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Mahindra ties up with Australian aerospace cos for Rs 175crCNBCTV18 learns that Mahindra Mahindra (MM) has forayed into the aerospace segment by acquiring major stake in two Australian companiesAerostaff Australia and Gippsland Aeronautics.Source: Moneycontrol Top Headlines | 15 Dec 2009 | 8:46 am RIL to surrender 56 blocks in KG D6: SourcesReliance Industries (RIL) is looking to shortly surrender fivesix blocks in the KG D6 basin, after not finding oil or gas in the blocks.Source: Moneycontrol Top Headlines | 15 Dec 2009 | 8:40 am Q3 NII numbers will not be good: Union BankIn an interview with CNBCTV18, MV Nair, Chairman and Managing Director of Union Bank spoke about concerns on credit growth and his outlook for the sector.Source: Moneycontrol Top Headlines | 15 Dec 2009 | 8:22 am Woods finds celebrity media impossible to tameGolfer Tiger Woods underestimated the pervasive power of the celebrity media in exposing his double life and his renewed pleas for privacy are unlikely to be honored.Source: Moneycontrol Top Headlines | 15 Dec 2009 | 7:21 am Shree Cements plans Rs 2,000cr capex via internal accrualsIn an interview with CNBCTV18, MK Singhi, Executive Director of Shree Cements, spoke about the rise in cement prices and company\'s further plans.Source: Moneycontrol Top Headlines | 15 Dec 2009 | 7:20 am Glenmark may settle with Merck on cholesterol drugGlenmark may settle with Merck on cholesterol drug. If the case is settled between the companies, it is going to be an advantageous opportunity for both the companies, reports Mints National Writer C H Unnikrishnan.Source: Moneycontrol Top Headlines | 15 Dec 2009 | 7:16 am The Giant AwakensThe LyondellBasell acquisition, if it happens, will catapult RIL into the global big leagueSource: Moneycontrol Top Headlines | 15 Dec 2009 | 7:12 am Sun Apollo invests Rs 75cr in Parsvnath Developers projectIn an interview with CNBCTV18, Pradeep Jain, Chairman of Parsvnath Developers Limited, spoke about the companys plans for the execution of its projects.Source: Moneycontrol Top Headlines | 15 Dec 2009 | 6:36 am JSW Energy prices IPO at lower end, gets $579 millionJSW Energy has raised 27 billion rupees ($579 million) in its initial public offer after it priced the sale at the lower end of the 100115 rupees per share band following a tepid investor response.Source: Moneycontrol Top Headlines | 15 Dec 2009 | 6:08 am Government rules out plans to sell stake in NalcoThe government has no plans to sell part of its stake in staterun National Aluminium Co., Minister of Finance for State S.S. Palanimanickam told parliament on Tuesday.Source: Moneycontrol Top Headlines | 15 Dec 2009 | 6:08 am Oil prices up in Asian trade as regional demand picks up!Oil prices rose in Asian trade on Tuesday as traders were heartened by renewed demand for energy in the region, dealers said.Source: Zee News : Business | 15 Dec 2009 | 4:57 am Sensex up 103 pts in early trade!The Bombay Stock Exchange benchmark Sensex on Tuesday gained about 103 points in early trade on heavy foreign capital inflows as rise in advance tax collection indicated better earnings for the December quarter.Source: Zee News : Business | 15 Dec 2009 | 4:57 am Abu Dhabi bailout gives Dubai respite, not much more!Abu Dhabi`s eleventh-hour bailout of neighbour Dubai will reassure investors in the short term, but with USD 35 billion of debts looming and little clarity on how it will pay, Dubai`s troubles are far from over.Source: Zee News : Business | 15 Dec 2009 | 4:57 am Boeing Dreamliner set for first test flight!More than two years behind schedule, Boeing`s 787 Dreamliner is set to take its first test flight on Tuesday after completing a 240-km-per-hour runway test over the weekend, Boeing said Monday.Source: Zee News : Business | 15 Dec 2009 | 4:57 am Debt-ridden Greece `in vital need of loans`!Greece described loans as "a matter of life and death" for its beleaguered economy as the government prepared to unveil emergency measures to combat the worst debt crisis in the country`s modern history.Source: Zee News : Business | 15 Dec 2009 | 4:57 am Obama implores top bankers to increase lending!US Prez Obama implored top bankers Monday to help keep the fragile recovery from faltering by boosting lending to small businesses and getting behind an overhaul of financial regulation. "We rise and fall together," he declared.Source: Zee News : Business | 15 Dec 2009 | 4:57 am Touted best among G8, Canadian economy on rebound!Touted as the best among all the G8 economies during the current global slowdown, the Canadian economy is set for a rebound, according to the country`s top bank.Source: Zee News : Business | 15 Dec 2009 | 4:57 am MetricStream chosen by Amedisys for managing risk effortsHeadquartered in Baton Rouge, Louisiana, Amedisys is one of America's leading home health and hospice nursing companies.Source: Daily News & Analysis: Money News | 15 Dec 2009 | 3:25 am Sensex closes 250 points down; banks, auto down - Economic Times
Source: Business - Google News | 15 Dec 2009 | 3:22 am Shree Cements plans Rs 2000cr capex via internal accruals - Moneycontrol.com
Source: Business - Google News | 15 Dec 2009 | 3:10 am Sensex ends down 218pts - Business Standard
Source: Business - Google News | 15 Dec 2009 | 3:10 am Tata Motors launches upgraded Sumo - Economic Times
Source: Business - Google News | 15 Dec 2009 | 2:59 am LG sets 3D TV target, to offer new lineup in 2010LG Electronics Inc set an aggressive sales target for 3D televisions, aiming to build a leadership position in an emerging market where competition is set to heat up next year.Source: Daily News & Analysis: Money News | 15 Dec 2009 | 2:57 am Asian Development Bank sees higher Asia growth; urges caution on exit strategyThe Manila-based multilateral bank said that regional economies should grow 4.5 percent on average in 2009 and 6.6% in 2010.Source: Daily News & Analysis: Money News | 15 Dec 2009 | 2:55 am Markets fall led by banksMumbai: Indian shares dropped on Tuesday, pulled down by banks as higher-than-expected inflation for November triggered concerns the Reserve Bank of India (RBI) may start tightening liquidity soon. The 30-share BSE index ended down 220.39 points at 16877.16, with 26 components falling. The 50-share NSE index closed down 72.65 points at 5,033.05. Source: Home - Livemint.com | 15 Dec 2009 | 2:55 am Stanchart India unit pays Rs4 bn Oct-Dec advance taxMumbai: The Indian unit of Asia-focused Standard Chartered Bank has paid Rs4 billion ($86 million) as advance tax for the October-December quarter, income tax department sources said on Tuesday. The bank had paid an advance tax of Rs4.3 billion a year ago, the sources said. The Indian unit of Citibank paid Rs2.25 billion rupees compared with the same amount a year ago, the sources, who did not wish to be named, added. Indian regulations require a certain percentage of tax payable for the fiscal year to be paid in advance in each quarter. Source: LatestNews-Home - Livemint.com | 15 Dec 2009 | 2:49 am Mahindra says buys stake in Aussie firmsMUMBAI (Reuters) - Mahindra & Mahindra, India's largest utility vehicles and tractor maker, said on Tuesday it had acquired majority stake in two Australian aerospace companies for 1.75 billion rupees ($37.5 million).Source: Reuters: Money News | 15 Dec 2009 | 2:47 am FACTBOX - A look at South Korea's powerful Samsung GroupREUTERS - South Korean technology powerhouse Samsung Electronics named the son of former chairman Lee Kun-hee as its chief operating officer in a move seen as possibly geared toward succession at the corporate giant.Source: Reuters: Money News | 15 Dec 2009 | 2:45 am GLOBAL MARKETS - Eurozone worries hit euro, weigh on world stocksLONDON (Reuters) - The euro hit a 2-1/2 month low against a broadly firmer dollar on Tuesday while world stocks slipped as concerns grew about the European banking sector and the fiscal health of Greece.Source: Reuters: Money News | 15 Dec 2009 | 2:43 am World's longest sea bridge may boost China economyConstruction of the world's longest sea bridge linking Hong Kong to China and Macau began on Tuesday, in a bid to bolster the integration and future growth of the Pearl River Delta.Source: Daily News & Analysis: Money News | 15 Dec 2009 | 2:43 am Samsung names new CEO, promotes ex-chairman’s sonSeoul: In a second management revamp this year aimed at speeding up decision making, South Korea’s Samsung Electronics named a new CEO and promoted Jay Y. Lee, son of former group chairman Lee Kun-hee, to the new post of chief operating officer. Samsung, which makes up around 12% of the Seoul stock market’s capitalisation and is among the country’s leading exporters, is beefing up its management team to oversee seven divisions that will be run like separate companies. That replaces a previous structure, only introduced in January, that managed 10 operating divisions under two principal businesses: Digital Media & Communications and Device Solutions. Some analysts said the changes should improve management at the world’s top maker of memory chips and LCD screens, which posted record quarterly profit in the third quarter despite the global slump and is forecast to earn more than $10 billion in net profit next year. The promotion of 41-year-old Jay Y. Lee makes him the latest among the descendents of the families that head the bulk of South Korea’s top business groups or “chaebol” to be readied to eventually take over the top job. “I believe Samsung could make faster investment decisions under the new leadership with Choi at the top and the owner family Lee at the side,” said Lim Young-jae, researcher at state-run think-tank the Korea Development Institute. “Major South Korean chaebol, including Samsung, are walking a thin line between transparent governance structure and fast and forward-looking decision making.” New CEO Choi Geesung, previously head of Digital Media & Communications, said in a statement that the organisational changes were being made now “to prepare for the challenges and opportunities ahead.” Samsung will also absorb its camera making affiliate Samsung Digital Imaging next year in a further move to improve management efficiency. One Samsung Digital share would be exchanged for 0.0577663 of Samsung Electronics stock around April, the companies said. Japanese rival Sony Corp is undergoing a major restructuring of its sprawling operations after falling behind Apple Inc’s iPod in portable music, Nintendo Co in videogames, and Samsung in LCD TVs. Stronger ‘C-Suite’ Jay Y. Lee will be part of what Samsung calls its strengthened C-Suite, where the “C” refers to top executives with ‘chief´ in their title, watching over seven business divisions operating like individual entities. Almost as reclusive as his father, the younger Lee has long been viewed as being groomed to head the Samsung group, which includes the huge electronics firm and was founded by his grandfather in the 1930s. Lee Kun-hee, credited with turning the chips-to-mobiles group into one of the world’s leading technology manufacturers, stepped down as Samsung Group chairman in 2008 after he was indicted over corruption allegations. “In the broader scheme of things, the appointments further ease uncertainties about the group,” said Huh Jang, managing director, Prudential Asset Management Co Ltd. “Through Lee Jae-yong (Jay Y. Lee), former chairman Lee Kun-hee would be able to wield influence.” Current vice chairman and CEO Lee Yoon-woo will continue as board chairman. Samsung shares closed around 0.3% lower in a flat broader market. Source: LatestNews-Home - Livemint.com | 15 Dec 2009 | 2:42 am Infrastructure, taxes top India reform prioritiesMUMBAI (Reuters) - The government will use its political clout to push tax reforms that would boost revenues but could put other policies, such as insurance and pension changes, on the backburner for several months.Source: Reuters: Money News | 15 Dec 2009 | 2:39 am Rupee little changed on Moody's rating actionMUMBAI (Reuters) - The rupee traded in a narrow range on Tuesday afternoon after rating agency Moody's Investors Service said it had raised its outlook on the rupee rating to positive.Source: Reuters: Money News | 15 Dec 2009 | 2:33 am Airline sector to lose $5.6 bn in 2010: IataGeneva: Airlines will sell more seats in 2010 as a result of the recovering global economy, but rising fuel prices and pressure on yields are likely to keep them in the red, the industry group Iata said on Tuesday. In its latest outlook, the International Air Transport Association (Iata) said the airline sector would lose $5.6 billion on a net basis in 2010, compared to its previous forecast for a $3.8 billion loss. It repeated its expectation for $11 billion industry net loss this year. Iata also said air passenger numbers would return in 2010 to their 2007 peak and air cargo demand would rebound quickly as depleted inventories are restocked. Source: World Business - Livemint.com | 15 Dec 2009 | 2:31 am Airline sector to lose $5.6 bn in 2010: IataGeneva: Airlines will sell more seats in 2010 as a result of the recovering global economy, but rising fuel prices and pressure on yields are likely to keep them in the red, the industry group Iata said on Tuesday. In its latest outlook, the International Air Transport Association (Iata) said the airline sector would lose $5.6 billion on a net basis in 2010, compared to its previous forecast for a $3.8 billion loss. It repeated its expectation for $11 billion industry net loss this year. Iata also said air passenger numbers would return in 2010 to their 2007 peak and air cargo demand would rebound quickly as depleted inventories are restocked. Source: Home - Livemint.com | 15 Dec 2009 | 2:31 am The Giant Awakens - Moneycontrol.com
Source: Business - Google News | 15 Dec 2009 | 2:15 am Mahindra buys stake in Aussie aerospace firmsMumbai: Mahindra & Mahindra, India’s largest utility vehicles and tractor maker, said on Tuesday it had acquired majority stake in two Australian aerospace companies for Rs1.75 billion ($37.5 million). The firms are Aerostaff Australia, an aircraft component maker, and Gippsland Aeronautics that makes aircrafts, the company said in a statement. The acquisitions were made jointly with Kotak Private Equity, it added. Source: Home - Livemint.com | 15 Dec 2009 | 2:12 am Satyam fraud spurs govt to tighten corporate governance normsThe investigating agencies had a tough time going through voluminous documents to get to the extent of the scam and uncover the modus-operandi of the fraud.Source: Daily News & Analysis: Money News | 15 Dec 2009 | 2:06 am Dubai sets up panel for Dubai World debt settlementDubai has set up of a tribunal to settle all financial disputes between Dubai World, which is seeking to restructure around $ 26 billion of debt, and its creditors.Source: HindustanTimes.com - Top Business News Headlines | 15 Dec 2009 | 1:47 am India urges US regulator to waive off fine on SatyamIndia has urged the US Securities Exchange Commission (SEC) not to impose fine on Satyam, now Mahindra Satyam, in view of irregularities as the company was also listed at the US regulator.Source: India Business News | Business News - Times of India | 15 Dec 2009 | 1:45 am Wipro ties up with Ariba to accelerate spend managementUnder the terms of a newly formed alliance, Wipro will leverage Ariba's on-demand sourcing solutions to help its clients drive procurement process efficiencies and savings.Source: Daily News & Analysis: Money News | 15 Dec 2009 | 1:44 am SC questions Centre over Spectrum rowThe Centre on Tuesday faced a tough time in the Supreme Court, which questioned the Telecommunication Ministry's decision to advance the cut-off date for allocation of 2G spectrum for new telecom operators.Source: India Business News | Business News - Times of India | 15 Dec 2009 | 1:36 am Moody's ups rupee rating outlook to positiveMUMBAI (Reuters) - Moody's Investors Services on Tuesday raised its outlook on rupee rating to positive from stable, citing the country's strong external position and resilience to the global credit crisis.Source: Reuters: Money News | 15 Dec 2009 | 1:32 am ADB urges caution in Asia against withdrawing stimulusMANILA (Reuters) - The Asian Development Bank raised its growth forecasts for developing economies in Asia on Tuesday, but warned against any hasty withdrawal of stimulus packages, saying they were still needed to ensure a solid recovery.Source: Reuters: Money News | 15 Dec 2009 | 1:21 am JSW Energy fixes issue price for at Rs 100 - Business Standard
Source: Business - Google News | 15 Dec 2009 | 1:21 am JSW Energy fixes IPO at Rs100 per shareNew Delhi: Private sector power producer JSW Energy Ltd has fixed the issue price of its public offer at Rs100 per share, at the lower end of its price band. For the retail individual investors, the issue price has been fixed at Rs95 a piece, offering a discount of Rs5 per share, JSW Energy said in a public announcement on Tuesday. Sajjan Jindal-promoted JSW Energy had hit the capital market with an initial public offer (IPO) to raise up to Rs2,700 crore, in the price band of Rs100-115 per equity share. The issue which opened on 7 December was subscribed about 1.67 times. The offer closed on 9 December. The equity shares offered through the IPO are proposed to be listed on the National Stock Exchange and the Bombay Stock Exchange. The company would use the IPO proceeds for investment in special purpose vehicles and repayment of corporate debt. The energy firm has an operational capacity of 860 MW with additional 2,790 MW capacity under construction and implementation stage. On Monday, the Mumbai-based realty firm Godrej Properties had fixed the issue price for its IPO at Rs490 share, also at the lower end of its price band. Godrej Properties’ IPO, which closed on 11 December, was subscribed four times. Source: LatestNews-Home - Livemint.com | 15 Dec 2009 | 12:58 am Bank employees to strike work Wednesday - Economic Times
Source: Business - Google News | 15 Dec 2009 | 12:38 am FMCG industry buries recession in fairness creamNew Delhi: As the global economic crisis consumed nearly every sphere of business, one industry held out against recession through 2009 by promising to help Indians look fairer, younger and their teeth whiter, kids stronger and taller, and toilets cleaner. Looks-conscious consumers propped up sales of FMCG (fast moving consumer goods) companies, which in turn rewarded loyalty by not raising prices of fairness, anti-ageing creams, bathing bars and their likes, although input costs rose in an economy ravaged by drought and then floods. Instead, they downsized the packaging to balance costs and margins. “The sector has coped well with recent challenges and grew by 15% over the last year,” says industry chamber Ficci. The FMCG market in the country is worth $25 billion (Rs1,20,000 crore). Year 2009 also saw modern retail format stores and aggressive marketing helped home-grown FMCG firms wrest market share from leader Hindustan Unilever Ltd (HUL), according to market research firm AC Nielsen. HUL’s share in the estimated Rs8,000 crore personal care market fell to 44.5% from about half last year, as others like ITC, Godrej and Wipro fought for space in markets like Uttar Pradesh, Bihar and Gujarat with a rural push, says AC Nielsen. Mergers and acquisitions were few and far between during the year, and Wipro’s Rs210 crore acquisition of UK-based Yardley’s overseas operations was a highlight. As for foods and beverages (F&B), the Indian market proved to be the growth driver for world’s biggest players like Coca-Cola and PepsiCo, even as their US parents grappled with falling sales. PepsiCo’s optimism in the Indian market was reflected in the global major holding its board meeting in India for the first time this year. The company has stepped up investments by another $100 million, from the $500 million announced last year for the next three years. Surging input costs remained a pain area this year for F&B firms in the foods and beverages segment, mainly on account of soaring sugar prices which doubled to almost Rs40 a kg in the national capital in a year. Companies like PepsiCo, Britannia, ITC and Parle seriously mulled increasing prices of products to mitigate the rising costs, but held back. Elsewhere, Dabur and Emami completed consolidation and restructuring post their respective acquisitions last year of Fem Care and Zandu Pharmaceuticals. While Wipro went premium with Yardley, FMCG firms went in for big push in rural areas, upbeat on the government’s thrust on agriculture and increase in allocation for rural jobs. HUL was also seen experimenting new measures to retain leadership position. It blocked whole-day TV air-time on Star and Zee, besides relaunching its skin cleansing portfolio that includes products like Lux, Liril and Breeze. It also pulled down price points to attract the mass market. Overall, the prospects of the FMCG sector remain good. According to Ficci, it has grown consistently during the last three to four years. The sector is expected to grow at 12-15% over the next three to four years. Source: Home - Livemint.com | 15 Dec 2009 | 12:33 am Rupee stronger but choppy shares limit riseMumbai: The rupee continued to trade stronger in afternoon session on Tuesday, buoyed by the dollar’s losses against some major units, but choppy domestic shares prevented further gains. At 1 pm, the partially convertible rupee was at 46.63/64 per dollar, off a high of 46.5750, but still stronger than its close of 46.705/715 on Monday. The dollar was subdued on Tuesday, pulling away from recent two-month high against the euro, with markets wary about what the US Federal Reserve would signal after its two-day policy meeting. Indian shares were trading 0.2% lower weighed by banks and financial stocks that dropped as higher-than-expected inflation for November triggered concerns the Reserve Bank of India (RBI) may start tightening liquidity soon. Dealers said the tax payments and expectations of monetary action by the central bank in the near future had pushed up dollar premiums in the onshore forward market. One-month forward premium rose as high as 11.25 points from 9.75 at the previous close. It had risen to 11.50 points on Monday, its highest since 16 October. In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at 46.6875 each, with the total traded volume on the two exchanges at a low $1.4 billion. Source: Home - Livemint.com | 15 Dec 2009 | 12:19 am India seeks legal commitments for developed nations to cut emissionsCopenhagen: With hopes for a far-reaching deal on climate change receding, India is making a strong pitch for extending the Kyoto Protocol beyond 2012 and commitments that legally bind developed countries to reduce emissions. The crucial talks at the climate change summit were suspended briefly on Monday following a walkout by the BASIC bloc, including India and China, protesting that the rich countries were making attempts to shirk responsibility in tackling global warming. The Africa group also boycotted the proceedings briefly. The talks resumed after the BASIC countries succeeded in extracting an assurance from the Chair that the summit would proceed in a “fully transparent” manner without any “surprises”. Environment minister Jairam Ramesh made it clear that the goal now is to produce two texts under the Long Term Cooperative Action (LCA) track and KP tracks by Wednesday or Thursday morning. The BASIC bloc and Africa want the developed countries to make mitigation pledges under the second commitment period from 2013-2018 but the European Union, Australia, Japan, Alliance of Small Island States (AOSIS) want a document broader than the existing Protocol that puts obligations on the United States and on emerging economies. Ramesh said that the President of the 15th Conference of Parties (COP) Connie Hedegaard had stressed that these two texts would be presented to heads of state when they arrive on 17-18 December, and also mentioned that Hedegaard had said that a document with minimal “brackets” (alternatives within the text) could also be adopted. “That is our expectation,” the minister said. “We have made clear that heads of state should not negotiate drafts or texts,” he said, adding that they had received reassurances from the President of COP 15, Denmark, Britain, US, Brazil and China but that Australia might still try to initiate negotiations between the world leaders. “It is also expected that there they will be some kind of Copenhagen Declaration prepared by the Danish government. “We hope that will be the result of a transparent consultative process and that it would not be sprung on us out of the blue,” Ramesh said. Meanwhile, environment secretary Vijai Sharma said: “We are hoping at this point of time because all the delegates are working hard and there is still some time left before the high level segment convenes and hopefully there should be good results on both the tracks.” The overall Climate negotiations are moving under two tracks - the first track is LCA under Bali Action Plan that requires parties to produce a legally binding treaty before the first commitment period of the Kyoto Protocol ends in 2012. Source: Home - Livemint.com | 15 Dec 2009 | 12:02 am Inflation soars to 4.78% in Nov on higher sugar, food product pricesLed by a 24.70 per cent spurt in the prices of manufactured food products (such as sugar, coffee and skimmed milk powder), the country's wholesale price index (WPI)-based inflation rose by a faster-than-expected 4.78 per cent in NovemberSource: Business Line - Home Page | 15 Dec 2009 | 12:00 am Retail investors stay away from most public issuesAggressive IPO pricing and poor post-listing performances have made retail investors extremely cautious thisSource: Business Line - Home Page | 15 Dec 2009 | 12:00 am Blow the whistle on fake drugs, and get rewardedIn a bid to put an end to the menace of spurious drugs being sold in the market, the Ministry of Health and Family Welfare has instituted a reward scheme for whistleblowers, whereby as much as Rs 25 lakh or 20 per cent of the value of theSource: Business Line - Home Page | 15 Dec 2009 | 12:00 am Coffee debt relief package headed for troubleThe debt relief package for coffee growers seems headed for trouble, with the Finance Ministry expressing concerns against the backdrop of growing fiscalSource: Business Line - Home Page | 15 Dec 2009 | 12:00 am Day Trading GuideNote: In a buy recommendation, the resistances would be the targets and the nearest support would be the stop loss; In a sell recommendation, the supports would be the targets and the nearest resistance would be the stop loss; The recommendationSource: Business Line - Home Page | 15 Dec 2009 | 12:00 am India tops Asian real estate investment marketsIndia leads the pack of top real estate investment markets in Asia for 2010, according to a study by PricewaterhouseCoopers (PwC) and Urban Land Institute, a global non-profit education and researchSource: Business Line - Home Page | 15 Dec 2009 | 12:00 am Gujarat NRE coke (Rs 65.7): BuyWe recommend a buy in the stock of Gujarat NRE coke from a short-term perspective. It is visible from the charts of the stock that it has been on an intermediate-term uptrend from its March low of Rs 16.8, making higher peaks and troughs.Source: Business Line - Home Page | 15 Dec 2009 | 12:00 am Dewan Housing offers loans at 8% fixed rateDewan Housing Finance Ltd (DHFL) is offering a fixed rate of 8 per cent for the first two years for all new loans up to Rs 5Source: Business Line - Home Page | 15 Dec 2009 | 12:00 am Talk of undersea cable network sale drags RComThe Reliance Communications counter witnessed selling activity on the bourses on Monday following a news report that the Mumbai-based company is looking to sell its undersea fibre optic network and US. networkSource: Business Line - Home Page | 15 Dec 2009 | 12:00 am Cardamom tops Rs 800/kg on demand, poor arrivalsCardamom prices continued to surge ahead on good demand and drop in arrivals at the auctions lastSource: Business Line - Home Page | 15 Dec 2009 | 12:00 am Nakheel: Islamic bond funds sent through paying agent - Reuters
Source: Business - Google News | 14 Dec 2009 | 11:55 pm Reliance pays Rs8.5 billion as Oct-Dec advance taxSecond-largest private lender, HDFC Bank paid Rs4 billion, compared with Rs3 billion a year ago, the sources, who did not wish to be named.Source: Daily News & Analysis: Money News | 14 Dec 2009 | 11:48 pm JSW Energy prices IPO at lower end, gets $579 millionThe 270-million-share IPO, which closed on December 9, was subscribed 1.7 times, with institutional investors making up for the shortfall in retail demand.Source: Daily News & Analysis: Money News | 14 Dec 2009 | 11:47 pm Google phone with T-Mobile contract in January: SourceGoogle Inc plans to sell two versions of its own-branded cellphone: one with a service contract with T-Mobile USA and another that is unlocked.Source: Daily News & Analysis: Money News | 14 Dec 2009 | 11:46 pm Sensex up 103 points in early tradeThe 30-share index Sensex rose by 102.92 points, or 0.61%, to 17,200.47 points with stocks of metals, realty and auto sectors leading the recovery. The BSE barometer had ended 21.48 points down in the previous trading session.Source: India Business News | Business News - Times of India | 14 Dec 2009 | 11:42 pm India eyes 2 4 bln from NTPC stake sale reportIndia aims to raise 110 billion rupees ($2.4 billion) from a stake sale in state utility NTPC, up from earlier plans of 82 billion rupees, by pricing the offer at a premium, the Economic Times reported on Tuesday.Source: HindustanTimes.com - Top Business News Headlines | 14 Dec 2009 | 11:40 pm Reliance Industries pays Rs 8.5bn advance taxReliance Industries has paid 8.5 billion rupees ($396 million) as advance tax for the October-December quarter, income tax department sources said on Tuesday.Source: India Business News | Business News - Times of India | 14 Dec 2009 | 11:39 pm Dubai sets up panel for Dubai World debt settlementThe tribunal will hear and decide any demand or claim against Dubai World, including any demand to 'dissolve or liquidate' the state-owned corporation.Source: Daily News & Analysis: Money News | 14 Dec 2009 | 11:37 pm INTERVIEW - Russian-Indian M&A pact aims at bulge bracketMOSCOW (Reuters) - A Kazakh resources company wants to buy African mining assets. Where does it go for advice - London, New York or Hong Kong?Source: Reuters: Money News | 14 Dec 2009 | 11:36 pm Indian bond yields edge up on inflation worry - Economic Times
Source: Business - Google News | 14 Dec 2009 | 11:35 pm RIL pays Rs8.5 bn Oct-Dec advance taxMumbai: Energy major Reliance Industries Ltd (RIL) has paid Rs8.5 billion ($396 million) as advance tax for the October-December quarter, income tax department sources said on Tuesday. The firm had paid an advance tax of Rs4.5 billion a year ago, the sources said. Second-largest private lender, HDFC Bank paid Rs4 billion, compared with Rs3 billion a year ago, the sources, who did not wish to be named, added. Indian regulations require a certain percentage of tax payable for the fiscal year to be paid in advance in each quarter. Source: Home - Livemint.com | 14 Dec 2009 | 10:26 pm Boeing set for first flight of 787SEATTLE (Reuters) - Boeing Co is set to make the first test flight of its 787 Dreamliner on Tuesday, almost two and a half years after the new, fuel-efficient plane, which is key to the company's financial future, was supposed to leave the ground.Source: Reuters: Money News | 14 Dec 2009 | 10:17 pm Dubai bailout, Exxon deal push Wall St to 14-month highNew York: US stocks closed at 14-month high on Monday as Abu Dhabi’s $10 billion in aid to help Dubai avoid default eased concerns and a takeover deal by Exxon Mobil Corp raised optimism about mergers and acquisitions activity. Citigroup Inc’s plan to repay the US government about $20 billion in bailout funds also helped buttress the buoyant mood a week after Bank of America fully repaid its $45 billion government loan. Exxon Mobil said it would buy natural gas supplier XTO Energy Inc in an all-stock transaction valued at about $30 billion, excluding debt. Abu Dhabi said on Monday it will provide Dubai $10 billion in bailout money, with $4.1 billion for payment on a maturing bond. “It certainly eases the strain on European banks and that, in turn, increases confidence in the financial system in general,” said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois. “We’ve seen in the last 18 months how these things can spiral out, if you will, from what appears to be well contained to envelop firms all over the world.” The Dow Jones industrial average gained 29.55 points, or 0.28%, to end at 10,501.05. The Standard & Poor’s 500 Index rose 7.70 points, or 0.70%, to 1,114.11. The Nasdaq Composite Index climbed 21.79 points, or 0.99%, to close at 2,212.10. The closing levels for the Dow and the S&P 500 represent 14-month high, while the Nasdaq ended at its highest level in 15 months. Citigroup laid out a plan to repay the money it owes the US government, including raising money by selling $17 billion of common stock immediately, as the bank looks to end the restrictions on executive pay that came with the funds. Citi’s stock slumped 6.3% to $3.70. Shares of XTO surged 15.4% to $47.86. In contrast, Exxon Mobil shed 4.3 percent to $69.69 and ranked as the top drag on the Dow. The NYSE Arca Natural Gas index gained 4.5%. The First Trust ISE-Revere Natural Gas Index Fund, an exchange-traded fund of natural gas companies’ shares, rose 5.3%. XTO has underperformed that ETF by roughly 14% this year. Sun Microsystems Inc shares jumped 11% to $9.28 on Nasdaq after European Union regulators signaled they could clear Oracle Corp’s $7 billion takeover of Sun after Oracle promised measures to ease competition concerns. Oracle’s stock rose 2.3 percent to $23.31. Visa Inc shares rose 4.2% to $84.77 on the New York Stock Exchange after ratings agency Standard & Poor’s said late Friday the credit card company will replace telecommunications equipment maker Ciena Corp in the S&P 500 after the close of trading on 18 December. S&P also said Bristol-Myers Squibb’s spin-off, Mead Johnson Nutrition Co, will relace bond insurer MBIA Inc in the S&P 500 on the same date. Mead Johnson shares climbed 1.8% to $43.23. Volume was light on the New York Stock Exchange, with only about 1.07 billion shares changing hands, below last year’s estimated daily average of 1.49 billion, while on the Nasdaq, about 1.85 billion shares traded, below last year’s daily average of 2.28 billion. Advancing stocks outnumbered declining ones on the NYSE by a ratio of about 3 to 1, while on the Nasdaq, about two stocks rose for every one that fell. Source: LatestNews-Home - Livemint.com | 14 Dec 2009 | 10:09 pm Oil steady under $70 after 9 days of fallSingapore: Oil was steady below $70 a barrel on Tuesday, after slumping for a ninth straight session the previous day to an 11-week low on persistent worries over hefty stockpiles and sluggish demand. Traders will scour the US weekly oil inventory report from the American Petroleum Institute (API) to see if stockpiles continue to rise, and a slew of economic data, including November industrial output figures, for clues on the health of the world’s largest economy. Oil prices fell more than $8 a barrel from 1-14 December in the longest price slide since July 2001, as rising inventories in the United States cast doubts over the pace of demand recovery in the world’s top energy consumer. Stocks at Cushing, Oklahoma, the delivery point for NYMEX WTI crude futures, have swelled by 7.8 million barrels in the last six weeks to 33.4 million barrels, putting pressure on WTI for near-term delivery as concerns grew over an oil glut in the US Midwest. The US Federal Reserve’s monetary policy decision, to be announced on Wednesday after a two-day meeting, will also be closely watched. Interest rates are expected to stay unchanged at near zero, but the tone of any comments made will be analyzed for clues as to when the Fed might start tightening policy. Crude for January delivery rose 29 cents to $69.80 a barrel by 0230 GMT, after settling down 36 cents at $69.51 on Monday, the lowest settlement since Sept. 29. London Brent crude was up 9 cents at $71.98. “We’ve seen an extremely modest rebound in oil so far, after nine straight sessions of losses, and the downside is still very much intact,” said Michelle Kwek, an analyst with Informa Global Markets in Singapore. “Normally, demand perks up during the winter, but so far, demand has been abnormally weak, and this has been a major concern. We could see oil heading down towards $65,” she added. The recent slide in U.S. crude prices could trigger further selling, as oil prices plummet through technical support levels, analysts said. US heating demand this week may not provide much price support. The National Weather Service estimated that demand for heating oil - the favoured heating fuel of the Northeast United States - would be about 1.3% below normal this week. On the supply side, US crude inventories were expected to have fallen by 2 million barrels last week, according to a preliminary Reuters poll of analysts. Distillate stocks probably fell 700,000 barrels, while gasoline stocks were seen up by 1.1 million barrels. The US Energy Information Administration (EIA) will release its own inventory figures on Wednesday. The Organization of the Petroleum Exporting Countries is (OPEC) expected to hold production targets steady at its next meeting on 22 December. OPEC has been quietly putting more oil on the market since April, as prices rallied from below $33 a barrel last December. On a brighter note, economic data due later could show that the US economy is on a slow and patchy road to recovery. The Federal Reserve will unveil November industrial production and capacity utilization data at 1415 GMT. Economists forecast a 0.5% increase in output, up from a 0.1% rise in October, while capacity utilization is expected to rise to 71.1% from 70.7% in October. Source: Home - Livemint.com | 14 Dec 2009 | 10:05 pm Rupee up 12 paise at 46.60 a dollar in early tradeThe rupee today appreciated by 12 paise to 46.60 against the US currency in early trade, after remaining weak for two days, as the dollar weakened against other major currencies.Source: India Business News | Business News - Times of India | 14 Dec 2009 | 9:36 pm Exxon Mobil to buy XTO Energy in big U.S. gas betNEW YORK/HOUSTON (Reuters) - Exxon Mobil Corp plans to buy XTO Energy Inc for about $30 billion in stock, in a move that thrusts the U.S. energy giant to the forefront of North America's fast-growing natural gas industry.Source: Reuters: Money News | 14 Dec 2009 | 8:50 pm What makes Indian entrepreneurs tickA new survey by the Legatum Institute, an independent think tank based in London, shows how entrepreneurs in India view the economy, what they rate as important factors affecting its future growth, and how they assess their own business prospects. The findings of the survey, which polled a total of 2,357 individuals, reflect optimism about India’s future, with a majority believing that the country is a good place for entrepreneurs to succeed. Also See Thinking of India overall, do you think it is a good or bad place for entrepreneurs to succeed? (Graphics) According to the survey,whose findings were shared with Mint, 84% say they believe India is headed in the right direction and 87% that the country will be stronger economically in five years. The two most important factors affecting India’s future growth, the survey shows, are making the government more business-friendly and cleaning up corruption. Family is the main source of the entrepreneurial spirit and start-up funds in an economy where entrepreneurs swear by ‘jugaad’, the Hindi word meaning ingenuity, often used to bypass stifling rules and corrupt practices, the survey says. “Future iterations of the survey will allow India’s business leaders, policymakers and thought leaders to track trends and understand how changes in the larger economy are affecting India’s entrepreneurial population,” says the Legatum Institute. Survey is done by Legatum Institute Graphics by Sandeep Bhatnagar/Mint Source: LatestNews-Home - Livemint.com | 14 Dec 2009 | 8:40 pm RBI may take harsh steps as prices soarThe rate of inflation shot up to a 10-month high of 4.78% during November, against just 1.34% in October, largely on account of rising food prices.Source: India Business News | Business News - Times of India | 14 Dec 2009 | 7:08 pm Post online-CAT disaster, iims plan to switch to Foss - Economic Times
Source: Business - Google News | 14 Dec 2009 | 4:08 pm A month to the marathon With 11,000 people running the half marathon in Mumbai on 17 January and 3,000 more running the marathon, the numbers are steadily increasing from the 3,000 half-marathoners and 800 marathoners who ran in the first Mumbai marathon in 2004. Most of the runners are not professional athletes. Many began running just three or four years ago. They work long hours, just like you, in high-pressure jobs. Listen to coach Savio Desouza from Mumbai, who tells us why running in a group is the best way to train for a marathon That profile fits these three Mumbai CEOs we spoke to. They are going after their personal marathon goals with the same dedication that they bring to work. And perhaps you could take a page out of their book as you train for your run this year. Or find inspiration to follow in their footsteps next year...  Executive director, Great Eastern (GE) Shipping Co. Ltd, and managing director, Greatship (India), GE’s overseas offshore oilfield services subsidiary Began running: In August 2005. Sheth ran his first half marathon in Mumbai in 2006 and has participated regularly in the half marathons in Delhi and Mumbai ever since. Motivation: “I enjoy running outdoors. I do sometimes run on a treadmill, but I don’t really enjoy it. When I run, the whole day goes on great. You feel energetic, you feel alive. Nothing will give you the high you get out of a good run.” Training schedule: He runs three days a week (Mondays, Wednesdays and Fridays), at 6am. On Mondays, his 9-10km run begins at the National Centre for Performing Arts (NCPA), Mumbai. On Wednesdays, he interval trains (warming up, cooling down and running slower in between fast runs) in Mumbai’s Priyadarshini Park, running a fast 8km, with an additional 2km at a slower pace. Fridays is typically a long run, beginning at NPCA for 12km in the first week of training, then increasing the distance each week until he’s running 21km to Worli, till Mela restaurant. Sheth continues to train all year round. Once the marathon is over, he will pace down to smaller runs of 9-10km three times a week, going down to 8-9km through the summer; then up to 12km in the monsoon, until he starts training for the next marathon. Next year, he also plans to run the Paris marathon on 11 April. So training till then will be more rigorous, with fewer small runs. Sheth plans to run at least three half-marathons a year in future. Breakfast bowl: Sheth does not eat before his morning run. His after-training breakfast consists of a two-egg-white omelette. Running gear: Saucony’s running shoes. Also, having an iPod while running is a must, and he listens to “Bollywood, Hollywood, anything to keep me going”. Team support: Sheth’s love for running has encouraged his colleagues to take up the challenge too: 35 of GE Shipping’s 240 employees will run the 21km Mumbai Marathon next month. The extra mile: Sheth avoids alcohol for five days before the marathon. Elsie Nanji, 53 Managing partner, Red Lion (a special creative unit of Publicis India)  Motivation: “Basically, you need to love running. It’s almost an addiction. It makes me feel I have achieved something. Every time I run a long distance (race), I feel I can now conquer anything. For me, it’s really a big thing to finish the 21km; it’s a test of your own mind. After the 18km you really feel like death, but you just tell yourself you have to do it.” Training schedule: Initially Nanji could run only 4-5km at a time. “I thought that’s my age and all,” she says. But after joining a running group with coach Savio D’Souza (see left), she found her distances and timing increasing. “Savio said, ‘Rubbish, it’s nothing to do with your age. You can do it’,” she says. “And then I saw a girl, (a) little older than me, always winning the gold medal. I said, if she’s there and she can do it, I can try. So I gradually increased my distance.” For the last three years, Nanji has been training four months a year leading up to the Mumbai marathon in January. Her schedule begins at 6am, but the programme varies over the week. Her running group trains on Mondays, Wednesdays and Fridays. On Mondays, they do a 9-10km run. Wednesdays are spent in interval training: high-speed runs alternated with jogging or walking, covering a distance of 8km. Fridays are reserved for the long run, beginning with 12km in October and gradually increasing the distance every week till she hits 18km. Between the running days, she practises yoga on Tuesdays and Thursdays. Nanji spends the weekends at her house in Kashid, near Mumbai. Here she swims, does yoga and runs on the beach daily. Breakfast bowl: A banana and a spoonful of honey before running. A big breakfast after the run: a bowl of porridge, an omelette made with two egg whites, fruit juice, a bowl of papaya, almonds and tulsi chai (holy basil tea). Running gear: A pair of blue-and-white Nike LunarGlides. Nanji finds these shoes, each of which weighs only 75g, incredibly light. No other special gear, “except of course my iPod—I’m lost without it”, she says. Team support: Not many people at Ambiance Publicis or Red Lion run. Or even Nanji’s family. “My husband and two kids think I’m a bit crazy with all this running.” The extra mile: No more socializing at night in the four training months before the marathon. Nanji says, “If you’re getting up at 5.30am, you need to sleep latest by 11pm. So all my friends know I won’t be going out at night anywhere before the marathon.” V Vaidyanathan, 41 Managing director and CEO, ICICI Prudential Life Insurance Co.  Motivation: Vaidyanathan runs for charitable causes. The Mumbai marathon website lists Vaidyanathan as one of the largest contributors to charity. “Every time I run, I run for a charity,” he says. “I am supporting three charities—Bal Asha Orphanage, Sankara Nethralaya and Apnalaya.” Vaidyanathan raised Rs13 lakh last year for his charities. Training schedule: Vaidyanathan runs four days a week, all year round. It’s always in the morning, as he says, “Any corporate executive’s life is busy—work pressure...and so on. But mornings are usually in our control. I never bank on evenings (for training or exercising), because (time) may not be in our control.” Vaidyanathan starts early on weekdays, at 6am, irrespective of how much sleep he’s gotten the night before. He goes running any three weekday mornings. The other two days, he says, he often ends up travelling or going into office early. On his run days, Vaidynathan starts at 6.30-7am, covering a distance of 5-7km. This is followed by half an hour of weight training. Sundays begin earlier, at 5.30am, with a 21km run from NCPA to Worli Sea Face in Mumbai. Breakfast bowl: Milk, oats and fruit. Vaidyanathan says he avoids junk food and has a high-protein diet. He does not smoke or drink. Running gear: Any good running shoes work for this CEO. He says brands don’t really matter. One thing he cannot run without is an iPod. Team support: Many employees of ICICI PruLife have now taken up running and will be participating for the Mumbai Marathon. Vaidynathan believes, “Running makes fitter employees and gives them discipline. It’s good for everybody.” The extra mile: Discipline and commitment. “There’s no secret to running the marathon,” he says, “It’s an overall discipline. Don’t smoke. Don’t drink. Wake up at 6am. And run. Frankly, it’s not such a big deal. (If) you go overseas, you find significantly busy people who have a sports streak. If the president of the US can play basketball and golf, why do we make such a big deal about finding the time for sports?” Write to us at businessoflife@livemint.com Source: LatestNews-Home - Livemint.com | 14 Dec 2009 | 12:45 pm The stockbroker’s weight-loss plan In my practice in the last year or so, I found many stockbrokers turning up at my door. With the markets down, the recent recession seemed to have turned many a stockbroker’s attention to his personal stock: health. I got to understand what makes a stockbroker tick, and how many of them use tricks of their trade to succeed at weight management. One of my clients—stockbroker Rajesh, let’s call him—showed me that successful weight management needs, first and foremost, a high level of commitment and a steady game plan. Here is how he applied the rules of his working life to his weight-loss plan. Defined mission A mission or a set goal recruits the deepest powers of the brain and helps a person to experience their goal at an emotional level even before they achieve it. When the brain believes that you mean business, it easily persuades the body to attain its mission. Half the battle is won at this stage. Most people come in seeking clarity from me rather than knowing what they want. They always have ready excuses about why they just can’t lose weight. But Rajesh was very clear about what he wanted even before he stepped in to meet me, and backed it up with the resolve to accomplish it. I wasted no time with him: Our meetings were crisp, to-the-point and effective. Your goal may be to lose a couple of inches or a few kilos, but it helps tremendously if you frame your mission as clearly as possible: “Three months from now, on such-and-such date, I will wear my size 30 jeans”. That’s a sight you can visualize, and work towards.  On the money: If you’re never careless with cash, why care less about your health? Rajesh had a clear idea of what he could or couldn’t do. This made it easier for me to customize diets for him. In turn, he adhered to a programme because he had agreed to the agenda in the first place. As a nutritionist, I can work around the demands of a client—that he or she cannot eat dinner at the ideal time, that he or she has to eat out twice a week for work, and so on. But if someone doesn’t recognize their limits, failure is inevitable. Quick action After our first meeting, Rajesh put his health plans into action at once. The first thing he did was to make a shopping list and buy every single thing on it. Procrastination is the enemy of success, and an excuse in itself. Dodging obstacles Rajesh breezed through obstacles. For him, unexpected and time-consuming family obligations which interfered with his diet plan were to be dealt with in the best possible way, and that was that. No grumbling, brooding, worrying, complaining about how impossible it was to stick to the plan. He’d just move on and get on with the plan from where he left off. Active participation I realized early in my dealings with Rajesh that it was I who needed to be on my toes to deal with someone for whom split-second decision-making skills were so honed that they were a reflex action even when it came to learning weight management and taking health decisions. Rajesh was always well prepared for each meeting. I was always answering long lists of questions, having to go back to my hefty nutrition texts for reference, to review and refresh my learning as well. Total dedication Rajesh maintained his appointments like clockwork. This made it difficult for me to cancel on him. Lasting weight loss can be best achieved when the intellect is involved. A programme followed mechanically is a diluted one and offers slipshod benefits. So if you have a weight-loss target to meet, try attacking it like a sharp stockbroker and you should reap the rewards. Madhuri Ruia is a nutrition specialist, functional health and Pilates expert, and founder, HALF, Mumbai’s first functional health studio. This is the first of her fortnightly columns on weight management. Write to Madhuri at dietdesk@livemint.com Source: LatestNews-Home - Livemint.com | 14 Dec 2009 | 12:45 pm Markets rejoice Abu Dhabi to aid DubaiStock markets around the world responded positively to Abu Dhabi agreeing on Monday to give its financially strapped neighbour Dubai $10 billion as emergency funds. In the United Arab Emirates, the markets surged. Source: HindustanTimes.com - Top Business News Headlines | 14 Dec 2009 | 12:42 pm RIL set to decide on LyondellBasellIndia’s most valuble company, Reliance Industries Ltd (RIL), is expected to take a call within a day on whether to submit a final proposal to acquire bankrupt petrochemicals maker LyondellBasell Industries AF, according to people familiar with the situation. Mukesh Ambani-controlled RIL had submitted a non-binding proposal of $10-12 billion (Rs46,700-Rs56,040 crore) on 21 November for Rotterdam, Netherlands-based LyondellBasell. A decision on the final bid is contingent on the inputs received from a team of senior RIL executives who had been working on the deal in the US. The people familiar with the situation, who spoke on condition of anonymity, said the executives have since returned and new facts they have gleaned about the target firm may influence the final decision on the bid. For example, while LyondellBasell’s debt is at $27 billion, RIL is believed to have learnt that many of its creditors have a right to increase interest rates, which they have to almost 12%. The people say that while talks have been under way with creditors, debt of this magnitude and cost has to be renegotiated before the company can submit a binding final proposal. Shutting down LyondellBasell’s old facilities in the US and Europe could be messy and there are concerns related to integration and management issues given that RIL does not have a track record of major overseas ventures of this scale. The management as well as promoters of LyondellBasell have made it clear over the last few days that they are not interested in losing control of the company. LyondellBasell submitted a revised proposal last week to a US bankruptcy court aimed at taking the company out of bankruptcy proceedings. The people familiar with the situation also said that RIL was not keen on a hostile takeover of the firm. cnbctv18@livemint.com Source: LatestNews-Home - Livemint.com | 14 Dec 2009 | 12:20 pm Brokers make most of carbon creditsIndia Inc sells a third of carbon credits to middlemen at low rates.Source: Business Standard | Front Page Headlines | 14 Dec 2009 | 12:11 pm Infra firms may get MAT reliefThe government is likely to ease the incidence of minimum alternate tax, or MAT, on infrastructure companies. The department of revenue plans to change the proposed direct tax code to exempt these companies from MAT for the first few years since they execute projects with long gestation periods.Source: Business Standard | Front Page Headlines | 14 Dec 2009 | 12:10 pm Climate talks hit turbulence as LDCs walk out, agree to returnThe crucial climate talks were suspended for a while today, after India and other emerging nations walked out protesting that the rich countries were making attempts to shirk responsibility in tackling global warming.Source: Business Standard | Front Page Headlines | 14 Dec 2009 | 12:09 pm RIL woos Lyondell creditors as mgmt fights backNew York bankruptcy court to hear former owners updated rescue plan today.Source: Business Standard | Front Page Headlines | 14 Dec 2009 | 12:06 pm Resurgent India Inc pays more advance taxIndia Inc seems to have posted a healthy performance so far this financial year if advance tax payments for the third quarter of 2009-10 are any indication.Source: India Business News | Business News - Times of India | 14 Dec 2009 | 12:03 pm Making our institutions workMarkets propel growth. Therefore, markets are good. But markets without institutions to guide them are not. When markets move ahead of institutional capabilities, economies become unequal and unstable. The world has learnt this lesson again in the recent financial and economic crisis. Therefore, reforms to enlarge markets with private capital, property rights and free trade must always go hand-in-hand with the building of requisite institutions, as Dani Rodrik reminds policymakers in One Economics, Many Recipes: Globalization, Institutions, and Economic Growth. The question before policymakers in developing countries is no longer whether institutions matter, but which institutions matter and how does one acquire them. Firstly, “institutions”, as Douglass North and others have pointed out, are not merely “organizations” such as commissions and ministries. More broadly, they are processes, behaviour rules and norms that enable societies to function. Secondly, institutions that countries need for their development are not static houses in which they live but moving vehicles in which they get from point A, where they are, to point B, the goal of their progress.  Illustration: Jayachandran / Mint India must develop institutional capabilities to accelerate inclusive and sustainable growth that fit its own needs. Therefore, the meta-institutional capability that it needs, as do all countries, is the ability to learn and to evolve its own institutions and policies. It must feel the stones under its own feet while crossing the river, to use a Chinese expression, and thereby know the reality it stands on and sense what may be ahead. Industrial policy Consider industrial policy. The task of shaping industrial policy is to elicit information on significant externalities and their remedies. As it advances and grows, the productive sector bumps into the constraints in the economy: It feels the stones underfoot, or the “pinch in the shoe”. The lesson from Asian countries that have rapidly grown strong industries in the last century is that policymakers must work closely with industrial managers to solve problems in the production sphere. In Japan, MITI and the Keinderan worked together; in Korea, government and the chaebol; in China, the party and state-controlled enterprises. In its own way, each produced an institutionalized process of collaboration that created policies resulting in competitive industries. In a world in which not only companies, but states and countries, too, are rated on their competitiveness by international agencies, and one in which all must strive to climb that scale, the only sustainable source of competitive advantage can be a company’s or country’s ability to learn, change and improve faster than any potential competition. Therefore, a country’s competitive ability lies in the capability of the collaborative process between producers and pol-icymakers to produce effective policies and not on any particular policy. India cannot copy the collaborative process used by China, Korea or Japan. Its circumstances are different and times have changed. Those countries may have set aside labour rights and environmental concerns— by today’s standards—in their pursuit of industrial growth. India in the 21st century must not. Moreover, those countries protected and promoted domestic companies. Again, 21st-century India may not. Nevertheless, Indian policymakers must improve competitiveness and growth of industry. The processes that will enable them to do so will include consultations not only with large domestic companies, which has characterized the Asian giants so far. The consultations must involve those who represent labour rights, land owners and concerns for the environment; also, small-scale industries that generate more employment and thus more “inclusive” growth; and even foreign companies whose investments and technologies can help India. India has to innovatively create a process for consultation and consensus-building that works well and fast. It is to the design and development of this process that policymakers and stakeholders in the country’s progress must apply themselves if they wish to find policies that will propel inclusive and sustainable industrial growth in India. Should India succeed, as it must, the description of that process (which will be different to China’s and the others) and the policies that it will produce (which cannot be known ex ante) will be added by future economic historians to their list of successes in economic development. Soft infrastructure India has to catch up with China to provide industry the hard infrastructure needed to improve competitiveness: roads, ports, railways and so on. As Indian industries grow, and as productivity of its agriculture improves, urbanization will accelerate. It is expected that, over the next 25 years, another 300 million people will be added to the 300 million now living in our towns and cities. They will further strain the creaking urban infrastructure. More than roads and flyovers, the infrastructure these millions will need, most of whom will not own cars, is basic services of water, sanitation, sewerage, decent housing and electricity. It is estimated that Rs300,000 crore per year will be required over the next 20 years to provide these services. The government will be very hard put to budget so much money. Private capital will have to be attracted. Therefore, there must be markets for such services, and people must be willing to pay what they cost. Since simplistic schemes of privatization have not worked, even in developed countries, innovative ways to introduce market ideas into the provision of basic urban services must be found, and into universal education and healthcare, too. Here too, as in industrial policy, the path of change must be discovered by consultations between the principal stakeholders. The challenge in “public-private partnerships” is often seen, too narrowly, as the framing of good and legally enforceable contracts between government agencies and private business interests. Whereas for the contracts to be socially and politically acceptable, there must be consultation with the people involved too, a lesson learnt in the drive to create special economic zones in India that began to stall. The conclusion is that framing of industrial and urban policies, also the building of “hard” industrial and urban infrastructure, require good processes for consultation and consensus amongst the key constituents of society involved. The most successful corporations know that a clever strategy is useless unless it can be implemented. Therefore, they focus on the processes of transformation and change management, to which they apply the best available techniques and tools. In a democratic society, the language of inclusion and equity must be spoken along with the language of efficiency, engineering and economics. Economists and engineers have the expertise to design economically viable policies and the hard infrastructure that countries need. The soft infrastructure requires expertise in processes of change and societal learning. It is imperative for India to be the world’s master at these processes. This imperative has to be converted into plans and actions to develop, acquire and apply tools and expertise for these processes. Such schemes must be at the core of India’s strategy for more rapid, more inclusive and more sustainable growth. Arun Maira is a member of the Planning Commission. Comment at theirview@livemint.com Source: LatestNews-Home - Livemint.com | 14 Dec 2009 | 12:03 pm Remembering Paul Samuelson and his ideas The year 1941 was a placid one for economics. John von Neumann and Oskar Morgenstern’s Theory of Games and Economic Behavior was three years away. Kenneth Arrow’s Social Choice and Individual Values 10 years distant. Gerard Debreu’s Theory of Value lay 18 years in the future. The senseless blurring of lines between mathematics and economics, a distant dream. In a sense, Samuelson unleashed this storm. But all along his career, he never indulged in mathematics as an end in itself. To the end, he remained a careful consumer of mathematical ideas. So what should he be remembered for? The Nobel committee statement said it best when he was awarded the prize in 1970 “for the scientific work through which he has developed static and dynamic economic theory and actively contributed to raising the level of analysis in economic science”. That is a general statement. There are four areas of Samuelson’s work for which he will always be remembered. THE TEXTBOOK Generations of students have learnt their first faltering lessons in economics from his book Economics: An Introductory Analysis. First published in 1948, it has been translated into 40 languages and has sold millions of copies worldwide. It is currently in its 19th edition. It is a model of clarity and careful exposition of ideas for those on a journey of discovering economic ideas. It did more to convince people about the value of free markets (and ideas) than anything else. There is an interesting story about the book. Alexander Gerschenkron, a Harvard economist, recounted how Economics was translated into Russian. Impressed with its success, Soviet authorities secretly had the book translated. An undergraduate text, it was elevated to a graduate one so as to protect the students from “false” ideas. Many parts of the book (especially on classical thinkers such as Malthus and Marx) were censored. Copious notes were added to “clarify” matters and Samuelson declared a bourgeois thinker. In the end, the book survived, not the Soviets. …AND THE MARXISTS Most economists find it hard to fathom Marxian economics. Apart from a very different worldview, Marx’s texts are a study in denseness. But a one-line version of it is this: Workers create “surplus value” that is “appropriated” by capitalists, leaving the former high and dry. His original explanation is in terms of “values”, a somewhat metaphysical concept (Amartya Sen said as much). He promised to later show how values could be converted into prices, the modern metric of measurement. He never could. Despite this grave weakness in his schema, Marxists have clung to his framework. Enter Samuelson. In two papers, Wages and Interest: A Modern Dissection of Marxian Economic Models (1957) and Understanding the Marxian Notion of Exploitation: A Summary of the So-Called Transformation Problem Between Marxian Values and Competitive Prices (1971), he laid bare the fatal weakness of Marxian economics. Marx’s procedure to “transform” values into prices was nothing more than an “eraser theorem”. One simply wiped off the wrong values that were obtained because of an erroneous calculating procedure. Samuelson showed that equality between values and prices was possible only in very rudimentary economies such as those of hunters and gatherers. SICK MIXED ECONOMIES In developing countries, the distinction between public and private goods is lost sight of during the development process. By definition, one person’s consumption of a public good does not reduce its availability to others. Examples include clean air, equality of opportunity and security of life and property, among others. This is different from consuming a loaf of bread: One person’s consumption will only reduce what is left for another person. Governments often forget that. Electricity, potable water, public transport, fuel and a large number of other goods are transformed from private into public goods. In three papers in the 1950s, Samuelson showed how this distinction could not be erased. There were fundamental barriers in eliciting the preferences of citizens. There is no market-based mechanism to find these preferences. In its absence, voting with one’s feet is the only way to find this out. This is what governments assume when they come to power with votes. But because price discovery is well-nigh impossible, losses, shortages and discontent are the result. …AND A GLOBALIZED WORLD No discussion of Samuelson’s life can be complete without his work on international trade. If there is one truth in economics, it is that trade between countries is beneficial. His work along with Wolfgang Stolper led to a famous result. A relative rise in the price of a product will lead to higher returns to the more intensively used input in making the product. A higher price for Toyota cars can lead to higher wages for Japanese workers. Techies in India get more money as the demand for IT services goes up. He also showed that gains from globalization could be had without moving from one country to another. In that sense, he is the father of some powerful motivating ideas behind globalization. Comment at views@livemint.com Siddharth Singh is deputy editor (views) at Mint Source: LatestNews-Home - Livemint.com | 14 Dec 2009 | 12:00 pm Pawan Ruia buys German coCity-based Ruia Group has acquired the assets of Germany's Henniges Automotive Grefrath. Henniges was on liquidation following the recession in Europe.Source: India Business News | Business News - Times of India | 14 Dec 2009 | 11:56 am Investors continue to pull out of equity MFsThe equity category witnessed outflows for the fourth consecutive month. Net outflows from equity MFs came at Rs 1109 crore, data with the Association of Mutual Funds in India shows.Source: India Business News | Business News - Times of India | 14 Dec 2009 | 11:51 am IT stocks get upgraded further  Graphics: Yogesh Kumar / Mint They are quick to point to the improving economic data in developed countries, and are particularly enthused by the data released last week in the US. Retail and auto sales are much better, while unemployment numbers have also improved, leading to a view that a recovery is well on the way. All this is expected to result in a revival in IT spending. In 2009, global spend on IT is estimated to decline by 6-8%, despite which Indian IT firms did reasonably well to report a quarter-on-quarter growth in revenues in the September quarter. Analysts who attended recent conferences held by Infosys and Wipro say that the body language of executives at IT companies has improved considerably, confirming their view that a sharp recovery is on the horizon. News flow is expected to be largely positive, which will help sentiment for IT stocks. Besides, investors in IT don’t have to worry about the increasing inflation in the domestic economy as investors in some other sectors have to. But while there’s little doubt that things have improved considerably, investors seem to be a little far too ahead of the curve, going by valuations of IT stocks. At 22 times one-year forward earnings, there’s little room for error. If, for instance, the rupee were to appreciate sharply, earnings estimates would have to be revised downward. Write to us at marktomarket@livemint.com Source: Home - Livemint.com | 14 Dec 2009 | 11:49 am RCOM to sell FLAG capacityReliance Communication is in talks with large global players to sell a part of excess bandwidth in its global under-sea fibre optic cable network.Source: India Business News | Business News - Times of India | 14 Dec 2009 | 11:45 am Inflation at 4.78%, highest in 10 monthsNew Delhi: Soaring food prices pushed inflation to a 10-month high, putting pressure on both the government and the central bank to react.  Graphics: Sandeep Bhatnagar / Mint The government decided on 19 October to replace its weekly inflation data releases with monthly ones, though it continues to provide weekly inflation numbers for sensitive items on the index, such as food and fuel. There were large increases in the wholesale prices of cereals (13.57%), pulses (35.22%), vegetables (16.92%), especially potatoes (101.58%) and onions (32.41%). The price of sugar also increased by 53.76% during the month. However, prices of commodities such as minerals and iron and steel, which have higher weight in the Wholesale Price Index (WPI), declined from their last year’s level by 2.26% and 11.66%, respectively. Both finance minister Pranab Mukherjee and commerce minister Anand Sharma said on Monday that rising inflationary pressure, particularly in food items, is a “matter of concern”. Inflation, which remained negative during June-August due to a high base, returned to positive territory in September. The weak monsoon rains this year, 23% lower than average and the weakest since 1972, have harmed agricultural production in many parts of the country and stretched food supplies. However, a better rabi crop is expected to ease pressure on food prices. P.K. Padhy, senior economic adviser at the department of industrial policy and promotion, which is responsible for releasing the WPI data, said the current trend may continue for some time. “The increase in inflation is mainly due to higher food prices. Prices of manufacturing products have also started going up though it is not alarming as yet. This trend may continue for some time though prices of some food items like vegetables may come down by next month,” Padhy said. Finance secretary Ashok Chawla said the government is concerned about rising inflation, but there is no need for any emergency action at this stage.  Growing pains: A file photo of vendors at Azadpur mandi, Delhi. The government’s inflation data shows big increases in wholesale prices of vegetables (16.92%), especially potatoes (101.58%) and onions (32.41%). Ramesh Pathania/Mint “So, it is not as if we are taken by surprise or there is any cause for any special emergency action,” Chawla added. Citigroup India in an advisory released on Monday raised its inflation forecast to 8% from its earlier projection of 6%, “if the current sequential uptrend is maintained”. RBI in its second quarter review of monetary policy 2009-10 in September has projected that baseline WPI inflation will touch 6.5% “with an upward bias”, up from the 5% forecast in its first quarter review in July. However, analysts call for urgent policy response. “Food (price) is crucial in any economy, especially in the Indian economy. The present high food inflation calls for immediate increase in (food) subsidy and strengthening of the public distribution system. Government may also liberalize import of certain food items so that supply is increased,” said Gurbachan Singh, economist and professor at Jawaharlal Nehru University. “Whether the present price rise is a structural problem or a short-term phenomenon requires further study and data analysis,” Singh added. The Prime Minister’s economic advisory council in its economic outlook for 2009-10 had also called for “a strong supply response, a more coordinated release of stocks through the public distribution system, open market sales of public stocks, precautionary arrangements for importing some foodgrain” to ward off the increase in food prices. The government, however, has repeatedly dismissed the need to import rice. “The government has assessed the stock position of rice and decided that import of rice for (the) Central pool is not required at this stage,” minister of state in commerce and industry Jyotiraditya Scindia had informed the Lok Sabha last week. The current inflationary pressure is quite different from the inflationary pressure witnessed in April-October 2008. Though both inflation episodes have been driven by supply-side pressures, the higher level of inflation last year was triggered largely by a sharp increase in the prices of basic metals and mineral oils. In contrast, during the current episode, price pressures are emanating from domestic sources, reflecting an increase in prices of food products. That is also the reason why analysts feel that advancing monetary policy action, which has little control over food inflation, is not warranted. “The spike in inflation was anticipated. The question is whether the central bank should tighten monetary policy now. Some monetary response is expected in January. But to advance it will be premature,” Abheek Barua, chief economist at HDFC Bank, said. Citigroup India also projected that RBI will tighten the policy rate by 125 basis points in 2010, “given that authorities have been stressing the importance of focusing more on asset price inflation rather commodity-induced inflation”. Reuters and Bloomberg contributed to this story. Source: Home - Livemint.com | 14 Dec 2009 | 11:31 am Citi to repay 20 billion dollars in plan to exit bailoutCitigroup unveiled plans on Monday to repay 20 billion dollars in government aid and outlined a plan to emerge from a massive bailout, in a fresh sign that the banking sector is closer to standing on its ownSource: HindustanTimes.com - Top Business News Headlines | 14 Dec 2009 | 11:28 am Intel cheers BSNL wimaxIntel edged close to a vast rural market in India on Monday with the launch of BSNL’s WiMax Internet services. Intel expects the wireless broadband link will push the sale of computers and laptops in which its microchips are ubiquitous. Source: HindustanTimes.com - Top Business News Headlines | 14 Dec 2009 | 9:39 am Retail investors subdued as QIBs rescue IPOsIndia Inc. has raised around Rs 18,407 crore through 19 initial public offers (IPOs), with majority of the funds flowing in from Qualified Institutional Buyers (QIBs) and not retail investors.Source: HindustanTimes.com - Top Business News Headlines | 14 Dec 2009 | 9:37 am British Airways cabin crew vote to strikeBritish Airways cabin crew will strike over the Christmas period, their union said on Monday, throwing the plans of thousands of holiday-makers into uncertainty at one of the busiest times of the year.Source: HindustanTimes.com - Top Business News Headlines | 14 Dec 2009 | 9:35 am Corporate bank data head for friendly XBRLA software standard that automates filing of reports on the Internet could mark a significant change for corporate governance and financial management by ensuring transparency. Source: HindustanTimes.com - Top Business News Headlines | 14 Dec 2009 | 9:34 am CESC for 1bn in new unitsPower utility CESC Ltd has been awarded a hydro power project by the Himachal Pradesh government and will spend $1 billion(Rs 4,674 crore) over five years in equity for various projects, a top official said. Source: HindustanTimes.com - Top Business News Headlines | 14 Dec 2009 | 9:32 am Panda city collects Indian techies as it builds a BangaloreSince last August, when recession-hit companies were stalling new investments, Paddy Iyer became a fortnightly flyer from Mumbai to a new IT venture in a second-tier Chinatown famed for pandas, red curry and earthquakes.Source: HindustanTimes.com - Top Business News Headlines | 14 Dec 2009 | 9:30 am ArecelorMittal says it weighs more job cutsParis: ArcelorMittal, the world’s leading steel maker, said on Monday it was considering further job reductions but did not confirm union projections of 10,000 cuts. “There were discussions on the possibility of a global reduction in jobs next year” during a meeting of the company’s workers’ committee on 9-10 December, a spokesman said. He said any reductions in the workforce of 287,000 would probably come through routine departures and improvements in production. A union representative, Jacques Laplanche of the CGT, who took part in the meeting last week, said the company “announced plans for 10,000 job cuts in 2010.” Edouard Martin of the CFDT union said: “We were not given details by country but France should not be heavily affected.” He put the number of job cuts at 10,000-15,000. In the face of declining demand for steel in last year’s economic downturn, notably by the construction and auto sectors, ArcelorMittal in the first nine months of 2009 reduced its staff by 29,000 posts. Laplanche said the company in 2010 planned to operate at 70% of capacity. While demand for steel has lately been reviving, the market remains fragile, with prices still below pre-crisis levels and recovery dependent largely on China, which is also the world’s leading steel producer. Source: World Business - Livemint.com | 14 Dec 2009 | 9:26 am EU signals could OK Oracle deal with no sell-offBrussels: European Union regulators changed tack Monday on Oracle Corp.’s takeover of Sun Microsystems Inc., saying the company’s pledges to database customers were “an important new element” — a signal it could approve the deal without forcing a sell-off. The European Commission is holding up the $7.4 billion (€5.05 billion) deal over worries that it would give Oracle too much control over the database software market. European regulators have a 27 January deadline to decide whether to approve the takeover or block it. They say they are concerned that Oracle will gain control of open source database company MySQL, which they claim will increasingly pose a threat to Oracle’s own proprietary database software. Regulators earlier said they were concerned that Oracle could refuse to license MySQL to some companies or for some uses to favor its own software — which could limit customer choice and ultimately hike prices. Sun paid $1 billion for MySQL last year. Companies often soothe antitrust worries by selling off units or making binding promises to change the way they operate to avoid anticompetitive damage to rivals or customers. EU spokesman Jonathan Todd said Oracle had not so far formally offered any such changes to the deal. In a Monday statement, the EU’s executive said it has had “constructive discussions” with Oracle about keeping MySQL as an important competitive force in the database market after Oracle buys Sun. They said Oracle has made several commitments to MySQL’s customers, developers and users and that this was “an important new element to be taken into account” in the EU’s review of the deal. “In particular, Oracle’s binding contractual undertakings to storage engine vendors regarding copyright non-assertion and the extension over a period of up to five years of the terms and conditions of existing commercial licenses are significant new facts,” the EU said. EU Competition Commissioner Neelie Kroes repeated that she was “optimistic” that the case could have a satisfactory outcome and would not harm competition in Europe. The EU objection ratcheted up tension about the fate of the deal, which Sun badly needs to go through. It lost $677 million over the last four quarters and is rapidly shedding market share to rivals like IBM Corp. and Hewlett-Packard Co. Sun also said in October that it would be cutting up to 3,000 jobs, or 10% of its worldwide work force, as it awaits a decision on the fate of the deal. Source: World Business - Livemint.com | 14 Dec 2009 | 5:29 am Citigroup nearing deal with US govt to repay bailout fundNew York: The Citigroup may cut a deal with the US government on Monday that will allow it to repay the bailout fund the financial entity had received at the height of the global financial crisis, says a report. The Citigroup had received $45 billion from the government’s Troubled Asset Relief Programme (TARP). Attributing to people familiar with the matter, The Wall Street Journal said Citigroup is nearing an agreement that would lay the groundwork for the bank to start freeing itself from government control. It said Citigroup executives are hoping to unveil the deal with the government, possibly as early as Monday. According to the publication, the deal is expected to allow the US-based bank to raise more than $10 billion in new capital by issuing common stocks. Those funds would help it pay back some of the $20 billion that the Treasury Department injected into the company last year. Citigroup executives are also hopeful that the Treasury would announce that it is preparing to sell at least a portion of the 34% stake owned by the government, the daily said. If the government approves Citigroup’s repayment of taxpayer funds, it would free itself from pay restrictions for banks that received multiple bailouts. Bank of America had already repaid $45 billion in TARP funds last week. Source: World Business - Livemint.com | 14 Dec 2009 | 5:22 am EU ok RBS UK bailoutBrussels: European Union regulators on Monday approved Britain’s bailout of Royal Bank of Scotland PLC but warned that they will intervene and demand more selloffs if the bank doesn’t shrink its operations by 2013. RBS must offload British branches and its insurance, transaction management and commodity trading operations to raise funds and compensate for the competitive advantage it gained from a £20 billion bailout from the British government. EU Competition Commissioner Neelie Kroes warned that she could call for more selloffs if RBS fails to meet balance sheet reduction targets by 2013. “The commission will be able to intervene again and more divestments will be required,” she said, sweetening her threat with wishing “a better and more sustainable future to this bank.” The European Commission also approved RBS to take part in Britain’s asset protection scheme, under which the state will cover 90% of potential losses from RBS assets once valued at £281 billion. RBS will pay the first £60 billion of losses and 10% of the rest. Britain now owns 70% of the bank and will step that up to 84% after it buys £25.5 billion ($42 billion) of “B” shares in the bank to strengthen its capital. It has promised RBS a second recapitalization of £25.5 billion and has set aside another £8 billion to support the bank if it runs into trouble — if its core Tier 1 ratio falls below 5% in the next five years. It has also granted tax changes worth up to £11 billion. The EU’s executive said the asset protection program — essentially a costly subsidy to the bank — was necessary to remedy a serious disturbance in the British economy. Reducing the size of the bank and making sure it pays part of the costs of the restructuring were crucial safeguards to limit distortions of competition and “moral hazard” — the danger that a company may take excessive risks if it knows it won’t have to pay for them, the EU said. RBS will divest part of its business lending to British small and medium companies, a sector where it leads and has little competition. The new bank it will form will have a market share of 5% and more than 300 branches and 40 business and commercial centers. The EU said this will allow either a new competitor to emerge or a smaller rival to boost its position. Kroes said examining the RBS case was one of the most difficult of dozens of banking bailouts that the EU has dealt with to make sure that massive injections of capital to troubled banks don’t damage the entire market by rewarding reckless risk-taking before the financial crisis. Regulators blamed RBS’ “strategy of aggressive expansion” for its problems — including the expensive purchase of ABN Amro’s wholesale operations in 2007 and risky lending financed by borrowing money from other banks on wholesale markets. This brought RBS “to the verge of collapse and caused very important impairments and write-offs in its assets” last year when lending between banks froze on worries over the ability of many bank borrowers to pay back huge loans. RBS says the risk of further losses is receding as market conditions improve — but economists warn that the road ahead is rocky as Britain remains in recession. Source: World Business - Livemint.com | 14 Dec 2009 | 4:39 am
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