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Abbott acquires Solvays pharma biz for $ 6.6bnAbbott has acquired Solvay\'s pharmaceutical business and the deal is said to be valued at USD 6.6 billion. Commenting on the acquisition Roland Kaut, Executive VP, Solvay Pharma said there has been no clarity about Abbotts intentions with the pharmaceutical arm so far.Source: Moneycontrol Top Headlines | 30 Sep 2009 | 9:26 am Oil India to focus on exploration and production bizOil India\'s CMD NM Borah, said in a press address that the company will focus on exploration and production (EP). We will continue to focus on that and we have a very detailed work out plan for accelerating our exploration and development and production related issues but within the company.Source: Moneycontrol Top Headlines | 30 Sep 2009 | 7:58 am Retailers gear up for bumper festive seasonFestival season is in full swing. Retailers and consumer durable makers are betting big on the season.Source: Moneycontrol Top Headlines | 30 Sep 2009 | 6:19 am Govt may look at Power Grid FPO in FY11The government of India may look at divesting stake in Power Grid via a followon public offer in fiscal year 2011, CMD SK Chaturvedi told CNBCTV18.Source: Moneycontrol Top Headlines | 30 Sep 2009 | 5:58 am Can\'t comment on MM stake buy plan: Swaraj EnginesBishwambhar Mishra said that engines business growth is at 31%. \"After the takeover by MM the company has increased its volume, revenue and profit margins.\"Source: Moneycontrol Top Headlines | 30 Sep 2009 | 5:28 am TCS bags multimilliondollar deal with Singapore ministryTata Consultancy Services (TCS) has signed a multimillion dollar deal with Singapores Peoples Association, a statutory board under the Ministry of Community Development, Youth Sports. TCS will provide annual application management services for two years to the association.Source: Moneycontrol Top Headlines | 30 Sep 2009 | 5:28 am Air India pilots call off stirPilots of national carrier Air India have called off their strike after five days and will start work with immediate effect. The pilots have agreed to join work after the Chairman and Managing Director (CMD) Arvind Jadhav reassured them that their incentive would be paid.Source: Moneycontrol Top Headlines | 30 Sep 2009 | 4:31 am India's Tata Tele to use BSNL's mobile towers - Reuters India
Source: Business - Google News | 30 Sep 2009 | 4:21 am Oil India ends day 1 at 8% premium - Moneycontrol.com
Source: Business - Google News | 30 Sep 2009 | 4:20 am Sensex ends over 17000 after 16 mths; Bankex up 4% - Moneycontrol.com
Source: Business - Google News | 30 Sep 2009 | 4:16 am Sensex provisionally ends up 1.5 pct, above 17,000MUMBAI (Reuters) - The BSE Sensex provisionally closed up 1.5 percent on Wednesday, ending above 17,000 points for the first time since May 2008 as investors bet on strong quarterly earnings.Source: Reuters: Money News | 30 Sep 2009 | 4:12 am Join duty now or face action: Air India tells pilots - Economic Times
Source: Business - Google News | 30 Sep 2009 | 4:09 am Sensex ends above 17,000A key index of Indian equities markets Wednesday ended 256 points up after crossing the 17,000-mark for the first time in 16 months.Source: IndiaeNews.com: Business News | 30 Sep 2009 | 4:00 am HCC to partner UK's AMEC for nuclear plant services - Reuters India
Source: Business - Google News | 30 Sep 2009 | 3:57 am FMPs back in vogue as returns seen as attractiveNEW DELHI (Reuters) - Money managers in India are scrambling to launch fixed maturity plans (FMPs) on hopes the prospect of better returns than liquid funds will help revive interest in one of the most popular fund categories of 2008.Source: Reuters: Money News | 30 Sep 2009 | 3:55 am BhartiMTN D(eal) day today: A chronology of events so farIts the last day for BhartiMTN exclusive talks and the suspense continues over the deal. CNBCTV18s Siddharth Zarabi takes us through the chronology of events so far and provides an analysis on what could potentially happen today.Source: Moneycontrol Top Headlines | 30 Sep 2009 | 3:52 am INTERVIEW - MphasiS: pricing pressure unlikely to easeBANGALORE (Reuters) - MphasiS is winning large outsourcing deals due to its association with Hewlett-Packard Co but pricing pressure is unlikely to ease in the near term, top officials said on Wednesday.Source: Reuters: Money News | 30 Sep 2009 | 3:52 am ABN AMRO files to split off RBS-owned assetsAmsterdam: Nationalised Dutch bank ABN AMRO said on Wednesday it had filed paperwork to legally separate the units owned by the state from those owned by Royal Bank of Scotland after a 2007 takeover. ABN AMRO said it and shareholders had plans in place to ensure that after the split each bank “is adequately capitalized and has a sound liquidity position”. ABN said it currently exceeds the Tier I capital ratio minimum of 9 percent set for it by the Dutch central bank. In a report issued this week on bank stress tests, the finance ministry said it could not guarantee that ABN AMRO and the also nationalised Fortis Bank Nederland would not need more state aid. The government has also warned in the past that the RBS split could leave ABN with a capital shortfall. An ABN AMRO spokesman was not immediately available to comment. A group that included RBS, Fortis and Santander bought ABN AMRO Group in 2007 to split it between them. When the Dutch government nationalised Fortis’s local operations in October 2008, what it took control of included businesses that legally belonged to RBS. The paperwork filed Wednesday essentially lets the government split the existing ABN AMRO Bank NV into two. The existing unit will be renamed Royal Bank of Scotland NV and the separated assets will revert to ABN AMRO Bank. Source: World Business - Livemint.com | 30 Sep 2009 | 3:49 am ABN AMRO files to split off RBS-owned assetsAmsterdam: Nationalised Dutch bank ABN AMRO said on Wednesday it had filed paperwork to legally separate the units owned by the state from those owned by Royal Bank of Scotland after a 2007 takeover. ABN AMRO said it and shareholders had plans in place to ensure that after the split each bank “is adequately capitalized and has a sound liquidity position”. ABN said it currently exceeds the Tier I capital ratio minimum of 9 percent set for it by the Dutch central bank. In a report issued this week on bank stress tests, the finance ministry said it could not guarantee that ABN AMRO and the also nationalised Fortis Bank Nederland would not need more state aid. The government has also warned in the past that the RBS split could leave ABN with a capital shortfall. An ABN AMRO spokesman was not immediately available to comment. A group that included RBS, Fortis and Santander bought ABN AMRO Group in 2007 to split it between them. When the Dutch government nationalised Fortis’s local operations in October 2008, what it took control of included businesses that legally belonged to RBS. The paperwork filed Wednesday essentially lets the government split the existing ABN AMRO Bank NV into two. The existing unit will be renamed Royal Bank of Scotland NV and the separated assets will revert to ABN AMRO Bank. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 3:49 am Bharti Airtel gains over 1 per cent in afternoon trade - Economic Times
Source: Business - Google News | 30 Sep 2009 | 3:43 am Audio story | Air India: flight of fancy?New Delhi: The agitating executive pilots of Air India on Wednesday called off their four-day-old strike, a day after government gave an assurance that status quo will prevail on cost cutting measures relating to productivity- linked incentive (PLI). Mint correspondent, P.R. Sanjai gives a detailed analysis of the strike, the decision of Air India’s management to please the executive pilots and how the airline will now have to resort to a turnaround policy for effective cost-cutting measures. Government had said that the agitation had cost a loss of over Rs100 crore. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 3:42 am Air India pilots call strike off, services restoredNEW DELHI (Reuters) - Pilots working for ailing state-run carrier Air India on Wednesday called off a strike that saw scores of flights cancelled, bookings suspended and hundreds of passengers stranded over the last four days.Source: Reuters: Money News | 30 Sep 2009 | 3:37 am Join duty now or face action: Air India tells pilotsAir India Wednesday said a section of pilots had not reported for work even after their strike was called off and threatened 'severe action' against them.Source: IndiaeNews.com: Business News | 30 Sep 2009 | 3:30 am Sensex extends gains, ruling 1.38 percent upA key index of Indian equities markets extended its gains Wednesday and was ruling 1.38 percent higher than its previous close in the afternoon.Source: IndiaeNews.com: Business News | 30 Sep 2009 | 3:30 am 'Delhi Metro needs to address problems before expansion'The Delhi Metro, which is rapidly becoming the lifeline of the capital, is set to expand from 75 km to 200 km by opening six new lines by 2010. But commuters and experts say the rail network needs to first address its present problems before covering larger areas of this sprawling city of 17 million people.Source: IndiaeNews.com: Business News | 30 Sep 2009 | 3:30 am BoM slashes home loans interest ratesMumbai: Bank of Maharashtra, on Wednesday said it would offer reduced interest rates for housing loans sanctioned during the festival period under Mahabank Platinum Housing Loan Scheme. The new rates will be applicable for loans sanctioned between 16 September and 31 December, a press release issued here said. For loans upto Rs30,00,000, the new interest rate for the first two-years will be 8%, for the third year 8.5%, for the fourth year 9.5% and for the fifth year 9.75%. The average interest rate for the first five-year period will be 8.75%. The rate will be reset at the end of every fifth year, the release said. For loans above Rs30,00,000 the interest rate for the first two-years will be 8.25%, for the third year 9% and for the fourth and fifth year 9.75%. Average interest rate for the first five-year period will be 9%. The rate will be reset at the end of every fifth year, the release said. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 3:28 am Dabhol shifts to local gas from LNG importsNEW DELHI (Reuters) - India's biggest power plant, built by U.S. energy firm Enron Corp that collapsed in 2001, on Wednesday switched to using local gas from costlier imported liquefied natural gas (LNG), a senior company official said.Source: Reuters: Money News | 30 Sep 2009 | 3:17 am Wal-Mart warns of lethargic economic recoveryKuala Lumpur: The chairman of Wal-Mart Stores Inc. warned Wednesday the global economic recovery will likely be lethargic, even as the retailing behemoth sees great growth potential in China and India. “The world recovery is going to be led by Asia although it’s going to be very challenging. I think this recovery is going to be a slow one,” Robson Walton told a global CEO business conference here. Walton said “sales have been tough” for Wal-Mart, the world’s biggest retailer, even though it was benefiting from the economic downturn as more people shop at discounters for bargains including over-the-counter drugs and eat-at-home food. The Wal Mart chief’s comments echoed remarks Tuesday in Singapore by General Electric Co. chief executive Jeffrey Immelt. He warned that high unemployment and slower lending will drag on US economic growth, likely resulting in the weakest recovery in decades. Walton said international operations accounted for one-third of Wal-Mart’s global sales, and the proportion was expected to increase as the group focuses on larger markets in Asia. “China is a big opportunity for us. We are just getting started in India, where there’s great opportunity for us,” he said. “There is change and opportunity in the crisis. If we want to be successful, we got to change. We are working very hard to get our cost down and developing high-efficiency smaller stores to go into urban areas,” he said. He didn’t elaborate and couldn’t be reached for further comments. Wal-Mart has more than 250 stores in China but only ventured into India in May to tap the country’s $430 billion retail market. Bharti Wal-Mart Private Ltd., a joint venture between India’s Bharti Enterprises and Wal-Mart, opened its first wholesale outlet called “Best Price Modern Wholesale” in Amritsar in India’s northern state of Punjab The company has plans to invest $100 million over the next three years to open 10 to 15 more wholesale outlets, which would employ 5,000 people across India. But for now, it can only sell its 6,000 food and nonfood items to other businesses because Indian law prohibits foreign companies from selling direct to customers in multi-brand retail outlets to protect smaller domestic retailers. Wal-Mart has benefited from shoppers focusing on necessities during the recession and it has drawn more affluent shoppers away from rivals with its new focus on better brands, better service and cleaner stores. The chain has tightened its inventory controls and improved its earnings in the second quarter. However, the key barometer of same-stores sales in the US — or sales at stores open at least a year — slipped 1.2% during the period — a worrisome confirmation of broad weakness in consumer spending. It has said the US economy will remain challenging in coming months and force shoppers to keep seeking low prices and small packages. Source: Home - Livemint.com | 30 Sep 2009 | 3:03 am Wal-Mart warns of lethargic economic recoveryKuala Lumpur: The chairman of Wal-Mart Stores Inc. warned Wednesday the global economic recovery will likely be lethargic, even as the retailing behemoth sees great growth potential in China and India. “The world recovery is going to be led by Asia although it’s going to be very challenging. I think this recovery is going to be a slow one,” Robson Walton told a global CEO business conference here. Walton said “sales have been tough” for Wal-Mart, the world’s biggest retailer, even though it was benefiting from the economic downturn as more people shop at discounters for bargains including over-the-counter drugs and eat-at-home food. The Wal Mart chief’s comments echoed remarks Tuesday in Singapore by General Electric Co. chief executive Jeffrey Immelt. He warned that high unemployment and slower lending will drag on US economic growth, likely resulting in the weakest recovery in decades. Walton said international operations accounted for one-third of Wal-Mart’s global sales, and the proportion was expected to increase as the group focuses on larger markets in Asia. “China is a big opportunity for us. We are just getting started in India, where there’s great opportunity for us,” he said. “There is change and opportunity in the crisis. If we want to be successful, we got to change. We are working very hard to get our cost down and developing high-efficiency smaller stores to go into urban areas,” he said. He didn’t elaborate and couldn’t be reached for further comments. Wal-Mart has more than 250 stores in China but only ventured into India in May to tap the country’s $430 billion retail market. Bharti Wal-Mart Private Ltd., a joint venture between India’s Bharti Enterprises and Wal-Mart, opened its first wholesale outlet called “Best Price Modern Wholesale” in Amritsar in India’s northern state of Punjab The company has plans to invest $100 million over the next three years to open 10 to 15 more wholesale outlets, which would employ 5,000 people across India. But for now, it can only sell its 6,000 food and nonfood items to other businesses because Indian law prohibits foreign companies from selling direct to customers in multi-brand retail outlets to protect smaller domestic retailers. Wal-Mart has benefited from shoppers focusing on necessities during the recession and it has drawn more affluent shoppers away from rivals with its new focus on better brands, better service and cleaner stores. The chain has tightened its inventory controls and improved its earnings in the second quarter. However, the key barometer of same-stores sales in the US — or sales at stores open at least a year — slipped 1.2% during the period — a worrisome confirmation of broad weakness in consumer spending. It has said the US economy will remain challenging in coming months and force shoppers to keep seeking low prices and small packages. Source: World Business - Livemint.com | 30 Sep 2009 | 3:03 am TCS bags deal from Singapore govt body - NDTV.com
Source: Business - Google News | 30 Sep 2009 | 2:56 am Home, auto loan rates cut on festival demand hopesSeveral banks and housing finance companies have announced cuts in home and auto loan interest rates to capitalise on the rise in demand during the festival season.Source: Moneycontrol Top Headlines | 30 Sep 2009 | 2:48 am Dabhol shifts to local gas from LNG importsNew Delhi: The biggest power plant, in the country built by US energy firm Enron Corp that collapsed in 2001, on Wednesday switched to using local gas from costlier imported liquefied natural gas (LNG), a senior company official said. “From today we have started getting 4.5 mmscmd (million cubic metres a day) gas from Reliance,” said A.K. Ahuja, managing director of Ratnagiri Gas and Power Pvt Ltd, which owns the facility at Dabhol in the western state of Maharashtra. The federal government has allocated Dabhol 5.67 mmscmd of gas, produced from Reliance Industries Ltd’s giant gas field in Krishna Godavari basin off the east coast. Ahuja said Reliance’s gas would cost about $6.2 per million British thermal units (mBtu) against $7.5/mBtu, it was paying for imported LNG. The plant, which initially used costly naphtha, shifted to LNG in 2007 when the government mandated Petronet to meet the plant’s gas requirements until September 2009. Ahuja said the plant should be fully commissioned by the end of March when it would need about 8.5 mmscmd gas. The facility is now operating at an annual rate of 950 MW. “Only three gas turbines are operating ... by end-March all six will be operational and we should be able to produce 1,950 MW,” he said. The power ministry has assured the company that more gas will be arranged for the full-scale operations, which will help narrow India’s electricity deficit, he said. India’s power shortfall is expected to widen to 12.6% in the current fiscal year ending in March from 11.9% last year. Ahuja said the LNG terminal near the plant will be commissioned by December. “We have to do silting and dredging,” he said. The terminal with an annual capacity of 5 million tonnes will initially run at 20-30% rate until a breakwater is built. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 2:48 am Gold futures almost steady on dollarMumbai: India’s gold trade remained quiet on Wednesday as most banks, the primary sellers of the yellow metal, were shut for half-year book closing, dealers said. “Traders are not keen on booking (gold) today as the rupee market is closed,” said a dealer with a private bank. Indian currency markets are closed on Wednesday for the half-year book closing for fiscal 2009/10. Trading resumes on Thursday. Gold is a dollar-denominated asset. Dealers say there has been a pick-up in physical off take this month, but down from last year, as traders continued to replenish stocks for festivals. “There is a little bit of demand because of festivals, but it is still 70% lower than last year,” said a senior executive of a large foreign bank, which supplies bullion to India. India, the world’s largest consumer, is in the midst of the festival and wedding season, with Diwali and Dhanteras due next month, which is expected to revive sagging gold sales. India’s gold imports in September were provisionally around 35-40 tonnes, up from August but down by more than a quarter from 54 tonnes a year ago, the head of the Bombay Bullion Association (BBA) said on Wednesday. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 2:45 am India, China top earners in global BPO marketThe global information technology and business process outsourcing market will end 2009 with total revenues of $373 billion, 14.4 per cent higher than the $326 billion recorded in 2008.Source: Moneycontrol Top Headlines | 30 Sep 2009 | 2:44 am IMF cuts global debt writedown estimate to $3.4 trlnISTANBUL (Reuters) - The International Monetary Fund on Wednesday lowered its estimate for global writedowns for banks and other financial institutions to roughly $3.4 trillion but warned that loan losses were set to rise as unemployment and associated delinquencies increase.Source: Reuters: Money News | 30 Sep 2009 | 2:42 am Larsen and Toubro to invest 500 million dollars to build nuclear ... - Sify
Source: Business - Google News | 30 Sep 2009 | 2:31 am Reva to roll out two new electric cars soonThe maker of India's sole battery-run car, Reva Electric Car Co., is setting up a second plant in the country's tech hub to roll out two new models next year for domestic and export markets, a top company official has said.Source: IndiaeNews.com: Business News | 30 Sep 2009 | 2:30 am Stock review: Redington India LtdIn October 2008, M/s Investcorp Gulf Opportunity Fund, a private equity fund had agreed to take 36% stake in Redington’s Middle East and Africa (MEA) business for $98 million. Out of this it has already received $65 million for 27.17% stake in MEA business. Some part of the money is expected to be used for acquisitions in Middle East, Turkey and Asia. However, as of now nothing has been decided and thus we await further details from the management regarding the same. As and when Redington announces the acquisition it would be positive as it would lead to increased revenues and profitability going forward. At the current market price of Rs263 the total market cap of Redington is $427million (1$ = Rs.48) as against MEA business valuation of $272 million, which contributes ~41% of total PAT of Redington Thus we see good value unlocking in long term for the shareholders of Redington. Valuation & Recommendation We maintain our earning estimates and expect Redington to report EPS of Rs23.1 for FY10E. At Rs.263, the stock trades at fair valuations of 1.8x book value, 11.4x earnings and 10.3x cash earnings based on FY10E. We continue to remain positive on the long-term growth prospects of the company as we feel that Redington is poised to handle a greater share of the business in supply chain solution space with its unique business model, proven execution capabilities and its presence in potential markets. However due to recent sharp run up in its stock price and limited upside potential of 5% from current levels, we recommend investors to look for buying opportunities at lower levels. Thus we are downgrading the stock of Redington from BUY to ACCUMULATE with unchanged price target of Rs275. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 2:23 am Patel asks Air India to reduce costs, debtsAfter its pilots called off their strike Wednesday, Civil Aviation Minister Praful Patel asked the cash-strapped national carrier to take steps to reduce its expenses and debts.Source: IndiaeNews.com: Business News | 30 Sep 2009 | 2:02 am A good old 'thorn' in India-Mongolia tiesIndia and Mongolia have joined hands to tap the potential of seabuckthorn, a plant better known here as Leh Berry that has high concentrations of vitamins A, B2 and C and is found in abundance in both countries.Source: IndiaeNews.com: Business News | 30 Sep 2009 | 2:00 am Tsunami smashes Pacific islands, over 100 feared deadSydney: A series of tsunamis smashed into the Pacific island nations of American and Western Samoa killing possibly more than 100 people, some washed out to sea, destroying villages and injuring hundreds, officials said on Wednesday. US President Barack Obama declared a major disaster in American Samoa, a US territory, and ordered federal aid to help recovery efforts, with a US C-130 military transport aircraft due to leave Honolulu for the tiny South Pacific islands. Television images showed homes ripped apart, cars submerged in the sea or lodged in trees and large fishing boats hurled ashore by the waves generated by a 8.0 magnitude quake southwest of American Samoa. Western Samoa disaster officials said at least 47 people were killed, but the toll may reach 100 as rescuers search for bodies buried under sand in flattened villages along the southern shore of the island of Upolu. Twenty villages on Upolu’s south side were reportedly destroyed, including Lepa, the home of Samoa’s prime minister. The area is also the main tourist area, and the waves destroyed some resorts. “Thankfully the alarm sounded on the radio and gave people time to climb to higher ground. But not everyone escaped,” said Prime Minister Tuilaepa Sailele Malielegaoi, adding two children en route to hospital for flu treatment were swept away. “Their car was just taken away. I’m so shocked, so saddened by all the loss,” he told reporters on a flight from Auckland, New Zealand to Apia. The Australian government said one Australian tourist was dead and six others missing. “It does look like there will be substantial loss of life in Samoa,” said Australia’s Aid Minister Bob McMullan. In neighbouring American Samoa at least 24 people were killed and 50 injured, American Samoa Governor Togiola Tulafono said from Hawaii, with the southern portion of the main Tutuila island “devastated”. The death toll there may also rise, said officials. Director of American Samoa’s homeland security Mike Sala said the waves that hit Pago Pago village were about 6 metres (20 feet) high. “Some buildings were completely demolished by the waves, you know, there’s no buildings anymore except the foundation,” Sala told Radio New Zealand. New Zealand said there were also serious concerns about the neighbouring island nation of Tonga after a 4-metre (13-foot) wave hit its northern coast. Tongan officials said they feared as many as 10 people had been killed. The two Samoas and Tonga have a combined population of around 400,000 people. Tsunamis reach Hawaii A Pacific-wide tsunami warning was issued after an 8.0 magnitude undersea quake off American Samoa, with small tsunamis reaching New Zealand, Hawaii and Japan. An Indian Ocean tsunami on 26 December, 2004 which killed about 230,000 people across 11 countries, is the worst on record. Shortly after local radio tsunami warnings were issued in American and Western Samoa, waves started crashing into the capital of American Samoa, Pago Pago, and villages and resorts on the southern coasts, witnesses said. “It’s believed as of now, there could be a number close to 100 deaths,” said Ausegalia Mulipola, assistant chief executive of Western Samoa’s disaster management office. “They are still continuing the searches for any missing bodies in the area,” Mulipola told Reuters, adding the southern side of the country’s main island Upolu was the worst hit. “Some areas have been flattened and the tsunami brought a lot of sand onshore, so there have been reports the sand has covered some of the bodies,” Mulipola said. “So we need specialised machines to search for bodies that are buried under the sand.” The owner of the Samoan resort Sea Breeze on the southside of Upolu said she and her husband were almost washed away when the waves destroyed their resort. “The second wave hit and came up through the floor, pushed out the back door and threw us outside,” Wendy Booth told Fairfax Radio Network in Australia. Samoa’s Hotel Association chief executive Nynette Sass said many people fleeing the waves were washed out to sea. “On the seaside there’s quite a few families ... with all their children gone, washed out. Some tried to escape in cars, and the waves got the cars. It’s really heartbreaking,” Sass told Radio New Zealand. Sass said people who escaped with only the clothes on their backs were now sheltering in makeshift camps on higher ground. Red Cross teams had mobilised more than 100 emergency workers who were collecting coconuts to help meet early food and water needs, the UN Office for the Coordination of Humanitarian Affairs said. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 2:00 am Air India pilots call off strikeNew Delhi: The agitating executive pilots of Air India on Wednesday called off their four-day-old strike, a day after government gave an assurance that status quo will prevail on cost cutting measures relating to productivity- linked incentive (PLI). Capt V K Bhalla, representative of the protesting Air India pilots, said they have decided to withdraw the strike following assurances given by civil aviation minister Praful Patel. He also thanked Prime Minister Manmohan Singh for intervening in the matter. Also See Air India: A timeline of the crisis “The strike is being called off in view of the assurances by the civil aviation minister that status quo will continue on issues,” he said. “I apologize to the passengers for inconvenience caused due to the agitation,” Bhalla said. “I am appealing to all the agitating pilots to resume duty,” he said. Bhalla said they have received a communication from the government in which the pilots have been assured that their grievances would be looked into. The pilots’ agitation had forced the airline to cancel over 240 flights in the last four days. Bhalla said the minister has given assurance that there will be no salary cuts. “The minister represents the government and I have full faith in him and trust him absolutely,” he said. “We will now work in full cooperation with the management and all the pilots will start flying,” he said. On cost cutting issues, Bhalla said “there will be a turnaround policy committee. All these issues will be discussed in that committee”. Patel had on Tuesday appealed to the striking pilots to return to work failing which the Air India management was “free to take any action” against them. Air India CMD Arvind Jadhav had said that the PLI and allowance of July have been paid and it will reflect in the account of pilots by 6 Oct or 7 Oct. The Prime Minister had on Tuesday reviewed the situation arising out of the agitation with civil aviation secretary Madhavan Nambiar and Jadhav. About 200 Air India pilots had reported “sick” since Saturday in protest against a 50% cut in their productivity-linked incentives (PLI) and payment of their due flying allowance of three months. Government had said that the agitation had cost a loss of over Rs100 crore. Source: Home - Livemint.com | 30 Sep 2009 | 1:47 am Govt plans stake sales in 5 firms by March 2010MUMBAI (Reuters) - The government plans to sell stakes in at least five state-run firms by the end of the fiscal year in March 2010 following successful IPOs of two firms that raised $1.8 billion, a government official said on Wednesday.Source: Reuters: Money News | 30 Sep 2009 | 1:45 am Mint in Multimedia - 30 SeptemberVideo story: Plain speaking Civil aviation minister Praful Patel urges Air India pilots to end their strike and says that if they don’t, the management is free to take any measures it feels necessary. Power moves NTPC has decided to pay Russia’s Power Machines the additional money it is demanding even as it ups the ante in a similar dispute with another Russian firm. Utpal Bhaskar explains why. Calling to account Mint’s Sangeetha Singh says that the ICAI president’s powers were reduced as part of the government’s strategy to improve corporate oversight. Source: Home - Livemint.com | 30 Sep 2009 | 1:34 am TCS says gets multi-million dollar dealMumbai: India’s top software exporter, Tata Consultancy Services Ltd, said on Wednesday it had signed a multi-million dollar deal with a Singapore state organisation. The deal is to provide annual application management services for two years to People’s Association in the city state, the company said in a statement to the stock exchange. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 1:33 am Air India pilots to be medically examined before flyingAir India Wednesday said its flight operations will be normal only by night as pilots who reported sick en masse will have to be medically examined before they are declared fit for flying.Source: IndiaeNews.com: Business News | 30 Sep 2009 | 1:30 am IMF cuts global debt writedown estimate to $3.4 trillionIstanbul: The International Monetary Fund on Wednesday lowered its estimate for global writedowns for banks and other financial institutions to $3.4 trillion but warned that loan losses were set to rise as unemployment grew. In April the IMF estimated in its Global Financial Stability Report that global bank losses could reach $4 trillion but said it cut the figure by $600 billion to reflect rising securities values and new methodology for calculating writedowns. “Global financial stability has improved, but risks remain elevated and the risk of reversal remains significant,” the IMF said. It added that the economic downturn was troughing but the recovery in advanced economies would be extremely slow. The report said that while banks have enough capital to survive, their earnings are not expected to fully offset writedowns expected over the next 18 months. It said stronger action was needed to bolster bank capital and earnings capacity to ensure banks could support a recovery. The Fund said while private-sector credit growth has contracted in big economies, overall borrowing needs have not slowed as quickly because of burgeoning government deficits. “The likely result is constrained credit availability,” it said, adding that continued support by central banks may be required to alleviate this. Using new methodology to calculate the writedowns, the IMF said bank losses on loans and securities holdings amounted to $1.3 trillion through the first half of 2009, with new writedowns of about $1.5 trillion still needed through the end of 2010. The report said US institutions were about 60% through their needed writedowns, while their euro area and British counterparts had recognized only 40% of losses. Deal With It It said loan losses are expected to account for around two thirds of total writedowns between 2007 and 2010, with housing the hardest hit in the United States and foreign loans the big contributors to loan losses in Britain and the euro area. The IMF urged authorities to deal with troubled assets still on banks’ books, adding that reassuring stress test results and signs of economic stabilization have eased pressure to deal with the toxic debt. “Authorities, banks and investors need to persevere with these programs,” the IMF said, adding that in countries where banks were undercapitalized, such toxic assets should be ringfenced to reassure markets about future losses. “Only when this source of uncertainty has been substantially reduced can banks fully participate in providing credit for recovery,” the IMF said. The Fund said financial conditions in emerging markets have improved thanks to strong policies but estimated that companies faced foreign currency debt refinancing needs of $400 billion over the next two years. Source: Home - Livemint.com | 30 Sep 2009 | 1:29 am Hurdles to a Bharti-MTN dealMumbai: A self-imposed deadline for exclusive talks for a tie-up between India’s top mobile firm Bharti Airtel and South Africa’s MTN expires on Wednesday, but any deal still faces regulatory and political hurdles. The firms are working on a deal worth around $24 billion in cash and stock, under which Bharti would get 49% of MTN, and MTN and its shareholders would take a 36% economic interest in Bharti, with a full merger the long-term goal. Following are some of the hoops a deal would face: Dual Listing Among the biggest hurdles for the closure of the deal. South Africa wants a dual listing structure to protect the national character of MTN, which now has operations across Africa and the West Asia, but Indian laws do not allow dual listing. The impasse seems to be the main bone of contention, with the two firms looking at the South African government to relent, sources said. Indian, which is unlikely to U-turn on dual listing as it would entail full capital account convertibility for its rupee currency, has said the two firms have not formally applied for dual listing. Union finance minister has also said the two firms were not immediately looking at a dual-listed structure. Voting Rights On GDRs India last week altered part of its takeover rules, potentially making it harder for firms to use stock swaps for overseas acquisitions, which could hurt a Bharti-MTN deal. The market regulator said depositary receipts with voting rights would be treated on par with regular shares, requiring GDR holders to make an open offer for 20% of an Indian firm’s shares once their holding crossed 15%. That was a shift from July, when the Securities and Exchange Board of India (Sebi) told Bharti that MTN and - or its shareholders would only have to make an open offer if the GDRs were converted to equity shares with voting rights. At Bharti’s current market value, a 20% stake purchase from the open market would cost nearly $7 billion. Apart from the cost, the potential increase in MTN’s holding from an open offer could threaten the structure of the deal. Bankers have said this ruling could be sidestepped by issuing GDRs with voting rights for a stake of less than 15%. They said an open offer might not be heavily subscribed as Bharti and MTN were fast growing firms and shareholders may not want to sell. Bharti has said the deal would comply with laws in both countries, and any required waivers would be sought when appropriate. Minority MTN Shareholders Prefer Cash Minority shareholders of MTN prefer cash to GDRs, bankers have said, making the deal costlier for Bharti. A GDR constitutes foreign ownership under South African regulations, which would require MTN shareholders to sell other holdings to comply with limits on foreign investment. Banking sources have said Bharti has agreed to pay cash to the minority shareholders, and Singapore’s Singtel, which owns about 30% of Bharti Airtel, would step in with the cash to ensure its stake in the combined firm does not fall sharply. Sweetened Offer One of the first hurdles to the deal, now probably the smallest. MTN shareholders wanted more, and Bharti responded by raising the offer by 7%, sources said. Some small investors of MTN said they want a bigger sweetener, probably 20-30% more. The deal needs support from 75% of MTN shareholders. Source: World Business - Livemint.com | 30 Sep 2009 | 1:28 am Hurdles to a Bharti-MTN dealMumbai: A self-imposed deadline for exclusive talks for a tie-up between India’s top mobile firm Bharti Airtel and South Africa’s MTN expires on Wednesday, but any deal still faces regulatory and political hurdles. The firms are working on a deal worth around $24 billion in cash and stock, under which Bharti would get 49% of MTN, and MTN and its shareholders would take a 36% economic interest in Bharti, with a full merger the long-term goal. Following are some of the hoops a deal would face: Dual Listing Among the biggest hurdles for the closure of the deal. South Africa wants a dual listing structure to protect the national character of MTN, which now has operations across Africa and the West Asia, but Indian laws do not allow dual listing. The impasse seems to be the main bone of contention, with the two firms looking at the South African government to relent, sources said. Indian, which is unlikely to U-turn on dual listing as it would entail full capital account convertibility for its rupee currency, has said the two firms have not formally applied for dual listing. Union finance minister has also said the two firms were not immediately looking at a dual-listed structure. Voting Rights On GDRs India last week altered part of its takeover rules, potentially making it harder for firms to use stock swaps for overseas acquisitions, which could hurt a Bharti-MTN deal. The market regulator said depositary receipts with voting rights would be treated on par with regular shares, requiring GDR holders to make an open offer for 20% of an Indian firm’s shares once their holding crossed 15%. That was a shift from July, when the Securities and Exchange Board of India (Sebi) told Bharti that MTN and - or its shareholders would only have to make an open offer if the GDRs were converted to equity shares with voting rights. At Bharti’s current market value, a 20% stake purchase from the open market would cost nearly $7 billion. Apart from the cost, the potential increase in MTN’s holding from an open offer could threaten the structure of the deal. Bankers have said this ruling could be sidestepped by issuing GDRs with voting rights for a stake of less than 15%. They said an open offer might not be heavily subscribed as Bharti and MTN were fast growing firms and shareholders may not want to sell. Bharti has said the deal would comply with laws in both countries, and any required waivers would be sought when appropriate. Minority MTN Shareholders Prefer Cash Minority shareholders of MTN prefer cash to GDRs, bankers have said, making the deal costlier for Bharti. A GDR constitutes foreign ownership under South African regulations, which would require MTN shareholders to sell other holdings to comply with limits on foreign investment. Banking sources have said Bharti has agreed to pay cash to the minority shareholders, and Singapore’s Singtel, which owns about 30% of Bharti Airtel, would step in with the cash to ensure its stake in the combined firm does not fall sharply. Sweetened Offer One of the first hurdles to the deal, now probably the smallest. MTN shareholders wanted more, and Bharti responded by raising the offer by 7%, sources said. Some small investors of MTN said they want a bigger sweetener, probably 20-30% more. The deal needs support from 75% of MTN shareholders. Source: Home - Livemint.com | 30 Sep 2009 | 1:28 am Asia shares rise to 2nd straight quarterly gainHong Kong: Asian shares edged higher on Wednesday looking past a surprise fall in US consumer confidence and the Australian dollar jumped to a 13-month high after August retail sales data beat forecasts. European stock futures pointed to a slight rise in opening trade on the last day of a quarter seen registering the strongest gain in nearly a decade, while US equity futures were up about 0.2%. China’s main stock market jumped a percent boosted by the acquisition plans of Industrial and Commercial Bank of China (ICBC), the world’s biggest bank by market value, while the Korean won rose to a near one-year high. “GDP and earnings are still being upgraded, valuations are not horribly expensive and cash is still zero percent, we are in a sweet spot,” said Khiem Do, head of the Asia multi-asset group at Baring Asset Management. He expects the stock rally to sustain and corrections to remain mild for the rest of the year. Referring to US consumer confidence he said: “It is a volatile data, next month it may be up again and it is very difficult to predict. Its not as if its been falling for months in a row.” The Aussie dollar, which has been on the uptrend after recent market talk about an imminent rate hike lifted its yield allure, received a further boost as data showed consumers continue spending even as the stimulus programme nears its end. The data took the currency to a peak of $0.8820 and pushed interest rate swaps to a three-week high as markets priced in a greater chance of a rate increase in November, with increased chances of hike in December as well. The Shanghai Composite Index rose as much as 1.8% after ICBC said it was bidding to buy Thailand’s ACL Bank for up to $545 million to tap rapid growth in the Thai economy and in trade.. Yet, the benchmark stock index has lost around 7% so far this quarter and is heading for its worst quarterly performance this year, mainly reflecting worries about an oversupply of shares. South Korea’s won currency rose as high as 1,177.5 to a dollar, a one-year high, forcing foreign exchange authorities to buy the greenback to curb the won’s strength. Taiwan, which competes with South Korea in exports of a number of goods, including electronics, also saw its currency rise, with exporter deals and foreign fund inflows boosting the Taiwan dollar to a near one-year high. The currency rose to as high as T$32.157 to the US dollar. Broadly, Asian stock markets were higher as investors ignored an unexpected fall in US consumer confidence in September, which brought down shares at Wall Street. The MSCI index of Asia Pacific stocks traded outside Japan was up about 0.4% and is set to post a second straight quarterly gain. The regional gauge is up 21% this quarter, adding to the second quarter’s 32% gains. Prior to that it had posted six successive quarters of losses. The Thomson Reuters index for stocks in Asia-Pacific ex-Japan was down about half a percent. Japan’s Nikkei average edged up 0.3% in cautious trade, with investors hesitant to actively take positions ahead of a series of economic data releases and at the end of Japan’s fiscal half-year. Meanwhile, the US dollar fell against the yen towards an eight-month low marked earlier this week as Japanese exporters sold the dollar to settle business before the quarter ends. Earlier, the dollar had risen on short-covering and as Japanese importers bought dollars. But it soon erased gains as such corporate demand faded. The dollar slipped 0.4 percent from late US trade to 89.65 yen, erasing earlier gains to ¥90.42 on trading platform EBS and falling towards an eight-month trough near ¥88.20 hit on Monday. “The market is dominated by quarter-end flows from companies and position-squaring by investors, temporarily lacking a clear sense of direction,” said Tsutomu Soma, senior manager of foreign securities at Okasan Securities. But to others the dollar’s reversal was not surprising and the broad downtrend for the US currency is still down. “The US dollar will remain under pressure to depreciate while currencies in Asia will tend to rise given improving growth prospects in the region,” said Stephen Roberts, an economist at Nomura in Sydney. Source: Home - Livemint.com | 30 Sep 2009 | 1:18 am Oil up above $67 on dollar slip, eyes on Iran talksSingapore: Oil rose above $67 on Wednesday, recouping day-ago losses as the US dollar eased against the euro and resource currencies like the Australian dollar, while eyes are on talks over Iran’s nuclear plans. Prices fell on Tuesday due to builds in US crude and distillates stocks, a downgrade to energy demand and low consumer confidence data, which continued a string of bearish signals that has put crude on course for its first quarterly fall this year. Some bullish news emerged, with US house prices rising for a third month, while a Chinese purchasing managers’ index for September released on Wednesday showed strong growth continues in the world’s second-largest oil consumer. And on Thursday, diplomats from the five permanent UN Security Council members and Germany will meet Iran’s nuclear negotiator, the first talks on Tehran’s disputed atomic programme in more than a year, as the White House weighed sanctions targeting the Islamic republic’s reliance on gasoline imports and insurance firms that underwrite the trade. US crude futures rose 45 cents to $67.16 a barrel by 12:08am, after shedding 13 cents on Tuesday. London Brent crude gained 41 cents to $65.90 a barrel. The markets are quiet ahead of China’s week-long holidays. “Looking at the fundamentals, it is not justifiable for prices to be at current (strong levels),” said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd, adding that investment funds took the view that $60 oil was cheap. Slowing demand in the United States and other developed economies after the financial crisis pulled crude down from records near $150 a barrel in July 2008 to below $33 a barrel in December, although hopes of an economic rebound have since lent support. Although US economic numbers are improving, the government’s Energy Information Administration (EIA) still revised down its July estimates for oil demand by 133,000 barrels per day (bpd) to 4% below year-ago levels, the lowest July level in 13 years. Also, US crude stocks jumped a hefty 2.8 million barrels last week and distillates, which include heating oil and diesel, rose 2.3 million barrels, American Petroleum Institute data showed. Gasoline stocks fell 1.7 million barrels. The EIA data will be out later on Wednesday. A Reuters poll forecast a 600,000-barrel rise in crude stocks, as weak margins pressured refinery demand; a 1.2 million-barrel build in distillates and a 1.0 million-barrel increase in gasoline inventories. The mixed economic data from the US showed that the economic rebound is still in its early days following the worst recession in decades, and it could be a long time before consumers contribute to growth, analysts said. Source: Home - Livemint.com | 30 Sep 2009 | 1:08 am DDA to get additional Rs500 cr for Commonwealth GamesNew Delhi: In a bid to expedite Commonwealth Games projects, government is likely to provide an additional amount of about Rs 500 crore to the Delhi Development Authority(DDA). The Expenditure Finance Committee (EFC) has approved the proposal to provide the additional fund of Rs497 crore to DDA for completion of Commonwealth Games infrastructure in the capital, a senior urban development ministry official said. Till now, the DDA has been given a total of Rs330 crore for execution of various Commonwealth Games projects. The scope and design of these projects have undergone several changes keeping the prevailing international standard in mind, the official said. The DDA is executing several Commonwealth Games projects including stadiums, Games Village, flyovers which are to be completed before October 2010. The additional fund will be given to the DDA after the approval of the Cabinet Committee on Infrastructure next week. Besides Games Village and flyovers, DDA is constructing Siri Fort stadium, Saket Sports Complex and Yamuna Sports Complex. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 12:51 am Earnings hopes power Sensex past 17,000Mumbai: The BSE Sensex climbed above 17,000 points on Wednesday for the first time since May 2008, led by banks and Reliance Industries on hopes that quarterly earnings would top expectations. Shares in leading mobile firm Bharti Airtel rose 0.5%, as exclusive talks deadline loomed for a tie-up with South Africa’s MTN Group. There is still little clarity about the outcome of the deal, which is facing increasing scrutiny in South Africa. Oil India gained as much as 9.3% on its trading debut after the state explorer’s heavily subscribed $570 million IPO, potentially boosting government plans for selling stakes in other companies. By 11:39am, the 30-share BSE index was up 1.13% at 17,043.74, with all but two components gaining. The index had started 0.09% higher. It has risen 76.7% so far in 2009, making it one of the best performing indices in the region. “There is visibility in terms of earnings which is adding to the confidence,” said Rajesh Jain, chief executive at Pranav Securities. Companies begin releasing their quarterly results from the second week of October, and advance tax payments indicate robust profits. Top lender State Bank of India led the gains, climbing 2.8% to Rs2,149.25 as investors expected strong corporate earnings to boost the bank’s profits and ease bad debt worries. ICICI Bank rose 1.2% to Rs874.50. “The markets could do very well to take a correction ahead of the results but every dip sees fresh buying. The advice is to stay invested and review global markets, liquidity and Indian festival demand before buying again,” Jain said. Energy giant Reliance Industries gained 1.2% to Rs2,191.30. Tata Consultancy Services rose 0.7% to Rs614.70 after the top software exporter said it signed a multi-million dollar contract with a Singapore state organisation. Software bellwether Infosys added 1.4% to Rs2,319.10. The strong debut of Oil India helped larger rival Oil and Natural Gas Corp climb 1% to Rs1,197.75. Bharti was up 0.5% at Rs420.9. In the broader market, 1,570 gainers were ahead of 849 losers on relatively low volume of 164.5 million shares. The market was shut on Monday for a local holiday and will be closed on Friday for Mahatma Gandhi’s birth anniversary. Analysts said the holidays would keep investors cautious. The 50-share NSE index rose 0.88% to 5,051.45. Source: Home - Livemint.com | 30 Sep 2009 | 12:51 am Company update: Jagran Prakashan LtdNewsprint prices continue to ease- an obvious positive for publishing companies like Jagran Prakashan Ltd (JPL), HT Media and DCHL. Sharp decline in NP prices to close to $480-490/MT levels (down c45% from October 2008) to materially benefit publisher financials over FY10-11E. Financial benefits have started reflecting for most publishers; impact has varied depending on quantum of higher cost inventory being carried; expect full impact H2FY10E onwards. We now expect NP prices to rise marginally, and stabilize at $610-625 levels over FY11E; upsides to estimates exist if NP prices do not rise as much as expected. Macro for advertising environment too has improved; we continue to expect a pick up in advertising spends 2HFY10 onwards. We reiterate that traditional media (print, TV broadcasting) will be the early beneficiaries of a pick-up. JPL- a strong regional franchise remains a preferred bet on our positive stance on regional media markets; we expect this to drive higher than peer revenue growth over FY10-11E. It is also better positioned than peers to lever margin growth as newsprint prices ease, in our opinion. Adjust FY10E earnings to account for a better revenue pickup in 2HFY10 and lower NP prices; maintain our positive outlook with a revised price target of Rs124 (Rs.117 earlier). In our previous note on the print sector (28-8-09) we had highlighted the fact that print stocks are likely to consolidate over the near term and underperform the broader markets. With a c8% under-performance, relative to the Sensex over the last 1M, we believe the JPL stock may offer opportunities for longer-term investors -use this recent underperformance to move the stock to a BUY. Source: LatestNews-Home - Livemint.com | 30 Sep 2009 | 12:50 am M&S’s sales trend improves, sees tough 2010London: British retailer Marks & Spencer posted an improvement in its quarterly sales trend and raised its forecast for full-year profit margin, but cautioned 2010 was likely to be a tough year. M&S, which sells clothes, homewares and food from over 600 stores in Britain and 285 abroad, said on Wednesday sales at British shops open at least a year fell 0.5% in the 13 weeks to 26 September. That was the eighth quarterly fall in a row, but also the best performance for two years and at the top end of forecasts for a fall of between 0.5% and 2.2%. “Whilst there is more visibility in the marketplace and consumers appear more confident, we continue to be cautious about the outlook. We expect 2010 to be a tough year,” executive chairman Stuart Rose said in a statement. M&S has been hit hard in the recession, losing ground to cheaper rivals like Primark in clothes and supermarkets in food. On Wednesday, online fashion retailer ASOS posted a 47% rise in first-half sales. Still, M&S’s performance has been better than analysts had feared, helped by new products, price cuts and promotions, and its shares have outperformed the DJ Stoxx European retail index by 46% this year on hopes of a recovery. A British retail survey on Tuesday supported signs of an upturn. But official data for August were flat and a string of industry executives have warned of a tough year ahead with unemployment and taxes set to rise. M&S, Britain’s biggest clothing retailer, said its full-year gross margin should fall by 50-100 basis points, better than previous guidance for a fall of 125-175 basis points thanks to better stock control, sourcing and supply chain management. KBC Peel Hunt analyst John Stevenson said he was likely to raise his full-year profit forecast by about 10% to £550 million ($877 million). But he noted some analysts had already increased their estimates following better than expected trading updates from competitors like fashion chain Next. One trader said M&S shares were set up open about 8 pence higher, while another called them down 2 pence. Analysts expect M&S to make a full-year profit of £540 million, according to Reuters Estimates, down from 604 million in 2008-09, but up from a 2009-10 consensus of 471 million six months ago. M&S said like-for-like sales fell 0.8% in general merchandise, which includes clothing, and were flat in food. International sales were up 9.6% and total group sales for the quarter were up 2.7%. M&S shares closed at 374.8 pence on Tuesday, valuing the business at about £5.8 billion. Source: Home - Livemint.com | 30 Sep 2009 | 12:36 am M&S’s sales trend improves, sees tough 2010London: British retailer Marks & Spencer posted an improvement in its quarterly sales trend and raised its forecast for full-year profit margin, but cautioned 2010 was likely to be a tough year. M&S, which sells clothes, homewares and food from over 600 stores in Britain and 285 abroad, said on Wednesday sales at British shops open at least a year fell 0.5% in the 13 weeks to 26 September. That was the eighth quarterly fall in a row, but also the best performance for two years and at the top end of forecasts for a fall of between 0.5% and 2.2%. “Whilst there is more visibility in the marketplace and consumers appear more confident, we continue to be cautious about the outlook. We expect 2010 to be a tough year,” executive chairman Stuart Rose said in a statement. M&S has been hit hard in the recession, losing ground to cheaper rivals like Primark in clothes and supermarkets in food. On Wednesday, online fashion retailer ASOS posted a 47% rise in first-half sales. Still, M&S’s performance has been better than analysts had feared, helped by new products, price cuts and promotions, and its shares have outperformed the DJ Stoxx European retail index by 46% this year on hopes of a recovery. A British retail survey on Tuesday supported signs of an upturn. But official data for August were flat and a string of industry executives have warned of a tough year ahead with unemployment and taxes set to rise. M&S, Britain’s biggest clothing retailer, said its full-year gross margin should fall by 50-100 basis points, better than previous guidance for a fall of 125-175 basis points thanks to better stock control, sourcing and supply chain management. KBC Peel Hunt analyst John Stevenson said he was likely to raise his full-year profit forecast by about 10% to £550 million ($877 million). But he noted some analysts had already increased their estimates following better than expected trading updates from competitors like fashion chain Next. One trader said M&S shares were set up open about 8 pence higher, while another called them down 2 pence. Analysts expect M&S to make a full-year profit of £540 million, according to Reuters Estimates, down from 604 million in 2008-09, but up from a 2009-10 consensus of 471 million six months ago. M&S said like-for-like sales fell 0.8% in general merchandise, which includes clothing, and were flat in food. International sales were up 9.6% and total group sales for the quarter were up 2.7%. M&S shares closed at 374.8 pence on Tuesday, valuing the business at about £5.8 billion. Source: World Business - Livemint.com | 30 Sep 2009 | 12:36 am Air India pilots back to work, flights to normalise by nightAir India pilots began reporting back to work Wednesday soon after they called off their five-day strike, bringing relief to thousands of harried passengers though officials said schedules would get back to normal only late night.Source: IndiaeNews.com: Business News | 30 Sep 2009 | 12:30 am IDBI advances on rate cut - Business Standard
Source: Business - Google News | 30 Sep 2009 | 12:23 am Bharti-MTN talks deadline looms; next step uncertainNew Delhi: A deadline for exclusive talks for a $24 billion tie-up between Indian telecom firm Bharti Airtel and South Africa’s MTN Group ends on Wednesday, with little clarity on where the deal is heading. Bharti has sought two more weeks of exclusive talks with mobile firm MTN, Financial Chronicle newspaper reported on Wednesday, citing an unnamed finance ministry official. Bharti and MTN revived merger talks in May, a year after previous negotiations failed over who would control what would be an emerging markets giant with more than 200 million customers across India, Africa and the West Asia. The talks were set to end on 31 July, but have been extended twice. Bankers and analysts say the most likely outcome on Wednesday is for another extension or for the deal to be abandoned. “The political and regulatory issues related to the deal are expected to result in a further extension of the deadline for exclusive talks,” Indian brokerage First Global said in a note. “I can’t say anything. We are all waiting,” Bharti Airtel chairman Sunil Mittal told ET Now television late on Tuesday, when asked whether there was a chance that the talks could be extended. South Africa is eager to retain MTN’s national character and had approached Indian authorities to consider a dual-listed entity, a structure Indian laws currently do not allow. Union finance minister Pranab Mukherjee said on Tuesday the government was taking a “positive approach” to the deal, while finance secretary Ashok Chawla said there had been no formal approach about a dual listing. Under the initial terms outlined in May, MTN and its shareholders would take a 36% economic interest in Bharti and the Indian firm would end up with 49% of MTN. Bharti increased the cash component of its offer for that 49% stake to $10 billion from a proposed $7.6 billion, two people familiar with the matter have said. On top of that, Bharti would pay $4 billion in stock for a total package of $14 billion, 7% more than initially proposed, according to sources. Another hurdle for the deal emerged last week when India amended its takeover rules, requiring a company buying 15% of an Indian firm through American Depositary Receipts (ADRs) or Global Depositary Receipts (GDRs), with voting rights, to make a mandatory offer for a further 20%. Under the new rules, MTN might be required to make an offer for an additional 20% stake in Bharti, if it is issued GDRs with voting rights. That would mean an additional cost of nearly $7 billion based on Bharti’s market value of $33 billion. Source: Home - Livemint.com | 30 Sep 2009 | 12:23 am Allcargo Global to raise Rs 101 cr via debenture issue - Business Standard
Source: Business - Google News | 30 Sep 2009 | 12:18 am Sensex crosses 17,000-mark for first time in 16 monthsThe barometer ended 159.91 points higher yesterday. The wide-based National Stock Exchange index Nifty also gathered 43.90 points at 5,050.75.Source: Daily News & Analysis: Money News | 30 Sep 2009 | 12:12 am CPI-M activists to form 500 km human chain in KeralaOver 30 lakh Communist Party of India-Marxist (CPI-M) activists in Kerala will form a 500 km human chain from here to Kasargode on Oct 2 to protest the free trade agreement signed between New Delhi and the Association of South East Asian Nations (ASEAN).Source: IndiaeNews.com: Business News | 30 Sep 2009 | 12:01 am Dishman set to benefit from Abbott-Solvay dealMumbai, Sept. 29 US drug-maker Abbott’s $6.6-billion agreement to buy Belgium-based Solvay Group’s pharma business will give Gujarat-based Dishman Pharmaceuticals a booster shot.Source: Business Line - Home Page | 30 Sep 2009 | 12:00 am Day Trading GuideUtilise rallies to sell DLF with stiff stop-loss at Rs 436. Fresh long position can be initiated only if ICICI Bank exceeds above Rs 875 with tight stop-loss. As long as Infosys tradesSource: Business Line - Home Page | 30 Sep 2009 | 12:00 am Pilots are Air India’s best paid employeesChennai, Sept. 29 Pilots of Air India are agitating against a cut in their productivity linked incentives.Source: Business Line - Home Page | 30 Sep 2009 | 12:00 am Minister urges Air India pilots to ‘see reason’The Minister for Civil Aviation, Mr Praful Patel, on Tuesday appealed to the agitating Air India pilots to “see reason” by midnight tonight or the management will be well within its rights to take steps to protect the airline’sSource: Business Line - Home Page | 30 Sep 2009 | 12:00 am ETC Networks (Rs 158.2): BuyWe recommend a buy in the stock of ETC Networks from a short-term perspective. It is apparent from the charts that the stock found support at Rs 50, a key long-term support level in March, and reversed direction. Since then it has been on anSource: Business Line - Home Page | 30 Sep 2009 | 12:00 am Realty cos line up IPOs to raise over Rs 11,000 crNew Delhi, Sept. 29 Buoyed by positive market sentiments and demand revival in housing, four real estate companies — Emaar MGF Land, Lodha Developers, Sahara Prime City and Ambience Ltd — are looking to mop-up over Rs 11,000 croreSource: Business Line - Home Page | 30 Sep 2009 | 12:00 am L&T says it can build N-power units of 3,000-4,000 MW every yearNew Delhi, Sept. 29 Engineering and construction major Larsen & Toubro’s Chairman and Managing Director, Mr A M Naik, told presspersons that the company can build nuclear power plants with a capacity of 3,000-4,000 MW a year.Source: Business Line - Home Page | 30 Sep 2009 | 12:00 am Demand for LCs, bank guarantees on the riseMumbai, Sept. 29 The global economic slowdown and the subsequent revival have resulted in a rise in the demand for risk mitigation products such as Letters of Credit and bank guarantees.Source: Business Line - Home Page | 30 Sep 2009 | 12:00 am World Bank loan to India We have everything to gainThe World Bank has just announced a significant loan amounting to $4.3 billion to India. The loan is mainly for four projects. First, it aims at strengthening public sector banks through capital infusion, which will be needed to expand credit.Source: Business Line - Home Page | 30 Sep 2009 | 12:00 am India Cements investing Rs 500 cr in 2 power plantsChennai, Sept. 29 India Cements Ltd, which plans to invest Rs 500 crore in two 50 MW power plants, will itself set them up rather than through a separate entity, according to information provided by the company to the stockSource: Business Line - Home Page | 30 Sep 2009 | 12:00 am Oil India rises 9.3 pct in strong market debutMUMBAI (Reuters) - Oil India gained as much as 9.3 percent on its trading debut on Wednesday after the state explorer's heavily subscribed $570 million IPO, potentially boosting government plans for selling stakes in other companies.Source: Reuters: Money News | 29 Sep 2009 | 11:57 pm Bharti-MTN talks deadline looms; next step uncertainNEW DELHI (Reuters) - A deadline for exclusive talks for a $24 billion tie-up between telecoms firm Bharti Airtel and South Africa's MTN Group ends on Wednesday, with little clarity on where the deal is heading.Source: Reuters: Money News | 29 Sep 2009 | 11:24 pm Microsoft CEO takes pay cut after rough yearSEATTLE (Reuters) - Microsoft Corp paid its chief executive Steve Ballmer 5.5 percent less for the last fiscal year as the world's biggest software company suffered its first ever drop in annual sales.Source: Reuters: Money News | 29 Sep 2009 | 11:18 pm Sony to unveil new PS3 game title in theatersLos Angeles: Video gaming will hit the big screen next month when Sony Corp unveils a new game title for its Playstation3 game console at movie theaters. On 5-6 October, four theaters in San Francisco and Thousand Oaks, California, Rosemont, Illinois and Bellevue, Washington, will give viewers a chance to play the upcoming action game “Uncharted 2: Among Thieves” title -- on movie screens equipped with Sony digital-projection technology. Those theaters will provide viewers with PS3s connected to Sony’s 4K digital cinema technology, which is in about 500 theaters nationwide and which Sony says provides better image resolution than traditional projectors. Mike Fidler, senior vice president of Sony Electronics’ Digital Cinema Solutions and Services Group, hopes events like this can eventually drive revenues for Sony, video game makers as well as theater operators. “This is the first time we’re doing it in a theater. We think it’s a start of something for us, and hope we can build this into a standard element in the movie-going experience,” he said. “Our goal in converting theaters to digital is to go beyond the traditional movie-going experience and focus on helping exhibitors find ways to fill seats.” “Gaming will be an important part of that equation.” The first night will be a private invitation-only event, while the second event will be open to the public, to be publicized through radio and social networking sites. Theater chains have struggled to sustain revenue growth as home entertainment and the recession entices some moviegoers to stay home. And Sony, like other game console makers, is hoping for a hit title this holiday season to drive platform sales as the industry grapples with a protracted decline. Both Sony and Microsoft Corp, the maker of the rival XBox 360, have recently slashed prices on their consoles. Sales of video game equipment and software in the United States fell 16% in August to $908.7 million, the industry’s sixth consecutive monthly decline, research group NPD reported. “Uncharted 2” is due to be released on 13 October. Source: Tech News - Livemint.com | 29 Sep 2009 | 10:28 pm IndiaCo to raise $500m fundThe Pune based private equity and venture capital firm, is planning a $500 million fund. It expects to make first close of $100-150m by early 2010.Source: Daily News & Analysis: Money News | 29 Sep 2009 | 6:55 pm Wait till the end for Bharti-MTN talksA formal statement is likely from Bharti Airtel and MTN on Wednesday, that could either indicate an extension of talks or strengthening of the dialogue through a sketchy MoU.Source: Daily News & Analysis: Money News | 29 Sep 2009 | 3:27 pm Counterfeit drugs are killing bottle manufacturersPatients and pharmaceutical companies aren't the only ones at the receiving end from drug counterfeiters. Glass container makers, are as much in pain.Source: Daily News & Analysis: Money News | 29 Sep 2009 | 3:21 pm Parsvnath placement draws poor responseEfforts of Parsvnath Developers to raise $70 million through a qualified institutional placement (QIP) of shares seem to have gone largely in vain.Source: Daily News & Analysis: Money News | 29 Sep 2009 | 3:17 pm 'Desktop virtualisation is the next big thing'Mark Templeton, president & CEO, Citrix Systems, practices what he preaches. In a chat he shares his vision of the future and what lies in store for the online world.Source: Daily News & Analysis: Money News | 29 Sep 2009 | 3:15 pm Sanghi Ind shuts out shareholders?Shareholder with a big stake protests, says arbitrary appointments made. Ravi Sanghi, MD, says no 'genuine' shareholder kept away.Source: Daily News & Analysis: Money News | 29 Sep 2009 | 3:14 pm Sanghi Ind shuts out shareholders?Shareholder with a big stake protests, says arbitrary appointments made. Ravi Sanghi, MD, says no 'genuine' shareholder kept away.Source: Daily News & Analysis: Money News | 29 Sep 2009 | 3:14 pm Smooth rideBajaj Auto's stock has increased 19% in the last one month to Rs 1,432.30 per share against a 5.8% increase in the Sensex.Source: Daily News & Analysis: Money News | 29 Sep 2009 | 3:10 pm Antara boosterPharmaceutical company Lupin has acquired the US rights for Antara, a cholesterol-lowering drug, from bankrupt US drug company Oscient Pharmaceuticals. for around $38.61 million.Source: Daily News & Analysis: Money News | 29 Sep 2009 | 3:00 pm Jet to sell land in Mumbai to raise Rs 1,000 crJet Airways expects to raise over Rs 1,000 crore by selling 2.5 acres of premium land it owns in the Bandra Kurla area in Mumbai. The move will partly help the company to raise about $400 million (roughly Rs 2,000 crore) to cut its debt burden of Rs 15,885 crore.Source: Business Standard | Front Page Headlines | 29 Sep 2009 | 1:32 pm It's raining orders for India IncThe trickle has turned into a deluge. India Incs order book has more than doubled to an all-time high of Rs 73,320 crore in the second quarter of the current financial year, compared to the first quarter. On a year-on-year basis, the increase is 21 per cent.Source: Business Standard | Front Page Headlines | 29 Sep 2009 | 1:31 pm Resume work or face action: Patel to AI pilots'Mr Jadhav is a confused man and that is the problem,' says pilots' representative.Source: Business Standard | Front Page Headlines | 29 Sep 2009 | 1:29 pm Uncertainty overhangs Independent’s refinancing dealDublin: Independent News & Media’s long-awaited restructuring deal received a tepid welcome from investors on Tuesday, amid uncertainty over whether the agreement will go through to secure the group’s future. The heavily-indebted publishing empire agreed late on Monday to give bondholders a 47% stake, roughly halving the interests of existing equity shareholders, in order to resolve payment on a long overdue senior note. But the deal, which includes a €94 million ($137 million) rights issue amd the disposal of its South African advertising business as well as the debt-for-equity swap, still needs approval and key shareholder Denis O’Brien has yet to comment on it. “It’s still quite uncertain whether this restructuring plan is going to go through in its current form,” said one Dublin-based dealer. The debt-for-equity swap needs the approval of bondholders representing three quarters of the bonds. So far approval has been given by 39%. Long running battle Shares in the group, which owns radio stations and newspapers across Australia, Britain, Ireland, Asia and South Africa, were down nearly 13% at around 24 euro cents in morning trade, underperforming a general market up around 0.5%. O’Brien, the telecoms billionaire and 26% shareholder in Independent News who has been locked in a long-running battle with the company’s biggest shareholder Anthony O’Reilly over the future of the company, tabled an alternative restructuring plan last week. That plan, which involved O’Brien gaining a two-thirds stake in Independent in return for a €100 million investment at a price of €0.0142 a share, was rejected by a committee of bondholders. Representatives of O’Reilly, who stepped down as chief executive earlier this year under pressure from his arch-rival and the weak financial state of the company, also said the former rugby international would not accept O’Brien’s proposal. O’Reilly had dominated Independent since the early 1970s when he transformed it from an Irish-focused publisher into a global player before its debt-fuelled expansion strategy and bottom line fell foul of the global financial crisis. The restructuring deal would see O’Reilly’s 28% stake roughly halved if he participated in the rights issue at 5 cents a share, an 80% discount to the current price. Source: World Business - Livemint.com | 29 Sep 2009 | 8:11 am Barclays says will buy Citi’s Portuguese credit card armLondon: British bank Barclays on Tuesday said it had agreed to buy US banking giant Citigroup’s Portuguese credit card division for an undisclosed amount. “Barclays Bank plc, acting through its Portuguese branch, has agreed to acquire the Portuguese credit card business of Citibank International plc, Sucursal em Portugal,” the British company said in a statement. The deal is expected to complete before the end of the year subject to clearance from regulatory authorities. Citi cards are expected to be rebranded under the Barclaycard name. “Barclays intends to integrate the Business into its existing Barclays Portugal business, which is part of the Global Retail and Commercial Banking - Western Europe division,” the bank added. Barclays will acquire 400,000 credit card accounts and gross assets of around €644 million ($939 million ) under the terms of the transaction. “Barclays’ business in Portugal has grown rapidly over the past three years, adding more than 130 branches across the country,” said Frits Seegers, chief executive of Barclays Global Retail and Commercial Banking. “With this acquisition, we will deliver a real step change in our business, significantly increasing Barclays Portugal’s customer base and providing extensive cross-sell opportunities.” Unlike some of its rival British banks, Barclays has successfully avoided state control, despite a ferocious global financial crisis that erupted back in 2007. Barclays survived the international credit crunch by courting investment from wealthy Gulf states. Source: World Business - Livemint.com | 29 Sep 2009 | 4:48 am Dell launches high-end, thin business PCSan Francisco: Dell Inc on Monday unveiled its latest high-end, ultra-thin personal computer, bringing some fresh design appeal to its enterprise models. Dell called the new Latitude Z the world’s thinnest and lightest 16-inch laptop, at 4.5 pounds and less than one inch thick. However, the Latitude Z does not come cheap, starting at $1,999. Dell, the world’s No. 2 PC maker said it is targeting the PC at what it calls “impression makers,” such as creative professionals. Thin and light is undoubtedly a priority for PC makers this fall, in both consumer and business segments. Technology advances are allowing PC makers to cram ever more performance into a shrinking form factor. Dell launched its premium consumer ultra-thin PC, the Adamo, earlier this year. “We’re seeing thin and light spread throughout our portfolio,” said Todd Forsythe, vice president in Dell’s commercial client product group. Dell said the Latitude Z is the first laptop to offer wireless docking and “inductive charging.” It can be recharged without a power cord just by placing it in a special docking station, in the same way many electric toothbrushes charge. The docking station is sold separately. The Latitude Z also comes with an always-on function that allows instant access to email and the Internet, and offers a screen frame that is touch-sensitive and can be used to launch applications and scroll through Web pages. Source: Tech News - Livemint.com | 29 Sep 2009 | 4:19 am
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