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Cosmo films acquires GBC Commercial Print for USD 17.1mnCosmo Films Limited today announced that it has successfully completed acquisition of GBC Commercial Print Finishing with global revenues of approximately $100 million. GBC Commercial Print Finishing is the thermal lamination division of ACCO Brands, Inc. and has been bought by Cosmo Films Ltd. for a consideration of US $ 17.1 million.Source: Moneycontrol Top Headlines | 12 Jun 2009 | 6:26 pm See labour reform, interest sops in Budget: House of PearlsRishi Vig, CFO, House of Pearls, said the company faces tough competition from Bangladesh and Vietnam. Commenting on what he expects from the Budget, Vig said any liberalization on retail front is welcome. \"We are look forward to more incentives on the textile core biz, labour reforms, and interest subsidies.\"Source: Moneycontrol Top Headlines | 12 Jun 2009 | 3:49 pm Indian Hotels buys Mumbai property for $143 mlnMUMBAI (Reuters) - Indian Hotels Ltd said on Friday it plans to buy a controlling stake in Elel Hotels and Investments for 6.8 billion rupees ($143 million) to expand in the financial capital of Mumbai.Source: Reuters: Money News | 12 Jun 2009 | 2:03 pm Blacklisting of firm hits artillery modernisation: Army chiefThe Indian Army's 23-year wait for new artillery guns - a crucial element of its modernisation drive - has just got longer with the blacklisting on corruption charges of a Singapore firm. Its howitzer was the frontrunner for a Rs.29 billion ($612 million) order for 140 guns, the army chief, Gen. Deepak Kapoor admitted Friday.Source: IndiaeNews.com: Business News | 12 Jun 2009 | 2:02 pm Renewable energy to get cheaper, says India's ministerThe cost of generating clean energy should be brought down to make it 'affordable' for developing countries, Minister for New and Renewable Energy Farooq Abdullah said Friday after his interaction with the visiting UAE foreign affairs minister.Source: IndiaeNews.com: Business News | 12 Jun 2009 | 2:01 pm Novartis hopeful of H1N1 flu vaccine by autumnZURICH (Reuters) - Novartis AG expects a vaccine for the H1N1 virus, the source of the first flu pandemic for 40 years, to be available by the autumn after it produced the first batch for testing ahead of schedule.Source: Reuters: Money News | 12 Jun 2009 | 2:01 pm Computer sales up 7 percent in January-March quarterPersonal computer (PC) sales in India were up 7 percent in the first three months of this year over the last quarter of 2008 but were still about 19 percent less compared to the year-ago period, according to an IT media house report.Source: IndiaeNews.com: Business News | 12 Jun 2009 | 2:01 pm Indian tourism roadshow in Australia rescheduledIndia Friday said the adventure tourism roadshows in Australia, where a number of Indian students have been attacked, and New Zealand are on though they will be held in September instead of July.Source: IndiaeNews.com: Business News | 12 Jun 2009 | 2:00 pm Job prospects for IT graduates bleak this year, say expertsTop executives of the country's two premier IT companies drew a bleak picture of employment opportunities for fresh engineers.Source: Daily News & Analysis: Money News | 12 Jun 2009 | 1:56 pm ANALYSIS - Luxury sellers tap new doors for raw materialsNEW YORK (Reuters) - From breeding their own crocodiles to tapping new low-cost centers for raw materials, luxury retailers are stepping up efforts to improve sourcing of goods, labor and expertise in the global economic slowdown.Source: Reuters: Money News | 12 Jun 2009 | 1:54 pm Bond yields end flat after hitting 2-month highMumbai: The benchmark federal bond yields hit two-month highs on Friday as industrial output data added to signs of recovery and an end to rate cuts, but found some late buyers that helped them close steady on the day. There was some demand for 10-year bonds as yields neared 7%, with speculation that the government would not increase the scheduled size of next week’s bond auction, after increasing the past four by 25%, also generating buying interest. The 10-year benchmark bond ended at 6.89%, level with Thursday’s close, after rising to 6.94%, its highest since 8 April, following the unexpected strength in the output data. Industrial production rose 1.4% in April from a year earlier, beating forecasts for a fall, driven by a pick-up in domestic demand and adding to a view the economy was reviving. “A rate cut is now practically ruled out. The market is also concerned at what stage the central banks around the world would withdraw the monetary accommodation. So based on that the general trend for yields is to edge higher,” said Vineet Malik, head of interest rates at HSBC India. The 10-year bond yield rose 33 basis points this week. The yield on the most traded 6.07% 2014 bond closed at 6.66%, above its previous close of 6.63%. Volumes were a heavy Rs98.85 billion ($2.1 billion) on the RBI’s trading platform. The market has been worried about the government’s borrowing needs for 2009-10 after it increased the size of the past four bond auctions by 25% to Rs150 billion each. Traders were waiting for details of the 120 billion auction scheduled for next week, with talk that there would be no increase in the auction size. Source: LatestNews-Home - Livemint.com | 12 Jun 2009 | 1:54 pm LIC Housing Finance sees improving home market in FY10New Delhi: Mortgage lender LIC Housing Finance Ltd expects the housing market to pick up this fiscal year on declining loan rates and as firms focus on affordable homes, its chief executive said on Friday. Through much of 2008-09, buyers stayed away from the housing market as the economic downturn hit sentiment and as home loan rates stayed high. Reluctance by developers to cut prices too crimped demand. But a spate of interest rate cuts from October, coupled with price cuts and a shift away from luxury properties by builders, has sparked off some interest. “There has been a lot of demand spurt,” RR Nair told Reuters on the sidelines of a housing exposition. “This increase we have experienced from February.” “Afforable housing is a very imaginative idea, because 60-70% of the demand falls in that category.” The state-run firm has seen a 40% increase in loan applications in the first two months of the fiscal year, and has disbursed double of what it did in the corresponding period a year ago, he said. The average size of a loan had increased to Rs1.5-1.6 million from Rs1.2 million a year ago, he said. For the full fiscal year, Nair forecast a 30% rise in loan disbursements to Rs120-130 billion. He also said loan defaults in the year would fall to below 1%, from 1.07% in the previous year. To meet the rise in demand, LIC Housing will raise funds through a qualified institutional placement of 100 million shares, but Nair did not say how much could be raised. LIC Housing would also raise debt of Rs150 billion through non-convertible debentures, commercial paper and other instruments, Nair said. Nair said housing prices had bottomed out and would likely rise in the next six months as builders looked to cash in on the rising market. “Once cash flow becomes stable and excess inventory is cleared, it is possible builders can afford to increase prices.” Shares in the firm closed 4.4% down at Rs569.95 in a Mumbai market that was down 1.13%. Source: LatestNews-Home - Livemint.com | 12 Jun 2009 | 1:44 pm Modernisation of steel plants top priority: MinisterExpansion and modernisation of state-run steel plants to double their output are among the top priorities of the government, Steel Minister Virbhadra Singh said here Friday.Source: IndiaeNews.com: Business News | 12 Jun 2009 | 1:32 pm Textile industry to grow at 7-8 percent: MaranThe textile industry will regain lost ground to grow at 7-8 percent in the current fiscal, Textiles Minister Dayanidhi Maran said here Friday.Source: IndiaeNews.com: Business News | 12 Jun 2009 | 1:31 pm For India Inc, worst is over but recovery yet to startA resilient India Inc is waiting for global recovery to start as the worst impact of the global meltdown seems to be over, an industry luminary said Friday.Source: IndiaeNews.com: Business News | 12 Jun 2009 | 1:31 pm SREI Infra net profit drops 53 percent in 2008-09Non-banking finance company SREI Infrastructure Finance has posted a net profit of Rs.50.36 crore for the year ended March 31 - a fall of 53 percent from Rs.107.96 crore recorded the year before.Source: IndiaeNews.com: Business News | 12 Jun 2009 | 1:30 pm Job prospects for IT graduates bleak this year, say experts - Economic Times
Source: Google News India - Business | 12 Jun 2009 | 1:20 pm Is Tata Comm eyeing strategic investors for cable biz?Even as reports suggest that Tata Communications is considering roping in strategic investors for its undersea cable business, the company said these reports are unfounded and have been floated by vested interests.Source: Moneycontrol Top Headlines | 12 Jun 2009 | 1:16 pm Investors wary as Indian firms share sales mushroomMumbai: With its investor roadshow complete, GMR Infrastructure has managed to attract just over half the $1 billion it was initially hoping to raise, according to banking sources - an ominous sign for issuers looking to cash-in on a stock market rally. While share sales are beginning to flow after a 15 month drought as the Bombay Stock Exchange 30-share index has surged 90% from its 2009 low in March, wary investors are concerned the run up has been too fast. “Clearly quality is coming into play now,” said Jayesh Shroff, who oversees $1.3 billion for SBI Mutual Fund. “There will be some inflection point. Some issues may not sail through at some prices,” Shroff said. So far in 2009, 11 Indian firms have raised nearly $2.6 billion, mostly in the last two months. Another three dozen firms, including GVK Power and JSW Steel, have announced their intentions to raise $8.5 billion in share sales, Thomson Reuters data showed. Property and construction firms, reeling from debt-heavy balance sheets, form a majority of this group. Most are opting for the sales of shares to institutional funds, which can be done faster than a standard follow-on offering. Bankers reckon as few as a third of the planned offers will succeed as investors are faced with multiple choices and stocks are no longer cheap. Shares in top real estate firm DLF have jumped nearly three-quarters since its founders raised $780 million in mid-May, handing out handsome returns to its investors. But new investors in GMR, which operates two of India’s biggest airports in New Delhi and Hyderabad, would be buying into a firm that has already more than doubled in value since February and trades at 93 times its forecast earnings for fiscal year 2010. “We are concerned with a run-up (in prices). Investors don’t like this,” Ashutosh Agarwala, GMR’s chief financial officer for strategic finance, told Reuters. “But having said that, I don’t think it will matter. We haven’t decided the pricing, but all I can say is the (placement) will be investor friendly,” he said. GMR still cannot launch its offer due to restrictions on pricing from the market regulator Sebi. Under pricing rules for share sales to institutions, offers must be priced at a minimum of the average price in the past two weeks or six months, whichever is higher, making newer issues dearer following the recent rally. GMR’s current market price of Rs158 is well below the regulator’s floor price of around Rs185. Overseas heavyweights including HSBC, Government of Singapore Investment Corp, Britain’s Prudential Plc and T Rowe Price have been among the most active investors in recent offers in India, bankers said, and are expected to become more cautious after sharp run up in share prices. Most of the share sales so far have gone towards retiring high-cost debt and would not help in generating fresh cash, eventually diluting earnings on expanded capital, analysts said. Even for firms working on new projects, returns will flow only after a few years, as in the case of GMR, which plans to use the proceeds to finance a slew of new road and power projects. “Indian industry is hungry for capital. If investors are indicating prices are high, companies will have to value it. Pricing power is still with the investors,” said Girish Nadkarni, executive director at Avendus Capital. But firms such as Gammon Infrastructure Projects, which is debt free and plans to invest in new projects, insist offerings that will deliver strong cash flows are attractive enough for investors. “I have a queue of these guys waiting,” said Parvez Umrigar, managing director at Gammon, which aims to sell shares worth $105 million. Source: Home - Livemint.com | 12 Jun 2009 | 1:13 pm Higher industrial output no help, Sensex down 173 points - Sify
Source: Google News India - Business | 12 Jun 2009 | 1:11 pm As crisis bites elsewhere, Indian firms turn to ChinaMUMBAI (Reuters) - When Tata Consultancy Services, India's top software services firm, set up a development centre in Hangzhou in China, one of the requests it had for the city's vice mayor was for vegetarian food.Source: Reuters: Money News | 12 Jun 2009 | 1:07 pm Forex reserves dip $1.1 bn - Economic Times
Source: Google News India - Business | 12 Jun 2009 | 12:59 pm SEBI frames new norms for relisting by Cos - Hindu Business Line
Source: Google News India - Business | 12 Jun 2009 | 12:46 pm Factory output rise adds to revival signsNEW DELHI (Reuters) - India's industrial output rose in April, beating forecasts of a fall, driven as in China by a pick-up in domestic demand that analysts said confirmed nascent signs of recovery and an end to central bank rate cuts.Source: Reuters: Money News | 12 Jun 2009 | 12:36 pm Venture capital fund, bank mooted for food processing sectorAgreeing to industry's demand for access to more credit at competitive rates, the government is examining a proposal to set up a venture capital fund or a bank for the food processing sector.Source: IndiaeNews.com: Business News | 12 Jun 2009 | 12:31 pm Higher industrial output no help, Sensex down 173 pointsIndian equities markets discounted the increase in industrial output with a key index, losing more than 173 points Friday as the bourses went into correction mode.Source: IndiaeNews.com: Business News | 12 Jun 2009 | 12:31 pm Rupee off highs on stocks dip; outlook brightMumbai: The partially convertible rupee gave up all its early gains on Friday as a boost from stronger-than-expected industrial data gave way to a drop in the stock market and the dollar’s broad rebound. The rupee ended at Rs47.61/62 per dollar, 0.5% below an intraday peak of Rs47.3750 hit in afternoon deals and steady with Thursday’s close. It fell 1% on the week. Factory output rose 1.4% in April from a year earlier, beating forecasts for a fall, driven by domestic demand and confirming hopes Asia’s third-biggest economy has weathered the worst of the global crisis. Along with Friday’s 1.1% fall in the stock market, dollar demand for oil importers and the euro’s losses on weak euro zone industrial output data weighed on the rupee. Priyanka Chakravarty, a foreign exchange strategist at Standard Chartered, said the output data was a medium-term positive for the rupee, and expected further signs of recovery would drive it higher following next month’s budget. “We maintain our overweight FX rating for the Indian rupee and forecast it at 45.50 (per dollar) by the year-end,” she said. Kotak Mahindra Bank said given the signs of incipient recovery and the buoyant performance of the stock market, the chances of more central bank rate cuts are reduced considerably. Foreign capital is a key driver for the rupee. Foreign investors have bought more than $7.5 billion of stocks since mid-March, helping the benchmark stock index rise about 90% from a 2009 low on 6 March. The rupee has risen 9.6% from a record low of Rs52.2 in early March on the foreign inflows and improved sentiment after the Congress-led coalition was re-elected last month, but it has run into stiff resistance from the central bank (RBI) at Rs47 per dollar. Source: Home - Livemint.com | 12 Jun 2009 | 12:29 pm Factory output rise adds to revival signsNew Delhi: India’s industrial output rose in April, beating forecasts of a fall, driven as in China by a pick-up in domestic demand that analysts said confirmed nascent signs of recovery and an end to central bank rate cuts. Factory output in April rose 1.4% from a year earlier, recovering from a revised fall of 0.8% in March and bettering forecasts for a decline of 0.2%, adding to signs from China that activity in emerging economies was picking up. Output had fallen in three of the previous four months. “Output growth almost certainly bottomed on a year-on-year basis in March and we are looking for a healthy upward trend to develop from here,” HSBC economist Robert Prior-Wandesforde said. “It also fits in with our theory that the rebound in industrial production is due to domestic demand, the same case as with China,” he said. Figures from China showed factory output growth rebounded in May alongside stronger expansion in credit and consumer spending, adding to hopes it can lead a global revival. Manufacturing output, which accounts for about 80% of India’s industrial production, rose an annual 0.7% in April, the first month of the 2009-10 fiscal year. Suresh Tendulkar, the head of Prime Minister’s economic advisory council, said there were signs of recovery in the data. “Worst is over, that is what I have been saying. Worst is over for the economy,” Tendulkar told reporters. The benchmark 10-year bond yield rose as much as 6 basis points to a two-month high of 6.94% after the data, which was seen pointing to an end to the central bank’s aggressive rate cuts. “This reading, combined with weekly spikes in inflation index, suggest the monetary easing cycle is over for now. However, no immediate rate hikes are expected either,” said Rupa Rege Nitsure, chief economist at Bank of Baroda. India’s annual inflation rate fell to a record low of 0.13 on 30 May, and is expected to turn negative in coming weeks due to a rapid acceleration in prices last year as oil headed to record highs. But the wholesale price index has been rising since the end of February, reflecting underlying inflation pressures. The Reserve Bank of India (RBI) cut its key lending rate by 425 basis points to 4.75% in six moves between October and April. Pick-Up The data also reinforced other signs that domestic demand was picking up in India. Stronger-than-expected March quarter growth helped Asia’s third-largest economy expand by 6.7% in 2008-09, although that was a six-year low and well below rates of 9% or more for the previous three years. The signs of a bottoming in growth and the re-election of the ruling coalition have seen economists revise up their forecasts for 2009-10, with the central bank’s estimate of about 6% now at the bottom of private sector economists’ expectations. Car sales rose an annual 2.5% in May, climbing for the fourth month, and strong demand in rural and semi-urban areas pushed up motorcycle sales by 12.3% from a year earlier. Infrastructure output, accounting for a quarter of factory production, grew 4.3% in April from a year earlier, data showed earlier this month. A survey of purchasing managers showed manufacturing expanded for a second month in May to its highest in eight months. “Several large investment plans that were mothballed in part due to election-related uncertainties will likely be put back in place,” said Goldman Sachs. Prime Minister Manmohan Singh said this week there was room for more government spending, particularly on infrastructure, although this raised concerns the fiscal deficit could widen. Exports remain in the doldrums, and the government expects their decline to continue until September. Exports fell 33.2% in April from a year earlier to $10.74 billion. Although India is less dependent on exports than China or other East Asian countries, with exports accounting for about 15% of GDP, the drop has offset some of the domestic gains. Source: Home - Livemint.com | 12 Jun 2009 | 12:25 pm Axis Bank to raise $300 mn through bond salesMumbai:Axis Bank is in talks with overseas investors about raising up to $300 million through the sale of bonds with maturities of two to three years, the bank’s treasury head said on Friday. Bapi Munshi, president of the treasury, said, the bank was looking to raise funds at under 200 basis points over the London Interbank Offered Rate,but investors were expecting a spread of around 325 basis points. “It (sentiment) is much better compared to say two months back. People are willing to take the risk, but definitely pricing is an issue.” Munshi said. “Our expectation is that spreads would come down further, and maybe September will be the opportunity when we may some improved spreads for us,” he added. Axis Bank opened a Rs20 billion ($420 million) lower Tier-II bond issue this week and the sale closes on 17 June . The bank has a board approval to raise a total of Rs 30 billion via Tier-II subordinated debt from the domestic and overseas markets, Munshi said. Source: LatestNews-Home - Livemint.com | 12 Jun 2009 | 12:22 pm Kingfisher Air grabs maximum mkt share in MayThe Jet Airways\' market share for the month of May was at 15.7% whereas for Kingfisher Airlines grabbed the hihgest market share for May was at 25.7%.Source: Moneycontrol Top Headlines | 12 Jun 2009 | 12:21 pm Royal Enfield to launch 2 bikes; ramp up capacity by 35%New Delhi: Heavy-weight motorbike maker Royal Enfield today said that it will launch two models by early next year and plans to expand its overall production capacity by over 35% by 2010. “We have plans, we have enough engine platforms for bringing in new models. We will be launching two more models by the end of this year or early next year,” Royal Enfield divisional general manager (sales and marketing) Shaji Koshy said. At present, the company is evaluating possibilities for launching the two bikes with two different engines, twinspark 350cc and 500cc engine with EFI technology, he added. The company is also increasing its production capacity to 60,000 units per annum by 2010 from the existing 44,000 bikes a year at its facility in Chennai. Koshy, however, declined to disclose whether the new models would be exclusively for the domestic market or for exports, saying the company would decide at the time of the launch. “On an average, our bikes are on one month waiting period.To counter this problem, we are increasing our capacities every year.This year, it will reach 50,000 units and we will ramp it up to 60,000 units by next year,” Koshy said, adding the company would invest Rs25 crore in enhancing capacities and launching new products by 2010. “In the last financial year, we sold 44,648 units in the domestic market. From this year, we have adopted the calender year as our financial year and we are expecting our sales to cross 50,000 units by December, 2009,” he said. Besides, the company would add 10 dealers to its network of 148 dealerships across the country by 2009. Koshy said Royal Enfield would also upgrade the existing 148 dealerships at par with its exclusive 10 brand stores. The company will flag-off its six-year old bike rally — Himalayan Odyssey — on Saturday from the national capital, Delhi. It is also starting three more bike rallies — Rajasthan Odyssey, Nepal Odyssey and Southern Odyssey — from this year. “The fortnight-long Himalayan Odyssey has 62 participants this time, up from last year’s 50. Participants are in the age group of 22-55 years,” Koshy said. Royal Enfield currently sells five products in the domestic market — Bullet 350, Electra in both 4-speed and 5-speed, Machismo 350, Machismo 500 and Thunderbird Twinspark. It also produces Bullet Classic 500 with EFI engine exclusively for the overseas markets, including Germany, the UK and the US. Source: LatestNews-Home - Livemint.com | 12 Jun 2009 | 12:16 pm China`s industrial output up 8.9% in May!China`s industrial output rose 8.9 percent in May from a year earlier, the government has said, as massive stimulus measures introduced last year kick in.Source: Zee News : Business | 12 Jun 2009 | 12:15 pm Sensex rises 133 points to 15,544.23!The Bombay Stock Exchange benchmark Sensex recovered 133 points in early trade on Friday, tracking a firm Asian trend, on emergence of buying by funds in fundamentally strong shares.Source: Zee News : Business | 12 Jun 2009 | 12:15 pm BlackRock to buy Barclays Global Investors for $13.5 bn!Ending weeks of speculation, US investment manager BlackRock Inc said on Thursday it will purchase the asset management arm of British investment bank Barclays PLC for USD 13.5 billion in cash and stock.Source: Zee News : Business | 12 Jun 2009 | 12:15 pm Online spending by Indian consumers up, finds survey!Undeterred by the economic downturn, average online spending by consumers in India rose by 42 percent to USD 3,442 in Q4 2008 as compared to Q3 2008, a survey said.Source: Zee News : Business | 12 Jun 2009 | 12:15 pm Sesa Goa buys rival iron ore mines for USD 368 mn!India-based iron ore miner Sesa Goa has acquired the mining assets of Dempo Group in the western state of Goa for 17.5 billion rupees (USD 368 million) to boost its output of iron ore.Source: Zee News : Business | 12 Jun 2009 | 12:15 pm Americans` net worth shrinks $1.33 trillion in Q1!American households lost $1.33 trillion of their wealth in the first three months of the year as the recession took a bite out of stock portfolios and dragged down home prices.Source: Zee News : Business | 12 Jun 2009 | 12:15 pm Satyam down 8%; Tech Mahindra 4 on 1st day of open offer!Satyam Computer fell sharply by over 8 percent within an hour of firm opening, and Tech Mahindra slipped nearly 4 percent on the Bombay Stock Exchange on the first day of the open offer on Friday.Source: Zee News : Business | 12 Jun 2009 | 12:15 pm G8 finance ministers to discuss exit from stimulusLecce: Germany will press G8 finance ministers to start working on how to return policy to normal after months of crisis at a meeting in Italy on Friday, although hopes the world economy has turned the corner are still fragile. European bank stress tests, “exit strategies” from crisis mode and reforming how financial markets are regulated will top the agenda for ministers, aiming to prepare for a summit of G8 leaders in early July. With central bank representatives not attending, officials have said the meeting will not formally address currencies, although financial markets will look for comments from policymakers the weaker dollar, soaring bond yields and oil prices. Forecasts prepared for the meeting by the International Monetary Fund offered more hope that the global economy will start to recover soon, upping its prediction for global growth next year to 2.4% from 1.9%, a G8 source said. Given such signs, German officials say the world’s leading powers must look at how they will begin to withdraw huge fiscal and monetary stimulus that will eventually risk destabilizing economies again with higher inflation. “As soon as the economy has found its footing again, expansive impulses must be rolled back. And that also concerns monetary and fiscal policies,” deputy finance minister Joerg Asmussen told a briefing just before leaving for Lecce. Data from China showed factory output growth rebounded more than expected in May, alongside stronger expansion in credit and consumer spending, but signs from Germany and France were less optimistic — showing wholesale and consumer prices falling. A European G7 source said the timing of an exit strategy is crucial but it was important for officials not to jump the gun. “What is important is that when you start withdrawing the stimulus, it is done quickly and substantially, so you need to be prepared,” the source told Reuters. “There are risks to doing it too late and also to doing it too quickly. Now is not the time because you will only worsen things if you begin while the economy is still falling.” Dollar Status Russia weakened the dollar this week by declaring it would reduce its holdings of US government bonds as part of a shift to provide more funds to the IMF and put more of its $400 billion currency reserves back into the banking sector. The weaker dollar — largely the result of the huge rise in public borrowing needed to combat the banking crisis — is of increasing concern to the Europeans, who worry it could hurt their exports and threaten to destabilise a nascent recovery. “What is damaging for the economy is the volatility of the currency markets and that is why we are keeping an eye on that market,” a French official told Reuters in response to a question about recent currency market moves on Thursday. China — not attending in Italy — and Russia may hold the keys to the dollar’s fate in the shape of huge foreign exchange reserves invested heavily in the US Treasuries — seen as among the world’s most secure assets. Russia, however, is tied to the dollar by its dependence on oil, and has stepped up attempts to start a discussion of downgrading the dollar’s dominance of reserves, saying it hurts the world economy. US treasury secretary Timothy Geithner will hold separate meetings with his Russian opposite number Alexei Kudrin on Friday, as well as Japan’s finance minister Kaoru Yosano and Financial Stability Board chief Mario Draghi. The dollar inched up after heavy losses earlier this week, but dealers said any move by ministers to talk up the economy would threaten to generate more falls for the greenback. Regulatory Football Ministers will also push on with the sticky process of reform of financial regulation, a commitment made by each of the series of emergency G20 and G8 summits held since the banking crisis deepened last year. Washington is pushing the Europeans to follow its lead and publish results of stress tests on its banks, and UK finance chief Alistair Darling will press for more urgency on clearing up toxic assets and getting banks lending again. “If you don’t fix the banking problem, you’ll never fix the wider economy,” Darling was quoted as saying in an interview in Friday’s edition of the Financial Times. Treasury officials said he will also call on colleagues to make good on pledges they made at the G20 summit in London to deliver more money for the IMF. In particular, Germany and Italy had still not made their bilateral commitments to the IMF clear. Stress tests of banks in the United States have been made public in a step widely seen as giving greater clarity to investors, but Germany’s finance minister Peer Steinbrueck has opposed Europe publishing such results. French economy minister Christine Lagarde favoured publishing stress tests results later this year. Source: LatestNews-Home - Livemint.com | 12 Jun 2009 | 12:02 pm Sensex drops 1.1 pct, but posts 14th weekly riseMUMBAI (Reuters) - The BSE Sensex fell 1.1 percent on Friday as investors took profits on a more than 90 percent rally since early March, but notched its 14th straight weekly gain for the first time in four years.Source: Reuters: Money News | 12 Jun 2009 | 11:56 am Are crude prices climbing because of improved fundamentals?The International Energy Agency (IEA) has for the first time in 10 months revised its crude demand forecast for 2009. It has increased its global oil demand estimate by 120,000 barrels to 83.3 million barrels a day.Source: Moneycontrol Top Headlines | 12 Jun 2009 | 11:51 am Barclays lands capital-boosting BlackRock dealLONDON/BOSTON (Reuters) - BlackRock has agreed to buy Barclays Global Investors to create the world's biggest asset manager, in a $13.5 billion deal that British bank Barclays hopes will put to rest concerns about its capital.Source: Reuters: Money News | 12 Jun 2009 | 11:49 am IIP up, but Sensex down 173 points on FridayThe IIP data which said industrial production for April grew by 1.4% did not cheer the market as the Sensex ended 173 points down at 15237.Source: Daily News & Analysis: Money News | 12 Jun 2009 | 11:41 am Domestic air traffic down 11% in Jan-May periodNew Delhi: The financial slowdown hit passenger traffic in the country with the number of air travellers dropping by almost 11% between January and May compared with that in the same period last year. Even though a marginal increase was witnessed in passenger traffic last month, official figures released today showed that the passengers carried by all airlines in the first five months of 2009 fell to 173.34 lakh against 194.11 lakh in the same period last year,thus registering a negative growth of 10.7%. Total passengers carried last month, however, went up to 39.29 lakh from 33.15 lakh in April this year, the statistics showed. Kingfisher Airlines and its no-frill arm Kingfisher Red led the way flying 10.1 lakh passengers, followed by Jet Airways and JetLite, which together carried 9.12 lakh passengers. While Air India (Domestic) flew 6.9 lakh, all-business class carrier Paramount Airways carried 82,000. Among the no-frill airlines, IndiGo took 5.4 lakh air travellers, followed by SpiceJet with 4.96 lakh and GoAir 1.88 lakh. The market share of all the scheduled domestic airlines either remained around the same or changed marginally compared to the April figures, the statistics showed. Kingfisher and its low-cost subsidiary recorded thehighest market share of 25.7%, while Jet and JetLite together clocked 23.2% followed by Air India(Domestic) with 17.6%, IndiGo 13.7%, SpiceJet 12.6% and Paramount 2.1%. However, Paramount registered the highest average seat factor at 89.2%, closely followed by no-frill carrier IndiGo with 85.1%, GoAir with 84.2% per cent and JetLite 77.4%. The figures showed that Kingfisher and its low-cost airline together had a seat factor of 72.9%, followed by Jet’s 69.2% and AI (Domestic) 69.1%. The overall on-time performance (OTP) of the scheduled domestic carriers has remained at 79.5% in of May with Chennai-based Paramount Airways taking a top spot with 89% and MDLR being the last with 49.3% OTP. Source: LatestNews-Home - Livemint.com | 12 Jun 2009 | 11:41 am Worst is over for Indian economy: PM’s adviserNew Delhi: India’s industrial output growth in April showed signs of recovery and the worst is over for the economy, a senior policy adviser said on Friday. “Signs of recovery are there. Worst is over, that is what I have been saying. Worst is over for the economy,” said Suresh Tendulkar, the head of Prime Minister’s economic advisory council. Data on Friday showed industrial output rose by 1.4% in April from a year earlier, rebounding after declining three times in the previous four months. Source: LatestNews-Home - Livemint.com | 12 Jun 2009 | 11:38 am 1.3 mn job losses likely in 2009-10: UNCTADAbout 1.3 million people are likely to lose jobs in the export units in the current financial year due to recession in the developed countries.Source: Daily News & Analysis: Money News | 12 Jun 2009 | 11:37 am Srei Infra Q4 net dips 38% - Hindu Business Line
Source: Google News India - Business | 12 Jun 2009 | 11:35 am Mentha futures recover on short-covering - Hindu Business Line
Source: Google News India - Business | 12 Jun 2009 | 11:35 am Domestic air traffic down 11% in Jan-May period - Business Standard
Source: Google News India - Business | 12 Jun 2009 | 11:34 am Vedanta to raise up to $1.25 bn to fund acquisition, expansionNew Delhi: Metal and mining major Vedanta Resources will raise up to $1.25 billion through issue of convertible bonds to fund its acquisition and expansion plans besides hiking stakes in its group subsidiaries. The NRI billionaire Anil Agarwal-led firm has launched the $1 billion convertible bond issue due 2016 and said its size could be further increased by up to $250 million. “The company intends to use the net proceeds of the offering to support its organic growth pipeline, to increase its ownership interest in its subsidiaries and for general corporate purposes. The net proceeds will also provide the group with additional flexibility to finance acquisitions, the company said in a statement. The company expects the conversion price of the bonds to be set at a premium of between 35-40% to the volume weighted average price of the ordinary shares on the London Stock Exchange, where Vedanta Resources is listed. J P Morgan Cazenove is acting as the sole bookrunner of the offering. Vedanta Resources group entity Sesa Goa last evening announced acquisition of Goa-based V S Dempo & Company’s mining assets in an all-cash deal of Rs1,750 crore. The parent firm will hike its stake in Sesa goa to 55% with a cash outgo of $120 million (Rs569.79 crore) from present 53.1%. Source: LatestNews-Home - Livemint.com | 12 Jun 2009 | 11:29 am Close: Sensex drops 1.1%, but post 14th weekly riseMumbai: Indian shares fell 1.1% on Friday as investors took profits on a more than 90% rally since early March, but notched their 14th straight weekly gain for the first time in four years. The market initially rode a rally across Asia and rose as much as 1.2% after upbeat US and Chinese economic data boosted sentiment. But an unexpected rise in Indian factory output in April scotched any chance for more rate cuts. “We think monetary policy easing is at an end. Policy rates have come down aggressively and there is excess liquidity in the system,” Goldman Sachs economist Pranjul Bhandari said. Profit-takers targeted engineering and construction firm Larsen & Toubro, which almost tripled since early March, and government-run State Bank of India that had surged 83 percent in the period. Leading listed developer DLF Ltd and top mortgage lender Housing Development Finance Corp were the other major losers. The 30-share BSE index ended down 1.13%, or 173.53 points, at 15,237.94, with 26 stocks declining. The benchmark rose 0.9% on the week. The 50-share NSE index fell 1.17% to 4,583.40. The index has leapt 83% since 9 March, dwarfing the 26% rise during its 16-week winning streak between May-August 2005. The rally was largely driven by foreign funds who ploughed more than $7.5 billion into the market since mid-March. Rising optimism about the global economy and hopes for pro-market reforms after the ruling coalition was re-elected last month has also underpinned the market. The market is up 58% this year, after plunging by more than half in 2008 when foreign investors withdrew $13 billion. However, there are concerns the run-up is overdone, with valuations not in line with fundamentals. “Not much aggressive buying like before is seen in the market. Many people are sitting on big profits and looking to cash in,” R. Sriram, a technical analyst at ICICI Securities, said. “Even though there may be some buying on dips, investors will be cautious and wait for the budget.” The coalition government, which was voted back with stronger mandate, is expected to pursue investor-friendly reforms in the annual budget in early July to boost growth. “As the markets gain new heights, investors are now worried whether the rise is too fast to last. We worry as well. But our analysis suggests resistance might be futile,” Subhajit Gupta, head of research at Reliance Equities, said in a note. “On the back of a sharply improving 2011 earnings that, in turn, should benefit from rising availability and falling cost of capital, we expect the BSE Sensex to rise to 18,000 in the next 200 days.” India’s industrial output rose in April, beating forecasts for a fall, driven by a pick-up in domestic demand that analysts said confirmed nascent signs of recovery and an end to the central bank’s rate-cutting cycle. Factory output in April rose 1.4% from a year earlier, recovering from a revised fall of 0.8% in March and bettering forecasts for a decline of 0.2%, adding to signs from China that activity in emerging economies was picking up. “Output growth almost certainly bottomed on a year-on-year basis in March and we are looking for a healthy upward trend to develop from here,” HSBC economist Robert Prior-Wandesforde said. Larsen & Toubro shed 2.6% to Rs1,582.45, while State Bank of India dropped 3.5% to Rs1,637 and HDFC slipped 2.8% to Rs2,281.40. DLF fell 5.8% to Rs368.50 after gaining 185% since early March. Energy giant Reliance Industries, which has the most weight in the main index, bucked the trend and rose 2.5% to Rs2,356.80. Sesa Goa rose as much as 12.2% to Rs215.50, its highest since 2 June last year, after it acquired the mining assets of Dempo Group in the western state of Goa for Rs1,750 crore ($368 million). Shares ended up 5.6% at Rs202.90. “We are encouraged by Sesa’s proposed acquisition of Dempo’s mining assets and by management’s ability to deliver on its promise to utilize its strong balance sheet to enhance Sesa’s size and competitiveness,” Morgan Stanley analyst Vipul Prasad said. The deal could add value to the firm, “especially due to opportunities to share infrastructure in Goa and possibility of further exploration by Dempo”, he wrote in a note. In the broader section, losers led gainers by almost 3 to 1 on relatively moderate volume of 564.5 million shares. Source: Home - Livemint.com | 12 Jun 2009 | 11:18 am 1.3 mn job losses likely in 2009-10: UNCTADAbout 1.3 million people are likely to lose jobs in the export units in the current financial year due to recession in the developed countries, an UNCTAD study on Friday said.Source: India Business News | Business News - Times of India | 12 Jun 2009 | 11:17 am India shares drop 1.1pct, but post 14th weekly rise - Reuters
Source: Google News India - Business | 12 Jun 2009 | 11:17 am Sensex falls for the second consecutive dayThe Bombay Stock Exchange benchmark Sensex fell for the second straight day by losing another one per cent on profit-selling as investors judged the 90 per cent rally as overdone.Source: India Business News | Business News - Times of India | 12 Jun 2009 | 11:07 am Textile min says to seek tax cuts for sector - Reuters India
Source: Google News India - Business | 12 Jun 2009 | 11:07 am Govt to exempt textile sector from service taxNew Delhi: India will try to reduce taxes and interest rates for the textile industry to provide relief for the embattled sector, Union textiles minister said on Friday. “As part of a short-term strategy, the government will strive to rationalize fiscal structure, exempt service tax, reduce interest rates on pre- and post-shipment credit and facilitate faster clearance of arrears on terminal excise duties and central sales tax,” Dayanidhi Maran told an industry conference. India’s overseas textile sales, about 13% of all exports, have been hit by declining demand from key markets like the United States and Europe, as well as a firming rupee. The Indian rupee has risen 2.4% against the dollar so far in 2009, after declining 19% last year, making exports less competitive. Maran said textile exports were flat in the year to March 2009 from a year ago, when they stood at $22 billion, adding efforts were being made to get exports back to their earlier growth rate of 7-8%. “All the exporters are trying to get back to the regular process of 7-8% growth year on year. Industry is quite optimistic and I am also quite optimistic we will be able to achieve that.” Earlier this month, Maran said the $52-billion labour intensive industry needed more fiscal stimulus and would need investments of Rs30000 crore each year to sustain an annual growth rate of 8-10%. Maran also said he had no objection to higher minimum support prices (MSP) for cotton, as long as it did not hurt the textile sector. The government had hiked the MSP for cotton, a key raw material for textile makers, by 33-40% last October, leading to concerns it may lower the competitiveness of textile firms. He said the textile ministry would work with the agriculture ministry to ensure cotton prices do not hurt industry. “We will be working closely with the agriculture ministry to ensure we do not tilt the balance (between industry and farmers) anyway.” Maran said the ministry would strive to create 10 million additional employment opportunities in the sector, which provides direct employment to about 330 lakh people. India’s textile and clothing industry contributes 4% to the GDP, 14% to industrial production and 12% to export earnings of the country. Source: Home - Livemint.com | 12 Jun 2009 | 11:06 am See robust growth in FY10: Engineers IndiaMukesh Rohatgi of Engineers India said the company should see a very robust growth in FY10. Speaking on divestment, he said, I dont think there is any talk at the moment about divestment in EIL by the government.Source: Moneycontrol Top Headlines | 12 Jun 2009 | 11:00 am Worst of crisis is past for oil markets: OpecVienna: Opec, oil producers’ cartel said that the worst of the impact from the economic crisis was past for the oil markets, as it fractionally reduced its demand estimate for 2009 on Friday. “In light of the considerable challenges the world economy and commodity markets, particularly the oil market, have undergone the worst appears to be behind us,” said Opec latest monthly report. “As the world economy stabilises, the world oil demand appears to be settling down,” it said. “Industrial production activities are steadying and in some parts of the world have even improved slightly.This should stop the bleeding in oil demand. There are no significant downward revisions to our previous oil demand forecasts.” Opec estimated that demand would contract by 1.62 million barrels per day (bpd) or 1.89% in 2009 — only a marginal downward revision in demand from its earlier forecast. In its previous monthly bulletin released in May, Opec had been pencilling in a contraction of 1.57 million bpd or 1.83% for 2009. Nevertheless, uncertainties remained, Opec cautioned. “US oil demand is the wild card and any further downward adjustment in the country’s oil demand would have an impact on total world oil demand,” it said. Source: LatestNews-Home - Livemint.com | 12 Jun 2009 | 11:00 am Network 18 raises Rs 204.92cr via QIP issueNetwork 18 raises Rs 204.92 crore via a qualified placement issue of 1.57 crore shares at Rs 130 per share.Source: Moneycontrol Top Headlines | 12 Jun 2009 | 10:57 am McNally Bharat gains 4% on Rs 300cr order - Business Standard
Source: Google News India - Business | 12 Jun 2009 | 10:52 am BFSI, high tech telecom to recover first: InfosysS Gopalakrishnan, CEO and MD, Infosys Technologies said he expected dollarrupee to be volatile in shortterm. \"If I look at core sectors for IT services industry in India, I think BFSI (Banking, Financial Services and Insurance) and high tech telecom will probably see the recovery first,\" he added.Source: Moneycontrol Top Headlines | 12 Jun 2009 | 10:50 am No positive signs for world trade: WTO chiefParis: World Trade Organization (WTO) head Pascal Lamy said on Friday that he saw no ‘positive sign’ for world trade which has been battered by the global economic crisis. “I do not share the optimism” of some governments for an economic recovery, “because from the point of view of international trade, I do not see any positive sign at the moment,” Lamy said. He reiterated the WTO’s forecast of a 9% drop in world trade this year, “unprecedented since the last world war.” “There is nothing to say that we are not still deep in this crisis which has begun and will continue,” he said, warning that developing countries in particular would face “social consequences.” The World Bank said on Thursday that the global economy was set to contract some 3% this year, sharper than previously estimated, urging more aid for developing countries. Source: LatestNews-Home - Livemint.com | 12 Jun 2009 | 10:37 am Micro, cottage industries seek protection from pvt banksRepresentatives of Micro and Cottage industries on Friday asked the District Collector to take steps to protect them from goons of private banks.Source: Daily News & Analysis: Money News | 12 Jun 2009 | 10:28 am Mitsubishi in talks for coal plant in AustraliaTokyo: Japan’s Mitsubishi Heavy Industries is close to signing a deal with Australia’s Queenlsand state to build the world’s first large low-emission coal power plant, a company official said Friday. The firm will likely sign a deal with an entity affiliated with the state government and make an announcement as early as this month, the official said, speaking on condition of anonymity as the talks were still ongoing. The power plant would feature both coal gasification combined cycle (IGCC) technology and carbon-capture-and-storage (CCS) capability, promising to reduce carbon dioxide emissions by as much as 90%, he said. While plants using either technology already exist around the world, a plant combining both would be a world-first, the official said. IGCC turns coal into gas to burn to generate electricity, resulting in lower emissions. CCS is a technology that solidifies carbon dioxide so it can be stored deep underground rather than enter the atmosphere. The plant is projected to cost at least ¥200 billion ($2.04 billion), the company official said. Media reports said it is slated to start operating in 2015. Australia, home to a heavily polluting coal industry, this year launched an institute to develop CCS and other “clean coal” technology. Mitsubishi Heavy Industries shares rose 4.6% to ¥409 Friday. Source: World Business - Livemint.com | 12 Jun 2009 | 10:28 am India’s consumers draw investors from China storyHong Kong/Mumbai: While investors hope that consumer spending growth in China will eventually balance its export dependence, in the short term it is India that presents more opportunity. Economists crow over the long-term domestic growth prospects in both emerging Asian giants, which is likely to be led by a young generation of spenders eager to buy clothes, computers, cars and other goods. Until recently, China’s massive government stimulus spending worth 6% of gross domestic product was the biggest draw in Asia for investors chasing growth. However, last month’s stunning election victory by India’s Congress-led coalition, which allowed the grouping to secure a parliamentary majority, has turned the heads of some fund managers to the consumer-oriented sectors in India. In addition, India’s valuations are cheaper, suggesting more upside potential for any investments. “For the first time in 12 years, I am more confident of India than China because India has made good macro improvements,” said Stephen Roach, chairman of Morgan Stanley Asia, while in Mumbai. “It has well managed companies, entrepreneurial talent, English-speaking population, well developed capital markets and now the political will to reform,” he said. Investors have had every reason to look at India’s consumer market anyhow. The median age in the billion-plus population is 25 years and private-sector consumption makes up about 60 percent of economic activity. Consulting group A T Kearney says the sector will grow 63% between 2008 and 2013 to become a $833 billion market. By comparison, the median age in China’s billion-plus population is slightly older, at 30 years, and the private sector makes up a smaller part of the economy at around 40%. “Changes in consumption patterns in China will occur gradually. It won’t happen overnight. Indian consumers have shown themselves willing to spend more of their income, and changes in the government will act as a catalyst more immediately in the next 12 months,” said Robert Tucker, investment director of Asian equities at Halbis, a unit of HSBC Global Asset Management in Hong Kong. Since Beijing announced spending of yuan 4 trillion ($588 billion) in November to support its economy, portfolio flows have chased China’s domestic growth story. But India’s election results in mid May have added to the consumer appeal of the country because the ruling coalition’s strong position is expected to translate into a slew of incremental reforms. Such reforms are expected to relax foreign direct investment limits for single and multi-brand companies in the retail sector, Credit Suisse analysts said in a research note. The impact would be high because the retail sector is fragmented and dominated by small, independently-owned stores. So any chains, which make up just 5% of stores, would be prime investment targets, such as Pantaloon, Shopper’s Stop Ltd, Vishal Retail Ltd and Koutons, but the likelihood of it happening in the next 12 months is low. Shopping for better bargains in India China’s valuations in the consumer discretionary sector have risen more rapidly than India’s, all the more reason why asset managers have been sifting through Indian markets in search of value. At the beginning of the year, 12-month forward price-to-earning multiples were higher in India at 9.0 times compared with 7.81 times in China, figures from global estimates tracker I/B/E/S show. Now they are 13.95 times in India and 15.32 times in China. Not only are India’s consumer discretionary stocks cheaper than China’s, the broad market is outperforming as well. Within India, retailers Pantaloon and Shopper’s Stop have outperformed the main Bombay stock index by a wide margin in the last 90 days by more than doubling their returns compared with the index’s 78%. “Going by our bottom-up investment strategy, China has attracted a little more interest in the first half. So India may see higher allocation in the second half of the year,” said Mark Konyn, who overseas about $11 billion as the Asia-Pacific chief executive with RCM, a unit of Allianz Global Investors. Few investors doubt that Chinese consumers will continue to take advantage of government incentives and buy big-ticket items, like new vehicles. Car sales in May were 829,100, just short of April’s record 831,000. However, economists believe the lack of an institutionalised social insurance system will keep precautionary saving levels high in China, especially so at this time of economic uncertainty and rising job losses. “The welfare system in China is still very weak so even rich people have to make precautionary savings,” said Grace Tam, vice president of investment services at JPMorgan Asset Management in Hong Kong. “Government measures, like increasing the medical insurance coverage, will not change things immediately but they are steps in the right direction to unlock domestic consumption,” she said. Tam added that India has some catch up to do in terms of infrastructure investment, which will speed up the process of migration to cities. Marco Giubin, senior portfolio manager for Mirae Asset’s Asia Pacific consumer equity portfolios, said he expects the Indian government to push through some infrastructure projects with its election mandate, and improved business confidence should stimulate credit flow there. Yet, he said the best way to differentiate Asian portfolios at this stage is by pricing power. “The strength in the demand profile is already well known to a lot of multinational companies, so it’s more about the areas where we see players that get pricing power from their brand or distribution network,” he said. Source: Home - Livemint.com | 12 Jun 2009 | 10:25 am Bharti/MTN bankers set for bumper fee pay-dayHONG KONG/JOHANNESBURG (Reuters) - A complex deal tying up India's Bharti Airtel and South Africa's MTN Group appears to have created two fee streams -- a rare treat for investment bankers at a time when financial institutions are short on cash and deal flow.Source: Reuters: Money News | 12 Jun 2009 | 10:18 am Investors wary as firms share sales mushroomMUMBAI (Reuters) - With its investor roadshow complete, GMR Infrastructure has managed to attract just over half the $1 billion it was initially hoping to raise, according to banking sources -- an ominous sign for issuers looking to cash-in on a stock market rally.Source: Reuters: Money News | 12 Jun 2009 | 9:56 am Windows 7 will ship without IE browser in EuropeSan Francisco: Microsoft on Thursday said regulatory wrangling has prompted it to strip Internet Explorer Web browsers from copies of its Windows 7 operating system to be sold in Europe. The US software giant said it still plans to release its next-generation operating system worldwide on 22 October, but that customers in Europe will have to install Web browsers of their choice. “We’re committed to making Windows 7 available in Europe at the same time that it launches in the rest of the world, but we also must comply with European competition law as we launch the product,” Microsoft deputy general counsel Dave Heiner said in a written release. “Given the pending legal proceeding, we’ve decided that instead of including Internet Explorer in Windows 7 in Europe, we will offer it separately and on an easy-to-install basis to both computer manufacturers and users.” Microsoft announced the development this week so computer makers can adapt to installing Web browsers in new machines running on the US software giant’s new operating system, according to Heiner. “We’re committed to launching Windows 7 on time in Europe, so we need to address the legal realities in Europe, including the risk of large fines,” Heiner said. “We believe that this new approach, while not our first choice, is the best path forward given the ongoing legal case in Europe.” Microsoft is defending itself in the European Union against accusations of unfairly crushing rivals in the Web browser market. The European Commission, Europe’s top competition watchdog, opened a new front in its epic antitrust battle with Microsoft in January, hitting the company with fresh charges of unfairly squashing competition. Microsoft is to defend itself at a hearing, which companies are allowed to do under EU antitrust rules. If Microsoft fails to beat back the charges, the commission could slap the company with huge new fines and order it to change its ways. The commission on Thursday expressed skepticism over the Microsoft move and said it will decide soon whether it believes the software powerhouse has abused its dominant position in the market and what remedies are needed. “In terms of potential remedies, if the Commission were to find that Microsoft had committed an abuse, the Commission has suggested that consumers should be offered a choice of browser not that Windows should be supplied without a browser at all,” it said in a statement. But it said Microsoft’s approach of offering the program to computer manufacturers “may potentially be more positive”. However, the commission said if Microsoft’s behavior was found to be abusive that it would have to evaluate whether the change is “sufficient to create genuine consumer choice on the web browser market”. The commission accuses Microsoft of crushing rivals by bundling IE into its ubiquitous Windows personal computer operating system, giving the program an unfair advantage over competitors’ browsers. Heiner said Microsoft expects that stripping IE from Windows 7 will bolster its position that it is not bundling software in order to suffocate competition. Microsoft appears to be striving to clear away obstacles to adoption of Windows 7, according to analyst Michael Cherry of Directions On Microsoft, a private firm that tracks the Redmond, Washington colossus. The operating system’s predecessor, Vista, has gotten ongoing criticism and been shunned by many computer users. Microsoft wants Windows 7 to be embraced worldwide. In what could be a competitive opportunity for Google, shipping Windows 7 without IE frees computer manufacturers to make deals to pre-install other browsers such as the US Internet titan’s Chrome. Source: Tech News - Livemint.com | 12 Jun 2009 | 9:53 am After Mohan's exit, Subbarao to handle monetary policy DeptWith two Deputy Governor posts falling vacant, the Reserve Bank has reallocated portfolios and Governor D Subbarao would handle the monetary policy department directly.Source: Daily News & Analysis: Money News | 12 Jun 2009 | 9:52 am Europe shares gain; Novartis rises, oils fallLondon: European shares rose on Friday morning as positive data from China helped lift investor spirits, while Novartis gained after it made its first batch of H1N1 vaccine ahead of expectations. By 2:17pm, the pan-European FTSEurofirst 300 was up 0.1% at 888.72 points. The index has risen around 37% since reaching a low in early March. “Last night we got better than expected Chinese data, following better than expected US data yesterday ... We are getting a view that we can come out of the recession and have a reasonable degree of economic recovery globally,” said Bernard McAlinden, market strategist at NCB Stockbrokers. China’s May factory output rose more than forecast and retail sales growth accelerated, giving new impetus to investor hopes the world’s third-largest economy can lead a global revival. On Thursday data showed sales at US retailers rose in May for the first time in three months, and the number of workers filing new applications for jobless benefits fell for a fourth straight week last week. Drugmakers were the biggest gainers with Novartis up 1.9% after saying it had produced a first batch of a vaccine to fight the H1N1 flu outbreak, which will start clinical trials in July. The company said it expects to be able to ramp up manufacture rapidly. GlaxoSmithKline, AstraZeneca and Sanofi-Aventis were 0.8 to 2.8 percent higher. Across Europe, the FTSE 100 index was up 0.04%, Germany’s DAX was down 0.2% and France’s CAC 40 was up 0.03%. Banks reverse earlier losses Banks recovered from earlier losses as Deutsche Bank said most European banks would pass a “stress test”, although stocks within the sector were mixed. BNP Paribas, UBS, Royal Bank of Scotland were up 0.9 to 4%. British bank Barclays lost 1.5% after agreeing to sell its investment arm BGI for $13.5 billion. Energy stocks were lower as crude slid towards $72 a barrel, as investors locked in gains from a near eight-month high settlement a day ago. Cairn Energy, Tullow Oil, Royal Dutch Shell and Total were down 0.3 to 1.4%. Miners were in the doldrums as copper fell 1.3%. Vedanta Resources dropped 5% after the group launched a $1.0 billion convertible bond issue, partly to help finance takeovers and to boost ownership of subsidiaries. Antofagasta, BHP Billiton, Eurasian Natural Resources Corporation, Rio Tinto and Xstrata were down 0.6 to 2.6%. Later in the session, investors may focus on the G8 finance minsters meeting in Italy. “The finance meeting will be interesting to see what leads it may provide. There is still obviously the concern of potential contagion coming out of eastern Europe and whether we are getting any stability, though I do get the impression there is some,” said Justin Urquhart Stewart, director at Seven Investment. Source: Home - Livemint.com | 12 Jun 2009 | 9:47 am Bharti, MTN bankers set for bumper fee pay-dayHong Kong / Johannesburg: A complex deal tying up India’s Bharti Airtel and South Africa’s MTN Group appears to have created two fee streams — a rare treat for investment bankers at a time when financial institutions are short on cash and deal flow. Bharti’s adviser is Standard Chartered, while Bank of America-Merrill Lynch and Deutsche Bank are on MTN’s side. A Bharti-MTN deal would generate around $106 million in fees, split between the banks, according to calculations by Thomson Reuters and Freeman & Co. Bharti has said the deal, which is likely to involve both companies buying into the other, is worth around $23 billion, although Thomson Reuters calculations suggest Bharti’s purchase of an MTN stake is worth $11.4 billion, and MTN’s buy into Bharti is worth $8.8 billion — a combined deal value of $20.2 billion. Whatever the exact price, the deal could mean a bumper pay day for three banks who were outside the top three in Thomson Reuters global M&A league tables last year. Fee estimation is, at best, an inexact science, with most fees privately negotiated. Thomson Reuters and Freeman use industry standard percentages and equations to calculate their estimates — which could be way off the real value. Still, the data indicates the banks will reap a bigger-than-average windfall. The three banks declined to comment for this story. MTN, Africa’s biggest mobile operator and Bharti, India’s leading cellular firm, revived talks last month aimed at creating the world’s third-biggest wireless group with more than 200 million subscribers and combined revenue of $20 billion. They are discussing an initial cash and share swap deal that could lead to a full merger. The cross-acquisition structure means the banks can claim double credit as sell-side and buy-side advisers to each client, according to Thomson Reuters. For example, Standard Chartered would get $21.6 million for advising Bharti selling to MTN, and $24.3 million for advising Bharti on buying into MTN, for a total $47.3 million in fees. The average fee for acquisitions over $1 billion is running at around $24.8 million in total, not per bank. The Thomson-Freeman estimate has Deutsche and Merrill getting $12.8 million each for advising MTN on the buyside, and $17 million each on the sellside, for a combined total of $58.5 million. The big fee pay out on this deal also reflects the fact that there are few advisers involved. By comparison, a dozen banks were involved in BHP Billiton’s ultimately fruitless hostile bid last year for rival Rio Tinto. Despite the big ticket price, the number of bankers involved lowered the estimated fees they would all have got. “The fee estimate, at least on the MTN side, actually sounds low to me,” said a source familiar with the deal who was told what the Thomson Reuters-Freemon calculations were. Relationships Matter The deal, if it closes, is a feather in the cap for StanChart and Deutsche, which have weathered the financial storm better than many of their peers, and a big boost for Merrill Lynch, whose franchise has struggled since its near collapse last year and rescue by Bank of America Corp. Stanchart’s relationship with Bharti is helped in part by Sunil Mittal, Bharti’s billionaire chairman, being a non-executive director at the bank. Deutsche’s relationship with MTN goes back at least to 2006 when MTN’s African and Middle East spree of smaller acquisitions culminated in the $5 billion purchase of Investcom — the 11th biggest M&A deal in South Africa in 15 years. “Every banker in town has knocked on MTN’s door at some stage,” said a Johannesburg-based banker. “So has every operator with global ambitions.” The Investcom deal caught markets off guard and was viewed at the time as a bold venture, taking MTN into war-scarred countries such as Afghanistan and Sudan just as it launched an ambitious new business in Iran. Deutsche was also called in last year when MTN held talks that ultimately collapsed with Bharti and its Indian rival Reliance Communications. The bank recently replaced Merrill as MTN’s sponsor on the Johannesburg Stock Exchange (JSE). Merrill also advised MTN on last year’s talks with Bharti and Reliance. Source: Home - Livemint.com | 12 Jun 2009 | 9:12 am Industry grows 1.4% in April; solid show power generationGiving early signs of economic recovery, industrial production grew 1.4 per cent in April after contraction for months together since September when global financial crisis deepened.Source: Daily News & Analysis: Money News | 12 Jun 2009 | 9:04 am Swine flu declared a \'pandemic\', first in 41 yearsThe World Health Organization (WHO) has declared swine flu a \'pandemic\'. Swine flu has thus become the first global pandemic in 41 years. Official reports say there are 28,000 cases of swine flu globally.Source: Moneycontrol Top Headlines | 12 Jun 2009 | 8:52 am LT makes Rs 1,037 cr by exiting UltraTechEngineering and construction major Larsen and Toubro has made a little over Rs 1,000 crore profit through sale of its residual stake in UltraTech Cement.Source: Moneycontrol Top Headlines | 12 Jun 2009 | 8:50 am Gold prices down; buying recedesMumbai: India gold prices edged lower following overseas markets, with domestic buying appetite receding as the wedding season neared its end, dealers said. The most active August contract was 0.42% lower at Rs14,604 per 10 grams at 1:48pm. Overseas gold, which guides the domestic market, also fell as a stronger dollar and firmer equity markets eroded the precious metal’s appeal as an alternative investment. “Enquiries are coming in but nothing is materialising. Even weddings are coming to an end,” said a state-run bank dealer in Mumbai. The current wedding season in India ends in June. However, there could be intermittent buying if prices fall by around 5%, traders said. “We could see bouts of buying if prices fall Rsto 14,000,” said another dealer with a private bank in Mumbai. Source: Home - Livemint.com | 12 Jun 2009 | 8:47 am Next ISRO launch in July-AugustThiruvananthapuram: The Indian Space Research Organisation plans to launch its indigenously built satellite ‘Ocean Sat’ on Polar Satellite Launch Vehicle by July-August, ISRO chairman G Madhavan Nair said here Friday. “It will be a unique mission and the satellite would enable us to study the sea surface, wind and also track down the fishing zones,” Nair told reporters on the sidelines of a national seminar on ‘Aerospace Expanding Frontiers -Technologies and Challenges’ here. “We are planning the mission by July end or early August from the launch pad in Sriharikota,” he said. “Chandrayaan has completed its mission and it was a 100% success,” Nair said when asked about the country’s first moon-mission. “We have mapped the entire lunar surface and the data collected have been given to scientific community for analysing, results of which will be out soon,” he said. Nair said no trace of water was found on the Moon’s surface. “But, we have found traces of magnesium and calcium.” Earlier, inaugurating the seminar, Nair said country would be capable of developing its own ‘Capsule´ to transport human beings to space by 2015. ‘Space Travel’ is an important part of ISRO’s future mission programmes, Nair said, adding developing technology for the same was a big challenge before the country. Source: Tech News - Livemint.com | 12 Jun 2009 | 8:46 am India parts makers soften blow from GM collapseMUMBAI (Reuters) - The blow from the slow and prolonged collapse of auto giant General Motors Corp has landed softly on Indian auto parts makers who continue to supply its small and medium cars and cut credit risks.Source: Reuters: Money News | 12 Jun 2009 | 8:06 am Morgan Stanley top Asia banker resigns, co-heads namedHong Kong: Morgan Stanley has said that its head of Asia Pacific investment banking, Matthew Ginsburg, has resigned and named co-heads to replace him, amid speculation that Ginsburg is heading to Barclays. According to sources close to the matter, Ginsburg, a veteran Asia banker, is expected to take the top Asia Pacific investment banking job at Barclays, a slot open since March. Barclays declined to comment. Ginsburg did not return messages. Morgan Stanley’s spokesman confirmed the report, saying that Ginsburg was leaving and Gokul Laroia and Kate Richdale would become co-heads of Asia Pacific investment banking. Laroia has been with Morgan Stanley for more than 14 years, most recently as head of global capital markets for Asia, while Richdale has been with the bank for nearly a decade, most recently as the CEO for Southeast Asia. Barclays’ former head of Asia-Pacific investment banking, Darcy Lai, left the bank in March. His job has been open ever since, with Barclays looking for a person with banking and equity capital market experience as the debt focused-firm builds out an equity platform. Ginsburg would fit that profile. He became Morgan Stanley’s Asia Pacific investment banking head in May 2006, when Michael Berchtold relocated to the US. Ginsburg was previously head of the Asia Pacific financial institutions group, and has deep experience in both debt and equity capital markets. Ginsburg, an American from the Boston area, has been in Asia for at least 15 years, and with Morgan Stanley for more than a decade, sources say. He was previously at what is now Credit Suisse. Sources say that Ginsburg had been eyed for other top banking jobs in Asia, including openings at Citigroup and Deutsche Bank. The unnamed sources were not authorised to speak on the record about Ginsburg’s next move. They cautioned that a final decision had not yet been made on the Barclays job. Source: World Business - Livemint.com | 12 Jun 2009 | 7:26 am Swine flu: health minister says no need to panic New Delhi: With swine flu being declared a pandemic, the government today said that there was no need for panic as all precautions have been taken to ensure that the disease does not spread in the country. Union health minister Ghulam Nabi Azad said that the number of persons infected in the country is too less and too small compared to its size and population. “I don’t think there is any need for panic. So far our country is concerned in view of the size and population of the country, the number of persons infected is too less and too small,” he said. The minister, however, said that it could not be a reason for not taking any precaution. His comments came a day after the World Health Organisation (WHO) declared the disease as a pandemic, raising its alert to maximum ‘level six´ as more swine flu cases were reported from across the world, including India. In India, two more persons in Delhi and one in Goa tested positive for swine flu yesterday, taking the total number of such cases to 15. “As a matter of fact we have already started taking action on this right from day one and a number of precautions have been already taken,” Azad said. On a request from the health ministry, the government has already asked its missions in countries affected by swine flu to urgently get in touch with the host governments to ensure screening of outbound passengers. Source: Home - Livemint.com | 12 Jun 2009 | 7:08 am Industry grows by 1.4% in AprilIn what could be seen as early sign of recovery, industrial growth turned positive for April at 1.4%.Source: India Business News | Business News - Times of India | 12 Jun 2009 | 7:03 am Downturn therapy: Chinese balm proves effective for Indian IT firmsMumbai: When Tata Consultancy Services, India’s top software services firm, set up a development centre in Hangzhou in China, one of the requests it had for the city’s vice mayor was for vegetarian food. Less than three months later, an Indian restaurant was fully functional in the eastern Chinese city for TCS’s Indian workers, a signal of the high priority China has given to growing business ties with India. “The Chinese government has always rolled out the red carpet for us,” said Girija Pande, head of TCS in Asia Pacific. Despite a long border dispute that saw the two nations go to war in 1962, China is India’s biggest trading partner in Asia. Some companies like TCS hope these ties could prove more resilient to the impact of the financial slowdown than business with the United States and Europe, a sign of shifting global economic sands as BRIC (Brazil, Russia, India and China) countries grow in wealth and clout. Also Read Back-office service firms’ new profile “Entering China was part of our emerging markets strategy,” Pande said. “And now we’ve seen that not only is growth faster, they’ve also fared better in the crisis.” Bilateral trade between China and India, old partners along the Silk Road, is valued at about $38 billion now, and India has the potential to export $157 billion in goods and services to China by 2020, Goldman Sachs has forecast. From textiles and chemicals to IT, China has unseated Japan and is expected to soon replace the United States as India’s top trade partner. That may happen sooner than expected as the financial crisis has slowed IT spending in developed markets. “Let’s admit it: China is a large opportunity,” N. Chandrasekhar, chief operating officer at TCS, said recently. “Yes, there will be conflicts and challenges, but the opportunity is so huge.” Complementary TCS, which gets more than half its revenue from North America, was the first Indian software firm in China in 2002. China had a thriving hardware industry and a small software sector it was determined to develop along the lines of India’s $60-billion a year world-class industry. So, in 2005, the Chinese government invited Indian software firms to partner it in a joint venture. TCS won that bid and TCS China, in which the Indian firm owns two-thirds, was formed in 2006. Microsoft later took a near-9% stake in the venture. “When we first went in, we only had two concerns: given we were an Indian firm, would we be able to recruit local people? And, who would our clients be?” Pande said. As it turned out, the Chinese IT industry and IT students were well aware of TCS, and the Tata Group firm had no difficulty replicating its model of recruiting locals and training them. Starting with multinational clients such as General Electric, Motorola and Cummins, TCS was profitable in China in 15 months, and is now targeting local firms. “There are several large Chinese firms like Huawei and Haier that are going global. And everyone knows India and China are where the next multinationals will emerge,” Pande said, referring to Huawei Technologies Co Ltd and Haier Electronics Group Co Ltd. Business in auto manufacturing, textiles and chemicals has risen, but it is in IT the two are especially complementary, he said, with their focus on “cost-effective” hardware and software. Indeed, PC maker Lenovo has found a ready market in India, and Indian software firms including Infosys Technologies, Wipro and Satyam Computer Services have followed in TCS’s footsteps, after initial concerns about intellectual property rights. Asia makes up 12% of TCS’s revenues now, and will likely contribute about 15-17% of revenues in 5 years, Pande estimates, when they will be about 5,000-strong in China. “The opportunity in China is for us to take,” Pande said. “We’ve grown steadily and slowly, following the old (Deng Xiaoping) saying that we have in all our offices there: ‘You cross the river by feeling the stones’.” Source: Tech News - Livemint.com | 12 Jun 2009 | 5:59 am Rupee strengthens by 19 paise on Asian cuesIn active trade at the Interbank Foreign Exchange market, the domestic currency gained 19 paise to quote at 47.41 over its previous close of 47.60/61.Source: Daily News & Analysis: Money News | 12 Jun 2009 | 5:55 am Sensex rises 133 points to 15,544.23The Sensex recovered 133 points in early trade, tracking a firm Asian trend, on emergence of buying by funds in fundamentally strong shares.Source: Daily News & Analysis: Money News | 12 Jun 2009 | 5:53 am BlackRock buys Barclays BGI for $13.5 bnNew York: US money manager BlackRock bought Barclays Global Investors, the investment arm of British bank Barclays, for $13.5 billion, BlackRock said in a statement on Thursday. The purchase — which is still subject to approval by Barclays shareholders — would double BlackRock’s size and create a firm managing assets worth some $2.7 trillion, employing over 9,000 people in 24 countries, according to the New York-based investment group. In the deal, including BGI’s market-leading ETF platform iShares, BlackRock would acquire BGI for $6.6 billion cash and 37.8 million shares of common and common equivalents. The shares will represent a 4.9% voting interest and an aggregate 19.9% economic interest in the combined firm, which will be renamed BlackRock Global Investors, the statement read. The combination of BlackRock and BGI would bring together market leaders in active and index strategies to create the preeminent asset management firm operating under the name BlackRock Global Investors, the company said. The transaction would create an independent and fully integrated asset management firm with combined assets under management of over $2.7 trillion. BGI, one of Barclays’ most valuable branches with some $1.5 trillion in assets under management, has attracted interest from several buyers since April, but in recent days BlackRock was reportedly the favorite to swoop in for the deal. If finalized the transaction will provide a valuable influx of cash for Barclays, which has hoped to strengthen its capital without resorting to assistance from the British government — something the bank has avoided so far during the world economic crisis. “We are incredibly excited about the potential to significantly expand the scale and scope of our work with investors throughout the world,” said BlackRock CEO Laurence Fink. He said: “The combination of active and passive investment products will be unsurpassed, and will enhance our ability to offer comprehensive solutions and tailored portfolios to institutional and retail clients.” Blake Grossman, the current BGI chief executive will stay on to serve as a vice chairman of the combined firm, Fink confirmed in a statement. Barclays in April agreed to sell iShares to private equity group CVC Capital Partners for $4.4 billion to help the bank avoid having to join a government insurance scheme for risky assets. However Barclays has the right to break the deal and sell to a third party up until late June. The firm’s products will include equities, fixed income, cash management and alternatives, and will offer clients diversified access to global markets through separate accounts, common trust funds, mutual funds, ETFs, hedge funds, and closed-end funds, the statement read. Source: World Business - Livemint.com | 12 Jun 2009 | 5:20 am Bt Brinjal to hit market, despite oppositionBT brinjal - the first food crop under evaluation - is all set to be introduced in the Indian market before year-end by a Maharashtra-based company.Source: India Business News | Business News - Times of India | 12 Jun 2009 | 5:02 am Rupee strengthens by 19 paise on Asian cuesRupee appreciated by 19 paise against the dollar in early trade on Friday taking cue from strong Asian currencies.Source: India Business News | Business News - Times of India | 12 Jun 2009 | 4:26 am NBFCs reduce credit offtake from banksIn view of the low credit offtake, non-banking finance companies (NBFCs) are pre-paying bankSource: Business Line - Home Page | 12 Jun 2009 | 12:00 am Govt savings instruments: Cutting interest rates not bankableCommercial banks have requested the government to lower interest rates under the National Savings Scheme (NSS) to facilitate reductions in deposit and lending rates. The argument is that a better return on savings in the former than from the latterSource: Business Line - Home Page | 12 Jun 2009 | 12:00 am L&T makes Rs 1,037 cr by exiting UltraTechMumbai, June 11 Engineering and construction major Larsen and Toubro has made a little over Rs 1,000 crore profit through sale of its residual stake in UltraTechSource: Business Line - Home Page | 12 Jun 2009 | 12:00 am Sesa Goa to buy Dempo’s mining assets for Rs 1,750 crMumbai, June 11 Sesa Goa, a Vedanta Group company, has agreed to acquire the mining assets of Dempo Group for Rs 1,750 crore in an all-cash deal. The assets include mining leases, rights and related infrastructure inSource: Business Line - Home Page | 12 Jun 2009 | 12:00 am Tata Tea to integrate its beverages brandsMumbai, June 11 Tata Tea Group has initiated a strategic reorganisation of its beverage business to focus on becoming a major global brand like Coke, Pepsi or Unilever.Source: Business Line - Home Page | 12 Jun 2009 | 12:00 am Bring home the world on a single lineNew Delhi, June 11 Mrs Vinita Gupta, a housewife living in a residential complex in Greater Noida, does not know that she is among the first in the country to experience the latest in broadband technology — Gigabit-capable Passive OpticalSource: Business Line - Home Page | 12 Jun 2009 | 12:00 am Inflation rate dips to 0.13%; food still dearerNew Delhi, June 11 The annual wholesale price index (WPI)-based inflation rate has further slipped from 0.48 to 0.13 per cent for the week ended May 30.Source: Business Line - Home Page | 12 Jun 2009 | 12:00 am Virtual Pool for those on benchHyderabad, June 11 Satyam Computer Services has decided to launch a `Virtual Pool Program’ starting June, 2009. It will be a one-time initiative to retain talent while addressing staff costs.Source: Business Line - Home Page | 12 Jun 2009 | 12:00 am Delisting: Shareholders get one year to tender sharesMumbai, June 11 Shareholders of a de-listed company will be allowed at least one year after the date of delisting to tender their shares to the promoters of the company, according to the delisting regulations that were notified thisSource: Business Line - Home Page | 12 Jun 2009 | 12:00 am Ashok Leyland (Rs 32.6): SellWe recommend a sell in Ashok Leyland from a short- and medium-term perspective. The stock has been charting a strong up-trend since its January trough of Rs 13.4. The rally that ensued from this level has resulted in a retracement of over 50 perSource: Business Line - Home Page | 12 Jun 2009 | 12:00 am Be pragmatic with the biggest tax reformThe biggest-ever tax reform of the country -- the introduction of Goods & Services Tax (GST) -- is round the corner and each successive government has contributed to this.Source: Daily News & Analysis: Money News | 11 Jun 2009 | 9:40 pm L&T likely to dispose of more unitsThe company, which is into areas as diverse as information technology, defence, engineering and construction, has been trying to get out of many of its units.Source: Daily News & Analysis: Money News | 11 Jun 2009 | 9:37 pm Tax audit report may be made mandatory for e-filing of returnsThe government is considering a proposal to make tax audit reports mandatory for e-filing of income tax returns.Source: Business Standard | Front Page Headlines | 11 Jun 2009 | 7:29 pm Sesa Goa buys Dempo's mining bizIndia Inc seems to have regained its appetite for mergers and acquisitions. In the second-largest acquisition in India's iron ore industry, Sesa Goa, a subsidiary of London-listed Vedanta Resources, today acquired Goa-based Dempo groups mining and maritime businesses for Rs 1,750 crore in an all-cash deal.Source: Business Standard | Front Page Headlines | 11 Jun 2009 | 7:27 pm Firms may get fiscal sops for affirmative action: KhursheedCorporate affairs minister says government is open to considering the proposal.Source: Business Standard | Front Page Headlines | 11 Jun 2009 | 7:25 pm Satyam exec may sell shares in open offerOne of the top executives in Satyam, who qualifies as an insider, may sell his shares in the tech firm in the open offer that kicks off on Friday.Source: India Business News | Business News - Times of India | 11 Jun 2009 | 7:09 pm India may take drug seizure issue to WTOIndia is considering taking the issue of seizures of drug consignments by European customs to the dispute settlement body of the World Trade Organisation.Source: India Business News | Business News - Times of India | 11 Jun 2009 | 7:05 pm IndiGo to enter terminal bizIndia's largest low cost airline, IndiGo, is all set to enter the airport terminal business.Source: India Business News | Business News - Times of India | 11 Jun 2009 | 7:04 pm RBI panel to review prime lending rate practiceAs BPLR of banks looses its relevance, the RBI constituted a working group to find an alternative system to make banking operations transparent.Source: India Business News | Business News - Times of India | 11 Jun 2009 | 7:01 pm Inflation slips to 0.13%, 30-yr lowInflation dipped to 0.13% for the week-ended May 30, the lowest level in the last three decades, government data showed on Thursday.Source: India Business News | Business News - Times of India | 11 Jun 2009 | 6:59 pm India to miss iPhone price cutEntry-level phones now cost six times the US version.Source: Business Standard | Front Page Headlines | 11 Jun 2009 | 6:30 pm EU seeks greater commitment on IPRNew Delhi: The European Union (EU) is pressing for a greater level of commitment on intellectual property rights (IPR) protection from India in the ongoing negotiations on a free trade agreement (FTA) between the two. This has raised concerns in India over access to cheap medicines and agricultural inputs. A draft version of the bilateral negotiations, which was apparently leaked and posted on the Internet, indicates that the FTA would specify the rights and obligations between the two parties beyond those agreed under the Trade Related Intellectual Property Rights (TRIPS) agreement, also known as the TRIPS-plus standards of protection. As a result of the most-favoured-nation clause in the World Trade Organization (WTO) trade law, any TRIPS-plus standard agreed upon with the EU should also be extended automatically and unconditionally to other WTO members without any trade concession from them. “This approach ignores that India...is the home to one of the largest populations of poor people in the world. Higher standards of IPRs protection can only aggravate the exclusion of the poor from access to essential products, such as medicines and inputs for agricultural production...” writes Carlos M. Correa in an analysis of the FTA draft released by Oxfam on 9 June. A senior commerce and industry ministry official, who spoke under condition of anonymity, said it is too premature to draw any conclusion on the negotiations. “Negotiations are still on. They (EU) have their wishlist, we have our wishlist. We have not yet reached that stage of negotiations. We will take a call when we reach that stage,” the official said. “We urge the EU to stop its attempts to dramatically increase intellectual property protection for pharmaceutical products beyond what is already provided for under international trade law, and encourage India to stand firm against the EU’s demands. These demands mean to undermine India’s ability to produce, export, and market low-cost generic versions of life-saving medicines,” said Leena Menghaney of MSF Access Campaign for Essential Medicines. The EU is also demanding that India should extend the monopoly accorded by a patent for up to five additional years in order to compensate for the time required for the marketing approval of a medicinal product. The process, known as evergreening, is a method by which patent holders can extend the patent life of known drugs, thus delaying the entry of generic, low-cost versions of the drugs. The EU is India’s largest source of foreign direct investment, accounting for €10.9 billion (Rs70,959 crore now), or 65% of all foreign direct investment inflows in India in 2007. India was the EU’s ninth most important trading partner in 2007. radhieka.p@livemint.com Source: World Business - Livemint.com | 11 Jun 2009 | 5:15 pm
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