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Cement demand in north, east India strong: ExpertsDemand for north and east India is still strong while west and parts of south India are seeing pressure on prices, say experts.Source: Moneycontrol Top Headlines | 23 Jul 2009 | 1:41 pm Bharti Airtel Q1 Net up 22% at Rs 2,648 cr!Sunil Mittal-led Bharti Airtel on Thursday reported 22.21 percent rise in net profit at Rs 2,647.95 crore for the first quarter ended June 30, 2009.Source: Zee News : Business | 23 Jul 2009 | 12:21 pm Rupee rises by 15 paise to 48.37 a dollar in early trade!The Indian rupee appreciated by 15 paise at 48.37 in early trade on Thursday on increased dollar sales by exporters.Source: Zee News : Business | 23 Jul 2009 | 12:21 pm RBI likely to leave key rates untouched, say bankers!Surplus liquidity in the banking system and low demand for credit might prompt the Reserve Bank of India (RBI) to maintain a status-quo in its key rates, bankers have said.Source: Zee News : Business | 23 Jul 2009 | 12:21 pm June infrastructure output up 6.5% !Six core industries grew by 6.5% in June this year against 5.1% in the same month last year.Source: Zee News : Business | 23 Jul 2009 | 12:21 pm Inflation rises to minus 1.17 percent!Continuing its upward journey, Inflation rose marginally to -1.17 percent for the week ended July 11 against -1.21 percent for the previous week.Source: Zee News : Business | 23 Jul 2009 | 12:21 pm Financial institutions have not changed their behaviour: Obama!President Barack Obama on Thursday said the stabilisation in the America`s financial system is a success story of the last six months.Source: Zee News : Business | 23 Jul 2009 | 12:21 pm Japan trade surplus logs first rise in 20 months!Japan`s trade surplus posted the first rise in 20 months in June, official data showed Thursday, reinforcing a view that the world`s second largest economy is crawling towards a recovery.Source: Zee News : Business | 23 Jul 2009 | 12:21 pm Nuclear power generation may grow 30pc in FY10: CMIE!With the import of 420 tonnes of uranium in the current fiscal, nuclear power generation in India is likely to rise by 30 percent, an economic think-tank has said.Source: Zee News : Business | 23 Jul 2009 | 12:21 pm VW chairman Piech gets upper hand - Reuters
Source: Business - Google News | 23 Jul 2009 | 11:14 am Sensex turns around, up 388 points - Press Trust of India
Source: Business - Google News | 23 Jul 2009 | 11:04 am Marico Q1 net up 21 pct; tad below forecast - Reuters India
Source: Business - Google News | 23 Jul 2009 | 10:56 am Indian shares rise 2.6 pct; Maruti hits record high - Reuters
Source: Business - Google News | 23 Jul 2009 | 10:55 am Moser Baer settles Philips case, sees stable profits aheadMoser Baer has said it has settled the case with Philips relating to license and patenting. In an interview to CNBCTV18, Moser Baer said the case would bring in stability for the company and would end volatility, which was impacting its profits.Source: Moneycontrol Top Headlines | 23 Jul 2009 | 10:53 am Inflation at -1.17% - Business Standard
Source: Business - Google News | 23 Jul 2009 | 10:52 am Porsche axes CEO, sets stage for VW mergerSTUTTGART (Reuters) - Sportscar maker Porsche conceded a months-long power struggle to mass-market rival Volkswagen by axing its chief executive and said it would raise at least 5 billion euros in equity as the two prepared for a merger.Source: Reuters: Money News | 23 Jul 2009 | 10:50 am TIMELINE - Porsche, VW prepare ground for mergerReuters - The board of sportscar maker Porsche conceded a power struggle with mass-market rival Volkswagen on Thursday, by axing its CEO and planning to raise funds to prepare for their merger.Source: Reuters: Money News | 23 Jul 2009 | 10:48 am Strong earnings lead Sensex to sharp gains - NDTV.com
Source: Business - Google News | 23 Jul 2009 | 10:46 am Fiscal deficit a risk to India's ratings - Moody'sKOLKATA, India (Reuters) - India's fiscal deficit will be the biggest risk to its ratings in 2010, a top Moody's executive said on Thursday.Source: Reuters: Money News | 23 Jul 2009 | 10:46 am EBay Inc Q2 profit drops 29%New York: Online auction firm eBay Inc has reported a 29% drop in net profit at $327 million in the second quarter ended 30 June, mainly due to drop in sales of its marketplaces business. The company had a net profit of $460 million in the corresponding year ago period, eBay said in a statement. Net revenue declined four per cent to $2.09 billion in the latest quarter compared to $2.19 billion in the June quarter of 2008. The marketplaces business unit, which consists eBay, Shopping.com, StubHub, Kijiji and other e-commerce sites, recorded revenue of $1.26 billion, a 14% year-over-year decline. The revenue drop was attributable to the impact of the stronger dollar and the impact of challenging macroeconomic conditions, the statement added. “We drove solid second quarter results, with strong momentum and market share gains at PayPal and continued stabilization in our core eBay business,” eBay Inc president and chief executive officer John Donahoe said. However, the year-over-year revenue growth of PayPal and Skype was offset by the effects of the stronger dollar and a modest decline in the marketplaces business, the statement said. ”We are managing our business with focus and discipline,delivering on our commitments while investing in our growth priorities. I am pleased with our pace, our progress and our performance,“ Donahoe said. As of 30 June, eBay’s cash and cash equivalents totaled $2.57 billion compared to $3.19 billion at31 December, 2008. The payments business unit reported a strong quarter with $669.3 million in revenue, an increase of 11% year over year. Net total payment volume (TPV) for the quarter was $16.71 billion, an increase of 12%. The revenue and TPV growth was driven by continued momentum in PayPal Merchant Services and the contribution made by Bill Me Later. In the outlook for the third quarter, eBay expects its net revenues to be in the range of $2.05 billion to $2.15 billion with GAAP earnings per diluted share in the range of $0.22 to $0.24. For the first half of 2009, eBay posted a net income of $684 million as compared to $920 million in the year earlier. Net revenues decreased to $4.11 billion in the six months ended 30 June, 2009 from $4.38 billion in the last fiscal. Source: LatestNews-Home - Livemint.com | 23 Jul 2009 | 10:44 am Shares rise 2.6% on strong corporate earningsMumbai: Indian shares snapped a two-day fall and rallied 2.6% on Thursday to their highest close in almost six weeks as a spate of strong quarterly results boosted the outlook for corporate earnings, while data reinforced improving economic activity. Pacy global equity markets also bolstered investor confidence and fuelled appetite for risk. Maruti Suzuki shot to a record high after the top car maker reported a 25% jump in quarterly profit, against expectations for a drop, as it rode on higher sales and lower raw material costs. Cement maker ACC Ltd, diversified cigarette maker ITC Ltd and biotech firm Biocon Ltd all reported solid quarterly results, drawing investors. Energy giant Reliance Industries, due to report results on Friday, and outsourcer Infosys Technologies, which reported better-than-expected quarterly profit earlier this month, were among the other major gainers. “Overall there is a buoyancy in markets, and India is better off than most of the other markets,” V.K. Sharma, head of research at Anagram Stock Broking, said. “As long as this momentum continues, it will be good for the Indian market.” The index for six infrastructure industries - crude oil, refining, coal, electricity, cement and steel - together grew at an annual an annual rate of 6.5% in June, the fastest pace in 18 months and quicker than the previous month’s rise of 2.8%, data showed on Thursday. Wholesale prices fell for the sixth straight week, bolstering expectations the central bank will hold rates steady at next week’s policy review. But investors in top mobile operator Bharti Airtel were spooked by the drop in a key measure of growth, even though the company posted a forecast-beating 24% jump in quarterly profit. Average revenue per user fell 20.6% as Bharti got more than half of its new users from rural areas, where spending was less than in urban centres. The stock fell 1.1% to Rs813.90 after initially rising as much as 4%. The company’s margins were also being pressured by higher marketing expenses in the face of new competition and more infrastructure spending associated with its expansion into new markets, traders said. The 30-share BSE index ended up 2.61%, or 387.92 points, at 15,231.04, with 28 stocks advancing, after rising as much as 2.8% at one stage. It was the best close since 12 June. The benchmark had shed 2.3% over the past two sessions, after rising 13.4% over the previous five sessions. “Most of the corporate earnings that have come out till now have been a positive surprise for the market, so sentiment is up,” Deven Choksey, chief executive of K.R. Choksey Shares & Securities, said. Global equity markets have been rallying as low interest rates and hundreds of billions of dollars in stimulus spending by governments appears to be putting the world economy on the road to recovery. The BSE index has leapt almost 90% from a 2009 low in early March, and is up 58% this year after slumping by more than half in 2008. Concerns the market was getting expensive have been tempered by the prospect of the economy rebounding in the latter half of 2009 and corporate earnings growth picking up pace. Indian shares may gain 15 to 25% in the next 12 months backed by earning upgrades and signs of healing in the global economy, David Pezarkar, head of equity at Shinsei’s Indian mutual fund unit said. “Small corrections apart, I would say market continues in the upward trajectory,” said Pezarkar, whose firm will launch its first equity fund in India next week. No. 2 IT-services Infosys gained 2.1% to Rs1,959.85 while Reliance, India’s biggest listed firm with the most weight in the main index, advanced 3.1% to Rs2,038.15. Maruti Suzuki raced 6.4% to Rs1,295.55 after hitting a record 1,305.50, ITC added 5.6% to Rs229.95, ACC climbed 5.8% to Rs854.65 and Biocon ended up 3.2% at Rs219.05. Sun Pharmaceutical Industries Ltd fell 7.7% early following reports of a clutch of class action suits filed against its US unit Caraco Pharmaceutical, but later erased the losses and ended up 1.6 percent at Rs1,274.10. In the broader market, gainers led losers by more than 2 to 1 on above-average volume of 458.5 million shares. The 50-share NSE index rose 2.8% to 4,523.75. Asian shares were higher, with Japan’s Nikkei rising 0.7%, while MSCI’s measure of other Asian markets gained 1.2%. At 1021 GMT, the FTSEurofirst 300 index of top European shares was up 0.1%. Source: Home - Livemint.com | 23 Jul 2009 | 10:40 am Marico Q1 net up 21 pct; tad below forecastMUMBAI (Reuters) - Marico Ltd posted a 21 percent rise in first quarter profit, a tad behind analysts' expectations, and said it was "cautiously optimistic" on growth prospects in the near term, partly due to an uncertain monsoon.Source: Reuters: Money News | 23 Jul 2009 | 10:37 am Marico Q1 net up 21%Mumbai: Marico Ltd posted a 21% rise in first quarter profit, a tad behind analysts’ expectations, and said it was “cautiously optimistic” on growth prospects in the near term, partly due to an uncertain monsoon. The personal care products maker on Thursday reported a consolidated net profit of Rs559.73 million, up 21% from a year ago, while sales rose 17% to Rs6.97 billion in April-June. The profit for the quarter was lower by Rs40 million on a one-time loss due to divestment of stake in former unit Sundari LLC to US’ Wellness Systems, Marico said in a statement. A Reuters poll of brokerages had forecast consolidated net profit of Rs563 million on sales of Rs6.8 billion for the quarter. The firm saw growth across mainline brands ‘Parachute’ hair oil and edible oil ‘Saffola’ which helped drive its topline. Parachute, the focus of its hair oil portfolio, grew by over 13% in volume over last year while Saffola recorded similar growth after single-digit rise in previous quarters. Its international FMCG business spanning Bangladesh, the Middle East and North Africa grew 63% on year. But the firm said such volume growth will not be sutainable in coming quarters. “Going forward, in Parachute 13-14% growth in volumes will not be sustainable in my view. You will see volume growth more in the 7-8% range,” Chaitanya Deshpande, Head of Mergers & Acquisitions and Investor Relations, told Reuters. The firm’s coconut oil basket including Parachute and two other brands, Nihar and Oil of Malabar, has a market share of 55% in India. Marico, which has so far remained unaffected by the uncertain monsoon in India said the failure of the monsoon may dampen buying sentiment. “The company has been keeping a cautiously optimistic outlook on the near term,” the statement said, adding the firm has not yet experienced any slowdown in demand due to a poor monsoon. “The whole issue of signs of a poor monsoon will not have any immediate impact but if you project the situation two or three quarters into the future you could have a little bit of a slowdown,” Deshpande said. “For Marico as a company the impact will be a little lower as our portfolio has only 25% coming from the rural markets.” He also said overall revenue growth for the FMCG industry will not be as high as last year as firms raised prices across many categories in the second quarter of last year leading to higher value growth and are unlikely to raise prices now. Marico had cut prices of Saffola by an average of 10% across four variants in April and May. “So, while you might continue to have 11-12% in terms of volume growth the value growth is also likely to be similar. “You will not get too much growth out of pricing. It will be close to zero, because input prices have come down,” he added. Prices of copra and safflower, its key inputs, fell by almost 19% and 14% respectively in the quarter. Marico shares closed down 1.82% at Rs86.2 in a firm Mumbai market. Source: LatestNews-Home - Livemint.com | 23 Jul 2009 | 10:35 am Canon India to invest Rs200 cr, launch 100 productsMumbai: Canon India, maker of digital imaging equipment, plans to invest up to Rs200 crore this year to launch over a hundred new products and increase customer-reach through promotions. “We have a capex plan of Rs100 crore for our Indian operations this (calendar) year, which includes launching over a hundred new products. It is a cash-based investment,” Canon India Pvt Ltd, president and CEO, Kensaku Konishi, said. “That apart, we will spend about Rs80-100 crore in advertising and promotions,” he added. Capital requirement would be met from internal accruals and investment by Canon Singapore. The company is also eyeing a 20-25% growth in topline each year for the next two years, Konishi said. “Last year (2008), we clocked Rs665 crore in revenue. This year, we want to reach a turnover of Rs800 crore and susbsequently Rs1,000 crore by end 2010,” Konishi said. Canon India also plans to augment its workforce to 760 by this year-end by hiring 60 people, Konishi said. It has a 200-strong product portfolio, including digicams, camcorders, printers, scanners, SLR cameras and photocopiers among others. Canon India aims to up its market share to 60% in digital SLR cameras from 50% at present, Konishi said. The company expects government spending to increase, especially in digital scanners and printers and is thus eyeing higher revenues from public sector firms, he said. Canon India currently has an over 3,000-strong distributor network in India. It has manufacturing facilities in Japan, China, Vietnam and Thailand. Source: LatestNews-Home - Livemint.com | 23 Jul 2009 | 10:33 am Credit Suisse's Q2 net beats forecasts despite chargeZURICH (Reuters) - Market share gains in investment banking and hefty wealth management inflows helped Credit Suisse to beat second-quarter profit forecasts on Thursday, despite a large fair value charge on its own debt.Source: Reuters: Money News | 23 Jul 2009 | 10:29 am India MRPL ups 09/10 term oil imports from ADNOC - Reuters India
Source: Business - Google News | 23 Jul 2009 | 10:17 am CPM wary of proposed India-Asean FTA pactNew Delhi: Terming it a possible threat for farmers, Rajya Sabha and CPM member Brinda Karat sharply criticized the India-Asean free trade agreement that proposes to drastically reduce or remove import duties on over 4,000 items of mutual trade in the Upper House on Thursday. Similar concerns were also expressed by the Bharatiya Janata Party and Samajwadi Party. Raising the issue during Zero Hour, Karat said, “Signing of this agreement with South-East Asian countries is going to be devastating for lakhs of farmers.” She said the agreement for duty reduction would cover items like pepper, coffee, tea, rubber, palm oil and cashew among others. External affairs minister S.M. Krishna had said in Phuket (Thailand) on Wednesday that negotiations for India’s Comprehensive Economic Cooperation Agreement (CECA) with Associations of South-East Asian nations have been completed. He indicated CECA may be signed in October this year at the India-Aseansummit in Thailand. Karat, who received overwhelming support from Samajwadi Party and BJP members, demanded the government should take Parliament into confidence before signing this agreement. She said India was going to throw open its markets when most countries are taking measures to protect their own economy amid global recession. Karat said India was also surrendering before developed countries in WTO negotiations by rushing towards Doha Round completion. Source: Home - Livemint.com | 23 Jul 2009 | 10:16 am Apollo Tyres Q1 net profit jumps 95 pc - Hindu
Source: Business - Google News | 23 Jul 2009 | 10:15 am KEC International bags four orders worth Rs 471 cr - Hindu
Source: Business - Google News | 23 Jul 2009 | 10:15 am India will need 1,000 planes in 20 years: BoeingNew Delhi: Indian carriers could require 1,000 aircraft worth $100 billion over the next two decades, according to the Indian unit of the US aeronautical giant Boeing. The bullish estimate on Wednesday from Boeing-India president Dinesh Keskar, came despite the recent decision by India’s largest privately owned carrier, Jet Airways, to defer delivery of seven Boeing aircraft because of declining passenger traffic. Keskar noted that Air India, the ailing state-run carrier, had not deferred deliveries of any of 68 aircraft it had ordered. “A phenomenal growth is likely in India as its economy is in a better shape than the rest of the world and the aviation industry will come out (of the economic slowdown) faster than other sectors,” Keskar said. Projecting annual economic growth of 6.5% percent in India over the next 20 years, Keskar said Boeing forecast the Indian market “will require 1,000 commercial jets valued at approximately $100 billion” over the period. The economic slowdown has shrunk corporate traffic globally by 20% and economy travel by nine percent, but Keskar said Boeing expected a rebound in the Asia-Pacific region driven by India’s future needs. The number of commercial passenger planes in India has grown from 122 in 2003 to 330 in 2009, with 350 currently on order. “The Indian industry has grown by five percent in the last five years but over-capacity remains a problem,” the Boeing executive conceded. “So larger aircraft will be required in smaller quantities because they don’t have a home in this market,” he said, while noting the success in recent years of smaller, budget airlines. Source: LatestNews-Home - Livemint.com | 23 Jul 2009 | 10:15 am No cash? Go to a shop, not ATM!According to an RBI announcement, you can now swipe your debit card at any pointofsale terminal, and withdraw up to Rs 1,000 per day.Source: Moneycontrol Top Headlines | 23 Jul 2009 | 10:13 am Stocks may rise 15-25% in 1 year on high earnings: ShinseiMumbai: Indian shares may gain 15-25% in the next 12 months backed by earning upgrades, pick-up in the capital expenditure (capex) cycle and growing signs the global economy is on the mend, a top fund manager said. While a 10-15% correction was a possibility, stocks will not drop to 2009 lows hit in early March as every dip would attract investors sitting on the sidelines, David Pezarkar, head of equity at Shinsei’s Indian mutual fund unit said. “Small corrections apart, I would say market continues in the upward trajectory,” said Pezarkar, whose firm will launch its first equity fund in India next week. “It doesn’t look like we will see some shocking kind of changes happening. Plus, globally I think a lot of economic indicators will turn positive over the next six months and that will surprise a lot of people,” he said. The fund manager recommended investing in sectors such as auto, technology and metals, where he sees a bounce-back in the short-term, but prefers infrastructure as a long-term bet. Indian stocks have staged one of the best comebacks in the world this year, rising more than 85% from a low hit on 6 March. They now trade at nearly 17 times their forward 12 months earnings from close to nine times in March. While a surge in valuations was making many investors wary, Pezarkar said they were sustainable and would get a boost as economic activity picks up going ahead, and could spark faster earning upgrades, mainly in 2010-11. Fears companies might apply the brakes on their capex spending because of a fund crunch or lack of demand had subsided. “Now it seems at least the announced capex, which was under threat of not happening, at least that, will happen,” he said. Pezarkar, who managed about $2 billion for insurer Bajaj Allianz before joining Shinsei in October last year, said the government’s thrust on infrastructure and stimulus targeted at raising consumption will boost economic activity. Output of India’s infrastructure sector, which accounts for a little over a fourth of industrial output, grew 6.5% in June from a year earlier, higher than an unrevised 2.8% in May, government data showed on Thursday. Stake sales in state-run firms should add strength to the rally in Indian shares, said Pezarkar. He forecast a pick-up in inventory levels, where the drop outstripped the fall in sales on fears the global economic woes would linger for 3-5 years. “If things stabilise then companies will have to build their inventories,” he said, adding production, exports and trade figures should also see a sharp bounce-back. Source: LatestNews-Home - Livemint.com | 23 Jul 2009 | 10:10 am Gold crosses 15K-level at opening after 3-1/2 monthsMumbai: Gold prices crossed 15-K level after a gap of 3-1/2 months on the bullion market in early trade on good demand from stockists triggered by overnight rise in New York market. Silver also rallied smartly on renewed industrial demand. Standard gold (99.5 purity) resumed higher by Rs80 per ten grams to a 3-1/2 months high at Rs15,015 as against Wednesday’s closing level of Rs14,935. The level was not seen since 2 April 2009, when it was quoted at Rs15,080. Pure gold (99.9 purity) also opened higher by Rs85 per ten grams to Rs15,090 from the overnight closing level of Rs15,005. Silver ready (.999 fineness) also shot up by Rs245 per kilo to Rs22,750 from Rs 22,505 Wednesday. Gold futures rose to a six-week high in New York, tracking the equities action on Wall Street, where investors considered better-than-expected corporate earnings and another round of testimony on Capitol Hill by Federal Reserve chief Ben Bernanke. Gold for August delivery rose by $6.40 an ounce to end at $953.30 on the Comex Division of the New York Mercantile Exchange. Silver for September delivery also rose by 23 cents to $13.70 an ounce. Source: LatestNews-Home - Livemint.com | 23 Jul 2009 | 10:06 am Porsche axes CEO, sets stage for VW mergerStuttgart: Sportscar maker Porsche conceded a months-long power struggle to mass-market rival Volkswagen by axing its chief executive and said it would raise at least €5 billion in equity as the two prepared for a merger. After an all-night meeting of its board of directors, Porsche said Wendelin Wiedeking, Germany’s best-paid executive and its CEO for the past 16 years, along with finance chief Holger Haerter, would quit the group immediately. Their hasty exit will be sweetened by payoffs of €50 million and €12.5 million, respectively. Wiedeking, who had opposed selling Porsche to Volkswagen, which would have helped the company reduce the debt he had run up in a botched attempt to take over VW, will be succeeded by Porsche’s production head Michael Macht, the board said in a statement early on Thursday. The meeting of the non-executive directors, which include the Piech and Porsche families that between them control Porsche, approved Wiedeking’s proposal to raise fresh equity — either in cash or through a contribution in kind — and endorsed talks to sell a stake to the Gulf state of Qatar. “This should lay the foundations for the creation of an integrated automobile group consisting of Porsche SE and Volkswagen,” Porsche said. It was unclear from Porsche’s statement who would contribute to the capital increase and whether it would be taken up by Qatar. A Porsche spokesman declined to comment further. The board’s unanimous approval signals that the powerful Porsche and Piech clans may be open to surrendering some of their influence at the maker of the 911 sports coupe. Between them they control 100% of Porsche’s voting shares and have resisted selling a stake to an outsider. At 1:50pm IST, Porsche shares were up 1%, while Volkswagen’s were down around 3%, compared with a 0.8% fall in the DJ Stoxx auto index and a flat German market . Joining Forces A source at Volkswagen, speaking on condition of anonymity, said it was still open whether oil-rich Qatar would take a stake in the Porsche SE holding company or directly in Volkswagen, or in both groups. The issue was due to be discussed by Volkswagen’s own board of directors, which gathers for an extraordinary session on Thursday in Stuttgart, where Porsche’s Zuffenhausen headquarters are based, rather than its own headquarters in Wolfsburg. Volkswagen, Europe’s biggest carmaker, declined to comment. The moves came as Porsche enters the final stretch of negotiations with Volkswagen to create what both sides have called an “integrated” auto group, in which Porsche would essentially become the 10th brand in Volkswagen’s sweeping automotive empire. Porsche SE, the holding company that controls sportscar maker Porsche AG, needs to bolster its finances after accumulating more than €10 billion in debt through its botched attempt to seize control of VW. Porsche was forced to abandon attempts to win control over 75% of VW, leaving it with a stake of nearly 51%. The failed takeover attempt opened the door to Ferdinand Piech, VW’s powerful chairman and himself a part-owner of Porsche, to turn the tables on Porsche. The Porsche and Piech families had been at loggerheads for months over how to resolve the company’s debt woes and the role VW would play. Piech has pushed for VW to take over Porsche, on condition that Porsche fixes its finances first. Source: LatestNews-Home - Livemint.com | 23 Jul 2009 | 9:58 am June infrastructure output jumps, WPI fallsNEW DELHI (Reuters) - Indian infrastructure output grew in June at its fastest pace in 18 months in a sign of improving economic activity while wholesale prices fell for the sixth straight week, bolstering expectations the central bank will hold rates steady at next week's policy review.Source: Reuters: Money News | 23 Jul 2009 | 9:57 am Fujitsu aims to double profit next yearTokyo: Fujitsu Ltd, Japan’s biggest IT services company, said on Thursday it aims to more than double its operating profit next year after restructuring its operations and expanding overseas revenues. Fujitsu, which is trying to catch up with bigger rivals IBM and Hewlett-Packard, aims to boost its operating profit to 200 billion yen ($2.1 billion) for the year ending March 2011, up from a forecast 80 billion yen this year and far above the 132 billion yen consensus of 14 polled analysts. The news sent Fujitsu’s shares up 3.4% yen, while the benchmark Nikkei average rose 0.7%. The effects of a planned sale of its hard drive business to Toshiba Corp, restructuring its chip operations and its April acquisition of Siemens’s share of a PC joint venture will kick in next year, president Kuniaki Nozoe told a news conference. Fujitsu’s loss making system chip operations would also become profitable as early as October-December and earn an annual profit next year on lower fixed costs, he said. Nozoe set out a goal of an operating profit of 250 billion yen and an operating profit margin of more than 5% in the year ending March 2012 - a modest target compared with double-digit margins at its overseas rivals. Japan’s biggest computer server vendor aims to grab more than 40% of its sales from outside Japan in three years’ time, desperate to free itself from a sluggish market at home and to tap the the world’s biggest IT services market in the US. But this year is set to be tough. Orders for Fujitsu’s IT solutions business fell sharply in June, following promising signs of growth in April and May, Nozoe said. “We are not counting on strong IT investment this year,” he said. Fujitsu, whose operating profit halved in the quarter ended on 30 April logged an operating profit margin of 1.5% last year as it grappled with stiff price competition in hard drives, PCs and servers. That missed a previously stated midterm target of 4.1%. Source: LatestNews-Home - Livemint.com | 23 Jul 2009 | 9:53 am North Korea has no friends left: ClintonPhuket: North Korea has no friends left to shield it from the international community’s demands that the country scrap its nuclear activities, US secretary of state Hillary Clinton said on Thursday. Clinton said many nations had told a low-level North Korean delegation at a regional security meeting on the Thai island of Phuket to give up its nuclear weapons. Speaking at a news conference, Clinton said North Korea’s pursuit of its nuclear ambitions could provoke an arms race in North Asia, one of the world’s most dynamic regions and responsible for a sixth of the global economy. “Our partners in the region understand that a nuclear North Korea has far-reaching consequences for the security future of northeast Asia ... This would serve no nation’s interests,” she said on the sidelines of the Association of Southeast Asian Nations (ASEAN) Regional Forum. “There is no place to go for North Korea, they have no friends left that will protect them from the international community’s efforts to move towards denuclearisation.” Clinton said the North Korean delegation gave no sign the country was interested in ending its nuclear programme, which took centre stage at Thursday’s talks after Pyongyang’s recent nuclear and ballistic missile tests. North Korea, bristling at being described by Clinton this week as behaving like an unruly child, responded in kind on Thursday, calling her vulgar and less than clever. The North’s KCNA news agency quoted a foreign ministry spokesman as saying her comments “suggests she is by no means intelligent”. “Sometimes she looks like a primary schoolgirl and sometimes a pensioner going shopping,” KCNA said. Addressing foreign ministers and senior officials from Asia and Europe, Clinton said the United States would work through every avenue to persuade North Korea to eliminate its nuclear programme and normalise relations with the world. “The ASEAN Regional Forum (ARF) can play an important role in achieving this outcome and for continuing to work vigorously to implement Resolution 1874,” she said, referring to a UN Security Council measure agreed after North Korea’s 25 May nuclear test. She pointed to international cooperation in ensuring that a North Korean ship, tracked by the United States in June and July on suspicion of carrying banned arms, did not dock anywhere. It appeared headed toward Myanmar before turning around. “The bottom line is this: If North Korea intends to engage in international commerce, its vessels must conform to the terms of 1874, or find no port,” Clinton said. Clinton gave Pyongyang a choice between more sanctions if it refuses to end its nuclear activities and benefits if it does. “Full normalisation of relations, a permanent peace regime, and significant energy and economic assistance are all possible in the context of full and verifiable denuclearisation,” she said. Ri Heung-sik, director general of North Korea’s foreign ministry, said the incentives were “nonsense”. No luxury boats for Kim In one indication of how sanctions have begun to bite North Korea, The Financial Times reported on Thursday that Italy has blocked the sale of two luxury yachts to North Korea believed to be destined for leader Kim Jong-il. The sale of luxury goods to North Korea is banned under previous UN resolutions. China’s foreign minister Yang Jiechi said while UN Security Council resolutions against North Korea should be implemented, all sides should work to avoid an escalation of tensions. A draft communique to be issued at the end of the meeting said participants wanted ARF to come up with concrete and effective responses to terrorism, transnational crime, nuclear proliferation and maritime security. The statement, obtained by Reuters, also said the group wanted to “overcome security threats and challenges and prevent escalation of potential conflicts”. It made no direct mention of North Korea. Many experts on North Korea have concluded from the reclusive state’s belligerence that Pyongyang wants to be recognised as a nuclear weapons state and will not end its atomic activities. The poor health of North Korean leader Kim, believed to have suffered a stroke a year ago, and uncertainty about who might succeed him has further complicated efforts to persuade Pyongyang to curb its nuclear ambitions. Source: LatestNews-Home - Livemint.com | 23 Jul 2009 | 9:51 am Christie’s first-half sales fall 35%London: Christie’s auction house, the world’s largest, sold art worth £1.2 billion ($1.8 billion) in the first half of 2009, a fall of 35% from the same period last year. Despite the sharp fall, reflecting global economic difficulties, Christie’s said the percentage of lots sold rose by 5% in 2009 to 78.3%. Christie’s, its rival Sotheby’s and smaller auctioneers have said that while the financial crisis has hit prices, demand for choice works has remained relatively stable. But sellers hoping for a return to the giddy heights of a booming art market one or two years ago were less willing to part with their works, meaning lower turnover. Christie’s sold 211 works of art for more than $1 million in the first six months, less than half the 457 sold during the same period last year. Sales totals include private sales of 133 million, a 13% drop year-on-year. “While overall sale volumes have declined across the market, a five percent rise in sold percentages since the beginning of the year, combined with sustained price levels ... demonstrate that art has continued to hold its value,” said Edward Dolman, chief executive officer of Christie’s International. Among the highlights from early 2009 was the Yves Saint Laurent and Pierre Berge collection which raised over €370 million ($470 million) in Paris in February. The top-selling lot in the first half of 2009 was “Les Couscous, tapis bleu et rose” by Henri Matisse, which raised 32 million pounds followed by Constantin Brancusi’s “Madame L.R”, which fetched £26 million. Source: LatestNews-Home - Livemint.com | 23 Jul 2009 | 9:51 am Mobile number portability to miss September deadlineNew Delhi: Mobile number portability will be delayed by at least three months from its scheduled implementation date as the telecom regulator is still busy preparing regulations for the new system. Mobile number portability (MNP) is a service that allows subscribers to retain their existing mobile telephone number when they switch from one service provider to another or from one technology to another of the same service provider. “Mobile number portability will come by the end of this year,” said telecom secretary Siddartha Behura on the sidelines of a conference. Talking about the delay in implementation of MNP, he said, “It is a new thing. Regulations are being prepared on this.” Earlier, the government had said that MNP would come by September this year. The department of telecommunications had issued guidelines for for its implementation in the country in August last year. Subsequently, the DoT issued licences to two companies each serving a separate zone in the country. Telecom regulator Telecom Regulatory Authority of India, or Trai, is working on regulations and the charges for the same. Trai chairman J.S. Sarma said, “Trai already came out with the draft on regulations. We have an open house on this on July 27.” Source: Home - Livemint.com | 23 Jul 2009 | 9:26 am Apollo Tyres sees FY10 sales up 11%New Delhi: Apollo Tyres expects a 11% growth in domestic sales in 2009-10, helped by reviving demand from increased economic activity, and sees margins maintained at current levels, its finance chief said. The tyre maker would hike production to a daily 1,000 tonnes from the current 800 tonnes a day, as expanded capacities came on board, chief financial officer Sunam Sarkar said in an interview on Thursday. Tyre makers have been cheered by signs of recovery in the economy, including rising auto sales and improved freight movement and by easing raw material prices, after a bad 2008-09. Last week, JK Tyre & Industries Ltd reported a doubling of quarterly profit and said it was optimistic on future demand and profitability. “Demand growth remains reasonably strong, so we’re quite upbeat on that front. Raw materials will put some pressure,” Sarkar said over the telephone, after the firm reported a 95% rise in June-quarter profit. “We hope we’ll continue with the efficiencies we’ve been able to squeeze out and continue with similar margins for the rest of the year.” Apollo currently has an operating margin of 16.5% and a net margin of 8%. In the fiscal year to March 2009, it had reported India sales of Rs40.7 billion. Sarkar also said he saw consolidated sales, which include financial of the firm’s South African and Dutch operations, rising an annual 20% from Rs49.84 billion a year ago. Quarterly Results Apollo said its India operations’ profit rose to Rs946.7 million in the first fiscal quarter from Rs486.3 million a year ago, helped by reduced high-cost inventory. Sales rose 9.7% percent to Rs11.80 billion. The firm’s new plant in Chennai would begin commercial production by March, and expansion at its Baroda plant was on schedule, Sarkar added. Shares in the firm, which the market values at around Rs19 billion, had risen 69% in April-June quarter, outpacing the broader market’s 50% rally. By 2:13 pm, the shares were trading 2% lower at Rs37.25 in a Mumbai market that was up 1.48%. Source: Home - Livemint.com | 23 Jul 2009 | 9:25 am Ideacts joins hands with GoogleIdeacts Innovations has joined hands with Google to improve the Web search experience for its cybercafé users.Source: Moneycontrol Top Headlines | 23 Jul 2009 | 8:52 am Bharti disappoints markets but boosts employee revenue efficiency - Economic Times
Source: Business - Google News | 23 Jul 2009 | 8:42 am Falcon Tyres plans to raise Rs 100 cr for expansionFalcon Tyres, a major manufacturer of twowheeler tyres, plans to raise Rs 100 crore through private placement of shares to finance expansion plan and to bring down the promoters shareholding below 75 per cent to remain listed. The company is listed on BSE.Source: Moneycontrol Top Headlines | 23 Jul 2009 | 8:41 am BSNLs mega GSM contract stuck on pricingApart from legal issues, Bharat Sanchar Nigam Ltds mega GSM contract for 93 million connections is now stuck on pricing issues.Source: Moneycontrol Top Headlines | 23 Jul 2009 | 8:37 am SKorea fines Qualcomm $208 mn for unfair tradeSeoul: South Korea’s antitrust watchdog Thursday fined US firm Qualcomm a record 260 billion won ($208 million) for violating fair competition rules by abusing its market monopoly. The Fair Trade Commission (FTC) said in a statement it made the decision after investigating whether the mobile chipmaking giant engaged in improper business practices to bolster its market dominance. The fine is the largest ever imposed by the FTC on a single company. Qualcomm has said its practices did not breach South Korean laws and it would appeal any adverse ruling. The FTC had been reviewing whether the global firm had been selling its code division multiple access (CDMA) system with bundled products, and paying rebates and discounts to its chipset customers. “Qualcomm owns the origin of CDMA technology and occupies around 99.4% in the CDMA modem chip market at home (in Korea), and has strengthened its monopolistic position through those acts,” it said in the statement. The FTC probe stems from complaints by two US companies — Texas Instruments and Broadcom — as well as two smaller companies in South Korea. Broadcom withdrew its complaint after settling with Qualcomm in May. South Korea is one of Qualcomm’s major markets as it is home to Samsung Electronics and LG Electronics, the world’s leading mobile handset manufacturers. In 2006 the FTC fined Microsoft 32.5 billion won for unfair business practices. It fined Intel 26 billion won in 2008 for unfair trade practices in the domestic personal computer market. Source: World Business - Livemint.com | 23 Jul 2009 | 8:35 am June infrastructure output jumps, WPI fallsNew Delhi: Indian infrastructure output grew in June at its fastest pace in 18 months in a sign of improving economic activity while wholesale prices fell for the sixth straight week, bolstering expectations the Reserve Bank of India (RBI) will hold rates steady at next week’s policy review. The six infrastructure industries -- crude oil, refining, coal, electricity, cement and steel -- together grew at an annual rate of 6.5% in June, faster than the previous month’s rise of 2.8%, data showed on Thursday. Separate data showed the wholesale price index fell 1.17% in the 12 months to 11 July, matching a median forecast in a Reuters poll. “Importantly, the demand-side pressures on inflation remain subdued,” said Gunjan Gulati, economist at JPMorgan Chase. “Thus, on the policy front, I do not see the RBI shifting from its easy policy stance, especially since the demand side of the economy is still soft,” he said, referring to the RBI. While the wholesale price index is showing a negative reading due to statistical aberration, India’s consumer price index continues to remain firm at 8.63% until May. The central bank will review its interest rate policy on 28 July, and a Reuters poll of analysts shows interest rates are expected to remain steady. The RBI has cut its key lending rate by 425 basis points since October to lower borrowing costs for firms hit hard by the domestic slowdown and the global slump. Some officials have said a soft interest rate regime is needed for the rest of the fiscal year to help Asia’s No.3 economy return to a higher growth path seen between 2005 to 2008. “The main priority of the government and the central bank will be to revive growth and we expect the central bank to hold rates at the policy review,” said Sujan Hajra, chief economist at Anand Rathi Securities. Bond yields eased slightly on the WPI data. The most-traded 6.07% 2014 government bond traded at 6.50%, lower than the previous close of 6.52%. Bottlenecks Faster growth in infrastructure, which contributes more than a quarter to overall industrial output, raises hopes of accelerated economic growth in 2009-10 (April-March). “The main signal from this is the domestic demand is improving and the worst is behind us,” said Hajra. Shares in infrastructure firms such as Reliance Infrastructure, DLF, Jaiprakash and Larsen & Toubro rose 1.8-4.2%. The benchmark index was up 1.5% at 0800 GMT. Foreign investors cite pot-holed roads, frequent power cuts, and congestion at ports and airports as a deterrent to doing business in Asia’s third largest economy. The high cost of borrowing and reluctance from bankers to fund long-gestation projects have also left private investors wary of investing in infrastructure projects. A severe liquidity crunch globally and then a slowdown since last October stalled many big projects as private firms fumbled to arrange funds for expansion. The government has cut duties and stepped up spending on infrastructure projects to stimulate the economy, and its budget for 2009-10 focused on infrastructure to drive economic growth and generate more jobs. Infrastructure investment makes up less than 6% of India’s gross domestic product and the government aims to increase it to 9%, which means the country will require close to $500 billion in the five-year period to March 2012. The economy expanded by 6.7% in 2008-09, slower than 9% or more in previous three years, and government officials expect it to be around 7% this year. Source: Home - Livemint.com | 23 Jul 2009 | 8:30 am Credit Suisse’s Q2 net beats forecasts despite chargeZurich: Investment banking helped Credit Suisse beat second-quarter profit forecasts on Thursday, despite a large accounting charge as the bank continues to cut its balance sheet and win market share. Credit Suisse said it made a net profit of 1.6 billion Swiss francs ($1.50 billion) in the three months to end-June, which compared with an average forecast of 1.4 billion francs given in a Reuters poll. The bank’s net figure was up 29 % from the previous year but down 22 % from a better than expected 2 billion francs made in the first quarter of the year.. Credit Suisse, which has overtaken UBS as Switzerland’s largest bank by market value, has proved resilient in the subprime crisis but predicted conditions would remain tough. “We expect the global economic environment to remain challenging and uneven business condition to persist,” Chief Executive Brady Dougan said in a statement. “However, if markets continue to improve we expect to see further momentum across all our businesses,” he said. Credit Suisse shares were up 2.9% at 50.35 francs by 0712 GMT. The stock has risen over 72% this year, outperforming a 28% rise in the DJ Stoxx European Banking Index. “Another solid quarter from the big Swiss bank. Particularly gratifying is the profit from investment banking and private banking, return to profit in asset management and net new money in private banking,” Wegelin analysts said in a note. “However renewed net outflows in asset management are a negative.” The asset management business suffered bigger than expected outflows in the quarter even though the division’s income turned slightly positive. Local Rival Credit Suisse has shone in comparison with domestic rival UBS, which has warned of a second-quarter loss and has yet to recover from the subprime shock despite a state cash injection and a new chief executive. The bank took a 1.1 billion Swiss franc fair value charge from improved spreads on its own debt, more than analysts had expected, and a one-off pre-tax hit of 0.5 billion francs for the settling of the Huntsman legal case in the United States. Investment banking was a key earnings driver as the bank posted pre-tax income of 1.655 billion Swiss francs. The world’s fifth biggest wealth manager attracted 8.5 billion francs of net new assets at the wealth management division. Analysts were forecasting 6.8 billion francs according to the Reuters poll. The bank was also able to improve gross margins. But asset management reported net asset outflows of 4.1 billion francs against expectations for stable flows. The bank, one of Europe’s best capitalised, said its Tier 1 capital adequacy ratio had further strengthened to 15.5% from an already robust 14.1% at the end of March. Expectations had built for another strong quarter at Credit Suisse after a stunning first quarter and after US investment bank Goldman Sachs reported an exceptional second-quarter performance. “When you look at the headline number it may not look so appealing in the light of the results of the like of Goldman Sachs,” said David Williams, an analyst with Fox-Pitt, Kelton. “But if you do a bit of digging the numbers are good. They are making a strong performance, they have a fantastic capital base and they are gaining market share.” Source: Home - Livemint.com | 23 Jul 2009 | 7:51 am Asia stocks edge up, eyes on oil, earningsHong Kong: Asian stocks climbed to a 10-month high on Thursday led by energy shares, though some investors wondered if upward momentum from corporate earnings reports justified increasingly pricey valuations. Major European stock market futures edged up, indicating a slightly higher open after the FTSEurofirst 300 index closed at a 2009 high on Wednesday. US stock futures were up 0.4%. The US dollar hovered close to a seven-week low and the yen was being sold off, with traders basically tracking equity markets as a gauge of investor penchant for risk taking. The four-month rally in global stock markets has put pressure on both currencies, which acted as havens throughout the financial crisis. The latest batch of US corporate results have been mixed, with solid earnings from Apple Inc and Starbucks Corp enough to boost the Nasdaq for an 11th straight day, while results from Morgan Stanley were disappointing. Still, the pace of positive revisions to earnings estimates as well as bullish economic signals have investors increasingly optimistic about developing Asia’s growth prospects. “Emerging East Asia could see a V-shaped recovery, with growth dipping sharply in 2009 before regaining last years pace in 2010, said Jong-Wha Lee, chief economist with the Asian Development Bank (ADB), said in a report. However, the ADB report said policymakers should plan exit strategies to unwind policy stimulus to avert inflation expectations, but not yet implement them. Hong Kong’s Hang Seng index was the top gaining market in the region. After a 1.3% dip on Wednesday, the index was up 2.3%, with property stocks and resource-related names among the high flyers. Asia’s top oil refiner, Sinopec, jumped 3.9%. Some investors were beginning to question whether equity prices reflected fundamentals, especially in hot industries. For example valuations of real estate stocks in Hong Kong on the basis of 12-month forward price-to-earnings have been above the 5-year average since May, according to I/B/E/S estimates. Japan’s Nikkei share average ended 0.7% higher as strength in high-tech firms such as Kyocera Corp offset weakness in domestically-oriented companies like KDDI. Since hitting a two-month low on 13 July, the index has rallied 8.2%. The MSCI index of Asia Pacific shares outside Japan was up 0.9%, with gains in the energy sector leading the broader market. Since 13 July, the MSCI index has climbed 13% and it reached its highest level on Thursday since last September. “The market has had a good run ... and a number of people have been suggesting things are getting a little bit expensive,” said Martin Angel, dealer at Patersons Securities Ltd in Australia. Risk seeeking bias Over the next month, oil companies around the world will be reporting their quarterly results. Oil prices shed early losses and turned slightly higher, though the outlook for energy demand from the world’s biggest consumers remained uncertain. US crude for September delivery rose 0.15% to $65.50 a barrel, while Brent also climbed 0.25% to $67.38. The US dollar was under modest pressure, with stocks showing resilience in Asia. The relationship between the dollar and global equities has been strong since March, when investors began to cut their holdings of cash and other safe havens and increased exposure to stocks and other relatively risky assets. The correlation on a 120-day basis between the ICE Futures US dollar index and the MSCI all-country stocks index is at -0.93, the tightest level of the year. “The overall bias is toward risk-seeking, as the stock markets have shown a strong run-up and the Fed has clearly stated it will continue its easy policy, which was a relief for the market,” said Tsutomu Soma, a senior manager of foreign securities at Okasan Securities in Tokyo. The euro rose 0.3% to $1.4248, with the near-term upside target 3 June high of $1.4337. The yen, another common haven, was sold off. The dollar actually rose 0.88% to 94.40 yen, and the euro was up 1.2% to 134.45 yen. Japanese government bonds crept up, despite the rise in equities, as investors focused on bargains rather than sensitivity to risk. The 10-year JGB futures rose 0.12 point, after touching a three-week low on Wednesday. The yield on the 10-year U.S. Treasury note ticked up 1 basis point from Wednesday to 3.56% after climbing about 7 basis points overnight on expectations of abundant new supply in coming days. Source: Home - Livemint.com | 23 Jul 2009 | 7:49 am Bharti Q1 net beats f'cast; MTN deal on trackNEW DELHI (Reuters) - Bharti Airtel reported a forecast-beating 24 percent rise in quarterly profit and said it was still in merger talks with South Africa's MTN, but its shares fell on worries over a slowdown in revenue and profit growth due to cut-throat competition.Source: Reuters: Money News | 23 Jul 2009 | 7:43 am Hyundai posts record profit in Q2, outlook strongSeoul: Hyundai Motor Co’s quarterly profit jumped by nearly half to a record high thanks to a weaker won boosting offshore sales and government incentives at home, factors which should help it outperform rivals this year. South Korea’s Hyundai expects overall vehicle sales to rise 8% this year and its US market share to grow further in the second half, throwing a gauntlet to larger competitors such as Toyota Motors Corp, whose overall US sales dropped by almost 35% in June. Hyundai and its affiliate Kia Motors Corp, together the world’s No.5 car maker, are expected to continue to benefit from increased global appetite for smaller cars and an improving brand image, analysts said. But with the global economy still struggling and automakers reliant on government stimulus packages to boost demand, analysts questioned whether Hyundai’s strong performance could be replicated in the second-half. “Hyundai’s earnings came out quite strong, but that was also helped by government’s stimulus plans,” said Nara Lim, a market analyst at Hanwha Securities. “As global economies, including that of the United States, are still weak, investors are wondering if second half numbers will post as strong as seen in the second quarter.” South Korea’s government has introduced measures such as tax incentives and easier consumer financing to boost domestic car sales. Hyundai shares fell 3%, having jumped more than a third in the quarter ended on 30 June, outpacing the wider market’s 15% gain. “Over the longer term, say six months or a year, Hyundai will be able to continue to increase its market share and sales volume,” said Lee Seung-jun, a fund manager at Midas Asset Management. A strengthening won currency could become cause for concern, but not immediately. “The impact from the recovering won would be tolerable for the time being,” Lee said. “If the won strengthens to the early 1,100 per dollar level it will hurt Hyundai’s profitability, but it’s an unlikely scenario until year-end at least.” Strong Operating Profit To support its ambitions, Hyundai is counting on older standby models along with newer cars such as the i30 wagon and the Genesis coupe. It can take heart from the successful launch of its Genesis sedan, which J.D. Power and Associates ranked as the most smoothly launched vehicle for this year. Hyundai posted a net profit of 811.9 billion won ($649.9 million) in the second quarter, soundly beating a 456 billion won forecast by 10 analysts in a Reuters poll. That compared with a 546.9 billion won net profit a year earlier and a 225 billion won profit posted in the first three months of the year. Contributions from overseas affiliates, especially in China and India, contributed to the strong numbers, Hyundai said. Its operating profit during the quarter ended on 30June was 657.3 billion won, well above a forecast for a 496.5 billion won profit. The company’s operating profit margin was 8%, its higest level in 5 years, it said. The maker of the Elantra compact sedan reported a 662.5 billion won profit a year earlier and a 153.8 billion won profit in the first quarter. The average value of the won in the second quarter was down 20.8% against the dollar from a year earlier although it rose 10.3% from the first quarter, according to Reuters calculations. Sales in the April-June period rose to 8.08 trillion won from 6.03 trillion won in the prior quarter but fell from 9.11 trillion won a year before. For the whole of 2009, Hyundai’s net profit is expected to fall 5% to 1.38 trillion won, a Reuters Estimates poll of 20 brokerages shows. Japanese makers are faring worse, struggling with weaker demand and a firmer yen. Toyota is seen reporting a 354 billion yen ($3.76 billion) net loss in fiscal 2009/10. Source: Home - Livemint.com | 23 Jul 2009 | 7:38 am Maruti Suzuki Q1 net up 25 pct, beats f'castMUMBAI (Reuters) - Maruti Suzuki, India's top carmaker, reported an unexpected 25 percent rise in quarterly net profit as it rode on higher sales, new product launches and a drop in raw material prices.Source: Reuters: Money News | 23 Jul 2009 | 7:09 am Maruti Suzuki Q1 net up 25%, beats forecastMumbai: Maruti Suzuki, India’s top carmaker, reported an unexpected 25% rise in quarterly net profit as it rode on higher sales, new product launches and a drop in raw material prices. Maruti, in which Japan’s Suzuki Motor Corp holds a 54.2% stake, said net profit rose to Rs5.84 billion ($120.4 million) from Rs4.66 billion reported a year ago. That compared with a forecast of Rs4.49 billion in a Reuters poll of 14 brokerages. Maruti sells around one in every two cars in India with models such as the best-selling Alto and recently launched hatchbacks A-Star and Ritz. Shares in Maruti, valued at $7.4 billion, rose 37.5% in the June quarter, lagging the main index that rose 49% and the sector index’s 49% gain. Source: Home - Livemint.com | 23 Jul 2009 | 6:58 am RBI likely to leave key rates untouched, say bankersSurplus liquidity in the banking system and low demand for credit might prompt the Reserve Bank of India (RBI) to maintain a status-quo in its key rates.Source: Daily News & Analysis: Money News | 23 Jul 2009 | 6:52 am Yahoo! swoops for Xoopit email photo finding firmSan Francisco: Yahoo! said on Wednesday it would buy Xoopit, a San Francisco startup specializing in finding and organizing photos buried in email inboxes. “In short, Xoopit will bring phenomenal photo organization, improved photo sharing, and the serendipity of discovering forgotten photos to Yahoo! Mail,” Yahoo! Applications senior vice president Bryan Lamkin said in an online post. Xoopit got Yahoo!’s attention last year when it won a “Hack Day” event at the internet pioneer’s campus in Sunnyvale, California, presenting software for organizing pictures tucked away in Yahoo! Mail inboxes. Xoopit-driven “My Photos” has become the third most popular application at Yahoo! Mail since it was added at the end of last year, according to Lamkin. “Over the last few months, we have left every conversation with the Yahoo! team thinking that together we can wow the world,” Xoopit founders Bijan Mirashi and Jonathan Katzman wrote in a message at their website. “We now get to unleash our ideas on the future of email to a huge global user base. Everyone here is excited and ready to bring photo mojo to more inboxes around the world!” Yahoo! Mail is reported to be the largest Web-based email service with more than 280 million users. “Yahoo! Mail is actually home to one of the largest online photo repositories in the world,” Lamkin said. “For many, email is still best for sharing photos among a more select group of friends or family. And now we’re making it all that much easier for you.” Users of “My Photos” in Yahoo! Mail will see the application evolve, while those using Xoopit in Google’s free online Gmail service will see the feature “remain active for the time being,” according to Xoopit’s founders. Financial details of the deal were not disclosed by the firms. Source: Tech News - Livemint.com | 23 Jul 2009 | 6:43 am Telenor Q2 core profit up, warns on revenuesOslo: Norway’s Telenor ASA posted a bigger-than-expected 6.8% rise in second quarter core earnings but said the global crisis would pressure its revenues and cut its capex. Earnings before interest, tax, depreciation and amortisation (EBITDA) for one of the world’s biggest mobile groups with 168 million subscribers rose to 7.82 billion crowns ($1.24 billion). It beat an average forecast for 7.6 billion crowns in a Reuters poll of 16 analysts, whose predictions ranged between 7.37 and 7.91 billion. “In spite of pressure on the top line development, our operations are improving their performance, resulting in a record high operating cash flow,” chief executive Jan Fredrik Baksaas said in a statement. Telenor, which has operations in 13 countries in Europe and Asia, affirmed its 2009 guidance for an EBITDA margin of around 34% but put a negative slant on its organic growth goal. “Telenor expects organic revenues in line with 2008, however on the negative side,” it said. Previously, Telenor targeted flat 2009 organic revenues compared to last year. Revenues rose 3.3% year-on-year to 24.51 billion crowns in the quarter but lagged analyst views at 24.7 billion. “For the rest of the year we expect revenues to remain under pressure,” Baksaas said, adding that Telenor will scale activities to deliver strong cash flow and sustain market share. It reduced its CAPEX prediction, excluding India investments, to 13-15% of revenues from an earlier 15-17%. An impairment charge of 1.97 billion crowns in its Serbian operations hit its bottom line, with earnings per share down to 0.86 crowns from 2.19 a year ago and missing consensus at 1.53. Telenor said it did not make any provisions for its Russian court case, where it could lose its multi-billion dollar stake in Russian mobile group Vimpelcom. Russian bailiffs seized Telenor’s 30% voting stake in Vimpelcom and plan to auction it off within months, unless the Norwegians pay a $1.7 billion fine awarded by a Siberian court in a contested case a against a tiny Vimpelcom shareholder. “It is more likely than not that this case would not have a material adverse effect on the financial position of the group, and accordingly no provision has been made for any liability or loss of shares in these financial statements,” Telenor said. ($1=6.302 Norwegian crowns) Source: Home - Livemint.com | 23 Jul 2009 | 5:45 am Sensex regains 15k level, surges 255 pts in opening tradeThe Bombay Stock Exchange benchmark Sensex regained 15,000 points-level by rising over 255 points in opening trade on fresh capital inflows by foreign funds.Source: Daily News & Analysis: Money News | 23 Jul 2009 | 5:21 am Top oil companies to report lower Q1 profitsMUMBAI (Reuters) - Top energy firm, Reliance Industries Ltd, is expected to post a dip in quarterly profit on tighter refining margins, while leading oil producer ONGC is forecast to say profit fell on lower crude prices.Source: Reuters: Money News | 23 Jul 2009 | 4:16 am Wipro sees first signs of stabilityBangalore, July 22 Wipro Ltd sees the first signs of stability in its IT business and project ramp-downs are beginning to taper off as volumes start to stabilise. Business Line spoke to Mr Girish Paranjpe, Joint CEO of WiproSource: Business Line - Home Page | 23 Jul 2009 | 12:00 am Wipro Q1 net profit beats Street estimatesBangalore, July 22 Wipro Ltd joined its larger rivals TCS and Infosys to beat street estimates and reported better-than-expected 12 per cent profit growth for the June quarter aided by higher operational efficiencies. It forecast a strongerSource: Business Line - Home Page | 23 Jul 2009 | 12:00 am ULIP products may turn hot on new fee capBL Research Bureau Unit-linked insurance plans (ULIPs), one of the hot products of life insurers, could turn attractive with the regulator, Insurance Regulatory and Development Authority (IRDA), imposing a cap on the charges that insurers levy onSource: Business Line - Home Page | 23 Jul 2009 | 12:00 am Soon, go to a shop to draw moneyMumbai, July 22 Debit card holders will soon be able to get cash up to Rs 1,000 directly from merchant establishments.Source: Business Line - Home Page | 23 Jul 2009 | 12:00 am Indian cos opt for flexible GDRMumbai, July 22 Indian companies prefer to raise money through Global Depository Receipts (GDRs) rather than American Depository Receipts (ADRs) due to the currency and market-related flexibility offered bySource: Business Line - Home Page | 23 Jul 2009 | 12:00 am No talks on deferring aircraft delivery, says BoeingThe US-based aircraft manufacturer Boeing, on Wednesday night, said that there has not been any talk with the State-owned carrier, Air India, for deferring delivery ofSource: Business Line - Home Page | 23 Jul 2009 | 12:00 am BSNL’s mega GSM contract stuck on pricingNew Delhi, July 22 Apart from legal issues, Bharat Sanchar Nigam Ltd’s mega GSM contract for 93 million connections is now stuck on pricing issues.Source: Business Line - Home Page | 23 Jul 2009 | 12:00 am Day Trading GuideDLF is experiencing selling interest at higher levels. Initiate fresh short-position only if the stock decline below Rs 333, with tight stop-loss. We re-affirm our sell recommendation in ICICI Bank andSource: Business Line - Home Page | 23 Jul 2009 | 12:00 am IDFC (Rs 132.25): SellWe recommend a sell in Infrastructure Development Finance Company (IDFC) from a short-term trading perspective. It is evident from the charts of IDFC that the stock bottomed out after nearing its 2006 low of Rs 43 in March. Since then it was onSource: Business Line - Home Page | 23 Jul 2009 | 12:00 am RCom signs Rs 10,000-cr deal with Etisalat to share facilitiesTelecom operator Etisalat DB, formerly known as Swan Telecom, has decided to outsource its telecom infrastructure requirements to the Anil Ambani Group company Reliance Communications as part of a Rs 10,000-crore deal spread over the next 10Source: Business Line - Home Page | 23 Jul 2009 | 12:00 am Reddy's sets heart pill for Dec launchThe 'Red Heart pill', as the product is named internally, will hit the market by December this year, if the trajectory of developments so far is any indication.Source: Daily News & Analysis: Money News | 22 Jul 2009 | 10:29 pm Rel Infratel inks Rs 10k cr tower deal with EtisalatThe deal will start generating cash as soon as Etisalat DB starts rolling out its network in the next few weeks and is expected to generate stable revenues of more than Rs 1,000 crore per year.Source: Daily News & Analysis: Money News | 22 Jul 2009 | 10:28 pm Irda puts a ceiling on charges for UlipsThe Insurance Regulatory & Development Authority (Irda) has put a cap on overall charges that insurance companies can charge subscribers of unit linked insurance policies (Ulips).Source: Daily News & Analysis: Money News | 22 Jul 2009 | 10:25 pm Bad debts could delay portabilityEven as the government is all set to introduce mobile number portability this September, the industry has raised issues and concerns that could delay the launch.Source: Daily News & Analysis: Money News | 22 Jul 2009 | 10:24 pm Margin fillipWipro posted better than expected numbers for the quarter ended June. Earnings before interest and tax (ebit) of the company's IT services business increased 0.4% over the March quarter.Source: Daily News & Analysis: Money News | 22 Jul 2009 | 10:15 pm Natco recall a case to bolster drug controlPitfalls in the Indian drug regulations came to light last week when it was reported that a newly launched anti-cancer drug was asked to be withdrawn by the Drug Controller General of India.Source: Daily News & Analysis: Money News | 22 Jul 2009 | 10:12 pm Bhaskar Group invests Rs 315 cr in printing infrastructureThe Bhaskar Group, India's largest newspaper group, announced it has invested Rs 315 crore into upgrading of printing infrastructure and machinery.Source: Daily News & Analysis: Money News | 22 Jul 2009 | 10:10 pm India Cements to pump Rs 600 cr into Indo ZincIndia Cements has earmarked a capital outlay of Rs 600 crore to get Indo Zinc's cement plant in Rajasthan up and running by mid-2010.Source: Daily News & Analysis: Money News | 22 Jul 2009 | 10:09 pm Bharti deal: MTN, PIC representatives in Mumbai for talksMTN board member and a representative from PIC, MTN\'s largest shareholder, are in Mumbai, reports CNCBTV18, quoting sources. It is believed that MTN and PIC representatives met bankers and investors and the deal is still on track.Source: Moneycontrol Top Headlines | 22 Jul 2009 | 9:09 pm Overseas investors buy the India story againi-Bankers say election results made all the difference; Asians contributed 40-45% to GDR subscriptions.Source: Business Standard | Front Page Headlines | 22 Jul 2009 | 6:47 pm DoT may cancel rural licence fee waiverA bitter battle between the finance ministry and the Department of Telecommunications (DoT) over their jurisdiction might force the latter to withdraw its decision to waive licence fees for fixed-line service operators in rural areas.Source: Business Standard | Front Page Headlines | 22 Jul 2009 | 6:42 pm Shriram Transport Finance\'s issue of NCDs upto Rs 1000crShriram Transport Finance Company Limited, one of the largest asset financing NBFCs in India, plans to enter the debt capital market on 27 July, 2009 with a public issue of Non Convertible Debentures aggregating up to Rs 500 crores with an option to retain oversubscription of upto Rs. 500 crores for issuance of additional NCDsSource: Moneycontrol Top Headlines | 22 Jul 2009 | 6:41 pm NHPC IPO may raise Rs 1,850 crThe government is set to exceed its 2009-10 disinvestment target of Rs 1,120 crore through the first company that is slated to go to the markets this year NHPC.Source: Business Standard | Front Page Headlines | 22 Jul 2009 | 6:40 pm PSU sell-off planning to begin in AugustDisinvestment ball starts rolling: 15 companies shortlisted.Source: Business Standard | Front Page Headlines | 22 Jul 2009 | 6:37 pm Costly drugs prompt exclusivity debateA bitter congressional fight over the cost of super-expensive biotechnology drugs has come down to a single, hotly debated number: How many years should makers of those drugs be exempt from generic competition? But what few people in Washington seem to recognize is that this magic number may ultimately not matter as much as the most vitriolic debaters insist. At issue are such drugs as Biogen Idec Inc.’s Avonex, for multiple sclerosis, which costs at least $20,000 a year; Genentech Inc.’s Avastin for cancer, which costs at least $50,000; and several Genzyme drugs for rare diseases that can cost $200,000 a year or more.  Complex affair: Vials of Avonex, an expensive multiple sclerosis drug, from Biogen Idec Inc. Bloomberg But now Congress, as a cost-cutting piece of the overall health care effort, is preparing legislation to enable the Food and Drug Administration (FDA) to approve copycat versions of biologic drugs. That could save consumers, insurers and the government billions of dollars in the coming years. The trick is to allow competition without undermining the financial incentives the pharmaceutical industry needs to undertake the risky job of developing the next drugs for cancer and other diseases. That is where the magic year number comes in. Trade groups for big pharma and biotech firms say that to recoup their investments, they need an exclusivity period that would last 12-4 years from the time FDA approves a drug for sale. Consumer groups, insurers, employers and generic drug firms say anything more than five years would eviscerate any potential savings from the new competition. But in reality, neither the threat to innovation nor the potential savings from generic competition are as great as claimed. For starters, whatever the exclusivity period, biologic drugs would also continue to be protected from copycats by patents. And in many cases, the patent protection would last longer than the exclusivity period, making the congressionally mandated exclusivity a moot point. Because it is harder and costlier to make biologic drugs than it is to copy pills, fewer generic competitors are likely to enter the fray. Many experts, including the Federal Trade Commission, expect price declines of more like 10-40% in biologics. ©2009/The New York Times Source: World Business - Livemint.com | 22 Jul 2009 | 6:17 pm IRDA caps charges on ULIPs; effective from Oct 1, 2009Only a few weeks back, SEBI did away with entry loads on MFs and changed the charges structure. Today, the Insurance Regulatory Authority of India (IRDA), capped charges on ULIPs.Source: Moneycontrol Top Headlines | 22 Jul 2009 | 6:11 pm US law firm files case against Caraco PharmaMumbai: US law firm Izard Nobel Llp earlier this week filed a lawsuit seeking class action status against Caraco Pharmaceutical Laboratories Ltd, claiming that Caraco and some of its officers and directors violated US federal securities laws. Caraco is the US subsidiary of Indian drug maker Sun Pharmaceutical Industries Ltd.  Legal wrangle: A Sun Pharma lab in Mumbai. Caraco Pharma currently contributes about 30% of the drug maker’s US revenue. Bloomberg The suit was filed in the US district court of Michigan on behalf of investors who purchased Caraco shares between May 2008 and June 2009. Class action is a legal procedure against a person or legal entity that is alleged to have caused severe damage/loss to a group of people. In the Caraco case, it is the loss to equity investors due to the company’s alleged negligence. The law firm has invited others who have lost similarly to join the class action by September. In June, the US Food and Drug Administration (USFDA) announced that it had seized drug products from Caraco’s Michigan facilities. According to FDA, this action followed the company’s continued failure to meet FDA’s quality manufacturing standard, causing shares of Caraco to fall approximately 43% to $2.39 (Rs116) between May 2008 and June 2009, Izard Nobel said in the lawsuit. The lawsuit alleges that company executives and directors failed to disclose certain vital information including the company’s failure to meet USFDA’s current good manufacturing practice requirements and to take corrective measures. It also claims that the company failure in resolving repeat violations of FDA regulations jeopardized its ability to gain FDA approval. A Sun Pharma spokesperson said the company is not in a position to make any statement on this at the moment. Caraco currently contributes about 30% of Sun’s US revenue. Source: World Business - Livemint.com | 22 Jul 2009 | 4:43 pm Slowdown-hit DollarStore shuts 41 storesNew Delhi: US-based deep discount retailer MyDollarStore Inc., founded by an American of Indian origin, is the latest casualty of the economic slowdown in India that has forced organized retailers to apply the brakes on ambitious expansion plans. The chain, which entered the country in 2004 selling products including imported shampoos and shaving lotions at a price of Rs99 each, has shuttered three-fourths of its 55 stores in the past few months, the company said. It now has 14 stores in the country. The retailer that entered India in 2004 says it wants to get into smaller formats with smaller footprints Mehta had bet that the chain and its stock of inexpensive but quality merchandise would match the Indian concept of paisa vasool (value for money). Organized retailers have experienced a tough infancy in India, confronting soaring real estate prices and other costs during the years of an economic boom, followed by the slowdown that set in last year and dampened consumer demand. The country’s largest discount-store chain, Subhiksha Trading Services Ltd, suspended its operations after it failed to raise cash either through the stock market or from banks. Other retailers including Pantaloon Retail (India) Ltd, Aditya Birla Retail Ltd and Reliance Retail Ltd have closed stores and pruned expansion plans. At least four employees at MyDollarStore interviewed by Mint said they had not been paid salaries for three months. Some employees said the chain was understating the number of stores that had been closed. These employees didn’t want to be named. “There may be some disgruntled employees here and there and somebody is selling a sob story across to you,” said Soumitra Ghatak, chief executive of Sankalp Retail Value Store, which is the master franchisee for MyDollarStore in India. “Those who are on our payroll have been paid; those who are on notice period or on settlements—those (employees) will take some time and that’s it.” Ghatak did not say how many people are currently on the company’s payroll and how many had been laid off. Meanwhile, a person named Imran Sheikh has filed a petition against Sankalp Retail in the Bombay high court under sections 433, 434 and 439 of the Companies Act, according to the court’s website. The sections are related to a company unable to pay its debts, but it’s unclear why Sheikh had filed the case. Mint was unable to contact him or his lawyer. “It’s just a filing of petition (and) we are unaware of the content and since no notice has been served as yet and without seeing the copy of the petition and content we are unable to respond,” Ghatak said. When asked if the company is withholding payments to vendors and suppliers, he said it was the case with almost all retailers. “Vendors payments are usually in a cycle and can get delayed in a cash crunch and those are normal things,” he said. The company said the 14 stores still operating in India include three in Mumbai and one in Noida, a suburb of New Delhi. Employees at the Centre One Mall in Navi Mumbai said the My Dollarstore there has been shut since February, although Ghatak said the store was open. The store in Metro Junction Mall in Mumbai’s Kalyan neighbourhood has been “closed for renovation,” according to Ghatak. However, a person familiar with the situation who didn’t want to be named said the MyDollarStore there had been shut since early this year. Empty racks greet customers at the Noida store. Ghatak said the company is focusing on the “store-in-store” format, opening sales outlets on the premises of “big retailers” that he declined to name. “We have recast our business model and we want to get into smaller formats with smaller footprints and that’s all work-in-progress.” The company plans to open as many as 80 such sales outlets in the next 12-18 months. “Work-in-progress always looks dirtier than what it was originally.” Ghatak said. Source: World Business - Livemint.com | 22 Jul 2009 | 4:16 pm REC to issue 17 cr new shares in QIP or public offerH.D.Khunteta, Director Finance, Rural Electrification Corporation (REC) said in an interview to CNBCTV18 that the company would issue 17 crore new shares in a public offer or QIP. Equity base to rise 20% post share sale, he said.Source: Moneycontrol Top Headlines | 22 Jul 2009 | 2:59 pm NEC to develop roads along northeastern bordersA regional planning body, the North Eastern Council (NEC), plans to develop roads along the the country's northeastern borders to improve the region's connectivity with the rest of the country, an official said here Wednesday.Source: IndiaeNews.com: Business News | 22 Jul 2009 | 2:02 pm Beleaguered Air India announces special faresBeleaguered national carrier Air India, struggling to stay afloat, announced special fares on select domestic routes Wednesdy to attract passengers during the lean monsoon season.Source: IndiaeNews.com: Business News | 22 Jul 2009 | 2:01 pm China opposed India's plan in Manila over Arunachal PradeshChina had opposed India's strategy plan at the Manila-based Asian Development Bank (ADB) because of Beijing's long-standing claim over Arunachal Pradesh, parliament was informed Wednesday.Source: IndiaeNews.com: Business News | 22 Jul 2009 | 2:01 pm Tata Power to raise $335 mn from global investorsLeading private power major Tata Power Wednesday announced plans to raise $335 million through the global depository receipt (GDR) route to fund capital expenditures of its existing power plants.Source: IndiaeNews.com: Business News | 22 Jul 2009 | 2:00 pm Antony defends India-US military pactA day after an uproar in parliament over a pact that will enable the annual inspection of military hardware purchased from the US, Defence Minister A.K. Antony Wednesday defended the measure, saying it was the result of three years of tough efforts and that the government did not have any reservations about it.Source: IndiaeNews.com: Business News | 22 Jul 2009 | 2:00 pm Canara Bank first quarter net zooms 353 percentState-run Canara Bank Wednesday reported a net profit of Rs.555 crore for the first quarter this fiscal, registering a whopping 353 percent year-on-year (YoY) increase over the Rs.123 crore posted in the corresponding quarter year ago.Source: IndiaeNews.com: Business News | 22 Jul 2009 | 2:00 pm Wipro net up 12 percent but IT revenue declinesIndia's third largest IT bellwether, Wipro, remained profitable in the first quarter this fiscal despite marginal revenue decline in its global IT services business sequentially and annually.Source: IndiaeNews.com: Business News | 22 Jul 2009 | 1:32 pm Piramal Healthcare net up 45 percentPiramal Healthcare's net profit in the first quarter this fiscal has risen 45.5 percent to Rs.74 crore, compared to the Rs.51 crore notched up in the corresponding period last year.Source: IndiaeNews.com: Business News | 22 Jul 2009 | 1:32 pm Hopes all but vanish of consolidation in India's style spaceHopes of consolidation in the country's style space have all but vanished with the newly-promoted Fashion and Design Promotion Council (FDPC) Wednesday announcing the debut of its India Fashion and Design Week (IFDW) here in October.Source: IndiaeNews.com: Business News | 22 Jul 2009 | 1:31 pm Nilekani takes over as chief of identity project ThursdayInfosys Technologies co-founder Nandan Mohan Nilekani formally takes over as the chairperson of the newly formed Unique Identity Authority at Yojana Bhavan, the headquarters of the Planning Commission, here Thursday.Source: IndiaeNews.com: Business News | 22 Jul 2009 | 1:30 pm Boeing sees late August WTO ruling in Airbus caseGeneva: The World Trade Organisation (WTO) is likely to deliver a preliminary ruling in the US case against European Union (EU) launch aid for Airbus around the end of August, officials from rival Boeing said on Tuesday. The ruling, to be followed about six months later by a decision in a countersuit brought by the EU over US support for Boeing airliners, would be a first attempt at resolving the multi-billion-dollar Transatlantic dispute. “We trust both governments will take the WTO decision on board, and we will see the end of aircraft subsidies,” Boeing vice-president for government operations Ted Austell said. The WTO panel of judges formed to examine the dispute in 2005 said last October that the case was so complex that it could not rule on it until some time this year. Robert Novick, an attorney with law firm Wilmer Hale, who is an outside legal adviser to Boeing on the case, said the panel had advised the US and EU authorities that it hoped to give them an interim, confidential, ruling in the week of 31 August. Launch aid Both Austell and Novick said Boeing hoped that with a ruling imminent, EU governments would not provide further launch aid to Airbus, a subsidiary of EADS, for its new €11 billion ($15.63 billion) A350 airliner. French and German ministers discussed possible government loans for the A350 at the Paris air show in June, and Britain has also made an offer of financing. New US trade representative Ron Kirk has made it clear that Washington would challenge such aid at the WTO. “We’re hoping the governments won’t do something precipitous before the WTO decision,” Novick told Reuters. Boeing argues that the industry, in which governments play a big role, needs clarification over what counts as illegal subsidies, especially as new entrants such as Canada’s Bombardier and Chinese manufacturers are planning to compete in the long-haul aircraft market. “Boeing and Airbus, the United States and the EU, have a shared interest. They want to make sure that as the industry expands there is sufficient clarity quickly as to what the rules of competition are going to be,” Austell told Reuters. Many rulings in WTO disputes are mixed, and Novick conceded that decisions on some aspects of the case could go against the US government. But it is confident it will win on the main issue. “No one is going to come away from the report unsure that launch aid is a subsidy,” he said. With a first ruling approaching, there is little chance that the case will be resolved by negotiation. Kirk and EU trade chief Catherine Ashton have met several times and agreed to try and settle some disputes bilaterally rather than through litigation. A long-running row over an EU ban on imports of US beef treated with hormones was settled in this way. “They’ve had the opportunity to get together a couple of times... Our understanding is this matter was not part of the discussions,” Austell said. In the first half of this year Airbus sold 90 planes, and received 22 cancellations. But that leaves it far ahead of Boeing, whose 85 new orders in the first half stand against 84 cancellations. Source: World Business - Livemint.com | 22 Jul 2009 | 12:05 pm
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