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PM to leave Wednesday for US to attend G20 Summit!Prime Minister Manmohan Singh leaves here Wednesday on a four-day US visit where he will attend the G20 summit.Source: Zee News : Business | 22 Sep 2009 | 7:02 am Bank of America to face SEC trial, exits loss-sharing deal!Bank of America Corp now faces a trial with the Securities and Exchange Commission over billions in bonuses paid at Merrill Lynch.Source: Zee News : Business | 22 Sep 2009 | 7:02 am Sensex up 82 points in opening trade!Maintaining its rising streak for the fifth session in a row, the benchmark Sensex on Tuesday rose by 82 points in opening trade on heavy buying by foreign funds amid expectations of strong corporate earnings.Source: Zee News : Business | 22 Sep 2009 | 7:02 am Merkel optimist about market reform agreements at G20 summit!German Chancellor Angela Merkel expressed optimism that an agreement on finance market reform could be reached at financial summit of the G-20 nations, which opens in Pittsburgh on Thursday.Source: Zee News : Business | 22 Sep 2009 | 7:02 am RCOM board approves Rel Infratel IPO!Anil Ambani-led Reliance Communication on Tuesday said the draft prospectus for the initial public offer of its telecom tower subsidiary Reliance Infratel will be filed with market regulator SEBI shortly.Source: Zee News : Business | 22 Sep 2009 | 7:02 am ADB ups forecast for `resilient` Asia!Asia has proved to be more resilient than expected to the financial crisis, says Asian Development Bank.Source: Zee News : Business | 22 Sep 2009 | 7:02 am HOEC settles gas dispute with GAIL !Hindustan Oil Exploration Company on Tuesday said its ongoing dispute with state-run gas utility GAIL in relation to sale of natural gas from PY-1 Field has been settled.Source: Zee News : Business | 22 Sep 2009 | 7:02 am RCOM board approves Rel Infratel IPO; to approach SEBI soonAnil Ambani-led Reliance Communication on Tuesday said the draft prospectus for the initial public offer of its telecom tower subsidiary Reliance Infratel will be filed with market regulator SEBI shortly. Source: Hindustan Times News Feeds 'Business' | 22 Sep 2009 | 6:51 am Next growth wave to come from GSM operations: Anil AmbaniAddressing a Reliance Communication press conference, Anil Ambani of Anil Dhirubhai Ambani Group said, the company\'s subscription base would cross 100 million by March 2010. He also said the next wave of growth will come from GSM operations.Source: Moneycontrol Top Headlines | 22 Sep 2009 | 5:36 am Crompton Greaves to list Avantha Power in next 1218 monthsSM Threhan, MD of electrical equipment maker, Crompton Greaves a part of the USD 3 billion Avantha Group said that he planned to list Avantha Power over the next 1218 months, adding that the valuation for the stock would depend on the IPO timing.Source: Moneycontrol Top Headlines | 22 Sep 2009 | 5:23 am Don\'t expect cement demand to go up in next 12 mths:ExpertsCement prices are more or less stable at the moment, says RG Bagla of JK Cements. He expects them to remain so in the near term. \"We don\'t expect a big demand push over the next 12 months.\"Source: Moneycontrol Top Headlines | 22 Sep 2009 | 5:16 am RCOM board approves Rel Infratel IPOAnil Ambani-led Reliance Communication on Tuesday said the draft prospectus for the initial public offer of its telecom tower subsidiary Reliance Infratel will be filed with market regulator SEBI shortly.Source: Hindustan Times News Feeds 'Business' | 22 Sep 2009 | 5:05 am Dr Reddy\'s in talks with GSK Pharma to mkt drug: PharmAsiaDr Reddys Laboratories is in talks with GSK Pharmaceuticals for marketing of the Red Heart Pill, a combination drug of Statin, AntiHypertensives and Aspirin.Source: Moneycontrol Top Headlines | 22 Sep 2009 | 5:00 am Jindal Cotex ends day 1 at 15.33% premium - Moneycontrol.com
Source: Business - Google News | 22 Sep 2009 | 4:24 am BSE Sensex provisionally rises 0.7 pctMUMBAI (Reuters) – The BSE Sensex provisionally closed 0.72 percent higher on Tuesday, helped by ample liquidity and hopes of better quarterly earnings.Source: Reuters: Money News | 22 Sep 2009 | 4:18 am Rupee turns weaker by 10 paisa against dollarThe Indian rupee fell by 10 paisa at 48.23 against the US dollar in morning trade today on month-end dollar demand.Source: Hindustan Times News Feeds 'Business' | 22 Sep 2009 | 4:14 am GIC trims Citi stake to below 5%; reaps $1.6 bnSingapore: Singapore’s largest sovereign wealth fund GIC said on Tuesday it had halved its stake in Citigroup to below 5%, making a profit of $1.6 billion as global equity markets rebound. The stake sale came after Singapore’s smaller fund Temasek Holdings lost an estimated over $4 billion in Bank of America-Merrill Lynch and Barclays in hasty exits around the start of 2009. Analysts said GIC, also known as the Government of Singapore Investment Corp, took advantage of a rally in world stocks to take some money off the table and the sale suggested the fund may have some concerns about the outlook for global banks. “Perhaps timings wise GIC benefited from the rally,” said Song Seng Wun, an economist at CIMB. “The sale also reflects underlying concerns that although global institutions may have seen their darkest days, there could still be uncertainty ahead as OECD countries in particular could see patchy growth as a result of the recession,” he said. From late 2007, GIC plouged billions of dollars into Citigroup and UBS and like other sovereign funds, had suffered initial losses in battered global banks as the financial crisis hit companies. Ng Kok Song, group chief investment officer of GIC, which manages an estimated $200 billion-plus in assets, said the fund realized a profit of $1.6 billion from the sale of Citigroup shares. The Singapore investor had a profit including unrealized gains of about $3.2 billion based on Citigroup’s closing price of $4.43 on 21 September, he said. On 11 September, GIC exchanged its $6.88 billion holding of Citigroup convertible preferred stock into ordinary shares at $3.25 a share as part of a rescue package, gaining in the process an over 9% stake in the US bank. “A stake below 5% reflects GIC’s goals and desire to be a portfolio investor,” it said in a statement. “GIC will continue its investment in Citigroup as we are confident of its long-term prospects.” Source: World Business - Livemint.com | 22 Sep 2009 | 3:57 am Market stable; FMCG, auto lead - Economic Times
Source: Business - Google News | 22 Sep 2009 | 3:55 am Bharti stock down 3 per cent as MTN deal gets costlier - Economic Times
Source: Business - Google News | 22 Sep 2009 | 3:55 am Sabah expansion needs $145150m investment: BallarpurNow while pulp prices have hardened to around USD 560 per tonne, BILT says any price hike of paper will depend on competition. The company is also contemplating an investment of USD 145150 million for expanding the Sabah Mill in Malaysia.Source: Moneycontrol Top Headlines | 22 Sep 2009 | 3:55 am ADB raises growth forecast for India - Times of India
Source: Business - Google News | 22 Sep 2009 | 3:54 am Crisis is an opportunity, designer Versace saysMILAN (Reuters Life!) - The world financial crisis is an opportunity, allowing more creative ideas to come about, Italian designer Donatella Versace said, adding consumers wanted to be stimulated at this time.Source: Reuters: Money News | 22 Sep 2009 | 3:48 am BILT\'s FY09 PAT at Rs 187.9 crBallarpur Industries Limited (BILT), announced its financial and operating results for FY 200809 and Q4 FY 2009.Source: Moneycontrol Top Headlines | 22 Sep 2009 | 3:47 am IIT directors appeal to faculties not to go on hunger strike - Business Standard
Source: Business - Google News | 22 Sep 2009 | 3:42 am UN seeks to spur climate talks; Obama, Hu to speakUNITED NATIONS (Reuters) - China and the United States will seek to revive stalled negotiations on a new pact to combat global warming at a U.N. summit on Tuesday amid warnings that time is running out.Source: Reuters: Money News | 22 Sep 2009 | 3:40 am NTPC may sign deal with RIL for natural gas at $4.20/mmBtuNew Delhi: After a series of flip-flops, NTPC is likely to finally sign an agreement with Reliance Industries this week to buy government alloted natural gas at officially approved price of $4.20 per mmBtu. However, the state-run power utility may initially draw less than one-fourth of its allocation. “NTPC has informed that they have got internal approvals for signing of the Gas Sales and Purchase Agreement (GSPA) and it may be signed in the next couple of days,” an Oil Ministry official said after a meeting called to review unsigned GSPAs. The government had last year allocated 2.67 million cubic metres per day of KG-D6 gas to NTPC’s Kawas, Gandhar and Anta power plants in Gujarat, a move that drew huge protests from RIL that wanted the pending legal dispute over gas it had committed in a 2004 tender of the state-run firm was resolved. NTPC vehemently fought back saying its litigation against RIL was for future expansion projects at Kawas and Gandhar and the present supplies were for present plants. After the allocation was confirmed, it did a volte-face refusing to take gas for existing Kawas and Gandhar plants. “Against an allocation of 2.67 mmscmd, GSPA for only 0.61 mmscmd of gas for Anta unit will be signed for now,” he said. “Government will have to take a call on reallocating the remaining gas to NTPC’s other plants.” NPTC, which unlike the 40-odd customers of KG-D6 gas was initially opposed paying $0.135 per mmBtu marketing margin to RIL, has agreed to pay the levy. The official said of the initial 40 mmscmd of output from RIL’s KG-D6 field, NTPC, Dabhol power plant, Essar Power and Oil and Natural Gas Corp (ONGC) are yet to draw a single unit. RIL can produce over 60 mmscmd of gas from KG-D6 fields but is restricting output to 37 mmscmd in the absence of offtake from existing customers like NTPC and failure of the government to name consumers beyond the initial 40 mmscmd. At the meeting today, Ratnagiri Gas and Power Pvt Ltd — the firm that runs the 2,150-MW Dabhol power plant in Maharashtra — informed that it will begin drawing 5.67 mmscmd gas from 1 October, the official said. ONGC, which had been allocated 0.4 mmscmd for its LPG extraction plants, was likely to sign GSPA by mid-October as it was yet to arrange for a suitable swap, he said. KG-D6 gas is lean (only methane) and cannot be used to extract LPG. So this gas will have to be swapped with some users who are currently using rich-gas from western offshore. The government had allocated 3 mmscmd of KG-D6 gas for LPG plants, and of this state gas utility GAIL has taken 2.59 mmscmd. Essar Power was negotiating a gas transportation agreement for taking KG-D6 gas at its Hazira plant in Gujarat. Source: LatestNews-Home - Livemint.com | 22 Sep 2009 | 3:26 am GIC trims Citi stake to below 5 pct; reaps $1.6 blnSINGAPORE (Reuters) - Singapore's largest sovereign wealth fund GIC said on Tuesday it had halved its stake in Citigroup to below 5 percent, making a profit of $1.6 billion as global equity marketss rebound.Source: Reuters: Money News | 22 Sep 2009 | 3:23 am Dell to buy Perot Systems for $3.9 bnThe world\'s number one PC makerDell has finally put its healthy cash balance to use by agreeing to buy IT company Perot Systems for about USD 3.9 billion in cash. Dell said it expects the deal to add to its earnings from fiscal 2012 and the deal may close in the November to January quarter.Source: Moneycontrol Top Headlines | 22 Sep 2009 | 3:20 am Roadmap under preparation to meet IFRS deadline of April 1, 2011Indian accounting professionals are facing a challenging time with the deadline to International Financial Reporting Standards (IFRS) transition.Source: Daily News & Analysis: Money News | 22 Sep 2009 | 3:19 am Sterlite offers Grupo Mexico out of Asarco penaltyThe latest in the race for Asarco is that Sterlite Group filed a document in the court yesterday. Sterlite Industries offer Grupo Mexico out of Asarco penalty, if the company wins.Source: Moneycontrol Top Headlines | 22 Sep 2009 | 3:18 am Indian rupee strengthens on foreign fund inflow hopes - Reuters India
Source: Business - Google News | 22 Sep 2009 | 3:08 am ADB lifts India’s FY10 growth forecast to 6%New Delhi: The Asian Development Bank (ADB) on Tuesday raised India’s growth forecast for 2009-10 on higher public spending, stronger factory output and improved business confidence, but warned rising fiscal deficit is unsustainable. In the Asian Development Outlook 2009 update, the bank lifted the growth forecast for the year to end-March 2010 to 6% from earlier 5%. In 2010-11, it expects the economy to grow by 7% from the previously estimated 6.5% on hopes of better rainfall and a rebound in exports. In the 2008-09 fiscal year, India’s economy grew 6.7%, its weakest in six years and well below rates of 9% or more in the previous three years. To offset the pain of the global downturn and stimulate demand, the government stepped up spending and reduced tax rates. The Reserve Bank of India (RBI) cut its main lending rate by 425 basis points from October 2008 to April this year and injected massive liquidity into markets. “The government’s strong fiscal stimulus, complementing the Reserve Bank of India’s aggressive monetary policy easing, has successfully brought last year’s economic slowdown to an end,” the ADB said. The RBI expects the economy to grow by 6% or more in the current fiscal year. But economists fear a poor farm output, following scanty rainfalls, could shave off the economic growth by as much as 2 percentage points. Farm output makes about 17% of the country’s GDP. The multilateral bank said weak agricultural output is expected to weigh on economic growth in the September and the December quarters and the economy is likely to rebound in the March quarter. “The impact of difficult weather conditions on rural incomes and consumption will be partly offset by budgetary programs to aid households in the countryside and possible supplementary support,” the bank said in its report. India’s economy grew 6.1% in the June quarter from a year earlier. The bank, however, said India’s growing fiscal deficit, following a public expenditure-led growth strategy, poses a risk to the economy and could crowd out private investment. India’s federal fiscal deficit in 2009-10 is projected to rise to 6.8% of the GDP, a 16-year high, to be funded by a record Rs4.51 trillion ($94 billion) market borrowing. “This risk is most likely to arise in 2010, and underscores the need for the government to follow through on its plans to make fiscal adjustments.” In July, the government said it would aim to bring down the fiscal deficit to 5.5% of GDP in 2010-11 and further to 4% in 2011/12. The Manila-based bank sees high domestic food prices as a challenge for the central bank’s monetary policy. The food articles index has surged an annual 15.4% this year and is seen adding pressure on the central bank to speed an exit from easy monetary policy. The central bank’s quarterly review is on 27 October. Source: Home - Livemint.com | 22 Sep 2009 | 3:06 am Zandu Pharma shareholders approve merger with EmamiMumbai: Zandu Pharmaceutical on Tuesday said it has received shareholders’ approval for its merger with Emami and Emami Infrastructure. In a filing to the Bombay Stock Exchange, Zandu Pharmaceutical said at the court convened meeting of the company’s equity shareholders on 11 September, 99.87 percentage of shareholders voted in favour of the merger. “A majority of the shareholders of Zandu Pharmaceutical Works holding more than 75 per cent of the value of shares present and voting have passed the resolution approving the scheme of arrangement,” the filing added. Shares of the company witnessed an intra-day high of Rs11,339.95, up 1.56% from its previous closing price. It was later quoted at Rs11,199, up 0.30% on the BSE. Meanwhile, the Kolkata-based FMCG firm Emami is looking at segregating markets as products of Emami and Zandu brands overlap in some categories such as pain balms and chyawanprash. The company is also planning a makeover of the Zandu brands to avoid a product clash in specific categories. Source: Home - Livemint.com | 22 Sep 2009 | 3:05 am Allianz to delist from NYSE, other exchangesFrankfurt: German insurer Allianz SE said on Tuesday it will abandon its listing on the New York Stock Exchange, and others, to reduce complexity. The Munich-based company said it has already filed a written notice to the NYSE and that it would inform exchanges in London, Milan, Paris and the Swiss Exchange in due course. The company said trading on foreign exchanges amounted to less than 5% of the total trading of Allianz shares in recent years, despite the fact that about 70% of the company’s stock is held by investors outside of Germany. The company said it will focus its trading mainly on Frankfurt’s Xetra platform and said the move will have no impact on the strategic orientation of Allianz and shouldn’t affect its presence on markets outside Germany. “Allianz adjusts to international trading practices and by doing so reduces the complexity of its presence in the capital markets,” Allianz management board member Paul Achleitner said in a statement. “The vast majority of international investors already uses our listing in Frankfurt to buy and sell Allianz shares.” Shares of Allianz were 1.2% higher at €84.67 ($125.31) in Frankfurt morning trading. Source: LatestNews-Home - Livemint.com | 22 Sep 2009 | 3:01 am EU court adviser backs Google over LVMH on Net adsLUXEMBOURG (Reuters) - An adviser to the European Union's top court backed Google on Tuesday in a row with luxury goods maker LVMH over Internet advertising, saying the Web search firm had not infringed trade mark rights.Source: Reuters: Money News | 22 Sep 2009 | 3:00 am NTPC exploring tieups with oil PSUs for NELPVIII bidWith increased availability of domestic gas, NTPC Ltd wants to step up building new power stations with gas as feedstock.Source: Moneycontrol Top Headlines | 22 Sep 2009 | 2:49 am ADB lifts India's FY10 growth forecast to 6 pctNEW DELHI (Reuters) - The Asian Development Bank on Tuesday raised India's growth forecast for 2009/10 on higher public spending, stronger factory output and improved business confidence, but warned rising fiscal deficit is unsustainable.Source: Reuters: Money News | 22 Sep 2009 | 2:49 am FTSE up 1% early as commodity issues reboundLondon: Britain’s leading share index rose 1% in early trade on Tuesday, buoyed by a rebound in commodity issues which gained strength from a rise in metals and oil prices, while defensive utilities lost ground. By 0817 GMT the FTSE 100 was up 48.64 points at 5,183.00, after closing 0.7% lower on Monday to end a six-session winning streak. Miners added the most points to the index as metals prices turned positive. Fresnillo, BHP Billiton, Kazakhmys, Lonmin, Rio Tinto, Xstrata and Vedanta Resources rose 2.4 to 4%. The FTSE has rebounded close to 50% since the lows hit in March, and is on track to post the best quarterly gains since the index was launched in 1984. Trading, however, was subdued at just 9% of the average 90-day trading volume. “Nobody seems to be understanding the rally very well. Because we’ve had so much momentum people are very reluctant to short it,” said Arifa Sheikh-Usmani, equity trader at Spreadex. “Generally there is a sense that the market has overheated a little and might just stagnate for a while,” she said. Investors will be keeping a close eye on a two-day US Federal Reserve meeting which begins on Tuesday, and a G20 meeting at the end of the week. Oils Stronger Oil majors advanced as crude prices rose above $70 a barrel on a technical rebound from a 3.2% decline. BG Group, BP , Cairn Energy, Royal Dutch Shell, and Tullow Oil were up 1 to 2.8%. Among other gainers, Carnival rose 2.8% after Banc of America-Merrill Lynch added the firm to its “Europe 1” list. Imperial Tobacco rose 0.6%, after the world’s No. 4 cigarette group said its current-year trading remained in line with its own expectation. “We continue to see Tobacco as the most attractive of the European Consumer Staples sectors, and Imperial ... remains the best way to play the space,” RBS analysts wrote in a note. Cadbury edged up 0.4%. The confectionary firm has approached the UK takeover panel to ask Kraft Foods to either make a formal takeover proposal or walk away for six months, the Financial Times said, citing people close to the matter. On the downside, Severn Trent declined 2.4% on worries about a possible rights issue, sparked by Monday’s downgrade of the stock by Evolution Securities to “add” from “buy”. Fellow utility firms Centrica, National Grid and United Utilities shed 0.1 to 1.7%, under pressure from demand for riskier assets at the expense of defensive issues. Defensive food retailers were also lower, with supermarket chains WM Morrison and J Sainsbury losing 0.4 and 0.5% respectively, while Tesco was flat. With a lack of UK economic data on Tuesday to give direction to the market, only the US monthly house prices data for July is likely to generate some interest at 1400 GMT. Source: LatestNews-Home - Livemint.com | 22 Sep 2009 | 2:49 am HewlettPackard set to roll out new productsHewlettPackard has said that it will continue to roll out new products, undeterred by a dip of 18per cent in revenues for the quarter ended July.Source: Moneycontrol Top Headlines | 22 Sep 2009 | 2:45 am Sensex gains 135 points as market extends rallyThe stock markets remained firm for the fifth consecutive day with the benchmark Sensex gaining 135 points on better buying by foreign funds and short covering by investors ahead of the expiry of derivatives segment contract on Thursday.Source: Hindustan Times News Feeds 'Business' | 22 Sep 2009 | 2:44 am Communications ministry not involved in Bharti-MTN deal: RajaCommunications and IT Minister A. Raja Tuesday said the proposed $23-billion deal between telecom majors Bharti Airtel and South Africa's MTN was not under his ministry's ambit.Source: IndiaeNews.com: Business News | 22 Sep 2009 | 2:32 am ADB raises growth forecast for IndiaOwing to increased public spending and improved business confidence, the Asian Development Bank (ADB) has hiked its growth forecast for India from 5 percent to 6 percent this fiscal.Source: IndiaeNews.com: Business News | 22 Sep 2009 | 2:32 am Equity dilution fear takes toll on Gujarat NRE Coke - India Infoline.com
Source: Business - Google News | 22 Sep 2009 | 2:30 am Bharti stock down 3 percent as MTN deal gets costlierThe scrip of telecom major Bharti Airtel fell about 3 percent on the Bombay Stock Exchange (BSE) on reports that the company may have to further sweeten its offer for South African telcom company MTN.Source: IndiaeNews.com: Business News | 22 Sep 2009 | 2:30 am Rupee strengthens on foreign fund inflow hopesMumbai: The Indian rupee strengthened on Tuesday as the upbeat domestic share market fuelled hopes of foreign portfolio inflows. At 1:43pm,the partially convertible rupee was at Rs48.05/06, from Friday’s close of Rs48.13/48.14. It had touched a low of Rs48.22 in early deals. The market was closed on Monday for a holiday. Indian shares rose to fresh 16-month highs on Tuesday as high liquidity and hopes of strong quarterly earnings saw the market extend last week’s gains as trade resumed after a holiday. The euro hit a one-year high against a broadly weak dollar on Tuesday as dealers took advantage of the US currency’s rise the previous session to resume selling ahead of a Federal Reserve monetary policy meeting and a Group of 20 summit later in the week. Source: LatestNews-Home - Livemint.com | 22 Sep 2009 | 2:12 am RCom's capex to decline starting this year: Anil Ambani - Business Standard
Source: Business - Google News | 22 Sep 2009 | 2:04 am Sensex up 0.78 percent in noon tradeA key index of the Indian equities market was ruling 0.78 percent higher than its previous close about an hour after noon Tuesday after having opened only marginally higher.Source: IndiaeNews.com: Business News | 22 Sep 2009 | 2:02 am HOEC resolves disputes on PY-1 field - Equity Bulls
Source: Business - Google News | 22 Sep 2009 | 1:44 am IMB to acquire RedPill SolutionsRedPills data models and expertise, developed through the successful execution of multiple analytic projects, would enhance IBMs current work to improve the speed and quality of clients business decisions.Source: Daily News & Analysis: Money News | 22 Sep 2009 | 1:44 am RCom revives tower unit IPO plansMumbai: Reliance Communications has revived IPO plans for its tower unit more than a year after it shelved a similar proposal amid a slump in equity markets worldwide. Reliance Communications, which has 85 million subscribers and wants to reach 100 million by the end of the year, would also make a placement of shares to institutions at the appropriate time to cut debt, chairman Anil Ambani said at the annual meeting of shareholders. Reliance Infratel, which has more than 48,000 towers, would shortly file a regulatory application with the capital markets regulatory for an initial public offering, he said. Reliance Communications holds 95% of the tower arm now. “The company will offer 10% equity to investors,” said Ambani. Bank of America Merrill Lynch gave a rough enterprise value of $13 billion to $14 billion for Reliance Infratel in a research note released in early September. In February 2008, Reliance Infratel had filed a regulatory application for an IPO of 10.05%, which media reports at the time said would be worth more than $1 billion. Ambani said Reliance Communications, which has spent Rs400 billion ($8.3 billion) over the last two years, would see a significant decline in capital expenditure this fiscal year. “Now with the peak of our capex cycle behind us, we are getting ready to reap the full benefits of these in the form of strong cash flows,” Ambani said. Reliance Communications, which the market values at $13.2 billion, was up 0.3% at Rs307.50 at 0655 GMT. The shares have risen 35% so far this year, lagging a 75% rise in the main share index. Source: Home - Livemint.com | 22 Sep 2009 | 1:37 am ADB raises Asia forecasts as region leads recoveryManila: Asia has proved to be more resilient than expected to the global financial crisis with economic growth rebounding after governments adopted supportive monetary and fiscal policies, the Asian Development Bank said on Tuesday. The Manila-based multilateral bank raised its estimate of average growth in developing Asian economies to 3.9% in 2009 from a forecast of 3.4% made in March. It also raised the 2010 growth forecast to 6.4% from 6.0%. But it stressed a regional recovery was not yet on solid footing, and said policymakers risked derailing growth if they withdraw stimulus policies too early. “Underpinning the resurgence was the impetus to demand from expansionary fiscal and monetary actions taken by governments throughout the region, especially China and India,” the ADB said in its updated annual outlook, adding that Indonesia and Vietnam also saw solid economic growth. “Tax cuts, greater public spending, targeted assistance and easy monetary policies boosted consumption and investment.” The ADB said growth in China in 2009 should come in at 8.2%, up from its March forecast of 7.0%. Growth should surge to 8.9% in 2010, it said. Many Asian economies have pinned their hopes on a strong rebound in China amid persistently weak consumer demand in US and European export markets. For India, growth was projected at 6.0% this year and 7.0% next year, up from the previous forecasts of 5.0% and 6.5%, respectively. “In short, the 2010 outlook is for growth to come back strongly relative to 2009, giving a V-shaped trajectory to developing Asia’s recovery from the world recession,” it said. Nevertheless, the forecast 2009 growth will still be the lowest since 1998, at the time of the Asian financial crisis. “Developing Asia will only be able to regain a high-growth trajectory if the global economy is growing closer to its potential,” the ADB said. “With external demand from the main industrial countries still relatively weak, it will be difficult for developing Asia to return to the high growth rates of 2006-07.” INFLATION, MONETARY POLICY The ADB said the resumption of growth had taken place against a backdrop of low inflation or even mild deflation. Its forecast for average inflation across the region is 1.5% for 2009, from its previous forecast of 2.4%. It said the threat of inflation remained muted, although it was likely to tick up to 3.4% in 2010. “This is not the time for an exit from expansionary policies -- the recovery remains fragile and subject to serious downside risks,” the ADB said, referring to massive amounts of stimulus that many countries introduced during the global crisis. “Pulling away the carpet of fiscal and monetary support before the recovery has a firm foothold may lead to a double-dip decline instead of the expected V-shaped rebound.” However, it added, “Central bankers in the region will want to put a tight watch on monetary policies so as not to encourage asset bubbles that would inflate prices to levels that are no longer justified by fundamentals.” Source: LatestNews-Home - Livemint.com | 22 Sep 2009 | 1:35 am Sept qtr corp advance tax seen up 15 pctNEW DELHI (Reuters) - India's corporate advance tax in the September quarter is expected to rise 14.7 percent to 440.10 billion rupees ($9.14 billion), a finance ministry official said on Monday, adding it is expected to see better growth in the December quarter.Source: Reuters: Money News | 22 Sep 2009 | 1:31 am Hatoyama proposes East Asian community to ChinaNew York: Japan’s new Prime Minister Yukio Hatoyama made his global debut on Monday with a message of reconciliation to China, asking President Hu Jintao to work together for an EU-style East Asian community. Less than a week into office, Japan’s new center-left leader flew to New York for the UN General Assembly. He plans to meet world leaders here and at the Group of 20 summit in Pittsburgh. Hatoyama, who advocates an easing of Japan’s long prickly ties with its giant neighbor, told Jintao that he intends to push a vision of an East Asian community to unify the region, possibly under a single currency. “I told (Hu) that I would like to form an East Asian community by overcoming differences,” including a dispute over exploitation rights for gas fields lying near islands the two countries claim in the East China Sea, Hatoyama told reporters. Jintao stopped short of agreeing to the proposal but said he wants to “make it a peaceful and friendly sea” by tackling sticking points, a Japanese government official said. Hatoyama’s Democratic Party of Japan ended more than half a century of almost unbroken conservative rule in a sweeping election victory last month. While few expect East Asia to immediately overcome wartime memories and create an Asian Union, his tone marked an unmistakable sign from Japan’s new leader that he wants to work with, rather than against, a rising China. Hatoyama said he would follow a landmark statement of apology for Japan’s wartime aggression which was issued in 1995 by then prime minister Tomiichi Murayama—one of the few other left-leaning leaders in modern Japan. “I highly praise your stance of sticking to the Murayama statement over the recognition of past history,” Jintao told Hatoyama, acccording to the Japanese official. Hatoyama has recently proposed to build a new state memorial to serve as an alternative focus to the controversial Yasukuni shrine, which honors war dead but also 14 convicted war criminals and is often seen as a symbol of Japan’s past militarism. Hatoyama also plans to meet South Korean President Lee Myung-Bak in New York on Wednesday ahead of a planned three-way summit of Beijing, Seoul and Tokyo next month. During the meeting, Jintao welcomed Hatoyama’s pledge to dramatically step up Japan’s commitment to fighting climate change by pledging to cut greenhouse gas emissions by 25% from 1990 levels by 2020. Hatoyama is expected at a special UN climate summit on Tuesday to also offer help to poor countries to combat climate change. Chinese officials have also indicated that they expect a strong statement from Jintao to break a diplomatic logjam in climate negotiations. The Japanese official said Jintao told Hatoyama that China will “also make an effort to achieve success” at a December meeeting in Copenhagen meant to seal a post-Kyoto treaty. Relations between Japan and China plunged to modern lows during the 2001-2006 premiership of Japanese prime minister Junichiro Koizumi, who annually visited the Yasukuni shrine and sought a greater global role for Japan. But some analysts predict that hiccups in relations will remain under Hatoyama, who has called for Japan to be more outspoken on human rights including Tibet, where China sent troops in 1950 and last year clamped down on protests. The Japanese official said Jintao told Hatoyama, “I would like you to understand the Tibet issue.” Hatoyama replied: “Basically, we regard it as a domestic issue, but I hope this will be resolved through dialogue.” Source: LatestNews-Home - Livemint.com | 22 Sep 2009 | 1:28 am Reliance Comm revives tower unit IPO plansMUMBAI (Reuters) - Reliance Communications, India's No. 2 mobile operator, has revived IPO plans for its tower unit more than a year after it shelved a similar proposal amid a slump in equity markets worldwide.Source: Reuters: Money News | 22 Sep 2009 | 1:22 am Anil Ambani's Reliance Infratel to go publicTelecommunications provider Reliance Infratel, promoted by Reliance Communications and part of the R-ADA group, will come out with an initial public offer to the tune of 10 percent of its paid-up equity capital, group chairman Anil Ambani said here Tuesday.Source: IndiaeNews.com: Business News | 22 Sep 2009 | 1:00 am Noon: Sensex up 0.8% on foreign fundsMumbai: Indian shares rose to fresh 16-month highs on Tuesday as high liquidity and hopes of strong quarterly earnings saw the market extend last week’s gains as trade resumed after a holiday. Bharti Airtel declined 2.2% to Rs432.75 after a report it had offered sweeteners for its proposed tie-up with South Africa’s MTN ahead of a 30 September deadline for the deal. Largest-listed firm Reliance Industries, which has the biggest weighting on the main index, was up 0.9% at Rs2,117.5 rupees after a report it was looking to buy some or all of bankrupt petrochemicals maker LyondellBasell. The company raised around $600 million through a share sale last week, which analysts had said could help fund acquisitions. At 12:38pn, 30-share BSE Sensex was 16847.15 up by 105.85 points and the 50-share NSE Nifty was at 5002.50 up by 26.45 points. “The gush of money is so much that the market does not seem to be taking a pause,” said Gajendra Nagpal, CEO of Unicon Financial pointing to the huge foreign fund inflows. Foreign funds have been net buyers of $1.5 billion of shares in September, and their net buying of nearly $10 billion in 2009 has been a key driver of the market’s 75% rise. “Over the last two, three days, we were all expecting that market might not fall significantly, but it may at least take a breather. But that didn’t happen,” added Nagpal. IT companies gained on hopes that the worst may be over for most developed economies, which are the major markets for these companies. Top software exporter Tata Consultancy rose 1.2% to Rs590.75 and second-ranked Infosys Technologies gained 1.5% to Rs2,399.30. Sterlite Industries fell 2.3% to Rs744.20 after it said it would release Grupo Mexico SAB de CV from a potential legal liability of nearly $8 billion if the Indian miner won control of bankrupt U.S. copper miner Asarco LLC. In the broader market, there were more than two gainers for each share that lost ground, on volume of 225 million shares. The MSCI’s measure of other Asian markets was up 0.7%. Japanese markets are closed until Thursday for public holidays. Source: Home - Livemint.com | 22 Sep 2009 | 12:57 am Far Eastern Economic Review to shut after 63 yearsHong Kong / New York: The Far Eastern Economic Review, one of Asia’s leading print publications, will be shut down by News Corp as it struggles with losses and a dwindling readership migrating to the Internet. The 63-year-old magazine, which was run by News Corp’s Dow Jones and enjoyed a weighty reputation for its fearless and in-depth Asian business and political coverage since World War-II, will close in December, Dow Jones said. The announcement marks the denouement of what observers and former staffers said had been a gradual decline in the fortunes of one of the great titles in Asian journalism, once considered essential reading for the region’s intelligentsia. “The decision to cease publication of the Review is a difficult one made after a careful study of the magazine’s prospects in a challenging business climate,” said Todd Larsen, chief operating officer at Dow Jones Consumer Media Group. In 2004, Dow Jones fired most of FEER’s reporters and transformed it into a monthly publication. Articles were largely commissioned and only a skeleton editorial staff was retained. David Plott, FEER’s editor at the time, described the upheaval in 2004 as a loss of one of the “greatest concentrations of knowledge and expertise about the region assembled anywhere”. The magazine’s demise comes as publishers gravitate towards electronic media and advertising revenues dwindle. In 2001, Asiaweek, another respected Asian weekly magazine, folded after 26 years. “It’s paradoxical that as the region becomes more and more important, there are fewer and fewer publications producing quality coverage,” said Hugo Restall, FEER’s current editor. Restall will remain on the editorial board of the Wall Street Journal, also run by Dow Jones. A string of notable figures and correspondents have worked for FEER, including John King Fairbank, the Harvard sinologist, and the writer Ian Buruma. Singapore Lawsuit Throughout its history, FEER’s investigative and critical journalism has sparked tussles with Asian governments. The magazine is currently embroiled in a legal battle with the Singapore government, with the island state’s High Court ruling it defamed elder statesman Lee Kuan Yew and his son, incumbent prime minister Lee Hsien Loong. FEER subsequently appealed the verdict. “If we lose that then there’s a question of whether they want to try to enforce the judgment in Hong Kong. Conceivably it could continue,” said Restall. Another FEER editor, Philip Bowring, also grappled with a lawsuit by the Singaporean government before he left the Review in 1992. “It’s important that these sort of battles are fought even if you don’t win. At least you must put up a good fight,” said Bowring. “The one thing I do wonder about is the timing of this closure -- whether or not Singapore is going to drop that suit now that (Rupert) Murdoch has said that he’s going to close the magazine.” Source: Home - Livemint.com | 22 Sep 2009 | 12:48 am Lenders may carve out JAL’s profitable operationsTokyo: Lenders to Japan Airlines Corp may seek to split the carrier between its profitable and loss-making parts, two sources familiar with the matter said on Tuesday, as part of a radical overhaul that could also see foreign carriers invest in Asia’s largest airline by revenue. Delta Airlines and American Airlines, with British Airways and Qantas Airways, are in rival talks to invest in JAL and form an operational alliance, as JAL also plans for job losses and route reductions. But the Development Bank of Japan (DBJ) and other lenders are reluctant to offer additional loans without further restructuring and deeper government involvement, the sources said. “The turnaround plans are not enough. A capital raising from foreign carriers is not enough, either,” one of the sources told Reuters. New transport minister Seiji Maehara is to meet the airline’s CEO and officials from the lenders separately on Thursday to discuss JAL’s revival plans. Last week, Maehara said JAL must not be allowed to fail, indicating the state would support the struggling carrier as it seeks fresh funding. Only the leading lender DBJ may refer to the separation plan in the meeting, one of the sources said, as the lenders have yet to reach an agreement on the issue. Job, routes to go JAL lost about $1 billion last quarter and has been scrambling to put together a revival plan to submit to the transport ministry, which is supervising its restructuring after the state backed a ¥100 billion ($1.1 billion) loan. Up to 6,800 jobs and 50 unprofitable routes will be cut by March 2012 in an effort to slash operational costs by 30%, according to a draft plan submitted by JAL last week and obtained by Reuters. Tokyo to Rome and Osaka to Dalian are among the 21 international routes earmarked to go. The carrier is seeking another ¥250 billion in funds through a mixture of debt and equity. The lenders are poised to ask the government for a drastic overhaul of JAL, including calling for streamlining of the carrier’s operations by separating them into distinct entities, the Nikkei business daily reported earlier on Tuesday. The “new” section would comprise profitable routes, while the “old” section would absorb unprofitable routes and segments, the Nikkei said. Another proposal under consideration would have the government provide capital to JAL’s new entity as part of a temporary nationalisation of these operations, the daily said. The old entity would then be subject to a liquidation of assets over time, while taking into account the interests of local communities that would be impacted by such a move, it said. “Not only us, but the financial institutions are all first waiting for the plan (of rebuilding) to be crafted,” an official at the DBJ, who declined to be identified, told Reuters. “At such a stage, it is unlikely that we suddenly ask to split into “new” and “old” sections,” he said. JAL could not be reached for comment. Japanese markets were closed on Tuesday for a holiday. JAL shares have fallen 19% so far this year, lagging the 17% rise in the Nikkei average. Source: Home - Livemint.com | 22 Sep 2009 | 12:39 am Asian shares edge up, dollar runs out of steamHong Kong: Asian shares edged higher on Tuesday, helped by gains in South Korean technology shares, while the New Zealand dollar surged to a 13-month high on signs of a recovery in prices for the country’s key dairy exports. European stock futures were up 0.5% while US equity futures were 0.2% higher. The US dollar ran out of steam, pulling back to around ¥91.70 after reaching ¥92.53 on Monday. However, analysts do not expect the US currency to slip much ahead of a US Federal Reserve monetary meeting on Tuesday and Wednesday, and a G20 summit this week. “Persistent consolidation seems to have set in ahead of the G20 meeting,” said Clifford Bennett, chief economist at Kinetic Securities in Australia. “Especially in the currency market there is increasing fear of some ‘strong dollar’ statements and/or political rhetoric about the euro being too strong.” Volumes were capped as Japanese financial markets are closed until Thursday for public holidays. Malaysian and Indonesian markets were also closed for public holidays. In Australia, shares were little changed, dampened by an overnight drop in commodities prices although gold bounced back as the dollar retreated and oil recovered to $70 a barrel. South Korean shares climbed 1.4%, helped by gains in tech stocks after Merrill Lynch upgraded Hynix Semiconductor, the world’s No. 2 memory chip maker. Shares in Hynix gained 2.8% and Samsung Electronics, the world’s biggest maker of memory chips, jumped 3.4% although the company said it was cautious on the outlook for the sector. Treasury bond futures fell after the Bank of Korea said it was ready to use monetary policy to help calm rising property prices. Fed Watch The MSCI index of Asia Pacific stocks traded outside Japan edged up 0.7% and has nearly doubled since early March when markets began pricing in an economic upturn. In the past two months, a slowing equity rally together with abundant liquidity and easing inflation means equity and bond markets have both gained ground. But Adrian Foster, head of Asia-Pacific financial markets at Rabobank, says both markets could retreat in the next few months. “We think equities have priced in a reasonable economic recovery,” Foster said. “Over the next few months, bonds could back off a bit on improving economic data and we’ll see higher yields.” The Asian Development Bank raised its growth forecasts for ‘developing Asia’ to 3.9% for 2009, from 3.4%, and lifted its 2010 forecast to 6.4% from 6%. Financial markets will be watching the US Federal Reserve’s two-day monetary policy meeting for any comments indicating the Fed might wind back its super-accommodative policy stance given improving US economic data. That would be a boost for the dollar if it does, analysts said. The New Zealand dollar surged to a 13-month high above $0.7159, after the country’s Fonterra group, the world’s largest dairy exporter, raised its estimated payout to farmer shareholders for the 2009-10 season by 12%, citing signs of a recovery in dairy prices. Fonterra generates about 7% of New Zealand gross domestic product. The kiwi, which has rallied more than 40% from a six-year low plumbed in early March, was also supported by current account data that showed New Zealand’s second quarter deficit at its lowest level in nearly five years. Commodities prices steadied after the Reuters-Jefferies CRB index of commodities tumbled 2.2% in New York trade, its largest percentage drop in five weeks. China is expected to remain a fervent buyer. Its sovereign wealth fund China Investment Corp has bought a 14.5% stake in Singapore-listed global commodities trader Noble Group, according to sources, giving China greater exposure to global commodities and trading expertise. Shares in Noble, which has interests from Brazilian sugar to Australian coal, remained suspended. China shares were weak with the Shanghai share index dropping 1.6% as fears persisted that upcoming IPOs will create excess supply of shares. Source: Home - Livemint.com | 22 Sep 2009 | 12:31 am Magna chief to talk with Volkswagen on Opel dealTokyo: The chief executive of the Canadian parts maker that is buying a stake in Opel from General Motors said Tuesday talks are planned with Volkswagen to ease the German automaker’s concerns about the deal. “Volkswagen has said they are concerned, so we need to finalize internal procedures and have more discussions with them,” Don Walker, co-chief executive officer of Magna International Inc., told reporters. He declined to give details, saying he hadn’t talked with Volkswagen yet. One concern over the deal is that Magna could give Opel preferential treatment in supplying parts. Another is about conflict of interest in that Opel or customers of Magna may get hands on coveted technology. Analysts say some automakers, such as Volkswagen AG, may decide to move away from buying Magna parts. Walker acknowledged he needs to ease concerns from customers, but reiterated that Opel and Magna will remain separate. He said Magna, based in Aurora, Ontario, wasn’t “taking over” Opel and will remain a parts maker. “Most of the customers I have talked to personally want to know how we have a separation to protect technology, but they have told me that they are comfortable with it,” said Walker. US automaker General Motors Corp. said Sept. 10 that it had agreed to cede a 65% stake in the German-based Opel to Magna International Inc., the auto parts supplier, and Russia’s state-owned Sberbank. GM keeps 35% and Opel’s workers get 10%. Under the deal, expected to close by 30 November, the German government also pledged $6.5 billion in credit. Magna, the world’s third largest auto supplier, will send executives to fill three seats on Opel’s 20-member board, but those executives will no longer be with Magna, Walker said. “Opel will be a stand-alone company,” he said, adding that the final deal will likely close in the next few months. GM is Magna’s biggest customer. Detroit-based GM emerged from bankruptcy protection on 10 July and has received $50 billion in US government aid. Source: World Business - Livemint.com | 22 Sep 2009 | 12:26 am Magna chief to talk with Volkswagen on Opel dealTokyo: The chief executive of the Canadian parts maker that is buying a stake in Opel from General Motors said Tuesday talks are planned with Volkswagen to ease the German automaker’s concerns about the deal. “Volkswagen has said they are concerned, so we need to finalize internal procedures and have more discussions with them,” Don Walker, co-chief executive officer of Magna International Inc., told reporters. He declined to give details, saying he hadn’t talked with Volkswagen yet. One concern over the deal is that Magna could give Opel preferential treatment in supplying parts. Another is about conflict of interest in that Opel or customers of Magna may get hands on coveted technology. Analysts say some automakers, such as Volkswagen AG, may decide to move away from buying Magna parts. Walker acknowledged he needs to ease concerns from customers, but reiterated that Opel and Magna will remain separate. He said Magna, based in Aurora, Ontario, wasn’t “taking over” Opel and will remain a parts maker. “Most of the customers I have talked to personally want to know how we have a separation to protect technology, but they have told me that they are comfortable with it,” said Walker. US automaker General Motors Corp. said Sept. 10 that it had agreed to cede a 65% stake in the German-based Opel to Magna International Inc., the auto parts supplier, and Russia’s state-owned Sberbank. GM keeps 35% and Opel’s workers get 10%. Under the deal, expected to close by 30 November, the German government also pledged $6.5 billion in credit. Magna, the world’s third largest auto supplier, will send executives to fill three seats on Opel’s 20-member board, but those executives will no longer be with Magna, Walker said. “Opel will be a stand-alone company,” he said, adding that the final deal will likely close in the next few months. GM is Magna’s biggest customer. Detroit-based GM emerged from bankruptcy protection on 10 July and has received $50 billion in US government aid. Source: Home - Livemint.com | 22 Sep 2009 | 12:26 am NCDEX extends trading hours due to sun outageNew Delhi: The National Commodity and Derivatives Exchange Ltd (NCDEX) has extended trading hours from 22 September to 9 October on account of disruption of satellite services due to sun outage, the exchange said. The exchange would be suspending trading in all commodities between 11.25am and 12.05pm. The day’s session for agri commodities, except robusta coffee futures, will not be extended, it said in a circular. However, the evening trading session for bullion, metals, crude oil, furnace oil, robusta cherry AB coffee and polymers will end at the usual time of 11.30pm. “During sun outage, trading will remain suspended. However, members are requested not to log off from their trader workstations,” the exchange added. Source: LatestNews-Home - Livemint.com | 22 Sep 2009 | 12:20 am India bond yields higher on supply concernsMumbai: Indian federal bond yields inched higher on Tuesday after an increase in this week’s bond auction to 50% more than its scheduled size triggered concerns that government borrowing could still be larger than expected. At 11:42am (0612 GMT), the benchmark 10-year bond yield was at 7.13%, above Friday’s close of 7.09%. The market was shut on Monday for a holiday. “Size of the auction this week is higher than expected. Also, some investors seem to be reducing their positions ahead of the second-half calendar,” said Premanand Kamath, treasury head at Corporation Bank. A finance ministry official said last week the government will stick to its full-year borrowing plan of Rs4.51 trillion and the borrowing calendar for October to March would be released on 29 September. If government planned to complete its borrowing needs well ahead of the end of the fiscal year, the market might react negatively on fears additional borrowing may be announced, traders said. Apart from Friday’s Rs120 billion bond auction, state loans worth Rs91.5 billion are to be auction on Tuesday and the central bank will sell Rs60 billion of treasury bills on Wednesday. Dealers said the rise in yields could be capped by expectations the central bank would not starting tightening policy for some time, and on expectations that accounting rules on hold-to-maturity accounts could be changed for banks, which would support demand for debt. Volumes were a moderate Rs31.35 billion ($0.65 billion) on the central bank’s trading platform. The benchmark five-year interest rate swap edged up to 6.64/67% from Friday’s close of 6.58/63. Source: LatestNews-Home - Livemint.com | 22 Sep 2009 | 12:09 am Sensex up 82 points in opening tradeThe 30-share index, Sensex, moved up by 82.40 points, or 0.45 per cent, to 16,823.70, with shares of auto, oil and gas, metal and healthcare sectors leading the rally.Source: Daily News & Analysis: Money News | 22 Sep 2009 | 12:04 am Bhushan Steel not looking at mine buysMumbai: Bhushan Steel Ltd, which recently acquired Australia’s Bowen Energy, is not “seriously” looking at mine buys, even as peers are aggressively trying to secure raw material linkages, a top official said. Most Indian steel makers, whose profitability shrunk on soaring raw material prices in FY09, have been scouting out for mines to lower their cost of production, and consider this as a good time for bargains due to the recent slump in prices. “Presently, we would be focussing on exploring activities at Bowen. We are looking at a lot of things but at the moment we are not serious (on mine buys),” Nittin Johari, chief financial officer, told Reuters over the telephone on Monday. Bhushan, however, plans to spend $6-$7 million a year for exploration activities at Bowen, Johari said. Besides, the company is eyeing a majority stake in Orissa Sponge Iron and Steel for the latter’s large iron ore and coal reserves and has already bought 17-18% in the company. Orrisa Sponge is caught in a three-way takeover battle with Monnet Ispat and two warring factions of the Bhushan family, with interests in steel and power, in the fray. Johari expects it will take another 6-8 months to get clarity on the issue, which awaits regulatory approval. “I think it will take another 6-8 months to really come to know where we stand and where all other people stand,” he said. In 2008-09, Bhushan saw flat growth in net profit to Rs425 million, while net sales rose nearly a fifth to Rs4,960 crore on lower realisations. Bhushan counts Fiat, Honda Motor, Ashok Leyland, Tata Motors, Videocon , Samsung and BPL among its clients. Indian steel makers, including Bhushan Steel, this month raised prices of the alloy by Rs1500-2,000 per tonne citing higher international rates and input cost push. Johari expects prices to consolidate “over the next 2-3 months.” “After that we may see some firmness,” he said. Shares in Bhushan jumped 4 times so far in 2009, while the BSE Metal index rose nearly 178% in the period. The 30-share BSE index rose 73%. Foreign Links Bhushan is working out details with a Japanese firm to build a steel plant in India, confirming foreigners interest to enter the world’s second fastest growing major economy. Bhushan had said in April it was in preliminary talks with Japan’s Sumitomo Metal Industries for building a steel plant in West Bengal. Though talks have still not been decisive, Johari said without elaborating, the two steel makers are still in talks. “We are exploring a possibility and we are looking into the details. It is for our Kolkata facility.” India, where steel demand is seen growing at 10% annually, has seen interest from ArcelorMittal and Posco, but political and land-related roadblocks have stifled projects. Foreign firms “have realised that it is not possible to do business standalone in India. They are not very comfortable doing it alone,” Johari said. Source: Home - Livemint.com | 22 Sep 2009 | 12:01 am Perot India staff may be absorbed in fullChennai, Sept. 21 Dell Inc could become a major information technology service provider out of India with the planned acquisition of the US-based Perot Systems that has large offshore software development centres in the country.Source: Business Line - Home Page | 22 Sep 2009 | 12:00 am Infrastructure firms keep away from ECBsBangalore, Sept. 21 Corporates implementing infrastructure projects have begun shunning foreign currencySource: Business Line - Home Page | 22 Sep 2009 | 12:00 am Day Trading GuideSource: Business Line - Home Page | 22 Sep 2009 | 12:00 am Chidambaram for more pvt role in Defence suppliesChennai, Sept. 21 The Home Minister, Mr P. Chidambaram, said that he was very concerned that the private sector is not able to supply to the Defence in a largeSource: Business Line - Home Page | 22 Sep 2009 | 12:00 am Incentives to chairmen help improve performance of public sector banksChennai, Sept. 21 Has performance-linked incentives paid to chairmen of public sector banks (PSBs) played an important role in the better performance of these outfits?Source: Business Line - Home Page | 22 Sep 2009 | 12:00 am Gold futures steady; dollar eyedMumbai: India gold futures were almost steady with a positive bias on Tuesday amid support from bargain-hunting after they shed about 1% in the previous four sessions, analysts said. Analysts said investors would continue to eye movements in the dollar, which gave up early gains ahead of the Fed’s monetary policy and G-20 meet. The most-traded October contract was steady at Rs15,776 per 10 grams at 11:39am, after hitting a high of Rs15,840 in early deals. The contract was 1.5% below a seven-month high of Rs16,009 struck last week after attempts to breach the record of 16,040 rupees was foiled by profit-taking. “It is consolidating with a positive tone before a move up,” said Harish Galipelli, head of research with JRG Wealth Management in Kochi, adding gold may be in the range of Rs15,700-15,860. “Investors are finding gold attractive after its recent fall,” said Galipelli. Gold may trade in the range of Rs15,663-15,820, said Krishna Reddy, an analyst with Way 2 Wealth Securities. Source: LatestNews-Home - Livemint.com | 22 Sep 2009 | 12:00 am Inox Leisure (Rs 57.2): BuyWe recommend a buy in the stock of Inox Leisure from a short-term perspective. It is evident from the charts of the stock that following a medium-term correction between early June and mid July from Rs 71 to Rs 37, it found key support around RsSource: Business Line - Home Page | 22 Sep 2009 | 12:00 am VW, Suzuki deal likely to rev up India plansMumbai, Sept.21 Volkswagen’s move to pick up a stake in Suzuki Motor Corporation could have some “interesting implications” for India, say auto sectorSource: Business Line - Home Page | 22 Sep 2009 | 12:00 am Rising gold, drooping $ push up currency futures turnoverMumbai, Sept. 21 Turnover in currency futures on MCX Stock Exchange (MCX-SX) and the NSE rose sharply last week aided by the substantial jump in gold prices.Source: Business Line - Home Page | 22 Sep 2009 | 12:00 am Can we reverse the ‘stimulus’?Is it time to exit from the fiscal stimulus provided by the Government to stall and reverse the downturn triggered by the global crisis? That is the question increasingly occupying policy debate, with support for those emphasising the need toSource: Business Line - Home Page | 22 Sep 2009 | 12:00 am NTPC exploring tie-ups with oil PSUs for NELP-VIII bidNew Delhi, Sept. 21 With increased availability of domestic gas, NTPC Ltd wants to step up building new power stations with gas as feedstock.Source: Business Line - Home Page | 22 Sep 2009 | 12:00 am US to push for new economic world order at G-20Washington: The United States will urge world leaders this week to launch a new push in November to rebalance the world economy, but there are doubts national governments will bow to external advice. A document outlining the US position ahead of the 24-25 September Group of 20 summit in Pittsburgh said exporters, which include China, Germany and Japan, should consume more, while debtors like the United States ought to boost savings. “The world will face anemic growth if adjustments in one part of the global economy are not matched by offsetting adjustments in other parts,” said the document, which was obtained by Reuters on Monday. The framework drafted by US policy makers foresaw analysis of G-20 members’ economic policies by the International Monetary Fund to figure out if they were consistent with better balanced growth. “We call on our finance ministers to launch the new framework by November,” the document said, signalling a determined effort to maintain momentum for change created by last year’s global financial crisis. The United States envisages the IMF playing a central role in a process of “mutual assessment” by making policy recommendations to the G-20 every six months. Finance ministers and central bankers from the G-20 countries are due to meet 7-8 November in Scotland. European Central Bank president Jean-Claude Trichet said persuading Europe, the United States and China to accept IMF advice on economic policy may be difficult. In the past, many countries have ignored suggestions the IMF dished out in regular reviews. Trichet told French newspaper Le Monde the G-20 had made progress on reforms to make the financial system more stable after the crisis. “The most difficult question is still open: Europe, America, China, are they ready to modify their macroeconomic policies in the future—by following the advice of the IMF and under pressure from their peers, for the common good, and world economic stability?” he said in the piece on Monday. G-7 sources told Reuters there was a renewed determination to cooperate because the crisis had driven home the interconnected nature of the global system. That said, governments would not allow themselves to be told what to do. “We can’t get to a situation where any country is giving up its own decision-making,” said one source, who spoke on the condition of anonymity. Germany, a major exporter to the United States, was singled out on Sunday by US President Barack Obama as a country that, like China, exports a lot but does not buy much back. But a top European Union official said that the euro zone, where 16 countries share a common currency, had to act as a collective. “It is difficult to think about one country without taking into consideration what is the impact in the euro area,” European Commission president Jose Manuel Barroso told reporters in New York. Taxpayer money to the tune of $5 trillion has been pumped into the world economy to keep it from seizing up since the beginning of the crisis last September. G-20 leaders will maintain that pace of stimulus while acknowledging that at some point it will have to be wound down, the document said. But, mindful of how a disorderly rush to raise interest rates could roil world markets again, they will also ask finance ministers to thrash out a “transparent and credible” exit strategy. There were no details of how to achieve this in practice, but the document echoed the caution of G20 finance ministers at their meeting in London earlier this month acknowledging the pace of change would vary by country. Simon Johnson, a former chief economist at the IMF, warned there was a risk the Pittsburgh summit would be an empty public relations exercise. “The point of the meetings is to try to reassure themselves and everyone else that they’re broadly on track and have a round of applause and some back patting,” he said. But John Bruton, the EU ambassador to Washington, said it was important not to ignore the summit’s symbolic power. “I think we’re seeing the beginning of a conversation between world leaders,” he told Reuters in an interview. Source: Home - Livemint.com | 21 Sep 2009 | 11:51 pm Pentagon delays Afghan troop request: reportWashington /Kabul: The Pentagon has told its top commander in Afghanistan to delay submitting his request for additional troops until the Obama administration completes a review of its strategy, The Wall Street Journal reported. Army general Stanley McChrystal, the top commander of US and Nato forces in Afghanistan, warned in a confidential assessment leaked to the media on Monday that without the additional troops the mission “will likely result in failure”. A senior Pentagon official said the administration had asked for the reprieve so it can complete a review of the US-led war effort, the newspaper reported. “We have to make sure we have the right strategy” before looking at additional troop requests .... “Things have changed on the ground fairly considerably,” the official told the newspaper. There are already more than 100,000 foreign soldiers in Afghanistan, battling an insurgency which has taken control of many parts of the south and east of the country in what has so far been the deadliest year for foreign troops since 2001. The Times of London said on Tuesday that Britain planned to send an extra 1,000 troops to Afghanistan in response to McChrystal’s call for reinforcements from Nato-contributors. The leaking of McChrystal’s military report piles more pressure on US president Barack Obama, already squeezed by ebbing public support and scepticism in his own party over troop levels. Obama has said in interviews over the past week that he will consider deploying more troops after a proper US strategy for Afghanistan has been determined. Asked about the Wall Street Journal report, Pentagon spokesman Geoff Morrell said the hope was that the matter would be resolved soon. “As Secretary (Robert) Gates said last week, he and others are still working through the process by which General McChrystal will submit his resource request for review,” Morrell said. The request, which some officials expected would include roughly 30,000 new combat troops and trainers, is expected to be submitted to Washington in the coming weeks. “It is important to remember that regardless of when General McChrystal sends forth his request, the president first wants to fully discuss his assessment of the situation in Afghanistan and the strategy we are pursuing there before considering any additional resources for that effort,” Morrell said. More British troops European allies under Nato command whose governments support the war in Afghanistan, often over public opposition, have begun openly wavering. Both Italy and Germany have come under mounting pressure to review their involvement. The British ministry of defence is planning to send an extra 1,000 troops to Afghanistan, according to the London-based Times newspaper, in response to McChrystal’s grim assessment, boosting British soldier numbers to 10,000. Prime Minister Gordon Brown had yet to make a formal proposal for the additional troops, but it was part of a “choreographed plan” between Britain’s defence ministry and the Pentagon, the report said. Britain has faced a dramatic spike in military casualties this year, most in the restive southern province of Helmand, and the reported troop increase is likely to be unpopular with the public. Source: LatestNews-Home - Livemint.com | 21 Sep 2009 | 11:48 pm Sensex starts slightly higherThe benchmark index of the Indian stock markets Tuesday started trade slightly higher than its previous closing figure, and was ruling 0.23 percent above Friday's close, about five minutes into trade.Source: IndiaeNews.com: Business News | 21 Sep 2009 | 11:30 pm Yahoo seeking up to $500 mln for small business unitSan Francisco / New York: Yahoo Inc hopes to get up to $500 million for a unit that hosts websites for small companies, after putting it on the market for several months, two people familiar with the matter said. Yahoo has received interest from corporate buyers and private equity firms, one of the sources familiar with the situation said. It is unclear if any party has made an offer. But some potential corporate buyers who have looked at the asset in recent months have decided not to bid because they think the price is too high, a second source said. “Yahoo’s price expectations are higher than what buyers were willing to pay,” this person said, adding that Yahoo was seeking $350 million to $500 million. “People would like to own this asset, but not at the asking price.” As part of its strategy to shed assets that are no longer core to its brand, Yahoo put the unit called Yahoo Small Business up for sale about six months ago, along with HotJobs, its online job classified site, the sources said. Last week, Yahoo sold its stake in China’s top e-commerce company Alibaba.com for $150 million. The sources spoke on condition of anonymity because the sale process has not been made public. A Yahoo spokeswoman said the company does not comment on rumors or speculation. The small business division provides domains, email, Web hosting and other merchant services to customers. Sunnyvale, California-based Yahoo, which posted $7.2 billion in revenue last year, does not break out the unit’s performance. Strategic buyer preferred Yahoo prefers to sell to another company rather than a buyout shop, believing that a strategic buyer would be more likely to pay a higher multiple for the synergies that the unit has with its own business, the sources said. The sources suggested that private equity firm General Atlantic LLC may be a potential buyer for the Yahoo unit because it owns Network Solutions, a company that provides similar services to small enterprises. A General Atlantic spokeswoman declined to comment. Tricia Salinero, the managing director of Foster City, California-based M&A advisory firm Newforth Partners, said there was previously a sense that Yahoo would hold on to the small business unit if the company could not get its desired price. The resurgence of chatter about the deal suggests that Yahoo may be more confident it can get the price it wants or that it may now be prepared to sell at a lower price. “If they decided it was more strategic to divest the unit, they could lower their expectations,” said Salinero. Under Chief Executive Carol Bartz, who took the reins in January, Yahoo is in the midst of a turnaround strategy focused on rebuilding its brand into a more consumer-centric, advertising-focused one. That has meant a house-cleaning, with Yahoo evaluating all assets that are not central to its new strategy. Earlier this year, Yahoo redesigned its home page, and Yahoo chief technology officer Ari Balogh told Reuters in May the company plans to add more social networking features to its properties through a combination of acquisitions and home-grown product development. Yahoo is also expected to unveil a new marketing campaign in New York on Tuesday. These efforts come more than a year after Yahoo rebuffed Microsoft Corp’s $47.5 billion buyout offer, only to see its share price plummet as it struggled with the severe advertising market downturn. Yahoo and Microsoft signed a search advertising partnership this year. Zimbra reported up for sale Separately, Kara Swisher of The Wall Street Journal-affiliated blog All Things Digital reported on Monday that Yahoo has also put Zimbra up for sale. Yahoo bought Zimbra, a provider of online email and calendar software for businesses, in 2007 for about $350 million. A Yahoo spokeswoman declined to address the report, but said in an emailed statement that Zimbra is a critical part of Yahoo’s communication tools. Shares of Yahoo closed Monday’s session down 2% at $17.04 on the Nasdaq. Source: World Business - Livemint.com | 21 Sep 2009 | 10:33 pm Bharti offers last-mile sweeteners for MTN - paperMUMBAI (Reuters) - Bharti Airtel has offered to retain the top management at MTN for at least three years and given the option of an all-cash offer to minority MTN shareholders to sew up the planned tie-up between the two firms, the Economic Times reported on Tuesday.Source: Reuters: Money News | 21 Sep 2009 | 10:26 pm GE CEO to test new management model in IndiaBOSTON (Reuters) - General Electric Co plans to test a new management model in India that the largest U.S. conglomerate believes will help it flourish through a long period of sluggish post-recession growth in developed markets.Source: Reuters: Money News | 21 Sep 2009 | 10:05 pm The world goes ‘Eureka’ at IIT-BIt may not be the blinding revelation that is said to have hit Greek scientist Archimedes, but each year more of the world is saying, “Eureka!”Source: Hindustan Times News Feeds 'Business' | 21 Sep 2009 | 5:37 pm BPO deals from Japan are seeing good tractionBusiness process outsourcing firms in the country are seeing increasing demand for their services from large automotive and engineering firms in Japan.Source: Daily News & Analysis: Money News | 21 Sep 2009 | 4:27 pm US economic collapse 'a given'A year after the financial crisis, US stock markets have recovered in the belief that the American economy is on the mend and the worst of the crisis is over.Source: Daily News & Analysis: Money News | 21 Sep 2009 | 4:05 pm Import substitution should be the mantra: ChidambaramIt is an "old mindset" that secrecy would be compromised if the Indian private sector is involved in the supply of defence equipment, which was hampering import substitutionSource: Hindustan Times News Feeds 'Business' | 21 Sep 2009 | 3:58 pm 'Enjoy the Asian asset bubble while it lasts'Monetary policy in the West will remain easy in response to anaemic economic growth, but the prime beneficiary of this will be investors in Asia.Source: Daily News & Analysis: Money News | 21 Sep 2009 | 3:49 pm Maytas-Nagarjuna to lose Machilipatnam port dealThe Maytas Infrastructure-Nagarjuna Construction Company Ltd consortium is likely to lose the Machilipatnam port project.Source: Daily News & Analysis: Money News | 21 Sep 2009 | 3:29 pm AAI plans to up passenger feeThe Airports Authority of India is planning to move a proposal seeking a substantial hike in passenger service fee.Source: Daily News & Analysis: Money News | 21 Sep 2009 | 3:23 pm Dell buys Perot Systems for 3.9 billion dollarsUS computer giant Dell said on Monday it is buying computer services firm Perot Systems for $3.9 billion in a move seen as a bid to counter rivals IBM and Hewlett-Packard and expand beyond its core PC business.Source: Hindustan Times News Feeds 'Business' | 21 Sep 2009 | 3:00 pm ComScore, Omniture join hands to measure digital audiencesTwo of the largest companies involved in tracking and analysing web traffic are joining forces to measure digital audiences more comprehensively. The partnership involves comScore Inc and Omniture Inc, which announced that it agreed to a $1.8 billion takeover by Adobe Systems Inc.Source: Hindustan Times News Feeds 'Business' | 21 Sep 2009 | 2:52 pm Brokerages back to their hiring waysResearch analysts and marketing & sales staff are in demandSource: Daily News & Analysis: Money News | 21 Sep 2009 | 2:49 pm Health portals grow, but profits still awayWith the concept of wellness and health catching up, healthcare websites are not only mushrooming but constantly innovating to beat the competition.Source: Hindustan Times News Feeds 'Business' | 21 Sep 2009 | 2:48 pm Ceat to raise cash, plans expansionCeat Tyres, the tyres and tubes making company of the Rs 7,600-crore RPG Enterprises, will raise cash through various routes to meet funding requirements of Rs 590 crore.Source: Hindustan Times News Feeds 'Business' | 21 Sep 2009 | 2:43 pm Need to build FX reserves in good times: RBIReserve Bank of India Deputy governor Usha Thorat on Monday said India needs to build up foreign exchange reserves when the going is good.Source: Daily News & Analysis: Money News | 21 Sep 2009 | 2:29 pm DC Design, Carnation tie up for mass segment - Business Standard
Source: Business - Google News | 21 Sep 2009 | 1:23 pm Dell to buy Perot in $3.9 billion dealNew York: Dell Inc. on Monday agreed to buy information technology service provider Perot Systems Corp., long seen as a potential Dell target, for $3.9 billion (Rs18,798 crore) as the world’s No. 2 computer seller looks to expand on its core personal computer business.  Stock gains: Ross Perot (centre) throws baseball caps with the Perot logo from the podium of the New York Stock Exchange on 2 February 1999, the day his company, Perot Systems Corp., was listed on NYSE. Henny Ray Abrams/AFP Dell was widely expected to acquire an information technology (IT) services company following HP’s purchase of Electronic Data Systems in 2008. In recent years, companies that supply computers and other hardware have been combining those products with services—such as providing customer support or managing data centres and computer networks—which offer new growth areas and recurring revenue streams. Perot Systems was founded in 1988 by H. Ross Perot, who earlier created Electronic Data Systems and ran unsuccessfully for president of the US in 1992 and 1996. Perot Systems specializes in IT services and consulting, with nearly half of its revenue coming from the healthcare industry and a quarter from the government sector. Dell will begin a tender offer to buy all the Class A shares of Perot for $30 a share, a hefty 68% premium to Perot’s closing price Friday of $17.91. Perot’s Class A shares haven’t been above $30 for more than a decade. The deal is expected to close by the end of January but isn’t seen adding to Dell’s earnings until the fiscal year that runs through January 2012. In the first year, the deal is expected to reduce earnings modestly, company officials said in a conference call. In two years, Dell expects it will be able to cut 6-8% of $4 billion in combined costs between the two companies. Dell shares fell 3.2% to $16.15, and Perot Systems added 65% to $29.63. Given the deal’s high premium and Dell’s cash position, it’s unlikely another bidder would approach Perot. Dell already provides some IT services, but the vast majority of its revenue, around 80%, comes from corporate computer purchases. Perot will allow Dell to expand into more sophisticated services, such as building and managing large, complex computer networks. HP, the world’s largest computer maker, purchased EDS last year for $13.9 billion at a premium of 33%, far less than the premium agreed to in Dell’s planned purchase of Perot.  Services focus: Dell Inc. chief executive officer Michael Dell. Harikrishna Katragadda/Mint The higher price, she said, could also reflect that there were few other services companies for Dell to purchase. “There aren’t that many candidates out there,” she said. Dell’s move follows months of speculation regarding whom Dell, which had $11.7 billion in cash as of 31 July, would buy in order to fill gaps or strengthen weak spots in its portfolio. The talk increased this summer after Dell hired David Johnson, the former chief of mergers-and-acquisitions strategy at IBM, which tried unsuccessfully to block the hiring in courts. Dell added more financial firepower by selling $1 billion in bonds. Dell is expected to expand Perot’s reach across the globe. Perot had been seeking to expand internationally to reduce its exposure to the U.S., and the two companies already work together on some projects. As the integration of Perot progresses, Dell expects to add smaller services acquisitions to bolster Perot’s geographic reach. Perot will become Dell’s services unit and will be led by its current chief executive, Peter Altabef. Dell’s board will consider Perot chairman Ross Perot Jr for a seat. Dell said retaining Perot Systems employees is critical to the acquisition’s success, adding that it has already signed long-term retention agreements with several senior executives. Perot last month said second quarter profit rose slightly as improved margins helped offset a drop in sales. But it gave a third quarter revenue forecast below analysts’ expectations. For this year, analysts on average project Perot’s earnings to rise 2% to $117.3 million and revenue to fall 9% to $2.53 billion, according to Thomson Reuters. Dell’s profit dropped 23% for its most recent quarter as it continued to suffer from weak spending in technology, particularly by corporation. For the fiscal year through January, analysts see Dell’s earnings falling 22% to $2.08 billion and revenue dropping 15% to $51.63 billion. wsj@livemint.com George Stahl and Joan E. Solsman contributed to this story. Source: Tech News - Livemint.com | 21 Sep 2009 | 12:48 pm One step forward: Bengal to buy land for private projects againStung by the public relations crisis caused by the scandal over private sector acquisition of land for the Vedic Village spa and resort on Kolkatas outskirts, the West Bengal government has decided to repudiate a two-month policy and start acquiring land for private projects again.Source: Business Standard | Front Page Headlines | 21 Sep 2009 | 12:43 pm Pvt placement debuts in public sector banksPublic sector player Punjab & Sind Bank (PSB) is drawing up plans to privately place equity shares with institutional investors ahead of an initial public offer next year.Source: Business Standard | Front Page Headlines | 21 Sep 2009 | 12:42 pm Super-luxury is back in the realty lexiconThe sales brochure offers you the opportunity to own Mumbais first managed private residences with a lifestyle elevated up to the sky. At Rs 28,000 per square foot plus other charges, Indiabulls Sky is also promising a 65-storey marvel with opulent apartments, timeless luxury and impeccable butler service.Source: Business Standard | Front Page Headlines | 21 Sep 2009 | 12:41 pm Import substitution should be the mantra: ChidambaramIt is an 'old mindset' that secrecy would be compromised if the Indian private sector is involved in the supply of defence equipment, which was hampering import substitution, union Home Minister P. Chidambaram said here Monday.Source: IndiaeNews.com: Business News | 21 Sep 2009 | 10:01 am Raids on hoarders in Punjab bring sugar prices downWholesale prices of sugar fell sharply in Punjab after food and civil supplies officials last week raided godowns in Ludhiana and seized hoarded sugar worth Rs.35 crore, traders said.Source: IndiaeNews.com: Business News | 21 Sep 2009 | 8:31 am Indian fan industry still reeling under slowdownThe Rs.1,600-crore Indian electric fan industry, hit badly by the economic slowdown last year, does not see any respite in the coming six to nine months, an industry player said here Monday.Source: IndiaeNews.com: Business News | 21 Sep 2009 | 7:31 am Paradip Port launches clean-up drive to contain oil spillThe Paradip Port in Orissa Monday launched a drive along its coast to contain possible environmental damage from a Mongolian ship that sank off the coast Sep 9.Source: IndiaeNews.com: Business News | 21 Sep 2009 | 7:31 am
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