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See FY10 credit growth at 25%: Federal BankVenugopalan M, Chairman and CEO, Federal Bank feels that the interest rate will remain firm more or less atleast for the next two or three months and thereafter it should go up slightly. He expects credit growth at 1520% for the banking sector. We see companys credit growth at 25% for FY10, he said.Source: Moneycontrol Top Headlines | 10 Sep 2009 | 7:53 am UTV to partner Bloomberg for content and co-brandingMedia and entertainment firm UTV Software on Thursday said it will enter into a strategic partnership with Bloomberg for content sourcing and re-branding its business channel UTVi.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 6:27 am RIL asks Govt to name new customers fast for its KG-D6 gasReliance Industries has asked the government to immediately name new customers of its natural gas, saying it is being forced to produce less than capacity in the absence of mandated buyers.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 6:25 am Jet Airways stalemate: Final decision today, says NAGJet Airways pilots' National Aviators Guild (NAG) will take a final decision today on the ongoing agitation, sources in the union said.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 6:14 am Eight Jet flights cancelled in ChennaiServices of Jet Airways from Chennai continued to remain affected with eight of its flights being cancelled on Thursday.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 6:08 am NIIT order book robust, will improve with govt ordersNIIThas seen a pickup in government tenders post election, says its CEO Vijay Thadani. \"The order book is robust and will further improve with government orders.\" He says the school business is highly capital intensive. However, he quickly adds that the company will have more government school projects compared to their peers.Source: Moneycontrol Top Headlines | 10 Sep 2009 | 6:00 am Jet strike still on, pilots face contempt petitionA crippling strike by Jet pilots entered the third day on Thursday, as a contempt petition was filed against them for defying the Bombay High Court ruling asking them not to halt work.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 5:23 am India, China to help make Asia-Pacific largest aviation marketIndia and China would contribute the most in making the Asia-Pacific region the world's largest aviation market by the year 2028, according to commercial airplane maker Boeing, which expects the region to invest 1.1 trillion dollars in new airplanes over the next 20 years.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 5:16 am Cement prices fall, more cuts likely: Sanjay LadiwalaSanjay Ladiwala said that the cement prices have come down in trade segment by Rs 3 per bag and Mumbai prices have come down by Rs 58 per bag this month.Source: Moneycontrol Top Headlines | 10 Sep 2009 | 5:16 am ISMT to gain from dip in cost; sees FY10 profit at Rs 100crRajiv Goel of ISMT said that the company could now work on full capacity. Going forward, Goel saw the next six month performance inline with last year. \"FY10 operating profit is expected to be over Rs 100 crore.\"Source: Moneycontrol Top Headlines | 10 Sep 2009 | 4:41 am Adlabs to revamp BIG Cinemas operations - Hindu Business Line
Source: Business - Google News | 10 Sep 2009 | 4:30 am BCPL to tie up firms for Rs 5460 cr Assam chemical plant - Business Standard
Source: Business - Google News | 10 Sep 2009 | 4:19 am MTN Shareholders Say They Want More From New Accord With Bharti - Bloomberg
Source: Business - Google News | 10 Sep 2009 | 4:13 am Sensex off highs; banks, pharma up - Economic Times
Source: Business - Google News | 10 Sep 2009 | 4:12 am BSE Sensex falls 0.05 pctMUMBAI (Reuters) – The BSE Sensex erased gains of 1.55 percent and provisionally fell 0.05 percent on Thursday as investors locked in profits after the market had risen for four days in a row.Source: Reuters: Money News | 10 Sep 2009 | 4:07 am ICE Brent rises above $70 on dollar, IEA outlook - Reuters India
Source: Business - Google News | 10 Sep 2009 | 4:06 am Axis Bk\'s $1bn QIP, GDR issue opens; 15% eq dilution likelyAxis Banks qualified institutional placement (QIP) cum global depository receipt (GDR) issue will open for subscription today, reports CNBCTV18 quoting sources. The banks QIP and GDR size is around USD 800 million to 1 billion while the issue is priced around Rs 903 per share and a CMP of Rs 915 a share.Source: Moneycontrol Top Headlines | 10 Sep 2009 | 4:02 am Muthoot murder: Judicial custody for two co-travellersTwo alleged criminals who travelled with Kerala's Muthoot business group scion Paul M. George the night he was murdered were Thursday sent to two weeks of judicial custody by a court here.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 4:01 am India ups cost of living allowance for govt employeesNEW DELHI (Reuters) - India's cabinet on Thursday raised the cost of living allowance paid to federal government staff and pensioners to 27 percent from 22 percent, Information Minister Ambika Soni said.Source: Reuters: Money News | 10 Sep 2009 | 3:54 am Markets turn negative on profit salesMumbai: Indian shares turned negative on Thursday afternoon as investors locked in gains after rising for four sessions in a row. At 3:17pm, the 30-share BSE index was down 0.06% at 16,173.63 points, with 18 of its constituents declining, after rising as much as 1.55 percent earlier in the day. The 50-share NSE index was down 0.09% at 4,809.70. Markets climbed 1.2% in the morning, stretching gains into a fifth consecutive session, supported by firm world markets and hopes the government would focus on ensuring growth. Financial stocks such as private-sector lenders ICICI Bank and HDFC Bank led the rise on signs the easy monetary stance would continue to boost consumer spending. The country’s main economic worry was lifting growth rather than inflation, finance secretary Ashok Chawla said on Wednesday, adding he saw no need for the central bank to change policy. Traders said this indicated interest rates would not rise in a hurry and helped boost sentiment. Telecoms firm Bharti Airtel rose 2.7% to Rs421, after it denied late on Wednesday a media report it had reached an agreement with South Africa’s MTN, and said the merger talks were sill ongoing. At 11:24am, the 30-share BSE index was up 1.23% at 16,383.37 with all but five stocks rising. ICICI Bank was up 4.3% at Rs825, while HDFC Bank rose 1.6% to Rs1,498. Engineering and construction firm Larsen & Toubro gained 1% to Rs1,617, after it said it won orders worth Rs4.05 billion. Metal stocks extended gains with Sterlite Industries and Hindalco rising 2.5% and 2.2% respectively. In the broader market, gainers were more than double the losers in a relatively low volume of 161 million shares. The 50-share NSE index was up 1.14% at 4,869.35. “We are seeing a large breakout after we crossed 4,750,” said Neeraj Dewan, director of Quantum Securities. “These are levels to book profits or at best churn portfolios and not commit cash.” Asian shares were in the green, with Japan’s Nikkei climbing nearly 2%, while MSCI’s measure of other Asian markets was up 1.4%. Source: Home - Livemint.com | 10 Sep 2009 | 3:53 am Inflation up at (-)0.12 pc on higher food prices - Press Trust of India
Source: Business - Google News | 10 Sep 2009 | 3:50 am HIGHLIGHTS - China's Wen says to fend off risks, cites inflationDALIAN, China (Reuters) - Following are highlights of a speech by Chinese Premier Wen Jiabao at a meeting of the World Economic Forum in the northeast Chinese city of Dalian.Source: Reuters: Money News | 10 Sep 2009 | 3:48 am Asia wealth players grow as crisis crimps rivalsSingapore: Asia-Pacific banks are stepping up hiring private bankers and seeking acquisitions to grab market share in an industry so far dominated by foreign players such as UBSand Citigroup. The bold moves signal a shift in the balance of power away from Western banks, who are suffering from massive credit losses and accusations they sold toxic investments to rich clients. Banks in Singapore, Australia, China and Japan are also boosting wealth offerings to benefit from an increasing trend among the rich to invest in their home markets and in simpler financial products. The domestic banks are initially focusing on “high net worth” individuals with $1-$10 million in assets, with an eye on the super rich as they expand in the fast growing markets of China, India and Indonesia. “There is a good window of opportunity for these guys to take market share,” said Bhalaji Raghavan, a senior adviser on banking in Asia at consultancy Capgemini. “If they continue to do well and execute well, I am sure they will gain momentum and become reasonably good banks.” The industry shake-up comes at a time when the rich, burned by bad investments, want better advice, transparency on what they are investing in and real-time data on their trading positions. A PricewaterhouseCoopers survey showed that for 53% of the rich their primary source of financial advice was their own research and knowledge, reflecting a “significant” lack of trust in private bankers. Assets of “high net worth individuals” in Asia dropped 22% to $7.4 trillion in 2008, according to Merrill Lynch/Capgemini’s World Wealth Report 2009. Foreign banks, who have traditionally relied on offshore centres Singapore and Hong Kong to tap rich clients, are also under pressure to move their businesses onshore as a global fight against tax cheats forces countries around the world to ease strict banking secrecy laws. The weakness in the offshore model was thrust into the limelight after Switzerland agreed to reveal names of 4,450 wealthy American clients of UBS in a tax dispute settlement that pierces traditional Swiss banking secrecy. Bold Moves Asian banks are also looking at acquisition opportunities for growth as foreign private banks such as ING, hit by credit woes and a lack of scale, exit the region. ING, which did not even rank among the top 10 players in Asia’s private banking league table last year, is selling its Asian and Swiss units. Singapore’s DBS Group, ranked the sixth biggest private bank in Asia by Calamander Capital in 2008, is one of the bidders, sources have told Reuters. In Australia, the “big four” banks are increasing their dominant share of the wealth business and some, like Australia and New Zealand Banking Group, are building a private banking business overseas. ANZ recently announced plans to hire more than 100 private bankers in Asia over the next 18 months, a small reversal to last year’s job losses that followed a hiring binge between 2004 to mid-2007 when job-hopping and poaching were widespread. Bigger rival National Australia Bank bought Aviva’s wealth management business in Australia, and in July agreed to buy 80.1% of Goldman Sachs JBWere’s private wealth business in Australia and New Zealand. China’s major banks have all launched private banking operations over the past three years, with Bank of China taking the lead in March 2007. The lender is keen to expand in Asia to target Chinese and ethnic Chinese clients. Even in larger economies like India, competition is heating up between foreign banks like Morgan Stanley and Deutsche and home-grown wealth managers. Consultant Celent estimates informal wealth managers such as small brokers and investment advisers control 1.5 times the assets managed by bigger institutions like the private banks. “As the pie grows, Indian players will gain greater market share because this is a business where clients have to feel comfortable about a brand and knowing that the brand will exist in India for a further period of time,” said C. Jayaram, head of the wealth management arm of Kotak Mahindra Bank. Asian banks are trying to gain ground at a time when the rich may be looking to put more money into Asia. The Merrill Lynch/Capgemini report said 68% of overall investment by the rich in Asia-Pacific was in their home markets last year, a level second only to North America’s 81%. “We are excited about the possibility of becoming a bigger player in Asia as it grows in stature in the global market,” said Kwong Kin Mun, DBS head of private banking for Southeast Asia. “In line with DBS’ regional strategy, we also see tremendous wealth creation in countries ranging from China to Indonesia and are keen to make further inroads there.” Foreign banks like UBS and Citigroup, meanwhile, are also not backing away from Asia, where they led the private banking league table last year. “The scale and depth of our business will enable us, simultaneously, to satisfy the demands of an increasingly stringent regulatory environment and the ever-changing needs of our clients as the region returns to growth,” said Christine Ong, head of UBS Wealth Management in Singapore. Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 3:47 am GM to end months of suspense, unveil Opel decisionFrankfurt / Berlin: General Motors was set to end months of suspense over the fate of its Opel unit on Thursday and announce whether it plans to sell the European carmaker to one of two rival bidders. GM said in a statement its board had taken a decision on Opel after a two-day meeting. A Sky News report, citing unnamed sources, said GM had taken a decision to keep the operation. Sources familiar with the proceedings told Reuters GM had dispatched its chief Opel negotiator John Smith to Berlin, where he was expected to brief the trust supervising Opel and German government officials before a news conference scheduled around 4p.m. (1400 GMT). “General Motors’ board of directors approved a course of action for its Opel subsidiary and will be communicating its recommendation to the German government, other European governments, both bidders, employees and the Opel trust board over the next 24 hours,” GM said. It was not immediately clear what action the GM board had chosen after spending the past month weighing the merits of selling its European unit against the cost of keeping it. The decision is being closely watched in Germany, where Opel employ roughly half of its 50,000 European workers at four plants. It also has major sites in Belgium, Britain, Poland and Spain. Chancellor Angela Merkel, facing an election on 27 September, has thrown her weight behind Canadian auto parts group Magna’s bid for Opel, promising €4.5 billion ($6.6 billion) in government guarantees if GM opts for the Russian-backed offer. But GM management has said a rival bid by Brussels-listed RHJ International, which Berlin is refusing to help finance, would be easier to implement. Some elements within the GM board are known to have favoured keeping Opel. GM faced a dilemma with Opel because all of its choices carry risks. The carmaker is struggling to turn itself around under the majority ownership of the US government. Selling to Magna, as urged by the German government, was frowned upon by some GM executives because they feared it risked losing key small car technology and an edge in the fast-growing Russian auto market, people familiar with the deliberations have said. The Magna plan involves an equity stake in Opel for Russia’s Sberbank and a partnership with the Russian automaker GAZ Group. Source: Home - Livemint.com | 10 Sep 2009 | 3:47 am Asia wealth players grow as crisis crimps rivalsSingapore: Asia-Pacific banks are stepping up hiring private bankers and seeking acquisitions to grab market share in an industry so far dominated by foreign players such as UBSand Citigroup. The bold moves signal a shift in the balance of power away from Western banks, who are suffering from massive credit losses and accusations they sold toxic investments to rich clients. Banks in Singapore, Australia, China and Japan are also boosting wealth offerings to benefit from an increasing trend among the rich to invest in their home markets and in simpler financial products. The domestic banks are initially focusing on “high net worth” individuals with $1-$10 million in assets, with an eye on the super rich as they expand in the fast growing markets of China, India and Indonesia. “There is a good window of opportunity for these guys to take market share,” said Bhalaji Raghavan, a senior adviser on banking in Asia at consultancy Capgemini. “If they continue to do well and execute well, I am sure they will gain momentum and become reasonably good banks.” The industry shake-up comes at a time when the rich, burned by bad investments, want better advice, transparency on what they are investing in and real-time data on their trading positions. A PricewaterhouseCoopers survey showed that for 53% of the rich their primary source of financial advice was their own research and knowledge, reflecting a “significant” lack of trust in private bankers. Assets of “high net worth individuals” in Asia dropped 22% to $7.4 trillion in 2008, according to Merrill Lynch/Capgemini’s World Wealth Report 2009. Foreign banks, who have traditionally relied on offshore centres Singapore and Hong Kong to tap rich clients, are also under pressure to move their businesses onshore as a global fight against tax cheats forces countries around the world to ease strict banking secrecy laws. The weakness in the offshore model was thrust into the limelight after Switzerland agreed to reveal names of 4,450 wealthy American clients of UBS in a tax dispute settlement that pierces traditional Swiss banking secrecy. Bold Moves Asian banks are also looking at acquisition opportunities for growth as foreign private banks such as ING, hit by credit woes and a lack of scale, exit the region. ING, which did not even rank among the top 10 players in Asia’s private banking league table last year, is selling its Asian and Swiss units. Singapore’s DBS Group, ranked the sixth biggest private bank in Asia by Calamander Capital in 2008, is one of the bidders, sources have told Reuters. In Australia, the “big four” banks are increasing their dominant share of the wealth business and some, like Australia and New Zealand Banking Group, are building a private banking business overseas. ANZ recently announced plans to hire more than 100 private bankers in Asia over the next 18 months, a small reversal to last year’s job losses that followed a hiring binge between 2004 to mid-2007 when job-hopping and poaching were widespread. Bigger rival National Australia Bank bought Aviva’s wealth management business in Australia, and in July agreed to buy 80.1% of Goldman Sachs JBWere’s private wealth business in Australia and New Zealand. China’s major banks have all launched private banking operations over the past three years, with Bank of China taking the lead in March 2007. The lender is keen to expand in Asia to target Chinese and ethnic Chinese clients. Even in larger economies like India, competition is heating up between foreign banks like Morgan Stanley and Deutsche and home-grown wealth managers. Consultant Celent estimates informal wealth managers such as small brokers and investment advisers control 1.5 times the assets managed by bigger institutions like the private banks. “As the pie grows, Indian players will gain greater market share because this is a business where clients have to feel comfortable about a brand and knowing that the brand will exist in India for a further period of time,” said C. Jayaram, head of the wealth management arm of Kotak Mahindra Bank. Asian banks are trying to gain ground at a time when the rich may be looking to put more money into Asia. The Merrill Lynch/Capgemini report said 68% of overall investment by the rich in Asia-Pacific was in their home markets last year, a level second only to North America’s 81%. “We are excited about the possibility of becoming a bigger player in Asia as it grows in stature in the global market,” said Kwong Kin Mun, DBS head of private banking for Southeast Asia. “In line with DBS’ regional strategy, we also see tremendous wealth creation in countries ranging from China to Indonesia and are keen to make further inroads there.” Foreign banks like UBS and Citigroup, meanwhile, are also not backing away from Asia, where they led the private banking league table last year. “The scale and depth of our business will enable us, simultaneously, to satisfy the demands of an increasingly stringent regulatory environment and the ever-changing needs of our clients as the region returns to growth,” said Christine Ong, head of UBS Wealth Management in Singapore. Source: World Business - Livemint.com | 10 Sep 2009 | 3:47 am GM to end months of suspense, unveil Opel decisionFrankfurt / Berlin: General Motors was set to end months of suspense over the fate of its Opel unit on Thursday and announce whether it plans to sell the European carmaker to one of two rival bidders. GM said in a statement its board had taken a decision on Opel after a two-day meeting. A Sky News report, citing unnamed sources, said GM had taken a decision to keep the operation. Sources familiar with the proceedings told Reuters GM had dispatched its chief Opel negotiator John Smith to Berlin, where he was expected to brief the trust supervising Opel and German government officials before a news conference scheduled around 4p.m. (1400 GMT). “General Motors’ board of directors approved a course of action for its Opel subsidiary and will be communicating its recommendation to the German government, other European governments, both bidders, employees and the Opel trust board over the next 24 hours,” GM said. It was not immediately clear what action the GM board had chosen after spending the past month weighing the merits of selling its European unit against the cost of keeping it. The decision is being closely watched in Germany, where Opel employ roughly half of its 50,000 European workers at four plants. It also has major sites in Belgium, Britain, Poland and Spain. Chancellor Angela Merkel, facing an election on 27 September, has thrown her weight behind Canadian auto parts group Magna’s bid for Opel, promising €4.5 billion ($6.6 billion) in government guarantees if GM opts for the Russian-backed offer. But GM management has said a rival bid by Brussels-listed RHJ International, which Berlin is refusing to help finance, would be easier to implement. Some elements within the GM board are known to have favoured keeping Opel. GM faced a dilemma with Opel because all of its choices carry risks. The carmaker is struggling to turn itself around under the majority ownership of the US government. Selling to Magna, as urged by the German government, was frowned upon by some GM executives because they feared it risked losing key small car technology and an edge in the fast-growing Russian auto market, people familiar with the deliberations have said. The Magna plan involves an equity stake in Opel for Russia’s Sberbank and a partnership with the Russian automaker GAZ Group. Source: World Business - Livemint.com | 10 Sep 2009 | 3:47 am Jet Airways dips 2 pc as pilots strike continuesShares of Jet Airways on Thursday slipped nearly two per cent in morning trade on the Bombay Stock Exchange as pilots kept away from work for the third consecutive day leading to disruption of services.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 3:45 am GM to end months of suspense, unveil Opel decisionFRANKFURT/BERLIN (Reuters) - General Motors was set to end months of suspense over the fate of its Opel unit on Thursday and announce whether it plans to sell the European carmaker to one of two rival bidders.Source: Reuters: Money News | 10 Sep 2009 | 3:43 am Asia wealth players grow as crisis crimps rivalsSINGAPORE (Reuters) - Asia-Pacific banks are stepping up hiring private bankers and seeking acquisitions to grab market share in an industry so far dominated by foreign players such as UBS and Citigroup.Source: Reuters: Money News | 10 Sep 2009 | 3:41 am Reliance sells Oct-March gasoline to TrafiguraSingapore/New Delhi: India’s Reliance Industries sold up to 210,000 tonnes of gasoline for October 2009-March 2010 lifting to Western trader Trafigura at a premium of 80 cents to Singapore’s spot quotes on a free-on-board (FOB) basis, traders said on Thursday. Under the six-month contract, which traders said was sealed about a week ago, Trafigura will lift 30,000-35,000 tonnes of non-oxygenated gasoline a month from the refiner. The autofuel, which contain no additives, will be produced in Reliance’s new 580,000 barrels per day (bdp) refinery in Jamnagar. The privately run firm’s gasoline output will increase substantially soon, as it had in mid-May started a 200,000 barrels per day (bpd) fluidised catalytic cracker (FCC) at the new plant. It also commissioned an 85,000-bpd alkylation unit in mid-August at the new plant, which is situated next to its older 660,000-bpd refinery. “At full-tilt, the new plant produces about 30,000 tonnes of gasoline a day, and they are currently supplying quite a fair bit of their fuels to Africa and the Middle East,” said a trader. The current Asian gasoline market is stronger versus July. This was because recent outages in Taiwan, Indonesia and Vietnam in August had supported sentiment, but going forward, slower demand is expected from Iran, Saudi Arabia and Asia’s top gasoline importer Indonesia. The holiday driving season in the West has also ended around end-August. “The fasting month will be over by late September. So demand in October and the rest of the fourth quarter will not be that robust,” said another trader. Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 3:40 am Govt cuts farm loan interest subsidy to 2%New Delhi: The government on Thursday cut the interest rate subsidy to 2% for this fiscal on farm loans given by the public sector banks from 3% last year. A decision to this effect was taken by the Union Cabinet, information and broadcasting minister Ambika Soni told reporters. The financial implication due to the interest subsidy on farm loans by PSU banks, regional rural banks and co-operative credit institutions were at Rs4,311 crore in 2008-09. It was estimated to be at about Rs4,000 crore in the current fiscal, the minister said. Under the interest subvention scheme, the government will pay 2% interest subsidy to banks for granting short- term crop loan to farmers at a concessional rate of 7%. In the Budget speech this year, finance minister Pranab Mukherjee had said, “I propose to continue the interest subvention scheme for short-term crop loans to farmers for loans up to Rs3 lakh per farmer at the interest rate of 7% per annum”. Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 3:33 am Central government employees to get 5 percent more dearness allowanceThe central government Thursday announced a five percent hike in dearness allowance for its employees and pensioners, with retrospective effect from July 1.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 3:32 am In pics: All new ipods - Times of India
Source: Business - Google News | 10 Sep 2009 | 3:31 am Judicial custody for men who travelled with murdered Muthoot scionTwo alleged criminals who are suspected to have travelled with Paul M. George - scion of Kerala's Muthoot business group - the night he was murdered were sent to two weeks of judicial custody by a court here Thursday.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 3:31 am Hindi or Tamil, Fox Star ready for production in IndiaHaving tapped the Indian market by distributing films like 'Slumdog Millionaire' and 'Quick Gun Murugun', Hollywood studio Fox Star now wants to foray into production by collaborating with the 'best talent'. And language is no bar.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 3:31 am PMO rejects demand for separate fisheries ministryThe Prime Minister's Office (PMO) has rejected a demand for the formation of a ministry for fisheries independent of the agriculture ministry. It says the subject is receiving 'adequate attention' by the United Progressive Alliance (UPA) government.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 3:31 am Detained and released: UAE aircraft leaves KolkataA United Arab Emirates (UAE) Air Force transport plane, which was detained at the Kolkata airport four days ago for carrying weapons and explosives without declaring them, was released Thursday morning.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 3:30 am Released UAE aircraft leaves for ChinaA United Arab Emirates (UAE) Air Force transport plane headed for China following its release Thursday, four days after it was detained at the Kolkata airport for carrying weapons and explosives without declaring them, the defence ministry said.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 3:30 am Jet strike still on, pilots face contempt petition - Economic Times
Source: Business - Google News | 10 Sep 2009 | 3:12 am Money Market updateG-sec Market: The 10-year G-sec 6.90% GOI 2019 opened at a yield of 7.35% compared to previous day closing levels of 7.34%. Market participants are waiting for the OMO and Underwriting results. The 10-year US Treasury yield hardened from 3.47% to 3.48%. The 3-month Interest Rate Future is trading at a level of 8.12%. The 10-year G-sec 6.90% GOI 2019 is likely to trade in the range of 7.33% - 7.39%. Money market: The Call Rate and CBLO rate opened at 3.28% and 2.51%. The money market rates are expected to remain soft tracking comfortable liquidity in the system. Swap Market: The 5Y OIS swap rate traded in the range of 6.41% - 6.46%, compared to previous closing levels of 6.43%. The OIS swap rates are expected to trade range-bound tracking G-sec yields. Forex Market: The INR opened at Rs48.41 against the USD compared to previous closing level of Rs48.51. Rupee is expected to trade in the range of Rs48.30 – 48.50. Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 3:12 am Rupee stronger on stock gains; weak dollarMumbai: The Indian rupee continued to trade stronger in afternoon session on Thursday boosted by over 1% rise in local shares which raised inflows expectations. Losses in the dollar versus majors also underpinned sentiment. At 2:30pm, the partially convertible rupee was at Rs48.38/39 per dollar, stronger than its Wednesday’s close of Rs48.51/52. In early trade, the rupee had gained to Rs48.29, its highest since 14 August. Shares were trading up about a percent, trimming some of its rise in choppy trade after the benchmark index more than doubled in just six months and rose successively for five straight days. Foreigners have bought a net $8.6 billion worth of shares so far in 2009, helping the rupee climb back from record lows of Rs52.2 hit in early March. The dollar hovered close to its lowest in almost a year against a basket of major currencies on Thursday as firmer share and commodity prices undermined flows into the lower-yielding US currency. In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at Rs48.4450 and Rs48.4475 respectively, with the total traded volume on the two exchanges at about $1.1 billion. Source: Home - Livemint.com | 10 Sep 2009 | 3:11 am RNRL files reply to RIL\'s petition in Supreme CourtIn the latest in the battle of the Ambani brothers, Reliance Natural Gas Limited (RNRL) has filed a reply to Reliance Industries (RIL) petition in the Supreme Court, reports CNBCTV18 quoting sources.Source: Moneycontrol Top Headlines | 10 Sep 2009 | 3:09 am Jet Airways stand-off: Final decision today, says NAGJet Airways pilots' National Aviators Guild will take a final decision today on the ongoing agitation, sources in the union said.Source: Daily News & Analysis: Money News | 10 Sep 2009 | 3:06 am Name new customers for KG D6 gas, RIL urges govtNew Delhi: Reliance Industries has asked the government to immediately name new customers of its natural gas, saying it is being forced to produce less than capacity in the absence of mandated buyers. RIL’s eastern offshore KG D6 fields can produce more than 60 million standard cubic meters per day but the firm is being forced to keep output below 40 mmscmd as the government has not yet released allocation to new customers. “There being an immediate demand from the existing customers in various sectors to consume more than 80 mmscmd gas, we once again request you to make additional allocations which will enable us to increase the production of gas from KG D6 to 80 mmscmd,” RIL wrote to the petroleum ministry. The government has allocated 15.1 mmscmd of KG D6 gas to fertilizer units, 3 mmscmd to LPG plants, 18 mmscmd to power firms, 0.83 mmscmd to city gas projects and 3.75 mmscmd to steel plants. Of this firm allocations, customers like NTPC, Dabhol and Essar Power are yet to draw 6.95 mmscmd gas. RIL said because of inability of these companies, 11 mmscmd gas was being sold to the identified power plants on fallback or temporary basis and demanded that this be converted to firm allocation. “This will enable us to maintain a stable production of gas and will also benefit customers because the KG D6 gas is the cheapest gas available in India today,” it stated. RIL said several captive power plants can consume 8-10 mmscmd of gas. “Since captive power plants have already been identified as one of the priority sectors, we request you to allow us to supply gas to these captive power plants.” “As informed earlier, KG D6 currently has a capacity to produce more than 60 mmscmd today and this will increase to 80 mmscmd shortly,” RIL president (gas business) R.P. Sharma wrote to the petroleum ministry on 8 September. The contracting priority released by the government for the power sector customers was valid till 30 September 2009. Also the firm quantity identified is only for 60% of the plant capacity (70% in some cases). “In view of increased gas availability potential, we request that all the allocations be extended till the validity of the contract, ie 5 years, at 90% plant capacity,” it said. Ratnagiri Gas and Power—the firm that runs the Dabhol power plant—has signed contract with RIL to buy 2.7 mmscmd of gas but is not taking the fuel as its current arrangement for sourcing LNG runs up to September end. Essar Power is not taking its allocated 1.08 mmscmd due to issues of pipeline connectivity while 0.50 mmscmd is not being drawn by Gujarat. Even gas utility GAIL India has signed for only 2.59 mmscmd of gas despite being allocated 3 mmscmd for its LPG plants. NTPC has not yet signed the pact for 2.67 mmscmd gas allocated to it. Source: Home - Livemint.com | 10 Sep 2009 | 3:02 am Sensex climbs 248 pts in opening trade on global cuesThe Bombay Stock Exchange benchmark index Sensex surged by over 248 points in opening trade today on increased inflow of foreign funds triggered by firming trend in global markets.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 2:56 am Zee seeks to lower programming costs by 1520%Zee Entertainment Enterprises wants to lower programming costs between 15 and 20 per cent by renegotiating its rates with production houses. It has approached production houses such as Balaji Telefilms, Swastik and Endemol with a fresh round of negotiations for reducing rates which is expected to give a boost to the networks profitability.Source: Moneycontrol Top Headlines | 10 Sep 2009 | 2:51 am Chevron signs $60 bn Australia LNG export dealPerth: US oil firm Chevron has sealed an estimated A$70 billion ($60 billion) worth of gas deals with three North Asian buyers for its massive Gorgon project in Australia, paving the way for a final investment decision in coming weeks. The $42-billion Gorgon project, awaiting final approval from Chevron and its partners, is expected to be given the go ahead by the middle of this month with the sealing of the gas deals. Chevron said on Thursday it would sell Osaka Gas 1.375 million tonnes of LNG per annum (mtpa) over 25 years, and Tokyo Gas 1.1 million tonnes. GS Caltex in South Korea will buy 0.5 million tonnes for up to 20 years. Chevron, which has an unfinalised sales agreement with Chubu Electric for 1.5 mtpa, still has about 3 mtpa of uncontracted gas from Gorgon and said it expects further LNG sales from the project in coming months. “China will probably have appetite for more LNG and South Korea’s Kogas has also expressed interests in buying gas and taking equity in projects, so that’s probably where the rest of Chevron’s gas could go,” said Stuart Baker, an energy analyst at Morgan Stanley. Under the agreement, Chevron will also sell an equity share of 1.25% in the Gorgon project to Osaka Gas and another 1% to Tokyo Gas, reducing Chevron’s stake to 47.75%. Chevron did not disclose the financial details of the LNG and equity sales, but Australian Prime Minister Kevin Rudd said separately that Chevron’s sales agreement would be worth more than A$70 billion ($60 billion) of exports over 25 years. “This is a massive project that will deliver economic growth, income, jobs, prosperity for the nation for decades to come,” Australia Prime Minister Kevin Rudd said. Chevron’s latest gas sales from Gorgon, which finalises agreements first reached in 2005, comes on the heels of a A$50 billion export deal inked by partner ExxonMobil Corp with Chinese state-owned PetroChina last month, and brings total gas sales from the project to an estimated A$200 billion. The proposed 15 million tonnes per annum (mtpa) Gorgon project, which has seen years of delay amid environmental concerns, comprises three production trains and a gas plant for the domestic market. ExxonMobil and Royal Dutch Shell each hold a 25 percent stake in the project. With the Asia-Pacific region seeing around a dozen proposed LNG projects, many of which are racing to come onstream in the 2014-2015 timeframe, some analysts say the global LNG market was unlikely to be able to accommodate all these new capacities. They said projects that failed to secure buyers would be quickly deferred. “A lot of operators have been very optimistic about an explosion of demand, but we hold a more conservative view that demand growth would be slower than expected,” said an analyst who declined to be identified. “If even four of five of the proposed projects around Australia get developed, that would bring more than enough supplies to meet demand,” he said. Gorgon, which will be underpinned by 40 trillion cubic feet of gas resources off western Australia, would be Australia’s largest-ever resources development and is expected to create about 6,000 jobs at its peak and inject about A$33 billion ($28 billion) into the economy. Chevron has not announced an estimated cost for the project, but Australian government officials have put it at about A$50 billion. Source: World Business - Livemint.com | 10 Sep 2009 | 2:50 am Chevron signs $60 bn Australia LNG export dealPerth: US oil firm Chevron has sealed an estimated A$70 billion ($60 billion) worth of gas deals with three North Asian buyers for its massive Gorgon project in Australia, paving the way for a final investment decision in coming weeks. The $42-billion Gorgon project, awaiting final approval from Chevron and its partners, is expected to be given the go ahead by the middle of this month with the sealing of the gas deals. Chevron said on Thursday it would sell Osaka Gas 1.375 million tonnes of LNG per annum (mtpa) over 25 years, and Tokyo Gas 1.1 million tonnes. GS Caltex in South Korea will buy 0.5 million tonnes for up to 20 years. Chevron, which has an unfinalised sales agreement with Chubu Electric for 1.5 mtpa, still has about 3 mtpa of uncontracted gas from Gorgon and said it expects further LNG sales from the project in coming months. “China will probably have appetite for more LNG and South Korea’s Kogas has also expressed interests in buying gas and taking equity in projects, so that’s probably where the rest of Chevron’s gas could go,” said Stuart Baker, an energy analyst at Morgan Stanley. Under the agreement, Chevron will also sell an equity share of 1.25% in the Gorgon project to Osaka Gas and another 1% to Tokyo Gas, reducing Chevron’s stake to 47.75%. Chevron did not disclose the financial details of the LNG and equity sales, but Australian Prime Minister Kevin Rudd said separately that Chevron’s sales agreement would be worth more than A$70 billion ($60 billion) of exports over 25 years. “This is a massive project that will deliver economic growth, income, jobs, prosperity for the nation for decades to come,” Australia Prime Minister Kevin Rudd said. Chevron’s latest gas sales from Gorgon, which finalises agreements first reached in 2005, comes on the heels of a A$50 billion export deal inked by partner ExxonMobil Corp with Chinese state-owned PetroChina last month, and brings total gas sales from the project to an estimated A$200 billion. The proposed 15 million tonnes per annum (mtpa) Gorgon project, which has seen years of delay amid environmental concerns, comprises three production trains and a gas plant for the domestic market. ExxonMobil and Royal Dutch Shell each hold a 25 percent stake in the project. With the Asia-Pacific region seeing around a dozen proposed LNG projects, many of which are racing to come onstream in the 2014-2015 timeframe, some analysts say the global LNG market was unlikely to be able to accommodate all these new capacities. They said projects that failed to secure buyers would be quickly deferred. “A lot of operators have been very optimistic about an explosion of demand, but we hold a more conservative view that demand growth would be slower than expected,” said an analyst who declined to be identified. “If even four of five of the proposed projects around Australia get developed, that would bring more than enough supplies to meet demand,” he said. Gorgon, which will be underpinned by 40 trillion cubic feet of gas resources off western Australia, would be Australia’s largest-ever resources development and is expected to create about 6,000 jobs at its peak and inject about A$33 billion ($28 billion) into the economy. Chevron has not announced an estimated cost for the project, but Australian government officials have put it at about A$50 billion. Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 2:50 am RIL asks govt to name new customers fast for its KG-D6 gas - Business Standard
Source: Business - Google News | 10 Sep 2009 | 2:48 am GM board shakes up management, moves on OpelDetroit /Frankfurt: General Motors Co shook up its management and dispatched a negotiator on the sale of its Opel unit to Berlin after a watershed two-day board meeting under the direction of Chairman Ed Whitacre, people familiar with the proceedings said. GM’s 13-member board endorsed the departure of GM’s chief financial officer, a new marketing campaign aimed at winning back skeptical US consumers and a still-sealed decision on Opel that will be conveyed to German officials on Thursday, the sources said. As part of the board review, CFO Ray Young, will leave the automaker after an 18-month stint that included a failed effort to avoid bankruptcy, according to the sources, who were not authorized to discuss the situation. Meanwhile, John Smith, the GM executive who has headed months of negotiations with the German government and two potential bidders for GM’s Opel unit, was on his way to Berlin, the sources said. Smith will brief the German trust supervising Opel and German government officials before news conferences scheduled for Thursday in Germany, the sources said. It was not immediately clear what action the GM board had taken on Opel after spending the past month weighing the merits of selling the European unit against the cost of keeping it. A group led by Canadian auto group Magna International has a promise for the financial backing of the German government to take control of Opel. Brussels-listed RHJ International has a rival bid that GM management has said would be easier to implement. On Monday, financial adviser KPMG presented a report to GM’s board that said the automaker’s management had used “overly optimistic” assumptions when it prepared an earlier estimate of the cost of keeping Opel. German labor and government officials ratcheted up the pressure on GM to take some action at this week’s board meeting after the board deferred a decision last month. Magna Chairman Frank Stronach said earlier on Wednesday that he expected a GM decision on Opel within the next few days or weeks. Magna remains interested in Opel and would not try to buy other automakers if its bid fell through, Stronach said. The German government said earlier in the day that it expected GM to repay a £1.5 billion ($2.2 billion) state loan if the automaker called off the sale of its Opel unit. KPMG said GM would need up to $6.1 billion in cash to keep Opel, more than the $4.65 billion it had estimated as late as June, according to a copy of the report presented to the board at the meeting in Detroit. Opel’s fate has become a hot-button political issue in Germany ahead of elections looming at the end of the month since some 25,000 jobs in Germany depend on the GM unit. No Easy Choices Analysts say GM faced a dilemma with Opel since any of the choices carried risks for an automaker struggling to turn itself around under the majority ownership of the U.S. government. Selling to Magna, as urged by the German government, was seen by some GM executives as risking key small car technology and an edge in the fast-growing Russian auto market, people familiar with the deliberations have said. The Magna plan involves an equity stake in Opel for Russia’s Sberbank and a partnership with the Russian automaker GAZ Group. On the other hand, GM’s European operations lost $2.8 billion in 2008 and the long-running debate over Opel’s fate in Europe has cost the U.S. automaker goodwill with organized labor and other stakeholders, analysts said. The Magna deal is also the only one of the Opel options that could be quickly implemented, people familiar with the board deliberations said. The meeting of GM’s board was just the second time directors have met after the automaker emerged from bankruptcy with $50 billion in US government financing in July. GM’s corporate culture, recent financial missteps and the oversight of its previous board had all come in for sharp criticism during the US government bailout of the automaker. Chief executive Fritz Henderson, who took his post in late March when his predecessor Rick Wagoner was ousted by the Obama administration, has pledged to make the company less bureaucratic and faster-moving. Young, a 23-year GM veteran, had ascended the ranks at the automaker as a financial manager and was part of a small team under Henderson charged with key decisions on strategy. Bob Lutz, 77, a GM vice-chairman, is also a member of that committee after taking up the assignment of revamping the automaker’s marketing efforts. Lutz has said GM would take direct aim at rivals in upcoming ads for its Chevy, Buick, Cadillac and GMC brands in order to challenge consumer perceptions that its vehicles lag on quality or fuel economy. Part of the GM board meeting this week was devoted to reviewing those plans for the new harder-edged marketing campaign, one person briefed on the discussions said. GM’s US sales have plunged 35% through August and it failed to gain as much as rivals from the US government’s “Cash for Clunkers” incentive program. Source: World Business - Livemint.com | 10 Sep 2009 | 2:44 am GM board shakes up management, moves on OpelDetroit /Frankfurt: General Motors Co shook up its management and dispatched a negotiator on the sale of its Opel unit to Berlin after a watershed two-day board meeting under the direction of Chairman Ed Whitacre, people familiar with the proceedings said. GM’s 13-member board endorsed the departure of GM’s chief financial officer, a new marketing campaign aimed at winning back skeptical US consumers and a still-sealed decision on Opel that will be conveyed to German officials on Thursday, the sources said. As part of the board review, CFO Ray Young, will leave the automaker after an 18-month stint that included a failed effort to avoid bankruptcy, according to the sources, who were not authorized to discuss the situation. Meanwhile, John Smith, the GM executive who has headed months of negotiations with the German government and two potential bidders for GM’s Opel unit, was on his way to Berlin, the sources said. Smith will brief the German trust supervising Opel and German government officials before news conferences scheduled for Thursday in Germany, the sources said. It was not immediately clear what action the GM board had taken on Opel after spending the past month weighing the merits of selling the European unit against the cost of keeping it. A group led by Canadian auto group Magna International has a promise for the financial backing of the German government to take control of Opel. Brussels-listed RHJ International has a rival bid that GM management has said would be easier to implement. On Monday, financial adviser KPMG presented a report to GM’s board that said the automaker’s management had used “overly optimistic” assumptions when it prepared an earlier estimate of the cost of keeping Opel. German labor and government officials ratcheted up the pressure on GM to take some action at this week’s board meeting after the board deferred a decision last month. Magna Chairman Frank Stronach said earlier on Wednesday that he expected a GM decision on Opel within the next few days or weeks. Magna remains interested in Opel and would not try to buy other automakers if its bid fell through, Stronach said. The German government said earlier in the day that it expected GM to repay a £1.5 billion ($2.2 billion) state loan if the automaker called off the sale of its Opel unit. KPMG said GM would need up to $6.1 billion in cash to keep Opel, more than the $4.65 billion it had estimated as late as June, according to a copy of the report presented to the board at the meeting in Detroit. Opel’s fate has become a hot-button political issue in Germany ahead of elections looming at the end of the month since some 25,000 jobs in Germany depend on the GM unit. No Easy Choices Analysts say GM faced a dilemma with Opel since any of the choices carried risks for an automaker struggling to turn itself around under the majority ownership of the U.S. government. Selling to Magna, as urged by the German government, was seen by some GM executives as risking key small car technology and an edge in the fast-growing Russian auto market, people familiar with the deliberations have said. The Magna plan involves an equity stake in Opel for Russia’s Sberbank and a partnership with the Russian automaker GAZ Group. On the other hand, GM’s European operations lost $2.8 billion in 2008 and the long-running debate over Opel’s fate in Europe has cost the U.S. automaker goodwill with organized labor and other stakeholders, analysts said. The Magna deal is also the only one of the Opel options that could be quickly implemented, people familiar with the board deliberations said. The meeting of GM’s board was just the second time directors have met after the automaker emerged from bankruptcy with $50 billion in US government financing in July. GM’s corporate culture, recent financial missteps and the oversight of its previous board had all come in for sharp criticism during the US government bailout of the automaker. Chief executive Fritz Henderson, who took his post in late March when his predecessor Rick Wagoner was ousted by the Obama administration, has pledged to make the company less bureaucratic and faster-moving. Young, a 23-year GM veteran, had ascended the ranks at the automaker as a financial manager and was part of a small team under Henderson charged with key decisions on strategy. Bob Lutz, 77, a GM vice-chairman, is also a member of that committee after taking up the assignment of revamping the automaker’s marketing efforts. Lutz has said GM would take direct aim at rivals in upcoming ads for its Chevy, Buick, Cadillac and GMC brands in order to challenge consumer perceptions that its vehicles lag on quality or fuel economy. Part of the GM board meeting this week was devoted to reviewing those plans for the new harder-edged marketing campaign, one person briefed on the discussions said. GM’s US sales have plunged 35% through August and it failed to gain as much as rivals from the US government’s “Cash for Clunkers” incentive program. Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 2:44 am Fares on other airlines soar as Jet flights groundedTravel agents and other Indian carriers had a field day as customers clamoured for tickets after Jet Airways cancelled flights for the second consecutive day. Over 200 flights were cancelled on Wednesday, following the mass sickleave by Jets protesting pilots.Source: Moneycontrol Top Headlines | 10 Sep 2009 | 2:42 am Nokia Siemens pitches for BSNLs GSM equipment dealAfter being disqualified from Bharat Sanchar Nigam Ltds 93millionline contract, Nokia Siemens has now offered to supply GSM equipment to the Stateowned telecom company at the rates quoted in 2007 but with modified tender conditions as was being offered to Ericsson.Source: Moneycontrol Top Headlines | 10 Sep 2009 | 2:38 am Exports dip for the 11th consecutive monthNew Delhi: India’s exports slid for the 11th straight month in August by 19.7% to $14.3 billion owing to the continuing slump in global demand. In August 2008, the exports were $17.8 billion. In April-August this fiscal, the overseas shipment contracted by 31.3% to $63.9 billion from $93.1 billion in the same period last year. For the first five months of 2009-10, three sectors -- rice, tobacco and fruits and vegetables -- have shown positive growth, commerce secretary Rahul Khullar said. Only in August, segments like rice, tobacco, fruits and vegetable, marine products, iron ore, man-made yarn and fabrics, some minerals, like coal, and ready made garments have shown positive growth, Khullar told reporters. “Sectors which continue to be in deep trouble are leather, gems and jewellery, drugs and pharmaceuticals both in monthly and cumulatively for the last five months,” he said. The exports of gems and jewellery in August dipped to $2.2 billion from $2.9 billion in last year. In April-August this fiscal, the gems and jewellery exports contracted to $9.7 billion from $14.6 billion in April-August last fiscal. Leather exports in the month under review declined to $0.28 billion from $0.35 billion in the same month last year. Engineering goods exports was dropped to $2.6 billion from $3.8 billion. In April-August this fiscal engineering goods shipment shrank to $13.1 billion from $19.8 billion, Khullar said. Source: Home - Livemint.com | 10 Sep 2009 | 2:27 am Govt OKs 2 pct interest subsidy on farm loans - minNEW DELHI (Reuters) - India's cabinet has approved 2 percent interest subsidy on bank loans taken by farmers, Information and Broadcasting Minister Ambika Soni said on Thursday.Source: Reuters: Money News | 10 Sep 2009 | 2:23 am Deadlock continues as Jet cancels 200 flightsMumbai: A deadlock between the management of Jet Airways and its pilots over sacking of four of their colleagues forced the airline to cancel 200 flights on Thursday, with no signs of a breakthrough, officials said. “There are no talks being held right now. The management is not talking,” Sam Thomas, the general secretary of National Aviators’ Guild (NAG), a Jet Airways pilots’ union said. Shares of Jet Airways, India’s second largest airline by market share, were down 1.79% by mid-trade in a firm Mumbai market. Also Read | Jet, pilots fail to break impasse More than half of the airline’s 760 pilots, banned from striking without informing the airline’s management in advance, have reported sick since Tuesday, forcing the cancellation of flights and affecting at least 14,000 passengers. An airline spokeswoman said part of their cargo operations have also been affected. The strike is seen as an example of touchy labour relations in a country where archaic labour laws place myriad limits on hiring and conditions for retrenchment, hurting competitiveness and leading to worker unrest. The pilots say they went on mass leave after four of their colleagues were sacked because they were trying to get the management to recognize their newly formed union. Jet said the four were fired for indiscipline and called the mass absence of pilots a “simulated strike”. Most Indian private airlines do not have unions and analysts have warned the unrest at Jet Airways could become the trigger for labour unrest in other airlines. A Jet spokeswoman said the pilots were still on leave and the airline was accommodating passengers on other carriers, The Bombay high court also served a contempt notice to the pilots, following a petition filed by the airline against the mass leave, the airline said in a statement late on Wednesday. The ongoing crisis was triggered after talks between the management and NAG broke down over a demand to reinstate two sacked pilots. The union subsequently said they were open for conciliatory talks with the management only if the sacked pilots are reinstated and the union not dismantled. Jet cancelled 21 international flights operating on south east Asia sector to Bangkok, Hong Kong and Singapore. The airlines services to Gulf countries, the US and Europe, to which flights were operated ON Wednesday, were also badly affected. Jet has also cancelled its flight to Dubai, Muscat, Kuwait, US and Europe, airport sources said. In Delhi, about 15 flights remained cancelled. “Due to continued pilot agitation, disruptions are expected on the Jet Airways network and consequently, certain flights have been cancelled. On disrupted flights, guests will get full refund or they can reissue/rebook flights without any penalty,” a Jet Airways spokesperson said. Jet Chairman Naresh Goyal had met civil aviation minister Praful Patel in the national Capital. The minister is understood to have asked Goyal to resolve the issue at the earliest keeping the passengers’ inconvenience in mind. Source: Home - Livemint.com | 10 Sep 2009 | 2:13 am Inflation falls but food prices jumpNew Delhi: India’s food prices jumped an annual 14.8% by end of August after a dry spell hurted crops, adding to concerns inflation could climb above the comfort zone of policy makers and herald an end to a soft monetary stance. The widely-watched wholesale price index fell by a steeper-than-expected 0.12% in the 12 months to 29 August, its 13th successive fall, mainly due to statistical aberration caused by last year’s high energy prices. The WPI figure compares with last week’s 0.21% annual decline and a market forecast for a decline of 0.08%. The food articles index accelerated to a 14.8% rise, from a year earlier, from 14.5% the previous week, as drought engulfed nearly half of India’s districts, hurting summer crops and forcing the government to intervene to bolster supplies and crack down on hoarding. “I thus expect that the fiscal measures - releasing the food stocks with the government, importing the foodgrains in short supply - will be the first mode of action likely to be adopted by the government, rather than monetary tightening to stem higher inflation,” said Gunjan Gulati, an economist at JP Morgan Chase. Policy Dilemma On Wednesday, Prime Minister Manmohan Singh said there was no shortage of food stocks but the government has to redouble efforts to mitigate rural distress arising from the after effects of drought. The Congress party-led coalition government, which was re-elected this year on the back of its pro-farmer policies, is already under pressure after food prices surged following the worst dry spell in nearly four decades. The central bank governor has said inflation was becoming a concern sooner than expected, while the finance secretary forecast it to climb to 5-6% by end of March. The rapid rise in the WPI could pose a policy dilemma for the central bank given the inability of monetary policy to mitigate price pressures caused mainly by shortages in food supplies. In July, the central bank raised its inflation forecast to five percent from four at the end of 2009-10 fiscal year, but left its key policy rate unchanged after cutting it 425 basis points between October and April. The economy grew 6.7% in 2008-09, slower than 9% or more growth clocked in the previous three years, and policy makers forecast the economy would expand by slightly more than 6% in 2009-10 due to lower farm output. Source: Home - Livemint.com | 10 Sep 2009 | 2:05 am contentSutra - Bloomberg TV, UTV Announces Partnership; Biz ... - Reuters India
Source: Business - Google News | 10 Sep 2009 | 2:03 am India's inflation minus 0.12 percentIndia's annual rate of inflation was minus 0.12 percent for the week ended Aug 29, a rise from minus 0.21 percent the week before, according to official data released Thursday.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 2:01 am Kamal Nath to meet World Bank chief, address investors in USNew Delhi: In a bid to attract foreign investmment in the road sector, road transport and highways minister Kamal Nath will meet the World Bank chief and address an investors round table during his seven-day US visit beginning Friday. The ministry is also holding a road show aimed at projecting investment opportunities in the sector. “The transport minister will meet the World Bank chief Robert Zoellick besides attending a round table meet with financial sector companies during his US visit which starts tomorrow. He will also address an investors round table,” a government official said. The visit is significant as the ministry is scouting investment of $70 billion for road construction in the next 3-4 years, out of which about $45 billion is expected to come from the private sector, including $10 billion from foreign investors. The ministry has envisaged mega projects in the road sector with each 500-km project costing about $1 billion, where foreign investment would be vital, the official added. Nath had earlier participated in two road shows - one in Singapore and another in London -- after taking charge of the ministry in May. He has announced building 7,000 km of road network every year, taking the overall target to 35,000 km in the next five years. Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 1:51 am Company update: Future GroupThe Future Group is targeting close to Rs45crore from its Brand Factory store in one year. The company, which restructured its Big Bazaar store on Lee Road in Kolkata to convert it into a Brand Factory, is looking at a one-year break-even period for its Brand Factory outlet. The company has deliberately targeted the festive season for its first Brand Factory launch in Kolkata. The Group is also looking at re-doing another two to three of its existing stores, to accommodate formats that are not yet available in the city. For one, the company is looking at launching its central format in Kolkata, which is a lifestyle brand. While each Central requires an investment of close to Rs20-30 crore, Brand Factory requires Rs6-10 crore per store. Brand Factory is typically a format where all branded products are available, but at a 20-50% discounted price throughout the year. Among other plans, the Future Group would add another 4 lakh sq ft in the East, for Big Bazaar, to its existing 10 lakh sq ft; Pantaloon would add another 40-50,000 sq ft in the next four months, to its existing 4 lakh sq ft in the East. The Future Group currently commands 2 million sq ft in the East, with all its formats put together. Nationally, the Group is planning to invest close to Rs400 crore in setting up 30 new Brand Factory and six new Central formats in India, over the next two years. We maintain a neutral rating on Pantaloon Retail. Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 1:49 am Deadlock continues as Jet cancels 200 flightsMUMBAI (Reuters) - A deadlock between the management of Jet Airways and its pilots over sacking of four of their colleagues forced the airline to cancel 200 flights on Thursday, with no signs of a breakthrough, officials said.Source: Reuters: Money News | 10 Sep 2009 | 1:47 am Update on Bharti-MTN dealBharti Airtel, India’s largest integrated telecom solutions provider, has categorically denied reaching a preliminary agreement with South Africa’s MTN Group, on their planned strategic alliance, saying that the mobile phone firms are still in discussions, ahead of the 30 September deadline for exclusive talks. It was reported late on Wednesday that the two firms had concluded a preliminary pact to buy shares in each other. Senior company executives have said that an announcement is only likely toward the end of the month, before the expiry of the talks-deadline. Bloomberg reported that Bharti had sweetened its bid to buy 49% of MTN, by increasing the cash portion of its offer. The proposed $23billion deal’s contours, unveiled in May, involve MTN taking a 25% economic interest in Bharti Airtel for $2.9billion, plus new shares in the South African telco, which is equivalent to 25% of MTN’s existing shares. Besides, MTN shareholders will also get an 11% stake in Bharti Airtel through GDRs that will be listed on the Johannesburg Stock Exchange. The Indian telco will buy 36% of MTN for $7billion, at 86 rand per share. Bharti will pick up an additional 20% by subscribing to fresh shares issued by the South African firm. If successful, the transaction will create a global telecom powerhouse, with more than 200 million subscribers and revenues of over $20bilion. At the CMP, the stock trades at 13.6x its FY2011E EPS. We have an ACCUMULATE rating on the stock, with a Target Price of Rs457, including Rs65 as the value of the tower. Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 1:44 am Sector update for August: CementThe domestic cement industry has registered a 17% y-o-y growth in dispatches for the month of August 2009. The industry dispatched 15.4mn tonnes of cement during the month, compared to 13.2mn tonnes during the same period last year. However, on a sequential basis, dispatches were lower by 3.2%. On the production front, the output was higher by 17.8% to 15.5mn tonnes, from 13.2mn tonnes last year. The higher dispatch number came on the back of the rise in the government’s expenditure on infrastructure projects and the delayed monsoon season in most parts of the country. However, it may be noted here that the robust dispatch growth of 17% y-o-y has is on the back of a low base effect of last year, as the demand for cement had fallen significantly, due to lower demand from the construction sector. We maintain a neutral view on the sector. Source: LatestNews-Home - Livemint.com | 10 Sep 2009 | 1:33 am Sensex slips from morning highA key index of the Indian equities markets gave up some of its early morning gains a little after noon Thursday and was ruling 0.87 percent above its last closing figure.Source: IndiaeNews.com: Business News | 10 Sep 2009 | 1:31 am Asian shares firm as oil gainsHong Kong: Asian stocks rose on Thursday as investors continued to switch into riskier assets amid growing confidence the global economy is recovering, keeping the dollar on the defensive. After hitting its weakest value in almost a year on Wednesday against a basket of currencies, the greenback was holding just above that level on Thursday, reflecting the shift out of less risky assets. Oil prices garned some support to rise above $72 a barrel from the weak dollar and firm equity markets but also from Opec’s agreement to maintain output levels. Major European stock futures and US equity futures were up 0.5%, implying firmer opens. European Central Bank Governing Council member Erkki Liikanen reinforced market sentiment that the world economy is improving, saying the euro zone economy had bottomed out. South Korea signalled it could be one of the first countries in the world to raise interest rates if house prices jump much more. That knocked front-end Korean treasury bonds the most in three months. “The final decision on when and how much to adjust its policy depends on each country’s situation,” Korean central bank governor Lee Seong-tae said, adding that G-20 finance ministers’ pledge last weekend to maintain growth-supporting policies was aimed mainly at soothing markets. South Korean shares were swept higher though by broader themes, rising 2.3% as Asian equities benefited from rising risk appetite. Feeding into the recovery idea, shipping and shipbuilding companies Hanjin Shipping and Hyundai Heavy Industries surged 8.8% and 4.6% respectively after a rise in the Baltic Dry Index, a key freight indicator. Japan’s Nikkei index gained 2% even though machinery orders’ data pointed to weak capital spending in the world’s No. 2 economy. The MSCI index of Asia Pacific stocks traded outside Japan was up 1.5% by mid-afternoon. In Australia, a sharp fall in employment in August put pressure on the Aussie dollar and dampened expectations for a rate rise this year. But share prices gained 1% with energy stocks Woodside Petroleum and Santos rising by 2.3% and 3.4% respectively off the back of firm oil prices. Spot gold held firm at $995.70 per ounce by 11:46pm, after topping $1,000 on Wednesday. New Zealand kept interest rates at a record low 2.5% but indicated it was less inclined to cut again. However, the kiwi dollar fell after Governor Alan Bollard told Reuters that the currency, which hit a one-year high on Wednesday, was overvalued and that markets were premature in pricing in higher rates from early 2010. “Our view at the moment is that we expect the official cash rate to be on hold until the latter part of 2010,” Bollard said. China’s Shanghai index recovered early losses and turned slightly positive but a top planning official said economic conditions were not ripe enough yet for China to exit its proactive fiscal policy soon. Recent volatility in China’s shares has made fund managers cautious about buying, a Reuters poll shows. Hong Kong’s Hang Seng Index leapt to a one-year intraday high while Taiwan’s benchmark TAIEX index hit a 14-month closing peak after the government named a new cabinet, raising hopes a financial services agreement with China can be signed soon. NYMEX crude rallied for a fourth day running. A US report on Wednesday showed crude stocks falling much greater than expected and markets were soothed by Opec news. Source: Home - Livemint.com | 10 Sep 2009 | 1:26 am Day 3: Jet cancels 198 flights; deadlock continuesThe Jet Airways pilots strike enters the third day. Jet Airways today cancelled nearly 200 domestic and international flights as its pilots continued their agitation to protest sacking of two of their colleagues.Source: Hindustan Times News Feeds 'Business' | 10 Sep 2009 | 1:08 am Bloomberg and UTV to form TV network* Bloomberg and UTV to form India's business TV networkSource: Reuters: Money News | 10 Sep 2009 | 1:04 am WPI falls, but food prices jumpNEW DELHI (Reuters) - India's food prices jumped an annual 14.8 percent by end of August after a dry spell hurted crops, adding to concerns inflation could climb above the comfort zone of policy makers and herald an end to a soft monetary stance.Source: Reuters: Money News | 10 Sep 2009 | 1:03 am Oil up for fourth day, above $72 on Opec assuranceSingapore: NYMEX crude rallied more than $1 to $72.40 a barrel on Thursday, up for a fourth day running, lifted by a soft dollar, gains in equities markets and soothing words from Opec. Asian stock markets pushed higher and the euro edged up versus the dollar. On the fundamental side, a fall in US crude stocks five times greater than analyst forecasts on Wednesday and positive comments on prices and the economy by Saudi Oil Minister Ali al-Naimi also supported the price. Opec left output unchanged, as expected, with Naimi saying prices were being driven by economic recovery, and that high levels of inventory had become irrelevant to the market. “The lack of more aggressive action reflected a belief that demand will be sufficient in pulling down the overhang in the market,” David Kirsch, director of market intelligence services at PFC Energy in Washington, said. “It’s a shift from previous Opec policy in being more proactive against their downside risks and obviously the state of the economy played a part in this decision.” NYMEX crude for October delivery stood at $72.34 a barrel by 12:00pm, up $1.03 from Wednesday’s settlement. London Brent crude rose 80 cents to $70.63 a barrel. Traders noted rising interest in front-month WTI versus longer dated futures in the past month or so and a narrowing in the contango, or discount for near-dated oil. “The one lesson we all learnt from the great price crash is that all markets are correlated. The gains we are seeing in oil right now are driven by equities as much as anything and people are buying prompt crude to ride the wave we are seeing in stocks,” a Sydney-based energy trader said. Asian share markets were underpinned by a 0.5% gain in the Dow Jones industrial average and the Federal Reserve’s Beige Book survey, which showed the US economy was stabilising, although many key sectors remained weak. That buoyed sentiment in Japan, where the Nikkei index gained 1.4% even though machinery orders’ data pointed to weak capital spending in the world’s No. 2 economy. Also bullish was a big fall in US crude stocks, with the American Petroleum Institute reporting a 7.2 million barrels drawdown in the week to 4 September, far more than the 1.5 million barrels forecast in a Reuters poll. However, this was partly offset by a 3.3-million-barrel jump in distillate stocks, far exceeding the forecast for an increase of 800,000 barrels, while gasoline stocks rose 571,000 barrels against the forecast for a 1.3 million barrel drawdown. More inventory data is expected on Thursday with the Energy Information Administration’s report at 8:30pm. On Wednesday the government body predicted global oil demand through next year would be weaker than previously forecast while supplies will be higher. The EIA cut its forecast for world oil demand growth in 2010 by 30,000 barrels per day and raised its forecast for global oil production growth by 150,000 bpd. Source: Home - Livemint.com | 10 Sep 2009 | 12:52 am Jet pilots' agitation continues, over 230 flights cancelledJet Airways pilots' stir today entered the third day with the airline management and the agitators sticking to their stands even as over 230 flights were cancelled.Source: Daily News & Analysis: Money News | 10 Sep 2009 | 12:45 am Sensex climbs 248 pts in opening trade on global cuesThe Bombay Stock Exchange benchmark index Sensex surged by over 248 points in opening trade today.Source: Daily News & Analysis: Money News | 10 Sep 2009 | 12:33 am GMR Hyderabad airport gets VAT relief from APHyderabad, Sept. 9 GMR Hyderabad International Airport (GHIAL) has received from the Andhra Pradesh Government VAT (Value added tax) relief on twoSource: Business Line - Home Page | 10 Sep 2009 | 12:00 am Gold ETFs at new peakBL Research Bureau Domestic gold exchange traded funds (ETF) recorded a new high on Tuesday tracking the sharp rally in international gold prices.Source: Business Line - Home Page | 10 Sep 2009 | 12:00 am Mid-size cos back to lateral hiringBangalore, Sept. 9 Medium-size IT companies that were the first to down curtains on lateral hiring last year because of a sizeable bench and rising salary costs are now back toSource: Business Line - Home Page | 10 Sep 2009 | 12:00 am Day Trading GuideWe recommend a sell in DLF as the near-term outlook is bearish. Initiate fresh long position only if ICICI Bank exceeds Rs 806 and SBI surges above Rs 1,910, with tight stop-loss. WeSource: Business Line - Home Page | 10 Sep 2009 | 12:00 am No blanket Press Note 1 waiver for Goldman SachsNew Delhi, Sept. 9 The Foreign Investment Promotion Board (FIPB) has rejected a proposal by Goldman Sachs (Mauritius) NBFC LLC for waiver from the applicability of Press Note 1 (2005).Source: Business Line - Home Page | 10 Sep 2009 | 12:00 am Bajaj Hindusthan (Rs 175.1): SellWe recommend a sell in Bajaj Hindusthan from a short-term perspective. It is apparent from the charts that the stock bottomed in March around Rs 40. The uptrend accelerated in May and this rally prolonged until late June. However, afterSource: Business Line - Home Page | 10 Sep 2009 | 12:00 am IRDA offers ‘insurance’ of service by agentsNew Delhi, Sept. 9 The Insurance Regulatory and Development Authority (IRDA) has issued new guidelines to protect policyholders from fly-by-nightSource: Business Line - Home Page | 10 Sep 2009 | 12:00 am Jet’s operations in disarrayMumbai/ New Delhi, Sept 9 Jet Airways’ operations were thrown out of gear for the second consecutive day on Wednesday as the stalemate between the management and the protesting pilots continued. The two parties, however, have entered intoSource: Business Line - Home Page | 10 Sep 2009 | 12:00 am Govt not keen on ESMANew Delhi, Sept. 9 The Government is not keen to impose the provisions of the Essential Services Maintenance Act against the pilots of Jet Airways who have reported sick en mass affecting normal airline operations.Source: Business Line - Home Page | 10 Sep 2009 | 12:00 am BSNL, MTNL may join group buying 46% in Kuwait’s Zain TeleNew Delhi, Sept. 9 A consortium led by the New Delhi-based Vavasi Group and the Malaysian billionaire, Mr Syed Mokhtar Al-Bukhary, may buy a 46 per cent stake in Kuwait’s largest telephone company, Zain Telecom.Source: Business Line - Home Page | 10 Sep 2009 | 12:00 am Sensex up 1.42 percent in opening tradeA key index of the Indian equities markets opened on a firm note Thursday and was ruling 1.42 percent higher than its previous close, about five minutes into trade.Source: IndiaeNews.com: Business News | 9 Sep 2009 | 11:31 pm Jet Airways dips 2% as pilots continue agitationMumbai: Shares of Jet Airways today slipped nearly 2% in morning trade on the Bombay Stock Exchange as pilots kept away from work for the third consecutive day leading to disruption of services. Shares of Jet Airways fell as much as 1.68% over previous close to Rs258.15 on the BSE. Yesterday, the airline cancelled over 200 flights as more than 400 cockpit crew failed to turn up for work to protest the sacking of two pilots by the airlines management. On the National Stock Exchange also Jet Airways plunged 1.56% to Rs258.75. Yesterday, Jet Airways Chief Naresh Goyal met Civil Aviation Minister Praful Patel to discuss the impasse. The airlines said it was willing to talk to the agitating pilots but made it clear that it would not allow the pilots union to hold operations of the airline to ransom. Source: Home - Livemint.com | 9 Sep 2009 | 11:17 pm Animation turns spotlight on local storiesMUMBAI (Reuters Life!) - When the Cartoon Network channel launched in India more than a decade ago, it simply dubbed its shows in regional languages.Source: Reuters: Money News | 9 Sep 2009 | 10:30 pm Anil’s power firm under scanner for hiking tariffAll financial transactions in the past five years made by the Anil Ambani-owned Reliance Infrastructure, which supplies electricity to suburban Mumbai, will be examined.Source: Hindustan Times News Feeds 'Business' | 9 Sep 2009 | 6:11 pm For China, contracts are meant for breakingClouds of uncertainty are hovering over China's airspace amidst signs of a confrontation brewing between the Chinese government and six foreign banks.Source: Daily News & Analysis: Money News | 9 Sep 2009 | 4:26 pm A year after collapse, Lehman 'villain' feels 'dumped on'Standing on his gravelly driveway wearing a black fleece vest, dark gray shorts and sandals, Fuld indicated he was torn about speaking out in his own defence.Source: Daily News & Analysis: Money News | 9 Sep 2009 | 4:23 pm IOB seeks Rs 1,000 crore from govtCapital adequacy is a measure of a bank's capital. It is derived by dividing a bank's total capital by its risk weighted assets, to help gauge the strength of the bank.Source: Daily News & Analysis: Money News | 9 Sep 2009 | 4:20 pm RNRL says invoking govt in gas pricing 'mischievous'RNRL has never questioned the ownership of the government on gas, but RIL has complete market freedom to deal with gas that belongs to it, it said.Source: Daily News & Analysis: Money News | 9 Sep 2009 | 4:18 pm Tantia Cons starts wagon makingTantia Constructions Ltd has started making railway wagons since March to cash in on the opportunities thrown open by the Indian Railways' thrust on improving goods.Source: Daily News & Analysis: Money News | 9 Sep 2009 | 4:17 pm Wipro tunes into low-cost in-car infotainmentAgrawal is part of a 10-member squad, called the Infotainment and Telematics Practise Team, which is working on the project for the last one year.Source: Daily News & Analysis: Money News | 9 Sep 2009 | 4:16 pm BPCL's Bina refinery IPO in six monthsSinha did not specify who the interested investors were, but did not rule out a further investment by Oman Oil. "We are talking to them as well as others," he said.Source: Daily News & Analysis: Money News | 9 Sep 2009 | 4:14 pm Doing business in India gets easierIndia has improved its score and has been ranked 131 among 183 nations in Doing Business 2010 study undertaken by the World Bank. However, that is not very flattering for an economy that is on the rise.Source: Moneycontrol Top Headlines | 9 Sep 2009 | 3:08 pm IPod Nano to come with video cameraSan Francisco: Apple announced on Wednesday that it was adding a video camera to its iPod Nano and cutting prices of its wildly popular music players. Apple chief executive Steve Jobs unveiled the video camera-equipped iPod Nano at an Apple media event here during which he made a much-anticipated appearance on stage. Jobs said the new iPod Nano, Apple’s best-selling iPod with more than 100 million units sold, would now include a video camera, an FM radio, a pedometer and a microphone and speaker. “You can watch your video on the Nano or sync it back to your computer,” he said. “With one click you can send it to YouTube.” “So, pretty amazing to always have a video camera of that quality in your pocket, built right into your Nano,” Jobs said. He said there would be two models—an 8GB version for $149 and a 16GB model for $179. The video-equipped iPod was the product highlight of the Apple event dominated by Jobs’ first public appearance since October 2008. Jobs, 54, went on medical leave in January and returned to work in June following a liver transplant. Apple also announced it was cutting the prices on various iPods models with the price of an 8GB iPod Touch, for example, dropping to $199 from $249. Source: Tech News - Livemint.com | 9 Sep 2009 | 1:45 pm Kraft chief has a history of successWhen Irene B. Rosenfeld, chief executive of Kraft Foods Inc., was studying marketing at Cornell University in the late 1970s, she was determined to get as many people as possible to respond to a survey she mailed out as part of her PhD research on how consumers choose products. So she attached a crisp $1 (Rs48.5) bill to the surveys, to entice people to fill them out and mail them back. Rosenfeld now has a much bigger budget, but she is still working hard to convince people to go along with her plans. Kraft has just seen its $16.7 billion offer for Cadbury Plc, the British candy company, rebuffed—but Rosenfeld appears determined to push the deal forward.  Sweet dreams: A January photo of Kraft Foods CEO Irene B. Rosenfeld at the World Economic Forum in Davos. Rosenfeld has insisted the deal with Cadbury would benefit the shareholders of both companies. Scott Eells / Bloomberg In public comments, she has insisted the deal would benefit the shareholders of both companies. And when Cadbury insisted the offer undervalued the company, Rosenfeld said the chocolate and gum maker had far less potential to grow on its own. “This announcement just shows how ambitious she is,” said Erin Swanson, an equity analyst at Morningstar. “She’s not content with the status quo. She’s striving for continuous improvement and looking to stir growth in what has been a more mature business.” The events have set the stage for a bidding war, meaning Kraft might have to pay substantially more if it wants to acquire Cadbury. Anticipating that possibility, investors bid down Kraft shares, which dropped nearly 6% on Tuesday, closing at $26.45. Cadbury shares soared almost 40%, closing at $51.88, a gain of $14.42. Analysts said that several other companies could also bid for Cadbury, including Nestle SA and Hershey Co. The coming battle will certainly test Rosenfeld’s leadership of the company she took over in 2006, vowing to revive sluggish sales of its brands, which include Oreo cookies, Oscar Meyer lunch meats and Velveeta cheese. Analysts said that the company’s results in the last two quarters were promising. “There seems to have been some evidence that she has in fact started to turn things around,” said Matt Arnold, a consumer analyst with Edward Jones, a retail brokerage firm based in St Louis. Rosenfeld has said she wanted to encourage innovation by giving managers at many different levels of the company more power to make decisions and try new things. Arnold said that appeared to have made the company more nimble and quicker to introduce new or expanded product lines. He said Kraft had seen success with an expanded line of DiGiorno frozen pizzas, which the company now sells in single-serve packages and in a premium variety. It has also revamped its Maxwell House coffee blend and packaging and has begun selling Oreo Cakesters, a snack cake based on the cookie. “They just found ways to cater to consumer wants a little more and the bet paid off,” Arnold said. Rosenfeld also turned back earlier efforts at cost-cutting that hurt the quality of the company’s products. For instance, she insisted on adding more cheese back into the mix for the company’s signature macaroni and cheese, after it had been cut back to save money. While the Cadbury deal would be by far her biggest move to date, Rosenfeld has not shied from buying and selling. She sold the underperforming Post cereals division to Ralcorp for $1.7 billion in 2007, and in the same year paid $7 billion for the cookie unit of the French company Groupe Danone SA. Several analysts said that a Cadbury acquisition could make sense for Kraft, which would greatly expand its confectionery business. Cadbury would also give it strong sales in emerging markets, such as India, where the chocolate maker has strong sales and has seen impressive growth. But they cautioned that those considerations could change if Kraft winds up paying significantly more. Rosenfeld, who declined to be interviewed for this article, began working for Kraft in the early 1980s. She soon became a marketing manager with responsibility for Kool Aid and helped increase sales, in part by changing television ads aimed at children that featured a rock and roll soundtrack. She had similar success with Jell-O and was later made head of Kraft’s Canadian and then North American divisions. But she left the company abruptly in 2003. In 2004, she was hired to be chief executive of PepsiCo’s Frito-Lay division. But two years later she returned to Kraft, this time as chief executive. She was named chairman in 2007 and now holds both posts. Rosenfeld’s thesis adviser at Cornell, Vithala R. Rao, still teaches marketing there, and said on Tuesday that he recalled the $1 bills and the innovative way his former pupil conducted her thesis survey nearly three decades ago (she received her PhD in 1980). Rao said the trick worked, with the survey getting a higher response than might have been anticipated without the incentive. Rao recalled her as bright, focused and persevering. “She’s always exhibited initiative in doing things,” he said. “She obviously has done extremely well.” ©2009/The New York Times Source: World Business - Livemint.com | 9 Sep 2009 | 1:13 pm Acer, HP seen early winners in PC recoverySan Francisco/Taipei: As the personal computer (PC) industry embarks on its fitful road to recovery, many are betting that Acer Inc. and Hewlett-Packard Co. (HP) will lead the rebound with surging netbook sales and a strong presence in booming Asia. These two PC makers are expected to gain from consumer demand in China, India and other resilient Asian markets, even as corporate demand stays weak in the global economic slowdown. Acer, the world’s No. 3 PC brand, can bank on its strength in the fast-growing, low-cost netbook segment, while HP’s broad customer base and product mix will stand it in good stead. “Acer will more likely recover quicker because they’re doing well in the pockets that they’re in... they’re one of the lower cost providers out there that is still respected,” said Louis Miscioscia, research director at tech-focused US firm Brigantine Advisors. “In this bad market, someone might be more willing to give Acer a chance.” Acer dominates the netbook PC segment, shipments of which, research firm IDC forecast, will more than double this year to 26 million units, helped by consumers reining in on their discretionary spending. This has pushed up valuations at the Taiwanese firm, which trades at a relatively high 18.3 times forward earnings, bolstered by a 90% advance in its stock price since the start of this year. In contrast, HP trades at 11.6 times, while Dell Inc. trades at 14.3 times, according to Thomson Reuters data. Despite the high valuations, most analysts still favour Acer as it remains firmly in the driver’s seat until corporate IT spending recovers, helped by its dominance in the low-cost segment of the market and a lean cost structure. HP is also expected to come out ahead, since the company already has a kickstart with consumer demand that has shown signs of picking up, and an additional boost when corporate demand returns. Its shares are up about 25% so far this year. HP, the world’s largest PC brand, is also strong in Asia, in particular India and China, where it is the first- and second-ranked PC brand, giving it the critical mass needed to compete in the two large and diverse markets. The launch of Microsoft’s next-generation Windows 7 operating system is now the remaining wild card in PC makers’ outlook. Such software launches have often spurred sales, but paired with an economic slowdown, the response could be lukewarm. A recent survey of at least 1,000 companies by ScriptLogic also found that some 60% of them planned to skip Windows 7 on cost and compatibility fears. Lenovo’s chief financial officer (CFO) Wong Wai Ming also attested to those fears in a recent interview with Reuters. “Many CFOs are especially sensitive to cost right now, and will not increase capital spending just because the economy seems to be doing better now,” he said. feedback@livemint.com Source: Tech News - Livemint.com | 9 Sep 2009 | 1:02 pm Update Fema for Press Notes 2&4, government tells RBIEnds ambiguities in Feb guidelines relaxing sectoral limits in FDI rules.Source: Business Standard | Front Page Headlines | 9 Sep 2009 | 12:45 pm Fares soar as airlines chip in to help JetThe second day of the Jet Airways pilot protest saw the Bombay High Court issuing a contempt notice to pilots, fares soar and the airline industry putting its support behind the airline's management by taking up the slack of the 250 flights (above 500 domestic and international) that were grounded today after more than 400 pilots took mass sick leave for the second day in protest against two pilots sacked last month and three yesterday.Source: Business Standard | Front Page Headlines | 9 Sep 2009 | 12:37 pm
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