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Almaty proj to start production in Dec\'10: Parenteral DrugsIn an interview with CNBCTV18, Anil Mittal, Chief Executive Officer, Parenteral Drugs, speaks about the latest happenings in his company and sector.Source: Moneycontrol Top Headlines | 15 Jan 2010 | 8:24 am Bid for $3 bn deals, to begin gun trials soon: ST KineticsST Kinetics, an arm of Singapore Technologies Engineering, said it has bid for five Indian defence contracts worth USD 3 billion. The company said it will begin India trials of its 155 MM Howitzer Towed guns for the army in a month.Source: Moneycontrol Top Headlines | 15 Jan 2010 | 7:30 am Tata Motors Dec global sales rise 84% YoYTata Motors, India\'s largest vehicles maker, said on Friday it sold 74,707 vehicles globally in December, a rise of 84% from a year earlier.Source: Moneycontrol Top Headlines | 15 Jan 2010 | 7:30 am ICICI Bank invests Rs 2.5 bn in Lavasa Corp: HCCHindustan Construction Co Ltd said on Friday ICICI Bank Ltd has invested 2.5 billion rupees in its unit Lavasa Corp Ltd in the form of convertible debentures.Source: Moneycontrol Top Headlines | 15 Jan 2010 | 5:28 am Will Lenovos \'China model\' work in India?Alex Li teams up with Indias Amar Babu to restructure the companys stuttering India businessSource: Moneycontrol Top Headlines | 15 Jan 2010 | 5:28 am New tax code may penalise long term investorsThe new code is expected to simplify the tax procedures but it could be tough on investors.Source: Moneycontrol Top Headlines | 15 Jan 2010 | 5:28 am Total orderbook at Rs 1500cr: Hanung ToysIn an interview with CNBCTV18, Ashok Kumar Bansal, Chairman and Managing Director, Hanung Toys and Textiles, speaks about the latest happenings in his company and sector.Source: Moneycontrol Top Headlines | 15 Jan 2010 | 5:19 am China: Google case will not affect trade with US!China said on Friday that Google`s threat to pull out of the country over cyberattacks and official censorship would not affect Beijing`s overall trade and economic ties with the US.Source: Zee News : Business | 15 Jan 2010 | 5:09 am Sensex up 55 points in early trade!The Bombay Stock Exchange benchmark Sensex on Friday gained 55 points in early trade on fresh buying by funds ahead of the quarterly results of firms led by software major Tata Consultancy Services.Source: Zee News : Business | 15 Jan 2010 | 5:09 am Intel 4Q profit climbs as PC market turns around!Intel Corp has said its fourth-quarter profit blew past expectations, confirming a rebound in the recession-battered personal computer market is under way.Source: Zee News : Business | 15 Jan 2010 | 5:09 am Oil slips below $79 in Asian trade!Oil prices extended losses in Asian trade on Friday on weak energy demand and news the US commodity and options regulator was looking to tighten controls in the energy futures market, analysts said.Source: Zee News : Business | 15 Jan 2010 | 5:09 am Shiseido to buy Bare Escentuals for $1.7 bn !Japan`s top cosmetics maker Shiseido Co said Friday it had agreed to buy Bare Escentuals of the US for $1.7 billion in a friendly takeover.Source: Zee News : Business | 15 Jan 2010 | 5:09 am Kodak sues Apple, BlackBerry on phone cameras!Eastman Kodak is suing Apple and BlackBerry maker Research in Motion (RIM) for infringement of its imaging technology by the two giants in digital cameras in their iPhone and BlackBerry devices.Source: Zee News : Business | 15 Jan 2010 | 5:09 am Power sector to be attractive for investors, analysts!Government`s ongoing massive capacity addition in power sector through large-scale spending and the growing role of private players in the segment would make power-firms attractive for investors, analysts said today.Source: Zee News : Business | 15 Jan 2010 | 5:09 am US financial companies paid $145 bn in 2009: WSJ!Total pay at US banks and securities companies jumped nearly 18 percent to a record $145 billion in 2009, the Wall Street Journal (WSJ) estimated in an analysis published in its online edition on Thursday.Source: Zee News : Business | 15 Jan 2010 | 5:09 am India\'s IOC seeks more March crudeStaterun Indian Oil Corp (IOC) has issued a second tender to import sweet crude for loading in March, on the same day it bought 4 million barrels in its first tender for the month, traders said on Thursday.Source: Moneycontrol Top Headlines | 15 Jan 2010 | 4:26 am Investors may block Wockhardt unit sale to Abott LabsA group of investors, led by U.S. hedge fund QVT Financial LP, plan to stall the sale by drugmaker Wockhardt of its nutrition business to Abbott Laboratories, the Mint newspaper reported on Friday.Source: Moneycontrol Top Headlines | 15 Jan 2010 | 4:26 am ADAG\'s Reliance Entertainment eyes MGM bidReliance Entertainment, the media and entertainment arm of the Anil Dhirubhai Ambani Group, is likely to bid for Hollywood studio MetroGoldwynMayer (MGM), the Economic Times paper said, citing an unnamed person with knowledge of the development.Source: Moneycontrol Top Headlines | 15 Jan 2010 | 4:23 am Shree Renuka Sugars Q1 net jumps 24-fold to Rs 260 cr - Economic Times
Source: Business - Google News | 15 Jan 2010 | 3:06 am Nano may come to US with 5 000 price tagWorld's cheapest car, the Tata Group's Nano that sells for $2,500 in India, may find its place in the US garages at double the price when it is commercially launched here, but would still be lowest-priced car in America.Source: HindustanTimes.com - Top Business News Headlines | 15 Jan 2010 | 3:03 am Slow credit growth to limit RBI tightening - Moneycontrol.com
Source: Business - Google News | 15 Jan 2010 | 3:00 am FACTBOX - Companies offer aid to Haiti after earthquakeREUTERS - A magnitude 7.0 earthquake rocked Haiti on Tuesday, killing thousands and demolishing schools, hospitals, houses and hillside shantytowns.Source: Reuters: Money News | 15 Jan 2010 | 2:59 am Q3 nos NII improved on rising margins says HDFC Bank - Moneycontrol.com
Source: Business - Google News | 15 Jan 2010 | 2:56 am India gold traders at bay; seek price declinesMUMBAI (Reuters) - Most Indian gold traders kept to the sidelines on Friday awaiting further falls and also as a weaker rupee weighed on sentiment, dealers said.Source: Reuters: Money News | 15 Jan 2010 | 2:52 am Reliance Comm says adds 2.8 mln users in DecNEW DELHI (Reuters) - Reliance Communications, India's No. 2 mobile operator, added 2.8 million mobile users in December, the company said on Friday.Source: Reuters: Money News | 15 Jan 2010 | 2:45 am China says ways to resolve Google issue, U.S. cautiousBEIJING (Reuters) - China sought on Friday to play down a threat by Google Inc to quit the country on hacking and censorship concerns, saying any decision by the Internet search giant would not affect U.S. trade ties.Source: Reuters: Money News | 15 Jan 2010 | 2:43 am Sluggish Sensex drags on - Times of India
Source: Business - Google News | 15 Jan 2010 | 2:38 am Finolex Cables Oct-Dec net profit at 122.7 mln rupees(Versus the same period a year earlier, in million rupees unless stated)Source: Reuters: Money News | 15 Jan 2010 | 2:34 am Slow credit growth to limit RBI tighteningMUMBAI (Reuters) - Demand for bank loans in India is coming back to life but because loan growth is sluggish, the Reserve Bank will take time to tighten monetary policy in spite of a pick-up in inflation.Source: Reuters: Money News | 15 Jan 2010 | 2:28 am Sluggish Sensex drags onThe 30-scrip sensitive index (Sensex) , which opened at 17,604.31 points, was ruling at 17,574.1 points, around 2.23 pm, down 12.64 points or 0.07 percent from its previous close at 17,584.87 points.Source: India Business News | Business News - Times of India | 15 Jan 2010 | 2:27 am Suzuki aims to take stake in Volkswagen soonHAMAMATSU, Japan (Reuters) - Suzuki Motor Corp is keen to take a stake in Volkswagen AG soon, as the European automaker looks for shareholders willing to sell to Suzuki, the head of the Japanese firm said on Friday.Source: Reuters: Money News | 15 Jan 2010 | 2:20 am China Internet population hits 384 million - Reuters
Source: Business - Google News | 15 Jan 2010 | 2:12 am `Buy` LIC Housing, target Rs 880: India Infoline - Myiris.com
Source: Business - Google News | 15 Jan 2010 | 1:44 am EIL public offer in June-Sept quarter - NDTV.com
Source: Business - Google News | 15 Jan 2010 | 1:36 am Gold traders at bay; seek price declinesMumbai: Most Indian gold traders kept to the sidelines on Friday awaiting further falls and also as a weaker rupee weighed on sentiment, dealers said. “Demand is nil... traders wants a further drop in prices, even the rupee is weak,” said a dealer with a state-run bullion dealing bank in Mumbai. “Price action would determine our sales volume, but overall enthusiasm is missing,” said Daman Prakash Rathod, former convenor, Tamil Nadu Bullion Forum. At 2:15pm, international spot gold was trading at $1,136.05/1,136.85 an ounce as against the previous close of $1,142.15/1,142.95. “There were some overnight orders at around $1,131-1,132 (an ounce),” said another dealer with a private bank in Mumbai. A weaker rupee makes the dollar-quoted asset expensive. The Indian rupee weakened slightly, weighed down by some strength in the dollar and a lack of momentum in the local sharemarket. Dealers said there has been a slight pick-up in offtake in Tamil Nadu, where marriages will start early next week. Marriages elsewhere will be underway from April. “There is some activity in our Chennai centre due to some marriages there, but these are all-last minute purchases,” said another dealer with the state-run bank. “Buying was good for most part of December.... We could see diverse buying activity from wholesalers to retail investors,” Rathod said. India’s gold imports provisionally rose to 32-35 tonnes in December as against 3 tonnes a year ago, the Bombay Bullion Association said on 1 January. Source: LatestNews-Home - Livemint.com | 15 Jan 2010 | 1:33 am ST Kinetics says bids for $3 bln India defence dealsNEW DELHI (Reuters) - ST Kinetics, an arm of Singapore Technologies Engineering, said it has bid for five Indian defence contracts worth $3 billion.Source: Reuters: Money News | 15 Jan 2010 | 1:26 am Suzuki aims to take stake in Volkswagen soonHamamatsu, Japan: Suzuki Motor Corp is keen to take a stake in Volkswagen AG soon, as the European automaker looks for shareholders willing to sell to Suzuki, the head of the Japanese firm said on Friday. Suzuki and Volkswagen last month announced a comprehensive tie-up, and Europe’s top automaker on Friday became Suzuki’s biggest shareholder with a 19.9% stake. Cross-shareholding between the two companies is part of the pact. Suzuki also plans to procure diesel engines from Volkswagen, Osamu Suzuki, the chairman and chief executive of Japan’s fourth-largest automaker, said in a group interview. He also said the two automakers will aggressively look into the possibility of common parts and platforms. As the global car industry faces fragile demand, chronic overcapacity and stricter environmental regulations, automakers are joining forces to save the billions each would need to develop state-of-the-art powertrains. Suzuki, who is turning 80 later this month, said he has no intention to quit as president. Prior to his comments, Suzuki Motor shares closed down 1.4% at ¥2,206, underperforming the Nikkei average, which gained 0.7%. Source: Home - Livemint.com | 15 Jan 2010 | 1:26 am Suzuki aims to take stake in Volkswagen soonHamamatsu, Japan: Suzuki Motor Corp is keen to take a stake in Volkswagen AG soon, as the European automaker looks for shareholders willing to sell to Suzuki, the head of the Japanese firm said on Friday. Suzuki and Volkswagen last month announced a comprehensive tie-up, and Europe’s top automaker on Friday became Suzuki’s biggest shareholder with a 19.9% stake. Cross-shareholding between the two companies is part of the pact. Suzuki also plans to procure diesel engines from Volkswagen, Osamu Suzuki, the chairman and chief executive of Japan’s fourth-largest automaker, said in a group interview. He also said the two automakers will aggressively look into the possibility of common parts and platforms. As the global car industry faces fragile demand, chronic overcapacity and stricter environmental regulations, automakers are joining forces to save the billions each would need to develop state-of-the-art powertrains. Suzuki, who is turning 80 later this month, said he has no intention to quit as president. Prior to his comments, Suzuki Motor shares closed down 1.4% at ¥2,206, underperforming the Nikkei average, which gained 0.7%. Source: World Business - Livemint.com | 15 Jan 2010 | 1:26 am Asia tech shares up on Intel, but US data worriesHong Kong: Technology shares jumped in Asia on Friday after better-than-expected earnings from sector bellwether Intel, but stocks elsewhere in the region were largely subdued amid fresh doubts about the strength of the US economic recovery. Tepid US retail sales data and a rise in jobless claims lifted Treasuries and provided a lead for government bonds in Japan and South Korea as investors bet US interest rates will be kept very low for a prolonged period to give the economy time to get on more solid footing. European shares were seen inching higher as Intel’s results fuelled hopes for a strong earnings season. Financial spreadbetters expected Britain’s FTSE 100 to open 13 to 15 points higher, Germany’s DAX to open 6 to 14 points higher, and France’s CAC-40 to open 2 to 9 points higher. But US stock futures slipped 0.2% on investor worries about the durability of America’s recovery as the boost from government stimulus measures fades. In Japan, the Nikkei average flirted with negative territory for much of the session before closing up 0.7% at a 15-month high, buoyed by tech shares such Tokyo Electron, a top supplier of memory chip-making equipment. But analysts said profit taking was weighing on the index as it drew near 11,000 points, with investors wary after seven straight weeks of gains. Tech-heavy markets like Taiwan and South Korea were the big gainers after Intel’s earnings pointed to firm demand for PCs and other gadgets using memory chips, even if US. consumers unexpectedly curbed their overall Christmas spending in December. Taiwan ended up 0.8% at a 19-month closing high while South Korean shares closed nearly 1% higher as tech heavyweight Samsung Electronics hit a fresh record high. Geoff Lewis, head of investment services at JP Morgan Asset Mangement, said although corporate earnings had improved, they still needed to be bolstered by good economic data for markets to move higher. “You still have to see continued good news on the economic front to validate improvements in corporate earnings forecasts.” Intel’s 28% increase in fourth-quarter revenue plus a financial forecast well ahead of Wall Street’s expectations came on a day when US. retail sales and weekly jobless claims data disappointed and ultimately proved a drag on Wall Street, with major indexes ending the day only marginally higher. The Commerce Department said retail sales fell 0.3% last month, the first decline since September, as consumers spent less during the holiday shopping month. A separate report from the Labor Department showed initial claims for state unemployment benefits rose 11,000 to 444,000 last week, higher than the 437,000 claims analysts surveyed by Reuters had forecast. Mark Konyn, who oversees about $11 billion as Asia-Pacific chief executive of RCM, a unit of Allianz Global Investors, said improved earnings being seen in the tech sector were a result of corporate demand carried over from past years. “What we are seeing in technology is continued momentum partly as a result of deferred capex spending over the last almost two years now slowly coming through and that will probably continue for a bit longer now,” he said. Currencies seen as more leveraged to global growth, like the Australian and Canadian dollars rose initially on Intel-fuelled demand but the US. dollar and yen later reversed their losses as investors pared risk amid the uncertain economic outlook. Overnight, the Australian dollar briefly rose to $0.9331, its highest since mid-November. Japanese government bonds also rose after the US economic data boosted US Treasuries, but gains were capped as the firmness in Tokyo shares made investors hesitant. The MSCI index of Asia Pacific stocks traded outside Japan was flat after rising as much as 0.25%. It has risen 2.5% in the year so far. The index of technology shares was up 1.03%. The Thomson Reuters index of regional shares was down 0.37%. The Nikkei average rose to its highest since October 2008 with data showing flows into Japan equity funds hit a near 3-year high. The MSCI Japan index has risen 6.7% so far in the new year. “It would not be surprising when there will be brief periods when Japan will outperform, it has done so badly in the past. It is difficult to become enthiusiastic over that market,” said Lewis, whose fund is neutral on Japan. Oil weakened and was set for its first weekly drop in more than a month, as the disappointing economic data added to expectations for reduced heating demand in the United States. Source: Home - Livemint.com | 15 Jan 2010 | 12:59 am HDFC Bank Q3 net rises 32 pctMUMBAI (Reuters) - HDFC Bank, India's No.2 private sector lender, reported a 31.7 percent rise in quarterly profit on Friday.Source: Reuters: Money News | 15 Jan 2010 | 12:52 am Sensex ruling flat in noon tradeA benchmark index of the Indian equities markets was ruling flat around Friday noon, even as other Asian markets were a mixed bag.Source: India Business News | Business News - Times of India | 15 Jan 2010 | 12:43 am Total orderbook at Rs 1500cr: Hanung Toys - Moneycontrol.com
Source: Business - Google News | 15 Jan 2010 | 12:05 am China says Google case will not affect trade ties with USBeijing: China said Friday that Google’s threat to pull out of the country over cyberattacks and official censorship would not affect Beijing’s overall trade and economic ties with the United States. The comments from the commerce ministry came after Washington again demanded explanations from Beijing following the US Internet giant’s allegations that it was the victim of cyberattacks aimed at Chinese human rights activists. The company has said it may abandon its operations in China, the world’s largest online market with 360 million web users, and also has warned it will stop bowing to China’s army of Internet censors. “No matter what decision Google makes, it will not affect overall trade and economic relations between China and the United States,” commerce ministry spokesman Yao Jian told reporters. Also Read Google’s threat to withdraw stands out “The two countries have multiple communication channels. We are confident in the healthy development of economic and trade relations between China and the United States.” In Beijing’s first official reaction Thursday, a foreign ministry spokeswoman insisted China’s Internet was “open” but defended the censorship that prompted Google’s shock announcement and told the firm to obey the law. Yao echoed those remarks, saying foreign firms operating in the Asian giant should “respect the laws, public interest, culture and traditions in host countries, and take on social responsibilities accordingly”. “China is transferring from a traditional planned economy to a socialist market economy. Stability and development are our top priorities at the current stage,” the commerce ministry spokesman said. The row has threatened to rattle ties between Washington and Beijing, already frayed over a number of issues, from the Copenhagen climate change conference debacle to the value of the Chinese yuan and a number of other trade disputes. Earlier this week, Secretary of State Hillary Clinton demanded answers from China. On Thursday, State Department spokesman Philip Crowley said US representatives had met with Chinese embassy officials in Washington on the matter. “The incident raises questions about both Internet freedom and the security of the Internet in China,” Crowley told reporters. Google said more than 20 other unidentified firms were targeted in the “highly sophisticated” attacks, believed to have originated in China, while other reports have put the number of companies attacked at more than 30. Officials in Washington have been reluctant to comment on how the Google case could affect bilateral ties, but one official, who asked not to be named, warned of future diplomatic fallout. “If this was part of a deliberate strategy on behalf of China, it has implications,” the official said. US lawmakers on Thursday hailed Google’s move and touted a draft bill that would prohibit US firms from storing users’ personal information in countries that restrict the peaceful expression of political and religious views online. Under the bill, called the Global Online Freedom Act, companies also would have to report to the State Department which search terms countries were trying to filter out. “Google sent a thrill of encouragement through the hearts of millions of Chinese,” Representative Chris Smith, the bill’s chief sponsor, told a news conference. “It is a game-changer.” “But IT companies are not powerful enough to stand up to a repressive government like China,” said Smith, a Republican from New Jersey. “Without US government support, they are inevitably forced to be ever more complicit in the repressive governments’ censorship and surveillance.” Microsoft said Thursday that a security vulnerability in its Internet Explorer browser was used in the spate of cyberattacks. Web security firm McAfee Inc. said meanwhile that the attacks on Google and other companies showed a level of sophistication beyond that of cyber criminals and more typical of a nation-state. Source: Tech News - Livemint.com | 14 Jan 2010 | 11:48 pm China says Google case will not affect trade ties with USBeijing: China said Friday that Google’s threat to pull out of the country over cyberattacks and official censorship would not affect Beijing’s overall trade and economic ties with the United States. The comments from the commerce ministry came after Washington again demanded explanations from Beijing following the US Internet giant’s allegations that it was the victim of cyberattacks aimed at Chinese human rights activists. The company has said it may abandon its operations in China, the world’s largest online market with 360 million web users, and also has warned it will stop bowing to China’s army of Internet censors. “No matter what decision Google makes, it will not affect overall trade and economic relations between China and the United States,” commerce ministry spokesman Yao Jian told reporters. Also Read Google’s threat to withdraw stands out “The two countries have multiple communication channels. We are confident in the healthy development of economic and trade relations between China and the United States.” In Beijing’s first official reaction Thursday, a foreign ministry spokeswoman insisted China’s Internet was “open” but defended the censorship that prompted Google’s shock announcement and told the firm to obey the law. Yao echoed those remarks, saying foreign firms operating in the Asian giant should “respect the laws, public interest, culture and traditions in host countries, and take on social responsibilities accordingly”. “China is transferring from a traditional planned economy to a socialist market economy. Stability and development are our top priorities at the current stage,” the commerce ministry spokesman said. The row has threatened to rattle ties between Washington and Beijing, already frayed over a number of issues, from the Copenhagen climate change conference debacle to the value of the Chinese yuan and a number of other trade disputes. Earlier this week, Secretary of State Hillary Clinton demanded answers from China. On Thursday, State Department spokesman Philip Crowley said US representatives had met with Chinese embassy officials in Washington on the matter. “The incident raises questions about both Internet freedom and the security of the Internet in China,” Crowley told reporters. Google said more than 20 other unidentified firms were targeted in the “highly sophisticated” attacks, believed to have originated in China, while other reports have put the number of companies attacked at more than 30. Officials in Washington have been reluctant to comment on how the Google case could affect bilateral ties, but one official, who asked not to be named, warned of future diplomatic fallout. “If this was part of a deliberate strategy on behalf of China, it has implications,” the official said. US lawmakers on Thursday hailed Google’s move and touted a draft bill that would prohibit US firms from storing users’ personal information in countries that restrict the peaceful expression of political and religious views online. Under the bill, called the Global Online Freedom Act, companies also would have to report to the State Department which search terms countries were trying to filter out. “Google sent a thrill of encouragement through the hearts of millions of Chinese,” Representative Chris Smith, the bill’s chief sponsor, told a news conference. “It is a game-changer.” “But IT companies are not powerful enough to stand up to a repressive government like China,” said Smith, a Republican from New Jersey. “Without US government support, they are inevitably forced to be ever more complicit in the repressive governments’ censorship and surveillance.” Microsoft said Thursday that a security vulnerability in its Internet Explorer browser was used in the spate of cyberattacks. Web security firm McAfee Inc. said meanwhile that the attacks on Google and other companies showed a level of sophistication beyond that of cyber criminals and more typical of a nation-state. Source: Home - Livemint.com | 14 Jan 2010 | 11:48 pm Intel profits boom as PC sales surge worldwideIntel reported net income of $2.3 billion on Thursday for the fourth quarter, a staggering 875 per cent rise over the same period a year ago.Source: HindustanTimes.com - Top Business News Headlines | 14 Jan 2010 | 11:43 pm Money not goods sought for quake hit Haiti USAIDDonors seeking to help quake-stricken Haiti should send cash and refrain from making shipments of clothing, medicine and other goods, the US agency tasked with international development aid said on 15th January.Source: HindustanTimes.com - Top Business News Headlines | 14 Jan 2010 | 11:41 pm JAL offers service with a smile despite looming bankruptcyAs debt-crippled Japan Airlines heads towards an expected bankruptcy filing, its pilots and cabin crews have taken their legendary courtesy to new heights.Source: HindustanTimes.com - Top Business News Headlines | 14 Jan 2010 | 11:22 pm Sensex up 55 points in early tradeThe Bombay Stock Exchange benchmark Sensex today gained 55 points in early trade on fresh buying by funds ahead of the quarterly results of firms led by software major Tata Consultancy Services.Source: HindustanTimes.com - Top Business News Headlines | 14 Jan 2010 | 11:11 pm Banks urge RBI to hold rates at policy reviewMumbai: Indian banks on Thursday urged the central bank to keep interest rates stable at its policy review later this month, saying any increase could further dent sluggish demand for loans. The Reserve Bank of India (RBI) is widely expected to raise the cash reserve ratio (CRR), the level of cash banks must keep with the central bank, when it finalises policy on 29 January. Recent strong data has raised expectations that policy rates might also be raised, with December inflation at a one-year high of 7.31%. “We told the RBI that this is not the right time to hike rates and indicate increase in lending rates,” the chairman of a state-run bank said, after a meeting with central bank officials ahead of the policy review. Loan growth in India fell below 10% in November despite a reduction of 300-350 basis points in lending rates since the start of 2009. Companies have been raising funds at cheaper rates from overseas. Bankers said a pick-up in annual loan growth to 13.7% on 1 January was unlikely to be sustained as the rise was caused by bunching of disbursements ahead of the December quarter end. “Liquidity will be in abundance up to March as credit pick up is not happening,” said M.V. Nair, head of Indian Banks’ Association that represents all commercial banks in the country. Banks have been parking excess funds of around Rs80,000 crore ($17.5 billion) in the central bank’s daily reverse repo auctions, which pay 3.25% on an annual basis. “If at all any hike in CRR is done, it should be in a small quantum,” another banker said, adding any bigger increase could choke the liquidity when demand picks up in the June quarter. The participants in the meeting included the chiefs of State Bank of India, ICICI Bank , Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India and HDFC Bank. Bankers also suggested the RBI to reduce the interest rate on savings bank deposits from 3.5% to help lower the pressure on cost of funds when banks are required to calculate rate payment on a daily balance basis from 1 April. Banks now pay interest on deposits based on the average amount in the last 20 days of a month, which works out to about 2.5%. Source: Home - Livemint.com | 14 Jan 2010 | 11:08 pm Hyundai to boost spending 12% in 2010Seoul: Hyundai Motor Group, South Korea’s top automaker, said it planned to raise investment by 12% this year to its largest ever to develop eco-friendly models, and as it aims to boost global sales volume by 17%. The group, which includes Hyundai Motor Co and Kia Motors Corp, will spend 10.5 trillion won ($9.35 billion) in 2010, compared with 9.4 trillion won last year. The conglomerate has allocated 4.6 trillion won for research and development, 53.3% more than last year, and 5.9 trillion won for equipment investments, it said. It plans to hire 6,000 new employees this year. “The group plans to continue investments in the development and popularisation of more fuel efficient and eco-friendly cars, for which demand is seen jumping once the economy recovers,” the group said in a statement. The plan came as the group, the world’s No.4 car maker based on first-half 2009 sales, is targeting combined sales of 5.40 million vehicles in 2010, compared with 4.63 million last year. Hyundai Motor Group aims to launch a diesel-hybrid car in 2011 and plans to bring a gasoline hybrid version of a mid-sized sedan to the United States this year. After the announcement, shares in Hyundai rose 3.38% to 107,000 won, while Kia fell 0.26% to 19,050 won, versus a 0.78% gain in the wider market. Source: LatestNews-Home - Livemint.com | 14 Jan 2010 | 10:59 pm Markets flip-flop; RCom gains over 5%Mumbai: Indian shares were little changed in seesaw trade on Friday morning, amid mixed cues from Asian markets, with telecom companies leading the gainers, while Infosys Technologies led the fallers. Reliance Communications rose as much as 5.8% to Rs193.35, after the telecoms major got regulatory nod for its planned initial public offering of its tower unit. “Reliance Infratel has the second-largest tower business in the country. So, unlocking value in it is definitely a positive development,” said Harit Shah, research analyst at Karvy Stock Broking. The stock was trading 4.4% higher at Rs190.75, while bigger rival Bharti Airtel climbed 0.1% to Rs319.25. By 11:18am, the 30-share BSE Index was trading down 0.04% at 17,577.06 points, with 14 of its components declining. The 50-share NSE index was down 0.04% at 5,258. “The market is just taking cues from company-specific news flow and results. There is no immediate macro trigger to pull it in any direction,” Daljeet Kohli, head of research for private client group at Emkay Global. IT bellwether Infosys Technologies shed 0.9% to Rs2,666, after it gained 9.1% in the previous four sessions. Sector leader Tata Consultancy gained 1.2% to Rs791.30, ahead of its quarterly results which are due after market hours. Tata Consultancy is expected to report that its net profit rose 18.6% in the December quarter, a Reuters poll showed last Friday. ONGC shed 1.2% to 1,216.15, after it gained 3.2% in the two previous sessions. In the broader market, gainers outpaced losers in a ratio of 1.3:1 in a volume of 199 million shares. Source: Home - Livemint.com | 14 Jan 2010 | 10:55 pm Anger mounts as Haiti sees little sign of aidPort Au-Prince: Anger and despair mounted in quake-hit Haiti Thursday with rotting bodies littering the streets and little sign of desperately needed international aid for the hundreds of thousands of victims. The stench of death hung over the capital Port-au-Prince as residents, still clawing through rubble in the hunt for survivors, faced another night in the open, traumatized by aftershocks triggered by Tuesday’s 7.0 earthquake. Despite the launch of a massive international aid operation, there was no sign of heavy lifting equipment among the rubble even as tons of material and badly-needed supplies deluged the international airport. Haitian officials have warned the overall death toll may top 100,000 and say three million people could have been affected by the powerful quake that ripped across the poorest nation in the Americas. The International Red Cross said the quake, the largest in the Caribbean island nation in more than 150 years, has killed between 40,000 and 50,000 people. “If international aid doesn’t come, the situation will deteriorate quickly. We need water and food urgently,” said Haitian survivor Lucille, still dazed by the scenes of devastation and carnage. Sporadic gunshots were heard, and witnesses said there had already been some looting in a city that has endured bloodshed and violence and natural disasters over the past decades. “More doctors, fewer journalists,” one man yelled angrily, shaking his fists at a foreign media crew. A giant US aircraft carrier was expected to drop anchor off the stricken Caribbean island nation on Friday and serve as a landing pad for a fleet of helicopters to bring emergency teams and vital supplies to quake victims. But harrowing scenes were being repeated across the city as frustrated Haitians dug with their hands through mountains of concrete and rubble while the screams and moans of those buried below rang out. Some people set up temporary shelters with sheets and covers in a public square, while others were trekking out carrying meagre belongings, searching for safer places outside the city. Hundreds of bodies, some mutilated and half-clothed, lay rotting outside the devastated central hospital as waves of distraught Haitians moved from corpse to corpse in search of their loved ones. Haitian native and hip hop star Wyclef Jean described conditions as “the apocalypse” and said Haiti needed to raise a million dollars a day to survive. “We spent the day picking up dead bodies, all day that’s what we did. There’s so much bodies in the streets that the morgues are filled up, the cemeteries are filled up,” he told Fox News. Doctors were struggling to treat the vast numbers of sick and injured, with medical charity Medecins Sans Frontiers speaking of patients with “severe traumas, head wounds, crushed limbs” and burns. Communications remained poor, and moving around was hampered by destroyed roads and lack of fuel. US State Department spokesman PJ Crowley said eight search-and-rescue teams with a total of 260 people were on the ground, and 30 countries have pledged or already sent help. China, France, Iceland, the United States and Venezuela were among those with teams in situ, with Washington sending ships, helicopters, planes, rescue teams, a floating hospital and more than 5,000 troops. “Not only is the United States’ commitment to Haiti growing, but also the international commitment as well,” said Crowley. The United States had also taken over air traffic control at the swamped airport which was now operating round-the-clock, he said. Flights were delayed though as staff struggled to unload supplies. And little aid had trickled down to the streets. An AFP video showed scuffles breaking out as a helicopter dropped food over one part of the city. Haitians were also angered they had had no word from their leaders. One group trying to free a man trapped in the rubble of the tax office looked up wearily at the planes flying overhead. “We hear on the radio that rescue teams are coming from the outside, but nothing is coming. We only have our fingers to look for survivors,” said Jean-Baptiste Lafontin Wilfried. Dozens of people were rescued thanks to frantic efforts and as sniffer dogs began to comb the ruins. But the moments of joy were few, compared to the death and destruction stalking the city. The United Nations said 36 of its staffers had been killed, in the worst disaster in the global body’s history. Another 188 were still missing. US President Barack Obama sought to lift up a despairing people, facing acute shortages of food, water and shelter, offering $100 million in immediate assistance. “To the people of Haiti, we say clearly and with conviction, you will not be forsaken, you will not be forgotten,” he said. Obama and French President Nicolas Sarkozy, along with Brazil and Canada and other concerned nations are planning to hold an international conference on Haiti’s reconstruction, the French presidency said. “People throughout the world want to help,” said UN chief Ban Ki-moon. “One of our biggest challenges will be to help them to help Haiti to the utmost,” he warned. Source: Home - Livemint.com | 14 Jan 2010 | 10:53 pm JAL draws on emergency funds as bankruptcy loomsTokyo: Japan Airlines Corp moved a step closer to bankruptcy on Friday by drawing down $1.6 billion in emergency funding and with the Prime Minster set to decide on when the carrier will start a state-led restructuring. Asia’s largest airline by revenues, but whose market value has collapsed to below that of budget carrier Skymark Airlines, will file for bankruptcy protection as early as Tuesday, sources have told Reuters, as part of a restructuring being crafted by a state-backed turnaround fund. Transport minister Seiji Maehara said he would meet Prime Minister Yukio Hatoyama on Friday to set the “X-day”, a term widely used by media and bankers working on JAL’s restructuring to refer to when it will file for bankruptcy. “We are doing everything possible to reduce anxiety and reassure that the X-day will not cause any confusion,” Maehara told reporters. JAL, mired in losses and weighed down by about $16 billion in debt, applied in October to the Enterprise Turnaround Initiative Corp of Japan (ETIC), a fund that can draw on government-backed funding to bail out ailing firms. The ETIC is expected to make an official decision next week to support the carrier with public money after it files for what could rank as Japan’s sixth-largest bankruptcy. JAL announced on Friday it had procured ¥145 billion ($1.6 billion) in funds remaining from a 200 billion yen credit line provided by the state-owned Development Bank of Japan, indicating that it was building up emergency cash. “We are preparing so we can make the necessary outlays when needed,” JAL spokesman Satoru Tanaka said. The Nikkei reported on Friday that Japan Airlines International, which handles domestic and overseas flights, and JAL Capital, which raises operational funds, would also file for bankruptcy and be part of the state-led bailout. JAL declined to comment on the report. “We expect at least the group’s three core companies - JAL, JAL International and JAL Capital - to file for bankruptcy protection under the government-led rehabilitation scheme,” said Minoru Nakano, an official at bankruptcy research firm Teikoku Databank. “It’s also possible that some other restructuring measures are announced for other smaller units at the same time.” Shares of JAL were unchanged at 8 yen, giving it a market value of about $240 million. The stock has lost about $1.8 billion this week amid growing expectations it would file for bankruptcy and be delisted from the Tokyo exchange. Source: LatestNews-Home - Livemint.com | 14 Jan 2010 | 10:32 pm JAL draws on emergency funds as bankruptcy loomsTokyo: Japan Airlines Corp moved a step closer to bankruptcy on Friday by drawing down $1.6 billion in emergency funding and with the Prime Minster set to decide on when the carrier will start a state-led restructuring. Asia’s largest airline by revenues, but whose market value has collapsed to below that of budget carrier Skymark Airlines, will file for bankruptcy protection as early as Tuesday, sources have told Reuters, as part of a restructuring being crafted by a state-backed turnaround fund. Transport minister Seiji Maehara said he would meet Prime Minister Yukio Hatoyama on Friday to set the “X-day”, a term widely used by media and bankers working on JAL’s restructuring to refer to when it will file for bankruptcy. “We are doing everything possible to reduce anxiety and reassure that the X-day will not cause any confusion,” Maehara told reporters. JAL, mired in losses and weighed down by about $16 billion in debt, applied in October to the Enterprise Turnaround Initiative Corp of Japan (ETIC), a fund that can draw on government-backed funding to bail out ailing firms. The ETIC is expected to make an official decision next week to support the carrier with public money after it files for what could rank as Japan’s sixth-largest bankruptcy. JAL announced on Friday it had procured ¥145 billion ($1.6 billion) in funds remaining from a 200 billion yen credit line provided by the state-owned Development Bank of Japan, indicating that it was building up emergency cash. “We are preparing so we can make the necessary outlays when needed,” JAL spokesman Satoru Tanaka said. The Nikkei reported on Friday that Japan Airlines International, which handles domestic and overseas flights, and JAL Capital, which raises operational funds, would also file for bankruptcy and be part of the state-led bailout. JAL declined to comment on the report. “We expect at least the group’s three core companies - JAL, JAL International and JAL Capital - to file for bankruptcy protection under the government-led rehabilitation scheme,” said Minoru Nakano, an official at bankruptcy research firm Teikoku Databank. “It’s also possible that some other restructuring measures are announced for other smaller units at the same time.” Shares of JAL were unchanged at 8 yen, giving it a market value of about $240 million. The stock has lost about $1.8 billion this week amid growing expectations it would file for bankruptcy and be delisted from the Tokyo exchange. Source: World Business - Livemint.com | 14 Jan 2010 | 10:32 pm Techs lead Wall St higher; Intel up after resultsNew York: Technology shares drove Wall Street higher on Thursday on bets ahead of Intel’s quarterly results that business spending will bolster profits in the sector. Intel Corp, a Dow component and the world’s largest chipmaker, after the bell reported a quarterly profit that beat expectations. Its shares had risen 2.5% ahead of the results. Intel results “tell you a lot about what companies are capable of doing post-recession,” said Marc Pado, US market strategist at Cantor Fitzgerald & Co in San Francisco. “Even on flat revenues companies are going to make money. That’s the coattail that Intel is going to have for everybody tomorrow.” Software was also boosted in regular trading after Morgan Stanley added Oracle Corp, the world’s No. 2 business software maker behind Microsoft Corp, to its “best ideas” list and raised its price target. Oracle gained 2.5% to $25.37 and Microsoft rose 2% to $30.96, leading gains in the Nasdaq. The Dow Jones industrial average added 29.78 points, or 0.28%, to 10,710.55. The Standard & Poor’s 500 Index rose 2.78 points, or 0.24%, to 1,148.46. The Nasdaq Composite Index gained 8.84 points, or 0.38%, to 2,316.74. After the bell, Intel shares gained 1.75 to $21.85 and stock futures ticked higher as trading resumed after 4:30pm. Shares of Advanced Micro Devices , an Intel rival, and Microsoft also rose in after-hours trade. During regular trading, the market rose despite an unexpected drop in December US retail sales and an increase in new jobless claims last week that topped estimates. “The market was able to shrug off the data because as long as news is bad, government stimulus will keep coming,” said Doug Roberts, chief investment strategist at ChannelCapitalResearch.com in Shrewsbury, New Jersey. In the financial sector, the KBW bank index was up 1.6% led mainly by regional and mid-size banks. Comerica Inc jumped 2.9% to $34.13 after brokerage Raymond James upgraded its stock. Bank shares were in the spotlight after US President Barack Obama on Thursday proposed a fee to make big banks repay taxpayers for bailouts. The sector had fallen earlier in the week on speculation about the fee. On the New York Stock Exchange nearly 890 million shares changed hands, below last year’s estimated daily average of 2.18 billion. On the Nasdaq, about 2.29 billion shares traded, above last year’s daily average of 1.63 billion. Source: Home - Livemint.com | 14 Jan 2010 | 10:15 pm Kodak sues Apple BlackBerry on phone camerasEastman Kodak Company is suing Apple and BlackBerry maker Research in Motion (RIM) for infringement of its imaging technology by the two giants in digital cameras in their iPhone and BlackBerry devices.Source: HindustanTimes.com - Top Business News Headlines | 14 Jan 2010 | 10:08 pm Reliance Entertainment eyes MGM bid reportReliance Entertainment, the media and entertainment arm of the Anil Dhirubhai Ambani Group, is likely to bid for Hollywood studio MGM, the Economic Times paper said, citing an unnamed person with knowledge of the development.Source: HindustanTimes.com - Top Business News Headlines | 14 Jan 2010 | 9:58 pm Rupee falls by 4 paise at 45.66 in early tradeThe rupee today fell by four paise to 45.66 a dollar in early trade as the US currency strengthened against major global units.Source: India Business News | Business News - Times of India | 14 Jan 2010 | 9:41 pm Oil falls below $79 on concerns over US economySingapore: Oil fell below $79 a barrel on Friday and was set for its first weekly drop in more than a month, as disappointing economic data added to expectations for reduced heating demand in the United States. US retail sales declined in December for the first time in three months, the Commerce Department said on Thursday, while Labour Department data showed more people sought jobless benefits last week. Prices edged up briefly a day earlier after US regulators announced proposals to put a hard cap on the size of positions dealers can hold, aiming to limit speculation, as traders considered it not as stringent as feared. The market was also seeking more details on the rules before making further moves. US crude oil futures for February delivery fell 44 cents to $78.95 a barrel at 9:12am. Prices have shed about $5 from a 15-month intraday high of $83.95 on Monday, having touched a 2010 low of $78.37 two days ago. The new front-month March contract for London Brent crude slid 53 cents to $78.04. “The fundamentals are weak,” said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd. “US economic data is not really improving much and this may push down NYMEX prices to below $78.” The long-awaited proposals from the US Commodity Futures Trading Commission (CFTC) will apply to the four most-traded energy contracts on the two major exchanges, NYMEX and ICE. It remains to be seen if the limits - which the CFTC said would affect only the 10 biggest position holders if implemented immediately -- are enough to satisfy Congress members who have clamoured for regulatory action since oil prices jumped to a record above $147 in July 2008. Emori said it was too early to say whether the new regulation will affect the market or prices. “We probably need some more details on how they will regulate each category of participants,” he said. “It is quite difficult for them to distinguish which part of a bank’s trading activity is hedging or speculation.” Crude and fuel inventories at top consuming nation the United States rose last week despite unusually cold weather. Temperatures are now forecast to exceed the seasonal norm, suppressing consumption. US demand for distillates, a fuel category which includes heating oil, was 4 percent below year-earlier levels in the four weeks ended Jan. 8, a government report showed on Wednesday. “Stockpiles are rising and demand is lower than expected,” Emori said. US economic activity is now at a low level but is showing signs of modest improvement, the Federal Reserve said on Wednesday in remarks seen as reinforcing the prevailing view that oil demand will grow in 2010. But recent downbeat data and the view that US interest rates will remain low for a while sent the dollar to a one-month low against sterling. The US dollar also took a hit versus currencies leveraged to global growth such as the Australian and Canadian dollars on positive earnings from tech-bellweather Intel Corp. Source: Home - Livemint.com | 14 Jan 2010 | 9:29 pm Rupee weakens on strong dollar overseasMumbai: The Indian rupee weakened on Friday on dollar strength overseas as the flat domestic share market failed to provide any cues, traders said. At 9:06am, the partially convertible rupee was at Rs45.66/67 per dollar from Thursday’s close of Rs45.62/63 per dollar. The index of the dollar against six major currencies was up 0.4%. Dealers said the rupee may touch Rs45.74/75 to the dollar during intra-day trade. Indian shares rose 0.2% in early trade on Friday, led by gains in Reliance Industries and ICICI Bank and supported by gains on Wall Street. Most Asian units were slightly weaker compared to the US dollar on Friday. Source: Home - Livemint.com | 14 Jan 2010 | 9:20 pm Sensex up 55 points in early tradeThe Bombay Stock Exchange benchmark Sensex on Friday gained 55 points in early trade on fresh buying by funds ahead of the quarterly results of firms led by software major Tata Consultancy Services.Source: India Business News | Business News - Times of India | 14 Jan 2010 | 9:19 pm Inflation at 7%; all eyes on RBI nowNew Delhi: India’s monthly headline inflation rose on higher food prices, both primary and manufactured, and touched a 13-month high of 7.31% for December, up from 4.78% the previous month. Analysts and bankers say that while the central bank would move to tighten liquidity, the economic conditions are still not sufficient to justify a rate hike during its forthcoming policy review on 29 January.  In December, inflation of food items reached 19.17% on the back of higher prices of pulses (42% higher than the year before), vegetables (39%), and potatoes (124%). Prices of manufactured food items also rose by 26% during the month, mainly due to higher sugar prices (54%). The weak monsoon rains, 23% lower than average and the weakest since 1972, have harmed agricultural production in many parts of the country, leading to a spurt in food prices. The government on Wednesday announced a host of supply-side measures to curb rising food prices. It announced import of refined sugar at zero duty till 31 December, selling of 2-3 million tonnes of wheat and rice in the open market over the next two months and asked state-owned trading firms to intensify import of pulses. The Union government has also decided to convene a meeting of state chief ministers by the end of this month to contain hoarding of essential commodities such as wheat, rice, edible oils and sugar. However, weekly inflation figures, also released by the commerce and industry ministry on Thursday for the week ended 2 January, showed food inflation coming down to 17.28%, against 18.2% in the previous week. “Week-on-week it (food inflation) is down, which is a very good (sign). There are a whole lot of measures that (we) are going through that have been decided on,” chief economic adviser at the finance ministry Kaushik Basu said. Satish Chandra Jha, economist and former member of the Prime Minister’s economic advisory council, said that the present spike in inflation is mainly due to artificial supply constraints because of hoarding and deficiencies in distribution systems.  Graphic: Ahmed Raza Khan / Mint “The government is now looking into these loopholes. The general expectation is, in next couple of weeks food prices will come down with the fresh government measures and arrival of rabi (winter) crops in the market, unless something seriously goes wrong,” he added. The present inflation level is much higher than the expectations of the Reserve Bank of India (RBI). In its second quarter review of monetary policy in October, the central bank had projected that baseline WPI (Wholesale Price Index) inflation would touch 6.5% by 31 March, “with an upward bias”—up from the 5% forecast in its first quarter review in July. However, as the current drive in inflation is mainly attributed to supply-side constraints on the food items front, economists do not expect RBI to raise policy rates immediately. “We don’t have concrete conditions for a rate hike as yet. RBI may not act in a hurry. April is where we see possibility of rate action,” said Shubada Rao, chief economist at Yes Bank Ltd. Rao said the economic environment is better, but that “it might be a while before industry has the confidence to pass on any increase in raw material prices to the consumer. For the moment, we expect RBI to continue with its policy of draining liquidity through a likely increase in CRR”. CRR, or cash reserve ratio, defines the amount of money banks have to keep with RBI. RBI’s rate decision is more dependent on their perception of how quickly inflation is percolating into non-food items and how much rate support the economy still requires rather than this WPI, Samiran Chakraborty, head of research at Standard and Chartered Bank, said. In a snap poll conducted by Mint among 12 bankers at the recently concluded Bancon, the annual conference of banks, majority of the bankers said RBI could hike CRR by 25-50 basis points from 5% at present, though that would not translate into rate hike by banks at least in the first half of this calendar year. One basis point is one-hundredth of a percentage point. A 50 basis points hike in CRR will suck out about Rs21,000 crore of liquidity from the monetary system. The last time RBI made a change in its policy rate and CRR was in April. Sanjiv Shankaran and PTI contributed to this story. Source: Home - Livemint.com | 14 Jan 2010 | 9:17 pm Indian rupee weakens on strong dollar overseasThe Indian rupee weakened on Friday on dollar strength overseas as the flat domestic share market failed to provide any cues, traders said.Source: India Business News | Business News - Times of India | 14 Jan 2010 | 8:46 pm Metals join food to lift inflation to 1-year high - Economic Times
Source: Business - Google News | 14 Jan 2010 | 3:39 pm Obama proposes bank fee, slams Wall StreetWASHINGTON (Reuters) - U.S. President Barack Obama on Thursday proposed Wall Street banks pay up to $117 billion to reimburse taxpayers for the financial bailout, as he slammed bankers for their "massive profits and obscene bonuses."Source: Reuters: Money News | 14 Jan 2010 | 1:58 pm Expert group to review foreign fundsWith a view to regulate foreign money coming into the economy, the finance ministry has set up a working group to rationalise the present arrangements on all inflows.Source: India Business News | Business News - Times of India | 14 Jan 2010 | 1:46 pm Concrete highways a possibility: NathCement industry is now pitching for concrete highways in the light of road, transport and highways ministrys plan to construct over 18,000 km greenfield expressways by 2032.Source: India Business News | Business News - Times of India | 14 Jan 2010 | 1:45 pm No decision on PSU oil cos lossesFinance minister Pranab Mukherjee and oil minister Murli Deora failed to find a common ground on how much compensation should be paid to state-run retailers for losses they suffered for selling fuel at artificially low prices.Source: India Business News | Business News - Times of India | 14 Jan 2010 | 1:43 pm Rs 30,000 cr loans may turn bad in 2010Indian banks appear to have saddled themselves with significant liabilities with a report pointing to big accumulation of non-performing assets (NPAs) in 2010.Source: India Business News | Business News - Times of India | 14 Jan 2010 | 1:39 pm Govt plans energy-saving credit marketIndia plans to start a market to trade energy-saving credits that may reach Rs 74000 crore ($16 billion) in five years as it seeks to curb emissions that cause global warming.Source: India Business News | Business News - Times of India | 14 Jan 2010 | 1:23 pm Inflation jumps to 7 3 in DecIndia’s wholesale inflation rose by 7.3 per cent in December, even as policymakers launched a plan to contain prices by shoring up supplies of staple items such as sugar and foodgrain.Source: HindustanTimes.com - Top Business News Headlines | 14 Jan 2010 | 12:36 pm ITC stake in Leela rises to 7.37%ITCs investment arm Russell Credit has raised its stake in Hotel Leelaventure to 7.37 per cent an increase of 2.26 percentage points.Source: Business Standard | Front Page Headlines | 14 Jan 2010 | 12:34 pm IGI crashes on radar blip200 flights disrupted for over 3 hours.Source: Business Standard | Front Page Headlines | 14 Jan 2010 | 12:22 pm GTL Infra acquires Aircel tower business for Rs 8400 cr - Economic Times
Source: Business - Google News | 14 Jan 2010 | 12:14 pm The Mint Report for 14 January 2010 New Delhi: India’s headline inflation figures shot up last month. The wholesale price index rose 7.31% in December, the highest figure in over a year. In November the index rose just 4.78%. While food inflation has been high for a long time, economists say the high figures for wholesale inflation indicate that inflationary pressures are now affecting India’s manufacturing sector as well. India is turning to the markets to combat pollution. The Bureau of Energy Efficiency says the government plans to start a market for trading energy saving credits. The credits will be awarded to companies that exceed their energy efficiency targets. Firms will then be able to sell those credits to others who don’t meet their targets. There’s bad news for government oil companies. The finance ministry has offered them less than half the money they want as compensation for retailing kerosene and diesel. State-run oil companies want Rs31,700 crore in compensation for selling the two fuels at below the market price. Pipe-making company Jindal Saw has posted impressive results in the last quarter of 2009. Its net profits rose 49.73% to Rs170 crore in the quarter ending 31 December. South Indian Bank has also made gains in the quarter. Its net profit went up 15.2% to reach Rs62.5 crore. HIV AIDS may have killed some two million people around the world in 2008, but scientists now warn that the situation could get worse. A study in Friday’s issue of the American magazine Science says new strains of HIV that are resistant to drugs pose a threat to global public health. The study suggests drug resistant strains are more likely to be transmitted than previously thought; and its authors say organisations like the WHO need to rethink their HIV strategies. Source: LatestNews-Home - Livemint.com | 14 Jan 2010 | 11:49 am Mallya’s latest offering to give Bangalore a shot at luxe livingBangalore: One of his businesses gives people highs of one kind, and another takes them to highs of another kind. Now, billionaire Vijay Mallya, known as much for his liquor and airline businesses as for his flashy lifestyle, will try and serve yet another kind of high—to a select few.  Plush living: Vijay Mallya’s mansion in Bangalore. In association with Prestige Estates, Mallya is developing a luxury apartment block in Bangalore that will stand where his ancestral bungalow now does. Hemant Mishra / Mint Mallya, in association with Prestige Estates Projects Pvt. Ltd, is developing K2, a luxury apartment block in central Bangalore that will stand where his ancestral bungalow now does. Prestige has a 45% stake in the development—a 33-storey complex, with six levels of parking, multiple tennis courts, swimming pools, and the additional benefit of the liquor baron for a neighbour. Mallya will take the top three floors of the building, which will have 125 flats of 3,000 sq. ft and 6,000 sq. ft. The development is already making waves in a city that remains a conservative and price-sensitive realty market where flats sell for Rs3,000-4,000 per sq. ft. In contrast, apartments in K2, which is a working name for the project and may be changed later, will sell for at least Rs20,000 per sq. ft, say property consultants. At that rate, a 3,000 sq. ft apartment will cost Rs6 crore and a 6,000 sq. ft one Rs12 crore. Mallya and Prestige aren’t the only ones eyeing the super-luxury market in Bangalore. Dubai’s ETA Star Property Developers (P) Ltd, Skyline Constructions Ltd and Mantri Developers Pvt. Ltd too have set out to build multi-crore apartments at a time when conventional wisdom in the real estate business favours budget and mid-income homes. Mallya and the corporate communications head of his UB Group could not be reached for comment. “The concept of K2 is to own a palace in the sky, with the lower six floors reserved for parking,” said Irfan Razack, promoter of Prestige Estates. “Plans are being frozen and will be submitted for mandatory sanctions. We begin construction mid-year and expect to finish by 2013.” Besides K2, Prestige Estates, which has filed for approval to make an initial offering of shares to the public, is building 5,000 sq. ft duplex apartments, each with its own garden, on Lavelle Road, near both K2 and UB City, a high-end retail and commercial development, and plans to sell these for around Rs7.5 crore each. “The new trend of luxury apartments marks a paradigm shift in the development pattern of the city, which is known for its villas,” said Farook Mahmood, president of the Bangalore Realtors Association and chairman of Silverline Realty Pvt. Ltd, a property advisory. “People now want high-end homes in central locations, with a good view along with amenities and security.” The recovery in Bangalore’s property market has been slower compared with Mumbai or Delhi, where luxury realty projects have made a comeback, but developers here are upbeat about finding buyers. Skyline Constructions, a local developer, is constructing its most expensive project near Resthouse Road—a posh, residential neighbourhood. The plan is to build a niche project with only six 7,000 sq. ft apartments in both single-level and duplex formats. Each apartment will cost Rs14-15 crore. Two senior marketing executives at the company, none of whom wanted to be identified, said they would have no problems finding a buyer. That’s a refrain other developers are singing as well. In the past two months, Mahmood says he has closed deals in central Bangalore for apartments priced between Rs4 crore and Rs14 crore. ETA Star’s 26-acre residential complex Greens, in west Bangalore, is around 40% unsold, but the company is still building Beau Monde, a building that will have 14 apartments, one on each floor. Each apartment will be priced at around Rs6 crore. “Eight floors have already been constructed and the project has been designed by architect Umar Nissar,” said a spokesperson for ETA Star. And Mantri Developers has launched its Espania project after the success of Mantri Altius, a luxury residential project in the city. Espania has around 340 apartments and 24 penthouses, with prices starting at Rs1.15 crore and going up to Rs10 crore. “There is a certain snob value attached to these projects and though it’s a relatively new phenomenon in Bangalore, we have seen good demand,” said Snehal Mantri, director (marketing) at Mantri Developers. To be sure, luxury housing isn’t a new concept in India. Mumbai has featured in global housing surveys as one of the most expensive realty locations, with properties at south Mumbai’s Altamount Road priced at Rs98,500 a sq. ft. Bangalore’s luxury market has been subdued in comparison, with most people in the city opting to buy land and build independent homes, however small, often with an attached garden. Urban planners and property consultants believe the concept of high-end apartments has emerged after large-scale immigration into Bangalore happened due to the IT boom and land prices started rising. “Bangalore changed with the wealth that large IT companies brought into it and (with) developers who came in and set new building patterns that led to the city’s cosmopolitan development,” said A. Ravindra, adviser (urban affairs) to the chief minister of Karnataka. The shift from villas to apartments is a natural movement, he added. Still, some property consultants and developers say that it will be difficult to sell apartments costing over Rs5 crore—one reason why most luxury projects are small in scale. Girish Puravankara-founded start-up Lalith Gangadhar Constructions Pvt. Ltd (LGCL) has kept the average price of its villas in its Ashlar project at Rs2 crore. “There are buyers for more expensive properties, but they have to find real value to invest in them,” said Puravankara, a cousin of Ravi Puravankara, promoter of Puravankara Projects Ltd, and who quit that firm in 2007 to set up LGCL. madhurima.n@livemint.com Source: LatestNews-Home - Livemint.com | 14 Jan 2010 | 11:28 am Retail investors back on IPO gains, earningsMumbai: Pankaj Sharma, a sales executive at Marathi newspaper Pudhari in Mumbai, stopped trading in stocks a few months ago because he “couldn’t get good returns”. As “things have changed and the market is stable”, he is now back in the market. “There are also many IPOs (initial public offerings) coming up, which offer a good opportunity,” he adds. Sharma is one of the many retail investors who have returned to the equity market, buoyed by listing gains in new share sales and hopes of strong returns on the back of higher corporate earnings. Unlike in the past year, when many firms, including Adani Power Ltd and NHPC Ltd, had disappointing debuts in the market, the three firms that have listed on the bourses so far in 2010, have offered handsome returns on listing. DB Corp. Ltd, a newspaper publisher, gained 25% on listing, while Godrej Properties Ltd opened trading at a 9% premium. The latest one to list, MBL Infrastructure Ltd gained 14.3% on listing day. Till recently, retail investors were reluctant to trade in equities after burning their fingers in the crash of 2008. In fact, investors in mutual funds exited their investments in the last four months of 2009. These investors had bought mutual fund units in early 2008 at the peak of the market and, after the crash and subsequent recovery, were happy to exit with marginal gains, even lower losses. The number of new investors—a statistic that can be gauged from looking at the number of demat accounts—is increasing too. Data from two Indian depositories—National Securities Depository Ltd and Central Depository Services (India) Ltd—shows that on an average 180,000 new accounts have been opened every month, net of closures, in the second half of 2009, compared with 76,000 in the first half. Many investors open such accounts because they want to subscribe to new share sales or IPOs. The scope in this space is only widening. At least 63 companies have filed draft prospectuses with market regulator Securities and Exchange Board of India (Sebi), to sell shares, according to Prime Database, a New Delhi-based primary market tracker. Industry experts also expect a surge in the number of new demat accounts because of the government’s disinvestment plans, through which the Centre expects to raise at least Rs30,000 crore. State-owned firms already listed on the exchanges, including NTPC Ltd, NMDC Ltd, Steel Authority of India Ltd and Rural Electrification Corp. Ltd are selling more shares, while others such as Bharat Sanchar Nigam Ltd and Satluj Jal Vidyut Nigam Ltd are planning new share sales. While the number of new demat accounts being opened is an indication of new investors’ entry into the market, the rising volume in the cash segment (the other is the derivatives one) and the growth in margin financing books of brokers and non-banking financial companies (NBFCs) indicate renewed interest of existing investors. “People (retail investors) are coming back and numbers are increasing,” said Motilal Oswal, chairman and managing director of Motilal Oswal Financial Services Ltd. “There is still that ‘left out’ feeling (of having missed the rally). But markets are stable now, the comfort level is there and that’s what’s driving retail interest.” “In the last fortnight, interest in the cash segment has improved,” which is a sign of increasing non-institutional participation, said Trivikram Kamath, executive vice-president at Kotak Securities Ltd. Daily volumes in the cash segment have averaged 1.56 billion shares in the past 10 days, a level not seen since September. The return of retail investors is also led, in part, by day traders such as Amit Patel coming back to the market. Patel, who works in a software firm, said “there are many opportunities for day trading, especially in small and mid-cap stocks”. Indeed, the broader indices have outperformed the benchmark Sensex in recent months. The BSE Mid-Cap Index rose 7.64% in the last month and the Small-Cap Index 12.64%, compared with the 2.85% rise in the Sensex. Some of the small- and mid-cap stocks have risen phenomenally in past one month. For instance, Gujarat NRE Coke Ltd has posted a 38.7% gain, while Sterlite Technologies Ltd improved 33.37%. The rise in volumes is also a result of high networth individuals trading in these categories, said brokers. One piece of evidence for this is the rise in the margin financing or investors borrowing money to buy stocks. Sebi allows up to 50% of such financing. Investors pay a certain portion for the stocks they buy and borrow the rest from brokers or NBFCs. The collateral for the funds being borrowed is the securities in the investor’s account. “The number of accounts opened for accessing such funds has increased and the (margin financing) book is increasing at a healthy rate,” said Nandip Vaidya, president of retail broking at India Infoline Ltd. Divyesh Shah, who heads Indiabulls Financial Services Ltd’s securities arms, said the firm’s margin-funding book has increased by one-third compared with a quarter ago, but declined to disclose numbers. The Sensex has gained 115.49% since its lows of March. A survey of nine broking houses by Mint disclosed that all of them expected Indian firms to post double-digit profit and revenue gains for the three months ended December. The first set of results from India’s second largest motorcycle maker Bajaj Auto Ltd and Infosys Technologies Ltd confirm this trend. Bajaj posted a 189% growth while the software bellwether beat the Street’s expectations and raised its guidance for fiscal 2010. The Index of Industrial Production grew at its fastest pace in 25 months in November, reinforcing growing perceptions among investors and analysts that the Indian economy is back on track. That could explain why, despite wholesale price-based monthly inflation rising to 7.31% in December, higher than the central bank’s projection for March, the Sensex rose 0.43% to close at 17,584.87 on Thursday. Ashwin Ramarathinam contributed to this story. Source: LatestNews-Home - Livemint.com | 14 Jan 2010 | 11:27 am Inspiring, informal and always encouragingI first met R. Ravimohan in Mahabaleshwar, the largest hill station in Maharashtra, in December 1996. I was part of a group of journalists that went to the resort to attend the Indian Banks’ Association’s annual meeting, hosted by United Western Bank Ltd (later taken over by IDBI Bank). After filing reports on three successive sessions, on my way to the hotel late in the evening, I spotted a shadow flitting through the trees along the road. As my car stopped, Ravimohan emerged from the jungle and walked up to me, introduced himself and said he would have hated to miss the rare opportunity of looking at the full moon on a December evening at a hill station (1,372m above sea level), surrounded by trees and the sound of crickets.  Fostering debate: R. Ravimohan. He was staying at some other hotel but came with me to mine, quickly organized a couple of cars to ferry a large group of journalists to a bar and chatted with us on banking and the economy until late in the night, holding a glass of Coke. Needless to say, he picked up the tab as well. That was quintessential Ravimohan, then boss of the rating agency Crisil Ltd. Always ready to encourage young professionals and discuss serious issues with a smile on his face. He was the youngest team member in the project finance department at the erstwhile financial institution ICICI Ltd that used to appraise Reliance Industries Ltd’s projects. N. Vaghul, then chairman of ICICI, put him on the fast track for promotions and gave him more and more responsibilities. He was put in charge of the OTC (Over the Counter) Exchange of India, but when that did not take off, he was sent to head Crisil in 1995 after its managing director Pradip Shah left. The Vaghul protégé was dumbstuck by the independence and working style of youngsters in Crisil and quickly learnt from his colleagues about how to run a rating agency. At that time, the average age of Crisil employees was 26 and on many occasions Ravimohan had said it would have been even lower but for him and one Mr Rao, a senior general manager. He encouraged the employees to debate every issue and changed the entire incentive structure by adopting what he called a “cafeteria approach”. Within an overall package, he offered his colleagues the flexibility to choose different components and design their salary. He also removed chairs from his office and brought in sofas for a sense of informality. He offered cars to even mid-level executives and encouraged them to buy assets. Shah created Crisil but Ravimohan made what it is today by expanding its activities, attracting talent and empowering people. He introduced an exchange programme with global rating agency Standard and Poor’s and sent many Crisil employees to learn global practices. He even sent a few of his colleagues to the advanced management programme at Harvard University. A qualified chemical engineer, Ravimohan himself was a Harvard Business School alumnus.  Young at heart, he had a fascination for gadgets—from mobile phones to music, office aids and automation. Once he invited Pradeep Kar, founder and chairman of the Microland group, to talk on technology to Crisilites. He also introduced offsites at Crisil to brainstorm over issues, a novel concept in the 1990s. And he developed a unique tool of internal communication—“Ravi’s Rantings”. After meeting important people from companies, banks and the government, he would write down what he had learnt from his meetings and circulate the notes among his colleagues without identifying the people he had met. Ravimohan joined the Reliance Industries’ board in August as an executive director valued for his extensive expertise in the area of risk assessment and management. A Reuters report on Tuesday said he was involved in the company’s bid for the petrochemicals maker LyondellBasell Industries. Most of us know Ravimohan for his role at Crisil and later at Standard and Poor’s as the South Asia managing director and region head. Ravimohan did not believe in the boss being a sacred cow. He always encouraged boss bashing and Crisil executives could have an open house whenever they wanted and criticize him. On Monday evening, while taking his evening walk on Marine Drive, he suffered a cardiac arrest and died. Ravimohan was 52. Many Crisilites called me around midnight Monday, and on Tuesday morning to say their boss was dead. tamal.b@livemint.com Source: LatestNews-Home - Livemint.com | 14 Jan 2010 | 11:21 am Telugu film industry hit by Telangana stir Hyderabad: Last year it was the economic slowdown, the slump in real estate and piracy that laid the Telugu film industry low.  Security show: Police personnel outside Odeon theatre in Hyderabad that is screening Adhurs, a movie starring Jr NTR, son of senior TDP leader N. Harikrishna, who is opposed to the creation of Telangana. Bharath Sai / Mint This year, it is the ongoing political movements for and against the bifurcation of Andhra Pradesh that is wreaking havoc on the industry, bigger than Bollywood in terms of number of releases and second only to it in terms of business. For the film industry, the move to create a separate state, Telangana, from Andhra Pradesh, couldn’t have come at a worse time. The industry saw only 130 releases last year (of movies made in Telugu and not dubbed into it) as compared with at least 200 in 2008. And of this, only 12 movies did well. Of the 105 movies dubbed from other languages (including English) and released last year, only around 10 did well. “The drastic fall in number of successful movies last year had a chain effect on the entire film industry, from producers to distributors to exhibitors all of them suffering huge losses,” says T. Prasanna Kumar, secretary of Telugu Film Producers’ Council, an industry body. And the year has started off with pro-Telangana agitators targeting actors and others associated with the film industry, attacking shooting crews, vandalizing sets, even stalling the screening of movies in the region, comprising 10 districts, including state capital Hyderabad. The result could be another year of losses for an industry that directly and indirectly, serves as the means of livelihood of over one million people in the state. K.C. Sekhar Babu, a film producer and secretary of the Andhra Pradesh Chamber of Commerce, says: “We are losing Rs7 crore daily owing to issues such as postponement of releases and rescheduling of shootings.” Andhra Pradesh has the highest number of cinema halls in the country, around 2,800 across the three regions of the state, of which Telangana alone accounts for around 800, which contribute approximately 40% of total box-office collections, says Mareddi Vijayender Reddy, president of the Telangana Film Chamber of Commerce, another industry body. Pro-Telangana agitators, led by Kavitha, daughter of Telangana Rashtra Samithi (TRS) president K. Chandrasekhar Rao, say that they are targeting only those actors and producers who are either directly or indirectly associated with supporters of a united Andhra Pradesh. That covers several larger-than-life actors and producers many of whom had releases lined up for Christmas or Sankranthi (the harvest festival). Typically, movies of top heroes are released during the festive and holiday seasons, mostly during Christmas and Sankranthi—box-office takings in this period contribute up to 30-40% of annual collections. The agitation has forced film-makers to postpone these releases, says Prasanna Kumar. Among the actors being targeted by pro-Telangana protestors are Ram Charan and Allu Arjun, son and nephew, respectively, of Chiranjeevi, the actor-turned-politician; Manchu Manoj and Manchu Vishnu, sons of another actor-turned-politician Mohan Babu, a former member of Parliament; and Junior Nandamuri Taraka Rama Rao (Jr NTR) from the family of late NTR, which is backing the Telugu Desam Party (TDP). Both Chiranjeevi and Mohan Babu are strongly opposing Andhra Pradesh’s bifurcation, while Jr NTR’s father and senior TDP leader, N. Harikrishna, had resigned as a member of Parliament protesting the Union government’s move to create Telangana. On Tuesday, the Andhra Pradesh high court directed the director general of police to provide adequate police protection to theatres in the Telangana region screening Adhurs, a movie starring Jr NTR, following a petition filed by the producers of the movie. On Thursday evening, TRS withdrew its call for the boycotting of Adhurs. This followed a meeting of an all-party Point Action Committee, which includes TRS, on Wednesday that found fault with the party for attacking theatres screening the movie. Like Jr NTR’s family, most people in the Telugu film industry have their roots in coastal Andhra Pradesh. Many of them are either directly or indirectly associated with people opposing bifurcation of the state. “There is lot of confusion and nervousness. We are basically here to entertain people and we can feel comfortable only when there is peace and normalcy around,” says D. Suresh Babu of Suresh Productions. The protests for and against Telangana, which gathered momentum in the dying moments of 2009, made their impact that year itself. Kumar claims the industry lost around Rs50 crore in 2009 because of these. More than protests The protests, and the ensuing losses, could force the already-ailing Telugu film industry to reinvent itself, say producers and others associated with the industry. Piracy and staleness (in plots) are identified by most of them as the primary reasons behind the industry’s decline. And the situation hasn’t been helped by producers throwing money at films in the hope that they may succeed. “The producers’ council has recently appointed a committee that would look into the issue of needless expenditure and suggest measure to the members on avoiding such unjustifiable expenses,” says Kumar. The industry is looking forward to the government’s policy on tackling piracy, he adds. Meanwhile, the industry’s misfortunes appear to be having a cascading effect. “With a number of flops throughout the year, film shootings have significantly come down, affecting the livelihood of thousands of families,” says J. Laxmikanth Reddy, a leading supplier of generators and lights for outdoor film shooting in Hyderabad. Film-makers typically pay their dues when they release films, added Reddy, and the postponement of releases hasn’t helped the cause of suppliers like him. “We used to get wages of Rs365 a day, at least for 15-20 days in a month. We don’t have work for the last two months as film and TV shootings are virtually stalled,” says Siddhanthi Ashok Kumar, general secretary of the Andhra Pradesh Motion Pictures and Television Drivers’ Union, which has over 800 members on its rolls. “At least 400-600 members lost their means of livelihood when the film shooting of (actor) Mahesh Babu was stalled after agitators damaged film sets worth couple of crores of rupees last month,” he adds. D. Vijayudu, a driver who works for the film industry, says he hasn’t had a day’s work in two months. “I migrated to Hyderabad from Mahaboobnagar district in Telangana 12 years back and had never seen such bad days for people like me.” Still, Vijayudu adds, he is better off. “As a driver, I can at least try and shift to other work. I feel pity for thousands of junior artists who can’t do this.” Source: LatestNews-Home - Livemint.com | 14 Jan 2010 | 11:16 am Quick Edit | Where dreams go to die Imagine you’re a city-state that has no real economy, whose population left en masse during a recession, and which came close to defaulting on $60 billion (Rs2.73 trillion) of debt. What do you do next? Proceed to tell the United Nations that you’re ready to serve as its next headquarters. If this is too hard to believe, remind yourself just as Dubai tirelessly reminds its tourists: that there’s “nowhere like Dubai”. True, nowhere in the world will a government brag about its worthiness as headquarters to the premier world body—as Dubai did on Thursday—barely two months after its flagship state company announced a debt standstill. Nowhere in the world either will a government spend so much on ostentation—indoor ski slopes, the world’s tallest building (Burj Khalifa) that was inaugurated this month—when there is no real foundation. Dubai, unlike its neighbours, has no oil. Then again, as the boom years of last decade show, you can always make dreams by building a Burj-high mountain of debt. Of course, dreams built on a foundation of sand might just come crashing down. Source: LatestNews-Home - Livemint.com | 14 Jan 2010 | 11:03 am Scientists fear HIV drug resistance may riseBangalore: The human immunodeficiency virus, or HIV, infection is draining the global public health systems, has infected 2.7 million people and caused two million deaths in 2008, but things could get even worse, warn scientists—the emergence of a wave of drug-resistant strains of the virus could hinder efforts to control the pandemic. Click here to watch a slideshow of graphics from the Science study, depicting how HIV drug resistance could soar. Using a complex network model that takes into account single-, double-, and triple-resistant strains of the virus, a team of US researchers report in Friday’s Science that there’s a threat to global public health from strains of HIV that are resistant to traditional antiretroviral treatments. This model, they say, can be used to predict drug resistance in any place where individuals are being treated with antiretrovirals (ARVs) for HIV infection, including India, where even the second line of ARVs are now part of the national AIDS control programme. This is a very “novel” study that discusses dynamics of transmission of the drug-resistant HIV strains based on the data collected in San Francisco among men having sex with men, says Ramesh Paranjape, director of the National AIDS Research Institute in Pune.  Dangerous cure: Medical officers handing out monthly doses of antiretroviral medicines to two HIV+ patients (back to the camera) at the Calcutta Rescue Clinic, Tala Park, in Kolkata. Indranil Bhoumik/Mint While using HIV prevalence and resistance data from San Francisco, the model accurately reproduced the documented evolution of transmitted resistance in the city over the past two decades. It showed, surprisingly, that many of the drug-resistant strains which have evolved over the past 10 years in San Francisco are much more transmissible than has been previously thought. The research also reveals that while effective treatment has kept the transmission of resistant HIV under 15% in San Francisco, a full 60% of the resistant HIV strains in the city are capable of causing self-sustaining epidemics. Recalibration of the model for a new region would require prevalence and treatment data such as the type and duration of the drugs being used, their effectiveness in suppressing viral load and reducing mortality, rates of drug resistance, and the fraction of people needing the drug who actually take it. “This isn’t just about San Francisco,” stresses senior author Sally Blower, director of the Center for Biomedical Modeling and a member of the University of California Los Angeles AIDS Institute. “San Francisco is like the canary in the mine. In fact, the most significant implications of our work are for countries where treatment is just being rolled out.” Paranjape agrees, although he admits there is a need for generating more systematic data in India. Based on current field data, the ARV resistance level in India is “on a par with Europe, Thailand or Africa”, according to an expert at an HIV/AIDS care and research organization in Chennai, who doesn’t want to be named because he is not authorized to speak to the media. However, it’s the likely scenario in developing countries that worries researchers. Their modelling shows the proposed strategy for HIV elimination by the World Health Organization could “inadvertently make things worse”. The recently proposed “universal test and treat” strategy of WHO includes universal testing every year and is based on first-line regimens. Blower says this strategy has been decided based on WHO’s modelling study published in the medical journal Lancet and is simplistic, based on the assumption that drug resistant strains would not evolve and be transmitted. “If the WHO model included (as our model does) that drug resistant strains will evolve and be transmitted they would find (as we have found) that HIV elimination is very unlikely and that their strategy will lead to a great many people becoming infected with drug-resistant strains,” says Blower. “Therefore, I strongly believe that the WHO universal ‘test and treat’ strategy for HIV elimination is very misguided and could lead to very serious public health problems in resource-constrained countries such as India.” Though the Chennai expert says the WHO strategy will be implemented with “appropriate human subjects’ approval and ethical guidance only”, the present findings build a strong case for using drug resistance data as a basis for future strategy. Notwithstanding the fact that the study is done among the homosexuals in San Francisco, which is a fairly well- networked community, Paranjape says the study provides an opportunity to “recalibrate the model and generate very important information that may have impact on treatment policies”. seema.s@livemint.com Source: LatestNews-Home - Livemint.com | 14 Jan 2010 | 10:56 am Google’s threat to withdraw stands outHong Kong/Shanghai: Search engine firm, Google Inc. is far from alone among Western companies in its growing unhappiness with Chinese government policies, although it is highly unusual in threatening to pull out of the country entirely in protest. Western companies contend that they face a lengthening list of obstacles to doing business in China, from “buy Chinese” government procurement policies to widespread counterfeiting to growing restrictions on foreign investments. Some of these obstacles are a result of China’s desire to maintain control over internal dissent. Others stem from China’s efforts to become internationally competitive in as many industries as possible. Google’s difficulties and its strong response are indicative of a broader shift in sentiment among multinational executives in China. “I have never seen the foreign business sentiment as pessimistic as it is right now,” said James McGregor, a consultant in Beijing. “There’s a sense China is saying, ‘We have your technology and your capital—and now we have control of the market’.” Google complained on Tuesday about attacks on its computers that it said originated in China and said it was no longer willing to censor its Chinese site’s search results. It is not the first company to run afoul of the Chinese Communist Party’s fears of social instability and strong desire to keep tabs on dissidents and limit freedom of expression. China has long restricted the sale of foreign movies, books, music and other media and continues to do so while appealing a World Trade Organization (WHO) ruling in August that these policies violate China’s legally binding commitments to the international free trade system. More recently, China has sought to strengthen its domestic encryption industry—for which the government has easy access to all the decryption codes—while withholding the government certification that foreign-owned encryption companies in China need to sell their products to many users. Joerg Wuttke, president of the European Union Chamber of Commerce in China, said no European Union company had pulled out of China yet. But he said that the encryption dispute would be the most likely cause for withdrawal in the near future. Duncan Clark, chairman of BDA, a consulting firm in Beijing that advises major telecom and technology companies, said that Google’s difficulties were indicative of broader troubles for foreign companies in China. “There has been a raft of decisions and unpredictability, a kind of unpleasantness about what’s happening here,” Clark said. “There has been this received wisdom that no one can afford not to be in China, but that is being questioned now— there’s kind of an arrogance that’s characterizing government policy toward multinationals.” To be sure, doing business in China has never been easy. Foreign companies have long complained of being cheated by joint venture partners who set up parallel businesses on the side or abscond with assets. Many other countries also have policies that favour home grown companies, though the opportunity for industrialized countries to do so is limited because they operate under tighter WTO rules than China. Chinese officials and academics dispute whether government policies are discriminatory toward foreign companies. Hu Yong, an associate professor of journalism and communication at Peking University, said the government was cautious of the rapid expansion of the Net and mistrustful of private Chinese firms as well as foreign businesses. “I think in the information technology sector, not only foreign companies are under very heavy pressure, but also private domestic companies,” he said. “The general trend is that the government wants state-owned companies to occupy major positions in this field.” Other strains between China and the West over business matters have grown out of government policies that shield Chinese companies from international competition. These policies allow companies to grow in a large home market and prepare to export to less protected markets abroad. The newest frictions, particularly in the last year, have been over government procurement policy. When China joined WTO in November 2001, it promised to negotiate as quickly as possible to join the organization’s side agreement requiring free trade in government buying. But it has never actually done so, leaving the Chinese government free to use its enormous buying power to steer contracts to Chinese-owned companies. The National Development and Reform Commission, China’s top economic planning agency, ordered national, provincial and local government agencies on 4 June to buy only Chinese-made products as part of the country’s nearly $600 billion economic stimulus program; imports were only allowed when no suitable Chinese product was available. China has also restricted exports of a long list of minerals for which it mines much of the world’s supply, from zinc for making galvanized steel to so-called rare earth elements for manufacturing hybrid gasoline-electric cars. Those restrictions, ranging from steep export tariffs to tonnage quotas and even export bans, have made it cheaper for many manufacturers to locate their factories in China to make sure they have a plentiful supply of raw materials free from export taxes. In June, the US and the European Union filed a WTO case challenging China’s restrictions on zinc and bauxite exports. The Chinese government has denied wrongdoing. China’s weak protections for patents and trademarks—and widespread counterfeiting as a result—have produced large industries that make goods in direct competition with Western competitors, but without comparable spending on research or marketing. Many Western firms have tried to respond by limiting the intellectual property they transfer to China. Oded Shenkar, a professor of business management at Ohio State University and author of The Chinese Century, said very few companies would be willing to leave a market as big as China’s, and that it might make sense only for a company such as Google, whose primacy rested almost entirely on intellectual property. “The US is the world’s greatest innovator and China is the world’s greatest imitator,” Shenkar said. “Google? What do they have other than intellectual property? If by being in China you’re at risk of losing it, maybe you don’t want to be there.” But the Chinese market is so large and competitive that many multinationals choose to offer their latest technology for fear of losing market share if they don’t. Volkswagen AG used dated technology in the cars it sold here in the 1980s and 1990s, so the Chinese government asked multinational auto makers in the mid-1990s which of them would offer the most advanced technology in exchange for the right to enter the market and build a factory in Shanghai. General Motors won the contest and brought its latest robots and automotive designs to China in a joint venture with Shanghai Automotive. China has become the world’s largest auto market, yet it still limits foreign automakers to 50% stakes in auto assembly plants in China and imposes steep tariffs on imported cars. Chinese auto makers that formed joint ventures with multinationals, such as First Auto Works and Shanghai Automotive, have grown into giants now beginning to produce their own models, designed and built almost entirely in China. China has been introducing similar policies to force international firms to transfer their best technology in a long list of industries, such as railroad locomotive manufacturing and aircraft assembly. It has also tried to give market preferences to domestic companies that invest in developing their own technology, even if the home-grown technology is initially inferior to foreign technology. McGregor suggested that Google’s decision might prove to be a turning point. “There is a lot of feeling that the US is on a downward spiral and China is on the rise,” he said. ©2010/The New York Times feedback@livemint.com Michael Wines in Beijing contributed to this story. Source: World Business - Livemint.com | 14 Jan 2010 | 10:30 am Deora meets Mukherjee on oil price hike no decision takenFinance Minister Pranab Mukherjee and Petroleum Minister Murli Deora, who met Thursday to discuss the proposed fuel prices hike, were unable to agree on the quantum of support to be given to oil marketing companies for losses incurred by sale of subsidised petroleum products.Source: HindustanTimes.com - Top Business News Headlines | 14 Jan 2010 | 8:59 am Few burns for Wall St bankers on hot seatsAs cameras clacked Wednesday, four of America’s highest financial fliers — Lloyd C Blankfein of Goldman Sachs, Jamie Dimon of JPMorgan Chase, John J Mack of Morgan Stanley and Brian T Moynihan of Bank of America — took their places before the 10-member Financial Crisis Inquiry Commission that is charged with determining the causes of USA’s financial debacle.Source: HindustanTimes.com - Top Business News Headlines | 14 Jan 2010 | 8:51 am Local rival Baidu’s gain may be China’s loss if Google departsShanghai: If Google Inc. pulls out of China because of concerns over government controls, this country could be left with just one major Internet search engine: Baidu.com. And while that could initially bolster the prospects of Baidu (pronounced by-doo), a home-grown company that is already dominant in the country, analysts say Google’s departure could also slow the overall development of the Internet in China.  Waiting players: Users at a cyber cafe in Shanghai, China. Yahoo China and Microsoft also stand to gain if Google pulls out of China. Kevin Lee / Bloomberg Analysts say Baidu established a leading position in the Chinese market through a combination of factors, including a keen understanding of local tastes and its willingness to cooperate with government censorship efforts. Today, Baidu has about 300 million users, a market value of more than $15 billion (Rs68,250 crore), and 63% of Internet search revenue in China, nearly double the 33% share of Google, according to iResearch, a Chinese consulting firm. “It’s a duopoly in China,” said Richard Ji, an analyst at Morgan Stanley. “There’s just Baidu and Google. And Baidu’s way ahead.” Some analysts said Google’s inability to catch Baidu was one reason the US company might have decided it was willing to give up on the China market. Baidu was co-founded in 1999 by Robin Li, along with a young biochemist. The company was listed on Nasdaq in August 2005 at $27 a share. Li, 41, is now worth an estimated $3 billion, according to Forbes. Google, meanwhile, dipped its toes in the Chinese market back in 2000, when it developed a Chinese-language interface for its main Google.com site. In 2004, it acquired a small stake in Baidu, which was then a tiny start-up. In 2006, Google entered the market more directly by starting Google.cn, a search engine specifically built for Chinese users. At that time, Google agreed to censor Google.cn to screen out content that the Chinese government found objectionable, drawing criticism from some human rights groups. The company sold its $60 million stake in Baidu shortly thereafter. Despite its leading position in much of the world, it has had difficulty gaining ground on Baidu. In China, Internet users are mostly young and searching for music and entertainment rather than information. Baidu created a shopping mall of Web offerings, many of them imitations of popular websites such as MySpace. Baidu also dominates music downloads, often with links to websites that music companies say offer illegal downloads. Its strong relationship with the government contributed to its rise. “If the government wants something removed, it will do it immediately,” said Hong Bo, a consultant with Beijing consultancy 5G. If Google follows through on its threat, analysts say Yahoo China, whose market share has plummeted since being sold to a local company called Alibaba.com Ltd, could gain market share. Microsoft, which ranks fifth by share of searches, as per comScore, could also seek to fill the void. But if other search companies do not step in, Chinese users could be seriously hurt, some Internet experts said. “If Google really pulls out of China, for millions of citizens, they lose an excellent search engine and its relevant Internet services, like the Android mobile phone,” said Fang Xingdong, chief executive of Chinalabs.com, and the so-called father of the Chinese blog. “Chinese netizens are the biggest loser in this accident.” ©2010/The New York Times Bao Beibei contributed to this story. Source: World Business - Livemint.com | 14 Jan 2010 | 8:26 am Renault sees ‘tense’ auto market in 2010Boulogne-Billancourt, France: Renault SA said Thursday that sales of cars and light trucks fell 3.1 percent last year, despite a year-end surge as car buyers sought to benefit from government scrappage schemes before they are phased out. Renault said in a statement that as these incentives end, the market will remain “tense” in 2010. France’s second largest car marker sold 2.31 million vehicles in 2009, down from 2.38 million in 2008. In December, Renault saw a 40% increase in unit sales to 206,702 vehicles. Jerome Stoll, head of sales, said it is difficult to predict how markets will react to the phasing out of the scrappage schemes. “We will manage the reduction of scrappage incentives by continuing to try to win market share while being vigilant about the financial situation of the group,” he said in a press conference at Renault’s headquarters in Boulogne-Billancourt, outside Paris. France, like other governments, is cutting back on the incentive program, which initially offered a €1,000 ($1,440) bonus for trading in old cars for new ones. In the first half it has been cut to €700 in France, although Renault has said it will make up the difference until the end of February. Stoll said he will look at what competitors are doing and how markets are working to decide what happens in March. “Competition will be tough in 2010,” he said. Renault expects the European market to fall between 8 and 10% this year. The 3.1% decline in vehicle sales masks clear differences between regions and between the Renault and Dacia brands owned by the group. Renault unit sales dropped by 7.8%, while those of Renault’s low cost Romanian unit Dacia grew by 20.5%. Unit sales rose 1.5% in Europe, but fell by 10.9% in Renault’s other markets, pulled down by the collapse of car sales in countries like Russia. Renault said its market share rose by 0.1 points to 3.7% in 2009 and that it plans to increase that further this year. In France, Renault’s home market, market share rose by 0.6 points to 26% with sales volumes up 7.3%. Market share rose in 11 of Renault’s 15 biggest markets, but fell in Britain, Brazil and Iran. The results compare to cross-town rival PSA Peugeot Citroen SA, which said its sales of cars and light trucks slid 2.2% last year to 3.19 million units. Asked about mounting controversy in France about the possibility of Renault producing some of its popular Clio small cars in Turkey, Stoll insisted that “Renault is clearly a French group.” French President Nicolas Sarkozy, who has summoned CEO Carlos Ghosn to his Elysee palace in coming days, on Wednesday complained that large companies like to think they “no longer have a nationality.” Stoll noted that the cost of making a car in Turkey is €1,400 cheaper than France. “This gap exists,” he said. “We need to make sure we remain competitive.” Renault is studying the possibility of dividing production of the Clio 4 between plants in France and Turkey. Source: World Business - Livemint.com | 14 Jan 2010 | 2:54 am
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