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Five percent share in IMF is a compromise figure: PM!The decision of the G-20 members to shift five percent share to countries like India that are under-represented at the International Monetary Fund in terms of voting rights is a compromise figure, Manmohan Singh has said.Source: Zee News : Business | 26 Sep 2009 | 6:27 am Citi sues Morgan Stanley over CDS, claims $245 mn!Citigroup Inc sued Morgan Stanley on Friday for breach of contract, saying the Wall Street firm owed it USD 245.4 million for protection it bought on a loan.Source: Zee News : Business | 26 Sep 2009 | 6:27 am G20 upbeat on eco, pledges financial reforms!The G20 and developing nations promised to give rising powers more say in global economy on Friday.Source: Zee News : Business | 26 Sep 2009 | 6:27 am PM backs Bharti`s efforts to acquire stakes in MTN!Prime Minister Manmohan Singh on Friday strongly backed Bharti group`s efforts for acquiring stakes in South African telecom gaint MTN.Source: Zee News : Business | 26 Sep 2009 | 6:27 am Limited scope for accelerating stimulus package: PM!Prime Minister Manmohan Singh on Friday said the scope and options for acceleration of stimulus package for the recovery of the economic crisis were "limited" but in the same breath not appeared to rule out any such possibility.Source: Zee News : Business | 26 Sep 2009 | 6:27 am AI flights cancelled as pilots start strike!Two Air India flights were Saturday cancelled due to an agitation called by a section of its pilots.Source: Zee News : Business | 26 Sep 2009 | 6:27 am Section of AI pilots on strike, flight operations remain unaffected - Times of India
Source: Business - Google News | 26 Sep 2009 | 4:10 am Twin car bomb attacksPeshawar: Two car-bomb blasts killed at least 16 people in northwestern Pakistan on Saturday. A suicide bomber sitting in an explosives-laden car threw a hand-grenade towards a crowd of people in the main northwestern city of Peshawar before detonating about 100 kg of explosives in the vehicle. “Ten people have been killed and 71 wounded, five of them critically,” Sahibzada Anis, the top government administrator of the city told Reuters. The attack took place in the carpark of a commercial building close to a military hospital. Television footage showed car parts and debris from nearby buildings scattered over the road. An elderly man wearing a blood-stained shirt was seen helping a wounded young woman walking away from the scene of the blast. “It was terrible. My children are very frightened. All the windows of my house are broken. It was very frightening,” Beenish Asad, a housewife living near the site of the blast told Reuters by telephone. Police said they detained two suspects at the scene. Police building hit The Peshawar attack came hours after a Taliban suicide bomber crashed his explosives-laden truck into a police station in the town of Bannu in North West Frontier Province (NWFP), killing six people. Thirty people, most of them policemen, were wounded. Bannu is gateway to North Waziristan, a volatile tribal region on the Afghan border and a major sanctuary for al Qaeda and Taliban militants fighting both in Pakistan and Afghanistan. Qari Hussain, a Taliban commander, called Reuters by telephone to take responsibility for the Bannu attack. “The government was taking undue advantage of our silence. We will carry out more such attacks and these will be much more powerful,” Hussain said. Militant attacks have tapered off after the death of Pakistani Taliban chief and al Qaeda ally Baitullah Mehsud in a missile strike by a pilotless US drone in August. Pakistani forces have made significant gains against the militants after they launched an offensive in northwestern Swat valley in late April, which helped allay international fears about the stability of the nuclear-armed U.S. ally after militants made advances towards the capital, Islamabad. But government and security officials say militants loyal to al Qaeda still pose a serious threat. Mian Iftikhar Hussain, NWFP information minister, said the attacks were aimed at avenging the government offensive against the militants in Swat. “We are not scared of these people and we have to extend our operations wherever these terrorists are operating,” he told reporters. President Asif Ali Zardari, who is in New York for the UN General Assembly session, condemned the twin attacks and said “terrorism and extremism would be rooted out from the country with full force”. Source: LatestNews-Home - Livemint.com | 26 Sep 2009 | 3:12 am Centre seeks additional data on six hydel projects in SikkimGangtok: In a glimmer of hope for six hydel projects in North Sikkim with a projected generation capacity of 1047 MW, the union ministry of environment and forests (MOEF) has sought complete technical data for consideration of its earlier decision to put them on hold. Complete technical data from a competent resource should be furnished for further consideration of its decision to stall six proposed hydel projects in the Chungthang Valley in North Sikkim, MOEF additional secretary J M Mauskar has demanded in a letter to the state government, official sources said. The state government had written to the MOEF last month urging it to review its decision to withhold the six hydel projects. It had stated that the developers would take utmost care of the concerns raised by the Centre for the Inter-disciplinary Studies of Mountain and Hill Environment (CISME) report on the carrying capacity of the Teesta river. The state government urged the MOEF to grant permission to the developers to go ahead with investigation into the detailed project-specific information for critical examination by the state and the Centre to assess environmental impact of the hydel projects. The state government had said that the authorities had the option to take a decision on the hydel projects at any stage after investigation. Only those projects found to be viable from geo-technical and hydrological angles and were environmentally sustainable should be allowed to be developed, the state government had said in its plea to the MOEF. The state government had assured that it would provide concrete measures and pragmatic strategy to preserve the environmental sensitivity of Chungthang Valley and put in place adequate environmental protection measures. Making a case for the viability of the six hydel projects, the state government also questioned the contention of the CISME report about the availability of ‘little geological information from the area and the region being prone to landslides´. It said the report did not substantiate the arguments. The Chungthang valley represents a stable geological domain, the state government claimed while seeking to nullify the contention of the CISME report that it was geologically sensitive located in a young Himalayan mountain range. The MOEF had directed the state government two months ago to stall construction at the six proposed hydel projects (Teesta Stage I - 280 MW), Teesta Stage II (330 MW), Lachen (280 MW), Lachung (99 MW), BOP (99 MW) and Bimkyong (99 MW) citing the CISME report which had questioned the viability of these projects. Source: LatestNews-Home - Livemint.com | 26 Sep 2009 | 3:08 am Tata joint venture, Godrej get land for projects in APAndhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC), the nodal agency for investment in the State, on Friday issued allotment letters to several industrial houses, including Godrej and the Tata groupIsrael Aerospace Industries joint venture.Source: Moneycontrol Top Headlines | 26 Sep 2009 | 2:43 am UN resolution on NPT not directed against India : USPittsburgh/New York: The US on Saturday assured India that the UN security council resolution on the Nuclear Non-Proliferation treaty (NPT) issue is not directed against it and will not affect the Indo-US nuclear deal. “We have been assured (by the US) that this is not a resolution directed against India and that the US commitment to carry out its obligations under the civil nuclear agreement, which we have signed with the United States, remains undiluted,” Singh, who interacted twice with President Barack Obama during the G-20 Summit, told reporters here. “That (commitment on the nuclear deal) we have been assured officially by the US government,” Singh said wrapping up his two-day visit. He was replying to a question about the UNSC resolution asking all non-NPT states, including India, to sign the NPT. “Last night I met him (Obama) and today I was seated to his right during lunch. I discussed some important issues with him,” Singh said on being asked whether he had any bilateral meetings with the US president. Singh said because of paucity of time, Obama did not have bilateral meetings with any leaders. In New York, after a meeting between External Affairs Minister S M Krishna and Secretary of State Hillary Clinton, a senior US official said India’s position on NPT and the Comprehensive Test Ban Treaty (CTBT) will not impact the nuclear deal. Source: LatestNews-Home - Livemint.com | 26 Sep 2009 | 2:41 am Govt has limited scope for accelerating stimulus package: PMPittsburgh: Prime minister Manmohan Singh on Saturday said the scope and options for acceleration of stimulus package for the recovery of the economic crisis were “limited” but in the same breath not appeared to rule out any such possibility. “Our response (of stimulus packages) was to a specific domestic situation. It is true that we have limited scope for accelerating stimulus package and our options are limited because of factors like substantial fiscal deficit and Reserve Bank’s monetary policies. As of now inflation is not a problem,” he told a press conference at the end of his two-day visit here. He was replying to a question whether government would consider withdrawing the stimulus package in view of signs of recovery or whether it would inject a fresh dose. “I would not like to announce package or policy from the foreign soil” he said in reply to a specific question whether steps for stimulating the economy would be taken up. On stock markets picking up in the last few days, the prime minister said it was reflective of the economic recovery in the country. The economic fundamentals were basically strong, he added. At the Summit, Singh strongly pitched for continuance of the global stimulus package. The Summit declaration also favoured continuance of the policy and going slow on exit strategy. In his introductory statement at the press conference, the Prime Minister said the Summit was a productive meeting and its purpose was to review what has happened and chart the way forward. This Summit, he said, was not meant to be a trillion dollar summit but there was a comprehensive discussion among the leaders on a wide range of issues. Singh said some of the important issues discussed were that there will be no premature withdrawal of the global stimulus package and the emergency financing for the fund has been successfully completed. “We now have to address the issue of the fund quota increase by early 2011. We have agreed to shift 5 per cent share to countries that are under-represented,” he said. Singh also said the Summit has agreed to help the World Bank and other regional development banks to find necessary resources on a review of their capital needs in the first half of 2010. He said the Summit has agreed on a new framework for discussing global macro balances and the contributions individual countries can make through their own policies with a new process of peer review or discussion in the G-20. The leaders also discussed the important issue of climate change and the G-20 has called for a successful outcome in the UN’s Framework Convention on Climate Change in Copenhagen. The Prime Minister said the Summit also agreed that the countries should work for an early resolution of Doha round to counter protectionism. The success of the Delhi ministerial meeting in reviewing the process of negotiations was appreciated, he said. Singh said the leaders agreed that the G-20 will henceforth be the premier forum for international economic issues. This is an important development broadening the global governance structure, the Prime Minister said. Answering a question, the Prime Minister said there was no economic crisis in India and it was true that because of the global economic meltdown Indian exports were affected. “But still the economy clocked a growth rate of 6-6.5%. As such there is no crisis in India,” he said. On the G-20 decision to shift 5% voting rights to emerging economies, he said that could result in developing and emerging economies getting over 50 per cent of those rights or near about it. The Bric (Brazil, Russia, India and China) countries requested for seven per cent voting rights but were given 5%. “The demand was seven per cent and five per cent was agreed. Obviously it was a compromise,” he said. About the peer review in the G-20, he said this would help in bringing up policies of major developed and developing countries for review in the G-20. “This will give an opportunity to pick up holes in their policies. This will be an advantage,” he said. This reflects the governance reforms that India has been seeking in international financial institutions, he said. To a question on whether the US was not keen on the successful completion of the WTO round, Singh said Obama certainly has stated that US was as much interested in its success as others. “I have no reason to doubt his sincerity,” he said. To a similar question on protectionism, Singh said obviously the G-20 countries were worried about protectionism raising its head in some developed countries and there was no doubt about it. Asked whether US was included in this as it has taken some steps against China on tyre imports, Singh said the US is included. On re-balancing economy as mentioned in the G-20 declaration, he said as of now the G-20 is “an essay in persuasion. Whether this essay will succeed only time will tell.” The prime minister acknowledged that in a highly interdependent world, India has a stake in the stability and growth of the world economy. “If world economy collapses, there is obviously some effect on our country. Already the rate of our growth of our economy particularly our exports have suffered,” he said, adding that this has led to decline in exports of important labour intensive products like gems and jewellery, leather goods and textiles. “So in an increasingly interdependent world, I think, no country by itself can ensure that all its goals of economic life can be achieved working to the exclusion of other participants in an increasingly interdependent world,” Singh said. Source: Home - Livemint.com | 26 Sep 2009 | 2:37 am G-20 leaders pledge quick action on Doha dealPittsburgh: World leaders on Friday promised quick action to conclude long-running world trade talks and told their top trade officials to meet by early next year to begin the final push for a deal. “We have agreed to work for an early conclusion of the Doha round of trade negotiation,” Prime Minister Manmohan Singh told reporters at the end of the Group of 20 summit. But the pledge, which went only slightly further than a previous goal of reaching a deal in 2010, raised questions whether countries were ready to make the politically hard decisions needed to finish the talks. The Doha round is already the longest set of multilateral trade talks in history. It was launched in late 2001 with the goal of helping poor countries prosper through trade and has suffered many missed deadlines and setbacks. There are also questions about how hard US President Barack Obama, already facing tough fights in Congress on health care reform and climate change, is willing to push for a deal that many members of his own Democratic party could oppose. But Obama told leaders that “the United States is as much interested in ensuring the Doha round reaches a satisfactory balanced conclusion as any other country and I have no reason to doubt his sincerity,” Singh said. Leaders of the G-20, which groups major industrialized and developing countries, were in Pittsburgh for talks aimed at putting the world on a path to more sustainable growth following the worst economic downturn in decades. “Today the leaders have clearly spoken about what they expect on the Doha Round, a conclusion in 2010. It is now up to their negotiators to walk the talk, starting Monday in Geneva,” World Trade Organization (WTO) Director-General Pascal Lamy said. Developing countries say deal on the table A group of around 100 developing countries - including G-20 members Brazil, India, China, Indonesia, Mexico, Argentina, South Africa, South Korea and Turkey - issued a separate statement urging a deal based on a package of proposed tariff and farm subsidy cuts already on the table. “The vast majority of developed and developing countries support. The only way to conclude negotiations in a reasonable timeframe is to finalize the existing package, through a transparent, inclusive and multilateral process,” they said. Washington has said it needs to do one-on-one talks with big emerging countries like Brazil, India and China to get more clarity about what it would gain from a deal. After nearly eight years of negotiation, WTO members still have not reached agreement on core formulas, known in trade jargon as “modalities,” for cutting agricultural and industrial tariffs and reducing trade-distorting farm subsidies. “In order to conclude the negotiations in 2010, closing those gaps should proceed as quickly as possible,” the G20 leaders said in a joing statement . “We ask our ministers to take stock of the situation no later than early 2010.” There was no decision yet on where that stock-taking session would be held, Lamy said. US wants more exports from deal Reaching a deal on agriculture and manufacturing modalities would put WTO members most of the way to a final agreement. But US farmers and manufacturers are unhappy with proposals now on the table and services trade negotiations have barely begun. Estimates of the value of a deal vary, with the Peterson Institute for International Economics recently saying it could boost world GDP by $300-700 billion a year by opening up new trade in agriculture, manufacturing and services. The Obama administration says it needs big emerging countries like China, India and Brazil to open up more to create enough support in Congress to win approval of a deal. Developing countries, who say they are supposed to be the main beneficiaries, say this puts too big a burden on them. Countries this week steered clear of any decisions on the substance of the negotiations and instead bickered over what was the best path for getting to a final deal. The language reflects a compromise between the United States, which was wary of setting a target to reach a deal on modalities this year, and other countries led by the European Union, Brazil and Australia pushing for swift progress. The G-20 leaders also said it was “imperative we stand together to fight against protectionism,” repeating a pledge they made in two previous meetings and that critics say has been too often ignored in the past year. President Barack Obama’s decision this month to slap a 35% tariff on tire imports from China is one of the most recent examples singled out by such critics. US officials defend the action as legal under a “safeguard” provision that Beijing accepted as a term of its entry into the WTO in 2001. Source: LatestNews-Home - Livemint.com | 26 Sep 2009 | 2:22 am PM backs Bharti’s efforts to acquire stakes in MTNPittsburgh: Prime minister Manmohan Singh on Saturday strongly backed Bharti group’s efforts for acquiring stakes in South African telecom gaint MTN when he took up the issue with president Jacob Zuma and hoped that the deal will go through without any “discrimination”. “As far as MTN issue is concerned, I mentioned it to (President) Zuma. I sincerely hope that this deal would go through and there will be no discrimination against it,” he said in reply to a question at a press conference here. Singh said officials of the two countries would discuss the issue. Bharti and MTN are looking at an $23 billion deal to create the world’s third largest mobile firm with over 200 million subscribers. According to the initial agreement, MTN and its shareholders would acquire 36% stake in Bharti and Bharti would acquire 49% stake in MTN. The process would see a $13 billion transaction in cash and $10 billion in shares. According to the initial agreement, MTN and its shareholders would acquire 36% stake in Bharti while Bharti would hold a 49% stake in MTN. The process would see a transaction of $13 billion in cash and $10 billion in shares. South Africa has said it is working closely with India on the proposed deal that requires exemptions on a range of exchange-control regulations. “We have received an application from MTN for an exemption on a range of exchange-control regulations, and due process is being followed. The SA government is working closely with the Indian government through their Finance Ministries. “It would be important that such mergers are not only of benefit to the two companies, but to both countries as well,” South African Government’s spokesperson national treasury Thoraya Pandy had told PTI. Earlier this week, a delegation from South Africa had held discussions with the SEBI, RBI and Finance Ministry officials and is likely to take a decision on the contentious issue of dual listing soon. Sources also said the two companies may extend the exclusive talks period beyond September 30 to work out an alternate structure of the deal. Source: LatestNews-Home - Livemint.com | 26 Sep 2009 | 2:17 am G-20 agrees on phase-out of fossil fuel subsidiesPittsburgh: The world’s largest economies agreed on Friday to phase out subsidies for oil and other carbon dioxide-spewing fossil fuels in the “medium term” as part of efforts to combat global warming. But Group of 20 leaders at a two-day summit meeting here did not advance discussions about financial aid for developing nations dealing with climate change, exacerbating concerns that UN talks to form a new climate pact are in peril. Some $300 billion a year is spent worldwide to subsidize fuel prices, boosting demand in many nations by keeping prices artificially low and, thus, leading to more emissions. The agreement - backed by all of the G-20 including Russia, India and China - was a victory for US President Barack Obama, whose credentials for fighting climate change have been marred by dimming prospects that the US Senate will pass a bill to reduce emissions before the December UN meeting. “This reform will increase our energy security ... and it will help us combat the threat posed by climate change,” Obama told reporters at the close of the meeting. “All nations have a responsibility to meet this challenge, and together we have taken a substantial step forward in meeting that responsibility,” he said. Eliminating such subsidies by 2020 would reduce greenhouse gas emissions blamed for global warming by 10% by 2050, leaders said, citing data from the International Energy Agency and the Organization for Economic Cooperation and Development (OECD). The statement from the G-20, comprised of major rich and emerging economies, said energy and finance ministers would develop timeframes and strategies for implementing the subsidies phase-out and report back at the next G-20 summit. Environmental activists welcomed the move, though they expressed disappointment in the lack of a firm timetable and the failure to make progress on financing for poor countries. “Removing fossil fuel subsidies could be an important step towards cutting CO2 emissions,” said David Waskow, climate adviser for development group Oxfam International. “But it should not be allowed to distract from the failure of rich countries to offer poor countries the help they need.” Worries ahead of copenhagen The G-20 committed to intensify efforts to reach a UN deal on climate change later this year, a joint statement said. Leaders agreed to keep in touch about the issue, and some Europeans suggested another meeting would happen soon. “I do not hide my concern at the slow rate of progress. Negotiations cannot be an open-ended process. It’s time to get serious now, not later,” said European Commission President Jose Manuel Barroso, referring to climate negotiations. The leaders will ask their finance ministers to come up with a range of options for climate finance - payments from rich countries to poor countries dealing with global warming - at their next meeting. Energy producers were not enthused by the subsidy phase-out plan. The American Petroleum Institute, which represents the US petroleum and natural gas industry, said Washington must clarify how the policy would affect the United States. “The Obama administration and Congress now face many difficult choices if they choose to comply with the G20 commitment to phase-out fossil fuel subsidies,” the API said. “Above all else, the president and Congress should not use this commitment as an excuse to raise energy taxes on American consumers and businesses.” A US official said the policy was not likely to have a big effect on large oil companies but could have an impact on independent producers. The G-20 statement also called on big institutions such as the International Energy Agency and OPEC to analyze the scope of energy subsidies and make suggestions at the next G-20 summit for implementing the subsidy phase-out. Asking for OPEC input may have been a way of bringing Saudi Arabia, a major oil producer, on board. The group agreed to increase energy market transparency with regular reports on oil production, consumption, refining and stock levels. Source: LatestNews-Home - Livemint.com | 26 Sep 2009 | 2:05 am Upbeat G20 faces credibility test on markets, climatePITTSBURGH (Reuters) - The Group of 20 rich and developing economies, fresh from a triumphant show of unity at Pittsburgh, faces months of deal-making and communication to markets that will test its credibility as the premier global forum for economic cooperation.Source: Reuters: Money News | 26 Sep 2009 | 2:01 am Markets trade on cautious noteIndian equities traded on a cautious note this week as anxious investors sought to book profits ahead of the quarterly results season. Uncertain global cues and concerns that inflation could return to haunt policy makers added to investor anxiety.Source: IndiaeNews.com: Business News | 26 Sep 2009 | 2:00 am Toyota raises world '09/10 sales f'cast 3 pct -mediaTOKYO (Reuters) - Toyota Motor Corp, has raised its global sales forecast for the year to March 2010 by 3 percent to 6.7 million cars, the Tokyo Shimbun daily reported on Saturday, in the latest sign of a nascent recovery in auto demand.Source: Reuters: Money News | 26 Sep 2009 | 1:58 am Sony targets 25% growth for Diwali in AndhraHyderabad: Sony India, one of the largest consumer electronics brands, has set a target of 25% growth during festive period (September/October) in Andhra Pradesh. Addressing the media here last evening, Masaru Tamagawa, managing director, Sony India, said the last year’s sales turnover during the two months was Rs45 crore in Andhra Pradesh. Sony is banking on Bravia LCD TVs, cyber-shot cameras and home theater systems to drive the sales, he said. Aligned to its regional marketing strategy, Sony has unveiled newer models across the product series of its Bravia LCD range, especially for Diwali. The 24 models across seven series range from Rs15,900 to Rs2.2 lakh. The company’s revenues from India in the last fiscal stood at Rs3,300 crore which is expected to grow to Rs4,000 in financial year 2009-10, Tamagawa said Source: LatestNews-Home - Livemint.com | 26 Sep 2009 | 1:52 am Pak should shed mindset of using terror as state policy, says PMPittsburgh: Ahead of Indo-Pak foreign ministers meeting in New York, Prime Minister Manmohan Singh on Saturday said India seeks to normalize relationship with Pakistan but it should shed its mindset of using terror as an instrument of state policy against New Delhi and take action against those involved in the Mumbai terror attacks. He made it clear that there was no change in India’s stand on Pakistan since the Sharm-el-Sheikh talks with his counterpart Yousuf Raza Gilani, a position he has made clear in Parliament. “India’s message is that India seeks to normalise its relationship with Pakistan. But the only obstacle is that it should shed its old attitude of using terror as a state policy,” Singh told a press conference winding up his two-day trip to Pittsburgh where he attended the G-20 Summit. “We have supplied our material and evidence for them to carry out investigation. Although the tragedy took place in India, the conspiracy took place in Pakistan. Pakistan has admitted to this. We want them to bring to book the culprits involved in the November 26 attacks,” he said. Singh recollected that he has already said that if Pakistan took proper action India would move the extra mile to normalize relations. The Prime Minister’s comments come as foreign ministers of India and Pakistan are set to meet on Sunday during which Islamabad’s action against terror emanating from its soil will be discussed. Singh said India and Pakistan are neighbours and they have an obligation to move as neighbours. Asked how he looked forward to moving ahead with the relations with Pakistan after the Sharm-el-Sheikh episode, Singh said “If you read my statements in Parliament, I have explained the government’s position and I think there is no change on this.” Asked about a report by US general Stean McChrystal that India was doing good work in Afghanistan but it could lead to instability in the region, he said: “I think to my knowledge there US and other European powers are appreciative of the role played by India in Afghanistan. “We have not supplied any arms, we are also helping them in construction and financing of projects in power health and education sectors. Untill today we have committed $1.5 billion in Afghanistan. “Not only people of Afghanistan is appreciate but Europe and American leaders are of the same view. As far as Afghanistan is concerned, I agree that we have to sail in these difficult waters,” he said. Source: Home - Livemint.com | 26 Sep 2009 | 1:46 am No economic crisis in India, but stake in world growth: PMPittsburgh: Prime Minister Manmohan Singh on Saturday said that there is no economic crisis in the country. “There is no economic crisis in India. It is certainly true that as a sequel to the global economic crisis our exports have suffered that has affected the rate of growth, but even then our economy is growing at a rate of six and half percent. Therefore there is no crisis, as such in India,” Singh said. However, the Prime Minister acknowledged that in a highly interdependent world, India has a stake in the stability and growth of the world economy. “If world economy collapses, there is obviously some effect on our country. Already the rate of our growth of our economy particularly our exports have suffered,” he said, adding that this has led to decline in exports of important labour intensive products like gems and jewellery, leather goods textiles. “So in an increasingly interdependent world, I think, no country by itself can ensure that all its goals of economic life can be achieved working to the exclusion of other participants in an increasingly interdependent world,” Singh said. As such there is therefore a necessity for India to ensure that the global economic system continues to progress, he observed. “We need an external environment which is conducive to the growth of our exports. We need an external environment which is conducive to an external flow of capital in an international environment which is conducive to increased growth of technology and all these things have a bearing on the rate of growth of our economy,” he said. Noting that interdependence of nations is fact of life, the Prime Minister said interdependence in a globalized world means that no country how so ever powerful it may be can take on the entire burden of economic adjustment and economic decision making that may be required to manage the global system in an orderly passion. “It is that perception, that reality which has, I think persuaded many people in Europe and the United States that G-8 is ill equipped to handle all the global issues with the rise of Asia. With growth of India, China, Brazil, economic decision-making has to take into account the view of these countries if it is to have an optimum impact,” he said. Responding to a question, the Prime Minister said: “As of now, inflation is not a problem, it is under control, but our options are limited and constrained as we are by substantial amount of fiscal deficit and also at the monetary initiative.” Source: LatestNews-Home - Livemint.com | 26 Sep 2009 | 1:39 am Recession hits hard Durga Puja businessRecession has hit hard the export of Durga Puja idols. Potters are getting fewer orders from Bengalis abroad for Durga images that normally do booming business this time of the year.Source: IndiaeNews.com: Business News | 26 Sep 2009 | 1:30 am Monsoon withdrawal starts; seasonal rains 22% below AVG - India Infoline.com
Source: Business - Google News | 26 Sep 2009 | 1:27 am Chinese employed at Balco flee after chimney crashDozens of Chinese nationals, mostly engineers, working at Bharat Aluminium Company Ltd (Balco) in Chhattisgarh's Korba town are reported to have fled fearing attacks by locals after a 100-metre under-construction chimney at the plant collapsed Wednesday, trapping many workers. So far, 40 mutilated bodies have been recovered.Source: IndiaeNews.com: Business News | 26 Sep 2009 | 1:00 am Watch/Listen: Mint in multimedia- 26 SeptemberVideo story: Comments that go anywhere A new Google product lets you launch a discussion on any website anywhere. On your terms Video story: The Mint report for 25 September 2009 Airport modernization costs skyrocket, passengers foot the bill; Natco Pharma launches swine flu drug; Jindal Group promoters consolidate their holdings Video story: The week in review for 25 September 2009 Balco chimney collapse kills 18; India and Japan will resume talks on a free trade agreement; SEBI’s new takeover code could hit Bharti-MTN merger deal Video story: Verdant vocations: India’s first green jobs fair While the green job sector offers tremendous potential for growth, it lacks the human capital to effectively realize these opportunities Slideshow: Tracking Ram in Old Delhi The Savari is a procession that traditionally accompanies Ramlila festivities. While Ramlila performances still manage to attract sponsors, the Savari is negotiating a bleak future Source: Home - Livemint.com | 26 Sep 2009 | 12:59 am Bhave seeks responsible investment in voluntary formMumbai, Sept. 25 The movement towards responsible investment should grow in a voluntary form for some time in India before regulators can prescribe guidelines or laws in this area, said Mr C.B. Bhave, Chairman of SEBI.Source: Business Line - Home Page | 26 Sep 2009 | 12:00 am Treasury shares turn a bounty for some cosKolkata, Sept. 25 Recent treasury shares sale by Reliance Industries and JP Associates has created a flutter on Dalal Street.Source: Business Line - Home Page | 26 Sep 2009 | 12:00 am IITs need more autonomyThe IIT faculty is on a hunger strike! This is not something in Ripley’s Believe it or Not but a challenge facing the Ministry of Human Resource Development (MHRD) today. It is not an ordinary wage dispute but part of a deeper malaise whichSource: Business Line - Home Page | 26 Sep 2009 | 12:00 am Renault finds the going toughMumbai, Sept. 25 The French carmaker, Renault is literally skating on thin ice in India if its pace of progress here is anySource: Business Line - Home Page | 26 Sep 2009 | 12:00 am Coromandel International lines up Rs 1,200-cr capexHyderabad, Sept. 25 The Murugappa Group-owned Coromandel Fertilisers Ltd, which was renamed Coromandel International Ltd (CIL) with a new brand identity on Friday, has lined up a capital expenditure programme of Rs 1,200 crore for expansion ofSource: Business Line - Home Page | 26 Sep 2009 | 12:00 am Festival weekend sees scramble for plane seatsNew Delhi, Sept. 25 The long weekend is bringing smiles to the faces of most promoters of domestic airlines.Source: Business Line - Home Page | 26 Sep 2009 | 12:00 am Monsoon in withdrawal mode, exits W. RajasthanThe US National Centres for Environmental Prediction sees the whole of the peninsula and parts of central India being brought under the cover of thundershower activity until October 11, according to as per latest forecasts.Source: Business Line - Home Page | 26 Sep 2009 | 12:00 am Air India pilots threaten agitationNew Delhi, Sept. 25 The Air India management could come down heavily against a section of pilots threatening to go on industrial action, which could possibly disrupt flight operations fromSource: Business Line - Home Page | 26 Sep 2009 | 12:00 am L&T Finance to acquire DBS Cholamandalam AMCMumbai, Sept. 25 L&T Finance has agreed to acquire 100 per cent stake in DBS Cholamandalam Asset Management Company for Rs 45 crore from Cholamandalam DBS Finance LtdSource: Business Line - Home Page | 26 Sep 2009 | 12:00 am Lunar water lifts ISRO to new orbitBangalore, Sept. 25 Chandrayaan-1 may have died in its lunar orbit a month ago but has come alive on ground, with the news of its ‘earth-shaking’ discovery of water on Moon’s upper zones towards theSource: Business Line - Home Page | 26 Sep 2009 | 12:00 am Rat delays Air India Amritsar-London flightA rat delayed a London-bound Air India flight from the Rajasansi airport here Saturday morning.Source: IndiaeNews.com: Business News | 25 Sep 2009 | 11:01 pm BSNL provides affordable broadband in Himachal villagesTelecom operator Bharat Sanchar Nigam Ltd (BSNL) has launched cheap broadband connectivity to the internet in Himachal Pradesh for faster penetration of information technology in rural and remote areas, an official said here Saturday.Source: IndiaeNews.com: Business News | 25 Sep 2009 | 11:00 pm Toyota-GM's NUMMI to axe all 4,700 workers - NikkeiTOKYO (Reuters) - New United Motor Manufacturing Inc (NUMMI), a joint venture between Toyota Motor Corp and the former General Motors Corp in California, will shed its entire workforce of about 4,700 by next spring, the Nikkei business daily reported on Saturday.Source: Reuters: Money News | 25 Sep 2009 | 10:42 pm Citi sues Morgan Stanley over CDS, claims $245 mlnNEW YORK (Reuters) - Citigroup Inc sued Morgan Stanley on Friday for breach of contract, saying the Wall Street firm owed it $245.4 million for protection it bought on a loan.Source: Reuters: Money News | 25 Sep 2009 | 10:41 pm U.S. regulators close Georgia bank; 95th failureWASHINGTON (Reuters) - Regulators closed Georgian Bank in Atlanta on Friday, an institution that catered to wealthy property developers and became the 95th U.S. bank to fail so far this year.Source: Reuters: Money News | 25 Sep 2009 | 10:35 pm Bank of America rejects SEC claims in bonus suitNEW YORK (Reuters) - Bank of America Corp formally denied U.S. Securities and Exchange Commission claims accusing it of misleading shareholders about bonuses it let Merrill Lynch & Co pay employees before the companies' Jan. 1 merger, and said it is seeking an order dismissing the regulator's complaint.Source: Reuters: Money News | 25 Sep 2009 | 10:33 pm Hildebrand-inflation to drive SNB's exit strategyCHICAGO (Reuters) - Swiss National Bank Vice Chairman Phillip Hildebrand said on Friday that the bank would do "whatever it takes" to adjust monetary policy -- but only when the right time comes.Source: Reuters: Money News | 25 Sep 2009 | 10:31 pm ANALYST VIEW - G20 ends reign of G7 in PittsburghPITTSBURGH (Reuters) - Group of 20 leaders on Friday designated themselves as the new forum for steering the world economy, ending the long reign of the G7 as the preeminent committee for guiding global growth:Source: Reuters: Money News | 25 Sep 2009 | 10:04 pm Realty developers' premium deduction capped at 35%According to real estate industry experts, the move would not benefit the developers in Ahmedabad as they usually enjoyed up to 40% deduction in premium.Source: Daily News & Analysis: Money News | 25 Sep 2009 | 10:02 pm G20 leaders pledge quick action on Doha dealPITTSBURGH (Reuters) - World leaders on Friday promised quick action to conclude long-running world trade talks and told their top trade officials to meet by early next year to begin the final push for a deal.Source: Reuters: Money News | 25 Sep 2009 | 9:49 pm G20 agrees on phase-out of fossil fuel subsidiesPITTSBURGH (Reuters) - The world's largest economies agreed on Friday to phase out subsidies for oil and other carbon dioxide-spewing fossil fuels in the "medium term" as part of efforts to combat global warming.Source: Reuters: Money News | 25 Sep 2009 | 9:42 pm PM strongly backs Bharti's efforts to acquire stakes in MTNThe Bharati Group and South African telecom gaint MTN are looking at an $23 billion deal to create the world's third largest mobile firm with over 200 million subscribers.Source: Daily News & Analysis: Money News | 25 Sep 2009 | 9:09 pm G-20 reflects rise of Asia: Manmohan SinghPrime Minister Manmohan Singh has welcomed a decision to make the Group of 20 as the premier forum for global economic decisions, saying the views of fast growing developing countries like India, China and Brazil have to be taken into account for optimum impact.Source: IndiaeNews.com: Business News | 25 Sep 2009 | 8:00 pm L&T Finance Enters into MoU for Purchase of 100% Stake of DCAM - Business Standard
Source: Business - Google News | 25 Sep 2009 | 5:33 pm GM plans to roll out mini electric cars - Indian Express
Source: Business - Google News | 25 Sep 2009 | 5:20 pm Retailers step out of stores to nudge consumers inFrom live mannequins to stalls outside stores, they are doing all they can to capture mindspace.Source: Daily News & Analysis: Money News | 25 Sep 2009 | 3:22 pm HCC's Rs 1,415 cr project nearsHindustan Construction Company is close to tying up funds for its Rs 1,415 crore highway project between the Maharashra-Madhya Pradesh border and Dhule in Maharashtra.Source: Daily News & Analysis: Money News | 25 Sep 2009 | 3:02 pm Number portability readiness at peakIncumbent telecom operators are leaving no stone unturned to ensure that mobile number portability does not lead to a huge subscriber exodus when it is introduced in December.Source: Daily News & Analysis: Money News | 25 Sep 2009 | 2:59 pm Going too fast?The stock of leading carmaker Maruti Suzuki India has sharply outperformed broader markets since it hit the 52-week low.Source: Daily News & Analysis: Money News | 25 Sep 2009 | 2:55 pm Arshiya lines up Rs 2,210 cr expansionArshiya International, is investing Rs 2,210 crore in the first phase of an expansion plan.Source: Daily News & Analysis: Money News | 25 Sep 2009 | 2:40 pm NTPC sees power min role in solving margin tussle - Economic Times
Source: Business - Google News | 25 Sep 2009 | 2:31 pm Air India pilots threaten to go on strikeThe executive pilots of national carrier Air India, numbering to about 400, may go on a strike following a cut in incentives announced by the airline. Captain Bhalla, a member of the Air India Executive Pilots Committee, said flights could be affected by Saturday.Source: Moneycontrol Top Headlines | 25 Sep 2009 | 1:57 pm Sesa Goa to raise up to Rs 6000 crore - Business Standard
Source: Business - Google News | 25 Sep 2009 | 1:45 pm Kapil Sibal rules out salary hike for IIT faculty - Business Standard
Source: Business - Google News | 25 Sep 2009 | 1:36 pm Review | CMYK, New DelhiIndia is undergoing a pleasant art attack. This month, Mumbai made room for two new art spaces—Gallery BMB, to showcase contemporary work, and Osian’s retail area at Vama for Indian art memorabilia. The capital city catches up with CMYK, a bookstore dedicated to art and design.  Photograph: Jeremie Garric The good CMYK is centrally and strategically located in Mehar Chand market, which happens to be right behind the India Habitat Centre (IHC). So you can meet up with your date, and browse through handsome volumes on art before heading for a show at the IHC. An initiative by Roli Books, this is the first in what might turn out to be a nationwide art and design book chain. Apart from Roli’s own publications, the store hosts an impressive collection of titles from reputed international publishers such as Phaidon, Thames and Hudson, Taschen, Abrams, Black Dog and Leventhal. The shelves hold everything that is loosely connected with art: photography, performing arts, architecture, travel, erotica and gourmet cookbooks. Visitors can pick up a book, grab an espresso (free, we have to add) and lounge on the terrace upstairs. The not-so-good The best thing about top-notch bookstores are the nooks that allow you to sit and browse through a book from which you only want one Thai curry recipe or a Rodin reference for your next art paper. CMYK is a relatively small space. Though it makes up for this loss by having a terrace upstairs, Delhi’s extended sultry summers mostly rule out that option. Talk plastic Hardcover art books necessarily cost more than fiction. The cost of a book at CMYK averages Rs2,000 but stationery by the in-house brand, Designwallas, and Roli’s cute pocket art series—Complete Works of Manjit Bawa, Satyajit Ray at Work, etc.—come for Rs150. The most expensive book in the store right now is Later Chinese Painting and Calligraphy by Robert Hatsfield Ellsworth, priced at Rs35,000. What’s fantastic is Roli Books founder Pramod Kapoor’s instalment payment scheme for those terribly expensive books (the store has books priced at Rs2 lakh coming in) you want but can’t get yourself to to pay for at once. Art on EMI! Fabulous. Source: LatestNews-Home - Livemint.com | 25 Sep 2009 | 1:20 pm Sesa Goa plans to raise up to Rs6,000 crMumbai: Iron ore exporter Sesa Goa Ltd said on Friday it will seek shareholders’ approval on 20 October to raise up to Rs6,000 crore in equity or debt. The firm said it planned to raise up to $500 million in foreign currency convertible bonds. Source: LatestNews-Home - Livemint.com | 25 Sep 2009 | 1:16 pm Balco mishap: Chinese staff evacuated, fearing local ireChinese nationals are fleeing the industrial township of Korba to escape local wrath after a chimney collapse at a plant run by Bharat Aluminium Company Limited (Balco) claimed 25 lives on Wednesday.Source: Business Standard | Front Page Headlines | 25 Sep 2009 | 1:12 pm 400 Air India executive pilots go on strikeProtest against sharp cuts in productivity bonuses; management says contingency plan ready.Source: Business Standard | Front Page Headlines | 25 Sep 2009 | 1:10 pm FCCBs regain currency; 4 firms raise $702 mn in four daysAfter a years lull, foreign currency convertible bonds (FCCBs) are regaining currency. In the past four days, four companies have announced plans to raise $702 million (around Rs 3,370 crore) through FCCBs.Source: Business Standard | Front Page Headlines | 25 Sep 2009 | 1:08 pm G-20 drops joint 'exit strategy' for stimulus phase-outAcknowledges developing countries' concerns over early coordinated withdrawal.Source: Business Standard | Front Page Headlines | 25 Sep 2009 | 1:07 pm Unilever to buy Sara Lee soaps for $1.88 billionUnilever, the global consumer goods conglomerate, agreed to buy Sara Lee Corps personal-care and European detergent unit for 1.28 billion ($1.88 billion), in its biggest purchase in nine years.Source: Business Standard | Front Page Headlines | 25 Sep 2009 | 1:05 pm BIFR approves Bombay Paints\' merger with Gauer WielThe governments body for sick units, Bureau of Industrial and Financial Reconstruction (BIFR), has approved of a merger of Bombay Paints with Gauer Wiel India, which owns 7.8% in the company. Bombay Paints had approached the BIFR in 2002 due a liquidity crunch it was facing.Source: Moneycontrol Top Headlines | 25 Sep 2009 | 12:47 pm Pharma exports grow 29% in 2008-09 - Hindu Business Line
Source: Business - Google News | 25 Sep 2009 | 12:41 pm Aug excise collection up 23% over July, says CBEC chief - Hindu Business Line
Source: Business - Google News | 25 Sep 2009 | 12:41 pm Nalco in talks to explore Namibia copper reserveMumbai: National Aluminium Co. Ltd, or Nalco, seeking to enter the copper business, is in talks with Hindustan Copper Ltd, the country’s only miner of the metal, to explore reserves in Namibia, Nalco finance director B.L. Bagra said on Friday over the phone. Source: World Business - Livemint.com | 25 Sep 2009 | 12:33 pm Foreign steel firms eye India as global demand slumpsMumbai: Apersistent demand slump that has seen steel making capacity idled worldwide for nearly a year is pushing top global producers to expand their footprint in India, which along with China is a rare bastion of growth. Strong local demand driven by infrastructure building and rebounding car sales has led big foreign steel makers to seek out investments among a fragmented local industry after efforts to develop standalone projects met with delays. “India is on the radar of most companies given the lucrativeness of the market,” said Rakesh Arora, analyst at Macquarie Research. “India has both demand growth and cheap iron ore going for it.”  Burning hot: A Tata Iron and Steel foundry in Jamshedpur. Global steel offtake slumped by more than a tenth in the past year, but India’s 55 mt steel market has seen demand grow by nearly 10%. Santosh Verma / Bloomberg Earlier this month, global leader ArcelorMittal said it would acquire a one-third stake in Indian re-roller Uttam Galva Steels Ltd, and more such deals are expected given the difficulty of going it alone in India. “It is very difficult for someone coming from outside to set up a greenfield project,” Nittin Johari, chief financial officer of Bhushan Steel said. “Foreign firms have realized it’s not possible to do business standalone in India.” Bhushan is in talks with Japan’s Sumitomo Metal Industries Ltd to jointly build a steel plant in India. Global steel offtake slumped by more than a tenth in the past year, but India’s 55 million tonne (mt) steel market has seen demand grow by nearly 10% as its $1 trillion (Rs48 trillion) economy focuses on building physical infrastructure and as auto sales revive. Still, absolute demand remains far below global levels, with per capita steel consumption at 44kg per year, compared to 100kg in Brazil and a global average of 198kg. “India will continue to see growth. Per capita consumption is very low, so the potential is very high,” Tata Steel Ltd chairman Ratan Tata told shareholders last month. The world’s No. 8 steel maker expects demand in India to rise 25% annually, and is raising its local capacity by a third to 9.8 mt. Other local producers are also expanding. Smaller steel firms, which make up nearly half the industry in India, are attractive targets given their value-added steel capacity and coal and ore reserves. “Many small steel companies have cornered large iron ore and coal resources and are pursuing large steel projects. If there’s a partnership or a stake sale, they can see a large jump in valuations,” Macquarie’s Arora said. Global steel producers have long coveted—and been frustrated in—Asia’s third largest economy. ArcelorMittal and South Korea’s Posco, which plan to spend a combined $24 billion to build 24 mt of capacity in eastern India, have yet even to secure land more than two years after announcing their plans. Both have faced delays in allocation of mining leases and on protests from local farmers against land acquisitions. With foreign players eyeing smaller firms as a way into India, domestic players may face stiffer competition, given the fragmented nature and small size of the market. “Any such move would be potentially negative to the Indian integrated steel producers given the entry of a large competitor and also the potential loss of a customer,” broker JPMorgan said in a note to clients after the Arcelor-Uttam Galva deal. India’s steel making capacity, only a tenth of China’s, is dominated by large local producers Tata Steel, Steel Authority of India Ltd and JSW Steel Ltd, leaving a large number of makers of higher-end re-rolled steel with less than 1 mt of capacity each. feedback@livemint.com Source: Home - Livemint.com | 25 Sep 2009 | 12:10 pm Marketing margin to add to controversyNew Delhi: Power utility NTPC Ltd and Reliance Infrastructure Ltd (R-Infra) have objected to the marketing margin charged by Reliance Industries Ltd (RIL) to supply natural gas from its field in the Bay of Bengal. This could potentially widen and complicate the ongoing spat over the supply of natural gas from RIL’s KG D6 field in the Krishna-Godavari basin.  Legal tangle: RIL is charging 13.5 cents per mmBtu marketing margin over the $4.2 per mmBtu price fixed by the Indian government. State-owned NTPC and Anil Ambani-controlled R-Infra have signed agreements with RIL to buy 0.61 million standard cu. m a day (mscmd) and 0.56 mscmd, respectively. R-Infra, which bought the gas for the Samalkot power project in Andhra Pradesh, received a notice dated 22 September from RIL regarding suspension of supplies because it did not pay the marketing margin. In response, R-Infra in a communication dated 24 September said it will not pay the “illegal” marketing margin. While gas supplies are yet to start for NTPC’s projects, it wants a refund from RIL once the government takes a view on it. “We have signed the GSPA (gas supply and purchase agreement) to protect our portion of the gas. We have written to...the power ministry to get a clear cut view on the marketing margin,” a top NTPC official said on condition of anonymity. “If the government does not approve of this, we will ask for a refund from RIL.” “Normally marketing margins are meant for where there is a wholeseller, there is a distributor and there is a retailer. In this case of gas company, there is no wholeseller or retailer. It’s one-man show, one company doing everything,” power secretary H.S. Brahma told reporters on Friday. “So I don’t know how to explain this situation.’’ A Reliance Anil Dhirubhai Ambani Group spokesperson declined comment. An external spokesperson for RIL did not respond to Mint’s query till the time of going to press. NTPC and Reliance Natural Resources Ltd (RNRL) are fighting lawsuits against RIL over the price of gas. The litigation between NTPC and RIL in the Bombay high court, dating back to December 2005, relates to the existence and terms of a contract between the two firms. NTPC claims there is a binding contract in which RIL promised to supply 12 mscmd for the expansion of the utility’s Kawas and Gandhar power plants in Gujarat for 17 years at a price of $2.34 per mmBtu. RIL claims otherwise. NTPC filed an appeal in the Supreme Court on 5 September, challenging an unfavourable Bombay high court order allowing RIL to amend its petition to include an earlier affidavit filed by the Union government in the same court, but in the case between RIL and RNRL. Anil Ambani’s RNRL is embroiled in a legal battle with RIL, owned by estranged brother Mukesh Ambani, over the pricing of gas. The lawsuit has now escalated to the Supreme Court when RIL challenged a verdict of the Bombay high court on the supply of gas from its field off India’s east coast. India’s apex court is scheduled to deliberate on the matter on 20 October. Bhuma Shrivastava in Mumbai contributed to this story. Source: Home - Livemint.com | 25 Sep 2009 | 12:08 pm IPO pricing in focus; small investors grumbleMumbai: Jayesh Jhaveri has had enough of initial public offerings (IPOs) for now. Like many individual investors, the retired Mumbai businessman has seen his shares in NHPC Ltd’s $1.25 billion (Rs6,000 crore) IPO fall below their offer price. Jhaveri, 69, figures he’s better off buying already listed stocks in a market that has risen 74% this year. “Why should I put my money in these IPOs, when the prices fall below the issue price on the listing day itself and are still around there?” says Jhaveri. “One would rather buy the active stocks in the secondary market.”  Below expectations: A Reliance Power plant. The IPO issue of the firm was covered around 70 times, with the retail portion oversubscribed 13.6 times, but the stock has never traded above its IPO price. “There will be more sanity and you will see hopefully more sensible pricing taking place,” said Atul Mehra, managing director of investment bank JM Financial. Indian companies have raised roughly $15 billion through share sales this year, surpassing the total for all of 2008, and billions of dollars worth of IPOs are in the pipeline. Companies readying listings include Reliance Infratel Ltd, JSW Energy Ltd, Indiabulls Real Estate Ltd, Great Eastern Energy Corp. Ltd and Oberoi Constructions. “The bad listing makes the investor exit the stock to cut losses and pressurises it more,” said Rajen Shah, chief investment officer at retail brokerage Angel Broking Ltd. “One or two such bad experiences scares him away from other IPOs. It’s almost a cycle, until some company leaves enough room for listing gains while pricing it,” Shah added. State-run power company NHPC saw its much-anticipated IPO subscribed by more than 23 times, but the portion set aside for individual investors was covered less than 4 times. NHPC shares gained more than 10% in their 1 September trading debut, but have mostly traded below their offer price. Adani Power Ltd’s $630 million IPO was subscribed around 18 times, with the retail portion subscribed nearly 3 times. Its shares gained almost 8% on their first trading day, but are currently around their IPO price. With that recent experience in mind, many individual investors shunned Oil India Ltd’s (OIL) $570 million offering, which was subscribed more than 30 times, but just 1.8 times in the retail portion. The stock debuts on Wednesday. Adani, NHPC and OIL all priced their offerings at the top of their indicated ranges. “Companies have not really left anything on the table for the investors,” said Ambareesh Baliga, vice-president of Karvy Stock Broking Ltd. Some investors are still smarting from last year’s much-hyped $3 billion Reliance Power Ltd IPO. The issue was covered around 70 times, with the retail portion oversubscribed 13.6 times, but the stock has never traded above its IPO price. “Most of the companies planning IPOs are becoming slightly more conservative in their pricing after the after-market performance of a couple of recent IPOs,” said Rashesh Shah, CEO of investment bank Edelweiss Capital Ltd. He said retail appetite for new listings will remain given high levels of savings, but said heavy oversubscription levels and big first-day trading pops of the sort seen during boom times were unlikely—a development he said was healthy. “We’ll not see a crazy pop, and maybe a 5-10% pop is what we in the industry consider good,” he said. “Five or 10% will keep the flippers away.” Retail demand for the wave of IPOs by Chinese companies also appears to be increasingly selective. In July, building materials maker BBMG Corp. saw the retail portion of its IPO subscribed more than 100 times and its shares jumped 65% on their debut. But this week, Metallurgical Corp. of China Ltd fell 13% on its Hong Kong debut after the firm raised $2.3 billion, and real estate firm Glorious Property Holdings Ltd opted on Friday to price its IPO towards the lower end of its range. Several retail investors in India said they would rather invest in already listed companies than have their money locked up for around 20 days in IPO applications. India’s main 30-share index has more than doubled from its 2009 lows in March. “I see no point in looking at IPOs where my funds are going to be blocked for a few days. I’d rather play around with that in the market and make myself some decent money,” said Sachin Dholakia, a 31-year old software engineer. Source: Home - Livemint.com | 25 Sep 2009 | 12:02 pm Nava Bharat buys Zambia mine stakeNew Delhi/Hyderabad: Yet another Indian firm is rushing into Africa. Hyderabad-based Nava Bharat Ventures Ltd (NBVL) is to spend a little over half a billion dollars to acquire a controlling stake in a government firm in Zambia that owns the largest coal mine in the country. As part of the deal, NBVL will also have to set up a power plant and invest fresh money in the mine. Though primarily conceived as a transaction that will earn the company more revenue by operating a mine and generating power abroad, it’s also an opportunity for NBVL to expand its global reach and earn additional revenue by selling surplus coal from this mine in adjoining markets. The second global acquisition by NBVL, caution analysts, may prove to be tricky since it will also have to deal with labour problems and salary arrears. The company won against rivals that included Vedanta Resources Plc, South Africa’s Londoloza Resources Corp., Borneo Mining SA, London-based Aldwych International Ltd and the Zambezi Consortium Ltd comprising investors from Mauritius and Zambia. NBVL, which had some Rs1,168 crore of reserves as on 31 March, plans to fund the $550 million (Rs2,640 crore) acquisition with a 70:30 debt-equity ratio, said managing director P. Trivikram Prasad. “We plan to dilute our stake in the special purpose vehicle Nava Bharat (Singapore) Pte Ltd (NBS) to mobilize the necessary equity funds at an appropriate time,” he said. The company acquired its first overseas asset, an Indonesian mining firm, in January through wholly owned subsidiary NBS. The Zambian government had invited global bids, which closed in March, to privatize Maamba Collieries Ltd. The rider was that the winning company will also have to set up a 300MW power project, the fuel for which would be sourced from the coal mine, to meet the demand for power at the country’s copper mines. “A consortium comprising NBS and a Zambian group bid against a global tender for a 65% equity stake in Maamba Collieries Ltd, a company held 100% by ZCCM IH, a government investment holding company of Zambia. The NBS consortium was chosen as the preferred bidder by ZCCM IH (ZCCM-Investment Holdings Plc),” G.R.K. Prasad, director (finance and corporate affairs) at NBVL, said over phone from Zambia on Thursday. Apart from around $50 million to be paid to the Zambian government, setting up the power project will require an investment of around $140 million, and recapitalization of the coal mine and increasing coal production will require an investment of around $360 million. Going by recent coal deals, if the reserves are not proven, the valuation of a mine is around 10-20 cents per tonne. For proven resources, it is 50-60 cents per tonne. Operational mines come with a much higher price tag of around $2-3 per tonne. “Nava Bharat is on the verge of concluding a monumental deal with ZCCM-IH on Maamba Collieries to establish a coal power station,” Andrew Chipwende, director general of Zambia Development Agency, said in an email response. “These are distress assets and there are a lot of liabilities. The coal will be mined and sold there,” said a person aware of the development, who did not want to be identified. Workers at the mine have not been paid for months and production has been hit. NBVL posted a net profit of Rs520.57 crore on sales of Rs1,350.05 crore in 2008-09. On a paid-up equity of Rs15.22 crore, the company’s reserves stood at Rs1,168.24 crore as on 31 March. “The transaction is likely to be consummated by December 2009,” G.R.K. Prasad added. Managing director Trivikram Prasad said, “The process is expected to take (a) couple of months and a purchase-cum-sale agreement with the Zambian government could be inked before the year-end. The priority would be on mining activities in the first phase. (The) power project would come up in the second phase and would take off within three years.” At present, Zambia’s copper mines consume up to 60% of the country’s power generation of around 1,600MW, and many of them have suffered on account of nationwide power failure in January. Analysts say coal mining costs are expected to rise due to demand pressures on equipment and human resources in particular, but the sector will still hold value for investors who choose to mine rather than purchase at prevailing market rates. “A lot of Indian companies are making efforts to get into African markets, which is resource rich and is the market of the future,” notes Kuljit Singh, a partner at audit and consulting firm Ernst and Young. The NBVL stock on Friday gained 4.27% to Rs379.50 at close of trading on the Bombay Stock Exchange. The exchange’s benchmark index, the Sensex, lost 0.53% to 16,693 points. utpal.b@livemint.com Source: Home - Livemint.com | 25 Sep 2009 | 11:53 am Nava Bharat buys Zambia mine stakeNew Delhi/Hyderabad: Yet another Indian firm is rushing into Africa. Hyderabad-based Nava Bharat Ventures Ltd (NBVL) is to spend a little over half a billion dollars to acquire a controlling stake in a government firm in Zambia that owns the largest coal mine in the country. As part of the deal, NBVL will also have to set up a power plant and invest fresh money in the mine. Though primarily conceived as a transaction that will earn the company more revenue by operating a mine and generating power abroad, it’s also an opportunity for NBVL to expand its global reach and earn additional revenue by selling surplus coal from this mine in adjoining markets. The second global acquisition by NBVL, caution analysts, may prove to be tricky since it will also have to deal with labour problems and salary arrears. The company won against rivals that included Vedanta Resources Plc, South Africa’s Londoloza Resources Corp., Borneo Mining SA, London-based Aldwych International Ltd and the Zambezi Consortium Ltd comprising investors from Mauritius and Zambia. NBVL, which had some Rs1,168 crore of reserves as on 31 March, plans to fund the $550 million (Rs2,640 crore) acquisition with a 70:30 debt-equity ratio, said managing director P. Trivikram Prasad. “We plan to dilute our stake in the special purpose vehicle Nava Bharat (Singapore) Pte Ltd (NBS) to mobilize the necessary equity funds at an appropriate time,” he said. The company acquired its first overseas asset, an Indonesian mining firm, in January through wholly owned subsidiary NBS. The Zambian government had invited global bids, which closed in March, to privatize Maamba Collieries Ltd. The rider was that the winning company will also have to set up a 300MW power project, the fuel for which would be sourced from the coal mine, to meet the demand for power at the country’s copper mines. “A consortium comprising NBS and a Zambian group bid against a global tender for a 65% equity stake in Maamba Collieries Ltd, a company held 100% by ZCCM IH, a government investment holding company of Zambia. The NBS consortium was chosen as the preferred bidder by ZCCM IH (ZCCM-Investment Holdings Plc),” G.R.K. Prasad, director (finance and corporate affairs) at NBVL, said over phone from Zambia on Thursday. Apart from around $50 million to be paid to the Zambian government, setting up the power project will require an investment of around $140 million, and recapitalization of the coal mine and increasing coal production will require an investment of around $360 million. Going by recent coal deals, if the reserves are not proven, the valuation of a mine is around 10-20 cents per tonne. For proven resources, it is 50-60 cents per tonne. Operational mines come with a much higher price tag of around $2-3 per tonne. “Nava Bharat is on the verge of concluding a monumental deal with ZCCM-IH on Maamba Collieries to establish a coal power station,” Andrew Chipwende, director general of Zambia Development Agency, said in an email response. “These are distress assets and there are a lot of liabilities. The coal will be mined and sold there,” said a person aware of the development, who did not want to be identified. Workers at the mine have not been paid for months and production has been hit. NBVL posted a net profit of Rs520.57 crore on sales of Rs1,350.05 crore in 2008-09. On a paid-up equity of Rs15.22 crore, the company’s reserves stood at Rs1,168.24 crore as on 31 March. “The transaction is likely to be consummated by December 2009,” G.R.K. Prasad added. Managing director Trivikram Prasad said, “The process is expected to take (a) couple of months and a purchase-cum-sale agreement with the Zambian government could be inked before the year-end. The priority would be on mining activities in the first phase. (The) power project would come up in the second phase and would take off within three years.” At present, Zambia’s copper mines consume up to 60% of the country’s power generation of around 1,600MW, and many of them have suffered on account of nationwide power failure in January. Analysts say coal mining costs are expected to rise due to demand pressures on equipment and human resources in particular, but the sector will still hold value for investors who choose to mine rather than purchase at prevailing market rates. “A lot of Indian companies are making efforts to get into African markets, which is resource rich and is the market of the future,” notes Kuljit Singh, a partner at audit and consulting firm Ernst and Young. The NBVL stock on Friday gained 4.27% to Rs379.50 at close of trading on the Bombay Stock Exchange. The exchange’s benchmark index, the Sensex, lost 0.53% to 16,693 points. utpal.b@livemint.com Source: World Business - Livemint.com | 25 Sep 2009 | 11:53 am Jindals consolidate holdings in recastMumbai: The four Jindal brothers—Prithviraj, Sajjan, Naveen and Ratan—who control the $12 billion (Rs57,600 crore) industrial group they inherited from their father O.P. Jindal in 2005, are in the process of whittling down the number of holding and investment firms through which they control the group’s operating companies. This restructuring could allow them to raise more money from banks, fund new businesses and also create fewer succession tensions later.  In the family: Sajjan Jindal’s JSW Steel is the largest firm in the group by sales, with a market capitalization of Rs15,108 crore as on Friday. Indranil Bhoumik/Mint “All the promoters’ holding in various companies will be consolidated into four companies,” said M.V.S. Seshagiri Rao, joint managing director of JSW Steel and chief executive of the Sajjan Jindal group. A holding company does not usually produce any goods and services itself, but owns shares in companies that do. Indian promoter groups have traditionally controlled operating companies through such investment firms. The four holding companies that will be created after the restructuring will continue to have cross holdings by the brothers to abide by the will written by O.P. Jindal 20 days before he died in a helicopter crash in Haryana in 2005. The promoters’ stake in each new holding company will be split five equal ways among the brothers and their mother Savitri Devi, the chairperson of the O.P. Jindal group. Each brother will control one holding company and will eventually inherit Savitri Devi’s stake, making him the largest individual shareholder in that particular holding company with 40% ownership. “We will raise debt in the holding companies and use it as promoters’ equity to fund our new cement plants and expand steel capacity,” said Rao, who has been with JSW for more than a decade. According to Rao, JSW promoter Sajjan Jindal needs to invest Rs450 crore to build a 2.5 million tonne (mt) cement plant in Andhra Pradesh and a similar one in Vijayanagar, near the group’s 8 mt steel plant, and Rs1,200 crore for a million tonne alumina plant in Andhra Pradesh. “We will repay these loans from the dividend inflows (from the operating companies),” he said. The promoters received Rs117 crore as dividend from JSW Steel after the company reported a Rs458.5 crore net profit for the fiscal year ended March. Lenders led by IDBI Bank Ltd have already sanctioned Rs1,500 crore for the cement plants, while a consortium of banks led by ICICI Bank Ltd, India’s largest private sector bank, has agreed to lend Rs3,000 crore for the alumina plant. Sajjan’s younger brother Naveen Jindal’s plans are much bigger: $22.6 billion to build 30.5 mt steel plants and generate 9,200MW power across the country. JSW Energy Ltd, also a Sajjan Jindal firm, plans to build a 1,080MW coal-based power plant in Barmer in Rajasthan and a 1,200MW plant in Ratnagiri over the next few years, with a total investment of Rs11,500 crore. JSW Energy will raise Rs3,000 crore by selling a part of its promoters’ stake, for which the company has already filed a public issue prospectus with the Securities and Exchange Board of India. The group, founded by late parliamentarian O.P. Jindal, has four main companies managed by sons Prithviraj (Jindal Saw Ltd), Sajjan (JSW Steel), Naveen (Jindal Steel and Power Ltd) and Ratan (Jindal Stainless Ltd), with cross ownership through the 30 holding companies. Naveen Jindal, also a parliamentarian, sits on the board of younger brother Ratan Jindal’s firm, and vice versa. Holding companies, by law, are optional and were created for a number of reasons, said Anil Harish, legal counsel and managing partner at DM Harish and Co., a law firm that advises clients on corporate law and tax. Holding companies, he said, allowed family members to have better control, easier succession, and to save on wealth and estate tax. Until 1993, individuals who owned shares had to pay 8% wealth tax on the value of the stock on the last day of a fiscal year. Inheritors of wealth also had to pay 65% estate duty till 16 March 1985 on the value of promoters’ assets. The promoters themselves were exempt from this tax because they held shares through a holding company rather than in their individual capacity. The holding company concept is relevant in the Indian context, said C.G. Srividya, partner at Grant Thornton India, a global consulting firm that advises companies on mergers and acquisitions, and tax. These companies can raise debt more easily, as international investors prefer to invest in these companies in their own jurisdiction, she added, referring to the fact that some holding companies such as Anil Agarwal’s Vedanta Resources Plc are incorporated abroad. Sajjan Jindal, the second son, has two listed companies—JSW Steel, which owns the 8 mt Jindal Vijayanagar Steel Ltd on the outskirts of Bangalore and cold rolling and galvanized mills in Tarapur and Vasind in Maharashtra, and Jindal South West Holdings Ltd, an investment company with interests in other companies of the O.P. Jindal group. Following a 2005 merger between Jindal Iron and Steel Co. Ltd (Jisco) and Jindal Vijayanagar Steel, Jisco’s investments were hived off into a separate company, JSW Steel. A single holding company would allow the family members to pool their shares to have a unified base from which to control the operating company, Harish said. JSW, the largest company of the group by sales, had a market capitalization of Rs15,108 crore at the end of Friday trading on the Bombay Stock Exchange, while the market value of Jindal Steel and Power was Rs55,590 crore. Jindal Saw was valued at Rs3,738 crore and Jindal Stainless at Rs1,369 crore. Source: Home - Livemint.com | 25 Sep 2009 | 11:52 am Ignore Sterlite’s new offer for Asarco: bankruptcy judgeCorpus Christi, Texas: Sterlite Industries (India) Ltd’s latest offer to buy bankrupt copper producer Asarco Llc should be ignored by the court that will make a final decision on the sale, a bankruptcy judge said. Instead, Grupo Mexico SAB should be allowed to regain control of Asarco, four years after putting it into bankruptcy, US bankruptcy judge Richard Schmidt in Corpus Christi, Texas, said in a recommendation to the higher court. Schmidt rejected Sterlite’s request that its bid, made after he made his 31 August decision, should be considered by the federal judge who will decide which company gets Asarco. Letting Sterlite revise its bid would be fundamentally unfair, Schmidt said. Grupo Mexico and Sterlite each have promised to spend at least $2.5 billion (Rs12,000 crore) to guarantee that Asarco’s creditors are repaid in full. The final decision about which company gets Asarco will be made by US district judge Andrew Hanen in Brownsville, Texas. Grupo Mexico lost control of Tucson, Arizona-based Asarco after putting it under court protection in 2005. Last year, Hanen ruled that Grupo Mexico-intentionally harmed Asarco before putting it into bankruptcy by stripping the company’s stake in Southern Copper Corp. Hanen ordered Grupo Mexico’s main US holding company to return the Southern Copper stake and all related dividends, a judgement potentially worth at least $8 billion. Grupo Mexico has appealed that ruling. Who gets the money from that judgement should Grupo Mexico’s appeal fail has been one of the key questions in the bankruptcy case. Schmidt also said his recommendation in favour of Grupo Mexico would remain unchanged, even if Hanen agrees to consider Sterlite’s revised bid. Grupo Mexico’s plan remains the superior plan, Schmidt said in his recommendation. In its new proposal, Sterlite said it had increased the amount of cash that creditors would recover and agreed to cap the total it would try to collect from Grupo Mexico from the Southern Copper judgement. The case is In re Asarco Llc, 05-21207, US bankruptcy court, southern district of Texas (Corpus Christi). Source: Home - Livemint.com | 25 Sep 2009 | 11:38 am Ignore Sterlite’s new offer for Asarco: bankruptcy judgeCorpus Christi, Texas: Sterlite Industries (India) Ltd’s latest offer to buy bankrupt copper producer Asarco Llc should be ignored by the court that will make a final decision on the sale, a bankruptcy judge said. Instead, Grupo Mexico SAB should be allowed to regain control of Asarco, four years after putting it into bankruptcy, US bankruptcy judge Richard Schmidt in Corpus Christi, Texas, said in a recommendation to the higher court. Schmidt rejected Sterlite’s request that its bid, made after he made his 31 August decision, should be considered by the federal judge who will decide which company gets Asarco. Letting Sterlite revise its bid would be fundamentally unfair, Schmidt said. Grupo Mexico and Sterlite each have promised to spend at least $2.5 billion (Rs12,000 crore) to guarantee that Asarco’s creditors are repaid in full. The final decision about which company gets Asarco will be made by US district judge Andrew Hanen in Brownsville, Texas. Grupo Mexico lost control of Tucson, Arizona-based Asarco after putting it under court protection in 2005. Last year, Hanen ruled that Grupo Mexico-intentionally harmed Asarco before putting it into bankruptcy by stripping the company’s stake in Southern Copper Corp. Hanen ordered Grupo Mexico’s main US holding company to return the Southern Copper stake and all related dividends, a judgement potentially worth at least $8 billion. Grupo Mexico has appealed that ruling. Who gets the money from that judgement should Grupo Mexico’s appeal fail has been one of the key questions in the bankruptcy case. Schmidt also said his recommendation in favour of Grupo Mexico would remain unchanged, even if Hanen agrees to consider Sterlite’s revised bid. Grupo Mexico’s plan remains the superior plan, Schmidt said in his recommendation. In its new proposal, Sterlite said it had increased the amount of cash that creditors would recover and agreed to cap the total it would try to collect from Grupo Mexico from the Southern Copper judgement. The case is In re Asarco Llc, 05-21207, US bankruptcy court, southern district of Texas (Corpus Christi). Source: World Business - Livemint.com | 25 Sep 2009 | 11:38 am Rupee advances for third week on continued fund inflowsMumbai: The rupee rose for a third week as overseas funds added to their holdings of local assets to benefit from growth in Asia’s third largest economy. The rupee on Friday reached the highest level in little more than a month after the Securities and Exchange Board of India (Sebi) showed global funds bought more equities than they sold for a 13th straight day, the longest streak since 4 August.  High on optimism: Rupee reached its highest level in about a month after data showed global funds bought more equities than they sold. Rajkumar / Mint. “The movement of the equity markets is suggesting that confidence of investors is getting reinforced,” said Sanjay Arya, treasurer at state-owned Bank of Maharashtra in Mumbai. “The rupee is riding on that sentiment and I expect the trend to continue.” The currency rose 0.3% this week to 47.98 per dollar at close in Mumbai, according to data compiled by Bloomberg. Markets are closed on 28 September owing to Dusshera. Net stock purchases by global money managers this year exceeded $11 billion, according to data provided by Sebi. The rupee still slipped on Friday on speculation importers increased purchases of foreign currency to settle month-end bills. The dollar gained on speculation Group of Twenty leaders will agree to tighten rules on investment, boosting demand for safe-haven currencies. US treasury secretary Timothy Geithner said on Thursday the US has a responsibility to ensure the dollar stays the world’s reserve currency. “The dollar is in favour for fundamental reasons,” said Sudarshan Bhatt, chief currency trader at state-owned Corporation Bank in Mumbai. “As far as the local market is concerned, dollar demand has strengthened to meet month-end payments and because of the holidays next week.” Offshore contracts indicate bets the rupee will trade at 48.07 a dollar in a month, compared with expectations of a rate 48.21 a week ago. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Non-deliverable contracts are settled in dollars rather than the local currency. Source: Home - Livemint.com | 25 Sep 2009 | 11:32 am Exclusive: MTN may circumvent open offer in BhartiIn what appears to be the final contours of the mega merger between South African telecom major MTN and Indian giant Bharti, CNBCTV18 reports, quoting sources, that the deal structure is likely to be based on EV/EBITDA valuations.Source: Moneycontrol Top Headlines | 25 Sep 2009 | 11:12 am Now, NTPC may take up marketing margin issue with RILThe latest battle in the gas war seems to be over marketing margins.Source: Moneycontrol Top Headlines | 25 Sep 2009 | 11:10 am Comments that go anywhereNew Delhi: Google has just announced a new browser plugin called ‘Sidewiki‘, which lets you add information to any web page on the Internet. Install it to your browser of choice, and a little sidebar can be summoned on any page. Adding your own contribution is simple. Type into the box, and there. It’s gone live. It’s a potentially useful tool: additional information is a click away, potential shortcomings and inaccuracies can be pointed out quickly, and umm…puzzles and riddles can be solved collaboratively. But this is the Internet we’re talking about. Expect plot spoilers on pages about movies, fanboyism on pages about video games, and the web equivalent of bathroom wall graffiti in the first few days. For a quick demo of the Sidewiki service see the latest episode of PlayStream, our weekly tech video show. Source: Tech News - Livemint.com | 25 Sep 2009 | 11:08 am Current order book at Rs 1,000 cr: Diamond CablesThe company\'s current order book position stands at Rs 1,000, says SN Bhatnagar, Chairman and Managing Director of Diamond Cables.Source: Moneycontrol Top Headlines | 25 Sep 2009 | 10:37 am Granules India\'s revenue to go up to Rs 450cr by yearendRevenues of Granules India Ltd, which had signed a USD 50 million contact with an MNC last year, are expected to go up to Rs 450 crore expect by the end of this year, says its Chief Marketing Officer Harsha Thigurupati. \"Most of this will be fueled by API but more so because of increased finished dosages sale,\" he adds.Source: Moneycontrol Top Headlines | 25 Sep 2009 | 10:36 am Mid-course correction for Chandrayaan-2: IsroBangalore: India’s second rocket to the moon, scheduled for 2013, will land two remote-controlled vehicles to collect soil to test for further evidence of water and elements such as helium-3, a clean nuclear fuel.  Upbeat mood: Isro chairman G. Madhavan Nair (centre) with directors J.M. Goswami (right) and T.K. Alex at a press conference on Chandrayaan-1 discovery at Antariksh Bhavan in Bangalore on Friday. Shailendra Bhojak / PTI. India’s first lunar mission, Chadrayaan-1, found the strongest evidence yet that there might be water on the moon. The instruments on the rovers from Chandrayaan-2 will mine the soil, analyse them and send data back to earth. Isro will spend Rs425 crore on the second mission that will be launched by its geosynchronous satellite launch vehicle. Of the two rovers planned, the larger one will be supplied by Russia’s federal space agency. Isro would develop the smaller rover estimated to weigh 15kg. It will also create a lab in Bangalore that would simulate the moon’s terrain to test the vehicle. “The thinking is to have more instruments on the rovers because of the water finding. The orbiter can be smaller,” said M. Annadurai, director of the Chandrayaan programme at Isro. Around 20 teams from India have submitted proposals for the second lunar mission, he said. “For the first time in the history of space research, water is confirmed on the moon. It is acknowledged the world over that this is a real discovery and a path-breaking event for the Indian space agency,” Nair told reporters. In one of the three papers published in the latest edition of the journal Science on Thursday, researchers said they analysed light waves detected by instruments made by National Aeronautics and Space Administration of the US on board the Indian satellite and two other US probes that suggest the existence of water on the moon’s surface. While India’s public funded agency plans to land two vehicles on the moon, there is global competition to kindle private interest in moon exploration. Twenty privately funded teams are pitted against each other to bag the Google Lunar X prize competition, which entails them to safely land a robot on the surface of the moon, travel 500m over the surface and send images and data back to the earth. The winner of the contest to be completed by 2012 will get $20 million in cash. AFP contributed to this story. Source: Tech News - Livemint.com | 25 Sep 2009 | 10:15 am DLF calls upon govt to keep interest rates in checkThe property business will be impacted if interest rates start rising, believes DLF. Group Executive Director Rajeev Talwar says the government will need to keep the real estate sector in mind if interest rates rose.Source: Moneycontrol Top Headlines | 25 Sep 2009 | 10:00 am Swine flu vaccine ready, enters EuropeGlobal pharma major Novartis Friday announced it is ready with a swine flu vaccine and has started first deliveries to governments in Europe, giving hopes to people in many parts of the world.Source: IndiaeNews.com: Business News | 25 Sep 2009 | 10:00 am Air India pilots threaten to go on strikeExecutive pilots of state-owned Air India are planning to go on strike from Saturday, to protest the productivity-linked incentives cut.Source: Daily News & Analysis: Money News | 25 Sep 2009 | 9:42 am Chola DBS sells mutual fund business to L and amp;T FinanceCity-based Cholamandalam DBS Finance, a non-banking finance company, has decided sell its mutual fund subsidiary Cholamandalam Asset Management to L and amp;T Finance for Rs.45 crore.Source: IndiaeNews.com: Business News | 25 Sep 2009 | 9:32 am Nine more cities to have bus rapid transit systemThe government will build bus rapid transit (BRT) systems in nine more cities at an investment of Rs.4,500 crore, Urban Development Minister Jaipal Reddy said here Friday.Source: IndiaeNews.com: Business News | 25 Sep 2009 | 9:31 am PM's task force reviews problems of small industriesThe prime minister's task force on micro, small and medium enterprises (MSMEs) held its first meeting here Friday to discuss the problems of the sector and formed seven sub-groups to suggest remedial measures.Source: IndiaeNews.com: Business News | 25 Sep 2009 | 9:31 am Cipla raises Rs 676cr via QIP to fund capexThe QIP proceeds would be primarily used for capital expenditure (Capex), says Amar Lulla, MD, Cipla.Source: Moneycontrol Top Headlines | 25 Sep 2009 | 9:30 am High commodity prices to impact Chemplast Sanmar\'s marginsHigher commodity prices would impact Chemplast Sanmar\'s margins, said its MD PS Jayaraman. Further, he said, PVC was in short supply in India whereas the demand remained robust, adding the interest cost on funds for commissioning of several projects was high.Source: Moneycontrol Top Headlines | 25 Sep 2009 | 9:08 am Nifty ends lower ahead of long weekend - Economic Times
Source: Business - Google News | 25 Sep 2009 | 6:23 am Twitter close to $100 mn funding: WSJSan Francisco: Twitter is close to securing as much as $100 million of new capital from mutual fund giant T. Rowe Price, private equity firm Insight Venture Partners and five other investors, the Wall Street Journal reported on Thursday. The funding will value the fast-growing microblogging site at about $1 billion. Other investors include existing Twitter backers Spark Capital and Institutional Venture Partners, the Journal said, citing people familiar with the deal. If it goes ahead, the $100 million investment—twice as much as Twitter had been expected to get in its latest round of fundraising—would underscore investors’ mounting interest in the 2-year-old company, which hosts short, stream-of-consciousness text messages on its website. The participation of T. Rowe Price, a mutual fund known more for investments in public companies than in start-ups, stirred speculation that Twitter could be moving toward an eventual public offering or acquisition. “You only see this type of behavior typically when a fund is seeking to get a position before an IPO,” said Brigantine Advisors analyst Colin Gillis. Twitter has become an Internet sensation in its 3-year history, with worldwide visitors to its site hitting 44.5 million in June, up 15-fold from a year earlier, according to comScore data. But the San Francisco-based company has only just begun to focus on making money from its free service. Twitter executives have cited premium features and advertising as key initiatives to make money, though co-founder Biz Stone told Reuters this week that Twitter would not take advertising this year, despite widespread speculation that it would. Value of independence Sanford Bernstein analyst Jeff Lindsay said there was an expectation that Twitter will eventually be acquired, citing Google Inc, Yahoo Inc and Time Warner Inc’s AOL as potential buyers. “Anybody who is taking a position like that is taking a bet that either they (Twitter) find a business model—which they haven’t yet—or more likely that someone with a lot of money burning a hole in their pocket will buy them,” Lindsay said. Twitter did not return calls for comment. The company has said in the past that it intends to remain independent. Its past investors included Benchmark Capital and Union Square Ventures, Charles River Ventures and Bezos Expeditions, which manages Amazon.com chief Jeff Bezos’ personal investments, according to ThomsonReuters data. A February round of funding, led by Institutional Venture Partners and Benchmark Capital, had valued Twitter at about $250 million. The pair jointly invested $35 million in Twitter during that round. Source: Tech News - Livemint.com | 25 Sep 2009 | 4:42 am HSBC CEO moves to Hong Kong, focus shifts ‘home’London / Hong Kong: HSBC Holdings is moving its chief executive to Hong Kong as Europe’s biggest bank increasingly focuses on Asia. HSBC said on Friday it will stay based in London for tax purposes and had no plans to move, and Britain’s Financial Services Authority will remain its lead regulator. But CEO Michael Geoghegan will move to Hong Kong from February, swinging HSBC’s power base back to its place of birth 144 years ago. “It’s about building this business in Asia. We know the business is coming our way and we intend to be here to take it,” Geoghegan told reporters on a conference call. “West is coming east and we want to be at the gate into China and be in China itself, and the most logical place to work on that strategy is Hong Kong,” he added. HSBC wants to be one of the first overseas companies to list its shares in Shanghai, and chairman Stephen Green said it remains in talks with the authorities there to do so. He declined to say when it is likely to happen. The bank will look to raise between $3 billion and $7 billion as part of a Shanghai listing, probably next year, people familiar with the matter have told Reuters. HSBC announced several other changes in its management structure. Geoghegan will also become chairman of The Hongkong and Shanghai Banking Corp. from February, replacing Vincent Cheung. Sandy Flockhart will become chairman of personal and commercial banking, and Stuart Gulliver, head of the investment banking business, will become chairman of Europe and the Middle East. HSBC was formed as the Hongkong and Shanghai Banking Corporation in Hong Kong in 1865 and opened a branch in Shanghai in April the same year. It moved to London in 1993 as a condition of the previous year’s takeover of Midland Bank, in a move seen as a major blow to Hong Kong. But the bank is revered in Hong Kong — it is known as “big elephant” — and makes a quarter of its normalised profits and has 30 percent of its shareholders there. By 0915 GMT HSBC’s London listed shares were up 0.9% at 710 pence, valuing the bank at just over $200 billion. Source: World Business - Livemint.com | 25 Sep 2009 | 4:10 am Toyota eyes China with new affordable ‘family car’ Tokyo: Toyota Motor Corp. is counting on growth in China, and plans to introduce a cheap ‘family car’ there that will likely sell in big numbers, an executive said Friday. “But Toyota has no ambitions to become No. 1 in the Chinese market,” said executive vice-president Yukitoshi Funo, who oversees emerging markets for the Japanese automaker. “In big markets like China, the top maker should be domestic,” he said. He had similar feelings about the US market, where he said that General Motors Co. and Ford Motor Co. should retain top market shares. Funo did not explain this belief expect to note Renault SA’s dominance in France and Volkswagen AG in Germany. Toyota, the world’s biggest automaker in global vehicle sales, holds top market share in Japan. Volkswagen and General Motors vie for top market share in China but Funo said that Chinese automakers are likely to get stronger and emerge No. 1. Funo stressed the sales potential of an entry-level car in China, comparing that to how Japanese had snatched up Toyota Corolla subcompacts during the nation’s decades of modernization. He did not give details of the planned affordable model, but said that it will be more expensive than offerings from Chinese manufacturers. Toyota also hopes to increase its dealers in China, Funo told reporters at Toyota’s Tokyo office. Toyota, which makes the Prius hybrid and Lexus luxury models, now has about 550 dealer shops in China, including Lexus showrooms. Like other major automakers, Toyota has been hit by the slowdown in mature markets such as the US, Europe and Japan, and it is expecting to lose money for the fiscal year ending March 2010. Growth in China is one area Toyota where can hope to offset losses. “Toyota has also benefited from government ecological incentives, which have boosted hybrid sales. But they can run out of steam when the perks end,” Funo said. “Sales can be artificially inflated by scrap incentives,” he said. Source: World Business - Livemint.com | 25 Sep 2009 | 3:16 am Euro zone private loans fall for second monthFrankfurt: Bank lending to euro-zone homes and businesses fell in August for the second month running, taking annual lending growth to a virtual standstill. The European Central Bank said on Friday private sector loans contracted on a monthly basis and annual growth hit a new record low of just 0.1% in August, from a revised 0.7% in July. The slowdown was sharper than the 0.3% annual growth economists had expected, although in one encouraging sign, business loans grew slightly on a month-by-month basis. Speaking in Luxembourg, ECB governing council Yves Mersch said he saw no credit crunch in the 16-nation region, where lending has been weak for months despite massive injections of central bank funding. “We can’t see a credit crunch, but we can’t rule it out altogether either,” he told a banking conference in Luxembourg. Economists agreed. “We think that this weakness is mainly driven by the reluctance of companies to borrow to invest, given that profit margins remain under pressure, said Fortis Bank economist Nick Kounis. “Overall, there is still little evidence of a credit crunch developing in the euro zone, although the real test will come when companies start to require significant funds for capital spending.” Annual growth in loans to firms dropped to 0.7%, from 1.6% in July, and remained negative for households, the ECB data showed. Narrow money indicator M1, which many see as an economic growth indicator, accelerated to an annual pace of 13.6% in August, up from 12.1% July and the fastest since October 1999, adding to hopes that the worst of the recession is past. Backing this view, consumer confidence in French and Germany—the region’s two biggest economies—rose. Germany’s forward-looking GfK indicator hit a 16-month high in October. “It’s a good sign that the consumer climate has improved again. But I think we need to be careful. The worst isn’t behind us on the job market yet, so there could be setbacks,” said Juergen Michels at Citigroup. “But it’s good that the mood has improved. The desire to spend should boost consumption despite the muted outlook on incomes.” The ECB has lent banks massive amounts of cheap funds in recent months and urged them to pass the money on to customers, although policymakers have said weak economic growth is also curbing demand for debt. The ECB figures also showed annual growth of M3 money supply—a broad measure of money available to spend—slowed to 2.5% from 3.0% in July, below the 2.7% growth expected by economists. Source: World Business - Livemint.com | 25 Sep 2009 | 2:56 am
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