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Indoco Remedies licenses out technology to US companyIndoco Remedies licenses out technology to US companyWatson Pharma. In an exclusive interview with CNBCTV18, Aditi Kare Panandikar, ED, Business Development and Human Resources, Indoco Remedies, talks about the deal.Source: Moneycontrol Top Headlines | 2 Feb 2010 | 8:44 am To achieve Rs 1,000cr turnover in FY10: BartronicsIn an interview with CNBCTV18, Sudhir Rao, Managing Director and Chief Executive Officer of Bartronics India, spoke about the latest happenings in the company.Source: Moneycontrol Top Headlines | 2 Feb 2010 | 8:38 am Expect revenue of Rs 1100cr in FY10: LT FoodsIn an interview with CNBCTV18, VK Arora, CMD of LT Foods, spoke about the latest happenings in his company and the road ahead.Source: Moneycontrol Top Headlines | 2 Feb 2010 | 8:25 am 660MW proj to be operational by Mar 2010: Adani PowerIn an interview with CNBCTV18, Ameet Desai, Director of Adani Power, spoke about the latest happenings in the company.Source: Moneycontrol Top Headlines | 2 Feb 2010 | 8:16 am Don\'t see major capacity addition in Q4: JK Lakshmi CementJK Lakshmi Cement has seen a good uptick in its dispatches for January. Dispatches were up 38% at 5.06 lakh tonne. In an interview with CNBCTV18, Shailendra Choukshey, Whole Time Director, JK Lakshmi Cement spoke about the company\'s business and the road ahead.Source: Moneycontrol Top Headlines | 2 Feb 2010 | 7:47 am Boeing to deliver 9 planes to Indian carriersUS aircraft maker Boeing plans to deliver 9 planes to India in calendar 2010, a senior official said on Tuesday.Source: Moneycontrol Top Headlines | 2 Feb 2010 | 7:41 am Indian Telecom Sector outlook in 2010: FitchFitch Ratings has today said, in a just published Special Report, that the Outlook for the Indian telecoms sector for 2010 is Stable to Negative.Source: Moneycontrol Top Headlines | 2 Feb 2010 | 7:19 am Alok Ind may sell properties to raise fundsTextiles maker Alok Industries plans to encash its real estate portfolio and eventually exit the real estate business, to raise funds and retire debt, a top official told Reuters.Source: Moneycontrol Top Headlines | 2 Feb 2010 | 6:31 am Toyota braces for sales hit from recall, costs mountToyota Motor\'s unprecedented recall of millions of vehicles with faulty accelerators is taking a toll on sales and may force the world\'s largest automaker to cut 2010 sales forecasts.Source: Moneycontrol Top Headlines | 2 Feb 2010 | 6:19 am Kohinoor Foods targets Rs 850cr turnover in FY10In an interview with CNBCTV18, Satnam Arora, Managing Director, Kohinoor Foods, speaks about the latest happenings in his company and sector.Source: Moneycontrol Top Headlines | 2 Feb 2010 | 5:59 am Banks reluctant to forgo loan prepayment fee!Banks expressed concern over the competition commission`s intervention on homeloan prepayment penalty.Source: Zee News : Business | 2 Feb 2010 | 5:32 am Boeing sees aircraft order book shrinking!US aerospace giant Boeing Co said on Tuesday it expects new orders for commercial aircraft this year to fall short of deliveries and no increase in demand until 2012.Source: Zee News : Business | 2 Feb 2010 | 5:32 am Sensex opens higher by 170 points on firm global cues!The Bombay Stock Exchange benchmark Sensex surged by 170 points in opening trade on Tuesday on fresh buying by funds, driven by rally on the global bourses.Source: Zee News : Business | 2 Feb 2010 | 5:32 am Oil prices rise as Nigerian militants end ceasefire!Oil prices advanced on Monday on supply concerns as militants operating in Nigeria`s key oil-producing region ended a ceasefire and Royal Dutch Shell was forced to cut output after a pipeline was sabotaged.Source: Zee News : Business | 2 Feb 2010 | 5:32 am NTPC fixes FPO base price at Rs 201 a share!The country`s largest power producer, NTPC, today said it has fixed the base price at Rs 201 a share for its follow-on-public offer, which opens on WednesdaySource: Zee News : Business | 2 Feb 2010 | 5:32 am Sensex ends 200 points lower - Economic Times
Source: Business - Google News | 2 Feb 2010 | 3:26 am RBI doesn't have info on heavy penalty on credit-card defaults - Economic Times
Source: Business - Google News | 2 Feb 2010 | 3:05 am Indian rupee further trims gains on stock losses - Reuters India
Source: Business - Google News | 2 Feb 2010 | 3:03 am Siemens to invest $346 mn in India over 3 yearsNew Delhi: Europe’s biggest engineering group, Siemens said on Tuesday it would invest $346 million in India over three years, mostly to make wind turbines to tap into a rapidly expanding market for renewable energy. The German company will add 8,000 jobs in India by 2012, taking its workforce to 25,000 in the Asian nation, but said this was not a move to shift production to low-cost countries. “Not at all. It doesn’t mean that,” chief executive Peter Loescher told reporters in the Capital when asked if Siemens would shift operations to countries like India. “It means exactly the opposite. We’re taking advantage of the Indian growth opportunity, we’re adding specifically tailored products,” he said. Siemens had previously said it would cut 2,000 jobs in Germany and was eyeing reductions in other locations on falling demand, adding it would take time before production returned to pre-crisis peaks of 2007-08. Loescher, who is in New Delhi as part of a delegation with visiting German President Horst Kohler, declined to answer questions on job cuts in Germany and other locations. Siemens, which has been in India for more than 140 years and built the first telegraph line between Kolkata and London in 1867, will begin work on a wind turbine plant in two to three weeks and begin shipments from 2012. The plant will have an initial annual capacity of 200 megawatts (MW) and would be later ramped up to 500 MW, India chief Armin Bruck said. Siemens plans to increase its local revenue by 10 times to €1 billion ($1.4 billion) by 2020 and Loescher said much of this would come through organic growth. Source: Home - Livemint.com | 2 Feb 2010 | 2:56 am Siemens signs contract with Power GridSiemens is currently implementing four contracts for Power Grid worth Rs673 crore to provide 765 kV sub-stations, new voltage adopted by Power Grid, to transmit AC power over long distances.Source: Daily News & Analysis: Money News | 2 Feb 2010 | 2:53 am Don't see major capacity addition in Q4: JK Lakshmi Cement - Moneycontrol.com
Source: Business - Google News | 2 Feb 2010 | 2:50 am Facebook, Twitter users vulnerable to rising cyber crimesNew York: An alarming rise in attacks by cyber criminals has exposed users of social networking sites such as Facebook and Twitter to risks of identity theft, spam and malware infiltration in the last one year, a study says. According to the survey by global IT security and data protection firm Sophos, criminals have increasingly focused attacks on users of social networking sites in last 12 months with an explosion in reports of spam and malware. About 57% of users have been spammed via social networking sites, a rise of 70.6% from last year, while 36% received malware via them, a rise of 69.8%, it said. “Computer users are spending more time on social networks, sharing sensitive and valuable personal information and hackers have sniffed out where the money is to be made,” Sophos senior technology consultant Graham Cluley said. “A dramatic rise in attacks last year tells us that social networks and their millions of users have to do more to protect themselves from organised cybercrime or risk falling prey to identity theft schemes, scams and malware attacks.” Sophos surveyed over 500 firms and found that 72% are concerned that employee behaviour on social networking sites exposes their businesses to danger and puts corporate infrastructure and sensitive data at risk. When asked, which social network they believed posed the biggest security risk, 60% respondents named Facebook, followed by MySpace (18%), Twitter( 17%) and LinkedIn (four%). ”We shouldn’t forget that Facebook is by far the largest social network - and you’ll find more bad apples in the biggest orchard,“ Cluley said. The truth is that security team at Facebook works hard to counter threats on their site — it’s just that policing 350 million users can’t be an easy job for anyone, Cluley added. The “Social Security” survey is a part of Sophos’ 2010 Security Threat Report, which explores current and emerging computer security trends. The report reveals that criminals identify potential victims on social networks and then attack them, both at home and at work. Sophos believes that many Web 2.0 sites are concentrating too much on growing their market share at the expense of properly defending their existing users from Internet threats. Source: Tech News - Livemint.com | 2 Feb 2010 | 2:47 am Facebook, Twitter users vulnerable to rising cyber crimesNew York: An alarming rise in attacks by cyber criminals has exposed users of social networking sites such as Facebook and Twitter to risks of identity theft, spam and malware infiltration in the last one year, a study says. According to the survey by global IT security and data protection firm Sophos, criminals have increasingly focused attacks on users of social networking sites in last 12 months with an explosion in reports of spam and malware. About 57% of users have been spammed via social networking sites, a rise of 70.6% from last year, while 36% received malware via them, a rise of 69.8%, it said. “Computer users are spending more time on social networks, sharing sensitive and valuable personal information and hackers have sniffed out where the money is to be made,” Sophos senior technology consultant Graham Cluley said. “A dramatic rise in attacks last year tells us that social networks and their millions of users have to do more to protect themselves from organised cybercrime or risk falling prey to identity theft schemes, scams and malware attacks.” Sophos surveyed over 500 firms and found that 72% are concerned that employee behaviour on social networking sites exposes their businesses to danger and puts corporate infrastructure and sensitive data at risk. When asked, which social network they believed posed the biggest security risk, 60% respondents named Facebook, followed by MySpace (18%), Twitter( 17%) and LinkedIn (four%). ”We shouldn’t forget that Facebook is by far the largest social network - and you’ll find more bad apples in the biggest orchard,“ Cluley said. The truth is that security team at Facebook works hard to counter threats on their site — it’s just that policing 350 million users can’t be an easy job for anyone, Cluley added. The “Social Security” survey is a part of Sophos’ 2010 Security Threat Report, which explores current and emerging computer security trends. The report reveals that criminals identify potential victims on social networks and then attack them, both at home and at work. Sophos believes that many Web 2.0 sites are concentrating too much on growing their market share at the expense of properly defending their existing users from Internet threats. Source: LatestNews-Home - Livemint.com | 2 Feb 2010 | 2:47 am China warns US on Dalai Lama; to punish arms firmsBeijing: China said a possible meeting between US President Barack Obama and the Dalai Lama would further harm Sino-US relations, and vowed to go ahead with unspecified sanctions against US firms selling arms to Taiwan. China has become increasingly vocal in opposing meetings between the Dalai Lama and foreign leaders, and one between the exiled Tibetan leader and Obama would increase tensions between the world’s biggest and third biggest economies. Ties between the United States and China have also soured over trade and currency quarrels, control of the Internet, and Beijing’s jailing of dissidents. There has been widespread speculation that Obama will meet the Dalai Lama as early as this month, when the Tibetan figurehead visits the United States. The White House has not publicly confirmed any such meeting. Zhu Weiqun, a vice minister of the United Front Work Department of China’s ruling Communist Party, said his government would vehemently oppose any meeting between Obama and the Tibetan Buddhist monk, who Beijing deems a dangerous separatist. “If that comes to pass, then China will be strongly opposed as always,” Zhu, who’s department steers Party policy over ethnic issues, said of the possible meeting. “If the US leader chooses this time to meet the Dalai Lama, that would damage trust and cooperation between our two countries, and how would that help the United States surmount the current economic crisis?” said Zhu. China routinely opposes meetings between the Dalai Lama and foreign leaders, especially after violent unrest spread across Tibetan areas in March 2008. Beijing blamed his “clique” for the turmoil, a charge he repeatedly rejected. Previous US presidents, including Obama’s predecessor, George W. Bush, have met the Dalai Lama, drawing angry words from Beijing but no substantive reprisals. But when French President Nicolas Sarkozy would not pull out of meeting the Dalai Lamai while his country held the rotating presidency of the European Union in late 2008, China hit back by cancelling a summit with the EU. The Dalai Lama has said he wants a high level of genuine autonomy for his homeland, which he fled in 1959. China says that his demands amount to calling for outright independence. China recently hosted talks with envoys of the Dalai Lama, but those talks achieved little. The United States says it accepts Tibet is a part of China, but wants Beijing to sit down with the Dalai Lama to address their differences over the region’s future. Taiwan arms sales Beijing is already irate over US proposals last week to sell $6.4 billion of weapons to Taiwan, the disputed island that China treats as an illegitimate breakaway province. The United States switched diplomatic recognition from Taipei to Beijing in 1979. But it remains Taiwan’s biggest backer and is obliged by the 1979 Taiwan Relations Act to help in the island’s defence. Chinese foreign ministry spokesman, Ma Zhaoxu, on Tuesday repeated Beijing’s threat to impose sanctions against U.S. companies that sell arms to Taiwan. “The concerned US companies have ignored China’s opposition and insisted on selling weapons to Taiwan. China will impose corresponding sanctions on companies that sell weapons to Taiwan,” Ma said told a news conference. “The United States actions will seriously hurt China’s core interests and seriously hurt China-US interests,” he said. “This will unavoidably affect China-US cooperation on important international and regional issues.” But Ma fended off repeated questions from reporters asking for details of how China would impose sanctions. Ma instead repeated almost word-for-word the condemnation of the arms sale Beijing issued on Saturday. “Wait and see,” Ma said as he was leaving the briefing. Companies that could be affected include Sikorsky Aircraft Corp, a unit of United Technologies Corp; Lockheed Martin Corp; Raytheon Co; and McDonnell Douglas, a unit of Boeing Co. Speaking in Singapore, Randy Tinseth, vice president of marketing for Boeing Commercial Airplanes, repeatedly declined to elaborate on any impact on Boeing sales to China arising from the arms sale row. China says the arms dispute will also damage cooperation with the United States over international issues. Washington has sought stronger Chinese support over several hotspots, chiefly the nuclear ambitions of Iran and North Korea. Again, Ma would not be drawn into specifics. A former senior US diplomat earlier told Reuters that China may not follow up strong words with strong measures. “Let’s watch what they do, not what they say, because sometimes tough words in China are a substitute for tough action,” said Susan Shirk, a professor specialising in Chinese foreign policy at the University of California, San Diego. Shirk was formerly a US Deputy Assistant Secretary of State during the Clinton administration. She said the Iran nuclear dispute was one issue that Beijing may use to signal its anger. China has resisted Western demands for tougher sanctions on Iran. On Tuesday, the spokesman Ma repeated his government’s stance that there was room to solve the dispute through negotiations. Source: Home - Livemint.com | 2 Feb 2010 | 2:46 am Scheduled flights give boost to Goa tourismGoa tourism ministry has said that the increase in the scheduled flights has given flexibility to visitors to decide on their arrival and departure dates.Source: Daily News & Analysis: Money News | 2 Feb 2010 | 2:40 am Bank of India hires banks, plans dollar bond - sourceHONG KONG (Reuters) - State-run Bank of India has hired Barclays Capital, Citigroup, Deutsche Bank, HSBC and Royal Bank of Scotland for investor presentations ahead of a dollar bond sale, a source close to the deal said on Tuesday.Source: Reuters: Money News | 2 Feb 2010 | 2:38 am Sales growth back at India midcaps, but new woes aheadMumbai / New Delhi: Even as a recovering economy has helped Indian midcap firms report a much-awaited jump in sales, they are staring at a new set of worries: inflation that could crimp margins and tax hikes, which may dent demand. Of the 85 company results for the December-quarter polled by Reuters, almost two-thirds reported improved profits helped by an increase in sales, a contrast from earlier quarters when cost cuts and cheaper inputs were the main drivers. Automobiles, auto ancillaries, metals, media and FMCG companies largely saw better profits boosted by higher sales. “The larger trend is the growth in sales. But I’m now finding with the higher growth I’ve achieved, margins have dropped by a few basis points,” said Arun Kejriwal, strategist at research firm KRIS. The recovery comes amid sharp tax cuts and stimulus measures, put in place a year ago to boost confidence in Asia’s third-largest economy in the aftermath of the economic turmoil. But with data indicating the economy is back on the growth track and with fiscal difficulties looming ahead, rolling back these measures is only a matter of time, analysts say. “If they’re talking of high (economic) growth, you can’t justify stimulus,” said Ambareesh Baliga, vice president of Karvy Stock Broking. “From the noises that are coming, it seems the stimulus will be rolled back in the budget itself.” Finance minister Pranab Mukherjee will present the budget on 26 February, less than a month after the Reseve Bank of India (RBI) upgraded its forecast for the economy to grow 7.5% in 2009/10 from 6% earlier. Fiscal woes But during its quarterly policy review on 29 January the central bank warned of higher inflation and the need to trim high fiscal deficit and government borrowing. India’s fiscal deficit, estimated to touch 6.8% of the gross domestic product for 2009/10, could widen on slack tax receipts and as delays in the 3G wireless spectrum auction holds back revenue inflows. “The fiscal deficit is going up. The 3G auction has been deferred and the government is under serious pressure to control the deficit,” said RK Gupta, managing director at Taurus Mutual Fund, which manages assets worth Rs19 billion. “Indirect taxes — customs and excise — which they had reduced, may be hiked in a phased manner.” And the industry’s travails are far from over, say analysts. Raw material prices are on the rise after a benign 2009, interest rates are hardening and record-high food prices could spill over to the broader economy and force firms to hike wages, hammering away at profit margins, they say. The benchmark 30-stock BSE index is down 7% since it opened on 12 January, when IT bellwether Infosys Technologies inaugurated the latest earnings season. The index rose 8% in 2009, its best since 1991. Other signs of the economy’s robustness like rising exports and a quickening in the pace of manufacturing growth further weaken the case for continuing the stimulus, posing fresh challenges for companies in coming quarters. Inflation is projected to touch 8.5% by end March, setting the stage for higher interest rates. The RBI held steady its key rate during its policy review, but its moves to siphon off liquidity have led watchers to bet on a rate hike by April. High inflation could tighten household budgets and dent demand for goods like cars and consumer durables, which have seen a recent spurt in sales, analysts say. Firms would have to build up efficiencies in their processes and continue with cost cuts to ride the storm, they said. “There is going to be (cost) tightening as far as margins are concerned. The squeezing will go down the supply chain,” KRIS’ Kejriwal said. Source: Home - Livemint.com | 2 Feb 2010 | 2:33 am Sales growth back at midcaps, but new woes aheadMUMBAI/NEW DELHI (Reuters) - Even as a recovering economy has helped Indian midcap firms report a much-awaited jump in sales, they are staring at a new set of worries: inflation that could crimp margins and tax hikes, which may dent demand.Source: Reuters: Money News | 2 Feb 2010 | 2:28 am Mid, small-caps soften blow to India stock funds in JanMumbai: Indian stock funds recorded a drop in net values in January, but nearly all of them fell less than the country’s benchmark share index on lower losses in mid and small-caps and big bets on energy, bank and technology stocks. Diversified equity funds, the largest group of stock funds by number and assets, lost 4.2% on an average. By comparison, India’s main stock index fell 6.3% on foreign portfolio outflows, concern over the strength of global economy and fears of Chinese policy tightening. Nearly 95% of India’s 325 diversified stock funds lost less. “Most of these equity funds had higher allocation to banking and technology sectors, which did well as compared to broader index like Sensex,” said Chintamani Dagade, a senior research analyst at Morningstar India. “Also, exposure to energy companies worked in their favour during the month.” The three sectors collectively accounted for about 40% of diversified equity fund assets at the end of December, data from mutual fund tracker ICRA Online shows. In January, while the bank and tech stocks as measured by the BSE Bankex and BSE IT indices lost 4% or less, the BSE Oil and Gas index fell 5%. A relatively lower decline in shares of medium and small firms, with the BSE Mid Cap and BSE Small Cap falling 3% and 1.5% respectively, also softened the blow from sharp falls in the funds’ large cap portfolios. Equity funds held nearly 43% of their equity investments in mid and small-cap stocks at the end of December, the highest since July 2008, on hopes India’s economic growth would gain momentum. While Indian industrial output rose at a faster-than-expected 11.7% in November from a year earlier, the central bank last week upgraded its economic growth forecast for the current fiscal year to 7.5% from 6% and predicted a similar rate of growth in FY11. Leading the stock funds was a tax scheme from SBI Funds Management, which rose 2.88%. For winners and losers in January. BOND, GOLD FUNDS Indian fixed income funds betting on government securities, which lost 0.14% on an average in December, bounced back in January to gain 0.4% as the federal bond yield closed the month down nine basis points. The 10-year yields fell to their lowest in nearly six weeks on 22 January to 7.49% in intra-day trade, tracking an overnight fall in US yields, but ended the month at 7.59% after the RBI governor said next year’s borrowing would be more challenging than the current fiscal. The gold exchange traded funds lost 2.6% during the month as a strong dollar overseas dimmed the yellow metal’s appeal as an alternative investment. On the continuous charts, gold futures closed at Rs16,200 per 10 grams, down 2.9% in January. Source: Home - Livemint.com | 2 Feb 2010 | 2:26 am Siemens to invest Rs1,600 cr in India in 3 yrsNew Delhi: Technology major Siemens said on 2 February it will invest Rs1,600 crore in India over the next three years for venturing into wind turbine manufacturing and scaling up existing production capacity. Of the total investment, Rs500 crore would be used for setting up a high-end technology wind turbine manufacturing facility in the country. “We will venture into wind turbine manufacturing ... we have identified 2-3 sites in Tamil Nadu and Gujarat and we are in discussions with the respective state governments for setting up the wind turbine plant ... we will decide on the exact location in 2-3 weeks,” Siemens managing director (India) Armin Bruck told reporters. The plant would be operational by 2012 and will produce turbines with a capacity of 200 MW per year initially. Realising great business opportunity in the energy sector in the country, the company also plans to have presence in solar power, Bruck said, without giving further details. The rest of the investment will go in research and development activities as well as augmenting manufacturing capacity for its products in signalling and metal technologies and healthcare solutions. Source: LatestNews-Home - Livemint.com | 2 Feb 2010 | 2:21 am Boeing to deliver nine planes to Indian carriersThese orders are part of Boeing's order backlog of 85 aircraft which is to be delivered over a period of 4 to 5 years.Source: Daily News & Analysis: Money News | 2 Feb 2010 | 2:20 am Toyota braces for sales hit from recall, costs mountNAGOYA/DETROIT (Reuters) - Toyota Motor's unprecedented recall of millions of vehicles with accelerator problems is taking a toll on sales and may force the world's largest automaker to cut 2010 sales forecasts.Source: Reuters: Money News | 2 Feb 2010 | 2:18 am Mitsubishi says MRJ jet should capture 30% marketSingapore: Mitsubishi Aircraft Corp, a unit of Japan’s Mitsubishi Heavy Industries Ltd, said its new MRJ jet, Japan’s first domestically developed passenger aircraft, should capture 30% of the short-haul market in 10 years. The jet, to be built in 70-seat and 90-seat variants, will be more fuel efficient and help airlines cut operating costs by as much as $20 million over the next 20 years, said Yosuke Takigawa, senior vice president of sales and marketing. The 90-seater will be priced at around $40 million, he said. Mitsubishi is keen to drum up more business for the MRJ, which is likely to compete against Brazilian aircraft maker Embraer’s regional jet series. The MRJ project is seen by some as Japan’s final hope for aircraft manufacturing with the first aircraft expected to go into service in 2014. “The airline market is still undergoing a tough time, but we expect a big potential in the regional jet market,” Takigawa told Reuters on the sidelines of the Singapore Airshow. Takigawa said the company’s initial plan is to raise MRJ’s presence in Southeast Asia and India. Mitsubishi Aircraft, owned 64% by Mitsubishi Heavy, has so far received orders for 125 aircraft, including 25 from All Nippon Airways. “Since there will be a number of Embraer aircraft that will see their current leasing contracts ending in or around 2014, our entry to the market (in 2014) would be timely in order to win customers,” Takigawa said. Takigawa said the company is also looking to finalise its first sales deal with Japan Airlines (JAL), which filed for bankruptcy on 19 January. Under the government-led restructuring planned for JAL, the carrier plans to reconfigure its fleet by retiring all of its 37 Boeing 747-400 and all 16 McDonnell Doughlas MD-90 planes to buy smaller aircraft to take their place. Source: World Business - Livemint.com | 2 Feb 2010 | 2:14 am Mitsubishi says MRJ jet should capture 30% marketSingapore: Mitsubishi Aircraft Corp, a unit of Japan’s Mitsubishi Heavy Industries Ltd, said its new MRJ jet, Japan’s first domestically developed passenger aircraft, should capture 30% of the short-haul market in 10 years. The jet, to be built in 70-seat and 90-seat variants, will be more fuel efficient and help airlines cut operating costs by as much as $20 million over the next 20 years, said Yosuke Takigawa, senior vice president of sales and marketing. The 90-seater will be priced at around $40 million, he said. Mitsubishi is keen to drum up more business for the MRJ, which is likely to compete against Brazilian aircraft maker Embraer’s regional jet series. The MRJ project is seen by some as Japan’s final hope for aircraft manufacturing with the first aircraft expected to go into service in 2014. “The airline market is still undergoing a tough time, but we expect a big potential in the regional jet market,” Takigawa told Reuters on the sidelines of the Singapore Airshow. Takigawa said the company’s initial plan is to raise MRJ’s presence in Southeast Asia and India. Mitsubishi Aircraft, owned 64% by Mitsubishi Heavy, has so far received orders for 125 aircraft, including 25 from All Nippon Airways. “Since there will be a number of Embraer aircraft that will see their current leasing contracts ending in or around 2014, our entry to the market (in 2014) would be timely in order to win customers,” Takigawa said. Takigawa said the company is also looking to finalise its first sales deal with Japan Airlines (JAL), which filed for bankruptcy on 19 January. Under the government-led restructuring planned for JAL, the carrier plans to reconfigure its fleet by retiring all of its 37 Boeing 747-400 and all 16 McDonnell Doughlas MD-90 planes to buy smaller aircraft to take their place. Source: LatestNews-Home - Livemint.com | 2 Feb 2010 | 2:14 am BSE Sensex down more than 1 pct; banks fallMUMBAI (Reuters) – The BSE Sensex extended losses to more than 1 percent on Tuesday afternoon, led by a decline in bank stocks, as most Asian markets came off highs and European markets edged lower.Source: Reuters: Money News | 2 Feb 2010 | 2:13 am Markets down more than 1%; banks fallMumbai: Indian shares extended losses to more than 1% on Tuesday afternoon, led by a decline in bank stocks, as most Asian markets came off highs and European markets edged lower. At 2:36pm, the 30-share BSE index was down 1.09% at 16,178 points, with only four components advancing. The 50-share NSE index was down 1.4% at 4,833.20. Indian shares were trading higher on Tuesday, with metals leading the rally, after strong U.S. manufacturing data bolstered hopes the global economic recovery was on a firm footing, pushing world stocks higher. However, they came off early highs as Asian shares erased some of their early gains. Metals makers Sterlite Industries and Hindalco rose a respective 3.1% and 3.3%, as base metal prices firmed on robust US manufacturing data. The US manufacturing sector grew in January at a faster rate than expected, with the index reading at its highest since August 2004. By 10:41am, the 30-share BSE Index was trading up 0.25% at 16,396.22, with half of its components gaining. “The investor sentiment is driven by positive newsflow. The strong data from the US is pushing our market up,” said Daljeet Kohli, head of research for private client group at Emkay Global. “After the recent decline, a bounce back was waiting to happen, and the data from US triggered it,” he added. The benchmark which had gained 81% in 2009, is down more than 6% so far in 2010. Export-focussed software companies gained after strong US data raised expectations of improved order flow from one of their biggest markets. Infosys Technologies rose 1%, while Tata Consultancy and Wipro climbed 1.6% and 0.7% respectively. Automobile shares rose as the market cheered their robust January sales numbers. “Despite possible hiccups in the form of higher interest rates/excise duties, we expect demand to remain strong in FY11,” Edelweiss Securities said in a note on Monday. India’s top vehicles maker Tata Motors rose 1.3% after it said its January sales jumped 77%. Mahindra and Mahindra and Maruti Suzuki were both up 0.2%. The country’s top power producer NTPC bucked the trend and declined 1.6% to Rs207.95. NTPC has set a floor price of Rs201 a share for its follow-on public offer, indicating the sale will raise at least 82.87 billion rupees ($1.8 billion), an advertisement in the Economic Times newspaper showed. In the broader market, gainers were nearly three times the number of losers in a volume of 132 million shares. The 50-share NSE index was up 0.1% at 4,903.15. Source: Home - Livemint.com | 2 Feb 2010 | 2:09 am Siemens to spend $346 mln, add jobs, in IndiaNEW DELHI (Reuters) - Europe's biggest engineering group, Siemens, said on Tuesday it would invest $346 million in India over three years, mostly to make wind turbines to tap into a rapidly expanding market for renewable energy.Source: Reuters: Money News | 2 Feb 2010 | 2:03 am HDFC raises 1 bn rupees via bondsMumbai: Top Indian mortgage lender Housing Development Finance Corp has raised Rs1 billion via bonds, two sources with knowledge of the deal said on Tuesday. The three-year bonds carry a coupon rate of 7.65%, and are rated ‘AAA’ by CARE and Crisil. Kotak Mahindra Bank was sole arranger to the issue. Source: LatestNews-Home - Livemint.com | 2 Feb 2010 | 2:02 am Oil trims gains after $75 hit, dollar strongerSingapore: Oil pared gains on Tuesday as the dollar strengthened, with the market’s attention turning to forecasts for steady US crude inventories after prices topped $75 earlier on optimism about the economy. The US dollar rose after Australia’s central bank surprised markets by leaving its interest rates unchanged, sending the Australian dollar down. March US crude was up 11 cents at $74.54 by 1:11pm, after touching $75.44 earlier, a rebound of more than $3 from last week’s 2010 lows. London ICE Brent rose 6 cents to $73.17. “The big gains were linked to expectations of recovery, but people are reassessing oil market fundamentals, looking to the next inventory report to derive some guidance,” said David Moore, a commodity strategist with the Commonwealth Bank of Australia. “We have a situation where demand in the US still seems quite subdued. We have seen a fairly marginal movement in the dollar that might be having a negative impact on the oil price,” Moore said. US crude stockpiles probably slipped by 200,000 barrels in the week ended 29 January following disruptions at a Texas port, while inventories of distillates, including heating oil and diesel, may have declined by 900,000 barrels, a Reuters preliminary survey showed. But gasoline stocks likely posted a larger gain of 1.3 million barrels, the poll showed. Industry group American Petroleum Institute’s inventory report will be released at 2:00am, on Tuesday, followed by government statistics from the U.S. Energy Information Administration on Wednesday at 9:00pm. “Demand for oil isn’t really improving,” said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd. “We don’t see any sign of real recovery. There is a huge amount of inventories in the physical markets.” US crude for March delivery reached its highest intraday price since 22 January earlier after prices touched $75, triggering automatic buy orders. “People are quite nervous around $75,” Emori said. “There was short-covering after prices broke above that level. In the very short term, the market has been oversold, so some people see it as a good time to buy on dips below the $75-$80 range.” An industry report showed on Monday that the U.S. manufacturing sector grew in January at a faster rate than expected, in a sixth straight month of expansion. The Institute for Supply Management (ISM) index rose to its highest since August 2004, a sign the world’s top economy is recovering from the deepest recession in decades, which could boost oil demand. Ship traffic was back to normal operations along the Sabine-Neches Waterway on Sunday after a tanker collision and oil spill on 23 January shut the channel that supplies crude oil to four US refineries. Source: LatestNews-Home - Livemint.com | 2 Feb 2010 | 2:01 am Mid, small-caps soften blow to equity funds in JanMUMBAI (Reuters) – Equity funds recorded a drop in net values in January, but nearly all of them fell less than the country's benchmark share index on lower losses in mid and small-caps and big bets on energy, bank and technology stocks.Source: Reuters: Money News | 2 Feb 2010 | 2:00 am Sony Pictures to lay-off 450 employees: reportNew York: Sony Pictures Entertainment, a division of Sony Corp, is planning to lay-off about 450 employees, or about 6.5% of its current work force, in the next few weeks, says a media report. Attributing to a memo by Sony Pictures co-chairmen Michael Lynton and Amy Pascal, The Wall Street Journal said, the company is planning to lay-off about 450 employees in the next few weeks. The report said that the majority of the layoffs are expected to hit the studio’s home-entertainment and formation-technology departments, but nearly all divisions are expected to feel an impact to some extent, which includes motion pictures, television production and corporate. “Most of the layoffs are expected to fall in the US and take place by the first week in March,” it added. After the current round of job cut, studio’s head count would stand at about 6,300. In addition, the studio would not fill about 100 jobs that are currently open. The company’s business has been hit by digital piracy and the impact of social-media services that have sometimes undermined studios’ marketing efforts. DVD sales in the US has seen declined 13 per cent to USD 8.73 billion against last year, putting a major dent in the studios’ bottom-line, the report said attributing to Adams Media Research. Source: LatestNews-Home - Livemint.com | 2 Feb 2010 | 2:00 am Siemens to invest Rs 1600 cr in India - Hindu Business Line
Source: Business - Google News | 2 Feb 2010 | 1:53 am Gold buying abates; rupee aids sentimentMumbai: India’s gold buying abated on Tuesday afternoon as the yellow metal traded above the keenly-watched $1,100 an ounce level, but a stronger rupee aided sentiment, dealers said. “Demand is lagging today, there was buying until yesterday, we must have done 400-500 kgs last week,” said a dealer with a state-run bank in Mumbai. International spot gold was trading at $1,103.20/1,103.95 an ounce as against 1,105.30/1,106.30 in the previous session. “People are waiting for a dip to $1,070/1,089 an ounce,” said another dealer with a private bank. A stronger rupee makes the dollar-quoted gold cheaper for domestic traders. The Indian rupee trimmed some of its early gains after the dollar strengthened slightly following the Australian central bank’s decision to leave interest rates unchanged. India, historically the largest consumer of the yellow metal, imported 35-40 tonnes of gold during 1-27 January, up from 9.8 tonnes in the whole of the same month last year, the head of a trade body and bank dealers said. Source: LatestNews-Home - Livemint.com | 2 Feb 2010 | 1:46 am Nano City may have foreign partner soonHotmail creator Sabeer Bhatia-promoted knowledge city project, Nano City, is in talks with a foreign venture capital firm to be a part of it.Source: Daily News & Analysis: Money News | 2 Feb 2010 | 1:45 am Boeing to deliver 9 planes to Indian carriersMUMBAI (Reuters) - U.S. aircraft maker Boeing plans to deliver 9 planes to India in calendar 2010, a senior official said on Tuesday.Source: Reuters: Money News | 2 Feb 2010 | 1:34 am Banks not ready to withdraw prepayment penalty on foreclosureMumbai: Banks have expressed concern over the competition commission’s intervention on homeloan prepayment penalty issue as they fear that this would put pressure on their costs, increase risk and even lead to higher lending rates. Last month, Competition Commission of India (CCI), the apex body that operates to sustain and promote competition, sent notices to atleast 15 banks, NBFCs and IBA seeking explanation on why they penalise borrowers who choose to foreclose loans. In the communication, CCI is understood to have observed that loan prepayment penalties will suppress the competition in the homeloan market by limiting the chances of a borrower to switch their loan to another lender. Banks which have been asked to explain this matter include SBI, ICICI Bank, Axis Bank, PNB, Canara Bank, IOB, Indian Bank, OBC, HDFC Bank amongst others. Besides, home financiers like HDFC and LIC Housing Finance were also served notices by CCI. According to sources, many of these institutions have already replied to CCI, to make it clear that the removal of prepayment penalty will result in higher lending risk and may cause asset-liability mismatch in banks. Banks, which have been asked to explain, include SBI, ICICI Bank, Axis Bank, PNB, Canara Bank, IOB, Indian Bank, OBC, HDFC Bank amongst others. Besides, home financiers like HDFC and LIC Housing Finance were also served notices by CCI. Presently, most of the banks charge prepayment penalty in the range of 1-2% in the event of a customer opts to close the homeloan prematurely. Banks do this with a view to cover the interest-loss owing to foreclosure of the loan. What irked CCI, inviting their attention to the matter is the fact that some institutions are charging higher penalties as high as 3-4% to discourage customers from switching their loans to another bank or a financial institution, the official said. SBI, which charges around 2% prepayment penalty for premature closures within three years of availing the loan, said the penalty is necessary in the system to avoid any asset-liability imbalances. “Prepayment penalty is an accepted norm in all developed markets across the world. Banks give loans for a specified maturity and raise liabilities to lend. During foreclosures, banks will have to take a hit in cost terms. This necessitates prepayment penalty,” a top SBI official said. Besides, the cost of all borrowers are likely to go up if banks stop penalising customers for loan foreclosures as banks will be forced to start hike lending rates to cover the interest-loss, the official added. Source: LatestNews-Home - Livemint.com | 2 Feb 2010 | 1:28 am Samajwadi Party expels Amar, JayaLucknow: Terming Amar Singh and Jaya Prada as “intruders”, Samajwadi Party on Tuesday expelled them from the party on grounds of indulging in anti-party activities and denting its socialist image. The decision was taken at the SP parliamentary board meeting chaired by party supremo Mulayam Singh Yadav in Lucknow, national general secretary and spokesman Mohan Singh told reporters. He said the party also suspended membership of four MLAs - Madan Chauhan, Sandeep Agarwal, Ashok Chandel and Sarvesh Singh - all Amar Singh loyalists. “For over a month some leaders of the party have been continuously giving statements against the SP,” Singh said. He said that on 31 January, Lok Sabha member Jaya Prada had held a press conference in which she made “indecent comments” against the SP leadership and spit venom against its policies. “She also gave statements in support of Kalyan Singh, which the party thought had dented its secular image. Any leader, howsoever important, he or she cannot be allowed to make public statements against any political party,” he said. “Therefore, the parliamentary board has decided to expel Jaya Prada from the primary membership of the party,” he said, adding that she was a “guided missile” of Amar Singh. Singh said Amar Singh attempted to “deshape” the SP. “His entry in the party was capitalist and communal intrusion intended to damage the socialist movement,” he alleged. He said that to free the party from such forces, the party decided to expel him from the primary membership with a “heavy heart”. The SP spokesman said, ”He (Amar) voluntarily floated Lok Manch, which is a parellel organisation to SP and repeatedly attempted to create a rift, engineer a split and dent the image of the party. “SP’s policy is that of casteless politics, whereas Amar Singh attempted to promote casteist politics,” he alleged. Mohan Singh said the party will move a petition before Lok Sabha Speaker and Rajya Sabha Chairman to disqualify them from the two Houses of Parliament on grounds of indulging in anti-party activities. He said the four MLAs, who were “conspiring to engineer a split” in the party in UP and had become followers of Amar Singh, have been suspended from the primary membership of the party. “The state unit has been asked to make an inquiry into their conduct and take action against them”. Regarding Jaya Bachchan, the SP spokesman said that so far she had not done anything which amounted to anti-party activity. Asked about the future of Sanjay Dutt, another party General Secretary who quit his post to express solidarity with Amar Singh, he said the party does not take any cognisance of him. “He was not associated with the party. After campaigning for the party in UP, he voted for the Congress in Maharashtra. As he has already resigned from the party post we do not take any congnisance of him anymore,” he said. Alleging that Amar Singh dented the unity of the party, he said, “Before the disease spreads further, the party decided to do a corrective surgery”. Source: Home - Livemint.com | 2 Feb 2010 | 1:25 am Boeing says too early to speculate on China sanctionsIt is too early to speculate on the impact of any Chinese sanctions on US companies as a result of arms sales to Taiwan, a senior Boeing official said on Tuesday.Source: HindustanTimes.com - Top Business News Headlines | 2 Feb 2010 | 1:24 am Few call for Reliance Comm global asset saleNEW DELHI/HONG KONG (Reuters) - More than a month after putting its biggest global assets up for sale, India's Reliance Communications has found few callers for a package that includes its prized FLAG undersea cable network.Source: Reuters: Money News | 2 Feb 2010 | 1:20 am Sensex loses 40 points at midsessionThe Bombay Stock Exchange benchmark Sensex declined by over 40 points at midsession on Tuesday as investors sold shares to book profit.Source: HindustanTimes.com - Top Business News Headlines | 2 Feb 2010 | 1:20 am Toyota braces for sales hit from recall; costs mountToyota Motor's unprecedented recall of millions of vehicles with faulty accelerators is taking a toll on sales and may force the world's largest automaker to cut 2010 sales forecasts.Source: Daily News & Analysis: Money News | 2 Feb 2010 | 1:15 am Air India to hive off cargo business by AprilCargo business currently constitutes 8% of Air India's overall revenues.Source: Daily News & Analysis: Money News | 2 Feb 2010 | 12:58 am Raja defends BSNL’s post-bid negotiations with vendorsNew Delhi: Making a case for allowing BSNL to go ahead with its Rs36,000 crore network expansion plan, telecom minister A Raja has said negotiations with equipment suppliers after the bidding process had resulted in substantial reduction in prices. “The Central Vigilance Commission (CVC) guidelines do not rule out negotiations with L1 (lowest bidder) under exceptional circumstances,” Raja said in a letter to Prime Minister Manmohan Singh, seeking his help in early resolution of a controversy over BSNL’s tender for network equipment. BSNL had invited bids nearly two years ago for adding 93 million GSM lines at an estimated investment of about Rs36,000 crore, but the PSU has not been able to place the orders due to various reasons, including legal battles. Swedish telecom equipment firm Ericsson had emerged the lowest bidder for two regions — North and East, while Chinese vendor Huawei was selected for the Southern region. According to senior officials in the Department of Telecom (DoT), post-bid negotiations have led to nearly 40% reduction in cost of equipment to be supplied by Ericsson, which is considered substantial, and would help the PSU to compete better in the market. “Substantial reduction in quoted price ranging up to 40% establishes that these are fruitful,” a source quoted Raja has having written in the letter to Singh. Raja also brought to Singh’s notice other developments with regard to BSNL’s tender and expressed concern over the PSU’s deteriorating financial health in the last few years. Source: LatestNews-Home - Livemint.com | 2 Feb 2010 | 12:40 am Foreign banks again hear the call of ChinaBEIJING (Reuters) - A clutch of Western banks that have escaped the worst of the financial crisis are seizing the opportunity to ramp up their presence in China in the hope of profiting from the sector's rapid growth.Source: Reuters: Money News | 2 Feb 2010 | 12:20 am Day Trading GuideWe reaffirm our buy recommendation in DLF. Fresh long position can be initiated if ICICI Bank moves above Rs 845, with stiff stop-loss. Utilise declines to buy Infosys with stiff stop-loss at Rs 2,430. L&T is pausing near the key support atSource: Business Line - Home Page | 2 Feb 2010 | 12:00 am ‘No quick-fix for global imbalance'As high-profile names from the world of economics and politics descended on Davos last week for the annual World Economic Forum jamboree, all of them must have breathed a little easy. That is, compared to last year, when there was gloom and doomSource: Business Line - Home Page | 2 Feb 2010 | 12:00 am Govt may disinvest in PSBs without losing controlThe Centre is considering the suggestion of the Prime Minister's Economic Advisory Council Chairman, Dr C. Rangarajan, to allow statutory organisations such as LIC, the Employees Provident Fund Organisation and GIC to infuse capital into publicSource: Business Line - Home Page | 2 Feb 2010 | 12:00 am Exports up 9.3% in Dec; imports turn positive in 12 monthsIndicating economic recovery and demand pick-up in markets abroad, merchandise exports remained in the positive territory for the second consecutive month with shipments in December 2009 registering a 9.3 per cent growth to $14.6 billion fromSource: Business Line - Home Page | 2 Feb 2010 | 12:00 am New currency pairs clock Rs 3,998-cr turnover on NSE, MCX-SXCurrency futures trading in three new currency pairs EURO /INR, GBP / INR and JPY / INR, introduced by NSE and MCX Stock Exchange saw good response on the inauguralSource: Business Line - Home Page | 2 Feb 2010 | 12:00 am L&T bags Rs 2,155-cr conversion order as fertiliser cos switch to gasWith the Centre directing fertiliser companies to convert fuel oil- and LSHS (low sulphur heavy stock)-based ammonia plants to natural gas-based ones, orders are literally flowing in for engineering companies such as Larsen &Source: Business Line - Home Page | 2 Feb 2010 | 12:00 am No interest rate change likely if inflation stays stableThe Reserve Bank of India is unlikely to revise rates before April, if inflation remains around 8.5 per cent. The central bank has already factored this in its inflation projection for March and is not likely to take any mid-term action, unlessSource: Business Line - Home Page | 2 Feb 2010 | 12:00 am Ahmednagar Forgings (Rs 95.8): BuyWe recommend a buy in the stock of Ahmednagar Forgings from a short-term perspective. The stock has been on a long-term uptrend since its November 2008 low of Rs 19.9. Moreover, the intermediate, medium and short-term trends also are up for theSource: Business Line - Home Page | 2 Feb 2010 | 12:00 am Automakers zoom on the fast lane in JanuaryJanuary 2010 marks a milestone in the automotive journey of the country with Maruti Suzuki, Tata Motors, Mahindra & Mahindra and General Motors India reporting their highest ever monthlySource: Business Line - Home Page | 2 Feb 2010 | 12:00 am Decision on fuel prices only after Parikh reportTo insulate the common man from the volatility in the international crude oil prices, the Petroleum Ministry is trying its best to avoid raising the retail fuel rates. Any decision on fuel pricing was likely only after the Kirit Parikh Committee,Source: Business Line - Home Page | 2 Feb 2010 | 12:00 am Toyota seeing sales hit from recall; costs unknownNagoya, Japan: Toyota Motor’s unprecedented recall of millions of vehicles with faulty accelerators is already taking a toll on its sales and may force it to cut 2010 sales forecasts. Toyota Motor’s head of quality said he did not know how much it would cost to recall and fix millions of vehicles with faulty accelerators, but acknowledged sales were suffering. In the first public comment from an executive at Toyota’s head office, executive vice president Shinichi Sasaki said costs were not taken into account with the recall of nearly 4.5 million vehicles equipped with faulty accelerators in North America and Europe. “The sales forecast is something that we’re extremely worried about,” he told a news conference in the central Japanese city of Nagoya on Tuesday. “Already, I am hearing that sales have been affected somewhat in January,” he added, noting the company will report its third-quarter earnings on Thursday. On Monday, the world’s largest automaker detailed its plans to fix the faulty pedals with a small metal shim, or spacer, to prevent them from sticking and causing unintended acceleration. On top of a separate recall for slipping floormats also linked to unintended acceleration, almost 8 million vehicles worldwide are being recalled. Toyota, fighting to preserve its reputation for quality, said it would restart production of eight models including its popular Camry, Corolla and Rav4 models on 8 February after an unprecedented one-week shutdown at six plants in the United States and Canada. Sasaki, who appeared alone in front of more than 100 reporters, said he there had been a bigger-than-usual sales impact from the recall. Toyota said last month it expected global auto sales to rise 6 percent this year but has said the forecast did not take the recall impact into account. Sasaki said they would monitor sales before reviewing their 2010 sales forecast. Toyota President Akio Toyoda, the grandson of the company’s founder, has not formally addressed the public or media on the recall problems. While in Davos, Switzerland last weekend, he appeared briefly on broadcaster NHK and apologised to consumers. The costs for the recall and the shutdown now look to come to roughly ¥100 billion to ¥200 billion ($1.1 billion to $2.2 billion), two analysts estimated. “It’s a positive that we now can grasp what the direct costs might be, but Toyota has yet to address uncertainties about indirect costs, such as litigation costs and costs of incentives to win back customers,” said JP Morgan analyst Kohei Takahashi. “The size of these indirect costs is of far greater importance” for Toyota’s future, he said. Shares in Toyota rallied almost 5 percent in Toyko on Tuesday following the company’s US announcement on the fix and restart for production. The jump in its shares comes after about an 18 percent tumble over the last seven business days. A weaker yen also boosted shares, some investors said. Toyota faces a growing number of lawsuits claiming it and its U.S. supplier CTS Corp endangered drivers by not acting sooner to fix problems with faulty accelerator pedals. Rivals such as General Motors Co, Ford Motor Co and Hyundai Motor Co have been offering discounts targeting Toyota customers. The moves by Toyota marked the most detail the automaker has provided on its plans to address a safety issue that threatens its finances and reputation, and will have dented its U.S. sales for January. Lawsuits announced on Monday in the US claimed Toyota had ignored signs of trouble with some of its top-selling models. The suits are part of what is expected to be a wave of litigation against the automaker for claims ranging from losses on car resale values to injury and death. Analysts and dealers said it would take months for the automaker to fix all of the vehicles at risk of having an accelerator pedal stick in the open position. Source: World Business - Livemint.com | 1 Feb 2010 | 11:52 pm Toyota seeing sales hit from recall; costs unknownNagoya, Japan: Toyota Motor’s unprecedented recall of millions of vehicles with faulty accelerators is already taking a toll on its sales and may force it to cut 2010 sales forecasts. Toyota Motor’s head of quality said he did not know how much it would cost to recall and fix millions of vehicles with faulty accelerators, but acknowledged sales were suffering. In the first public comment from an executive at Toyota’s head office, executive vice president Shinichi Sasaki said costs were not taken into account with the recall of nearly 4.5 million vehicles equipped with faulty accelerators in North America and Europe. “The sales forecast is something that we’re extremely worried about,” he told a news conference in the central Japanese city of Nagoya on Tuesday. “Already, I am hearing that sales have been affected somewhat in January,” he added, noting the company will report its third-quarter earnings on Thursday. On Monday, the world’s largest automaker detailed its plans to fix the faulty pedals with a small metal shim, or spacer, to prevent them from sticking and causing unintended acceleration. On top of a separate recall for slipping floormats also linked to unintended acceleration, almost 8 million vehicles worldwide are being recalled. Toyota, fighting to preserve its reputation for quality, said it would restart production of eight models including its popular Camry, Corolla and Rav4 models on 8 February after an unprecedented one-week shutdown at six plants in the United States and Canada. Sasaki, who appeared alone in front of more than 100 reporters, said he there had been a bigger-than-usual sales impact from the recall. Toyota said last month it expected global auto sales to rise 6 percent this year but has said the forecast did not take the recall impact into account. Sasaki said they would monitor sales before reviewing their 2010 sales forecast. Toyota President Akio Toyoda, the grandson of the company’s founder, has not formally addressed the public or media on the recall problems. While in Davos, Switzerland last weekend, he appeared briefly on broadcaster NHK and apologised to consumers. The costs for the recall and the shutdown now look to come to roughly ¥100 billion to ¥200 billion ($1.1 billion to $2.2 billion), two analysts estimated. “It’s a positive that we now can grasp what the direct costs might be, but Toyota has yet to address uncertainties about indirect costs, such as litigation costs and costs of incentives to win back customers,” said JP Morgan analyst Kohei Takahashi. “The size of these indirect costs is of far greater importance” for Toyota’s future, he said. Shares in Toyota rallied almost 5 percent in Toyko on Tuesday following the company’s US announcement on the fix and restart for production. The jump in its shares comes after about an 18 percent tumble over the last seven business days. A weaker yen also boosted shares, some investors said. Toyota faces a growing number of lawsuits claiming it and its U.S. supplier CTS Corp endangered drivers by not acting sooner to fix problems with faulty accelerator pedals. Rivals such as General Motors Co, Ford Motor Co and Hyundai Motor Co have been offering discounts targeting Toyota customers. The moves by Toyota marked the most detail the automaker has provided on its plans to address a safety issue that threatens its finances and reputation, and will have dented its U.S. sales for January. Lawsuits announced on Monday in the US claimed Toyota had ignored signs of trouble with some of its top-selling models. The suits are part of what is expected to be a wave of litigation against the automaker for claims ranging from losses on car resale values to injury and death. Analysts and dealers said it would take months for the automaker to fix all of the vehicles at risk of having an accelerator pedal stick in the open position. Source: Home - Livemint.com | 1 Feb 2010 | 11:52 pm Bajaj Auto market share up at 32% vs 21% (YoY) - Moneycontrol.com
Source: Business - Google News | 1 Feb 2010 | 11:40 pm Summary-Main points from Toyota quality chief's comments - Reuters
Source: Business - Google News | 1 Feb 2010 | 11:36 pm NTPC follow-on offer's base price at Rs 201 - NDTV.com
Source: Business - Google News | 1 Feb 2010 | 11:32 pm Rupee gains 14 paise against dollar in early tradeThe rupee on Tuesday appreciated by 14 paise against the US currency in early trade on capital inflows into the stock markets.Source: HindustanTimes.com - Top Business News Headlines | 1 Feb 2010 | 11:10 pm Rupee strengthens on dollar flows into equityMumbai: The Indian rupee trimmed some of its early gains on Tuesday after the dollar strengthened slightly following the Australian central bank’s decision to leave interest rates unchanged. At 10:59am, the partially convertible rupee was at Rs46.23/24 per dollar after hitting Rs46.17 and stronger than its previous close of Rs46.37/38. The euro fell while the dollar and yen rose after the Reserve Bank of Australia surprised markets by its interest rate move. The euro dropped from $1.3917 to $1.3890 immediately after the news. “There are some inflows coming in due to the IPOs which may lead to further strengthening of the rupee. I expect the rupee to touch Rs46.10 today,” said a senior dealer at state-run Union Bank of India. Indian developer DB Realty Ltd is raising $325 million in an initial public offering that was oversubscribed. NTPC Ltd, India’s largest power producer, is opening a follow-on share issue on Wednesday to raise at least $1.8 billion. Foreign investment in the share offerings will keep the rupee strong in the short term, dealers said. “We expect the rupee to be at 46 next week due to the inflows. Currently, the market is playing just by demand-supply factors,” the Union Bank dealer said. A rise in local shares also aided sentiment, dealers said. The benchmark BSE stock index was trading up 0.3% at 10:56am, after rising as high as 1% early. Source: Home - Livemint.com | 1 Feb 2010 | 10:55 pm Blame disputed as Concorde crash trial opensParis: Was an abandoned scrap of metal on the runway really the main culprit in the fiery crash of an Air France Concorde shortly after takeoff? That finding, insisted upon by French investigators for a decade, will be scrutinized and debated in a long-awaited trial starting Tuesday. Prosecutors argue that the supersonic passenger jet never would have crashed in July 2000, killing 113 people, if a Continental Airlines DC-10 hadn’t dropped a piece of titanium onto the Charles de Gaulle airport runway just minutes before the Concorde soared into the summer sky. Continental lawyer Olivier Metzner says the American airline is simply a convenient scapegoat. He says he will argue that a fire broke out on the Concorde eight seconds before it even reached the titanium strip. The case marks the only crash ever of a Concorde, an accident that brought heartache and humiliation to a nation proud of its aviation marvel, a jet that could fly across the Atlantic in half the time of other airliners. The trial is expected to last four months as the court in Pontoise, north of Paris, tries to pin down who should be held criminally responsible for the crash, which killed 109 people on the plane, mostly German tourists, and four people on the ground. Houston-headquartered Continental Airlines, Inc. and two of its US employees are on trial for manslaughter. Both aviation and judicial investigators have said the metal strip on the runway was the primary cause of the accident. Three former French officials also face the same charge; judicial investigators say they had long failed to fix the Concorde’s vulnerable spots. Money is not a major issue, since the victims’ families accepted settlements long ago. The plane’s airworthiness is not at stake: The jet was retired by both Air France and British Airways in 2003. Concordes are now on display in museums, relics from a time when supersonic flight seemed like the future of air travel. Aviation officials will nonetheless watch the trial closely. The Alexandria, Virginia-based Flight Safety Foundation argues that criminal trials such as this one _ standard practice in France for such accidents, are harmful because they discourage industry officials from sharing important safety information, fearful that what they disclose could be used later on to prosecute them. “I see absolutely no useful purpose served in bringing a criminal prosecution a decade later on a set of facts that suggests nothing more than an aviation tragedy that has multiple mistakes and human errors, like so many others,” said Kenneth P. Quinn, the Flight Safety Foundation’s general counsel. In the years after the Concorde crashed, both French aviation and judicial investigators concluded that the DC-10’s titanium piece, known as a wear strip, gashed the Concorde’s tire, sending pieces of rubber into the fuel tanks, which caused a fire. Continental lawyer Metzner says he plans to present testimony from about 20 witnesses who say they spotted a small fire aboard the Concorde before it reached the titanium strip, but that investigators remained stubbornly fixated on the DC-10’s debris. Metzner says he will ask for the proceedings to be called off, arguing that the document ordering the trial did not provide counterweights to the accusations against Continental, as is required. Investigators “preferred not to call the Concorde into question, not to call Air France into question, that’s why they were satisfied with the ideal culprit, which was Continental Airlines,” Metzner told The Associated Press. He argues the supersonic jet was generally fragile and says that particular Concorde was in no condition to fly that day because it was overloaded and lacked a piece to stabilize its wheels. Air France confirmed the piece was missing but says neither that nor extra weight were factors in the crash. The French carrier is not accused of wrongdoing and has joined the case as a civil party: It considers itself a victim because of expenses stemming from the accident and damage to its image, lawyer Fernard Garnault said. He said the company hoped to obtain damages from Continental. Continental mechanic John Taylor is accused of building and installing the titanium strip without respecting guidelines. Maintenance chief Stanley Ford is on trial for validating the strip’s installation. The French judicial inquiry determined that the plane’s fuel tanks lacked sufficient protection from shock, and that Concorde’s makers had been aware of the problem since 1979. The three other men accused of manslaughter in the case are Henri Perrier, ex-chief of the Concorde program at plane maker Aerospatiale from 1978 to 1994; Jacques Herubel, a top Aerospatiale engineer at Concorde from 1993-95; and Claude Frantzen, who handled the Concorde program in various roles at the French civil aviation authority. They are accused of ignoring a host of problems, including “neglecting the risk of fires” on the supersonic jet, according to the prosecutor’s office. Lawyers for the three Frenchmen, all retired, say they will argue that the men were not to blame and note that the French Accident Investigation Agency deemed the accident unpredictable. Frantzen’s lawyer also plans to ask the court to call off the trial. FENVAC, a French federation representing the victims’ interests, alleges that generous financial settlements with most families “apparently were intended to buy (their) silence,” though lawyers for Air France and Continental say they have the right to speak out at the trial. Family members of pilot Christian Marty hope the court will state that the crash could have been avoided if officials had heeded warning signs about the plane’s vulnerabilities, said their lawyer, Roland Rappaport. He argues that runway debris is a common problem and that “an exploding tire should not provoke a plane crash. “If it did, we’d have to stop aviation,” he said. Source: LatestNews-Home - Livemint.com | 1 Feb 2010 | 10:30 pm RCom asset sale drawing scant interestNew Delhi /Hong Kong: More than a month after putting its biggest global assets up for sale, Reliance Communications has found few callers for a package that includes its prized FLAG undersea cable network. Sources close to the deal said Reliance Communications had already extended an initial deadline of late-January for submissions once, but had still attracted little interest for the deal seeking $3 billion. The sources spoke on condition of anonymity because of the sensitivity of the situation. One source said Singapore Technologies Telemedia - which owns stakes in Singapore’s StarHub and undersea cable operator Global Crossing -- is contemplating a bid. A spokeswoman for Singapore Technologies Telemedia, a fully-owned unit of state investor Temasek, declined comment. The source added that another company said to have expressed interest was NTT Corp, though an NTT spokesman said the company was not considering a bid. Sources said complaints surrounding the deal, being shopped by Deutsche Bank, include a dearth of financial information, concerns about debt and over-abundance of the kinds of assets and services being offered. “It is no longer something which is in short supply,” said Arun Kejriwal of Mumbai-based investment advisory firm KRIS. “Earlier you thought you cannot do without a cable system of your own. But now it’s not the case. You can hire whatever you want.” Reliance Comm previously denied it was trying to sell the assets, and had no immediate comment on any recent developments. Sources and documents obtained by Reuters show that the assets are up for sale. In a statement previously, the company had said FLAG, the undersea cable network operator, spans 65,000 kilometres and described it as the world’s largest private undersea cable system. Three of the main assets in the sale package are FLAG, which Reliance Comm bought for $207 million in 2003; Yipes, a California-based ethernet service provider purchased in $300 million in 2007; and Vanco, a British telecom services provider purchased for $77 million in 2008. All three were struggling when Reliance Comm bought them, with FLAG purchased directly out of bankruptcy and Yipes acquired from a third party that took it over out of bankruptcy. Rich Valuations A source close to the deal said many potential buyers were scratching their heads at Reliance Comm’s asking price, said to be around $3 billion, for assets it collectively purchased over the last seven years for less than $600 million combined. “How could they possibly believe the thing is worth five times what it was four years earlier?” the source said. Two other sources close to the deal said the company, controlled by billionaire Anil Ambani, has ruled out selling the assets to a local rival such as Bharti Airtel, due in part to the fierce rivalry among India’s top business families. “The reason they don’t want to sell it to a Bharti is because if Bharti turns around the business and does a better job with it, it’s a big embarrassment for Reliance,” said one source. Reliance Comm is looking to unload the business as revenue at its global division fell 12.5% in October-December from the previous quarter to Rs1,982 crore ($428 million). Revenue at the unit rose 20% sequentially in the previous quarter. With such figures hardly reassuring, some potential buyers have complained that Reliance Comm has been particularly parsimonious with the financial information it is willing to give out, and is being overly optimistic about its financial projections. “They’re making you base your bids on supplying you with six or seven numbers,” said one of the sources. “They give you almost nothing to go on. No cash numbers. It’s very limited information.” Source: Home - Livemint.com | 1 Feb 2010 | 10:26 pm Financial impact of recall unknown: Toyota executiveA Toyota Motor Corp executive said on Tuesday that he did not know what the financial impact would be of a recall to fix its vehicles equipped with faulty accelerators.Source: Daily News & Analysis: Money News | 1 Feb 2010 | 10:24 pm Banks not ready to withdraw prepayment penalty on forclosureBanks have expressed concern over the competition commission's intervention on homeloan prepayment penalty issue as they fear that this would put pressure on their costs, increase risk and even lead to higher lending rates.Source: HindustanTimes.com - Top Business News Headlines | 1 Feb 2010 | 10:21 pm Reliance Communications extends deadline for asset salesReliance had extended an initial deadline of late-January for submissions, but had still attracted little interest for the deal seeking $3 billion.Source: Daily News & Analysis: Money News | 1 Feb 2010 | 10:18 pm Rupee gains 14 paise against dollar in early tradeAt the Interbank Foreign Exchange (Forex) market, the rupee appreciated by 14 paise to 46.23 a dollar.Source: Daily News & Analysis: Money News | 1 Feb 2010 | 9:46 pm Sensex opens higher by 170 points on firm global cuesThe Bombay Stock Exchange benchmark Sensex surged by 170 points in opening trade on Tuesday on fresh buying by funds, driven by rally on the global bourses. Source: HindustanTimes.com - Top Business News Headlines | 1 Feb 2010 | 9:46 pm Sensex loses 40 points at midsessionThe 30-share index fell by 40.91 points to 16,315.12 points at 1215 hrs following fall in banking, oil &gas and power stocks.Source: Daily News & Analysis: Money News | 1 Feb 2010 | 9:40 pm Wall St rises on manufacturing data, ExxonNew York: US stocks rose on Monday, following three weeks of losses, on stronger-than-expected US manufacturing data and results from Exxon Mobil Corp that beat Wall Street estimates. The Institute for Supply Management’s manufacturing index showed the sector grew in January at a faster rate than expected, echoing strong manufacturing data from China, Australia and the euro zone. Exxon shares rose 2.2% to $65.81 after the largest US oil company reported natural gas products boosted results at the company’s exploration arm. The S&P energy sector index rose 2%. “The ISM number looks good on all fronts,” said Alan Lancz, president of Alan B. Lancz & Associates Inc in Toledo, Ohio. “The market is coming off an oversold condition, so it’s responding.” The Dow Jones industrial average gained 91.59 points, or 0.91%, to 10,158.92. The Standard & Poor’s 500 Index rose 10.83 points, or 1.01%, to 1,084.70. The Nasdaq Composite Index added 11.46 points, or 0.53%, to 2,158.81. Shares of industrial materials companies gained on the strong global manufacturing data, with aluminum company Alcoa Inc up 3% to $13.11 and US Steel Corp adding 3.8% to $46.11 Reaction to US President Barack Obama’s fiscal 2011 budget proposal was muted. The budget projected the deficit soaring to a post-World War Two high of $1.56 trillion, or 10.6% of gross domestic product but falling to half that level by the time his term ends in 2012. Meanwhile, a top European Union official said Greece’s fiscal cutback plans were ambitious but achievable, relieving some of the anxiety that drove investors away from risky assets, including stocks, in recent weeks. Source: Home - Livemint.com | 1 Feb 2010 | 9:16 pm Sensex opens higher by 170 pointsThe Bombay Stock Exchange benchmark Sensex surged by 170 points in opening trade on Tuesday on fresh buying by funds, driven by rally on the global bourses.Source: India Business News | Business News - Times of India | 1 Feb 2010 | 9:12 pm NTPC follow-on sale at 201 rupees/shareMUMBAI (Reuters) - India's largest power producer, NTPC Ltd, has set a floor price of 201 rupees a share for its follow-on public offer, indicating the sale will raise at least 82.87 billion rupees ($1.8 billion), an advertisement in the Economic Times on Tuesday showed.Source: Reuters: Money News | 1 Feb 2010 | 8:28 pm Govt awaits Parikh report to free oil - Economic Times
Source: Business - Google News | 1 Feb 2010 | 4:56 pm As growth story picks up, cos look at pay hikesThe Indian growth story brightened on Monday with exports recording a 17-month high figure. Buoyed by the exuberance, companies across the board are taking a relook at perks and salary hikes of employees.Source: India Business News | Business News - Times of India | 1 Feb 2010 | 1:09 pm NTPC set to raise target in 2010-11...State-run generation utility NTPC has proposed a target of producing 224 billion units of electricity in 2010-11, marking a rise of over 3% from the 2009-10 goal of 217 billion units.Source: India Business News | Business News - Times of India | 1 Feb 2010 | 12:48 pm Sumit Bose is disinvestment secretarySumit Bose, former 13th finance commission secretary, on Monday took charge as disinvestment secretary, at a time when the government is expected to come out with a roadmap for its equity sale in PSUs next month.Source: India Business News | Business News - Times of India | 1 Feb 2010 | 12:44 pm India to grow at 8% by 11-12: World BankIndias economy will grow at 7.5% in the 2010-11 fiscal beginning April 1 and will be higher at 8% in the following year, a World Bank report released on Monday said.Source: India Business News | Business News - Times of India | 1 Feb 2010 | 12:41 pm Well beat China as fastest growing economy: MontekPlanning Commission deputy chairman Montek Singh Ahluwalia on Monday expressed confidence that in the years to come India could emerge as the fastest growing economy in the world, beating China.Source: India Business News | Business News - Times of India | 1 Feb 2010 | 12:39 pm Trying to balance growth, inflation: RBIExpressing concern over the rising food prices, RBI said its move to ask banks to keep more cash with it was a carefully weighed decision to strike a balance between growth and inflationSource: India Business News | Business News - Times of India | 1 Feb 2010 | 12:38 pm Promoters daughter on Emami boardKolkata-based FMCG major Emami Ltd has elevated the daughter of one of its promoters R S Agarwal to its board.Source: India Business News | Business News - Times of India | 1 Feb 2010 | 12:36 pm Auction of 3G unlikely to happen before 2011Consumers may have to wait till 2011 for 3G services with the law ministry derailing 3G auctions last week with some hard logic.Source: India Business News | Business News - Times of India | 1 Feb 2010 | 12:35 pm Insurers to reply to Sebi on ULIPsThe heads of most life insurance companies are meeting on Wednesday to decide on the finer details of their reply to Sebi's show cause notice relating to unit link insurance plans (ULIPs).Source: India Business News | Business News - Times of India | 1 Feb 2010 | 12:33 pm Raja seeks PMO intervention to save $10-bn BSNL contract - Economic Times
Source: Business - Google News | 1 Feb 2010 | 12:30 pm Russia's T-90 vs India's ArjunNext month, Indias homegrown Arjun tank will take on the new Russian T-90 in a long-awaited comparative trial.Source: Business Standard | Front Page Headlines | 1 Feb 2010 | 11:53 am Auto makers post record sales in JanuaryThe new year has brought good news for almost all car manufacturers, with market leader Maruti Suzuki, Hyundai Motors, Tata Motors, Mahindra & Mahindra, General Motors and even Fiat, posting their highest monthly sales since their inception.Source: Business Standard | Front Page Headlines | 1 Feb 2010 | 11:50 am IDBI Bank gets variable pay surpriseIgnoring a government advisory, IDBI Bank has moved to a variable pay structure for its officers, who will now have a 70 per cent fixed salary component.Source: Business Standard | Front Page Headlines | 1 Feb 2010 | 11:48 am Survey indicates strong revival in manufacturingAny lingering concern that Indias manufacturing recovery was tailing off should be put off.Source: Business Standard | Front Page Headlines | 1 Feb 2010 | 11:46 am Cyclists get a boost from electric powerFrom virtually nothing a decade ago, electric bikes have become an $11 billion global industry.Source: HindustanTimes.com - Top Business News Headlines | 1 Feb 2010 | 11:30 am Suzlon subsidiary to test deep watersWind power generation company Suzlon Energy Ltd, through its subsidiary REpower Systems AG, has inked a deal to deliver 48 offshore wind turbines to RWE Innogy of Germany, that could generate 295 megawatts of power.Source: HindustanTimes.com - Top Business News Headlines | 1 Feb 2010 | 11:29 am World Bank sees India grow at 7 5India is expected to grow at 7.5 per cent in fiscal 2010 and at 8 per cent the year after, although the recovery in the world economy remains fragile, the World Bank has said in its latest report.Source: HindustanTimes.com - Top Business News Headlines | 1 Feb 2010 | 11:26 am Commodity funds the next bubbleA growing number of funds that invest in commodities such as coffee, gold or even pigs, are coming under the scrutiny of regulators who fear they could be the next financial bubble to burst.Source: HindustanTimes.com - Top Business News Headlines | 1 Feb 2010 | 11:25 am Gas price hike weeks awayThe government may in “weeks” decide on raising prices of natural gas produced by state-owned Oil and Natural Gas Corp (ONGC) and Oil India by 30 per cent, Petroleum Secretary S Sundaresan said on Monday.Source: HindustanTimes.com - Top Business News Headlines | 1 Feb 2010 | 11:23 am Two Indian e-readers set to hit marketMumbai: Following the buzz around electronic books, two Indian firms are set to launch e-readers—devices to read e-books—in the next two months. E-commerce firm Infibeam.com said on 28 January that its e-reader, dubbed Pi, will start shipping from 22 February. EC Media, a firm started by Kerala-based publisher DC Books, has announced it will launch its e-reader by late March or early April. Like popular e-readers, such as Amazon.com Inc.’s Kindle or Sony Corp.’s Reader, e-readers developed in India will also use the so-called e-ink technology, which creates an experience similar to reading a regular book. As foreign and indigenously developed e-readers become more accessible in India, two critical factors that determine their popularity will be pricing and availability of relevant digital content, an analyst said. “Whether it (e-readers) will take off in a big way depends on the price, both of the reader and of content (e-books),” said Vivek Shenoy, who tracks the publishing industry at market research firm Valuenotes.  E-content: Overseas products include (from left) Amazon’s Kindle, Barnes and Noble’s Nook, Apple’s iPad and Sony’s Reader. “The EC Media e-readers will be priced between Rs8,000 and Rs18,000,” said D.C. Ravi, chief executive of DC Books, which has a 60% stake in EC Media. A Kindle costs around $400 (Rs18,520) in India. Shenoy said that current prices for both e-books and e-readers had to come down before their use could be expected. “We expect it will be at least another two years before the creation and use of digital content will be of significant scale,” he said. The international brands are not doing particularly well in India as they lack distribution partners in the country, according to Asheesh Raina, principal research analyst at the Indian arm of technology researcher firm Gartner Inc. The Indian firms stand a better chance at market acceptance if they manage to put in place a wide sales network and ensure after-sales support, Raina said. Infibeam’s Pi would be a no-frills product that focuses on reading e-books on a 6-inch screen. There’s no Internet access, so users will have to download e-books from Infibeam’s website or other content providers and transfer them to the e-reader using a data cable. They will, however, be able to play music on Pi. Infibeam has an online database of 100,000 e-book titles. It plans to tie up with publishers to digitize more books and work with other content service providers who have their own databases of e-books. “We will have our own rights-managed content repository to provide digitization services for Indian publishers,” said an Infibeam spokesperson. “We are also working with other e-distributors on revenue share economics.” EC Media’s e-reader is more comparable with Kindle or Reader, according to Ravi. It will be available in 6- and 9-inch screen formats, with a basic and high-end version in both sizes. “The initial plan was to launch the e-reader on 1 January, but it had to be delayed as we wanted to make it more feature-rich,” Ravi said. “Besides, we wanted to have our own database of e-books, with at least 500,000 titles, before the launch.” The e-reader will have wireless Internet capability, allowing users to download e-books from EC Media’s online repository and also subscribe to digital versions of newspapers and magazines as well. DC Books is one of India’s largest publishing houses and bookshop chains, with an estimated annual turnover of Rs60 crore. It has floated EC Media, along with a group of investors, as a dedicated firm to launch and manage the e-reader, and create and distribute e-content. Chennai-based technology outsourcer California Software Co. Ltd will provide the technology support for its e-reader. Independent content providers are also keeping pace with technology advancement. New Delhi-based publishing group Prakash Books India Pvt. Ltd is preparing an online e-book collection. “Our site will be launched in a couple of weeks, and we will have a few million e-book titles available,” said Gaurav Sabharwal, a director at Prakash Books. Besides buying paid content from Infibeam, EC Media or other e-publishers, users also have the option of downloading free e-books from Gutenberg.com, an community driven project to create the largest online repository of e-books. Currently, Gutenberg’s database has a collection of 30,000 titles. Source: Tech News - Livemint.com | 1 Feb 2010 | 10:00 am Toyota to detail recall fix; Korean rivals gainTokyo / Seoul: Toyota Motor Corp will detail plans on Monday to fix the accelerator pedals behind a series of crashes and the global recall of millions of vehicles as it scrambles to put its worst public relations crisis behind it. Toyota, whose reputation of quality and reliability helped it overtake General Motors Co as the world’s top carmaker, is facing criticism of moving too slowly to address a sometimes deadly problem of unintended acceleration in many of its cars. Including recalls in China and Europe, some 7.9 million Toyota vehicles are up for repair globally, including a separate problem involving floor mats and pedals. “This (recall) was expanded across the globe and has really put Toyota under the spotlight,” said Hiroaki Osakabe, a fund manager at Chibagin Asset Management. “This could hurt Toyota’s brand image and there’s definitely concern about a longer-term damage to the image...It could also affect Toyota’s overall competitiveness.” Toyota Motor Sales USA, its local sales company, said it would issue a news release, followed by a conference call for media. Toyota, which reports its third-quarter results on Thursday, has been forced to halt sales of eight recalled models in North America, including the top-selling Camry, until it comes up with a fix. On Sunday, Toyota also kicked off a media blitz with full-page ads in major US newspapers alerting consumers to the recall and production shutdown that will last at least a week. Jim Lentz, president of Toyota Motor Sales USA and a 28-year veteran at the carmaker, is also due to appear on US morning TV shows, including NBC’s Today. Middle East may be affected The recall, which covers almost 1.9 million cars in Europe and China that use faulty accelerator pedals made by US supplier CTS Corp, has spread to some PSA Peugeot Citroen cars made at a joint Toyota-PSA factory in the Czech Republic. Toyota said on Monday an unknown number vehicles in the Middle East were also fitted with defective accelerators, but the problems seen elsewhere were unlikely to occur there because of the difference in climate. Toyota said it was studying the necessary remedy for the two models in the Middle East. The remedy being readied by Toyota and CTS elsewhere involves a shim, also called a spacer, that will be placed in the accelerator to keep it from sticking when affected by condensation, sources said. Fears of a heavy and protracted blow to Toyota’s sales and bottom line have knocked off about $20 billion from its market value in the last week. Toyota shares on Monday fell 1.2%, faring better than local rivals Honda Motor Co, which lost 2.5%, and Nissan Motor, which shed 2%. In contrast, shares of South Korean rivals rose on Monday amid prospects of customer gains and data showing further strong sales in January. Hyundai Motor Co added 2.7% after its overseas sales in January jumped 46% from a year earlier, while Kia Motors Corp surged 5.6% after reporting record sales. “Recent negative newsflows on Toyota point to an opportunity for Hyundai Motor to increase their market share overseas,” said Kong Jeong-ho, an analyst at Prudential Investment & Securities. Edmunds.com, an online automotive research site, expects Toyota’s US sales in January to fall 12%, giving it a market share of 14.7%, near a four-year low and down 3.2 percentage points from a year earlier. Hyundai has launched an Toyota-targeted incentive programme, joining GM, Ford Motor Co and others in a similar plan. Minimum four-week sales shutdown Sources briefed on Toyota’s plans have said it expects to begin repairing or replacing flawed accelerator pedals on 2.3 million vehicles as early as this week. If all goes smoothly, Toyota could limit losses to a four-week sales shutdown. A Japanese transport ministry official said there was no such trouble for Toyota cars sold in Japan because the structure of the pedals was different. A company source has said top executives from Toyota headquarters, possibly including President Akio Toyoda, were preparing to address media in Japan soon after the solution is announced in the United States to quell criticism over the lack so far of an official public apology. Source: World Business - Livemint.com | 1 Feb 2010 | 4:36 am
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