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SEBI allows FIIs\' open bidding for gilts on stock exchangesSecurities and Exchange Board of India (SEBI) has allowed FIIs open bidding for gilts on stock exchanges. Unused FII investments in gilts to be up for open bidding.Source: Moneycontrol Top Headlines | 12 May 2009 | 6:08 pm Tata Steel launches new flat product brand GalvanoGalvano, a first in its category brand, was launched at a gala function that was held at the Taj President here today. The product was formally launched by MR ANAND SEN, Vice President (TQM and Flat Products), Tata Steel. The event was attended by select customers of galvanized steel products from the western region.Source: Moneycontrol Top Headlines | 12 May 2009 | 4:38 pm Camlin to foray into preschool education arenaCamlin is diversifying its business plans. From providing stationary products, it is foraying into preschools. Dilip Dandekar, CMD of Camlin, said,\" We will begin with our first model school in Andheri, Mumbai.\" He also said that this move is experimental and that the success will depend on first year of experiment.Source: Moneycontrol Top Headlines | 12 May 2009 | 3:37 pm Are Development Credit Bank\'s bad days over?DCB was one bank which has had a bad time in the last 56 months. There were probably bad loans. They had to pay higher costs for their deposits but now the bank has a new MD, Murli Natarajan, who is a veteran from Standard Chartered. He has clearly said that DCB is not for sale.Source: Moneycontrol Top Headlines | 12 May 2009 | 3:30 pm See turnaround based on JuneJuly bookings: Viceroy HotelsP Prabhakar Reddy, MD, Viceroy Hotels, said the last three months were very dismal for the hotel industry. He expects a turnaround in the coming months going by enquiries and bookings seen for June and July.Source: Moneycontrol Top Headlines | 12 May 2009 | 3:17 pm KEC International wins new orders worth Rs 111crKEC International Ltd. (KEC), a global leader in the power transmission EPC business and an RPG group company, has won three orders totaling Rs. 111 crore in the Middle East, Australia and India.Source: Moneycontrol Top Headlines | 12 May 2009 | 3:13 pm Co may review layoff situation: MicrosoftSteve Ballmer, CEO, Microsoft has said that the company may review the layoff situation depending on conditions of the US economy. He stated that he has nothing to say on rumours of buying SAP.Source: Moneycontrol Top Headlines | 12 May 2009 | 3:07 pm Cap equipment to see degrowth for 23 months: ThermaxIndustrial production numbers for March has come in at 2.3% as against 0.7% in February. The capital goods output contracted by 8.2%. MS Unnikrishnan, MD, Thermax, said the drop in capital equipment sector was because of the low order intake during the months of October and November.Source: Moneycontrol Top Headlines | 12 May 2009 | 3:00 pm See chequered industrial output nos in 2009: Rahul BajajRahul Bajaj, Chairman, Bajaj Auto, said industrial production would be chequered in 2009. \"It will be based upon government stability, its composition and how stable it is. It will also depend on monsoons and exports.\"Source: Moneycontrol Top Headlines | 12 May 2009 | 2:15 pm Asian Paints plans 3-bln-rupee capex in FY10MUMBAI (Reuters) - India's largest paint maker, Asian Paints, has planned capital expenditure of 3 billion rupees in 2009/10, a top official said on Tuesday.Source: Reuters: Money News | 12 May 2009 | 2:12 pm India's Suzlon founders selling 2 pct stake -sources - Reuters
Source: Google News India - Business | 12 May 2009 | 2:10 pm Factory output slides sharply as exports fallNEW DELHI (Reuters) - India's industrial output fell at its steepest annual pace in at least 14 years in March, leaving the door open for further interest rate cuts by the Reserve Bank, but analysts said the economy was still set for recovery from late 2009.Source: Reuters: Money News | 12 May 2009 | 2:09 pm Drop in foreign tourists arrival in AprilDespite the government's 'Visit India 2009 campaign', the arrival of foreign tourists declined in April this year.Source: India Business News | Business News - Times of India | 12 May 2009 | 2:09 pm IDFC PE to swap equity in Delhi Airport for GMR Infra stake - Reuters India
Source: Google News India - Business | 12 May 2009 | 2:08 pm PNB has scope for more rate cuts - chairmanNEW DELHI (Reuters) - State-run Punjab National Bank has room for further reduction in its lending rate, Chairman K.C. Chakrabarty said on Tuesday.Source: Reuters: Money News | 12 May 2009 | 2:01 pm INTERVIEW - Suzlon China output nears 70-80 pct capacityBEIJING (Reuters) - Suzlon Energy Ltd, the world's fifth-largest wind turbine maker, said on Tuesday that its 600 megawatt (MW) factory in China would reach 70-80 percent of capacity within the next year.Source: Reuters: Money News | 12 May 2009 | 1:53 pm March industrial production down 2.3% yoy - India Infoline.com
Source: Google News India - Business | 12 May 2009 | 1:45 pm Sensex reclaims 12K; market bets on BJP winMumbai: Indian shares snapped a two-day fall and rallied 4.1% on Tuesday to their highest close in more than seven months as investors began betting the Bharatiya Janata Party (BJP)-led group, which is seen as market friendly, would win national elections. Traders said the market was boosted by hopes the next government would not need the support of communists, who had stalled reforms when they allied with the ruling Congress party-led coalition for most of its five-year term. “There is speculation that the election will result in the formation of a stable government that excludes the left,” said TS Harihar, senior vice president at ICICI Securities. The BJP-led group, which suffered a shock election defeat in 2004 and was trailing for weeks in the month-long elections, may now be gaining momentum against a fumbling ruling Congress party coalition thanks to some savvy alliance building. Exit polls will be announced after the last round of voting ends on Wednesday and the election results are due on Saturday. The process of coalition formation following the election results could be chaotic, Credit Suisse analyst Nilesh Jasani said in a note. “The only thing predictable in such events is the unpredictability,” he said. The 30-share BSE index rose 4.07%, or 475.04 points, to 12,158.03, its highest close since 3 October. All but one of its components advanced, after choppy trading through the first half of the session, with the benchmark falling as much as 0.5% at one stage. Energy giant Reliance Industries and leading lenders such as State Bank of India , ICICI Bank and HDFC Bank led the gains. The BSE index, which had fallen more than 3.5% in the previous two sessions, has jumped 51% since hitting a 2009 low in early March and is up 26% this year after slumping 52% in 2008. Analysts said the market would likely see more volatility when exit polls are released. “Short-term investors will trade on the exit polls. Those with a longer-term view will wait for the actual results to come out,” Anand Shah, head of equities at Canara Robeco Mutual Fund, said. Traders said investors shrugged off weak economic data. Industrial output fell at its steepest annual pace in at least 14 years in March, leaving the door open for further interest rate cuts by the central bank. Factory output in March fell 2.3% from a year earlier, the third fall in the past four months and much sharper than market expectations of a 0.5% decline. Analysts said the economy was still set for recovery from late 2009. “We still believe the economy is set for a rebound in the second half of the 2009-10 fiscal year due to fundamental reasons such as fiscal stimulus packages, monetary actions, extra oil and gas output later this year and falling commodity prices and robust domestic demand, ” said Robert Prior-Wandesforde, Senior Asian Economist at HSBC in Singapore. Reliance Industries, which has the biggest weight in the main index, rose 5.3% to Rs1,958.30, its best close in almost 7 months. Private-sector lender ICICI Bank gained 6.7% to Rs558.65, while rival HDFC Bank climbed 3.9% to Rs1,189.70. Government-run State Bank of India advanced 2.8% to Rs1,295.45. No. 2 outsourcer Infosys rose 5.5% to Rs1,597.95. In the broader section, gainers led losers 1,410 to 1,106 on relatively moderate volume of 423 million shares. The 50-share NSE index rose 3.6% to 3,681.10. Mid-session Indian shares seesawed on Tuesday as worries about a split verdict when general election results are announced on 16 May dented investor confidence. The possibility of a potentially unstable coalition of regional parties coming to power if neither the ruling Congress party coalition or the main opposition Bharatiya Janata Party-led group win a clear majority kept investors wary. Engineering and construction firm Larsen & Toubro and Tata Steel fell on profit-taking, while outsourcer Infosys Technologies and private-sector lenders ICICI Bank and HDFC Bank rose. By 11:05 am, the 30-share BSE index was up 0.4% at 11,735,21 points, with advancers and losers evenly matched, after falling as much as 0.5%. “This is a typical move before the election results are announced, where there is buying when the market goes lower and profit booking when the market goes higher,” Deven Choksey, chief executive of KR Choksey Shares & Securities, said. “Traders are being cautious.” The benchmark index had fallen in the previous two sessions after rising 50% since early March. Trading is expected to be choppy through the week, till there is more clarity on the political front. Investors are awaiting industrial output data, expected at about noon (0630 GMT), which is likely to have shrunk in March from a year earlier, its third fall in four months, as the global economic slowdown hit exports and domestic demand remained soft, a Reuters poll showed. Larsen & Toubro shed 2.4% to Rs939.95, while Tata Steel fell 3.9% to Rs261.45. No. 2 outsourcer Infosys rose 2.1% to Rs1,546.50. ICICI Bank climbed 0.4% to Rs525.30, while HDFC Bank advanced 1% to Rs1,156. In the broader section, losers led gainers 1.5 to 1 on relatively light volume on 99.2 million shares. The 50-share NSE index was up 0.4 at 3,569.15. PTI Adds: From Asian indices, Taiwan was down by 3.36%, Singapore by 1.25%, Japan by 1.20%, South Korea by 0.69% and Hong Kong by 0.62% while China was up by 0.18 per cent in their morning trade. Opening The BSE Sensex fell in early deals on Tuesday, as investor confidence was weighed down by concerns national election results due on the weekend may produce a fractured mandate. At 9:57 am, the 30-share BSE index was down 0.2% at 11,657.59 points, with 19 stocks declining. The 50-share NSE index was down 0.3% at 3,544.55. The market had fallen on Monday for a second day after rising 50% since early March. Investors are worried neither the ruling Congress party coalition or the main opposition Bharatiya Janata Party-led group will win a clear majority, leaving the possibility of a loose coalition of regional parties. Source: Home - Livemint.com | 12 May 2009 | 1:40 pm Maersk swings to Q1 loss, warns year lossCopenhagen: Oil and shipping group A.P. Moller-Maersk swung to a bigger net loss than expected in the first quarter and warned that the full year might end in deficit too. The owner of the world’s biggest shipping container business posted a net loss of 2.13 billion crowns ($390 million) for the first three months, having made a profit of 5.03 billion crowns in the same period last year, as the dive in global trade and freight rates hit shipping and low oil prices hit its oil business even harder than expected. The average forecast given by analysts in a Reuters poll had been for a loss of 642 million crowns. However, after an initial fall of 3% Maersk shares were up 3% at 34,200 crowns by 1307 GMT. The Danish group, which before 2008 reported results only every half-year, has not reported a net loss at least since World War Two, a spokesman said. The company, which owns shipper Maersk Line and pumps oil from the North Sea, Qatar, Algeria and Kazakhstan, said it would also make a second-quarter loss. “The increase in new (ship) tonnage caused the situation to deteriorate and the container activities realised a negative and unsatisfactory result for the first quarter of 2009,” Maersk said. Besides its core businesses, Maersk also controls a port operator, a retail group, a shipyard and industrial operations. ING analyst Axel Funhoff said in a note the container shipping unit’s loss of $559 million was larger than expected. “We had expected a loss of $379 million,” he said. “Also the APM Terminals, Tanker, and Oil & Gas business disappointed.” Maersk Line transported 14% less containers year-on-year in the quarter, at on average 24% lower freigh rates. The firm’s volumes on the world’s biggest trade route, between Asia and Europe, were down 8%, with rates down 44%. Maersk’s chief executive, Nils Smedegaard Andersen, told Reuters he expected overcapacity on the container and tanker shipping markets to last several years. Analysts have said the container market may start recovering this year, after hitting bottom in the first quarter, due in part to the economic stimulus packages that have been implemented around the world and also to less overcapacity. Maersk Line last year accounted for 15% of global container shipping. It then made up half of Maersk’s group revenue but only 6% of net profit, while the oil and gas unit accounted for one fifth of sales but two thirds of profits. Maersk said oil and gas production was up 18% year-on-year, primarily due to a higher share of production in Qatar, but lower crude oil prices had slammed the result for its oil and gas operations in the quarter. Net profit at the division was of $256 million. Singapore’s Neptune Orient Lines, the world’s seventh biggest container shipper, also reported a worse than expected quarterly loss on Tuesday, amid slumping volumes. Maersk said the outlook for container freight rates, transported volumes, the dollar exchange rate and oil prices this year was very uncertain and it couldn’t rule out a full-year net loss. Maersk said crude oil prices would probably be slightly higher in the rest of the year than in the first quarter. It also expected a less steep decline in container freight volumes to reduce the decline in freight rates. “These conditions, combined with an increased effect from cost savings, are expected to improve the group’s earnings in the second half of 2009,” the company said. “The fact that they even talk about a full-year loss is much worse than what I had seen coming,” said Jacob Pedersen, analyst at Sydbank. Quarterly group sales fell to 63.0 billion crowns from 71.8 billion, versus a forecast 59.5 billion. Source: LatestNews-Home - Livemint.com | 12 May 2009 | 1:39 pm High capital adequacy best shock absorber in tough times: KMB - Economic Times
Source: Google News India - Business | 12 May 2009 | 1:34 pm Titan plans 50 stores each of World of Titan and FastrackWatch maker Titan Industries is planning to open 50 more stores of its 'World of Titan' retail outlets, besides 50 standalone stores of Fastrack.Source: Daily News & Analysis: Money News | 12 May 2009 | 1:32 pm Ranbaxy write-down hits Daiichi showingTokyo: Japan’s third biggest drug maker, Daiichi Sankyo Co. Ltd, posted its second straight quarterly deficit on losses at its Indian unit Ranbaxy Laboratories Ltd. The net loss was 38 billion yen (Rs1,938 crore today) in the fourth quarter (Q4) ended 31 March, compared with a profit of 1.2 billion yen a year earlier, the Tokyo-based maker of the Benicar hypertension pill said on Tuesday.  Problems galore: Daiichi Sankyo chief executive Takashi Shoda. Harikrishna Katragadda / Mint Earnings this year will be hurt by Ranbaxy, which last month forecast it will have a loss in 2009. Daiichi Sankyo needs to restore investor confidence after the stock dropped 42% since the company said in June it will pay about $5 billion (Rs24,800 crore today) for 64% of Ranbaxy, whose operations have been plagued by a US import ban and investigation. “The Ranbaxy takeover has been a failure so far,” said Mitsushige Akino, who oversees about $615 million at Ichiyoshi Investment Management Co. Ltd in Tokyo. “It doesn’t have a solution to its problems yet and is losing its market capitalization.” Daiichi Sankyo wrote down 351.3 billion yen in valuation losses for its stake in Ranbaxy for the full year, based on the stock’s price as of 31 March. The company forecast it will post net income of 40 billion yen for the year ended 31 March, missing analysts’ expectations of 77.5 billion yen, according to the median of 14 estimates compiled by Bloomberg. Revenue will rise 14% to 960 billion yen in the 12-month period, and operating profit will climb 8.7% to 96 billion yen, Daiichi Sankyo said. Daiichi Sankyo said it plans to pay a dividend of 60 yen per share in the current 12-month period, 25% less than a year ago. Daiichi Sankyo lost 9.3% to close at 1,653 yen on the Tokyo Stock Exchange, the largest drop since 26 February. Ranbaxy gained 1.62% to close at Rs175.65 on the Bombay Stock Exchange. The stock has plunged 76% from the Rs737 per share that the Japanese drug maker paid for its stake. Q4 sales at Daiichi Sankyo rose 16% to 215 billion yen on revenue from Ranbaxy, India’s largest drug maker. The Japanese company has said it plans to record Ranbaxy’s earnings with a quarter’s lag. Daiichi Sankyo had an operating loss, or sales minus the cost of goods sold and administrative expenses, of 9.7 billion yen after booking goodwill costs for the Indian acquisition. feedback@livemint.com Source: Home - Livemint.com | 12 May 2009 | 1:29 pm Morgan Stanley MF launches debt funds in IndiaMorgan Stanley Investment Management (MSIM), announced the launch of a fixed income product range in India with two new funds.Source: Daily News & Analysis: Money News | 12 May 2009 | 1:28 pm DDA manages 12% discount on flats bought from MGF - Zee News
Source: Google News India - Business | 12 May 2009 | 1:27 pm Asian Paints Q4 net up 7 per cent at Rs 101.14 crPaint manufacturer Asian Paints announced its net profit for the fourth quarter ended March 31 rose by 7 per cent to Rs 101.14 crore, over the same period last year.Source: Daily News & Analysis: Money News | 12 May 2009 | 1:27 pm Kotak Mahindra Bank Q4 net dips 12 pc at Rs 210.66 crPrivate sector lender Kotak Mahindra Bank said on Tuesday its consolidated net profit for the fourth quarter of 2008-09 declined by 12.26 per cent.Source: Daily News & Analysis: Money News | 12 May 2009 | 1:24 pm Slowdown, political uncertainty hit infrastructureMUMBAI (Reuters) - One of India's most ambitious infrastructure projects, an $325 million eight-lane bridge running through the sea off Mumbai, opens next month after negotiating a maze of bureaucracy, courts and street protests.Source: Reuters: Money News | 12 May 2009 | 1:20 pm Rupee recovers by 20 paise vs dollar on rally in equitiesIn active trade at the Interbank Foreign Exchange market, the domestic unit opened sharply lower at 49.70/71 per dollar from its previous close of 49.50/52.Source: India Business News | Business News - Times of India | 12 May 2009 | 1:18 pm Bond yields up ahead of auctions, poll resultsMumbai: Bond yields rose on Tuesday as traders sold debt ahead of auctions and election results, and looked past dismal factory output data on a view that economic conditions will improve in coming months. The benchmark 10-year bond yield ended at 6.41%, seven basis points above its previous close of 6.34% but contained within a rough 6.15-6.45% range traded over the past three weeks. It rose as high as 6.42% in the day. Volumes were a normal Rs72.05 billion ($1.5 billion) on the Reserve Bank of India’s trading platform, with the 2019 bond being the most actively traded. Industrial output fell 2.3% in March from a year earlier, its steepest decline in at least 14 years in March, but analysts said the economy was still set for recovery from late 2009. “The upward revision of February (output) numbers has led to profit booking, but it looks like yields will hold at current levels,” said Satish Jeurkar, head of fixed income at Saraswat Co-operative Bank. “However, the market will remain rangebound ahead of the auction outcome and election results,” he said. The outcome of a five-phase national elections is due on 16 May. A coalition government is the expected outcome, with the market hoping one of the two major national parties wins enough votes to control policy making. “The market wants any stable government but there are fears that if the new government comes up with a populist budget, it may affect the market borrowing programme.” Gross borrowing for the 2009/10 fiscal year that begain in April is already projected at a record Rs3.6 trillion, with two-thirds of that to be completed by the end of September. The central bank will auction Rs70 billion of treasury bills on Wednesday and Rs120 billion of bonds on Thursday. Source: LatestNews-Home - Livemint.com | 12 May 2009 | 1:17 pm Microsoft CEO says talk of SAP buy are rumoursMUMBAI (Reuters) - Microsoft Corp Chief Executive Steve Ballmer on Tuesday said speculation the company may buy German software firm SAP was a 'random rumour.'Source: Reuters: Money News | 12 May 2009 | 1:14 pm Oil hits $60 for first time since Nov 2008LONDON (Reuters) - Oil prices hit $60 a barrel on Tuesday for the first time in six months, boosted partly by a weak dollar and gains on equity markets.Source: Reuters: Money News | 12 May 2009 | 1:12 pm Pepsi ropes in Vijender as brand ambassadorVijender Singh has been signed on by soft drink giant Pepsi as its brand ambassador.Source: Daily News & Analysis: Money News | 12 May 2009 | 12:57 pm Wheat procurement up by 18% - Times of India
Source: Google News India - Business | 12 May 2009 | 12:55 pm Rupee gains on markets rally, weak dollarMumbai: The rupee rode a surging sharemarket and a weaker US dollar to recover from early losses on Tuesday, but a poor industrial production data and worries about the election results at the weekend prevented a sharper rally. The partially convertible rupee settled at Rs49.26/28 per dollar, 0.50% stronger than its previous close of Rs49.52/53. In early trade, the rupee fell to Rs49.70, its weakest since 6 May. “After the bad industrial output data and prevailing uncertainty about election results, there was no reason for the rupee to rally, except tracking major currencies gains versus the dollar, especially the sterling,” said V. Kumar, chief dealer with State Bank of Travancore. Index of Industrial Production (IIP) fell a steeper-than-expected 2.3% in March from a year earlier, its third fall in four months. The dollar slid to a four-month low on Tuesday as economic data strengthened a view the global recession is bottoming, boosting stocks and oil to the benefit of currencies like sterling and the Australian dollar. Domestic markets snapped a two-day fall and rallied 4.1% to their best close in over seven months as investors began betting the Bharatiya Janata Party (BJP)-led group, which is seen as market friendly, would win national elections. Exit polls results will be announced after the last round of voting in the month-long election on Wednesday, and this could lead to more volatility, if there was no clear winner, dealers said. Election results are due on Saturday. “With equations changing day by day, a hung parliament seems very much on the cards, which adds to the bearishness on the rupee,” Kumar said. One-month offshore non-deliverable forward contracts were quoting at 49.42/52, slightly weaker than the onshore spot rate. Source: Home - Livemint.com | 12 May 2009 | 12:55 pm Rupee recovers by 20 paise vs dollar on rally in equities - Economic Times
Source: Google News India - Business | 12 May 2009 | 12:49 pm Asian Paints Q4 net up 7 % at Rs 101 cr - Business Standard
Source: Google News India - Business | 12 May 2009 | 12:49 pm Wheat procurement up by 18%Wheat procurement went up by over 18% to 220 lakh tonnes so far in the current marketing season compared to the same period last year.Source: India Business News | Business News - Times of India | 12 May 2009 | 12:47 pm Tata Steel UK takes steps to reduce costs to weather slumpTata Steel UK has performed strongly in 200809 and has met all its covenant obligations to date with strong liquidity position at the year end.Source: Moneycontrol Top Headlines | 12 May 2009 | 12:46 pm Gold rises, silver drops on global cuesNew Delhi: Gold prices on Tuesday gained Rs10 to Rs14,830 per 10 gram in the bullion market here on sustained buying by jewellers and retailers to meet the ongoing marriage season demand amid firming global trend. Marketmen said trading sentiment remained better after gold rose in London as a weak dollar and costlier oil spurred demand for the yellow metal as a hedge against higher inflation. The metal in London rose by $6.32 to $919.10 an ounce. However, silver ready plunged by Rs335 to Rs22,300 per kg on stockists selling at existing higher levels while weekly-based delivery gained Rs290 at Rs22,590 per kg on speculative support. Silver coins continued to hover around previous level in limited deals before ending at Rs29,000 for buying and Rs29,100 for selling of 100 pieces. Standard gold and ornaments were in demand and added another Rs10 each to Rs14,830 and Rs14,680 per 10 gram, respectively. Sovereign, however, held steady at Rs12,200 per piece of eight gram. Source: LatestNews-Home - Livemint.com | 12 May 2009 | 12:39 pm World's first almond futures launched by MCX - Commodity Online
Source: Google News India - Business | 12 May 2009 | 12:37 pm India's industrial output nosedives 2.3 percent in MarchIndia's industrial output fell for the third consecutive month in March by a steep 2.3 percent compared to the corresponding month last year, according to government data released Tuesday.Source: IndiaeNews.com: Business News | 12 May 2009 | 12:32 pm Air France denies ill-treatment of passengersAir France Tuesday said a technical snag had caused a long delay in its Paris-Mumbai flight on Sunday and denied accusations of ill-treatment and racial bias levelled by some of the Indian passengers.Source: IndiaeNews.com: Business News | 12 May 2009 | 12:31 pm Usha Martin consolidated net up nearly 6 percentSpeciality steel and wire rope manufacturer Usha Martin posted a net consolidated profit of Rs.185.34 crore in 2008-09, up 5.7 percent from Rs.175.39 crore in 2007-08, a top company official said here Tuesday.Source: IndiaeNews.com: Business News | 12 May 2009 | 12:31 pm Sensex overcomes early losses, stages year's 2nd biggest rallyHDFC and Wipro shone among the Sensex stocks as the benchmark index ended sharply higher by 475 points at 12,158.03Source: Daily News & Analysis: Money News | 12 May 2009 | 12:31 pm Ashok Chawla new finance secretary, Brahma power secretaryThe government Tuesday appointed Economic Affairs Secretary Ashok Chawla as the new finance secretary and H.S. Brahma as power secretary.Source: IndiaeNews.com: Business News | 12 May 2009 | 12:30 pm Sensex rallies past 12000; shrugs March IIP data - Economic Times
Source: Google News India - Business | 12 May 2009 | 12:27 pm Manufacturing decline drags down industrial productionFacing the heat of global financial meltdown, industrial output in March fell for the second month in a row and contracted by 2.3 per cent, the lowest in sixteen years.Source: Daily News & Analysis: Money News | 12 May 2009 | 12:14 pm Ford to sell 300 million common shares!Ford Motor Co(F.N) has said that it would sell 300 million common shares and use part of the proceeds to pay off its healthcare obligations to the United Auto Workers under the terms of a recently concluded deal with the union.Source: Zee News : Business | 12 May 2009 | 12:13 pm Sensex dips 57 pts on weak global cues!Continuing its slide for the third straight session, the Bombay Stock Exchange benchmark Sensex on Tuesday declined by over 57 points in early trade on capital outflows by foreign funds, triggered by weakening global markets.Source: Zee News : Business | 12 May 2009 | 12:13 pm March industrial output seen down 0.5%!India`s industrial output likely shrunk in March from a year earlier, its third fall in four months, as the global economic slowdown hit exports and domestic demand remained soft, a media agency poll showed.Source: Zee News : Business | 12 May 2009 | 12:13 pm TARP loans near $45 billion mark: Citigroup!Citigroup Inc. is using its USD 45 billion in government capital to make nearly that much in new loans.Source: Zee News : Business | 12 May 2009 | 12:13 pm TDSAT dismisses BSNL`s petition on ADC!Telecom tribunal TDSAT on Tuesday dismissed BSNL`s all three petitions challenging the TRAI order removing the ADC, which is a levy paid by private telecom firms to fund the PSU`s rural and remote operations.Source: Zee News : Business | 12 May 2009 | 12:13 pm Bernanke sees risk of deflation `receding` in US!Federal Reserve Chairman Ben Bernanke said the risk of deflation was "receding," and expressed confidence the dollar would remain strong in the midst of the economic downturn.Source: Zee News : Business | 12 May 2009 | 12:13 pm Slowdown, political murkiness hit Bandra-Worli Sea link!One of India`s most ambitious infrastructure projects, an USD 325 million eight-lane bridge running through the sea off Mumbai, opens next month after negotiating a maze of bureaucracy, courts and street protests.Source: Zee News : Business | 12 May 2009 | 12:13 pm Debt funds spur 42% surge in Mutual fund assets!Assets of mutual funds rose 42.23 percent to 5.9 trillion rupees in April on record inflows in fixed income funds, data from the Association of Mutual Funds in India show.Source: Zee News : Business | 12 May 2009 | 12:13 pm China exports down 22.6% in April: State media!Chinese exports fell 22.6 percent in April from a year earlier in the sixth straight monthly decline, state media said Tuesday, as the global financial crisis continued to take its toll.Source: Zee News : Business | 12 May 2009 | 12:13 pm Uttar Pradesh moves apex court on Varun, challenges NSA revocationNew Delhi: The Uttar Pradesh government on Tuesday moved the Supreme Court challenging advisory board’s decision of revoking charges against Bharatiya Janata Party (BJP) leader Varun Gandhi under the stringent National Security Act (NSA) for his alleged hate speeches. Click here to watch video The advisiory board on 8 May had held that it neither found “plausible and convincing” grounds for the NSA being invoked against Varun nor was it satisfied by the explanation given by the Pilibhit district magistrate. The 29-year-old Varun, who is BJP’s Lok Sabha candidate from Pilibhit, is currently on parole following a Supreme Court order after remaining in jail for nearly three weeks. He was released from Etah jail on 16 April. His parole expires on 14 May. Varun was let off by a three-member advisory board headed by senior judge of the Lucknow bench of Allahabad high court, justice Pradeep Kant, which went into the maintainability of Varun’s detention by the Uttar Pradesh government under the NSA imposed on 29 March. Source: Home - Livemint.com | 12 May 2009 | 12:11 pm French workers asked to move to India or face sackWorkers of a recession-hit textile company in south-west France have been asked to shift to IndiaSource: Daily News & Analysis: Money News | 12 May 2009 | 12:09 pm Ashok Chawla appointed finance secretary New Delhi: Economic affairs secretary Ashok Chawla has been appointed as finance secretary in the ministry of finance with effect from today. The post of finance secretary fell vacant following retirement of Arun Ramanathan, who was also secretary of financial services. “Chawla, who is a Gujarat cadre IAS officer of the 1973 batch, will take over as finance secretary from today,” finance ministry sources said. Chawla has also worked as secretary in the ministry of civil aviation. Source: LatestNews-Home - Livemint.com | 12 May 2009 | 12:09 pm Ashok Chawla appointed finance secretaryEconomic affairs secretary Ashok Chawla has been appointed as finance secretary in the ministry of finance with effect from Tuesday.Source: India Business News | Business News - Times of India | 12 May 2009 | 12:03 pm Kerala government steps in to avert strike at Cochin PortKerala Port Minister M. Vijayakumar Tuesday said the state government will act as a mediator between the central government and agitating Cochin Port workers, who fear they will lose jobs over a new manning policy.Source: IndiaeNews.com: Business News | 12 May 2009 | 12:00 pm Unified approach needed from companies, regulators on governance: KPMG New Delhi: With corporate governance practices of Indian companies coming under scanner, global consultancy KPMG believes industry bodies such as Nasscom, CII and regulators like Sebi should have a more unified approach for developing benchmarks in good governance practices. “The industry bodies like CII, Nasscom and regulators like Sebi should look at a more unified approach towards handling corporate misgovernance and at developing benchmarks in good governance practices,” KPMG director (Governance Risk and Compliance Services) Ganesh Ramamurthy said. According to a survey of KPMG on the state of corporate governance in India, majority of respondents believe that while corporate governance should be practiced through principle-based standards and moderate regulations, there is a need for stronger regulatory review and exemplary enforcement. The survey said that Indian companies believe that the spirit and practice of governance regulations and practices need to be intertwined. One of the key concerns related to corporate governance is risk management, with nearly three-fourth survey respondents saying these practices need to be improved. “Indian companies have some way to go when it comes to risk management measures. Also important to consider is impact of changes to strategies and priorities on risk profile,” Ramamurthy said. Source: LatestNews-Home - Livemint.com | 12 May 2009 | 11:56 am Send US forces to Lanka to save innocent lives: Tamil Americans to USWashington: Accusing Sri Lankan President Mahinda Rajapakse of abdicating his responsibility to save civilians in restive north, Tamil Americans here have asked US President Barack Obama to send his forces to the strife-torn nation to save the lives of innocent people. “This is pure and simple genocide. We are asking Obama administration to intervene to save the Tamils of Sri Lanka by sending its army there. The Rajapaksa Government has abdicated its responsibility to protect its Tamil citizens,” alleged Elias Jeyarajah, leader of the protesting Tamil Americans. A large number of Tamil Americans, carrying banner and posters — also a life size poster of the LTTE leader V Prabharakaran, held a day-long demonstration and shouted slogans in front of the White House. “We are asking unilateral action by the ‘Coalition of the Willing’ led by the US to intervene in Sri Lanka to stop the genocide that is going on right now,” he said. Stating that thousands of innocent Tamil civilians were being killed by the Sri Lankan government, Jeyarajah said that this is the time and place to enforce ‘Responsibility to Protect’ provision of the United Nations. “We urge all other countries including Britain and France to join this Coalition of the Willing,” he said, adding civilized nations have the responsibility to protect when genocide happens. The protestors also alleged that India was not coming forward to protect the Sri Lankan Tamils. “This is the reason why the Tamils world over are urging other major countries of the world to save and protect the innocent Tamils by sending their troops to Sri Lanka,” Jeyarajah said. Source: LatestNews-Home - Livemint.com | 12 May 2009 | 11:55 am Sensex climbs, closes above 12,000-markThe Sensex, which remained weak in the last two trading session and lost 433 points, bounced back to record a handsome gain of 475.04 points at 12,158.03, after touching the day's high of 12,193.63.Source: India Business News | Business News - Times of India | 12 May 2009 | 11:39 am Daiichi FY'09 loss at $3.45 bn on fall in Ranbaxy scripsDaiichi Sankyo, last year acquired controlling stake of around 64 per cent in Ranbaxy Laboratories for around Rs 22,000 crore.Source: Daily News & Analysis: Money News | 12 May 2009 | 11:37 am Former bureaucrat Runu Ghosh convicted for corruptionThirteen years after the case began, Runu Ghosh, former deputy director general in the telecom ministry, was Tuesday convicted by a city court for corruption during the tenure of former union minister Sukhram.Source: IndiaeNews.com: Business News | 12 May 2009 | 11:32 am Sri Lanka brushes off criticism, guns for TigersColombo: Sri Lankan troops today broke through Tamil Tiger defences and the government brushed off western criticism of civilian deaths as a rebel-orchestrated bid for a last-minute reprieve. The rebels, cornered in a coastal strip where they have held tens of thousands of civilians, for a third day accused the military of shelling the 2.5 square km no-fire zone, this time killing 45 people. Fury, blame and recriminations from both sides have flared in the closing days of Asia’s longest modern war, after the Liberation Tigers of Tamil Eelam (LTTE) said hundreds of civilians were killed in artillery barrages starting Sunday. The allegations are impossible to verify, since the war zone is sealed off to most outsiders and those inside cannot be considered fully independent. The military on Tuesday said that the soldiers and special forces troops had advanced across a narrow causeway into the south of the no-fire zone, leaving the Tigers surrounded on all sides and opening another escape route for civilians. “When forces move forward, civilians have the pathway and are confident to move out,” defence spokesman Keheliya Rambukwella said. More than 116,000 civilians fled in the days after troops broke a rebel barricade, which the government said refuted the LTTE assertion that people had chosen to stay and be part of its goal of building a separate nation for the Tamil minority. LTTE peace secretariat head Seevaratnam Puleedevan said that the army had attacked a makeshift hospital on Tuesday, killing 45 people. Sri Lanka denied responsibility for the reported attacks, accusing the rebels of generating ‘shock and outrage at supposed atrocities’ by forcing government-employed doctors in the war zone to give out false death tolls. “Giving credence and acceptance to this LTTE-inspired piece of ‘news´, would wittingly or unwittingly aid the terrorist organisation to save itself at the hour of its impending demise,” a government statement said. IMF threats British foreign minister David Miliband and his French counterpart, Bernard Kouchner, criticised the Sri Lanka on Monday at the UN, saying that it had violated its pledge to protect civilians by not using heavy weapons in what appears to be the endgame of its 25-year civil war. The two said Sri Lanka’s requested $1.9 billion International Monetary Fund (IMF) loan and an EU trade preference that helps the Indian Ocean island nation’s crucial garment sector should be reviewed in light of the attacks. China, Japan, Vietnam and Russia on Monday stopped Kouchner and Miliband from getting Sri Lanka onto the Security Council agenda. Sri Lanka, in a political reversal, sought the IMF loan in March to help meet a balance of payments deficit, support post-war development and boost foreign exchange reserves hovering around six weeks of import cover. The global financial crisis has hit dollar inflows from Sri Lanka’s tea, garment and diaspora employment sectors, while it struggles with rising import costs and a falling rupee currency. However, the UN Security Council has said Sri Lanka should not be punished with the IMF loan, and the EU trade preference is under investigation through next year. Source: LatestNews-Home - Livemint.com | 12 May 2009 | 11:31 am Sensex crosses 12,000-mark, rises 475 pointsIndian equities soared Tuesday towards close of trade with a key index rising over 475 points from its last closing figure to breach the 12,000-point mark at day-end. Banking and IT stocks led the rally.Source: IndiaeNews.com: Business News | 12 May 2009 | 11:30 am BJP sniffs victory, gains vote momentumNew Delhi: After trailing for weeks, the Opposition Bharatiya Janata Party may now be gaining momentum against a fumbling ruling Congress party-led coalition, thanks to some savvy alliance building. The BJP-led alliance, which ruled India from 1998 to 2004 on a pro-business platform, was plagued by internal dissension, withdrawals and poor campaigning just a month ago, and polls gave Congress an advantage.  But on the eve of the last stage of the staggered month-long election, the BJP has won over more allies, showcasing them at a large rally in Punjab’s Ludhiana last Sunday, in marked contrast with the squabbling inside the Congress-led coalition United Progressive Alliance. After initial organizational hiccups, the BJP has managed to unite and has boosted its campaign firepower with a media blitz. Potential allies have taken heart from internal surveys that show the party is doing better than expected, BJP insiders say. The Congress and the BJP, only won around a quarter of the votes each in the last 2004 general election, so their ability to secure coalitions with regional and caste-based parties will be key to forming a government. “The indications on the ground is that it will be a hung parliament,” said BJP top election strategist Sudheendra Kulkarni. “So everything will depend on the party’s ability to maintain alliances -- and the UPA is in complete disarray.” In the last few weeks, smaller parties -- many motivated by political expediency -- have joined the BJP-led National Democratic Alliance (NDA) with the perception the party has a better chance of forming a government. The regional Telangana Rashtra Samithi (TRS) party decided to join the NDA in the swing state of Andhra Pradesh. “We lost one ally but got five,” BJP prime ministerial candidate L.K. Advani told Sunday’s rally, referring to a flurry of alliance switching. With no exit polls allowed during the election, predicting the result is notoriously difficult. Many investors would be happy to see a stable coalition of either main national party. But a BJP victory may see a market rally given its record on economic reforms such as privatization. Reform stagnated under the Congress-led government. Indeed, Indian shares rose 2.7% on Tuesday afternoon on speculation the NDA would form the next government, traders said. Some analysts say the only chance Congress now has to form a government would be to ally with the Left, which gave its coalition a majority in the last Parliament until the communists quit in 2008 in protest over a nuclear deal with Washington. Source: LatestNews-Home - Livemint.com | 12 May 2009 | 11:23 am Bank of America sells $7.3 bn CCB stakeHong Kong: Bank of America sold about $7.3 billion worth of shares in China Construction Bank to a group of investors, a source said on Tuesday, as the struggling US bank seeks to raise cash. A unit of China Life Insurance Co Ltd, Singapore state investment agency Temasek Holdings, and China’s Hopu Investment Management Co, were part of the consortium, the source said. The source was directly involved in the deal but not authorised to speak on the record about it. The source said the sale involved 13.5 billion Construction Bank shares sold at HK$4.20 each, a 14.3% discount to their closing price on Monday. CCB’s Hong Kong-listed shares ended up 1.6% at HK$4.96 in a broader market up 0.4%. The shares fell nearly 7% on Monday in a weaker market on concerns Bank of America might sell a stake. A Bank of America spokesman declined to comment and an official with Beijing-controlled China Construction Bank could not be immediately reached for comment. The 6% chunk of BofA shares sold was the maximum stake it was allowed to sell after a recent lock-up lapsed. The sale cuts Bank of America’s stake in CCB to around 10.6%. Bank of America had been expected to sell shares in Construction Bank since the US government ordered it to find $33.9 billion worth of capital following its “stress test” of 19 large US banks. The discount is wider than when Bank of America offloaded $2.83 billion worth of shares in Construction Bank in January at 12% below the Chinese bank’s last trading price. That same month, Royal Bank of Scotland sold a $2.4 billion stake in Bank of China at a 7.6% discount. Source: World Business - Livemint.com | 12 May 2009 | 11:23 am Bank of America sells $7.3 bn CCB stakeHong Kong: Bank of America sold about $7.3 billion worth of shares in China Construction Bank to a group of investors, a source said on Tuesday, as the struggling US bank seeks to raise cash. A unit of China Life Insurance Co Ltd, Singapore state investment agency Temasek Holdings, and China’s Hopu Investment Management Co, were part of the consortium, the source said. The source was directly involved in the deal but not authorised to speak on the record about it. The source said the sale involved 13.5 billion Construction Bank shares sold at HK$4.20 each, a 14.3% discount to their closing price on Monday. CCB’s Hong Kong-listed shares ended up 1.6% at HK$4.96 in a broader market up 0.4%. The shares fell nearly 7% on Monday in a weaker market on concerns Bank of America might sell a stake. A Bank of America spokesman declined to comment and an official with Beijing-controlled China Construction Bank could not be immediately reached for comment. The 6% chunk of BofA shares sold was the maximum stake it was allowed to sell after a recent lock-up lapsed. The sale cuts Bank of America’s stake in CCB to around 10.6%. Bank of America had been expected to sell shares in Construction Bank since the US government ordered it to find $33.9 billion worth of capital following its “stress test” of 19 large US banks. The discount is wider than when Bank of America offloaded $2.83 billion worth of shares in Construction Bank in January at 12% below the Chinese bank’s last trading price. That same month, Royal Bank of Scotland sold a $2.4 billion stake in Bank of China at a 7.6% discount. Source: LatestNews-Home - Livemint.com | 12 May 2009 | 11:23 am Swine flu | Roche donates over 5 mn packs of antiviral to WHOBasel, Switzerland: Swiss pharmaceuticals company Roche Holding AG said Tuesday it is donating 5.65 million packets of Tamiflu, one of two antiviral drugs known to be effective against swine flu, to the World Health Organization (WHO). Roche said 5 million packets will be used to replenish stockpiles that were depleted when WHO sent previously donated supplies to poor countries after the appearance of a new type of swine flu, dubbed A(H1N1). A further 650,000 packets containing smaller doses of the drug will be used to create a new stockpile for children. Each packet of the drug is enough for one course of treatment. “The recent outbreak of influenza A (H1N1) shows that such a virus can be totally unexpected and spread rapidly around the globe,” the head of Roche’s pharmaceuticals division, William M. Burns, said. “This emphasizes the urgency of restoring WHO and Roche Rapid Response Stockpiles, alongside national government stockpiles, to prepare for subsequent waves with this virus or for addressing newly emerging influenza strains.” Roche said it can make 110 million packets over the next five months — or about 22 million a month — and increase production capacity to 36 million a month by the end of the year if there is sufficient demand. “This equates to a maximum annual capacity of 400 million treatment courses per year,” the company said. But with WHO estimating that up to 2 billion people could become infected with the disease over the next two years, some experts have questioned whether Roche should be allowed to dictate the production of Tamiflu in the event of a pandemic. The Basel-based company has licensed the drug to several other producers to make a generic version — known as oseltamivir — but there is no guarantee they and Roche would be able to produce enough doses if the virus spreads rapidly. Source: LatestNews-Home - Livemint.com | 12 May 2009 | 11:21 am BSE Sensex rallies 4.1 pct as market bets on BJP winMUMBAI (Reuters) - The BSE Sensex snapped a two-day fall and rallied 4.1 percent on Tuesday to its highest close in more than seven months as investors began betting the Bharatiya Janata Party (BJP)-led group, which is seen as market friendly, would win national elections.Source: Reuters: Money News | 12 May 2009 | 11:20 am Govt to issue oil bonds worth Rs 10,300 cr to IOC, BPCL, HPCLThe bonds, which will come over and above Rs 61,800 crore already issued to the three companiesSource: Daily News & Analysis: Money News | 12 May 2009 | 11:10 am Corus plant closure: 10,000 jobs may be lostLondon: Nearly 10,000 jobs are under threat as Tata Steel’s European arm Corus is mulling closing of one of its mills in England after a group of buyers terminated a contract to buy the unit’s 80% produce for 10 years. “Not only did the consortium’s decision spell the end for an estimated 3,000 steel workers in the area, but a further 7,000 jobs in the supply train are also threatened,” the Daily Mail newspaper reported in its online edition. Corus spokesperson did not respond to an email query sent by PTI at the time of releasing the story. However, a senior company official said that direct and indirect job losses are imminent with closure of industrial operations, though he did not confirm to such a figure. “We have 1,920 employees on the company’s roll and 1,000 contractual workers. There jobs are under threat. There will be indirect job losses too but we cannot confirm the figure,” the official said. As the consortium of buyers, comprising Italy-based Marcegaglia, Korean firm Dongkuk Steel and others like Duferco Participations and Alvory SA, has backtracked from the offtake deal, Corus is looking at legal options to avert the closure of its Teesside Cast Product unit in Northeastern England. “Corus is using all legal means to ensure that the terms of the 10-year agreement are fully enforced and that the four consortium members live up to their contractual obligations,” the company had said. Source: Home - Livemint.com | 12 May 2009 | 11:08 am Japan Airlines posts $649 mn annual lossTokyo: Japan Airlines Corp. (JAL) careened deep into the red last fiscal year and forecast another annual loss even as it slashes costs this year by $0.5 billion. JAL said that it posted a group net loss of ¥63.2 billion ($649 million) for the 12 months through March, in contrast to last year’s ¥16.9 billion profit. International and business travel slumped during the period, hit first by volatile fuel prices and then by a slowing global economy. The number of passengers on the airline’s international routes fell 12.4%, while domestic routes carried 1.8% fewer people, JAL said. As demand for air transport weakened due to the effects of the global financial crisis, the JAL’s core business of air transportation, and its other airline-related and travel-related businesses sustained sharp declines in earnings, the company said in a statement. It booked an operating loss of ¥50.9 billion on 12.5% lower revenue of ¥1.95 trillion, despite a series of cost shaving measures including annual bonus cuts and early retirement programs. The company did not break down earnings by quarter. As of March, the company employed 47,526 people, down 3.4% from a year earlier. The road ahead looks just as rocky. JAL forecasts a ¥63 billion net loss and sales of ¥1.75 trillion for this fiscal year through March 2010, saying it expects even shaper declines in international passenger revenue. The carrier aims to further reduce costs this year by ¥53 billion and a total of ¥100 billion by the end of next year through improving efficiencies in sales, maintenance and fuel usage. The company said it hopes the restructuring efforts will ‘bear fruit’ by the time expansion is completed at Tokyo’s main airports, Narita International Airport and Haneda Airport next fiscal year. “With preparations already in progress, and success in seizing new business opportunities at that time, the JAL Group is positive that it will steer back into the black,” the airline said. JAL reports earnings based on Japanese accounting standards. Source: Home - Livemint.com | 12 May 2009 | 10:43 am Oil rises above $59 to 6-month highLondon: Oil prices rose more than a dollar on Tuesday to a six-month high above $59 a barrel, boosted partly by a weaker US dollar. US crude was up $1.10 to $59.6 a barrel. It earlier touched $59.68 a barrel, its highest since November last year. London Brent crude was up 88 cents at $58.36 a barrel. “The US dollar is slightly weaker which could be spurring a bit of strength,” said Tony Machacek at Bache Commodities Ltd. Oil, which is priced in US dollars, tends to rise when the dollar falls. The global downturn has pushed oil down from a record high above $147 a barrel hit in July. But prices have rebounded this year, driven partly by a rally in global equity markets, reflecting perceptions that the worst of the recession might be over in some countries. US crude is up about 80% from a January low of $32.70 a barrel. Crude oil demand in China, the world’s second-largest energy user, provided support for prices with Chinese customs confirming on Tuesday that crude imports in April rose to reach the second-highest daily rate on record. But the country’s export data proved disappointing. US oil inventory data due on Wednesday is forecast to show a further rise in crude oil stocks. US crude stockpiles probably rose for the 10th straight time last week, up by 1.2 million barrels. Distillate stocks are likely to have risen by 1.1 million and gasoline stocks by 500,000 barrels, a preliminary Reuters poll showed. Source: Home - Livemint.com | 12 May 2009 | 10:20 am Nissan sees another loss; focus on saving cashTokyo: Japan’s Nissan Motor Co lost $2.4 billion in the fourth quarter as car sales slumped globally, and forecast another loss for the current year as it puts product launches and growth plans on hold to conserve cash. For January-March, Nissan, which is 44% owned by Renault SA, made an operating loss of ¥230.4 billion, about 15% less than an estimate for a ¥270 billion loss in a survey of 18 analysts by Thomson Reuters. It made a profit of ¥212 billion a year earlier. The maker of the Altima sedan and Murano SUV lost a net ¥276.9 billion in its fourth quarter, swinging from a year-ago profit of 138 ¥billion. For the year to next March, Nissan forecast an operating loss of ¥100 billion , less than a consensus forecast for a ¥239 billion loss. It expects a full-year net loss of ¥170 billion . Nissan urgently needs to offer new cars to compete with domestic rivals Toyota Motor Corp and Honda Motor Co, but a global sales slide and lack of funding have forced it to delay manufacturing projects and model launches. Carlos Ghosn, chief executive of both Nissan and France’s Renault said that the partners’ top priority this year was to generate cash and break down barriers to cooperating more closely in a tough competitive environment. Nissan shares have risen 61% so far this year against a 40% gain on Tokyo’s transport sub-index. Ahead of the results on Tuesday, the stock closed down 1% at ¥510. Source: Home - Livemint.com | 12 May 2009 | 10:16 am Nissan sees another loss; focus on saving cashTokyo: Japan’s Nissan Motor Co lost $2.4 billion in the fourth quarter as car sales slumped globally, and forecast another loss for the current year as it puts product launches and growth plans on hold to conserve cash. For January-March, Nissan, which is 44% owned by Renault SA, made an operating loss of ¥230.4 billion, about 15% less than an estimate for a ¥270 billion loss in a survey of 18 analysts by Thomson Reuters. It made a profit of ¥212 billion a year earlier. The maker of the Altima sedan and Murano SUV lost a net ¥276.9 billion in its fourth quarter, swinging from a year-ago profit of 138 ¥billion. For the year to next March, Nissan forecast an operating loss of ¥100 billion , less than a consensus forecast for a ¥239 billion loss. It expects a full-year net loss of ¥170 billion . Nissan urgently needs to offer new cars to compete with domestic rivals Toyota Motor Corp and Honda Motor Co, but a global sales slide and lack of funding have forced it to delay manufacturing projects and model launches. Carlos Ghosn, chief executive of both Nissan and France’s Renault said that the partners’ top priority this year was to generate cash and break down barriers to cooperating more closely in a tough competitive environment. Nissan shares have risen 61% so far this year against a 40% gain on Tokyo’s transport sub-index. Ahead of the results on Tuesday, the stock closed down 1% at ¥510. Source: World Business - Livemint.com | 12 May 2009 | 10:16 am ArcelorMittal sees 2009 demand down 15-20%Luxembourg: World steel demand will fall 15-20% this year, the steepest decline since World War II, the head of ArcelorMittal said on Tuesday. Lakshmi Mittal, chief executive of the world’s largest steelmaker, told a shareholder meeting that Chinese demand was showing signs of improving and destocking in the US was drawing to a close. The company has halved production, but Mittal said that did not reflect demand. ArcelorMittal said demand should start to normalise once destocking is complete worldwide, provisionally at the end of the second quarter. Mittal told shareholders that steelmakers had to ensure that, when the market did improve, production capacity was brought back at an appropriate speed so they do not make steel which cannot be sold. The World Steel Association forecast late last month steel demand would tumble by 15% this year. Mittal said two weeks ago, when the company published first-quarter results, that he was a little less pessimistic. Source: Home - Livemint.com | 12 May 2009 | 10:10 am Windows 7 available before end of the year: MicrosoftWashington: US software giant Microsoft confirmed that Windows 7, its new-generation computer operating system, would be available before the end of the year. “Windows 7 is tracking well for holiday availability,” said Bill Veghte, senior vice president of the Windows Business at Microsoft. In a statement, Microsoft said that it is anticipating that the next version of its client operating system, Windows 7, will be available to customers in time for the holiday shopping season. Microsoft last week released a nearly-final version of Window 7 known as Windows 7 Release Candidate and invited feedback from the public. Users were invited to download the Windows 7 software from Microsoft’s official website and install it on computers in a public test of the operating system’s capabilities. Copies of Windows 7 RC have also been made available to developers and early reviews have praised the operating system for its stability and for avoiding problems that plagued its predecessor Vista. Complaints about Vista included that it was not compatible with some software designed for the previous-generation Windows XP operating system and that it was too much for smaller capacity “netbooks” or older computers to handle. Source: Tech News - Livemint.com | 12 May 2009 | 9:46 am March industrial output down 2.3%New Delhi: India’s industrial output fell at its steepest annual pace in at least 14 years in March, leaving the door open for further interest rate cuts by the Reserve Bank of India (RBI), but analysts said the economy was still set for recovery from late 2009. India’s factory output in March fell 2.3% from a year earlier, the third fall in the past four months and much sharper than market expectations of a 0.5% fall. It was the steepest fall since annual numbers in the current series became available in April 1995. “We were expecting this kind of number given the collapse in external demand and the weak PMI data,” said Robert Prior-Wandesforde, Senior Asian Economist at HSBC in Singapore. “But we still believe the economy is set for a rebound in the second half of the 2009-10 fiscal year due to fundamental reasons such as fiscal stimulus packages, monetary actions, extra oil and gas output later this year and falling commodity prices and robust domestic demand.” Tuesday’s dismal data followed figures showing a sharper-than-expected drop in China’s exports in April which dampened optimism that a global economic recovery might be around the corner. Talk of a recovery in Asia’s third-largest economy has picked up as some figures, including car and cement sales, showed some signs of a rebound. But the factory data showed demand was still sluggish, and manufacturing fell an annual 3.3%. Analysts said a full-blown recovery was only possible after a pick-up in exports, which fell an annual 33.3% in March. But that won’t happen without a sharp recovery in consumer spending in key markets such as Europe and the United States. Still, Indian factory output is primarily geared for domestic demand, unlike many Asian economies which depend heavily on exports, and that is where analysts saw reason to be upbeat. “...we are heartened to see consumer durables continue its upward growth trajectory as we feel this will be the driver of economic recovery in a domestic consumption-led economy like India,” said Atsi Sheth, chief economist at Reliance Equities. Bond yields eased slightly after the data and in afternoon trade the 10-year benchmark bond yield was at 6.34%, down three points from before the data. More rate cuts? Industrial output, which accounts for a quarter of GDP, grew a paltry 2.4% in 2008-09 (April-March), slowing sharply from 8.5% growth in 2007-08, Tuesday’s data showed. The government estimates economic growth slowed to a six-year low of 6.5% in 2008-09, after growing at or above 9% in the previous three fiscal years. The central bank expects the growth rate to slow further to 6% in 2009-10. Factory output slowed sharply last year as high borrowing costs and the global credit crunch forced firms first to delay expansion plans, and then cut output as demand for goods in overseas markets fell sharply as the global economy turned down. Some analysts said the data could see the central bank cut rates further to boost growth. It has already cut its key lending rate by 425 basis points since October, most recently in April. As well, a new government is expected to take office by the end of the month after election votes are counted this weekend, and its priority would be to protect growth and jobs, which should also support activity and demand. Source: Home - Livemint.com | 12 May 2009 | 9:46 am NALCO to resume full-capacity bauxite production at Orissa mineState-run National Aluminium Co Ltd (NALCO) will resume bauxite production at full capacity at its Panchpatmali mine in Orissa Tuesday, more than a month after the mine was attacked by Maoists, a top official said.Source: IndiaeNews.com: Business News | 12 May 2009 | 9:33 am Sensex up 306 points in afternoon tradeIndian markets were in a comeback mode about 90 minutes before closing bell Tuesday, with a key index ruling 306 points higher than its previous close after dipping into the red earlier.Source: India Business News | Business News - Times of India | 12 May 2009 | 9:25 am Tata Steel seeks easier conditions on UK unit loanMumbai: Tata Steel Ltd said on Tuesday it was seeking an easing of conditions on loans it took to buy Corus as an economic downturn could put pressure on operating profits of its UK unit. Tata Steel UK, through which the group acquired Europe’s second-largest steelmaker Corus in 2006, is not seeking any additional funding or rescheduling of debt, the company said in a statement. “The key relationship banks with significant interest in the debt have expressed strong support towards the covenant reset proposal,” it said. A company official, who declined to be named, said the debt package covenants mainly relate to maintaining certain ratios of debt to operating earnings and the interest cover. Tata Steel would repay early about £200 million ($304 million) of non-recourse debt as part of the covenant reset package and had appointed Citigroup, Royal Bank of Scotland and Standard Chartered to facilitate the process, it said. The prepayment would be funded with support from Tata Steel as it had better liquidity, the company said. Corus, which contributes two-thirds of Tata Steel’s global output, plans to keep 40% of its 20 million tonnes capacity idle in the first six months of this year. Globally, steel makers have seen sales and prices slump as the global economic crisis hits demand from major steel consuming sectors such as automotives, consumer goods and construction. Last month, the World Steel Association forecast steel demand would tumble 15% in 2009, its steepest since World War II. At 0830 GMT, shares in the company were trading marginally lower at Rs271.60 , having recovered from the day’s low, in a Mumbai market up 2.5%. Source: World Business - Livemint.com | 12 May 2009 | 9:16 am Nissan sees more losses; focus on saving cashTOKYO (Reuters) - Nissan Motor Co lost $2.4 billion in the fourth quarter amid a global slump in car sales, and forecast more losses this year as it looks to conserve cash by putting product launches and growth plans on hold.Source: Reuters: Money News | 12 May 2009 | 9:13 am Indian passengers accuse Air France of ill-treatmentIndian passengers who travelled from Paris to Mumbai on an Air France flight that was delayed by 28 hours Tuesday alleged that the airline staff ill-treated them and were racially biased.Source: IndiaeNews.com: Business News | 12 May 2009 | 9:02 am Sensex up 306 points in afternoon tradeIndian equities markets were in a comeback mode about 90 minutes before closing bell Tuesday, with a key index ruling 306 points higher than its previous close after dipping into the red earlier.Source: IndiaeNews.com: Business News | 12 May 2009 | 9:01 am Industrial output declines 2.3% in MarchIndustrial production declined 2.3% in March as compared to a rise of 5.5% during the corresponding month in 2008, mainly on account of poor performance by the manufacturing sector.Source: India Business News | Business News - Times of India | 12 May 2009 | 7:21 am Rupee depreciates by 7 paise against dollar in late morning tradeTaking cues from the domestic stock markets, the rupee recovered its early losses, still showing a fall of seven paise to 49.57/58 against the US currency in late morning deals.Source: India Business News | Business News - Times of India | 12 May 2009 | 5:49 am Japan's Daiichi says deep in red due to Ranbaxy dealJapanese drugmaker Daiichi Sankyo said Tuesday it lost 335.8 billion yen (3.45 billion dollars) in the year to March because of a plunge in the value of its investment in India's Ranbaxy Laboratories.Source: India Business News | Business News - Times of India | 12 May 2009 | 4:34 am Bernanke: Early response to bank tests encouragingJEKYLL ISLAND, Ga (Reuters) - Government "stress tests" of how 19 major banks would endure a sharp downturn in the economy already appear to be helping banks gain access to private capital, a key element in economic recovery, Federal Reserve Chairman Ben Bernanke said on Monday.Source: Reuters: Money News | 12 May 2009 | 2:55 am Jindal affiliate finds natural gas in BoliviaA subsidiary of India's Jindal Power & Steel Ltd says it has found new natural gas reserves in a well in eastern Bolivia.Source: India Business News | Business News - Times of India | 12 May 2009 | 2:31 am HDFC AMC, Birla Sun Life asset base, profits riseMumbai, May 11 Among the top handful of asset management companies, the two – HDFC AMC and Birla Sun Life – that managed to increase their asset base saw their bottomlines grow during the lastSource: Business Line - Home Page | 12 May 2009 | 12:00 am Day Trading GuideNote: In a buy recommendation, the resistances would be the targets and the nearest support would be the stop loss; In a sell recommendation, the supports would be the targets and the nearest resistance would be theSource: Business Line - Home Page | 12 May 2009 | 12:00 am Yes Bank (Rs 77.20): SellWe recommend a sell on Yes Bank from a short-term trading perspective. It is apparent from the chart of Yes Bank that after bottoming in early March around Rs 41, it began to trend upward. The stock’s uptrend accelerated in early April andSource: Business Line - Home Page | 12 May 2009 | 12:00 am Models say Bay readying for monsoon onsetThiruvananthapuram, May 11 International models saw the first wave of monsoon rains entering extreme southwest Bay of Bengal in two days prior to a subsequent onset over the Andaman Islands.Source: Business Line - Home Page | 12 May 2009 | 12:00 am Car sales rise due to bank financing, rural demandNew Delhi, May 11 Increased availability of finance, mainly by public sector banks, and higher demand from rural areas led to a 4 per cent growth in passenger car sales in April.Source: Business Line - Home Page | 12 May 2009 | 12:00 am Maruti to expand presence in diesel segmentNew Delhi, May 11 Maruti Suzuki is now looking to be an aggressive player in the diesel segment, a category which is dominated by Tata Motors. After the success of the Swift hatchback and the Dzire sedan in the diesel variant, the company isSource: Business Line - Home Page | 12 May 2009 | 12:00 am NHAI cancels single bid projects; to reinvite tendersNew Delhi, May 11 Another over Rs 8,000 crore worth of National Highway projects, totalling about 650 km, have been postponed. This is because the National Highways Authority of India (NHAI) has decided to cancel and re-invite bids for sixSource: Business Line - Home Page | 12 May 2009 | 12:00 am Govt defers decision on safeguard duty on steel itemsNew Delhi, May 11 In what appears to be a victory for users, the Government has deferred a decision on a proposal to impose provisional safeguard duty on hot rolled coils/sheets/strips. It said the matter needs to be examined further after takingSource: Business Line - Home Page | 12 May 2009 | 12:00 am CPI, WPI-based inflation seen convergingNew Delhi, May 11 Former Reserve Bank of India (RBI) Governor, Dr Y.V. Reddy, sees the wholesale price index (WPI) and the consumer price index (CPI) converging around five per cent by end of fiscalSource: Business Line - Home Page | 12 May 2009 | 12:00 am Recession impact: BPO industry sees dip in attrition ratesMumbai/New Delhi, May 11 Fewer employees are jumping jobs in the BPO industry, courtesy the ongoing global recession. As a result, attrition rates (the number of people quitting per 100 employees) for several listed BPO firms have come down bySource: Business Line - Home Page | 12 May 2009 | 12:00 am 'Revolutionary leader', 'artiste' brighten Tamil Nadu's canvassIf you aspire to become an election candidate in Jayaram Jayalalithaas All India Anna Dravida Munnethra Kazhagham (AIADMK) party, you should first visit the likes of Baba Ramdev. For, as long as Puratchi Thalaivi (revolutionary leader) delivers her fiery speech, the candidate has to stand on the dais like a statue with folded hands, something that requires yoga-like skills.Source: Business Standard | Front Page Headlines | 11 May 2009 | 7:07 pm Reliance Life slashes agent strengthReliance Life Insurance, the insurance arm of Reliance Capital, reduced the number of agents by almost a third in the second half of the past financial year.Source: Business Standard | Front Page Headlines | 11 May 2009 | 7:06 pm Govt defers duty on steel intermediateSays domestic companies should lower prices first.Source: Business Standard | Front Page Headlines | 11 May 2009 | 6:53 pm Rising credit card losses are next challenge for US banksIt used to be easy to guess how many Americans would have problems paying their credit card bills. Banks just looked at unemployment: Fewer jobs meant more trouble ahead.  Debt threat: Millions in the US may not be able to pay off debts, leaving a gaping hole at banks still trying to recover from the housing bust. Bloomberg The unemployment rate has long mirrored banks’ loss rates on card balances. But Eddie Ward, 32 and jobless, may be one reason that rule of thumb no longer holds. For many lenders, losses are now starting to outpace layoffs. Ward, of Arkansas, lost his job at a retail warehouse in April and so far has managed to make minimum payments on his credit card debt, which he estimates at $15,000-20,000. Asked whether he thinks he will be able to pay off his balance, he said, “Not unless I win the lottery.” In the meantime, he said, “I’m just doing what I can.” Experts predict that millions of Americans will not be able to pay off their debts, leaving a gaping hole at ailing banks still trying to recover from the housing bust. The bank stress test results, released on Thursday, suggested that the 19 biggest banks in the US could expect nearly $82.4 billion in credit card losses by the end of 2010 under what federal regulators called a “worst-case” economic situation. Even the grim projections by the US govt may vastly understate the size of the banks’ troubles Even the government’s grim projections may vastly understate the size of the banks’ credit card troubles. According to estimates by Oliver Wyman, a management consulting firm, card losses at the nation’s biggest banks could reach $141.5 billion by 2010 if the regulators’ loss rate was applied to their entire credit card business. It could top $186 billion for the entire credit card industry. In the official stress test results, regulators published losses only on credit cards held on bank balance sheets. The $82.4 billion figure did not reflect another element included in their analysis: tens of billions of dollars in losses tied to credit card loans that the banks packaged into bonds and held off their balance sheets. What’s more, the peak unemployment level that regulators used to drive their loss estimates is roughly what current rates are on track to reach. That suggests that if the unemployment rate gets much worse, credit card losses could be worse than what regulators projected. And many economists expect the number of job losses to climb even higher. On Friday, the unemployment rate reached 8.9% as the economy lost 539,000 jobs. The unemployment rate and the rate of credit card charge-offs, or uncollectible balances, are traditionally closely aligned, because consumers who lose their jobs are more likely to miss payments. Banks wrote off an average of 5.5% of their credit card balances in 2008, while the average unemployment rate was 5.8%. By the end of the year, the rate of credit card write-offs was 6.3%; more recent data was not available. Experts predict that the rate of credit card losses could eventually surpass the jobless rate because of the compounding effects of the housing crisis and lackluster consumer confidence. Shortly after the technology bubble burst in 2001, credit card loss rates peaked at 7.9%. “We will blow right through it,” said Inderpreet Batra, a consultant at Oliver Wyman, which specializes in financial services. After writing off about $45 billion in bad debts during 2008, credit card lenders are bracing for the worst year in the industry’s history. Not only are losses spiralling, but also lawmakers are on the verge of passing a set of tough new consumer protections that could have a devastating effect on profits. This week, the Senate is expected to take up the Credit Cardholders Bill of Rights after the measure passed in the House with a strong bipartisan vote of 357-70. President Barack Obama over the weekend pressed lawmakers to sign the credit card reforms into law by Memorial Day, and he plans to push the cause again at a meeting this week in Albuquerque, New Mexico. The legislation would curb the ability of card issuers to raise interest rates retroactively on consumers and would require them to reduce hidden fees and penalties. Lenders argue it would limit access to credit for many Americans. ©2009/THE NEW YORK TIMES feedback@livemint.com Source: World Business - Livemint.com | 11 May 2009 | 5:50 pm New search engine breaks conventionEvery new online search service must face the inevitable question: “Is it better than Google?” WolframAlpha, a powerful new service that can answer a broad range of queries, has become one of the most anticipated Web products of the year. But its creator, Stephen Wolfram, wants to make something clear: Despite the online chatter comparing it with Google, his service is not intended to dethrone the king of search engines. “I am not keen on the hype,” said Wolfram, a well-known scientist and entrepreneur and the founder of Wolfram Research, a firm in Champaign, Illinois, that has been quietly developing WolframAlpha. Wolfram’s service does not search through Web pages, and it will not help with movie times or camera shopping. Instead it computes the answers to queries using enormous collections of data it has amassed. It can quickly spit out facts such as the average body mass index of a 40-year-old male and whether the Eiffel Tower is taller than Seattle’s Space Needle. WolframAlpha, which is expected to be available to the public at Wolframalpha.com in the next week, is not a finished product. It is an early working version of a project that has been years in the making and will continue to evolve over years. As such, there is much it cannot answer now. But even as he dismisses the Google comparisons, Wolfram, a former child prodigy who published his first research paper on particle physics at age 15 and is best known for creating the math-formula software Mathematica, is happy to add fuel to the simmering expectations surrounding his service. “I think WolframAlpha has the potential to be quite important.” The goal of creating a computer system that can answer questions has been a tantalizing but elusive pursuit for many computer scientists for more than four decades. Some veterans say Wolfram may have come as close as anyone yet. “In many ways, creating a system like this has been a holy grail of lots of folks for some time,” said Nathan Myhrvold, a former chief technology officer of Microsoft Corp. and co-founder of Intellectual Ventures, an investment firm that owns a portfolio of patents. “It has wound up being considered something that is virtually impossible,” Myhrvold said. WolframAlpha has shown “that it wasn’t impossible but really difficult... It involved applying lots of different tricks.” Doug Lenat, an artificial intelligence expert whose company Cycorp has spent the last 15 years developing a system that brings human-like reasoning to some computer systems, said WolframAlpha can handle “an astronomical number of questions,” and could eventually turn into a favourite destination on the Web. “It may become a massive player alongside Google.” Traditional search engines such as Google and Yahoo excel at finding information that already exists online. WolframAlpha is different. For starters, it does not gather data from the Web. Instead, its “knowledge base” is made up of reams and reams of data— ranging from facts you would find in a World Almanac, to scientific data—that some 100 employees at Wolfram Research have gathered over several years. When a user types in a query, WolframAlpha tries to determine the relevant area of knowledge and find the answers, often by performing calculations on its data. If you type “LDL 120”, it will return a graph showing the distribution of cholesterol levels among the US population, and display the percentage of people above and below that figure. In response to “how far is the moon from earth”, it will calculate the exact distance based on an algorithm that computes the ever-changing distance between the two. The engine that computes answers is largely built on Mathematica. In its current state, there are many queries that WolframAlpha cannot answer, either because it does not understand the question or because it does not have the requisite data. ©2009/THE NEW YORK TIMES feedback@livemint.com Source: Tech News - Livemint.com | 11 May 2009 | 3:41 pm AIG sells Japan headquarters for $1.2 bnCharlotte, North Carolina: Embattled insurer American International Group (AIG) is selling its Japanese headquarters to Nippon Life Insurance Co. for $1.2 billion in cash. The transaction, which would be among the biggest divestitures New York-based AIG has made to reimburse the US government for its massive infusion of aid, is expected to close in the second quarter. AIG has received $182.5 billion in financial support from the government since September. The company is selling off a number of business units to repay part of the loan. Source: World Business - Livemint.com | 11 May 2009 | 1:40 pm
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