than 10% over the previous two trading sessions. The 30-share BSE index ended down 3.67 points at 12,131.08, with 18 stocks declining. The 50-share NSE index closed flat at at 3,661.90 points or 7.90. Source: LatestNews-Home - Livemint.com | 5 May 2009 | 11:02 am Strides Arcolab starts swine flu vaccine supplyMumbai: Strides Arcolab Ltd said on Tuesday it has started commercial supplies of oseltamivir capsules, a generic of Roche’s Tamiflu anti-viral drug that has been shown to work against the H1N1 flu, to various countries. Bangalore-based Strides is one of the few manufacturers in India approved to make the generic equivalent of Roche’s Tamiflu. It gearing up to produce more than 2 million doses of the generic drug per month from June, it said in a statement. Source: LatestNews-Home - Livemint.com | 5 May 2009 | 11:02 am Agartala civic body to crack down on 'water thieves'Faced with a serious water crisis the past few months, the Agartala civic body has decided to crack down on 'water thieves' and has 'identified' 12 people, including a police official, a professor, doctors and senior bureaucrats, for the 'crime', an official said Tuesday.Source: IndiaeNews.com: Business News | 5 May 2009 | 11:01 am Maytas to raise fresh funds, not ruling out stake saleThe government-appointed board of Maytas Infra Ltd, an infrastructure firm linked to fraud-hit Satyam Computers, Tuesday said it was planning to raise funds through fresh loans and, if necessary, through a stake sale.Source: IndiaeNews.com: Business News | 5 May 2009 | 11:01 am Air India aircraft grounded after being hit by aerobridgeAn Air India aircraft was hit and its door damaged after an aerobridge hit it at the airport here Tuesday morning. The pilot, co-pilot and two ground staff were taken off duty following the incident.Source: IndiaeNews.com: Business News | 5 May 2009 | 11:01 am L&T to invest $400 mn on defence business Mumbai: Engineering conglomerate Larsen & Toubro will invest Rs15-20 billion ($300-$400 million) over the next three years on defence-related business, Chairman AM Naik said on Tuesday. “Of this, Rs15 billion is what we are spending for the defence shipyard at Ennore,” Naik told reporters, referring to the venture in south India. He said the remainder would be spend on expansion of existing facilities. The company earlier said Larsen and the defence and security division of Europe’s EADS would form a joint venture to make defence electronics in India, eyeing orders from a modernising Indian army. Source: LatestNews-Home - Livemint.com | 5 May 2009 | 10:58 am UBS remains cautious after confirming Q1 lossZurich: UBS remained wary on its immediate outlook as it braced for the full impact of the recession after confirming it had posted a first quarter loss on yet more writedowns and client withdrawals. Despite a strong rebound in stock markets in recent weeks, UBS said the global economy has continued to deteriorate and its home market Switzerland will not be spared. The Swiss economy is set to contract by up to 3% this year. “The markets continue to be unsettled, and we remain cautious on the immediate outlook for UBS,” the world’s largest wealth manager said in a statement. The loss contrasts with competitor Credit Suisse’s first-quarter profit of 2 billion Swiss francs and gains by European rivals such as Deutsche Bank and Barclays. Risky investments by UBS’s investment bank in complex US financial products have forced it to make more than $50 billion in writedowns and turned to the Swiss government for help. UBS, which still holds billions of dollars of illiquid assets despite transferring many of those to the Swiss central bank, indicated credit-related provisions would rise in the coming quarters and said the teetering economy was starting to impact on loans to small firms. “The Swiss economy is slowing down and there is a lag effect for banks that has yet to make itself visible,” UBS Chief Financial Officer John Cryan told a conference call. Shares were up 4.6% at 16.42 Swiss francs at 0802 GMT, outperforming the DJ Stoxx European banking sector, in what traders saw as some short-covering after the stock fell the previous day. Outlook still cloudy The bank confirmed it had made a first quarter net loss of 2 billion Swiss francs ($1.76 billion) as announced by new Chief Executive Oswald Gruebel on April 15. Gruebel said the same day that the bank was still facing an uncertain future and announced 8,700 job cuts. “There is some good news, including the outflows in private banking, which are less worse than what could have been expected,” said analyst Sebastien Lemaire at Natixis Securities. “But the environment is still very cloudy for UBS in terms of mark-downs in the coming quarters, in terms of cost of risks for the investment bank and now they are talking about some accounting errors.” UBS said it restated its 2008 accounts to correct accounting errors that raised the full-year loss, already the biggest in Swiss corporate history, by a further 405 million francs. UBS said client withdrawals at its core wealth management and Swiss bank unit slowed to 23.4 billion francs in the quarter while its wealth management Americas business saw inflows of 16.2 billion francs, in line with what it announced in April. Cryan said news on a US tax fraud probe into UBS had prompted wealthy clients to withdraw money, in particular after UBS announced in February it had paid a large fine to avoid criminal charges. But he said that outflows had been slowing down now that there were fewer headlines on the case. The global asset management business saw net new money outflows slowing to 7.7 billion francs. UBS was also hit by a goodwill impairment of 631 million francs from the sale of Brazilian unit Pactual and severance costs of 184 million francs. It expects about 650 million of restructuring and severance charges in the second quarter. UBS, which is struggling to curb it large balance sheet, said it had further reduced risks on the first quarter, bringing total risk-weighted assets to 277.7 billion francs. Its Tier 1 ratio, a key measure of financial strength, was 10.5% at the end of the quarter, but would have been 11% if the effects of the Pactual sale had been included. Cryan said UBS would consider selling small, non-core areas of business to boost its Tier 1, but not entire divisions. While Credit Suisse’s Tier 1 ratio was 14.1% at the end of the first quarter, Cryan said UBS’s capital position was still strong compared with many rivals. About 10 of the 19 largest US banks being stress tested will be instructed by regulators to raise more capital, a source familiar with official talks said on Tuesday. Source: LatestNews-Home - Livemint.com | 5 May 2009 | 10:57 am No policy can be issued from future date without consent: SCNew Delhi: The Supreme Court has ruled that an insurance company cannot issue a policy from a future date without the consent of the insured. “The insurance company cannot issue a policy unilaterally from a future date without the consent of the holder of a policy. A policy, however, which is issued from a future date must be with the consent of the holder of the policy,” a Bench of Justices S B Sinha and P Sathasivam observed. The Bench passed the ruling while setting aside a Delhi High Court judgment. Appellant Balbir Kaur had filed a claim of compensation for the death of her husband Baljit Singh, who died after being run over by a bus. The Motor Accidents Claims Tribunal (MACT) awarded her a compensation of Rs7.96 lakh. However, the High Court set aside the order on the grounds that the accident had taken place on 18 March 1996, and the third party insurance contract of the bus owner commenced only from March 19 as per the cover note issued by New India Assurance Company. Aggrieved by the ruling, the woman had filed the appeal in the apex court. Source: LatestNews-Home - Livemint.com | 5 May 2009 | 10:56 am Citibank launches preferred rupee checking account for NRIsMumbai: Global financial giant Citibank on Tuesday announced the launch of a facility aimed at its NRI clients. The facility, called the preferred rupee checking account, include a dedicated priority service platform, superior foreign exchange rates on inward remittances and lower service charges on banking services, a release said. The service also offers custom-designed privileges on some characteristic India-oriented requirements of NRIs, it said. The product will be an account domiciled in India and denominated in rupees under the aegis of the Reserve Bank of India, the release said. Customers will be able to remit money from a foreign country into this account, which can then be operated by their mandate holder in India, it said. “The rupee checking account is our flagship product for the NRIs. The account provides both transactional and lifestyle benefits,” Citi India’s Global Consumer Group, country business manager, N. Rajashekaran said. Citibank had recently launched Citi Online Remit, a money transfer service to India that provides NRIs based in the US the facility to transfer funds to India. Citibank started its NRI business in the US in 1985 and manages wealth needs of over 1.2 lakh clients in the country. Source: LatestNews-Home - Livemint.com | 5 May 2009 | 10:55 am ICICI Bank hopeful of single-digit interest rates - Business Standard
Source: Google News India - Business | 5 May 2009 | 10:54 am Kingfisher seeks over Rs2,000 cr working cap loan from SBINew Delhi: Vijay Mallya-run Kingfisher Airlines is understood to be finalising a working capital loan of over Rs2,000 crore from the country’s largest lender, SBI, mainly aimed at clearing its fuel bills. The carrier, which has a total outstanding of over Rs785 crore to IndianOil Corp (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), is looking to service the dues through the loan from SBI, according to industry sources. “Kingfisher Airlines is in very advanced stages of getting the loan from SBI, which could be over Rs2,000 crore. This should help the carrier meet its immediate and short-term capital requirements,” a source added. When contacted, a Kingfisher Airlines spokesperson declined to comment on the issue, citing confidentiality. “Fund raising is an ongoing issue and because we are bound by confidentiality and non-disclosure agreements, it will be inappropriate to offer any comment at this stage,” the spokesperson said. SBI officials could not be contacted for comments. As on 20 April, the carrier owed IOC about Rs160 crore. Kingfisher also owes HPCL — its largest ATF supplier — Rs336 crore, and BPCL Rs290 crore, the sources said. IOC had encashed a Rs50 crore bank guarantee after a cheque issue by the carrier towards fuel dues bounced and it had put Kingfisher on cash-and-carry about 2-3 months ago after the airline failed to honour its commitment of making timely payments for fuel dues as had been agreed last year. On the IOC issue, the Kingfisher spokesperson said: “It is not Kingfisher Airlines’ policy to discuss its relationships with suppliers in the public domain ... Kingfisher Airlines is operating its full schedule of flights daily.” Both IOC and BPCL have stopped credit to Kingfisher and are asking the airline to make payments each time it refuels. HPCL, however, continues to give some credit to the airline. Industry sources said Jet Airways, the other private carrier that was part of the bailout package, has been clearing its dues regularly. Its outstanding to IOC is just Rs30 crore and it owed BPCL Rs80 crore. Source: LatestNews-Home - Livemint.com | 5 May 2009 | 10:54 am India copper futures trade weak, outlook stays firm - Reuters India
Source: Google News India - Business | 5 May 2009 | 10:53 am Global data points to recession easingWASHINGTON (Reuters) - Better news on manufacturing in Europe, China and India, and positive signs on U.S. home sales and construction raised hopes on Monday that the deepest economic slump in decades may have bottomed out.Source: Reuters: Money News | 5 May 2009 | 10:50 am 105.37 lakh tonnes wheat procured in Punjab - PunjabNewsline.com
Source: Google News India - Business | 5 May 2009 | 10:47 am Some Asian nations may ask for ADB help on crisisNUSA DUA, Indonesia (Reuters) - Some Asian governments are already looking for support from the Asian Development Bank's new $3 billion facility to counter the effects of the global economic downturn, the head of the bank said on Tuesday.Source: Reuters: Money News | 5 May 2009 | 10:41 am India cbank cash auction surprise not a signal on yields - Reuters India
Source: Google News India - Business | 5 May 2009 | 10:37 am L&T may set up three more OCs, to invest Rs 2k cr in defence - Economic Times
Source: Google News India - Business | 5 May 2009 | 10:37 am Market ends choppy session flat; realty stocks outperform - Economic Times
Source: Google News India - Business | 5 May 2009 | 10:33 am INTERVIEW - S&P may revise India ratings after electionNUSA DUA, Indonesia (Reuters) - Standard & Poor's may revise its credit rating on India as early as July after the next government outlines its fiscal policy, a senior analyst said on Tuesday.Source: Reuters: Money News | 5 May 2009 | 10:08 am Markets shut shop marginally in redIndian equities markets shut shop in the red, with a key index ending trade about 41 points lower than its previous close Monday.Source: IndiaeNews.com: Business News | 5 May 2009 | 10:00 am Larsen & Toubro, EADS unit form defence JVMUMBAI (Reuters) - Larsen & Toubro and the defence and security division of Europe's EADS will form a joint venture to make defence electronics in India, eyeing orders from a modernising Indian army.Source: Reuters: Money News | 5 May 2009 | 9:36 am Aerobridge slams into Air India aircraft in MumbaiIn a major breach of safety, an Air India aircraft was hit and its door damaged by an aerobridge at the airport here after 172 passengers had boarded the plane for Mangalore.Source: IndiaeNews.com: Business News | 5 May 2009 | 9:33 am Markets volatile but stick to narrow rangeA key index of the Indian equities markets was ruling a little above its previous close about an hour before closing bell Tuesday.Source: IndiaeNews.com: Business News | 5 May 2009 | 9:32 am Modi wants to 'gift' Advani rain water harvesting projectGujarat Chief Minister Narendra Modi is waiting for Lok Sabha elections to end to implement an elaborate plan to ensure 24 hours water supply in the state capital as a 'gift' to Bharatiya Janta Party (BJP) prime ministerial candidate L.K. Advani, an official said Tuesday.Source: IndiaeNews.com: Business News | 5 May 2009 | 9:32 am Government plans duty on auto component importsThe government is considering imposing safeguards duty and anti-dumping measures on cheap imports of auto components, a senior official said here Tuesday.Source: IndiaeNews.com: Business News | 5 May 2009 | 9:31 am Hyundai to launch i20 diesel by year-endKorean auto major Hyundai Motor Company will bring the diesel variant of its premium hatchback 'i20' by the end of this year.Source: India Business News | Business News - Times of India | 5 May 2009 | 9:14 am IT Dept\'s order contrary to CBDT law: Aditya Birla NuvoThe Income Tax (IT) Department has sought time from the Bombay High Court to respond to Aditya Birla Nuvo\'s Writ Petition. Aditya Birla Nuvo\'s petition says the IT Departments order is \'grossly without jurisdiction\' and \'contrary to law as accepted by CBDT.\'Source: Moneycontrol Top Headlines | 5 May 2009 | 9:13 am Rahul confident of Left support to ManmohanNew Delhi: Rahul Gandhi on Tuesday gave clear signals of working with the Left parties in the post-poll scenario, expressing confidence that the Communists would accept Manmohan Singh as Prime Minister and a Congress-led government. At a press conference here, he was, however, sure that the Congress would form a government. “But in a democracy, if it so happens, we have no choice,” he said in reply to a question whether Congress would sit in the opposition. Asked if Congress would support the Left parties, which had supported the UPA for over four years, in forming the government, Gandhi appeared to be sarcastic when he said, “We will consider that if the Left gets 180-190 MPs. We will consider them. I hope they are able to achieve that. If they do, I will be first person to say let us support Left”. Also Read We’ll form the government: Rahul Gandhi Anil Padmanabhan’s Column | The Rahul Gandhi doctrine: will it work? At the outset, he expressed confidence that the Congress would return to power and that the BJP-led NDA was finished on the ground. Gandhi was asked whether the Congress would consider a post-poll tie up again with the Left for forming the government in case of a hung verdict. “....On a lot of concepts we agree with the Left like education and health. There is a lot of meeting ground with the Left. There is absolutely no meeting ground with BJP for what they did in Gujarat and Karnataka and burnt Christians in Orissa. There is a lot of common ground to do with the Left. There is a reasonable amount of common space,” he replied. Gandhi said Congress was always open to post-poll alliances and at a later point in reference to the Left, he made it clear that “the field is open to post-poll alliances”. Asked whether the Congress would compromise on its prime ministerial candidate if the Left was not ready for Manmohan Singh, Gandhi said “Singh is the best prime ministerial candidate for the country. The Congress does not compromise on its thinking which it showed on the nuclear deal. “I am confident that the Left will support Manmohan Singh government. I am confident that the Left would rather have a Congress Prime Minister,” he said. Saying his views on the Left was his personal, he said he did say that the Left had old ideas -- 20 to 30 years old view on nuclear deal -- and integration with global economy but he was confident that the Left would be forced to accept that the world has changed. He also had some good words for Telugu Desam chief N Chandrababu Naidu and Bihar chief minister Nitish Kumar in their performance in their governments. Earlier in the press conference, Gandhi referred to Jayalalithaa-led AIADMK and Nitish Kumar saying they were like-minded parties. “After elections, all options are open. NDA partners are looking at where is NDA. It exists only in the mind of the BJP. NDA does not exist on the ground. It is gone,” he said. To a query on contradictions in UPA with Congress projecting Manmohan Singh as Prime Minister and another UPA ally Nationalist Congress Party (NCP) projecting Sharad Pawar for the top job, Gandhi said again in a sarcastic, “If NCP becomes the biggest party in India that option is open. “If Congress becomes the biggest party, then we have already decided that Manmohan Singh will be automatic choice. He is an extremely dynamic leader and he has done terrific things for the country.” Gandhi also indicated that the question of prime ministership is not negotiable for the party by describing him “as the best Prime Minister the country could have.” He dismissed as “figment of media’s imagination” suggestions that the allies of the Congress were not backing Manmohan Singh as PM. “They have full faith in our Prime Minister,” he said hoping that the Congress would better in this election than it did the last time. Asked whether he would take over as Congress president in view of his stance that he would like to build the organization or become a minister in a UPA government, he made light of the question saying the media was always putting pressure on him to take up new responsibilities. “It is for the Prime Minister and my boss (Congress president) to decide,” he said adding his first preference was to build the organization especially the youth wing. Source: Home - Livemint.com | 5 May 2009 | 9:11 am Wipro wins outsourcing deal from Unitech WirelessBANGALORE (Reuters) - A unit of Wipro Ltd, India's No. 3 software services exporter, said it had won a nine-year outsourcing contract from telecoms firm Unitech Wireless, but provided no financial details.Source: Reuters: Money News | 5 May 2009 | 9:02 am United Spirits stake sale talks with Diageo make no headwayThe worlds largest liquor maker Diageos plan to pick up a stake in United Spirits is hanging fire as both the companies struggle to identify a firm structure for the deal.Source: Moneycontrol Top Headlines | 5 May 2009 | 8:27 am Maruti bets on Ritz to drive domestic salesMaruti Suzuki expects its upcoming model Ritz, based on the Swift platform, to sell about 9,000 units a month. The companys confidence to sell high volumes of this model stems from the success of Swift, which was its fastest model to cross a sale of 3 lakh units in three years and eight months.Source: Moneycontrol Top Headlines | 5 May 2009 | 8:26 am Tech Mahindra defers appointing campus recruitsOver 3,000 campus recruits of Tech Mahindra who passed out last year will have to wait for at least the next six months to come on board as the global recession has hit demand for IT services.Source: Moneycontrol Top Headlines | 5 May 2009 | 8:22 am Car cos push for loans on vehicles for commercial useThe reluctance among private sector banks to finance vehicles for commercial purposes has compelled auto companies to turn to their private financing arm or ink separate agreements.Source: Moneycontrol Top Headlines | 5 May 2009 | 8:18 am Nano gets over 2 lakh bookingsThe Tata Nano has drawn 2.03 lakh bookings valued at nearly Rs 2,500 crore, according to a Tata Motors release issued here on Monday.Source: Moneycontrol Top Headlines | 5 May 2009 | 8:16 am S&P may revise India ratings after pollsNusa Dua (Indonesia): Standard & Poor’s may revise its credit rating on India as early as July after the next government outlines its fiscal policy, a senior analyst said on Tuesday. The ratings agency also believes that recent signs of global economic recovery are prompted by government stimulus packages and that another downturn could still be possible, Elena Okorotchenko, S&P’s senior director for Asian sovereign ratings, said in an interview. “Once the new (Indian) government is in place, we will be talking to them in order to understand their additional fiscal measures and how this would reflect on their budget performance and debt burden both in the short and medium-term,” she said. “Depending on what we learn from this, we may be able to act either by affirming the rating and revising the outlook back to stable or downgrading.” Okorotchenko spoke to Reuters on the sidelines of the Asia Development Bank’s annual meeting, held in Indonesia. India’s month-long elections are due to finish by the middle of this month and the next government is expected to take office in June. India’s deteriorating finances and swelling budget deficit have been a growing concern for investors, with the current government sharply increasing borrowing to pay for economic stimulus programmes. Goldman Sachs expects the total Indian central and state deficit to have risen to 10.3% of gross domestic product during the financial year that ended in March 2009. That would be among the highest in the world, and an increase from 6.3% a year earlier. S&P in February changed its outlook on India to negative from stable, indicating it was considering a cut in its rating from BBB-minus, the lowest investment grade rating. A sovereign rating is an indicator of a country’s financial health and a downgrade could raise the interest rates paid by the government and companies when they borrow money. It still may be too early to speak confidently about “green shoots”, or initial signs of an economic recovery, Okorotchenko said. “It’s great to see these green shoots. But what we are observing now is the result of the unprecedented fiscal stimulus. The governments have indeed managed to alleviate some of the financial, economic and social pressures,” she said. “But if the fiscal stimulus fails to re-ignite the economies -- namely, private consumption and investment -- then we may experience a double-dip recession scenario.” Source: Home - Livemint.com | 5 May 2009 | 7:08 am Gold futures rise on positive global cuesGold futures inched up by 0.28 cent in early trade on the MCX today on steady buying by speculators influenced by a firming global trend.Source: India Business News | Business News - Times of India | 5 May 2009 | 6:35 am Rupee up by 31paise against dollarMumbai: The Indian rupee appreciated by 31paise against the dollar in early trade today due to increased capital inflows by funds on expectation that the domestic equity market will open in the positive zone. At the Interbank Foreign Exchange (Forex) market, the local unit traded higher by 31paise at Rs49.61 against the US currency. Forex dealers said fresh capital inflow into the Indian domestic market and dollar’s weakness against other Asian currencies, supported the rupee. Yesterday, the Indian rupee had ended 12paise higher at 49.92/94 against the greenback. Source: Home - Livemint.com | 5 May 2009 | 6:22 am Stocks open flat-to-negativeBombay Stock Exchanges Sensex was down 24.62 points at 1210hrs. National Stock Exchanges Nifty fell 3639, lower by 14.55 points.Source: India Business News | Business News - Times of India | 5 May 2009 | 5:31 am About 10 US stress tested banks to need more capitalWashington: About 10 of the 19 largest US banks being stress tested will be instructed by regulators to raise more capital, according to a source familiar with official talks. The banks have been negotiating with their regulators about the depth of their capital needs, should the recession prove to be deeper and longer than anticipated. Markets have been anxiously anticipating the results, which will differentiate the strongest banks from those still expected to sustain considerable credit losses. The exact roster of banks needing to build their capital positions is still unclear. Banks are expected to be briefed on the official results on Tuesday. The Federal Reserve and Treasury Department will also tell them how policymakers plan to publicly unveil the market-sensitive results, the source said, speaking anonymously because the discussions are private. The Treasury and Fed declined to comment on how many banks will be directed to raise more capital. The largest US banks have spent recent days making the case to regulators that they have the financial firepower to withstand a deeper recession, as Bank of America on Monday denied a report it was trying to raise capital of $10 billion. Some industry insiders worry the stress test results come at a time when the sector is starting to see positive effects from some surprisingly strong first-quarter earnings figures. “I think the great risk there is that you create some new uncertainty and concerns at the very time the financial condition of the banking industry is turning for the better,” Wayne Abernathy, an executive at the American Bankers Association and a former Treasury official said earlier on Monday. Banks found to be in need of more capital will have to embark on a recovery plan that could involve converting preferred stock, raising fresh private capital, or accepting government help - assistance which comes with close scrutiny from Congress that will certainly be unwelcome on Wall Street. Banks found to need capital will likely want to lay out capital-raising plans quickly to avoid being punished by panicky investors, although regulators won’t require them to put a plan on the table immediately. The emphasis will be placed on raising capital from within or private outlets. Pouring more public money into banks would put political pressure on President Barack Obama, whose administration is keen to avoid asking lawmakers to approve more bailout money for shortfalls that some analysts think may reach $150 billion. The Treasury could soon have more funds on hand to infuse into weaker institutions, as officials estimate that stronger banks will return at least $25 billion doled out from the government’s financial rescue fund. However, they want to ensure enough capital remains in the system as a whole. Policymakers are expected to soon lay out conditions banks would need to meet to return funds. White House spokesman Robert Gibbs on Monday said that the administration does not see a need to ask the US Congress for additional funds to support banks, and that the banks will be encouraged to seek extra funds through private sources. “I think everyone involved will be looking for banks to raise this through either private means or the selling of some assets that they have or that they control,” Gibbs said. He also said that the banks themselves will determine which steps they will take to raise capital. ”They’ll have a certain amount of time to put together a plan that meets ... the test of regulators to ensure that stability,” Gibbs told reporters. Some banks have complained that regulators were too harsh in their assessment over how much of a buffer they need to absorb future losses, and were underestimating profitability. Bot so bad? Bank of America Corp shares rose more than 19% after it denied a Financial Times report that it was working on plans to raise fresh funds to fill a $10 billion capital hole. The KBW Banks index, which includes about two dozen large banks including Bank of America, rose almost 15%. But investors remained on edge as Thursday’s deadline neared. The Associated Press reported that Wells Fargo was asked to raise more capital after its stress test. Citigroup has also been identified as a bank needing to raise its capital buffer. The firm will need to boost its common equity by up to $10 billion, a person familiar with the matter said Monday. Bank of America, Wells Fargo and JPMorgan did not immediately respond late on Monday to a request for comment. An official from Citigroup declined comment. Ratings agency Standard & Poor’s said it may lower the counterparty credit ratings of 22 financial firms - including Bank of America, Wells Fargo and Citigroup - based on results of its own stress testing. “These rating actions identify companies that we believe have at least a one-in-two likelihood of a ... downgrade within 90 days,” S&P said in a statement. ”That said, we believe that most rated institutions will be able to earn their way out of these credit losses during the cycle.” As analysts crunched their own numbers, at least one found that balance sheets may not be in as bad shape as feared. David Trone, a Fox-Pitt Kelton bank analyst, said he expected Thursday’s results to show a few banks were in need of more capital, although the shortfalls would probably be modest and “bank stocks won’t collapse.” The US Federal Reserve and other regulators have spent the past few weeks poring over holdings of the 19 largest banks, examining real estate and other assets that have lost significant value as the housing market crashed. The process aimed to gauge how banks would hold up if the economy were to continue its steep descent and home prices fell another 22% this year and 7% in 2010. The institutions undergoing stress tests include Citigroup Inc, Bank of America, Goldman Sachs Group Inc, JPMorgan Chase & Co, Morgan Stanley, MetLife Inc, Wells Fargo & Co, PNC Financial Services Group Inc, US Bancorp, Bank of NY Mellon Corp, SunTrust Banks Inc, State Street Corp, Capital One Financial Corp, BB&T Corp, Regions Financial Corp, American Express Co, Fifth Third Bancorp, KeyCorp and GMAC LLC. Source: Home - Livemint.com | 5 May 2009 | 4:49 am About 10 US stress tested banks to need more capitalWashington: About 10 of the 19 largest US banks being stress tested will be instructed by regulators to raise more capital, according to a source familiar with official talks. The banks have been negotiating with their regulators about the depth of their capital needs, should the recession prove to be deeper and longer than anticipated. Markets have been anxiously anticipating the results, which will differentiate the strongest banks from those still expected to sustain considerable credit losses. The exact roster of banks needing to build their capital positions is still unclear. Banks are expected to be briefed on the official results on Tuesday. The Federal Reserve and Treasury Department will also tell them how policymakers plan to publicly unveil the market-sensitive results, the source said, speaking anonymously because the discussions are private. The Treasury and Fed declined to comment on how many banks will be directed to raise more capital. The largest US banks have spent recent days making the case to regulators that they have the financial firepower to withstand a deeper recession, as Bank of America on Monday denied a report it was trying to raise capital of $10 billion. Some industry insiders worry the stress test results come at a time when the sector is starting to see positive effects from some surprisingly strong first-quarter earnings figures. “I think the great risk there is that you create some new uncertainty and concerns at the very time the financial condition of the banking industry is turning for the better,” Wayne Abernathy, an executive at the American Bankers Association and a former Treasury official said earlier on Monday. Banks found to be in need of more capital will have to embark on a recovery plan that could involve converting preferred stock, raising fresh private capital, or accepting government help - assistance which comes with close scrutiny from Congress that will certainly be unwelcome on Wall Street. Banks found to need capital will likely want to lay out capital-raising plans quickly to avoid being punished by panicky investors, although regulators won’t require them to put a plan on the table immediately. The emphasis will be placed on raising capital from within or private outlets. Pouring more public money into banks would put political pressure on President Barack Obama, whose administration is keen to avoid asking lawmakers to approve more bailout money for shortfalls that some analysts think may reach $150 billion. The Treasury could soon have more funds on hand to infuse into weaker institutions, as officials estimate that stronger banks will return at least $25 billion doled out from the government’s financial rescue fund. However, they want to ensure enough capital remains in the system as a whole. Policymakers are expected to soon lay out conditions banks would need to meet to return funds. White House spokesman Robert Gibbs on Monday said that the administration does not see a need to ask the US Congress for additional funds to support banks, and that the banks will be encouraged to seek extra funds through private sources. “I think everyone involved will be looking for banks to raise this through either private means or the selling of some assets that they have or that they control,” Gibbs said. He also said that the banks themselves will determine which steps they will take to raise capital. ”They’ll have a certain amount of time to put together a plan that meets ... the test of regulators to ensure that stability,” Gibbs told reporters. Some banks have complained that regulators were too harsh in their assessment over how much of a buffer they need to absorb future losses, and were underestimating profitability. Bot so bad? Bank of America Corp shares rose more than 19% after it denied a Financial Times report that it was working on plans to raise fresh funds to fill a $10 billion capital hole. The KBW Banks index, which includes about two dozen large banks including Bank of America, rose almost 15%. But investors remained on edge as Thursday’s deadline neared. The Associated Press reported that Wells Fargo was asked to raise more capital after its stress test. Citigroup has also been identified as a bank needing to raise its capital buffer. The firm will need to boost its common equity by up to $10 billion, a person familiar with the matter said Monday. Bank of America, Wells Fargo and JPMorgan did not immediately respond late on Monday to a request for comment. An official from Citigroup declined comment. Ratings agency Standard & Poor’s said it may lower the counterparty credit ratings of 22 financial firms - including Bank of America, Wells Fargo and Citigroup - based on results of its own stress testing. “These rating actions identify companies that we believe have at least a one-in-two likelihood of a ... downgrade within 90 days,” S&P said in a statement. ”That said, we believe that most rated institutions will be able to earn their way out of these credit losses during the cycle.” As analysts crunched their own numbers, at least one found that balance sheets may not be in as bad shape as feared. David Trone, a Fox-Pitt Kelton bank analyst, said he expected Thursday’s results to show a few banks were in need of more capital, although the shortfalls would probably be modest and “bank stocks won’t collapse.” The US Federal Reserve and other regulators have spent the past few weeks poring over holdings of the 19 largest banks, examining real estate and other assets that have lost significant value as the housing market crashed. The process aimed to gauge how banks would hold up if the economy were to continue its steep descent and home prices fell another 22% this year and 7% in 2010. The institutions undergoing stress tests include Citigroup Inc, Bank of America, Goldman Sachs Group Inc, JPMorgan Chase & Co, Morgan Stanley, MetLife Inc, Wells Fargo & Co, PNC Financial Services Group Inc, US Bancorp, Bank of NY Mellon Corp, SunTrust Banks Inc, State Street Corp, Capital One Financial Corp, BB&T Corp, Regions Financial Corp, American Express Co, Fifth Third Bancorp, KeyCorp and GMAC LLC. Source: World Business - Livemint.com | 5 May 2009 | 4:49 am About 10 US stress tested banks to need more capitalWashington: About 10 of the 19 largest US banks being stress tested will be instructed by regulators to raise more capital, according to a source familiar with official talks. The banks have been negotiating with their regulators about the depth of their capital needs, should the recession prove to be deeper and longer than anticipated. Markets have been anxiously anticipating the results, which will differentiate the strongest banks from those still expected to sustain considerable credit losses. The exact roster of banks needing to build their capital positions is still unclear. Banks are expected to be briefed on the official results on Tuesday. The Federal Reserve and Treasury Department will also tell them how policymakers plan to publicly unveil the market-sensitive results, the source said, speaking anonymously because the discussions are private. The Treasury and Fed declined to comment on how many banks will be directed to raise more capital. The largest US banks have spent recent days making the case to regulators that they have the financial firepower to withstand a deeper recession, as Bank of America on Monday denied a report it was trying to raise capital of $10 billion. Some industry insiders worry the stress test results come at a time when the sector is starting to see positive effects from some surprisingly strong first-quarter earnings figures. “I think the great risk there is that you create some new uncertainty and concerns at the very time the financial condition of the banking industry is turning for the better,” Wayne Abernathy, an executive at the American Bankers Association and a former Treasury official said earlier on Monday. Banks found to be in need of more capital will have to embark on a recovery plan that could involve converting preferred stock, raising fresh private capital, or accepting government help - assistance which comes with close scrutiny from Congress that will certainly be unwelcome on Wall Street. Banks found to need capital will likely want to lay out capital-raising plans quickly to avoid being punished by panicky investors, although regulators won’t require them to put a plan on the table immediately. The emphasis will be placed on raising capital from within or private outlets. Pouring more public money into banks would put political pressure on President Barack Obama, whose administration is keen to avoid asking lawmakers to approve more bailout money for shortfalls that some analysts think may reach $150 billion. The Treasury could soon have more funds on hand to infuse into weaker institutions, as officials estimate that stronger banks will return at least $25 billion doled out from the government’s financial rescue fund. However, they want to ensure enough capital remains in the system as a whole. Policymakers are expected to soon lay out conditions banks would need to meet to return funds. White House spokesman Robert Gibbs on Monday said that the administration does not see a need to ask the US Congress for additional funds to support banks, and that the banks will be encouraged to seek extra funds through private sources. “I think everyone involved will be looking for banks to raise this through either private means or the selling of some assets that they have or that they control,” Gibbs said. He also said that the banks themselves will determine which steps they will take to raise capital. ”They’ll have a certain amount of time to put together a plan that meets ... the test of regulators to ensure that stability,” Gibbs told reporters. Some banks have complained that regulators were too harsh in their assessment over how much of a buffer they need to absorb future losses, and were underestimating profitability. Bot so bad? Bank of America Corp shares rose more than 19% after it denied a Financial Times report that it was working on plans to raise fresh funds to fill a $10 billion capital hole. The KBW Banks index, which includes about two dozen large banks including Bank of America, rose almost 15%. But investors remained on edge as Thursday’s deadline neared. The Associated Press reported that Wells Fargo was asked to raise more capital after its stress test. Citigroup has also been identified as a bank needing to raise its capital buffer. The firm will need to boost its common equity by up to $10 billion, a person familiar with the matter said Monday. Bank of America, Wells Fargo and JPMorgan did not immediately respond late on Monday to a request for comment. An official from Citigroup declined comment. Ratings agency Standard & Poor’s said it may lower the counterparty credit ratings of 22 financial firms - including Bank of America, Wells Fargo and Citigroup - based on results of its own stress testing. “These rating actions identify companies that we believe have at least a one-in-two likelihood of a ... downgrade within 90 days,” S&P said in a statement. ”That said, we believe that most rated institutions will be able to earn their way out of these credit losses during the cycle.” As analysts crunched their own numbers, at least one found that balance sheets may not be in as bad shape as feared. David Trone, a Fox-Pitt Kelton bank analyst, said he expected Thursday’s results to show a few banks were in need of more capital, although the shortfalls would probably be modest and “bank stocks won’t collapse.” The US Federal Reserve and other regulators have spent the past few weeks poring over holdings of the 19 largest banks, examining real estate and other assets that have lost significant value as the housing market crashed. The process aimed to gauge how banks would hold up if the economy were to continue its steep descent and home prices fell another 22% this year and 7% in 2010. The institutions undergoing stress tests include Citigroup Inc, Bank of America, Goldman Sachs Group Inc, JPMorgan Chase & Co, Morgan Stanley, MetLife Inc, Wells Fargo & Co, PNC Financial Services Group Inc, US Bancorp, Bank of NY Mellon Corp, SunTrust Banks Inc, State Street Corp, Capital One Financial Corp, BB&T Corp, Regions Financial Corp, American Express Co, Fifth Third Bancorp, KeyCorp and GMAC LLC. Source: World Business - Livemint.com | 5 May 2009 | 4:49 am Rupee up 31 paise against dollar in early tradeThe Indian rupee appreciated by 31 paise against the dollar in early trade today due to increased capital inflows by funds on expectation that the domestic equity market will open in the positive zone.Source: India Business News | Business News - Times of India | 5 May 2009 | 4:43 am Open: Markets fall on profit-booking after Monday’s rallyMumbai: Indian shares fell in early deals on Tuesday, as investors locked in profits a day after the market jumped 6.4%, its biggest one-day gain in six months. By 9:56am, the 30-share BSE index was down 0.2% at 12,113.61 points after opening up 0.2%. Top vehicle maker Tata Motors fell 0.2%, a day after it raised a lower-than-expected Rs25 billion ($500 million) from consumer bookings for its Nano, the world’s cheapest car. The 50-share NSE index was down 0.5% at 3,635.50. Source: Home - Livemint.com | 5 May 2009 | 4:37 am About 10 U.S. stress test banks to need more capitalWASHINGTON (Reuters) - About 10 of the 19 largest U.S. banks being stress tested will be instructed by regulators to raise more capital, according to a source familiar with official talks.Source: Reuters: Money News | 5 May 2009 | 4:07 am Obama’s US recovery plan seems anti-BangaloreWashington: ‘Say no to Bangalore and yes to Buffalo,’ seems to be the latest mantra of US President Barack Obama as he struggles to bring the ailing American economy back on track. Meeting one of his major election promises, Obama on Monday announced end to years of tax incentives to those US companies which create jobs overseas in places like Bangalore. Instead, the incentives would now go to those creating jobs inside the US, in places like the Buffalo city - bordering Canada in upstate New York. “We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits,” Obama said at White House announcing the international tax policy reform. “We will use the savings to give tax cuts to companies that are investing in research and development here at home so that we can jump start job creation, foster innovation, and enhance America’s competitiveness,” Obama said. The new tax laws are expected to majorly hit countries like India, China and Philippines, where US companies have been outsourcing their work. Hitting hard at the current taxation system, to which he had been very critical since his election days and as a Senator, Obama said: “It’s a tax code that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York.” Reiterating his campaign rhetoric, the US President said: “The way we make our businesses competitive is not to reward American companies operating overseas with a roughly two per cent tax rate on foreign profits; a rate that costs taxpayers tens of billions of dollars a year.” Obama said he wants US companies to remain most competitive in the world. “But the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens,” he argued. Announcing a set of proposals to crack down on illegal overseas tax evasion, close loopholes, and make it more profitable for companies to create jobs here in the US, Obama said his series of tax reforms would save $210 billion in the next 10 years. Under new measures, American companies would also have to disclose before the IRS details of the income American citizens are generating in overseas accounts. “For years, we’ve talked about stopping Americans from illegally hiding their money overseas, and getting tough with the financial institutions that let them get away with it,” he said. Source: Home - Livemint.com | 5 May 2009 | 3:47 am Sensex moves past 12,000 after a gap of 7 monthsMumbai, May 4 The coincidence of a host of factors sent the domestic indices skyrocketing on Monday.Source: Business Line - Home Page | 5 May 2009 | 12:00 am Indian Hotels Company (Rs 53.70): BuyWe recommend a buy on the Indian Hotels Company stock from a short-term trading perspective. After recording a 52-week low at Rs 34 on March 12, the stock began to trend up. It has been on a medium-term uptrend since the March low. AfterSource: Business Line - Home Page | 5 May 2009 | 12:00 am FIPB asks Barclays Investments to seek RBI views on new bizThe Foreign Investment Promotion Board (FIPB) has asked Barclays Investments & Loans (BILL) to seek the Reserve Bank of India’s views on whether or not certain proposed activities such as collections and recovery services, estate andSource: Business Line - Home Page | 5 May 2009 | 12:00 am The international transmission of fragilityThe April 2009 edition of the IMF’s Global Financial Stability Report is categorical. Global financial stability has deteriorated further since its last assessments in October and January, with conditions worsening more in emerging markets inSource: Business Line - Home Page | 5 May 2009 | 12:00 am HDFC net down at Rs 733 cr in Q4Mumbai, May 4 Housing Development Finance Corporation’s net profit fell by 4.5 per cent to Rs 733 crore in the fourth quarter of 2008-09, as against Rs 768 crore in the corresponding period lastSource: Business Line - Home Page | 5 May 2009 | 12:00 am Day Trading GuideAvoid trading in DLF as the near-term trend is sideways. The near-term outlook for ICICI Bank and SBI are bullish. We recommend a buy in these two counters. In the last trading session,Source: Business Line - Home Page | 5 May 2009 | 12:00 am Cement cos’ realisation marginally up sequentiallyMumbai, May 4 Cement companies price realisation was almost flat in the fourth quarter of 2008-09 on a sequential basis despite cement prices rising in the wake of strongSource: Business Line - Home Page | 5 May 2009 | 12:00 am No action taken by Govt in 5 years on money laundering issue: PILNew Delhi, May 4 The Supreme Court on Monday allowed the former Union Law Minister, Mr Ram Jethmalani, and other petitioners in the PIL (public interest litigation) on illicit funds stashed in foreign banks to file a “comprehensiveSource: Business Line - Home Page | 5 May 2009 | 12:00 am Nano gets over 2 lakh bookingsMumbai, May 4 The Tata Nano has drawn 2.03 lakh bookings valued at nearly Rs 2,500 crore, according to a Tata Motors release issued here on Monday.Source: Business Line - Home Page | 5 May 2009 | 12:00 am Overseas investors drive volumes to record levelsBL Research Bureau The meteoric rise in Sensex witnessed over the past month has been accompanied by a sharp increase in trading activity.Source: Business Line - Home Page | 5 May 2009 | 12:00 am It's Sensex 12K once moreThe rise was driven by improving global economic data and continuing investments by foreign investors.Source: Daily News & Analysis: Money News | 4 May 2009 | 10:28 pm FIIs pump it in, local fundmen waryIn the last four sessions, foreign institutional investors have pumped in three-quarters of a billion dollars into Indian equities.Source: Daily News & Analysis: Money News | 4 May 2009 | 10:23 pm Banks bristle over unsold forms, want co to buy 'em backPrior to the launch of the Nano, Tata Motors had sold booking application forms to a sheaf of banks by the heap @ Rs 300 each.Source: Daily News & Analysis: Money News | 4 May 2009 | 10:22 pm Sobha to raise Rs 750 crSobha Developers is looking to raise up to Rs 750 crore to retire part of its Rs 1,850 crore debt.Source: Daily News & Analysis: Money News | 4 May 2009 | 10:21 pm Tata Nano garners 2.03 lakh bookingsThe celebrated Tata Nano, launched on March 23 amid much frenzy and hype, has not exactly set the booking counters on fire.Source: Daily News & Analysis: Money News | 4 May 2009 | 10:19 pm 'Consumers will live their lives across 3 primary screens'Ravi Venkatesan, chairman of Microsoft India, speaks about how Microsoft is reinventing itself to address the needs of more and more mobile denizens.Source: Daily News & Analysis: Money News | 4 May 2009 | 10:19 pm Full-service airlines just not able to pay fuel duesPlunging domestic air traffic and stiff competition have forced full-service carriers to drop their fares to the levels of budget airlines, severely impairing their cash flows.Source: Daily News & Analysis: Money News | 4 May 2009 | 10:16 pm Vroom! India, China economic engines rev upThe economic engines of both India and China roared back into the expansionary zone in April, raising hopes of a sustained recovery in Asia's two largest emerging economies.Source: Daily News & Analysis: Money News | 4 May 2009 | 10:15 pm Sunset kitty's best built with New Pension SchemeThe New Pension Scheme (NPS), which kicked off on May 1, might just be the wealth-builder you have always wanted for your retirement corpus.Source: Daily News & Analysis: Money News | 4 May 2009 | 10:13 pm India's internet growth gives Hollywood honchos the jittersBroadband subscriber numbers in India are being closely watched in the US.Source: Daily News & Analysis: Money News | 4 May 2009 | 10:12 pm 2.03L Nano bookings below expectationsBelying expectations, small wonder Nano got a lukewarm response with Tata Motors receiving over 2.03 lakh bookings, against around 5 lakh estimated by industry analysts.Source: India Business News | Business News - Times of India | 4 May 2009 | 8:52 pm Don\'t see case for Nimesh Kampani\'s custody: CounselNimesh Kampani, an indpendent director of Nagarjuna Finance, quit his post in April 1999. In December 1999, the company was to pay back public deposits of about Rs 100 crore but sought an extension till 2002 but defaulted. Six years later, the Hyderabad police issued an arrest warrant and filed a case for criminal breach of trust and cheating.Source: Moneycontrol Top Headlines | 4 May 2009 | 8:17 pm Rally spells gains for MFsThe market rally has generated handsome gains for MFs with almost one in every three equity-oriented funds delivering double digit returns.Source: India Business News | Business News - Times of India | 4 May 2009 | 7:35 pm Realty, auto not active playersMonday's stock market rally did not see aggressive participation from sectors like real estate, auto, PSU companies, healthcare, power, consumer durables and oil & gas.Source: India Business News | Business News - Times of India | 4 May 2009 | 7:34 pm Rakesh Mohan leaves RBIReserve Bank of India deputy governor Rakesh Mohan on Monday put in his papers to take up a teaching assignment at the Stanford University in the US.Source: India Business News | Business News - Times of India | 4 May 2009 | 7:34 pm 275 stocks see 100% riseIndicating the huge buyer interest in equities, the rally on Monday saw over 275 stocks witnessing shocking volume (more than 100%) rise in a single session.Source: India Business News | Business News - Times of India | 4 May 2009 | 7:32 pm The DRDO's most unusual labDuring the Second World War, Field Marshall William Slim, commander of the 14th Army in Burma, discovered that the anopheles mosquito was causing more casualties to his men than the Japanese. Ruthlessly practical, he decreed that catching malaria was a disciplinary offence, punishable by imprisonment in a military prison. Todays Indian Army, still serving in the mosquito-ridden jungles of the northeast, continues Slims dictat: sleeves must be rolled down after sunset; mosquito nets are compulsory at night.Source: Business Standard | Front Page Headlines | 4 May 2009 | 7:25 pm HDFC net profit up on rising loan demandMumbai: India’s oldest mortgage lender, Housing Development Finance Corp. Ltd (HDFC), on Monday reported fiscal fourth-quarter earnings that signalled the worst may be finally over for the struggling real estate market. HDFC’s profit before exceptional items and sale of investments rose 20.23% to Rs732.89 crore in the three months ended 31 March, from Rs609.57 crore a year earlier, the home lender said. For the full year, net profit rose by 23.21% to Rs2,258.83 crore, from Rs1,834.55 crore. HDFC, a bellwether for real estate demand in the country, bounced back from a 15.7% earnings drop in the December quarter when the property market was stricken by slumping demand in a slowing economy and indebted developers were starved for cash. Demand seems to be reviving with a drop in property prices and the cost of borrowing. “Every month we are seeing an increase in enquiries and demand for loans. The drop in demand for home loans is a myth created by the media,” said Keki Mistry, HDFC vice-chairman and managing director. The lender’s loan disbursements for the quarter ended March increased by 18% and for the full year rose 21%. Housing prices have dropped between 20% and 30% in pockets of major cities and mortgage lenders have been paring interest rates in tandem with the Reserve Bank of India’s policy rate cuts to boost demand. The central bank’s policy rate has declined to 3.25% now from 9% in October. HDFC shares surged Rs226.10, or 13.06%, to close at Rs1,957.60 on the Bombay Stock Exchange compared with a gain of 6.41% in the Sensex, the benchmark equity index, to 12,134.75 points. Taking into account a one-time gain in the year-ago quarter, the mortgage lender’s net profit dipped 4.52% in the quarter ended 31 March and 6.3% in the full year. Profit in the year-earlier quarter included a gain of Rs202 crore from the sale of a 26% stake in HDFC General Insurance Co. to a unit of reinsurer Munich Re. “The profit numbers exceeded market expectations. Its operating expenses have come down and its cost of funds is likely to be lower in the coming quarters,” said a banking analyst at a Mumbai-based brokerage who did not want to be identified because he is not the firm’s official spokesperson. HDFC beat a forecast net profit of Rs640 crore in a Reuters poll of 10 analysts. The lender’s spread between what it earned on loans and paid for funds for the year improved marginally to 2.21% percentage points from 2.19% percentage points in the year prior. “With increased competition from public sector banks, market share gains for HDFC look challenging. We expect HDFC to grow in line with the market in individual home loan segment at about 16% annually,” said a recent research report by JM Financial Institutional Securities Pvt. Ltd. India’s commercial banks posted 7.5% growth in home loans in the first 11 months of fiscal 2009, according to Reserve Bank of India data. The banking sector’s loan disbursements to the real estate sector during the period, however, rose by 61.4%, from 26.7% in the corresponding period of the previous year. Gross non-performing loans at the institution as on 31 March stood at Rs701.55 crore. This is equivalent to 0.81% of the loan portfolio, down from 0.84% in the previous year. These include loans on which borrowers had not paid principal or interest for a quarter. Bloomberg contributed to this story. anita.b@livemint.com Source: Home - Livemint.com | 4 May 2009 | 7:24 pm Maruti Suzuki plans to launch 660 cc carConcept car Kizashi may also see India debut.Source: Business Standard | Front Page Headlines | 4 May 2009 | 7:23 pm Sensex up 731 pts on global revival hopesBut a correction could be imminent, say market players.Source: Business Standard | Front Page Headlines | 4 May 2009 | 7:19 pm Nano bookings fetch Tata Motors Rs2,500 crNew Delhi: Tata Motors Ltd said on Monday it has got at least 203,000 bookings for its Rs1 lakh car Nano, garnering nearly Rs2,500 crore. The bookings were double the allotted number of cars for delivery. Fully paid bookings were nearly Rs2,500 crore, the company said. Out of the total bookings, 70% were financed and the rest were on application through cash payment. The bookings for Nano started on 9 April and closed on 29 April. Source: Home - Livemint.com | 4 May 2009 | 7:05 pm Manufacturing sector begins to expand The ABN Amro India Manufacturing Purchasing Managers’ Index (PMI) stood at 53.3 in April, the first month of expansion since last October. A reading above 50 signifies expansion. The effect on the stock market was immediate, with the benchmark Sensex index on the Bombay Stock Exchange vaulting 6.4% on Monday. The PMI reading confirms the multitude of indicators that have been, over the last few months, flashing green—indicators such as cement, steel and auto sales and a resumption of credit growth. The PMI readings from January this year had been increasing from the lows of December, but April is the first month it has gone above 50. Also See back on Track (Graphic) The new orders sub-index was at 54.9 and this expansion will translate into output growth in the future. Interestingly, even the new export orders index showed expansion at 50.7, the first time since September. Fuller order books led to an increase in the stock of purchases and to higher finished goods stock. There are, of course, some concerns as well. One, the expansion of new export orders is still weak. Next, some of the firms surveyed commented on delays in receiving client payments. Others noted that stock levels had been raised in anticipation of higher sales that never materialized. And finally, there’s a disconcerting trend of higher input prices. The input prices sub-index went up to 52.4 in April, the survey showing that more expensive raw materials (partly due to unfavourable exchange rates) were the predominant drivers of inflation. The output prices sub-index, however, remained below 50, indicating pressure on margins, as ABN Amro senior economist Gaurav Kapur said. On Monday, the CLSA Manufacturing PMI for China also crossed into expansionary territory, coming in at 50.1 in April. China’s official PMI index had already crossed above 50 in March and improved further in April. Interestingly, just like the Indian PMI, input prices for the official China PMI rose above 50 in April, as commodity prices rose as a result of the stimulus being administered. For most other economies, the manufacturing PMI continued to contract in April, although the pace of contraction has been slowing. On Monday, the final Eurozone PMI for April came in at 36.8, deep in recessionary territory but still a six-month high. That disparity between the performance of the developed and emerging markets is reflected in the performance of their stock markets. In the three months to 1 May, the MSCI US index was up 19.2%, while the MSCI Emerging Markets index was up 23.36%. The MSCI China index was up 26.46% over the same period, and the MSCI India index higher by 31.16%. To be sure, there are strong headwinds ahead, including the election results, and the market may have run up too rapidly. But the PMI data show a robust fundamental basis for the current market rally. Graphics by Ahmed Raza Khan / Mint Write to us at marktomarket@livemint.com Source: Home - Livemint.com | 4 May 2009 | 6:02 pm Demand Curve | How multiple-income family types differ across citiesHouseholds in India can be classified into three types: nuclear families where one married couple lives with, in some cases, unmarried siblings; extended families which have more than one married couple from different generations; and joint families where more than one married couple of the same generation live together, which are essentially multi-income families. Also See Changing Profile (Graphic) That the joint family system is out of mode in urban India is clear from the fact that only 8% of the households belong to this category in India’s top 112 cities. Nuclear households dominate the urban landscape with almost 70% of households falling in this category, while extended families take up the remaining 23%, a sizeable share. This reflects, to some extent, the lack of housing capacity to to accommodate nuclear families, a status that upwardly mobile urban Indians seem to aspire to. Looking at the largest Indian cities, the alpha cities and the cities in the south have a larger proportion of nuclear families, while those in the west have a greater tendency towards more extended and joint family setups. Why is that the case? There are likely to be economic and socio-cultural reasons that have not been studied in great detail. But the patterns are clear. Households in the south are predominantly nuclear, have fewer children and tend to have higher incomes than their peers in the north and east. Resource allocation within the households, therefore, takes on a very different character. The western part of India has also benefited from greater economic growth. However, a significantly larger share of households continue to live in extended and joint families. Decision-making in these households tends to be different, with a greater number of people having a say in major purchases. At the other end, spur-of-the-moment purchase decisions will be less likely, especially in durables that the household members share in the larger and more complex households of western India. At the same time, per capita expenditure in larger households tend to be lower, leading to greater possibility of savings or purchase of luxuries, depending upon household preferences. As India and Indian consumers change rapidly, there is one churn that has already played out in urban India. The joint family is dead and the extended family is dying. It is now the era of nuclear families. Demand Curve is a weekly column by research firm Indicus Analytics Pvt. Ltd on consumer trends and markets. Your comments are welcome at demandcurve@livemint.com Graphics by Ahmed Raza Khan / Mint Source: Home - Livemint.com | 4 May 2009 | 5:51 pm Shree Cement April sales up 28% to 7.88 lakh tonnesCement companies have announced their April cement sales numbers. ACC sold 1.8 million tonnes of cement in the month of April, which was 4% more as compared to 1.73 million tonnes (MT) in the same month of last year. The company\'s April cement output increased to 1.84 MT versus 1.80 MT, up 2% (YoY).Source: Moneycontrol Top Headlines | 4 May 2009 | 5:19 pm Sterlite may face $2.6 bn suit if Asarco bid failsNew York: NRI billionaire Anil Agarwal-led Sterlite Industries faces a potential $2.6 billion lawsuit if it loses out in the race to acquire US copper producer Asarco to the target firm’s parent company Grupo Mexico. Asarco’s independent Board and Sterlite sought the approval of certain conditions under which Asarco would grant a release from the potential $2.6 billion lawsuit to be brought against Sterlite for having breached the original purchase agreement to buy Asarco’s assets. However, Judge Schmidt (of bankruptcy court) ruled that such release will not take effect if it is the Grupo Mexico Reorganization Plan the one that is eventually confirmed and approved, in which case Asarco, under the control of Grupo Mexico, would be able to pursue the aforementioned suit against Sterlite, Grupo Mexico said. The bankruptcy court of Texas in the US has given initial nod to Sterlite Industries’ $1.7 billion bid to acquire Asarco, of which cash forms $1.1 billion. This has been rivalled by Grupo Mexico’s all cash $1.3 billion offer. Both the parties can hike the bid if the need be in their respective reorganization plans for Asarco. Calls and messages sent to Vedanta officials remained unanswered till the filing of the report. Source: World Business - Livemint.com | 4 May 2009 | 1:35 pm
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